** India's AU Small Finance Bank AUFI.NS gains 2% to 1022.45 rupees
** AUFI's third-quarter net profit rises 26% YOY to 6.68 billion rupees; net interest margin up 25 basis points q/q
** Morgan Stanley raises PT on stock to 1,230 rupees from 1,175 earlier, says net interest margins and asset quality surprised positively again
** AUFI is well set to resume its strong medium-term growth and ROA trajectory, driven by NIM expansion and credit cost normalization - BofA
** Avg rating for AUFI "hold" from 27 analysts tracking the stock; median PT 927.5 rupees, per data compiled by LSEG
** Stock rose ~78% in 2025
(Reporting by Brijesh Patel in Bengaluru)
((Brijesh.Patel1@thomsonreuters.com; Ph no. +91 9590227221;))