AU Small Finance invests Rs 7.70 crore in NCPI, gains 0.24%
On 26 November 2020, AU Small Finance Bank announced making a strategic investment of Rs 7.70 crore in NPCI. 61,320 equity shares at the book of Rs 1,256 per equity share are allocated to the bank constituting, 0.44% shareholding of NPCI. Post the announcement, AU Small Finance saw a 0.24% jump in its share price.
NPCI (National Payments Corporation of India) is operating retail payments and settlement systems in India and has been a ‘Not for Profit’ company under the provisions of Section 25 of Companies Act 1956 as an initiative of Reserve Bank of India and India Bank’s Association. It provides a provision of the Payment and Settlement Systems Act, 2007, for creating a robust Payment and Settlement Infrastructure in India.
The net profit of AU Small Finance Bank rose by 87.2% to Rs 321.88 crore. This led to a rise of 26.5% in total income to Rs 1,498.15 crore in Q2 September 2020 vs Q2 September 2019.
AU Small Finance Bank is a commercial bank that offers financial products and services such as saving and current accounts, term deposits, debit cards, insurance, government banking, retail loans, and microfinance lending.