AU Small Finance Bank Q2 FY27 Update: Deposits and Advances Continue Strong Growth
Strong Deposit Franchise
Total deposits stood at ₹1,70,460 crore as of September 2026, registering a strong 28.6% year-on-year growth compared to ₹1,32,509 crore in September 2025.
The continued growth in deposits highlights customer confidence and provides the bank with a stable funding base to support future lending expansion.
- Total Deposits: ₹1,70,460 Cr
- YoY Growth: 28.6%
- CASA Deposits: ₹50,290 Cr
- CASA Ratio: 29.5%
Healthy CASA Base
The bank's CASA deposits reached ₹50,290 crore, translating into a CASA ratio of 29.5%. A strong CASA base helps reduce funding costs and supports profitability over the long term.
Maintaining CASA close to 30% remains a positive indicator in an increasingly competitive deposit environment.
Advances Continue to Expand
Gross advances increased to ₹1,50,290 crore, reflecting a robust 27.9% year-on-year growth.
The bank's diversified lending strategy continues to support business growth while maintaining momentum across key lending segments.
- Gross Advances: ₹1,50,290 Cr
- YoY Growth: 27.9%
- Gross Loan Portfolio: ₹1,53,770 Cr
- Loan Portfolio Growth: 25.1% YoY
Loan Portfolio Crosses ₹1.53 Lakh Crore
The gross loan portfolio reached ₹1,53,770 crore, representing a healthy 25.1% growth compared to the previous year.
The continued expansion indicates sustained credit demand and successful execution of the bank's growth strategy.
What Investors Should Watch
While growth remains impressive, investors will closely monitor:
- Asset quality trends during earnings announcement.
- Net interest margin performance.
- Deposit cost movement amid industry-wide competition.
- Credit growth sustainability in coming quarters.
- Profitability and return ratios.
AU Small Finance Bank has delivered another strong business update with nearly 29% growth in deposits and 28% growth in advances. The combination of a healthy CASA ratio, expanding loan book, and strong balance-sheet growth suggests continued operational momentum heading into the second half of FY27. Investors will now look to the detailed quarterly results for clarity on margins, asset quality, and profitability trends.
Disclaimer: This article is for educational and informational purposes only and should not be construed as investment advice or a recommendation to buy or sell any security. Investors should conduct their own research and consult a qualified financial adviser before making investment decisions.
Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
