AU Small Finance Bank has emerged almost unscathed from the first wave of COVID-19. While asset quality has weakened a tad, the exceptional gains on account of AWAS, the provision cover is at a comfortable 72 percent.
The second wave of the pandemic is bound to pose challenges, but owning to the banks largely secured book, severe disruption is unlikely.
The company also raised Rs 625 crore at a price of Rs 1,251 per share and the stock in the recent market correction, fell much below those levels. This presents a great opportunity to add a good business at a bad time.
In the special segment ‘Moneycontrol Pro Ideas For Profit’, moneycontrol.com’s Madhuchanda Dey gets more details on the stock’s performance.Disclaimer: The views and investment tips expressed by investment experts are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.