ICICI Securities has add call on Au Small Finance Bank Ltd. with a target price of Rs 1140. The current market price of Au Small Finance Bank Ltd. is Rs 938.4.
Au Small Finance Bank Ltd., incorporated in the year 1996, is a banking company (having a market cap of Rs 29558.80 Crore).
For the quarter ended 31-03-2021, the company reported a Standalone Total Income of Rs 1569.01 Crore, down -18.47 % from last quarter Total Income of Rs 1924.53 Crore and up 14.81 % from last year same quarter Total Income of Rs 1366.60 Crore. The bank reported net profit after tax of Rs 168.98 Crore in latest quarter.
The proposed SA rate cut would help AU further improve its cost of funds and retail deposit share. In FY21, overall cost of funds fell by 86bps to 6.83% from 7.69% in FY20. Incremental cost of fund in FY21 remained at a much lower level of 5.9%, likely to come down further with proposed rate cut. Its liability franchise continued to improve in FY21 despite covid-led challenges as reflected in A) increasing share of retail deposits, B) improved CASA ratio from 14% to 23% in FY21, C) increasing share of deposits in total funding (deposits + borrowings) to 84% from 72% in FY20.
Promoters held 28.5 per cent stake in the company as of March 31, 2021, while FIIs held 36.4 per cent, DIIs 16.2 per cent and public and other 18.9 per cent.
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