AU Small Finance Bank - Growth Momentum Strong; Collection Efficiency Holds Up: Nirmal Bang
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Nirmal Bang Report
We recently hosted the IR team at AU Small Finance Bank Ltd. to discuss the business outlook and trends in asset quality.
The IR team stated that growth in wheels, business banking and affordable housing has remained strong while micro small and medium enterprise/securities based lending is witnessing some green-shoots.
Collection in August 2021 held up well and the bank expects recovery in net slippages.
AU Small Finance Bank believes that its provision coverage ratio is adequate due to the granular nature of loans.
The overall outlook on growth and asset quality seems to be improving month-on-month and we expect the onset of the festive season to bring some cheer after a roller coaster of the last five quarters.
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