AU Small Finance Bank is a leading private sector small finance bank headquartered in Jaipur, Rajasthan. Incorporated in 1996 as Au Financiers and granted a small finance bank license by the RBI in 2017, it has rapidly expanded into retail banking, vehicle finance, microfinance, and digital lending. With over 1,500 touchpoints across India and a strong focus on semi-urban and rural markets, AU Bank has delivered consistent profit growth and asset quality improvement. As of January 2026, it remains a high-growth, high-valuation stock favored by institutional investors. This article provides a data-driven outlook on the AU Small Finance Bank share price target 2026–2030.
AU Small Finance Bank: Company Overview
- Founded: 1996 (as Au Financiers); converted to SFB in 2017
- Managing Director: Mr. Sanjay Agarwal
- NSE Symbol: AUBANK
- Business Segments: Retail Banking, Vehicle Finance, Microfinance, Treasury, Digital Lending
- Market Position: Among India’s top 3 small finance banks by market capitalization
AU Bank maintains a robust capital adequacy ratio (CAR) of 20.06%, well above RBI’s 15% requirement for SFBs. Its gross NPA stands at 2.28% and net NPA at 0.74%, reflecting disciplined underwriting and strong collection efficiency.
AU Small Finance Bank: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹979 |
| Market Capitalization | ₹73,245.54 Cr |
| No. of Shares Outstanding | 74.74 Cr |
| 52-Week High / Low | ₹1,027 / ₹478 |
| P/E Ratio (TTM) | 33.69 |
| P/B Ratio | 4.04 |
| EPS (TTM) | ₹29.09 |
| Book Value (TTM) | ₹242.86 |
| ROE | 14.26% |
| ROCE | 15.45% |
| Dividend Yield | 0.10% |
| Face Value | ₹10 |
| Net Interest Income | ₹8,011.58 Cr |
| Cost-to-Income Ratio | 56.53% |
| Capital Adequacy Ratio (CAR) | 20.06% |
| Profit Growth (YoY) | 37.22% |
| CASA % | 29.17% |
AU Small Finance Bank Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹1,040 – ₹1,160 |
| 2027 | ₹1,120 – ₹1,280 |
| 2028 | ₹1,200 – ₹1,420 |
| 2029 | ₹1,280 – ₹1,580 |
| 2030 | ₹1,360 – ₹1,750 |
AU Small Finance Bank Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹1,040 | ₹1,160 |
AU Bank reported 37.22% YoY profit growth in FY2025, supported by strong loan book expansion (especially in vehicle finance and home loans) and stable asset quality. However, it trades at a premium—P/E of 33.69 and P/B of 4.04—reflecting high growth expectations. A 2026 target range of ₹1,040–₹1,160 assumes continued execution and no major macro disruptions.
AU Small Finance Bank Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹1,120 | ₹1,280 |
If the bank sustains 30%+ earnings growth and gradually improves its cost-to-income ratio (currently 56.53%), investor confidence will remain strong. Assuming EPS reaches ₹35–₹38 by FY27 and P/E stabilizes at 32–34x, the 2027 target range of ₹1,120–₹1,280 is justified.
AU Small Finance Bank Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹1,200 | ₹1,420 |
By 2028, benefits from digital scaling, branch rationalization, and cross-selling should reflect in margins. With ROCE of 15.45%—higher than ROE—the bank efficiently deploys capital. A P/E of 33–35x on projected EPS of ₹36–₹41 supports the ₹1,200–₹1,420 band.
AU Small Finance Bank Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹1,280 | ₹1,580 |
Long-term tailwinds include rising credit penetration in semi-urban India and AU Bank’s niche in affordable vehicle and housing finance. If competition doesn’t erode margins, EPS could reach ₹39–₹44 by FY29. At a P/E of 33–36x, the 2029 target is ₹1,280–₹1,580.
AU Small Finance Bank Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹1,360 | ₹1,750 |
Over a five-year horizon, AU Bank’s growth story remains intact—but valuation risk is high. A terminal P/E of 34–37x on FY30 EPS (~₹40–₹47) justifies the ₹1,360–₹1,750 range. Upside depends on sustained ROE above 14% and capital discipline.
AU Small Finance Bank: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Foreign Institutional Investors (FII) | 34.50% |
| Domestic Institutional Investors (DII) | 31.89% |
| Promoters | 22.82% |
| Public & Others | 10.78% |
High institutional ownership (66.39%) ensures liquidity and analyst coverage. Promoter holding is stable, with no significant pledging reported.
AU Small Finance Bank: Strengths vs Risks
Strengths:
- Consistent 5-year profit CAGR of 25.6%
- Strong capital buffer (CAR: 20.06%) and clean asset quality (Net NPA: 0.74%)
- Leadership in affordable vehicle finance and rural lending
- High ROCE (15.45%) indicates efficient capital use
Risks:
- Premium valuation (P/B: 4.04) leaves little room for earnings disappointment
- CASA ratio (29.17%) lags behind large private banks
- Cost-to-income ratio (56.53%) is higher than peers like ICICI (38.6%)
- Contingent liabilities of ₹1.12 lakh Cr require monitoring
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | Moderate to High |
| Ideal Time Horizon | 5+ years |
| Volatility | Higher than market average (stock up ~70% in 1 year) |
| Dividend/Income Potential | Minimal (0.10% yield) |
| Best For | Growth-oriented investors seeking exposure to India’s financial inclusion story |
FAQs
Is AU Bank a good long-term investment?
Yes—for aggressive growth portfolios. Its strong fundamentals, capital strength, and market positioning support long-term potential. However, its high valuation demands flawless execution.
Who is the owner of AU Small Bank?
The founder and largest promoter is Mr. Sanjay Agarwal, who holds ~22.82% stake directly and through family entities. The bank is privately owned, not government-controlled.
What is the price target for AU Small Finance?
Based on fundamentals and sector trends, the AU Small Finance Bank share price target for 2026 is ₹1,040–₹1,160. The 2026–2030 cumulative range is ₹1,040 to ₹1,750.
Is AU Small Finance Bank a government or private bank?
It is a private sector small finance bank, licensed by the RBI in 2017. It is not owned or controlled by the government.
Final Verdict
AU Small Finance Bank has emerged as a high-quality compounder in India’s financial inclusion space. Its combination of strong growth, clean balance sheet, and strategic focus on underserved markets makes it a compelling—but expensive—long-term holding.
Our AU Small Finance Bank share price target 2026–2030 (₹1,040 to ₹1,750) reflects optimistic but realistic assumptions on earnings growth and valuation sustainability. Investors should monitor quarterly asset quality, cost ratios, and competitive intensity before increasing exposure.
Disclaimer: Price targets are estimates based on publicly available data and sector analysis. They are not investment advice. Consult a SEBI-registered advisor before making decisions.
Sources
- Screener.in – AU Small Finance Bank Consolidated Page (FY2025 + TTM)
- Finology Ticker – AUBANK Financials & Analysis
- Groww.in – AU Small Finance Bank Stock Profile
- AU Bank Investor Presentation (Q3 FY26, Jan 2026)
- RBI Guidelines on Small Finance Banks and Capital Adequacy
