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    AU Small Finance Bank shares tank 9% post Q2 earnings, amalgamation announcement

    Synopsis

    AU Small Finance Bank on Saturday reported a 17% rise in standalone net profit at Rs 402 crore for the September quarter 2023-24 aided by an improvement in interest income. The Jaipur-based lender had logged a net profit of Rs 343 crore in the year-ago period. Total income rose to Rs 2,957 crore from Rs 2,240 crore in the same period a year ago, AU Small Finance Bank said in a regulatory filing.

    AU Small Finance Bank shares tank 9% post Q2 earnings, amalgamation announcementAgencies
    Shares of AU Small Finance Bank (AU SFB) fell 9% on Monday to the day's low of Rs 630 on the NSE following the company's nod to a scheme of amalgamation with Fincare Small Finance Bank (Fincare SFB).

    The price action accompanied strong volume actions as over 25.25 lakh shares changed hands on the NSE around 10:15 a.m.

    The share exchange ratio for the amalgamation of the Fincare Small Finance Bank with AU SFB will be 579 equity shares of face value of Rs 10 per share each for every 2,000 equity shares of face value of Rs 10 per share of the latter, the company filing to exchanges said.

    The Board of Directors has also accorded approval for execution of an implementation agreement to be entered into, between the Fincare SFB, Fincare Business Services Limited and AU SFB. Fincare Business Services is Fincare SFB's promoter company.

    AU Small Finance Bank on Saturday reported a 17% rise in standalone net profit at Rs 402 crore for the September quarter 2023-24 aided by an improvement in interest income. The Jaipur-based lender had logged a net profit of Rs 343 crore in the year-ago period. Total income rose to Rs 2,957 crore from Rs 2,240 crore in the same period a year ago, AU Small Finance Bank said in a regulatory filing.

    Net interest income of the bank improved to Rs 1,249 crore from Rs 1,083 crore in September 2022. Net interest margin stood at 5.5% at the end of September 2023.

    The bank's gross non-performing assets (NPAs) stood at 1.91% of gross advances at the end of the September quarter 2023 as against 1.90% a year ago.

    Net NPAs or bad loans rose to 0.60% as against 0.56% in the year-ago period. The Capital Adequacy Ratio of the bank decreased to 22.4% from 23.3% at the end of September 2022.

    (Inputs from agencies)

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