Shares of AU Small Finance Bank fell over 3% to ₹770 after reporting mixed Q1 FY26 results. The bank posted a net profit of ₹580.9 crore, up 15.6% YoY, but net interest income (NII) came in at ₹2,044.6 crore, missing estimates of ₹2,107 crore. Asset quality weakened sequentially as gross NPAs rose to ₹2,751.3 crore (GNPA ratio at 2.47% vs 2.28% QoQ) and net NPAs climbed to ₹971.3 crore (NPA ratio at 0.88% vs 0.74% QoQ).
Brokerage Summary:
- CITI: Neutral rating, Target price: ₹850, View: Maintain with caution
- Nuvama: Reduce rating, Target price: ₹650, View: Downgrade due to stress
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