AU Small Finance Bank’s share price jumped over 14% on Thursday, as RBI approved the reappointment of Sanjay Agarwal as Managing Director & CEO.
What Happened: The company on Tuesday informed that RBI, India’s central bank has approved the reappointment of Sanjay Agarwal as Managing Director & CEO for a period of three years. The reappointment of Uttam Tibrewal as Whole Time Director for a three-year tenure was also green-lit by the RBI. The appointments had already received the shareholders’ nod last month.
The announcement has cheered investors and helped the AU Bank share price to continue gaining for the third straight session. The surge comes as the stock has had a slow start to the year. AU Bank’s share price is up around 1.5% year-to-date.
The announcement also received a positive reaction from brokerages. Domestic brokerage firm ICICI Securities upgraded the stocks rating from ‘add’ to ‘buy’ revising the price target to ₹770 from ₹700. Morgan Staley also remained strongly bullish on the stock as it maintained its ‘overweight’ rating with a price target of ₹860. Citi also has a ‘buy’ rating on the stock with a price target of ₹740.
Price Action: AU Bank’s share price was up 14.78% to trade at ₹666.25 in the early hours of trading on Thursday.
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