AU Small Finance Bank - Business Momentum Robust In Q4; Asset Quality Deteriorates Sequentially: Motilal Oswal
Men hold a two thousand Indian rupee banknote for a photograph in Mumbai, India. (Photographer Dhiraj Singh/Bloomberg)

AU Small Finance Bank - Business Momentum Robust In Q4; Asset Quality Deteriorates Sequentially: Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

AU Small Finance Bank Ltd. reported a weak Q4 FY21, with earnings impacted by one-offs in the form of higher interest reversals and increase in opex, led by employee stock ownership plan related expenses.

However, business momentum was robust, with retail deposit mix improving further.

Gross non-performing asset/ net non-performing asset increased to 4.3%/2.2%, led by tagging of customers who are less than 90 days past due and paying, but was once NPA during prior quarters.

However, collection efficiency and customer activation rate moved higher than pre-Covid-19 levels.

Click on the attachment to read the full report:

Motilal Oswal AU Small Finance Bank Q4FY21 Result Review.pdf

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