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AU Small Finance Bank reported strong Q2 FY26 results with H1 PAT up 6% YoY. Deposits surged 21% YoY to 1.32 lakh Cr, and total loans grew 17% YoY to 1.23 lakh Cr (22% ex-unsecured). NIM expanded to 5.5% QoQ, and credit costs declined to 481 Cr, expected to hit 1% for the full year. Management anticipates H2 economic improvement, driving growth. In-principle universal bank approval boosts trust and fund cost optimization. Unsecured portfolio stabilization and expanded distribution are key growth drivers, with a confident outlook for sustainable market share gains.