Shares of AU Small Finance Bank slumped over 4% on Wednesday to hit an intraday low of ₹630.85 continuing its four-session losing streak. The slump today comes after the company reported its earnings for the March quarter on Tuesday.
What Happened: The bank’s net interest income -which is the difference between the income a bank makes from its lending activities and the interest it pays to depositors – for the quarter ended March stood at ₹1,213.20 crore, a close to 30% increase from the year-ago period. Net interest margin was 6.1% for the quarter down marginally from the 6.3% it clocked in the corresponding quarter last year.
The bank also booked its highest-ever quarterly profit at ₹425 crore, up 23% year-over-year. Earning per share for the quarter stood at ₹6.4. The lender also declared a ₹1/share dividend.
Brokerages had a mixed reaction to the company’s numbers. Morgan Stanley remained ‘overweight’ on the stock with a price target of ₹835. On the other hand, domestic brokerage firm HDFC Secrutirw maintained its ‘reduce’ rating on the stock slashing the price target of ₹578 from ₹621.
The lender had earlier this month received RBI’s nod for the reappointment of Sanjay Agarwal as Managing Director & CEO for a period of three years.
Get all the latest Share Market trends and news to set you up for the week ahead.
Price Action: AU Small Finance Bank’s share price was down 3.47% to trade at ₹637.25 in the early hours of trading on Wednesday.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.