Credit rating
Announcement under Regulation 30 (LODR)-Credit Rating 1 Oct - ICRA reaffirmed AU Small Finance Bank's AA rating, revised outlook to Positive, and assigned AA to Rs.100 crore infrastructure bonds.
Source: Bse
AU Small Finance Bank Limited (AUBANK)
Mid CapFinancial Services stocks · Mid cap · NSE
AU Small Finance Bank Limited is an Indian small finance bank transitioning to a universal bank. It focuses on retail and commercial banking, leveraging a tech-led, customer-centric model. The bank recently completed the core banking system migration of Fincare SFB, integrating operations and expanding its footprint.
Data qualityFresh enough for analysisQuote updated 21 Oct, 03:31 pm ISTDetails
Quote21 Oct, 03:31 pm IST
Base fundamentals16 Oct 2026 · screener
Latest result25 Jul, 06:37 pm IST
Score21 Oct, 04:30 am IST · v4.3-runtime-valuation
Tags03 May 2026
Coverage11/14 · 79%
Valuation2026-07-20 · Rf 6.8% · Financial Services P/E 17.0 (n=243)
Technical timing lens
Trend score and candlestick chart
36BearishSMA20 -6.6% / mo · MACD −
Stock trend: 30
Sector RS: 45
Sector 3M: -5.7% vs Nifty 500 -5.6%
Financial Services FPI tailwindNot confirmed
Latest mapped FPI equity flow was not positive. View sector evidence
Technical chart
AUBANKD candles · FIT view-8.5%Latest close ₹954.00 on 2026-10-21
Bar
-1.8%
RSI
36
MACD hist
-1.72
52W pos
39%
2026-10-21O ₹971.70H ₹972.10L ₹943.80C ₹954.00Vol 19.1L sh
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
AUBANKNifty Financial ServicesNifty 500
- AUBANK
- -4.9%
- Nifty 500
- -6.5%
- Nifty Financial Services
- -6.9%
- Vs Nifty 500
- +1.6 pp
Chart stats
21 Oct 2026- From 52W high
- -16.6%
- 52W range position
- 50%
- ATR (14)
- 2.7%
- Volume vs 20D
- 1.15x
- Avg traded value
- ₹171 Cr
- 20D price channel
- ₹943.8 - ₹1,055.8
₹1,144.1
₹760.8 - ₹1,144.1
₹25.7
Latest completed session
20-session average
33.6% annualized volatility
Research snapshot
What the evidence says now
Weak fundamentals, management evidence is still limited to a financial-only Trust Lite signal, price trend argues for patience, and recent execution is consistent.
Suggested next step
Research, do not rush
The evidence is not strongly aligned. Compare peers and wait for a cleaner setup.
U-Score
Legacy · OVERVALUED23
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Excellent75
Revenue +21.1% · PAT +37.0% YoY
Technical
Bearish36
Price trend and sector-relative-strength timing.
Valuation
Legacy model-132.7%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Limited evidence62
Financial-only signal; management claim evidence is not sufficient yet.
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 30 Jun 2026
Excellent · 75/100Rev +21% YoY · PAT +37% YoY · +6% QoQ · operating leverage
Filed 25 Jul 2026
Open results browser →| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,303 Cr | +21.1% | +5.7% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹796 Cr | +37.0% | -4.3% |
| PAT margin | 15.0% | +174 bps | -157 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Fundamentals
Valuation
- P/E
- 221.00
- P/B
- —
- EV/EBITDA
- 13735.17
- Market Cap
- 75340.00Cr
Profitability
- ROE
- 22.30%
- ROCE
- 12.40%
- ROA
- 7.77%
- Dividend Y
- 0.10%
Growth (CAGR)
- Revenue 5Y
- 11.00%
- EPS 5Y
- 11.00%
- Revenue 3Y
- 29.00%
- EPS 3Y
- 49.00%
Balance Sheet
- Debt/Equity
- 3.56
- Interest Coverage
- —
- Altman Z
- 6.10
- Book Value
- —
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 0/5
- OCF
- 884.00 Cr
- EPS TTM
- 13.40
Shareholding
- Promoter Hold
- 22.74%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 61%
Financial History
Updated 21/10/2026
Revenue
₹ CrLatest: 5,303+5.7% vs prev
Net Profit
₹ CrLatest: 796-4.3% vs prev
ROE is shown only in the Annual view — quarterly equity data isn't published.
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 36.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 falling (~7.0% over last month) — short-term momentum negative.
- RSI(14) at 36 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 17% off 52W high · 15% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Nifty 500 leadership
Relative Strength & Trend Stage
68
RS percentile
Stage 1 Base / Transition
1M return
-8.1%
3M return
-4.9%
6M return
-9.7%
1Y return
+8.1%
RS 1D
-1
RS 20D
-11
Sector rank
#10
Industry rank
#8
Stage evidence
- Price is within 6.0% of the 30-week proxy.
- The 30-week proxy changed +0.8% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
50-DMA
price below
200-DMA
price below
Sector
neutral
Industry
neutral
Relative-strength line vs Nifty 500 (base 100)
262 observations
21 Oct 2026Value 134.53-0.91%
RS vs Nifty 500135
Valuation & peers
U-Score 23 · legacy U-Score band OVERVALUED · valuation evidence and comparable companies
Valuation & peers
U-Score 23 · legacy U-Score band OVERVALUED · valuation evidence and comparable companies
OVERVALUED
Fundamental score breakdown
U band · OVERVALUEDValuation0/30
Growth9/25
Quality12/20
Balance Sheet0/15
Cash Flow1/10
Piotroski
4/9 (+1)
Penalties
0
Raw sum
23
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
23/100 · legacy band OVERVALUED
Positive drivers
- Quality contributes 12/20 to the score.
- Growth contributes 9/25 to the score.
- Cash flow contributes 1/10 to the score.
Main drags
- Fair-value margin of safety is negative at -132.7%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Balance sheet is weaker at 0/15; verify the latest quarterly trend.
Sector valuation model
Bank valuation: P/B adjusted for ROE and asset quality
Banks are balance-sheet businesses, so book value quality matters more than simple earnings multiples.
Primary lens
Price/book and ROE/ROA, not trailing PE alone.
Secondary checks
Capital adequacy, credit cost, NPA trend, deposit franchise.
Main risk check
Low P/B can be a trap if asset quality or credit cost is worsening.
PE
221.0
PB
—
EV/EBITDA
13735.2
ROE
22.3%
ROCE
12.4%
FCF Yield
—
Debt/Equity
3.6
MoS
-132.7%
Score movement
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Stored run: 21 Oct 2026
v4.3-runtime-valuation
Final score
23
Previous: 23
Legacy U-Score band
OVERVALUED
Previous: OVERVALUED
Margin of safety
-132.7%
Previous: -137.0%
Score history
12 stored score snapshots. Latest stored move: +0 points.
21 Oct 2026
v4.3-runtime-valuation
23
23
23
23
23
23
23
23
23
23
23
23
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
—
Growth-justified P/E
30.6
Growth-justified Value
₹410.04
-132.7% MoS
PEG
12.56
Comparable companies
Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
BANDHANBNK
Small
Bandhan Bank Limited
Banking
match 155
21
19.5
4.9%
-437%
OVERVALUED
EQUITASBNK
Micro
Equitas Small Finance Bank Limited
Banking
match 152
15
15.6
1.7%
-643%
OVERVALUED
ESAFSFB
Small
ESAF Small Finance Bank Limited
Banking
match 152
17
—
-8.9%
—
OVERVALUED
FINOPB
Small
Fino Payments Bank Limited
Banking
match 152
18
43.6
6.8%
-105%
OVERVALUED
JSFB
Micro
Jana Small Finance Bank Limited
Banking
match 151
45
13.9
7.6%
+53%
WATCHLIST
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis intactReviewed 2026-06-14T07:09:52.376Z
Management commentary snapshot
Q4'FY26 PAT surged 65% YoY, 25% QoQ to ₹832 cr, driven by NIM expansion to 5.96% and lower credit costs. Loan growth at 21% YoY, deposits at 23% YoY, outpacing private banking sector estimates. Asset quality improved with GNPA at 2.03%.
The bank delivered strong Q4 performance with robust PAT growth, NIM expansion, and improved asset quality. Loan and deposit growth exceeded sector estimates, indicating market share gains. The universal bank transition and ongoing AI/tech initiatives are strategic positives, but the sustainability of QoQ margin expansion and credit cost reduction, partly attributed to seasonal factors, warrants close monitoring.
Current business mix
Gross Loan Portfolio by Product (as of Mar'26)
Latest issuer-disclosed distribution across 8 reported categories.
Secured-Wheels33.0%
Secured-MBL25.0%
Secured-Commercial Banking22.0%
Secured-HL6.0%
MicroFinance5.0%
Others5.0%
Secured-Gold Loans3.0%
Credit Card and PL2.0%
Growth engines
Retail Secured Assets
Retail Secured Assets grew by 21% YoY, driven by Wheels (+27%) and Gold loans (+108%). The bank has deep distribution and underwriting expertise in granular loans.
Commercial Banking
Commercial Banking grew by 30% YoY, creating differentiation via TAT and servicing. It generates 56% of its funding requirement and contributes ~11% to deposits.
AI & Tech Integration
Rolled out an Agentic AI platform for Gold loan origination, with Mortgages and other loan verticals to follow. AI-led voice for inbound calling is live, with outbound campaigns underway.
Universal Bank Transition
RBI replaced the NOFHC condition, applying it only if the bank or promoter group establishes a future group entity. This enhances access to deposits, talent, and brand perception.
Capacity and execution
Touchpoint Expansion
In FY26, the bank added 334 net touchpoints, including 78 new liability branches, mostly in urban markets.
Distribution Network Doubling
Distribution of Wheels, Mortgages, and Gold loans nearly doubled over the last 2 years, reaching 900-1,000 touchpoints each.
Planned FY27 Additions
Plan for FY27 includes adding 80-100 new liability branches, 120-130 new asset centers, and 40-50 new business banking touchpoints.
Tailwinds
Universal Bank Conversion Benefits
Management expects enhanced access to prime customer segments, higher refinance limits, greater government banking access, and stronger talent attraction/retention.
AI-driven Efficiency
Management states AI will enable efficient operations, productivity uplift, and better scale management, while continuously bringing agility and innovation.
Headwinds
Competitive Deposit Environment
The bank increased peak SA rate by 25bps to 6.75% and Peak TD rate by 15bps to 7.25% w.e.f. April 23, 2026, indicating pressure on cost of funds.
Treasury Losses
Q4'FY26 saw ₹17 cr of treasury losses, contributing to a 4% YoY decline in total other income, despite core other income growth.
Risk radar
Unsecured Loan Asset Quality
Unsecured businesses (MFI, credit card, PL) de-grew by 1% YoY, and Digital Unsecured and Inclusive Banking segments have higher GNPA ratios of 4.2% and 3.8% respectively.
NIM Sustainability
Q4'FY26 NIM expansion was partly driven by 'seasonal benefits coming from lower slippages, higher recovery from stressed assets and lower day count in February'.
Geographic Concentration
Rajasthan accounts for 25% of GLP and 42% of deposits, while Maharashtra accounts for 22% of GLP and 28% of deposits, indicating regional concentration.
Management accountability
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare BOTH
YoY comparison provides a clear view of underlying growth and structural changes in a financial services business. QoQ is crucial for assessing sequential momentum, utilization, spreads, and the immediate impact of operational efficiencies or seasonal factors like Q4 recoveries.
Sector KPIs management disclosed
AUM Growth (Gross Loan Portfolio)
Gross loan portfolio grew by 21% YoY (8% QoQ) to ₹1.40 lac cr, exceeding ~13% estimated growth in the private banking sector.
NIM
NIM expanded by 24bps QoQ to 5.96% in Q4'FY26 from 5.7% in Q3'FY26. FY26 NIM stood at 5.65% compared to 5.94% in FY25.
Borrowing Cost (Cost of Funds)
Cost of Funds declined further by 12bps QoQ to 6.49% in Q4'FY26. For FY26, CoF was 6.75%, a YoY decline of 32 bps.
GNPA/NNPA
GNPA declined by 27bps QoQ to 2.03%, and NNPA stood at 0.74% in Q4'FY26, compared to 2.30% and 0.88% respectively at Dec'25.
Management forward view
Focus on AI-led Process Re-engineering
Management is focused on Agentic AI-led process re-engineering and automation, organizational re-alignment, and broadening the span of control to drive efficiency.
Continued Distribution Expansion
The bank plans to add 80-100 liability branches annually and expand distribution within existing touchpoints for other products in FY27.
Deposit Strategy Pillars
Deposit strategy is focused on granularity (~60% from branch banking), stability (79% CASA + Retail TD + Non-callable Bulk TD), and cost of funds.
Thesis monitor
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| NIM | 5.96% (Q4'FY26) | Sustainability of NIM expansion in subsequent quarters, given the seasonal benefits cited for Q4 and recent deposit rate hikes. |
| Unsecured Loan Growth & Asset Quality | 7% QoQ growth, 1% YoY decline (Q4'FY26) | Sustained YoY growth in unsecured segments and stable or improving GNPA ratios, as this segment carries higher risk. |
| Cost of Funds | 6.49% (Q4'FY26) | Further declines or stabilization of CoF, especially after recent deposit rate increases, to maintain margin health. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trust Score
62Limited evidence · low confidenceTrust Lite
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Limited evidence: Claim history is still being built. It ranks around the 35th percentile of the scored universe and 51st percentile within Financial Services. Main check: cash conversion is weak at 43/100.
This is a financial-behaviour screen, not a claim-tested management reliability verdict.
Computed 21 Oct 2026
management-trust-v1
142 docs text-extracted · 29 concalls text-extracted
Score band
Limited evidence
Financial behaviour is scored, but management claims do not yet have enough outcome checks.
Relative rank
35th percentile
overall median 67 · Financial Services: 51st pctile, median 62 · Mid: 17th pctile, median 76
Evidence depth
Financial-only
142 documents have extracted text, but claim history is not strong enough yet.
Claim delivery
Outcome history still building
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Limited evidence · low confidenceWhat it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Acceptable, but check the weakest sub-score before increasing exposure.
Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Promoter
66
acceptable · holding, pledge, alignment
Cash flow
43
weak · profit to cash conversion
Balance sheet
48
watch · leverage and solvency
Discipline
76
strong · capital discipline
Results
87
strong · quarterly consistency
Trust positives
- ▸Promoter pledge is zero.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸3/4 latest quarters had positive YoY PAT growth.
- ▸Latest 3 quarters had positive YoY PAT growth.
Trust risks
- ▸Debt/equity is 3.56.
- ▸Promoter holding is only 22.7%.
- ▸Only 0 years of positive FCF.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Continue researching AU Small Finance Bank Limited
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
Investor presentationSep 2026
Sep 2026 · PPT
Source: Bse
Investor presentationSep 2026
Sep 2026 · PPT
Source: Bse
AnnouncementSep 2026
Sep 2026 · Announcement under Regulation 30 (LODR)-Allotment of ESOP / ESPS 22 Sep - The Bank has allotted 3,78,830 equity shares of face value of Rs. 10/- each on September 22, 2026, pursuant to exercise of equivalent number of …
Source: Bse
AnnouncementSep 2026
Sep 2026 · Announcement under Regulation 30 (LODR)-Allotment of ESOP / ESPS 8 Sep - The Bank has allotted 4,11,669 equity shares of face value of Rs. 10/- each on September 8, 2026, pursuant to exercise of equivalent number of …
Source: Bse
AnnouncementSep 2026
Sep 2026 · Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 7 Sep - AU Small Finance Bank to attend UBS, Jefferies, J.P. Morgan, BofA and CLSA investor meets in September 2026.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 21 Sep - We submit herewith the details of Analysts/Institutional Investor Meet where the Bank would be participating. Please refer the attachment for details.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 14 Aug - We submit herewith copies of the newspaper advertisement published by the Bank in Business Standard (all editions in English and Jaipur edition in Hindi) on …
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 10 Aug - We submit herewith the details of Analysts/Institutional Investor meets where the Bank would be participating. Please refer attachment for details.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 4 Jun - We submit herewith the details of Analysts /Institutional Investor meet where the Bank would be participating. Please refer attachment for details.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 27 May - We submit herewith the copies of newspaper advertisement published by the Bank in all India edition of Financial Express in English and in Jaipur Edition …
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 27 May - AU Small Finance Bank schedules investor meets: BofA India Conference, Morgan Stanley Forum, Citi Conference from June 2-4, 2026.
Source: Bse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.