AU Small Finance Bank has recorded profits for the previous two fiscal years, and maintained gross and net non-performing assets below 3% and 1%, respectively, as mandated by the RBI
Equitas and Ujjivan posted proforma NPA of 4.16 per cent and 4.8 per cent respectively in Q3, highest ever in many years
Recommendation on collapsing the holding company could simplify the structure and help reduce promoter stake in the banks
Analysts say the holding company discount could exceed 50 per cent considering their shareholding structure
Till clarity emerges on regulatory fronts and the two companies diversify their loan books in a healthy way, it may not be rewarding for shareholders
Currently, the non-microfinance book is spilt between business loans, loans to the agriculture segment, gold loans and corporate loans