AU Small Finance Bank Share Price Gains After Q3 Results

Shares of AU Small Finance Bank Ltd. jumped over 4% on Friday after its third quarter net interest income rose.

The bank's standalone net profit during the quarter ended December fell 7.5% to Rs 528.4 crore, compared to Rs 571.2 crore in the previous quarter.

The net interest income—the difference of interest earned and interest paid—for the quarter rose 2% to Rs 2,022 crore. This compares to Rs 1,974.4 crore reported in the corresponding quarter of the previous fiscal.

AU Small Finance Bank's asset quality worsened during the quarter under review, with the gross non-performing assets ratio rising to 2.31% from 1.98% in the October-December period. In absolute terms, the gross NPA rose to Rs 2,335.51 crore from Rs 1,901.69 crore in the first quarter.

The net NPA ratio expanded 16 basis points to 0.91% from 0.75% in the preceding quarter. In absolute terms, the net NPA rose to Rs 905.60 crore from Rs 706.70 crore.

The provisions in the quarter ended December rose 35% to Rs 501 crore in comparison to Rs 373 crore in the previous quarter.

The merger between AU Small Finance Bank and Fincare Small Finance Bank came into effect from April 1, 2024.

Shares of AU Small Finance Bank rose as much as 4.57% to Rs 609 apiece, the highest level since Jan. 21. They pared gains to trade 2.14% higher at Rs 594.85 apiece, as of 3:21 p.m., compared to a 0.44% decline in the NSE Nifty 50.

The stock has fallen 19.32% in the last 12 months. Total traded volume so far in the day stood at 2.2 times its 30-day average. The relative strength index was at 55.

Out of 29 analysts tracking the company, 18 maintain a 'buy' rating, seven recommend a 'hold' and four suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 16.5%.