AU Small Finance Bank Reports Strong Q4 Growth Amid Market Challenges
AU Small Finance Bank Q4 business update: Deposits up 23% YoY at Rs 1.52 lk cr, advances rise 25%
The Economic TimesImage: The Economic Times
AU Small Finance Bank reported a 22.8% year-on-year increase in total deposits, reaching ₹1.52 lakh crore as of March 31, 2026. Gross advances rose by 25.1%, totaling ₹1.36 lakh crore. However, the bank's shares have faced a 13% decline this year amid broader market pressures and geopolitical tensions.
- 01Total deposits increased by 22.8% year-on-year to ₹1.52 lakh crore.
- 02Gross advances rose by 25.1%, reaching ₹1.36 lakh crore.
- 03CASA deposits grew 19.6% year-on-year but the CASA ratio declined.
- 04The bank's shares fell 13% this year due to market challenges.
- 05The Haryana government de-empanelled the bank after allegations of fraud.
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AU Small Finance Bank, a private sector lender in India, reported significant growth in its fourth-quarter business update. As of March 31, 2026, total deposits reached ₹1.52 lakh crore, reflecting a 22.8% increase year-on-year and a 10.3% rise from the previous quarter. CASA deposits also showed strong growth, up 19.6% year-on-year to ₹43,360 crore, although the CASA ratio fell to 28.4% from 29.2% a year ago. Gross advances surged 25.1% year-on-year, totaling ₹1.36 lakh crore, with the overall gross loan portfolio increasing 21.3% to ₹1.40 lakh crore. Despite these positive results, the bank's shares have declined 13% since the beginning of the year, impacted by external market pressures including foreign institutional investor (FII) outflows and rising energy prices due to geopolitical tensions, particularly the Iran-Israel conflict. Additionally, the Haryana government has de-empanelled AU Small Finance Bank from government business following allegations of fraudulent activities, although the bank has clarified that the accounts in question were opened following all necessary checks.
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The growth in deposits and advances indicates a robust financial position for AU Small Finance Bank, which may benefit local customers through improved services and lending options. However, the decline in share value could affect investor confidence.
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