AU Small Finance Shares Surge After RBI Approves Reappointment Of Its MD And CEO

Shares of AU Small Finance Bank Ltd. rose the most since its listing in July 2017 on Thursday after the Reserve Bank of India approved the reappointment of its managing director and chief executive officer.

The central bank approved the reappointment of Sanjay Agarwal as managing director and chief executive officer and Uttam Tibrewal as a whole-time director for three years until April 18, 2026, according to an exchange filing by the company.

Shares of AU Small Finance Bank Ltd. rose 13.2% to Rs 656.75 apiece as of 10:10 a.m., compared to a 0.12% decline in the benchmark NSE Nifty 50. The stock gained as much as 18.92% intraday.

The total traded volume so far in the day stood at 48.4 times its 30-day average. The relative strength index was at 70.3, implying that the stock may be overbought.

Out of the 28 analysts tracking the company, 18 maintain a 'buy' rating, five recommend a 'hold' and five suggest to 'sell' the stock, according to Bloomberg data. The average 12-month consensus price target implies a potential upside of 5.6%.