AU SFB – A long growth highway ahead

Earning trajectory of AU SFB looks good as the bank has adequate capital, right products and the technology backbone to take on competition

Madhuchanda Dey
September 09, 2022 / 03:09 PM 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

Highlights A weak Q1 marred by trading losses and softer margin Asset quality stable, benign credit cost expected Loan growth strong, improving outlook bolsters the case for a surge ahead Building excellent retail-centric deposits, cost of funds stable Margin should stay protected despite a large fixed rate book, riding on better liability Investing heavily in technology and network to capture market share A long-term winner, should find a place in core portfolio AU Small Finance Bank (CMP: Rs 660, Market Cap: Rs 43,924 crore) has all the...