Au Small Finance Bank Ltd. share price target

We introduce FY24 estimates. We maintain our BUY recommendation on the stock and value AUSFB at 4.6x FY24E ABV and arrive at a target price of Rs 1,375/share, implying an upside of 10% from CMP.

Additions to the existing restructured pool, Credit cost outlook for FY22E and management commentary around the progress in the ONAN pool remain key monitorables. We currently have a BUY recommendation on the stock with a target price of Rs. 1105/share.

We maintain a BUY on the stock and value it at 4.3x FY23E ABV to revise the target price to Rs. 1105, implying an upside of 10% from CMP.

AUBANK reported a weak 4QFY21, with earnings impacted by one-offs in the form of higher interest reversals and increase in opex, led by ESOPrelated expenses. However, business momentum was robust, with retaildeposit mix improving further. Asset quality developments: GNPA/NNPA increased to 4.3%/2.2%, led by tagging of customers who are less than 90dpd and paying, but was once NPA ('ONAN') during prior quarters. However, CE and customer activation rate moved higher than pre-COVID levels. We remain watchful of asset quality in the near term and cut our FY22E/FY23E earnings by 20%/17% to factor in higher credit cost. Maintain Buy....

AU Small Finance Bank (AUBANK) reported below-estimated Q4FY21 PAT of Rs 1.7bn due to slower NII growth and one-off employee cost.

We expect AU Small Finance Bank's (AUBANK) longstanding expertise in vehicle finance and successful extension into secured business loans to aid a 22% loan CAGR over FY20-FY23.

We remain confident in the bank's ability to bounce back and gather growth momentum as the macro economic conditions normalise. We maintain a BUY rating on the stock with a price target of Rs 872 (4.25x Sept'22E ABV).

Asian markets are trading higher as investors focus on developments of the coronavirus vaccine after AstraZeneca resumed its phase-3 trial, while sentiments remain cautious ahead of the central bank meeting in the UK, Japan and the U.S during the week. Nikkei is trading higher by 0.71%; Hang Seng is

of preceding months being received. Total covidrelated provisionsstandatRs2.8bn,near1%ofloanbook. Thoughmanagementexpectscollectionstofurtherimprove in JulyAugust, we believe delinquencies could spike as...

4 May 2020 AU Small Finance Bank (AUBANK) reported subdued earnings, impacted by higher provisions (INR1.4b) toward SMA accounts. Overdue loans stood at INR23b (8.5% of loans) as of April20 v/s INR36b as of 1 Mar20. 29% of customers (25% of the loan book) availed moratorium, which would be the key monitorable in the near term. On the business front, loan growth moderated, while deposits stood healthy. We cut our earnings estimate for FY21/22 by 18%/10% as we factor in high credit cost and moderation in business growth. AUBANK reported 3.5% YoY growth in PAT to INR1.2b, affected by higher provisions of INR1.5b, as it made ~5% provisions (INR1.4b) toward SMA accounts, as per an RBI circular. NII grew 43% YoY (+10% QoQ) to INR5.5b NII/PPoP/PAT grew 42%/66%/77% respectively while core PPoP/adjusted PAT (adjusted for stale sale in Aavas) grew 57%/56% respectively.