InCred has maintained its add rating on AU Small Finance Bank with a target price of ₹945 per share, citing continued strength in loan growth and improving deposit mobilisation trends.
The brokerage noted that gross loans grew 24% YoY, accelerating from 22% in the previous quarter, reflecting sustained demand across retail and MSME segments. Sequentially, deposit growth also remained healthy, indicating improving franchise traction in a competitive banking environment.
InCred highlighted that term deposits grew 26% YoY and 5% QoQ, broadly steady compared to the previous quarter, supporting balance sheet expansion. The gross loan-to-deposit ratio inched up to 90.5%, compared with 89% in the prior quarter and 90% a year ago, suggesting a measured increase in balance sheet utilisation without materially increasing liquidity risk.
The brokerage believes AU SFB’s growth profile remains attractive, supported by granular lending, improving liability franchise, and stable asset quality. While rising competition for deposits remains a sector-wide challenge, InCred expects AU SFB to sustain healthy growth through disciplined pricing and strong execution.
Disclaimer: The views and recommendations above are those of InCred. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
