Why AU Bank Shares Are Skyrocketing Today

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.

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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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Posted In: MoversTrading IdeasAU Small Finance Bank