Asset quality, second Covid wave concerns weigh on AU Small Fin Bank stock

Shares of AU Small Finance Bank plummeted 11.5 per cent in the intra-day trade to hit a low of Rs 994 on the BSE on Friday, but ended 10.7 per cent lower at Rs 1,003 apiece, as the lender's asset quality worsened in the March quarter of FY21 (Q4FY21). 

According to the financial statement of the bank, the gross non-performing assets (NPAs) spiked to 4.25 per cent of gross advances as of March 31, 2021, from 1.68 per cent in the same period last year. Net NPAs or bad loans also soared to 2.18 per cent from 0.81 per cent.