This study evaluates the financial performance and operational efficiency of AU Small Finance Bank from 2020 to 2024 using the CAMEL rating framework and the Altman Z-Score model. The CAMEL model assesses the bank’s strength across five critical dimensions: Capital Adequacy, Asset Quality, Management Efficiency, Earnings Quality, and Liquidity. The Z-Score model is employed to predict financial distress and measure long-term viability. The findings indicate strong capitalization and profitability, with some fluctuations in liquidity and asset quality. This dual-model approach provides a comprehensive assessment and offers strategic insights for improving the bank's financial sustainability and regulatory compliance.