Are AU Small Finance latest results good or bad?

AU Small Finance Bank's financial results for the quarter ending March 2025 present a mixed picture. The bank achieved a record net interest income of Rs 2,093.92 crore, continuing a trend of consistent growth over the past five quarters. Interest earned for the quarter reached Rs 4,270.60 crore, reflecting a significant year-on-year increase of 50.93%. Additionally, the profit after tax (PAT) was reported at Rs 503.70 crore, indicating a year-on-year growth of 16.24%.
However, challenges are evident in other areas. The profit before tax (PBT), excluding other income, reported a loss of Rs -103.52 crore, marking a decline of 20.13% year-on-year and representing the lowest figure in the last five quarters. Furthermore, non-operating income accounted for 115.75% of PBT, with a quarterly high of Rs 760.67 crore, raising concerns regarding the sustainability of the bank's income sources.

Overall, while AU Small Finance Bank has demonstrated strong growth in its core business areas, there are notable challenges in profitability metrics. The company saw an adjustment in its evaluation, reflecting the complexities of its financial performance.