AU Small Finance Bank on Monday rose by 3.32% to hit a record high, nearly doubling in value from its listing price. The stock ended Monday’s session at Rs 712.85, 99% above its issue price of Rs 358. AU Small Finance Bank made its debut on the bourses in July this year, and the stock rose by 48% on the listing day. Analysts said the company’s proven track record, the quality of its management team, their differentiated approach towards vehicle finance by focusing on retail loans, and staying away from unsecured lending make them stand out.
The company received the small finance bank (SFB) license from the Reserve Bank of India on December 20, 2016. It commenced its SFB operations with effect from April 19, 2017. Prior to this, it was a retail-focused non-banking finance company.
