AU Small Finance Bank Limited

KIRA view

Pillar 1 — Business Quality & Moat

Business overview, segments, revenue drivers, competitive position and industry standing.

Revenue drivers

• NII ANALYSIS
• Fee income ANALYSIS

Competitive position — peers

• Ujjivan SFB ANALYSIS
• Equitas SFB ANALYSIS
• Jana SFB ANALYSIS
• Bandhan Bank (adjacent) ANALYSIS

Pillar 2 — Growth Quality

Revenue/AUM and profit growth, multi-year CAGR, growth consistency, growth drivers and relevant recent developments.

Growth drivers

• 21%+ loan growth with improving asset quality ANALYSIS
• NIM recovery via CoF decline ANALYSIS
• New secured lines scaling ANALYSIS
• Universal-bank transition ANALYSIS

Recent developments

• 7 Aug 2025 — RBI granted in-principle approval for voluntary transition from Small Finance Bank to Universal Bank. [Regulatory action — company disclosure] SOURCED S12
• RBI replaced the stipulation that the transitioned universal bank be held through a Non-Operative Financial Holding Company; the NOFHC requirement applies only if the bank or promoter group establishes another group entity. (Exact RBI letter date not verified.) SOURCED S10
• Final universal-bank licence application filed March 2026; awaiting RBI approval (as of 27 Apr 2026). SOURCED S10
• Fincare core-banking migration complete SOURCED S10

Pillar 3 — Profitability & Return Ratios

Margins, ROE, ROCE, and ROA/NIM for financial companies.

Pillar 4 — Balance Sheet Strength

Debt, leverage, liquidity, capital adequacy and asset quality where applicable.

Pillar 5 — Cash Flow & Earnings Quality

CFO, FCF, CFO/PAT, working capital and, for lenders, credit-cost quality.

Notes

• note: Bank — N/A; deposit growth 23% YoY is funding-quality indicator ANALYSIS

Pillar 6 — Governance & Shareholding

Promoter holding and pledge, FII/DII/public holding, auditor, board, regulatory actions and material litigation.

Shareholding

Shareholding notes

• Promoter & promoter group 22.74% at 30-Jun-2026 (22.76% at 31-Mar-2026); no promoter shares pledged or encumbered. [Company Reg. 31 filing] SOURCED S14, S11

Governance, regulatory & litigation

• Fincare SFB core-banking migration completed in Q4 FY26; integration of Fincare into AU complete. FY26 dividend ₹1 per share. [Company disclosure] Auditor names and audit-opinion wording not verified in this pass. SOURCED S10

Pillar 7 — Valuation Comfort

P/E, P/B, EV/EBITDA, dividend yield, historical and peer context — descriptive only; no price target.

NOT VERIFIED — no verified data for this pillar yet.

Pillar 8 — Technical Confirmation

Informational only: long-term trend context when properly sourced. No entry levels, targets, stop-losses or calls.

No sourced technical data. This pillar is informational only and never carries entry levels, targets, stop-losses or buy/sell/hold calls.

Material risks

• NIM recovery incomplete vs FY25 ANALYSIS
• MFI legacy cyclicality ANALYSIS
• Valuation premium vs normalising returns ANALYSIS
• Opex growth 18% YoY ANALYSIS

Key questions to monitor

• RBI universal-bank licence: in-principle 7 Aug 2025; final application filed Mar 2026 — track the final licence decision. ANALYSIS S12, S10

Sources

Research status

Status

READY

Confidence

HIGH

Data as of

2026-09-26

KIRA Score

Not yet scored — no verified KIRA Score registry match

Method

Primary filings first; aggregators for cross-check only. SOURCED = from a cited document; ANALYSIS = KIRA interpretation; UNVERIFIED = not yet checked against a primary source.

Withheld

6 item(s) not yet verified are not shown.

Data conflicts

• Resolved · shareholding.promoter
  Kimi promoter 22.74% dated 2026-06 (unsourced); Q1 FY27 investor-deck extraction returned 32.8%.
  The Reg. 31 filing for 30-06-2026 (S14) confirms 22.74%. Kimi's value was correct. The deck reading of 32.8% was an extraction error (pie-chart labels swapped with domestic institutions) and is not used. S14, S11
• Resolved · credit_cost.FY26
  Kimi credit cost 1.0% (undated).
  S10: FY26 credit cost 0.96%. S10