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.