AU Small Finance Bank

AU Small Finance Bank
Traded as BSE: 540611
NSE: AUBANK
Industry Banking, Financial services
Founded 1996
Headquarters Jaipur, Rajasthan, India
Area served
 India
Key people
 Mr. Mannil Venugopalan (Chairman)
Mr. Sanjay Agarwal (MD & CEO)
Revenue ₹2,155.25 crores (US$331 million)[1] (2018)
₹292.04 crores (US$45 million) (2018)
Total equity ₹17,655 crores (US$2711.15 million) (2018)
Number of employees
 8,515 (2017)
Website https://www.aubank.in/

AU Small Finance Bank is an Indian commercial bank that was founded as vehicle finance company Au Financiers (India) Ltd in 1996 and converted to a small finance bank on 19 April 2017.[2] It ranked 469 in the Fortune India 500 (2017) companies, with annual revenue of ₹2,041.82 crores (US$314 million) and assets of ₹9,186.28 crores (US$1.41 billion).[3] Its full market capitalization at FY18 was ₹17,655 crores (US$2.71 billion).[4][5]

History

The company was founded by Sanjay Agarwal (managing director and CEO of AU Small Finance Bank) as a private limited company, and publicly listed in an IPO on 29 June 2017.[2] On its first day of trading, the stock rose 51% to be the most expensive bank in India based on price-to-book.[6] Private equity companies that provided venture capital, including Warburg Pincus and International Finance Corporation, made partial exits for as much as nine times their original investment.[7][8]

In November 2017, the Reserve Bank of India added the bank to its schedule of commercial banks, further improving the bank's growth prospects by reducing the cost of short-term funds and improving the bank's ability to provide services.[9]

Services

Due to its history as a vehicle finance company, as of March 2018 almost all the loans made by AU Small Finance Bank were secured, unlike most small finance banks that have unsecured loans due to their background in microfinance. This provides lower yields (lower interest rates) than unsecured loans, so the bank has been particularly active in growing its deposits, as bank deposits have lower cost than other sources of funds. It has also sought to diversify into investment banking and additional loan products.[10]

Footprint

As of July 2017, AU Small Finance Bank had 301 bank branches, with plans to expand to over 430 branches by the end of 2018.[11][12] In addition, the bank had 113 asset centres as of 30 September 2017.[13]

The bank has operations in 11 states and one union territory, but its business is concentrated in Rajasthan, Gujarat, Maharashtra and Madhya Pradesh.[13] It is one of the largest banks by number of locations in its home state of Rajasthan.[14]

References

  1. ↑ "AU Small Finance Bank Q4 net up 7 pc at Rs 83 cr". The Times of India. PTI. 26 April 2018. Retrieved 27 April 2018.
  2. 1 2 Mudgill, Amit (28 June 2017). "AU Small Finance Bank IPO; here's what 8 brokerages say". The Economic Times. Retrieved 15 March 2018.
  3. ↑ "AU Small Finance Bank - Fortune 500 List 2017". Fortune India. Retrieved 4 March 2018.
  4. ↑ "Stock Share Price AU Small Finance Bank Ltd". BSE India. Retrieved 23 March 2018.
  5. ↑ "AUBANK-IN: AU Small Finance Bank Ltd - Stock Quote and News". CNBC. Retrieved 23 March 2018.
  6. ↑ Babla, Shraddha (11 July 2017). "After 51% Listing Gains, AU Small Finance Bank India's Most Expensive". Bloomberg Quint. Retrieved 15 March 2018.
  7. ↑ Chatterjee, Paramita (7 December 2017). "PE Exits At An All-time High". BW Businessworld. Retrieved 28 March 2018.
  8. ↑ "High Stakes". Outlook Business. 2 March 2018. Retrieved 28 March 2018.
  9. ↑ Srivats, K.R. (2 November 2017). "AU Small Finance gets scheduled commercial bank status". The Hindu Business Line. Retrieved 15 March 2018.
  10. ↑ Dey, Madhuchanda (12 March 2018). "Time to look at high quality niche players – AU Small Finance & MAS Financial". Moneycontrol. Retrieved 15 March 2018.
  11. ↑ Sonavane, Ravindra (10 July 2017). "AU Small Finance Bank shares close 51% higher on stock market debut". livemint. Retrieved 15 March 2018.
  12. ↑ Karayamparambil, Jescilia (20 June 2017). "AU Small Finance IPO to hit market". Free Press Journal. Retrieved 15 March 2018.
  13. 1 2 "Rating Rationale: AU Small Finance Bank Limited". CRISIL. 6 December 2017. Retrieved 17 March 2018.
  14. ↑ "India Ratings Upgrades AU Small Finance Bank's NCDs to 'IND AA-'/Stable". India Ratings and Research Private Limited. 23 February 2018. Retrieved 17 March 2018.
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