AU Small Finance Bank - Well Capitalised To Fund Future Growth: HDFC Securities Retail Research
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HDFC Securities Retail Research Report
AU Small Finance Bank Ltd. is a scheduled commercial bank and the largest small finance bank in the country. Its assets under management has grown at a robust level of 32.5% compound annual growth rate over FY18-21.
The bank offers varied range of product portfolio both in asset and liability side. However, vehicle financing (36% of advances) and micro small and medium enterprise loans (39% of advances) remains the core of the portfolio.
AU Small Finance Bank has scaled its operations via building 794 branch network but the geographic concentration of the bank remains high with 42% of the assets and 28% of the liabilities coming form only from one state- home state Rajasthan.
The liability profile of the bank also remains modest with lower current accounts and savings account ratio (30% as of Q2 FY22) and high share of bulk term deposit.
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