AU Small Finance Bank Surges Most In Over A Year, Here Is Why

Shares of Jaipur-based private sector lender AU Small Finance Bank rose as much as 16.72 per cent, the most in over a year, to hit an intraday high of Rs 677.55 on the BSE a day after the Reserve Bank of India (RBI) approved reappointment of its managing director and CEO Sanjay Agarwal for a period of three years. The RBI also approved reappointment of Uttam Tibrewal as whole time director for a period of three years.

"We wish to inform you that the Reserve Bank of India vide its letter dated 12th April, 2023, has approved the following: Re-appointment of Mr. Sanjay Agarwal (DIN: 00009526) as Managing Director & CEO for a period of 3 (three) years w.e.f. 19th April, 2023 till 18th April, 2026; and Re-appointment of Mr. Uttam Tibrewal (DIN: 01024940) as Whole Time Director for a period of 3 (three) years w.e.f. 19th April, 2023 till 18th April, 2026," AU Small Finance Bank said in a regulatory filing on Wednesday after market hours.

AU Small Finance Bank reported net profit of Rs 392.83 crore for quarter ended December 2022, that marked an upside of 30 per cent from profit of Rs 302 crore during the same quarter last year. Its net interest income or the difference between interest earned and interest expended came in at 1,152.73 crore versus Rs 820.42 crore, marking an increase of 40 per cent annually.

AU Small Finance Bank's asset quality saw an improvement at the end of the third quarter of financial year 2022-23 as its net gross non-performing assets (NPAs), as a percentage of total advances, came in at 1.81 per cent compared with 2.6 per cent in December quarter of 2021. In absolute terms gross NPAs came in at Rs 1,019 crore versus 1,057 crore.

Net NPAs came in at 0.51 per cent compared with 1.29 per cent.

As of 1:39 pm, AU Small Finance Bank shares traded 16.13 per cent higher at Rs 674, outperforming the Sensex which was down 0.3 per cent.