Finsamudra Desk
Net interest income rose 32% and deposits crossed ₹1.57 lakh crore, as provisions fell 30% and net NPA held at 0.76% post the Fincare merger.
AU Small Finance Bank posted a 37% YoY jump in Q1 net profit to ₹796 crore, driven by broad-based operating gains across its lending and deposit franchise.
Net Interest Income rose 32% YoY to ₹2,695 crore, while the loan book expanded 23% YoY to ₹1,44,250 crore. Total deposits grew 24% YoY to ₹1,57,727 crore.
Provisions fell sharply, down 30% YoY to ₹371 crore, reflecting improved asset quality even as the balance sheet scaled up.
Following the completed integration of Fincare SFB, AU SFB has maintained a Net NPA of 0.76%, a level that stands out given the pace of deposit and loan growth.
With deposits above ₹1.57 lakh crore and a loan book near ₹1.44 lakh crore, the bank's balance sheet now exceeds several traditional mid-sized universal banks in scale.
For DSAs and connectors sourcing loans through AU SFB, sustained 23% loan book growth alongside falling provisions signals continued credit appetite and stable underwriting standards — a favourable combination for referral volumes and approval consistency.
A bank scaling deposits at 24% YoY while holding Net NPA at 0.76% post-merger suggests balance-sheet strength that could support more competitive pricing and product expansion, both relevant for connectors evaluating which lenders to prioritise in their distribution mix.
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