Earnings beat, but asset quality slips slightly
AU SFB has, after a miss in 4Q, now reported a 10% beat on PAT at Rs5bn/on RoA at 1.7%, mainly bolstered by healthy NIMs and lower opex. However, seasonal stress, including some effect of the elections in the MFI portfolio coupled with continued delinquencies in Cards, led to higher slippages at 3.5% of loans/LLP at 1.3% of loans. Overall credit growth was healthy, at 23% YoY/5% QoQ, and led to better LDR, which coupled with higher fresh disb...
Reduce AU Small Finance Bank Ltd. For Target Rs. 625 By Emkay Global Financial Services
