Why look at AU Small Finance Bank when the going is tough?

We are back to a near-IPO valuation for a growing franchise like AU SFB with an established track record and a promising road ahead

Madhuchanda Dey
August 10, 2021 / 09:02 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook

AU Small Finance Bank (AU, CMP: Rs 1265, Market Cap: Rs 39,585 crore) has reported a subdued quarter wherein asset quality continued to remain under pressure but business parameters, especially deposits, showed promise. With a razor-sharp focus on building a retail focused deposit franchise, sustainable growth in secured assets, industry-leading asset quality, heavy investment in technology with a focus on digitisation and an endeavour to create a respected brand, this young small finance bank (SFB) is poised to reach...