Review

AU SMALL FINANCE BANK

Ticker : 540611
FV : Rs 10
52-Week H/L : Rs 1217.70/366.20​

We had previously recommended AU Small Finance Bank in vol. 37, no. 1, dated October 26, 2020, when the scrip was trading at Rs 778.95. It was recommended based on the bank’s better-thanexpected financial performance in the recent quarters. AU Small Finance Bank has business operations in areas such as consumer banking, corporate banking, commercial banking & treasury. For Q2FY21, the net interest income was reported at Rs 561 crore, which is an increase of 24 per cent from Rs 452 crore reported in Q2FY20. The total income for Q2FY21 rose by 40 per cent to Rs 846 crore from Rs 602 crore posted in Q2FY20. The bank reported a net profit of Rs 322 crore for Q2FY21, increasing by 87 per cent YoY. As of September 30, 2020, GNPA stood at 1.5 per cent while CRAR was reported at 21.5 per cent. The bank recently got benefited from strong revenue growth as well as increased market penetration & business due to various agreements of different entities. Hence, we recommend our investor readers to BOOK PROFIT at Rs 850 per scrip as of October 22, 2020, with a gain of 9.12 per cent.