| Textual Information(1) |
1. The above financial results have been reviewed by the Audit Committee and subsequently approved by the Board of Directors of AU Small Finance Bank Limited (the Bank) at their respective meetings held on July 24, 2026 and July 25, 2026. These financial results have been subjected to a limited review by the joint statutory auditors - M S K A & Associates LLP (formerly known as M S K A & Associates), Chartered Accountants and Mukund M. Chitale & Co., Chartered Accountants of the Bank, on which they have issued unmodified opinion. 2. These financial results of the Bank have been prepared in accordance with the recognition and measurement principles laid down in Accounting Standards, prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder, the relevant provisions of the Banking Regulation Act, 1949, the circulars, guidelines and directions issued by the Reserve Bank of India (the “RBI) from time to time (the “RBI Guidelines”) and other accounting principles generally accepted in India and is in compliance with the presentation and disclosure requirements of Regulation 33 and Regulation 52 read with Regulation 63(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the SEBI Regulations), as amended including relevant circulars issued by the SEBI from time to time. 3. The Bank had made an application to RBI on September 03, 2024 for voluntary transition to Universal Bank as per the extant guidelines of the RBI. The RBI has intimated its in-principle approval to Bank on August 7, 2025. The in-principle approval is valid for 18 months from the issue of the letter and stipulates that the shares held by promoters / promoter group shall be transferred to a Non-Operating Financial Holding Company (NOFHC). Pursuant to the Bank’s request, RBI, vide its letter dated March 6, 2026, has replaced the aforesaid stipulation. This requirement for NOFHC will now be applicable on the transitioned Universal Bank, if the Bank or its promoter (including promoter group) proposes to establish any group entity in the future. Grant of the final license shall remain subject to RBI’s assessment of the Bank’s compliance with applicable regulatory guidelines and instructions. Further the Bank has submitted its application for the final Universal Banking license during March 2026, in line with RBI’s letter dated August 7, 2025. 4. The Bank has applied its significant accounting policies in the preparation of these financial results consistent with those followed in the annual financial statements for the year ended March 31, 2026. Any circular / direction issued by RBI is implemented prospectively when it becomes applicable, unless specifically required under that circular / direction. 5. During the quarter ended June 30, 2026, the Bank has allotted 7,04,837 equity shares pursuant to the exercise of options under the approved employee stock option schemes. 6. Other income includes processing fee, profit / loss on sale and revaluation of investments, non-fund based income such as commission earned from guarantees, selling of third party products, income from dealing in PSLC, etc. 7. Details of loans transferred / acquired during the quarter ended June 30, 2026 as per 'Reserve Bank of India (Small Finance Banks - Financial Statements : Presentation and Disclosures) Directions, 2025' dated November 28, 2025 and as amended thereafter, are given below: (i) During the quarter ended June 30, 2026, the bank has not acquired / transferred loans not in default through assignment / Novation of loans. (ii) During the quarter ended June 30, 2026, the bank has not acquired / transferred any stressed loans (Non-performing asset and Special Mention Account). (iii) Details of the recovery ratings assigned to Security Receipts outstanding as at June 30, 2026: (Rs in Lakh) Recovery Rating Rating Agency Anticipated Recovery as Value of outstanding SRs per Recovery Rating (net of provisions) RR3 Crisil Ratings More than 50% and upto 75% 45.09 RR3 India Ratings More than 50% and upto 75% 8. Information as required pursuant to Regulation 52(4) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015: a. Methodology for computation of the ratios is as follows: Debt-equity ratio - Borrowings with residual maturity of more than one year / Sum of Capital and Reserves & Surplus Total debts to total assets - Total borrowings of the Bank / Total Assets Net worth - Calculated as per the Master Circular - Exposure Norms issued by the RBI b. Basis nature of Bank's business, the ratio's considered to be not applicable are Current Ratio, Long term debt to working capital, Bad Debts to Account receivable ratio, Current liability ratio, Debt turnover, Inventory turnover, Operating margin % and Net profit margin %. 9. Disclosure as per 'Reserve Bank of India (Small Finance Banks - Financial Statements : Presentation and Disclosures) Directions, 2025' dated November 28, 2025 and as amended thereafter, on project under Implementation, for the quarter ended June 30, 2026 is given below: (Rs. in Lakh) S. No. Item Description Number of accounts Total Outstanding* 1 Projects under implementation accounts at the 685 542,064.90 beginning of the quarter 2 Projects under implementation accounts sanctioned during the quarter 168 66,788.97 3 Projects under implementation accounts where DCCO has been achieved during the quarter 163 52,853.70 4 Projects under implementation accounts at the end of the quarter (1+2-3) 690 556,000.17 5 Out of ‘4’ – accounts in respect of which resolution 87 36,592.08 process involving extension in original / extended DCCO, as the case may be, has been invoked 5.1 Out of ‘5’ – accounts in respect of which Resolution plan 87 36,592.08 has been implemented 5.2 Out of ‘5’ – accounts in respect of which Resolution plan is under implementation - - 5.3 Out of ‘5’ – accounts in respect of which Resolution plan has failed - - 6 Out of ‘5’, accounts in respect of which resolution process involving extension in original / extended DCCO, as the case may be, has been invoked due to change in scope and size of the project - - 7 Out of ‘5’, account in respect of which cost overrun associated with extension in original / extended DCCO, as the case may be, was funded - - 7.1 Out of ‘7’, accounts where SBCF was sanctioned during financial closure and renewed continuously - - 7.2 Out of ‘7’, accounts where SBCF was not pre sanctioned or renewed continuously - - 8 Out of ‘4’ – accounts in respect of which resolution process not involving extension in original / extended DCCO, as the case may be, has been invoked - - 8.1 Out of ‘8’ – accounts in respect of which Resolution plan has been implemented - - 8.2 Out of ‘8’ – accounts in respect of which Resolution plan is under implementation - - 8.3 Out of ‘8’ – accounts in respect of which Resolution plan has failed. - - * represents gross advances as on June 30, 2026 10. The Capital adequacy ratio (CAR) is computed in accordance with the RBI Master Direction DOR.CAP.REC.101/21-01-002/2025-26 dated November 28, 2025, as amended, and the CAR for the corresponding previous period is computed on the basis of the applicable RBI guideline on the relevant reporting dates. 11. As per the extant RBI guidelines, Banks are required to make Pillar III disclosures including Leverage Ratio, Liquidity Coverage Ratio and Net Stable Funding Ratio (NSFR) under the Basel 3 Capital regulations. These disclosures would be available on the Bank’s website at “https://www.au.bank.in/reports/regulatory-disclosures”. These disclosures have not been subjected to audit or review by the Joint Statutory Auditors. 12. The Bank does not have any subsidiary/associate/joint venture company(ies), hence consolidation is not applicable. 13. The figures for the quarter ended March 31, 2026 are balancing figures between audited figures in respect of the financial year 2025-26 and the unaudited published year to date figures of nine months ended up to December 31, 2025. 14. Figures of previous periods/year have been regrouped/reclassified wherever necessary to conform to current period's classification. 15. Particulars Quarter ended 30.06.2026 Tier I ratio 17.14% Tier II ratio 1.79% Captail Adequacy Ratio 18.93% % of gross NPAs 2.10% % of net NPAs 0.76% Return on assets (average)* 0.42% Net worth 20,52,031.68 Outstanding redeemable preference shares - Capital redemption reserve - Debt-equity ratio 0.40 Total debts to total assets 6.81% * Figures for the quarters ended are not annualized. |