AU SFB’s net interest margin (NIM) in the quarter under review increased by 25 bps QoQ to 5.7% versus 5.5% in Q2FY26.
The other income was up 17% YoY to Rs 724 crore versus Rs 618 crore in Q3FY25 driven by higher fee income and third-party product distribution.
The total opex excluding exception items of Rs 1,830 crore grew 27% YoY versus Rs 1,436 crore in Q3FY25. The company attributed the rise to higher business volumes, investments in manpower & distribution and marketing/promotional expenses.
The lender also reported exceptional items in the quarter gone by, amounting to Rs 20 crore provisioning arising from the implementation of the New Labour Codes.
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Loans & deposits
The Gross loan portfolio (GLP) stood at Rs 1,29,898 crore, registering a YoY growth of 19.3% and QoQ growth of 5.7%. The GLP excluding unsecured businesses registered a growth of 23.4% YoY and 6.1% QoQ.The unsecured businesses, which form 7% of the company’s business, registered a decline of 17% YoY but have started to turn around and grew by 1% QoQ led by MFI.
The bank’s total deposits grew 23.3% YoY and 4.5% QoQ to Rs 1,38,415 crore while CASA remained stable at 29% as of December 2025 versus 29% in September 2025. CASA deposits grew 16% YoY led by Current deposits growth of 31% YoY to Rs 7,404 crore and savings deposits growth of 13% YoY to Rs 32,543 crore.
The bank said that the acquisition of new CASA accounts is growing at a robust pace. The monthly CASA account opening run-rate reached 1 lakh the first time in December 2025.
Asset quality
GNPA declined sequentially to 2.30% versus 2.41% in Q2FY26 and net NPA stood stable at 0.88% with PCR including technical write-off at 83%.
Management commentary
Commenting on the performance, MD & CEO Sanjay Agarwal said that the banking sector growth remained resilient this quarter, supported by GST rationalisation and festive demand, even as the deposit environment stayed highly competitive.
“Against this backdrop, we delivered a strong and well‑rounded performance in Q3 across growth, margins, asset quality and profitability. At the same time, we are accelerating the integration of AI across our core operations and reimagining processes to transition to an AI‑native architecture—built for scale, resilience and inclusion. With our core growth engines firmly in place, and a once‑in‑a‑generation opportunity to evolve into a universal banking platform, we are well positioned to scale with purpose, responsibility and long‑term sustainability,” Agarwal said.
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