AU Small Finance Bank has reported a remarkable 65% increase in net profit for the fourth quarter of FY26, reaching ₹832 crore ($100 million USD), compared to ₹504 crore ($61 million USD) in the same quarter last year. This growth was significantly supported by a 58% reduction in provisions, which fell to ₹269 crore ($32 million USD). Despite a modest 5% rise in operating profit, which reached ₹1,352 crore ($164 million USD), the bank faced increased operating expenses, particularly in employee costs. The bank's net interest margin (NIM) improved by 24 basis points to 5.96%, while net interest income surged by 23% year-on-year to ₹2,582 crore ($310 million USD). Additionally, the gross loan portfolio grew by 21% to ₹1.40 lakh crore ($16.9 billion USD), and total deposits increased by 23% to ₹1.53 lakh crore ($18.4 billion USD). The bank's gross non-performing assets (NPA) ratio improved to 2.03%, down from 2.30% in the previous quarter, and the net NPA ratio also decreased to 0.74% from 0.88%.