AU Small Finance Bank may find it challenging to manage the asset quality of Fincare SFB's microfinance institution portfolio
To function as combined entity from April 1, 2024
The lender added that Khan's tenure will begin from the date of taking charge, January 30, 2024, after approval from the Board of Directors and from the RBI and shareholders of the bank
Analysts downgraded the stock tracking elevated provisions, interest rates, and funding costs
The bank's Gross Non-Performing Assets (GNPAs) rose to 1.98 per cent in Q3FY24 from 1.81 per cent in Q3FY23 and 1.91 in Q2FY24
Margins under pressure; provisions rise sharply
The Jaipur-based bank posted a 4 per cent year-on-year decrease in profit in the latest quarter at Rs 375 crore compared to Rs 393 crore in the Q3FY23
The Competition Commission of India (CCI) has approved the merger of Fincare Small Finance Bank with AU Small Finance Bank, as per an exchange filing on Tuesday. In October last year, the board of directors of AU Small Finance Bank (AU SFB) and that of Fincare Small Finance Bank (Fincare SFB) approved an all-stock merger of AU SFB and Fincare SFB. As per the terms of scheme of amalgamation, Fincare Business Services, promoter of Fincare SFB, shall infuse Rs 700 crore into Fincare SFB prior to the completion of the merger. "...CCI vide its letter dated January 23, 2024 has communicated that CCI in its meeting held on January 23, 2024, considered and approved the proposed combination involving amalgamation of Fincare Small Finance Bank Limited into and with AU Small Finance Bank...," AU SBF said in the filing to stock exchanges. The lender further said the scheme remains subject to the Reserve Bank of India's approval. Shares of AU SFB ended at Rs 715.95 apiece on the BSE on Tuesday
According to the exchange filing, advances rose by 4 per cent sequentially from Rs 65,029 crore
"We can deliver vehicle loans faster and more accurately," said Uttam Tibrewal, executive director, AU Small Finance Bank
The AU- ixigo Travel Credit Card offers up to a 10 per cent discount on flight bookings, instant discounts on hotel bookings, and zero payment gateway charges for train bookings, among other deals
There is nothing to stop our firm from turning into a Universal Bank, said Ittira Davis, managing director and chief executive officer of Ujjivan Small Finance Bank
Stocks to watch on October 30, 2023: Fincare Small Finance Bank is set to merge with AU Small Finance Bank (AU SFB) in an all-share deal; Gujarat Gas has hiked industrial gas price to Rs 45.6 per scm
At present, AU's market capitalisation is Rs 46,000 crore, the highest among small finance banks. The market capitalisation of the merged entity will be slightly over Rs 50,000 crore
AU Small Finance Bank on Saturday reported 17 per cent rise in standalone net profit at Rs 402 crore for September quarter 2023-24 aided by improvement in interest income. The Jaipur-based lender had logged a net profit of Rs 343 crore in the year-ago period. Total income rose to Rs 2,957 crore from Rs 2,240 crore in the same period a year ago, AU Small Finance Bank said in a regulatory filing. Net interest income of the bank improved to Rs 1,249 crore from Rs 1,083 crore in September 2022. Net interest margin stood at 5.5 per cent at the end of September 2023. The bank's gross non-performing assets (NPAs) stood at 1.91 per cent of gross advances at the end of the September quarter 2023 as against 1.90 per cent a year ago. Net NPAs or bad loans rose to 0.60 per cent as against 0.56 per cent in the year-ago period. The Capital Adequacy Ratio of the bank decreased to 22.4 per cent from 23.3 per cent at the end of September 2022.
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For Dhanteras, customers can get 5% Cashback on Jewelry purchases using AU Credit Card.
AU Small Finance Bank on Saturday reported a 44 per cent rise in net profit at Rs 387 crore in the June quarter helped by growth in interest income. The Jaipur-based lender had posted a net profit of Rs 268 crore in the year-ago period. Total income in the first quarter of the current fiscal rose to Rs 2,773 crore from Rs 1,979 crore in the same period a year ago, AU Small Finance Bank said in a regulatory filing. Interest earned by the bank improved to Rs 2,458 crore over Rs 1,820 crore in June 2022. Net interest income (NII) increased by 28 per cent to Rs 1,246 crore from Rs 976 crore in the same quarter a year ago. However, the net interest margin declined to 5.7 per cent as compared to 5.9 per cent in the same period a year ago. Despite Q1 being a seasonally weak quarter for banking, the bank saw growth across its assets and deposits with profitability growing by 44 per cent on an annual basis supported by a strong NII growth of 28 per cent. The bank's asset quality showed .
At 12:11 pm; the stock was up 2.8 per cent at Rs 752.15, with a market capitalisation of Rs 50,154 crore, the BSE data shows.
Banking will completely shift from brick-and-mortar to online in some 10 years, he says