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AU Small Finance Bank Gets Both Rating, Target Price Upgrade From ICICI Securities — Here's Why
ICICI Securities upgrades AU SFB to Buy from Hold on improving RoA and reasonable valuation; current entry point lucrative from a risk-reward standpoint.
27 Feb 2025, 01:42 PM IST 
AU Small Finance Bank is currently trading at two times/1.7 times FY26E/FY27E BVPS.\(Photo Source: Bank's official FB page)
Despite short-term credit cost pressures, AU Small Finance Bank seems to be well-positioned to maintain its RoA in-line with management guidance of 1.6% for FY25 and reach ~1.8% by FY27E. This resilience is driven by strong loan growth, rising contribution from fee based income and cost efficiencies as bank gains scale and led by synergies.
