AU Small Finance Bank gains after starting MF distribution

AU Small Finance Bank rose 1.93% to Rs 691.75 at 10:10 IST on BSE after the bank said it has commenced offering mutual funds products.

Meanwhile, the S&P BSE Sensex was up 5.22 points, or 0.02% to 33,623.81.

On the BSE, 21,000 shares were traded in the counter so far, compared with average daily volumes of 96,911 shares in the past one quarter. The stock had hit a high of Rs 698.40 and a low of Rs 682 so far during the day. The stock hit a record high of Rs 724.45 on 14 July 2017. The stock hit a record low of Rs 496.40 on 7 August 2017.

AU Small Finance Bank said it has commenced mutual funds distribution for its customers. The bank has partnered with 11 reputed mutual fund houses (asset management companies) for starting this product segment.

AU Small Finance Bank's net profit fell 3% to Rs 68.24 crore on 41% increase in operating income to Rs 507.71 crore in Q2 September 2017 over Q2 September 2016.

AU Small Finance Bank initiated its operations in 1996 as retail focused non-banking finance company (NBFC) in Jaipur serving low and middle-income individuals and businesses having limited or no access to formal banking and finance channels. The company received a license from the Reserve Bank of India to set up a Small Finance Bank (SFB) along with nine other such entities on 30 December 2016 and commenced SFB operations with effect from 19 April 2017.

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