AU Small Finance Bank Reports Mixed Financial Performance Amid Rising Interest Income

AU Small Finance Bank has recently undergone a financial trend adjustment, reflecting its performance metrics for the quarter ending March 2025. The bank reported a notable increase in its net interest income, reaching Rs 2,093.92 crore, alongside a record high in interest earned at Rs 4,270.60 crore. Additionally, the profit after tax (PAT) demonstrated significant growth, amounting to Rs 503.70 crore, which represents a year-on-year increase of 35.9%.
However, the bank faced challenges as well. The profit before tax (PBT) excluding other income was recorded at Rs -103.52 crore, indicating a struggle in this area. Furthermore, non-operating income constituted 115.75% of the profit before tax, highlighting a reliance on income sources outside of core banking operations.

In terms of market performance, AU Small Finance Bank has shown resilience compared to the Sensex. Over the past week, the stock returned 7.21%, and over the past month, it achieved a return of 14.2%, significantly outpacing the Sensex's 3.50% return. However, over a three-year period, the stock has underperformed with a return of -10.03%, contrasting with the Sensex's 39.16% gain. This evaluation revision underscores the mixed performance of AU Small Finance Bank in a competitive banking landscape.