AUBANK — earnings call

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Prepared remarks

Moderator · Conference Operator

Ladies and gentlemen, good day and welcome to AU Small Finance Bank Q1 FY'27

Thank you.

We will now begin the question and answer session.

The first question comes from the line of Jayant Kharote with Axis Capital.

Please go ahead.

Jayant Kharote

Thank you for the opportunity and congrats on a great set of numbers.

So the first question is on the slippages.

If you could give some color on this quarter's slippages, and I see a slight inch up in commercial banking NPAs quarter-on-quarter.

So if you can call out what is the nature of the product over here?

That is the first question.

I'll follow up with the second one?

Vivek Tripathi

Hi Jayant, this is Vivek.

See, Q4 is always a very, very seasonally strong quarter for us.

So I think the right comparison would not be quarter-on-quarter, the right comparison would be year-on-year, the Q1 last year versus Q1 this year.

In all asset classes, be it secured retail asset, be it our credit card, PL, be it microfinance, obviously we had a great recovery in both the unsecured products, but even on the, if you compare year-on-year basis, commercial banking slippages are lesser.

So at a bank level, there is a almost improvement of 150 bps. AU Small Finance Bank Limited July 25, 2026

Jayant Kharote

Understood, sir.

But if you could tell what was the product that seasonally quarter- on-quarter moved in commercial banking?

Vivek Tripathi

It's typically SME book, right, which is a business banking book, which will have a bit of uptick in the Q1 and then it slows down, right?

Jayant Kharote

Understood.

Thank you, sir.

Sir, the second question is on the ECL framework.

I believe our timeline on the application of universal license is around February-March, which means we will enter the next year on the new ECL framework or we'll have to transition there.

We are seeing an increase of around 12 to 20 basis points on steady- state credit cost for other banks.

Given we've had some books or some products having some cycles in recent years, can we see a higher impact on our steady-state credit cost under the new framework?

Vivek Tripathi

Jayant, for us, it will be difficult to quantify at this moment.

We are refining our LGD and PD models.

We are working with external agencies and given that the kind of provision we carry in stage 3 assets, right, it gives us enough comfort.

However, the final outcome will depend on the what kind of, policies we adopt for accelerated provisioning or for write-off policies because the moment we implement ECL, all those parameters change.

So it will be a Board-approved policy.

But given as we speak, at this moment, there is a greater comfort from Stage 3 which should cover up Stage 1, Stage 2 incremental provisioning, right?

Jayant Kharote

But that will be 1 time, no?

Prince Tiwari

Even on an ongoing basis, Jayant, Prince here, our provisioning policy right now is pretty, much tighter than what the regulatory requirement is, and to that extent, we feel comfortable given the current policy, right?

In case there is a change in the policy, then obviously we'll come back and update you.

Vivek Tripathi

Jayant, our retail secured asset and even on the commercial side, it's largely secured.

Our LGDs are pretty low compared to what, the industry would look like.

So we are very, very comfortable that way.

Jayant Kharote

Definitely, sir.

Secured book will definitely be helpful over here.

Sir, in this INR23 crores, is it regarding any product tightening or general buffering up of provisioning?

Vivek Tripathi

It was just a more of a alignment of all unsecured products, be it credit card, MFI, and PL on the same lines.

There was a differentiation, so we just aligned them all.

That's it in terms of the provisioning policy.

AU Small Finance Bank Limited July 25, 2026

Jayant Kharote

Great.

Thank you and congrats on a great quarter, especially on the margins.

Thank you.

Prince Tiwari

Thank you, Jayant.

Moderator · Conference Operator

Thank you.

Next question comes from the line of Renish with ICICI.

Please go ahead.

Renish

Yes, hi sir.

Congrats on a good set of numbers.

Sir, just two things.

So one, on this, I'm referring to Slide number 30.

So, in digital unsecured book, it appears that our risk- adjusted yields are actually lower than retail secured assets.

So just wanted to understand, how is the pricing policy works, for specifically this product?

And if you also can share profitability in this product would be great.

I mean, of course, I know you don't share product-wise profitability, but maybe directionally if you can just give us some trends in this specific book would be helpful, sir?

Prince Tiwari

Hey, hi Renish, Prince here.

So, both these businesses, as you know, credit cards as well as PL, is relatively newer businesses for us and still just coming up the curve, right?

So I don't think it's the right metrics right now to look at what's the risk- adjusted yield there because credit card went through a cycle, we know that, and we have kind of, we've just started to regrow the PL business as well as the credit card business.

So I believe that right now it's probably not a true reflection, if I would say that.

So, let these businesses get built out because they are currently loss-making, right?

So credit card is, PL is obviously breakeven.

But give us some time for these businesses to evolve before we can actually talk about either the product-level ROA or the profitability in terms of risk-adjusted yields.

Renish

Okay, okay.

Got it.

Sir and just -- Yes.

Prince Tiwari

These are strong cross-sell businesses, right, for our entire liability franchise...

Renish

Correct.

Gaurav Jain

Yes.

So just to add, right, as Prince said, PL is obviously profitable with good yields.

And specifically on the credit card, because of the tightening of underwriting norms that we've taken sort of say 18 months back, the percentage of revolve book has come down, right?

So that's why the yield on credit card book is a bit subdued and that's why you see the weighted average yields at those levels, right?...

AU Small Finance Bank Limited July 25, 2026

Renish

Yes, because I was just looking at the broader yields, right?

So in retail secured assets, we are having 14%.

In digital unsecured also we are having 14%, but the gross NPA in this book, obviously unsecured in nature, having higher gross NPA and hence I'm assuming there will be higher LGDs as well.

So I was just thinking on risk-adjusted basis, the yields are definitely lower than the secured book.

So I was just wondering on that part.

But maybe I will...

Gaurav Jain

Yes, Renish, these businesses, you know, credit card as you know is a work in progress for us.

We have taken a lot of actions over the last 12-18 months, right?

So give us some time and you will see the underlying profit pools emerging in our unsecured businesses over time.

Renish

Got it, got it.

And my next question is on the margin trajectory.

So obviously this quarter it has been moderated a bit in line with what we have guided in Q4 as well.

But how should one think about next two to three quarters' trajectory on the NIM side?

Gaurav Jain

So Renish, as we've mentioned in the previous quarters as well, it's always difficult to predict margins because of multiple moving parts.

So I don't want to give you any sort of directional guidance on that.

But what we know is cost of funds has effectively bottomed out as we mentioned last quarter as well, and we've taken some increase in both savings account and deposits rates, right?

So you will see, you know, that line, you know, being stable to maybe increasing a little bit depending on how the rate environment evolves from here.

And on the asset side, our yield will continue to reflect the mix of assets as we go forward.

Renish

Got it, got it.

Okay, okay, okay.

That's it from my side.

Thank you, team.

Prince Tiwari

Thanks, Renish.

Thank you.

Moderator · Conference Operator

Thank you.

Next question comes from the line of Nitin Aggarwal with Motilal Oswal Financial Services Limited.

Please go ahead.

Nitin Aggarwal

Thanks for the opportunity and congrats on good set of numbers.

I have two questions.

One is on the asset quality, like touching upon the unsecured business growth wherein we have started to see some recovery now, MFI growth of almost 5% Q-on-Q.

How are we looking at this to sustain over the year?

It's a strong start, it looks like.

And also if you can comment around the vehicle business also, mainly around the CVs as to how is the credit environment shaping up on that side?

AU Small Finance Bank Limited July 25, 2026

Vivek Tripathi

Yes, hi Nitin, this is Vivek here.

So, I think microfinance business had a lot of subdued quarter-on-quarter industry-wide deceleration, I would say, and the overall degrowth in the book.

But I think post MFIN guardrails, industry has actually reached a stage where a lot of discipline has come in the field and that's the reason you would see more and more players falling in line and the overall industry, there is a positive traction.

In fact, the MFIN is also projecting about 17%-18% kind of a growth.

So we are just following that and that's visible also on the field.

And as far as on the asset quality is concerned, numbers are holding up.

In fact, the Q1 collection efficiency, typically which has a seasonal dip, could sustain to the tune of 99.5%.

So that, the difference is about 20 basis points from Q4, but if you look at last year Q1, it was very, very different, right?

And on top of it, 96% book is secured, so it gives us a lot of comfort that even if there is some event and there is some slippages happens, you have CGFMU coverage in this book.

On the vehicle side, we have now strong distribution in South, we have strong distribution in UP and the newer states in East.

So that is now giving us the additional volume and we are very, very confident that the kind of customer segment we operate, we understand, there is a good trajectory.

And for us, more on the asset quality side, more or less it remained what it is typically in Q1. There is no abnormality.

There is no indication to suggest that in any of the part of the book, there is a heightened stress or any slippages which is abnormal to our normal sequential, I would say, quarter which typically happens over the period, right?

So nothing unusual in the book.

It gives us a lot of confidence to accelerate the growth on wheels side.

Nitin Aggarwal

Got it.

And so on the CGFMU part, when you said 96% is under that.

So do we plan to lodge any claim or is something under process for all the losses that we have taken last year?

Vivek Tripathi

So it's an annual process.

Nitin, it's a pool-based coverage.

So 2025 book was covered in 2026 and will also be covered in this year.

The 2026 coverage whatever we have taken for last year, we can claim.

So it's a 6-month seasoning post, NPA post that you can lodge a claim.

So there's a cycle, right?

So typically by end of Q2, whatever crystallized NPAs you have for FY26 pool, you will lodge the claims.

That would typically be realized by mid of December, by end of December, right?

Nitin Aggarwal

Right.

Any color on how much this number can be?

AU Small Finance Bank Limited July 25, 2026

Prince Tiwari

It will be part of the overall NPA only, Nitin.

Gaurav Jain

So just, Nitin, just to share some broad contours.

So, as Vivek said, 96-odd percentage is covered, right?

And then, similar percentage of SMA is covered, but some of our NPAs are coming from more vintage pool, pre-sort of CGFMU coverage, right?

So coverage of CGFMU on the GNPA portfolio would be slightly lower.

Nitin Aggarwal

Okay.

Okay, got it.

And one small question around the CD ratio.

Now I see that we have been giving two CD ratios for a long time ever since this metric came in focus.

So which CD ratio, I mean, will you look at to optimize the balance sheet?

Because if I just for refinance as reported, then there is a lot of liquidity that is still there.

But the reported number may look high.

So which internally you look at to see to it that the balance sheet is fairly optimized?

Sanjay Agarwal

Yes, hi Nitin.

But I think we are very comfortable with our number, right?

Because CD ratio ex-refinance is ~80%.

So we don't look this number to optimize anything, right.

It is just the number for our sustenance, right?

How much we should raise deposits and how much we can do the loan.

So we are very comfortable in this kind of number from last maybe now 3 to 4 years actually.

So not much to read around it in my opinion.

Nitin Aggarwal

Okay, sure sir.

Thanks Sanjay ji and wish you all the best.

Sanjay Agarwal

Yes, thanks.

Prince Tiwari

Thanks Nitin.

Moderator · Conference Operator

Next question comes from the line of Akshay Jain with Autonomous.

Please go ahead.

Akshay Jain

Hi sir, thank you for the opportunity.

Sir, my first question is on the 1.8% ROA target.

So, if I understand your comments from the call, you are practically guiding for stable- ish NIMs.

So is it fair to think that, you know, incremental ROA improvement will come only from say opex and your credit costs also seem to have bottomed out?

So is it right to say that?

Gaurav Jain

So on this, right, so we haven't, you know, on the NIMs, so we haven't guided for stable, there's no guidance on NIM, right?

So what we are saying is we see scope for improvement both on the opex and credit cost lines vis-à-vis full FY26, right?

And those two line items will take us to our guided range.

AU Small Finance Bank Limited July 25, 2026

Sanjay Agarwal

And I think this quarter, I think the other income also has not been up to the mark, right?

So I believe other income will should also come in next 6 to 9 months period, right?

So largely, we are 1.7 honestly.

We are not at a lower number, right?

And we are just looking a 10 bps from here.

So maybe everything can contribute, maybe a 2 bps from credit cost, 2 bps from other income or whatever, right?

So it's not that big difference from our stated target and the performance, right?

Akshay Jain

Okay.

Thank you.

Sanjay Agarwal

That's why we don't want to comment much around our ROA tree, because it's not far away from our desired number, right?

Akshay Jain

Understood.

Number 2, coming to the the ECL question, like we have -- most of the banks providing some estimate of, you know, the one-time transition impact as well as the steady state impact on -- the credit cost impact.

So it will be nice if you can give something around so that we can build something in our numbers?

Vivek Tripathi

So Akshay, Vivek here.

I won't be able to comment, I'm sure that banks will be providing, but for us, working it is at a little preliminary stage, one.

Second, as we speak, what I can tell you confidently that historical trend of our LGDs and PDs, especially LGDs on our asset classes are very, very low.

So that gives us enough comfort to say that the impact would be neutral, right?

We don't expect much to in terms of any additional hit on the balance sheet.

However, I think, closer to maybe end of Q3 or something, we would be in a better position to tell you, because by the time we will have a more working models, because we've hired a dedicated team, there is a dedicated external agency, which is helping us to build the ECL models.

So I think it's too premature to comment on it.

But we'll definitely give you some colors by end of Q3.

Akshay Jain

Understood, sir.

Thank you.

And one more thing, I was reading one of your comments that you mentioned that disbursements have partially benefited from newer geographies?

If you can share some lights on how newer geographies are contributing to incremental business?

How should we expect growth from newer geographies?

Sanjay Agarwal

So I think on a design, I think it's difficult to give you the exact data.

But on a design principles, we are more of a north and west franchise till maybe a year back or two years back.

But because of Fincare acquisition, and then expanding to more East also, and going deeper into states like UP, Bihar, so we are largely now a pan India franchise.

AU Small Finance Bank Limited July 25, 2026 So we are focusing that our next 10 year growth should come from all part of the country, right?

And we are building up the South zone, West zone, North zone, East zone, Central zone.

So the idea is to build more distribution across country and for every product, you know, the retail asset we have wheels, we have mortgages, we have gold loan, MFI.

In commercial banking space also we are running four-five kind of book.

Then we have personal loan, consumer finance, credit card.

So, I think there is, I would say, a huge opportunity for us, in next 10 years that once we become a full-fledged India franchise, you know, then I think that the growth which we are predicting that AU should grow at least 2 times or 2.5 times our nominal GDP for next 10 years is quite achievable.

And every state, you know, here and there is now contributing because if I want to have some data, right, vehicle will show up in Southern market now because we are there for the last three years, or maybe from UP also.

And microfinance you know that's a widely held book across country.

So, some of the part are coming back.

So, I think it's a mix product, mix states, but we are seeing lot of traction from our newer geographies.

Akshay Jain

Thank you, sir.

And just maybe if I may, a last question on NSFR.

While I don't see the latest quarter NSFR, but if I look at the history of NSFR, say pre-2024, it used to be in the range of 115 to 120 plus.

However, for the past few quarters, I can see that, you know, it has dropped to 108, 109 levels.

So, what's driving this?

Sanjay Agarwal

That's the range we operate.

Prince Tiwari

That's the range we operate, Akshay.

LCR range is around 115 to 120 and our NSFR typically is about 105 to 115.

That's where we range.

Akshay Jain

Okay, then.

Understood.

Okay, sir.

Thank you for all the answers.

Thank you.

Prince Tiwari

Thank you.

Thanks.

Moderator · Conference Operator

Thank you.

Next question comes from the line of Ashlesh Sonje with Kotak Securities.

Please go ahead.

Ashlesh Sonje

Hi team, good evening.

First question is on the renewable energy book that has grown quite well at some 120% plus year-on-year.

Just want to know who are you lending to?

Is it the project developers or the component manufacturers in this supply chain?

AU Small Finance Bank Limited July 25, 2026

Vivek Tripathi

Yes, hi Ashlesh, Vivek here.

So, the renewable energy book is largely concentrated around developers and it is specifically KUSUM C component, KUSUM A component, these are the two areas and typical project size is between 2 megawatt to 5 megawatt and that's the kind of project these guys putting up, right?

So, we started three years back, started focusing on Rajasthan and then, you know, at a later stage it grew from Rajasthan to Gujarat and Maharashtra, bit of MP and couple of other states.

So, it's a government-supported initiative where there is a incentive to developer as well as to the discoms.

And we found out that the PPAs in this segment are much attractive as well as there is a capital subsidy to the developers which makes the viability of projects more.

So, it's focused on that.

Ashlesh Sonje

Understood, sir.

Thank you for the color.

Just a follow-up on the earlier discussion on PL also.

The growth in that business has also recovered quite well.

If you can shed some light on what is the customer profile here in terms of NTC or salaried?

What is the ticket size?

And on the sourcing side, how much would be from let's say cross-sell to existing liability customers, asset customers, or open market?

Vivek Tripathi

Ashlesh, Vivek here again.

This is, this book is 100% as of now is towards our existing bank customer.

And majority of them would be liability customer, some of them would be asset customers.

But it is basis the existing relationship and we run scorecard, we run the transaction scorecard and basis that, you know, we derive the pre-eligible pool and we run the PL offer basis our analytics on it.

So incrementally yes, we do want to source new-to-bank customers, but that share is very, very small and will grow gradually.

But so far if you look at existing book, 99% would be my ETB customers.

Ashlesh Sonje

Understood, sir.

And third one is on the appointment of Yogesh sir as Deputy CEO.

Now that this is done, how do you expect to share responsibilities at the very senior leadership level going forward?

Sanjay Agarwal

So, the whole idea is also to build a very sustainable bank, right?

And it's very much required to create a leadership at top.

And I'm leading this bank from last now 10 years, you know, and I know that I'll not have a infinite years.

So, I think that process is already started and the idea at a board level is not to rush at the last moment, you know, let's create a leadership at different zone, you know, like Vivek is on the call and of course Yogesh is also on the call, Uttam is on the call.

So, and all three gentlemen are having ED and of course Deputy CEO’s positions and we'll keep building up, you know, a leadership position because bank is very wide, AU Small Finance Bank Limited July 25, 2026 you know, bank functions are very wide, are very complex, and there has to be a leaders who can handle those challenges and can drive bank through the whole cycles, right?

So, I'm very happy that AU's blessed that they have so many committed and ownership attitude people and they are long in the bank, long in the institution, right?

And Yogesh is 16, 17 year old guy (vintage), you know, Vivek is with us from last 12, 13 years, Uttam is last 20 years, and many more, many more, you know, and you will see lot many names coming up in next five years so that, and that's the way, you know, I personally look towards AU in that sense that, you know, AU should be run by professional leadership in times to come and remain forever kind of banking mindset.

So, I think as of now, Yogesh will be taking care of tech and lot many other functions which Board will assign him in times to come.

Ashlesh Sonje

Understood, sir.

And if I can squeeze in one small one, if you can share the average cost of SA deposits and average cost of term deposits from the book.

Thank you, those are all the questions.

Moderator · Conference Operator

Thank you.

Next question comes from the line of Anuj Singla with JP Morgan.

Please go ahead.

Anuj Singla

Yes, good evening team.

Thank you very much for the opportunity and congratulations for a strong set of numbers.

So, three questions.

The first is on the unsecured growth.

So, after a, you know, a long time we are starting this revival there and I think on a sequential basis there has been a strong pickup.

So, can you talk about if there are any targets we have set for ourselves given the momentum, where can this portfolio ramp up maybe over the next one to two years?

Gaurav Jain

So, look on the MFI side, you know, it's difficult to give you any guidance because as you know, right, industry has just started to revive after almost six to eight quarters of degrowth.

So, we'll see how this sustains over a period of time.

But we expect to continue growing this book because it's important from a PSL perspective.

Sanjay Agarwal

But overall, we have kept a cap, right, of our book?

AU Small Finance Bank Limited July 25, 2026

MFI.

Yes.

Overall, as a component, we have publicly announced that it could go up to as high as 10%.

Because you know our requirement of SMAs is also now 10% and we don't have any other Agri book as such.

And so, we want to do our small marginal farmer obligation through this book.

But now the book shape is completely changed because of this guarantee coming in well-diversified.

Team is very capable honestly because I think the Fincare gave us this ability ready hand that this team was available, very experienced team.

So, we are very comfortable as of now.

But we are not seeing this book as our which will increase our ROA and whatever.

This is more about doing your obligation done and having that inclusion piece in place, and also have your own decent ROA on this book.

Anuj Singla

Okay, got it.

The second one is on FCNR side.

So, we understand that US leverage is becoming a constraint for many of the players.

Can you talk about, what target you're looking for in the FCNR side, and what kind of costing does it compare with what you're borrowing in the Indian market on the wholesale side?

How does it impact the cost of funding, if at all?

Sanjay Agarwal

So overall, I think, your spot on that we are not able to get the leverage from our customers, and so we have actually have increased our FCNR rates to now 7.5 if I'm not wrong, 7.4, and we believe that because of our brand, because of our acceptance we will raise some sort of money.

But we are not targeting now a specific one because if you don't have a leverage, it's difficult to convince the customer.

So, I think overall it's very good for the banking if Indian banks get $70-$80 billion in this bucket, then overall I believe the liquidity should improve and if liquidity improve, then the cost of money will go come down.

So overall I believe we may not be directly benefited out of it, but we might have the overall benefit because of industry initiative.

And second, I think we will be raising some money because of OFCB and all those other routes.

Anuj Singla

Okay, got it.

And sir, one last data-keeping question.

What will be technology expenditure as part of our total opex?

Sanjay Agarwal

It's close to INR1,000 crores.

Around 12%-13%.

Anuj Singla

Okay, great.

Thank you.

Thanks again.

Have a good one.

Prince Tiwari

Thanks.

AU Small Finance Bank Limited July 25, 2026

Moderator · Conference Operator

Thank you.

The next question comes from the line of Pritesh Bumb with DAM Capital Advisors.

Please go ahead.

Pritesh Bumb

Hi sir, good evening.

Congrats on a great set of numbers.

Just few questions.

The employee base has declined after a long, long time.

Is that an outcome of any efficiencies like AI, capacity building or is it like after Fincare reorientation, we've paused hiring?

So, any thoughts on that?

Sanjay Agarwal

Yes.

You're absolutely right.

You're saying about the employee count?

Pritesh Bumb

Yes.

Sanjay Agarwal

So, I think the May month was the first month when we actually decreased our manpower from the April month.

But that is one-off honestly because I would say the backend people, we are not growing at all because we believe operations, accounts, finance these things have been taken care of by AI more.

But as we are expanding in newer markets, new geographies, new products, we might want to hire people for front-ending.

But I think there is a clear-cut benefit because of AI in terms of count of people and of course to manage the risk also.

So, to build the scale and to manage the scale, you really see risk through that and AI is helping us lot there.

So, it's a very - I would say an amazing development in banking - and I think the second benefit is that, you can allow people to work from now home or anywhere which was not so easily done in banking.

So, I think that's a second advantage we are seeing it.

So overall I'm very happy the way we are adopting AI, understanding AI, adopting AI, and using it.

Pritesh Bumb

Sure, sir.

Second question was on the MFI side.

I think few years back we had a thought process that the MFI business will now structurally be a 3% credit cost business.

Any change to that thought as we are going into a now a virtuous cycle or are we still building the credit cost of 3% despite the guarantee support?

Sanjay Agarwal

I think 3% when we said you it was three years back when we acquired Fincare.

But I think after this guarantee came in, the entire business model has gone through a change.

So now we are building up cost around guarantee every month, every year.

So, I don't think now 3% is the right optics.

The credit cost around the guarantee and of course whatever is left out.

So it may be 2.5.

But I think overall it's in the same range, but the contour has changed, the shape has changed, the form has changed.

AU Small Finance Bank Limited July 25, 2026

Gaurav Jain

So instead of building up the buffers, we are securing protection on that book.

That's the bit,

Sanjay Agarwal

But that's a similar thing.

You pay credit cost now.

Guarantee cost now.

Gaurav Jain

Yes

Pritesh Bumb

Yes.

Sure.

And last question was on the gold loan business.

If you can just give out some main data points like LTV, IRR.

We have seen that the market is not adding that much of tonnage or customers, but how has that business been for us in terms of any new incremental customers coming in and all.

Vivek Tripathi

So apart from microfinance business, when we acquired Fincare, the gold loan business also came as their expertise.

So, Fincare had a lot of rural distribution because of microfinance branches, and it had capability to do gold loan business in the Southern geographies.

And what we did was that we scaled up that across North- West region where AU had a strong distribution.

So, for us it's a scaling up from a low base, and that's the reason number looks very attractive in terms of when you look at percentage of growth.

But the distribution already is in place, there is a whole ecosystem - there's a valuer, there is an operations team, there is an origination team.

All that that is playing out.

And it's a very, I would say very simple business that way, that you have to manage the fraud risk.

The rest of the risk the product itself manages.

So, ours is not a high-ticket business volume.

Majority of book is less than INR5 lakhs.

And the average ticket size is somewhere around INR2.5 lakh of the whole book.

More than 80% today is a rural book, the book portfolio IRR is about 15.5%.

So, you can just assume it's more of a rural book with a lower ticket size.

So, it's a very, very granular book.

Pritesh Bumb

Understood, sir.

Thank you so much and all the best, sir.

Prince Tiwari

Thanks, Pritesh.

Moderator · Conference Operator

Thank you.

Ladies and gentlemen, as there are no further questions, we have reached the end of question-and-answer session.

I now hand the conference over to Mr. Prince Tiwari for closing comments.

Prince Tiwari

Thank you, Renju, and thank you, everyone, for joining the call and for asking your questions and for all your support.

In case anyone has any further questions, you can AU Small Finance Bank Limited July 25, 2026 kindly reach out to the IR team.

This is Prince Tiwari on behalf of AU management signing off.

Thank you so much.

Moderator · Conference Operator

Thank you.

On behalf of AU Small Finance Bank, that concludes this conference.

Thank you for joining us.

You may now disconnect your lines.