The AU Small Finance Bank share price edged higher in the morning session on October 6 as the lender's total deposits grew 45 percent over the last year to Rs 39,034 crore in the second quarter of 2021-22.
AU Small Finance Bank had deposits of Rs 26,980 crore in the September quarter last year. Its CASA Ratio came in at 30 percent as against 20 percent between the corresponding periods.
The bank’s loan AUM scaled 24 percent to Rs 38,011 crore in the second quarter this year from Rs 30,590 crore in the year-ago period and gross advances soared 32 percent to Rs 36,405 crore from Rs 27,534 crore.
The bank's funds-based disbursements grew 57 percent year-on-year to Rs 5,135 crore from Rs 3,268 crore.
“In Q2FY22, the bank saw improvement versus the Q1FY22 across several key aspects such as borrower connect, business continuity, and confidence within the operating environment. As also reflected in the data above, this momentum has resulted in pick-up in disbursements, strong collection efficiencies, resulting in robust improvement in asset quality. Further, our digital properties like AU 0101, Video Banking, Credit cards and UPI QR continue to see strong momentum,” the bank said.
It approved the appointment of Vinay Vaish, as Head of Internal Audit for a period of three years, with effect from October 7.
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Global brokerage firm Morgan Stanley has an 'overweight' call on the stock with target at Rs 1,500 per share. It is of the view that the AUM growth was strong at 4 percent QoQ and 24 percent YoY adding that collection efficiency remained strong after the second Covid wave, according to a CNBC-TV18 report.
At 10:24 hours, the stock was trading at Rs 1,217.15, up Rs 5.35, or 0.44 percent. It has touched an intraday high of Rs 1,271.75 and an intraday low of Rs 1,207.65.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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