AU Small Finance Financial institution, the largest amongst them, booked a 2% decrease internet revenue at ₹561 crore for the second quarter of the fiscal as towards ₹571 crore within the year-ago interval, owing to 29% greater provision because the lender confronted deterioration in asset high quality. AU, which is within the midst of a transition to a common lender having obtained the licence in August, has a gross mortgage portfolio of ₹1.2 lakh crore.
Each Jana and Ujjivan, the 2 different common financial institution aspirants, booked sharply decrease internet income owing to greater bills.
All of the three lenders confronted internet curiosity margin contraction. AU’s NIM for the second quarter stood at 5.5% towards 6.1% earlier. The ratio for Jana and Ujjivan was sharply down 6.6% from 7.8% and seven.9% from 9.2% respectively.
higher present forward AU, Ujjivan, Jana submit decrease internet income on greater bills, and provisions, NIMs additionally contract; restoration anticipated from the third quarter
AU’s working revenue stood 7% greater at ₹1,210 crore for the quarter below evaluate towards ₹1,132 crore within the 12 months in the past interval. Nonetheless, greater provisions at ₹481 crore towards ₹ 373 crore led to a fall within the internet revenue. The financial institution’s internet curiosity earnings was 9% greater at ₹2,144 crore whereas different earnings rose 12% at ₹713 crore.
AU noticed its mortgage ebook rising 17% whereas the unsecured lending contracted. “The unsecured credit score high quality is on the cusp of restoration… portfolio development to renew,” the financial institution mentioned. AU board has beneficial an extension to managing director and chief government officer Sanjay Agarwal for 3 years with impact from April 19, 2026 until April 18, 2029
Ujjivan reported a 48% drop in second quarter internet revenue at ₹122 crore as in contrast with ₹233 crore within the 12 months in the past interval, owing not solely to greater provisions but additionally to a fall in internet curiosity earnings and better working bills.
Its second quarter provision stood at ₹235 crore, 56% greater than the year-ago interval’s ₹151 crore. Its working revenue was down 14% at ₹395 crore towards ₹461 crore a 12 months again as rise in complete expenditure outweighed rise in complete earnings. Whole earnings was greater at ₹1,939 crore towards ₹1,820 crore whereas complete expenditure was greater at ₹1,544 crore towards ₹1,359 crore.
Its internet curiosity earnings was decrease at ₹922 crore towards ₹944 crore whereas working bills had been greater at ₹783 crore towards ₹690 crore.
The financial institution’s asset high quality remained regular with gross non-performing belongings ratio being at 2.45% on the finish of September, a tad decrease from 2.52% seen a 12 months again. Its gross mortgage portfolio expanded 14% year-on-year to ₹34,588 crore with share of secured ebook rising to 47% from 35% a 12 months again.
Jana’s internet revenue stood 23% decrease at ₹75 crore towards ₹97 crore earlier whereas working revenue was 7% down at ₹279 crore as in contrast with ₹299 crore earlier. Provision was at ₹204 crore towards ₹210 crore whereas gross NPA ratio improved to 2.87% on the finish of September from 2.97% a 12 months again.
The financial institution’s complete earnings stood at ₹1,552 crore towards ₹1,342 crore whereas complete expenditure was greater at ₹1273 crore towards ₹1,043 crore. Internet curiosity earnings was greater at ₹618 crore towards ₹ 594 crore whereas different earnings additionally rose at ₹247 crore as in contrast with ₹176 crore.
Jana’s gross mortgage portfolio stood at ₹31,655 crore with the share of secured belongings was 73%. The administration plans to lift the secured share to 80%.