- AU Bank posted improving trends across all key metrics like AUM growth, NIMs, Asset quality in a very strong 3QFY20.
- PAT grew 100% YoY due to strong operating performance. NII grew 46% YoY.
- AU bank’s gross AUM increased 37% YoY mainly due to strong growth in retail book.
- Deposits grew 63% YoY to Rs.239bn. Retail SA formed 81% of overall SA deposits while retail TDs formed 37% of total term deposits.
- The bank does not face any challenges in the collection and overall asset quality in the wheels portfolio.
- Growth & profitability oulook remain strong and the bank is focusing on high-yielding segments and under-penetrated opportunities in MSME segment.
- AU Bank is a top pick in the banking sector and would likely continue with its high valuation.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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