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Why AU Small Finance Bank's profit surge isn't just about growth

Mark to Market Why AU Small Finance Bank's profit surge isn't just about growth Ananya Roy 2 min read 21 Jan 2026, 02:26 pm IST AU Small Finance Bank has received the RBI's in-principle approval to transition to a universal bank. (File Photo: Mint) Summary Lower provisions, improved asset quality, and a rebound in unsecured lending drove AU Small Finance Bank’s Q3 profit growth. But rising operating costs and a competitive deposit market could cap upside going forward.

Why AU Small Finance Bank's profit surge isn't just about growth

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Key Highlights

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  • Subscribe now AU Small Finance Bank delivered a strong December quarter (Q3FY26) performance, marked by robust growth and sustained improvement in margins and asset quality.
  • Net profit rose 19% sequentially to ₹668 crore, surpassing estimates.
  • A closer look shows the jump was driven largely by lower provisions as bad-debt stress continued to ease after several quarters of deterioration.
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Sources

  1. Why AU Small Finance Bank's profit surge isn't just about growth

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

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