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Robust business growth; CD ratio inches up

AUBANK released its business update for 2QFY26. Here are the key highlights:

* AUBANK has reported a robust 5.3% QoQ (+22.4% YoY) growth in gross advances to ~INR1.18t. Including the securitized/assigned + IBPC loan portfolio, the total loan portfolio grew 4.5% QoQ (17% YoY). Growth broadly stood in line with our estimate of net advances at 20.9% YoY/4.4% QoQ.

* The bank securitized its asset portfolio of INR53.5b in 2QFY26 and INR60.1b in 1QFY26.

* Deposit growth too stood healthy at 3.8% QoQ to reach INR1.33t (clocked a strong growth of 20.8% YoY). Our estimate of deposit growth is at 21.9% YoY/4.7% QoQ.

* CASA deposit growth was robust at 4.6% QoQ (+9.7% YoY) to INR389.6b. As a result, the CASA ratio improved slightly to 29.4% from 29.2% as of 1QFY26.

* Overall, business growth stood robust, led by healthy traction in gross advances. Deposit growth continued to grow at a steady pace, led by healthy momentum in CASA deposits. Overall CD ratio inched up to 88.7% from 87.4% in 1QFY26, amid faster growth in advances.

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