AU Small Finance shares rise on plans to appoint 2 independent directors
AU Small shares rose after it proposed to appoint N S Venkatesh and Satyajit Dwivedi as non-executive independent directors for a three-year term
 "AU Small Finance shares rise on plans to appoint 2 independent directors")
Shares of AU Small Finance Ltd. rose nearly 2 per cent on Wednesday after it proposed to appoint N S Venkatesh and Satyajit Dwivedi as non-executive independent directors for a three-year term, and reappointed Malini Thadani for another three-year term.
The lender's stock rose as much as 1.9 per cent during the day to a life high of ₹962.6 per share, the biggest intraday rise since November 25 this year. The stock pared gains to trade 1.7 per cent higher at ₹960.3 apiece, compared to a 0.78 per cent advance in Nifty 50 as of 10:11 AM.
Shares of the company rose for the third straight session and have risen 10 per cent so far this month. The counter has rallied 72 per cent this year, compared to a 9.9 per cent advance in the benchmark Nifty 50. AU Small Finance has a total market capitalisation of ₹71,724.11 crore.
AU Small Finance strengthens board
AU Small Finance Bank has initiated a postal ballot process to seek shareholder approval for a series of appointments, reappointments and remuneration proposals.
The bank proposed the appointment of NS Venkatesh and Satyajit Dwivedi as independent directors, both requiring special resolutions. It is also seeking approval for the second three-year term of independent director Malini Thadani, through another special resolution.
Venkatesh, a chartered accountant with over four decades of experience, has held leadership roles at IDBI, the Association of Mutual Funds in India (AMFI) and Lakshmi Vilas Bank. Dwivedi brings more than 35 years of experience in development finance, agriculture, microfinance and rural banking. He has held senior roles at NABARD, Nabkisan Finance and the National Centre for Financial Education.
Among ordinary resolutions, the bank has placed proposals for approving the remuneration of Managing Director and CEO Sanjay Agarwal and Whole-Time Director and Deputy CEO Uttam Tibrewal. Shareholders were also being asked to approve the reappointment of Sanjay Agarwal as Managing Director and CEO.
AU Small Finance Q2 results
The Bank reported a 2 per cent dip in net profit at ₹561 crore for the second quarter ended September 30. Net total income rose 9 per cent to ₹2,857 crore, while operating expenses was up 11 per cent Y-o-Y to ₹1,647 crore during the quarter. Total deposits stands at over Rs 1.32 lakh crore with 21 per cent Y-o-Y growth.
Analysts at YES Securities estimate the bank to deliver a compound annual growth rate (CAGR) of 21 per cent in loan book, 19 per cent in Pre-Provision Operating Profit (PPOP) and 30 per cent in profit after tax over FY25-27. RoA/RoE are likely to reach 1.8 per cent/16 per cent in FY27.