Are AU Small Finance latest results good or bad?

AU Small Finance Bank has released its financial results for the quarter ending June 2025, highlighting a mixed performance. The bank achieved an interest earned of Rs 4,378.44 crore, which is the highest quarterly figure in the last five quarters, reflecting a positive trend in interest income. Additionally, the Profit After Tax (PAT) reached Rs 580.86 crore, marking the highest level in the same timeframe and indicating a commitment to enhancing shareholder value, as evidenced by an Earnings per Share (EPS) of Rs 7.79.
However, the results also reveal significant challenges. The Profit Before Tax (PBT) reported a decline to Rs -31.71 crore, which raises concerns about the bank's operational efficiency. Furthermore, the Gross Non-Performing Assets (NPA) ratio increased to 2.47%, suggesting a rise in stressed loans, which could impact future profitability. The reliance on non-operating income, which constituted 104.07% of PBT, raises questions about the sustainability of income sources.

Overall, while AU Small Finance Bank demonstrates strengths in interest income and profitability, it faces hurdles that require attention. The company saw an adjustment in its evaluation, reflecting the complexities of its current financial landscape.