What’s holding AU Small Finance Bank back?

The lender’s ho-hum ride on the stock market points at investor ire over its failure to move on getting a universal banking licence.

Something is not quite right at AU Small Finance Bank. 

It has seen its stock rise 11.6% in the past year, at a time when shares of two of its peers—Suryoday SFB and Ujjivan SFB—have more than doubled, while another peer—Equitas SFB—has seen its stock go up over 84%. Besides, the AU stock has seen 25,020 retail shareholders exit between October 2022 and June 2023.

Now that stands in sharp contrast with its operating performance. In the small finance bank segment, AU is doing way better than its peers. Its closest rival has a balance sheet that’s a third of …


Furquan Moharkan

Furquan leads the banking coverage at The Morning Context. A business journalist with eight years of experience and a best-selling author, in his earlier stints as a reporter with the Deccan Herald and a columnist at The Banker, he wrote on banking, financial markets and regulatory affairs. He has extensively covered India's debt market crisis, banking crisis and the fall of Yes Bank.

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