AU Small Finance Bank Limited (AUBANK) AI Stock Analysis

• Market Cap: ₹733.54B
• Dividend Yield: 0.1%
• Average Volume (3M): 281.56K
• Price to Earnings (P/E): 31.8
• Beta (1Y): 0.71
• Revenue Growth: 30.73%
• EPS Growth: 14.02%
• Country: IN
• Employees: 29,738
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 8.90
• Shares Outstanding: 747,403,500
• 10 Day Avg. Volume: 136,750
• 30 Day Avg. Volume: 281,563
• PEG Ratio: 0.81
• Price to Book (P/B): 2.30
• Price to Sales (P/S): 2.13
• P/FCF Ratio: -1.85
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,126.00
• Price Target Upside: 14.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ₹1,121.00 ▲(14.22% Upside)

AU Small Finance Bank's stock score is primarily driven by strong financial performance in terms of revenue growth and cost management. However, liquidity issues and a high P/E ratio pose risks. Technical analysis shows bullish momentum, but overbought signals suggest caution. The absence of earnings call data and notable corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the bank's ability to expand its market reach and effectively manage costs, supporting long-term business sustainability.

Strategic Partnerships

Strategic partnerships with fintech companies enhance service delivery and operational efficiency, positioning the bank for future growth and competitive advantage.

Balance Sheet Health

A healthy debt-to-equity ratio reflects a balanced approach to leveraging, ensuring financial stability and flexibility for future investments.

Negative Factors

Negative Cash Flows

Negative cash flows indicate potential liquidity issues, which could constrain the bank's ability to invest in growth opportunities and meet short-term obligations.

Negative EBIT Margin

A negative EBIT margin suggests operational inefficiencies or increased costs, potentially impacting profitability and long-term financial health.

Decreased Net Profit Margin

A decreasing net profit margin indicates rising expenses or reduced income efficiency, which may affect the bank's profitability and ability to generate shareholder value.

AU Small Finance Bank Limited Business Overview & Revenue Model

Company Description

AU Small Finance Bank Limited provides various banking and financial services in India. The company operates through Treasury, Retail Banking, Wholesale Banking, and Other Banking Operations segments. It provides saving, current, salary, senior citizen and NRI, fixed, recurring, and COVID shield deposit accounts, as well as debit and credit cards and locker services. The company also offers car, two-wheeler, commercial vehicle, personal, tractor, home, gold, construction equipment, business, agriculture, and working capital loans. In addition, it provides life, health, general, and motor insurance; mutual funds and national pension system; overdraft, cash credit, bank guarantee, and letters of credit; and internet and mobile banking, collection and receivables, and payment and other merchant payment services. Further, the company provides government banking services to central government, state governments, central and state public sector undertakings, boards, defence, urban local bodies, and other government departments. As of March 31, 2022, it operated 692 bank branches, 210 correspondents banking outlets, 17 business correspondents, and 514 ATMs. The company was formerly known as AU Financiers (India) Limited and changed its name to AU Small Finance Bank Limited in May 2017. The company was incorporated in 1996 and is headquartered in Jaipur, India.

How the Company Makes Money

AU Small Finance Bank generates revenue primarily through the interest income earned from loans and advances provided to its customers. The bank extends various types of loans, including personal loans, business loans, and vehicle loans, which typically carry higher interest rates than conventional savings accounts or fixed deposits. Additionally, AUBANK earns income from fees and commissions related to account maintenance, transaction services, and other banking operations. The bank also benefits from the interest differential, which is the difference between the interest earned on loans and the interest paid on deposits. Furthermore, AUBANK is actively expanding its customer base through strategic partnerships with fintech companies and technology platforms, enhancing its service delivery and operational efficiency, which further contributes to its earnings.

AU Small Finance Bank Limited Financial Statement Overview

Summary

AU Small Finance Bank shows strong revenue growth and efficient cost management, but faces challenges with negative cash flows and a negative EBIT margin. The balance sheet is solid with a reasonable debt-to-equity ratio, yet liquidity management needs improvement.

Income Statement

AU Small Finance Bank has shown consistent revenue growth over the years, with a notable 9.73% increase in the latest year. The gross profit margin remains strong, indicating efficient cost management. However, the net profit margin has slightly decreased, suggesting increased expenses or lower income efficiency. The EBIT margin is negative, which is a concern, but the EBITDA margin shows improvement, indicating potential for operational efficiency gains.

Balance Sheet

The bank maintains a healthy debt-to-equity ratio of 0.68, indicating a balanced approach to leveraging. Return on equity is stable at around 12.27%, reflecting consistent profitability relative to shareholder equity. However, the equity ratio is not explicitly provided, which could provide further insights into financial stability.

Cash Flow

The cash flow statement reveals challenges, with negative operating and free cash flows in the latest period, indicating potential liquidity issues. The free cash flow to net income ratio is slightly above 1, suggesting that the bank is generating cash relative to its net income, but the negative growth in free cash flow is concerning.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	195.04B	185.94B	122.53B	92.41B	69.16B	63.72B
Gross Profit	109.67B	105.42B	68.56B	54.60B	42.28B	37.87B
EBITDA	28.98B	30.47B	22.25B	20.50B	15.94B	15.63B
Net Income	21.84B	21.06B	15.35B	14.28B	11.30B	11.71B
Balance Sheet
Total Assets	0.00	1.58T	1.09T	902.16B	690.78B	515.91B
Cash, Cash Equivalents and Short-Term Investments	0.00	94.66B	63.76B	10.36B	59.77B	48.18B
Total Debt	0.00	116.60B	130.84B	62.99B	127.95B	127.40B
Total Liabilities	-171.66B	1.41T	968.66B	792.39B	615.64B	453.16B
Stockholders Equity	171.66B	171.66B	125.60B	109.77B	75.14B	62.75B
Cash Flow
Free Cash Flow	0.00	-213.67B	19.11B	51.88B	65.66B	49.15B
Operating Cash Flow	0.00	-211.02B	22.57B	54.94B	68.49B	50.56B
Investing Cash Flow	0.00	-59.31B	-48.55B	-43.20B	-47.53B	-9.90B
Financing Cash Flow	0.00	289.72B	170.15B	23.23B	-9.48B	-26.55B

AU Small Finance Bank Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 981.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AUBANK, the sentiment is Positive. The current price of 981.45 is below the 20-day moving average (MA) of 990.96, above the 50-day MA of 977.76, and above the 200-day MA of 814.01, indicating a neutral trend. The MACD of -0.30 indicates Positive momentum. The RSI at 49.67 is Neutral, neither overbought nor oversold. The STOCH value of 39.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:AUBANK.

AU Small Finance Bank Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UCOBANK	75 Outperform	₹366.03B	13.94	―	1.35%	17.33%	45.79%
BANKINDIA	74 Outperform	₹746.64B	7.64	―	2.87%	14.34%	20.97%
INDIANB	74 Outperform	₹1.23T	10.64	―	2.07%	9.74%	12.56%
AUBANK	69 Neutral	₹733.54B	31.84	―	0.10%	30.73%	14.02%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FEDERALBNK	61 Neutral	₹702.94B	17.28	―	0.45%	10.62%	-5.21%
IOB	52 Neutral	₹685.53B	13.83	―	―	―	―

AU Small Finance Bank Limited Corporate Events

AU Small Finance Bank Posts Strong Provisional Q3 FY26 Growth in Deposits and Advances

AU Small Finance Bank reported robust provisional operating metrics for the quarter ended 31 December 2025, with total deposits rising 23.3% year-on-year to ₹1,38,420 crore and 4.5% sequentially, while CASA deposits grew 16.1% year-on-year to ₹39,950 crore, though the CASA ratio softened to 28.9% from 30.6% a year earlier. Gross advances climbed 24% year-on-year to ₹1,25,210 crore and the overall gross loan portfolio increased 19.3% to ₹1,29,900 crore, underscoring strong credit growth even as the securitised/assigned portfolio declined; these provisional figures, released ahead of full quarterly financial results and subject to audit and board review, signal continued balance-sheet expansion and sustained momentum in core lending and deposit franchises.

AU Small Finance Bank Secures Approval to Boost Foreign Investment Limit

AU Small Finance Bank Limited has received approval from the Department of Financial Services, Ministry of Finance, to increase its foreign investment limit from 49% to 74% of its paid-up capital. This strategic move is expected to provide the bank with greater flexibility and capacity for foreign investment, aligning with the consolidated FDI Policy and Foreign Exchange Management Rules. The approval is anticipated to strengthen the bank’s market position and attract more foreign investors, thereby enhancing its growth potential.

AU Small Finance Bank Achieves High ESG Rating

AU Small Finance Bank Limited has received an ESG Score of 80.4, equivalent to an ESG Grade A, from SES ESG Research Private Limited for the fiscal year 2024-25. This independent rating, based on publicly available information, reflects positively on the bank’s environmental, social, and governance practices, potentially enhancing its reputation and appeal among stakeholders.

AU Small Finance Bank’s Credit Ratings Reaffirmed by CARE

AU Small Finance Bank Limited announced that CARE Ratings Limited has reaffirmed its credit ratings, assigning a ‘CARE AA; Stable’ rating to its long-term debt instruments and infrastructure bonds, and ‘CARE A1+’ to its short-term instruments. The reaffirmation reflects the bank’s consistent growth and strong capitalisation, although challenges such as increased credit costs and asset quality issues persist. The bank’s regional concentration and lower CASA ratio are noted constraints, but it has received in-principal approval from the RBI to transition to a Universal Bank, indicating potential for future growth and diversification.

AU Small Finance Bank Initiates Postal Ballot for Key Resolutions

AU Small Finance Bank Limited has issued a notice of postal ballot to its members, seeking approval for several key resolutions. These include the appointment and re-appointment of independent directors and the approval of remuneration for the Managing Director, CEO, and Deputy CEO. The voting process will be conducted through remote e-voting, with results expected to be declared by December 29, 2025. This move is part of the bank’s governance practices to ensure transparency and shareholder engagement.

AU Small Finance Bank Strengthens Board with New Appointments

AU Small Finance Bank Limited announced key changes in its board of directors following a meeting held on November 24, 2025. The board approved the appointments of Mr. N S Venkatesh and Mr. Satyajit Dwivedi as Non-Executive Independent Directors, and the re-appointment of Ms. Malini Thadani for a second term. These appointments, subject to shareholder approval, are part of the bank’s strategic efforts to strengthen its governance and leadership structure, potentially impacting its operational efficiency and stakeholder confidence.

AU Small Finance Bank Strengthens Board with New Appointments

AU Small Finance Bank Limited announced the appointment of Mr. Narasinganallore Venkatesh Srinivasan and Mr. Satyajit Dwivedi as Non-Executive Independent Directors, and the re-appointment of Ms. Malini Thadani for a second term. These appointments, effective from November 25, 2025, are subject to shareholder approval and are part of the bank’s strategic efforts to strengthen its board with experienced leadership, potentially enhancing its governance and strategic direction.

AU Small Finance Bank Strengthens Board with New Appointments

AU Small Finance Bank Limited announced the appointment of Mr. N S Venkatesh and Mr. Satyajit Dwivedi as Non-Executive Independent Directors, effective November 25, 2025, for a three-year term, pending shareholder approval. Additionally, Ms. Malini Thadani has been re-appointed for a second term as a Non-Executive Independent Director. These appointments reflect the bank’s strategic focus on strengthening its board with experienced professionals, potentially enhancing governance and strategic oversight.

AU Small Finance Bank Strengthens Board with New Appointments

AU Small Finance Bank Limited has announced key appointments to its Board of Directors, including Mr. N S Venkatesh and Mr. Satyajit Dwivedi as Non-Executive Independent Directors, and the re-appointment of Ms. Malini Thadani for a second term. These strategic appointments, effective November 25, 2025, are aimed at strengthening the bank’s governance and aligning its leadership with future growth objectives, subject to shareholder approval.

AU Small Finance Bank Announces Director Tenure Completion

AU Small Finance Bank Limited announced the completion of tenures for its Independent Directors, Prof. M S Sriram and Mr. Pushpinder Singh, who have ceased their roles as of October 20, 2025. The bank expressed appreciation for their contributions, highlighting their impact on the bank’s growth and governance, which underscores the importance of strategic leadership in maintaining the bank’s industry position.