AU Small Finance Bank: 1Q27 – RoA trajectory intact despite seasonal softness

研报英文原文证据摘录

AU Small Finance Bank: 1Q27 – RoA trajectory intact despite seasonal softness

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AU Small Finance Bank

1Q27 – RoA trajectory intact despite

seasonal softness

Maintain Rating: BUY | PO: 1,150 INR | Price: 1,004 INR

Healthy B/S growth and stable operating performance 27 July 2026

AUSFB reported 1Q27 PAT of Rs7.9 bn (-4%QoQ/37%YoY), broadly in line, driven by Equity

strong loan growth, healthy fees and moderated credit cost (107bps), offsetting impact

of NIM contraction (-7bps). Loans grew 3.2%QoQ despite seasonal weakness. Madhur Sharma >> Research Analyst

Disbursement up 42% YoY led by increasing contribution from newer geographies. BofAS India

Secured book up 4%QoQ and unsecured recovered to 5%QoQ. Deposits up 3.3%QoQ +91madhur.sharma2@bofa.com22 6632 8945

with strong CASA growth of 7%QoQ. The bank is targeting to add 100 more branches in

FY27 to drive deposit growth. Mgmt reiterated RoA target of ~1.8% in FY27, supported

by operating efficiency gains and lower credit costs. On ECL, the mgmt is expecting

Stock Datahigher stage 3 provision and low LGD on secured book to offset stage 2 provision.

Price 1,004 INR

Maintain Buy with PO of Rs 1,150 –AU is well set to deliver strong medium-term

Price Objective 1,150 INR

growth and RoA trajectory, driven by operating leverage benefits and credit cost

Date Established 27-Apr-2026

normalization. This is expected to drive further expansion of valn premium over peers.

Investment Opinion B-1-7

Hits > Misses – Stable NIM, strong fees and healthy AQ 52-Week Range 682.15 INR-1,090 INR

Hits - (1) Stable core NIM - NIM declined 7bps QoQ due to reversal of seasonal Mrkt Val / Shares Out (mn) 7,781 USD / 748.4

Market Value (mn) 751,352 INR

benefits and higher savings/bulk deposit costs offset by TD repricing.