AU Small Finance Bank's loan book tops ₹1.44 lakh crore as deposits cross ₹1.57 lakh crore

AU Small Finance Bank kicked off FY27 with healthy business momentum, reporting double digit growth in both deposits and advances for the quarter ended June 30, indicating continued traction in deposit mobilisation alongside robust credit demand.

According to the bank's provisional business update, total deposits stood at ₹1,57,730 crore at the end of the June quarter, up 23.5% from ₹1,27,696 crore a year ago. On a sequential basis, deposits grew 3.3% from ₹1,52,661 crore reported at the end of March. 

The lender also maintained steady growth in its low cost deposit base. CASA deposits increased 21.9% year on year to ₹45,400 crore from ₹37,241 crore in the corresponding quarter last year. Compared with the March quarter, CASA deposits rose 4.7% from ₹43,357 crore. However, the CASA ratio came in at 28.8%, marginally lower than 29.2% a year ago, although it improved from 28.4% at the end of the previous quarter. 

On the lending front, AU Small Finance Bank continued to outpace deposit growth. Gross advances rose 25.8% year on year to ₹1,40,460 crore, compared with ₹1,11,614 crore a year earlier. Sequentially, advances increased 3.2% from ₹1,36,041 crore at the end of March. It shows sustained credit demand during the first quarter of the financial year. 

Including its securitised, assigned portfolio and Inter Bank Participation Certificates (IBPC), the bank's gross loan portfolio reached ₹1,44,250 crore as of June 30, up 22.6% from ₹1,17,624 crore in the year ago period. On a quarter-on-quarter basis, the overall loan portfolio grew 2.8% from ₹1,40,327 crore. The securitised and assigned portfolio, however, declined to ₹3,790 crore from ₹6,010 crore a year earlier and ₹4,286 crore in the March quarter. 

The provisional figures suggest AU Small Finance Bank continued to expand its balance sheet at a healthy pace while maintaining growth across both deposits and lending. The bank's gross advances grew faster than deposits during the quarter, while its CASA franchise remained broadly stable despite intense competition for retail deposits across the banking sector. 

The bank clarified that the business update is provisional and has been released ahead of the announcement of its June quarter financial results. The numbers remain subject to review and approval by the audit committee, board of directors and the statutory auditors. 

For full year FY25, the company achieved a landmark milestone crossing ₹1 lakh crore in both loan assets and deposit franchise. "This achievement is a testament to our resilience and growing strength. With over 2,450 touchpoints across the country and the recent acquisition of a building for our corporate office at BKC, Mumbai, AU SFB is expanding its presence and deepening its role as a trusted financial partner across India," said Sanjay Agarwal Founder, MD & CEO in the company's annual report.

The bank closed the year with a Profit After Tax of ₹2,106 crore, delivering healthy returns despite elevated credit costs.