Asset quality, second Covid-19 wave concerns weigh on AU SFB stock

Gross NPA ratio spiked to 4.25 per cent in March quarter from 1.68 per cent a year ago

Topics
AU Small Finance Bank | NPA

Nikita Vashisht  |  New Delhi 

Shares of AU Small Finance Bank (AU SFB) plummeted 10.7 per cent to close at Rs 1,003.45 on Friday as the lender's asset quality worsened in the March quarter (Q4) of FY21. The rising second Covid wave impacting businesses is only adding to the Street’s concerns as AU SFB’s provisioning coverage ratio (PCR) is also lower than peers.

In comparison, Sensex was down 2 per cent and BSE Bankex by 2.6 per cent on Friday. According to the bank’s results announced on Thursday evening, the gross non-performing assets (NPAs) spiked to 4.25 per cent of gross advances as of ...

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First Published: Fri, April 30 2021. 18:35 IST
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