On Wednesday, January 5, AU Small Finance Bank Ltd shares went up by 11.49% on NSE as of 10:59 am. The stock has been on rally for the past 2 days. The stocks have been high due to a stronger outlook.
Motilal Oswal, a domestic financial services provider has issued a ‘buy’ call on the stock. “On the asset quality front, collection efficiency remains strong, which is likely to result in an improvement in asset quality ratios, providing further comfort. We maintain our Buy rating with a TP of INR1,400/share,” said the financial services provider in a statement.
Morgan Stanley has also predicted a stronger outlook for the bank. The global broking firm has an ‘overweight’ call on the AU Bank shares with a target at Rs 1500/share. Earlier AU Bank had reported a 26.5% YoY growth. In Q3FY22 the disbursements were up by 33% YoY. AU Small Finance Bank was founded as a vehicle finance company in 1996. The company was transformed into a scheduled commercial bank in 2017.
