 "AU Small Finance Bank rallies 8% on post Q3 business update")
Shares of AU Small Finance Bank jumped 8 per cent to Rs 1,179.50 on the BSE in Wednesday’s intra-day trade after the private sector lender reported a sequential growth of 10.6 per cent and 26.5 per cent year-on-year in total assets under management (AUM) to Rs 42,027 crore in October-December quarter (Q3FY22).
In the past one week, the stock has outperformed the market by gaining 16 per cent, when compared with a 3.6 per cent rise in the S&P BSE Sensex. However, in past three months, the stock price of the bank has dipped 3.3 per cent, as against a 0.24 per cent gain in the benchmark index. The stock hit a record high of Rs 1,389 on August 24, 2021.
"Q3FY22 was near-normal quarter for the Bank with strong growth seen in advances, disbursements and deposits across all businesses and customer segments supported by a good festive season. The customer cashflows continue to improve supporting recovery trends and asset quality in the quarter.", AU Small Finance said in its provisional business update.
On a gross advances basis, the bank witnessed a growth of 11.9 per cent QoQ (+33.4 per cent YoY). The bank saw a significant improvement in the overall business environment, which resulted in strong disbursements. In Q3FY22, disbursements were up 59 per cent QoQ (+33 per cent YoY) at Rs 8,152 crore. Disbursements included ECLGS of Rs 48 crore in Q3FY22. The bank is witnessing strong traction in the Credit Cards business.
AU Small Finance Bank also posted a robust growth in advances, led by strong disbursements, due to an overall improvement in the business environment. Deposit growth too remains strong, led by robust CASA growth, resulting in a further improvement in CASA ratio. On the asset quality front, collection efficiency remains strong (in excess of 100 per cent), which is likely to result in an improvement in asset quality ratios, providing further comfort, Motilal Financial Services said in update.
In the past one week, the stock has outperformed the market by gaining 16 per cent, when compared with a 3.6 per cent rise in the S&P BSE Sensex. However, in past three months, the stock price of the bank has dipped 3.3 per cent, as against a 0.24 per cent gain in the benchmark index. The stock hit a record high of Rs 1,389 on August 24, 2021.
"Q3FY22 was near-normal quarter for the Bank with strong growth seen in advances, disbursements and deposits across all businesses and customer segments supported by a good festive season. The customer cashflows continue to improve supporting recovery trends and asset quality in the quarter.", AU Small Finance said in its provisional business update.
On a gross advances basis, the bank witnessed a growth of 11.9 per cent QoQ (+33.4 per cent YoY). The bank saw a significant improvement in the overall business environment, which resulted in strong disbursements. In Q3FY22, disbursements were up 59 per cent QoQ (+33 per cent YoY) at Rs 8,152 crore. Disbursements included ECLGS of Rs 48 crore in Q3FY22. The bank is witnessing strong traction in the Credit Cards business.
AU Small Finance Bank also posted a robust growth in advances, led by strong disbursements, due to an overall improvement in the business environment. Deposit growth too remains strong, led by robust CASA growth, resulting in a further improvement in CASA ratio. On the asset quality front, collection efficiency remains strong (in excess of 100 per cent), which is likely to result in an improvement in asset quality ratios, providing further comfort, Motilal Financial Services said in update.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%