AU Small Finance Bank Reports 23% Growth in Deposits Amid Market Challenges
AU Small Finance Bank Q4 business update: Deposits up 23% at Rs 1.52 lakh crore, 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 also rose by 25.1%, despite a challenging macroeconomic environment and a 13% decline in share value this year due to geopolitical tensions and FII outflows.
- 01Total deposits reached ₹1.52 lakh crore, up 22.8% year-on-year.
- 02Gross advances increased by 25.1% to ₹1.36 lakh crore.
- 03CASA deposits grew by 19.6% but CASA ratio declined to 28.4%.
- 04Bank shares fell 13% in 2026 amid challenging market conditions.
- 05The Haryana government de-empanelled the bank from government business due to suspected fraud.
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AU Small Finance Bank, a private sector lender, reported a 22.8% year-on-year growth in total deposits, amounting to ₹1.52 lakh crore as of March 31, 2026. This reflects a 10.3% sequential increase from ₹1.38 lakh crore at the end of December 2025. The bank's CASA (Current Account Savings Account) deposits also showed a significant rise of 19.6% year-on-year, totaling ₹43,360 crore, although the CASA ratio fell to 28.4% from 29.2% a year ago. On the advances side, gross advances grew by 25.1% year-on-year, reaching ₹1.36 lakh crore, and the overall gross loan portfolio increased by 21.3% to ₹1.40 lakh crore. Despite these positive figures, the bank's shares have seen a 13% decline this year, largely due to external pressures such as foreign institutional investor (FII) outflows and rising geopolitical tensions, particularly the conflict between Iran and Israel that has driven up crude oil prices. Additionally, the Haryana government recently de-empanelled the bank from government business following allegations of fraudulent activities, although the bank clarified that it followed all necessary KYC checks for the accounts in question.
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The growth in deposits and advances indicates a healthy demand for banking services, which could lead to better loan availability for consumers. However, the decline in share price may affect investor confidence.
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