Moneycontrol Pro: AU Small Finance Bank in focus, here's why

In a few ideas for profit from Moneycontrol Pro, Madhuchanda Dey of Moneycontrol.Com talks about a stock that she is tracking closely, AU Small Finance Bank.

Despite its recent outperformance, AU Small Finance Bank is in focus for a number of reasons. The growth has come back in the bank in a very big way in the last reported quarter. It also has a retail dominated but predominantly secured asset book and has managed its book quality much better than peers amid the COVID-19 challenges. The NPA picture improved and collection efficiency rose in the last reported quarter.

With adequate capital and substantial investment in technology, it is ready to take market share. The valuation is at a steep discount to its IPO listing valuation.