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NSE : AUBANKBSE : 540611ISIN CODE : INE949L01017Industry : Bank - PrivateHouse : Private
BSE886.70-2 (-0.23 %)
PREV CLOSE ( ) 888.70
OPEN PRICE ( ) 892.00
BID PRICE (QTY) 0.00 (0)
OFFER PRICE (QTY) 0.00 (0)
TODAY'S LOW / HIGH ( )883.20 899.00
52 WK LOW / HIGH ( )542.75 892
NSE887.05-1.3 (-0.15 %)
PREV CLOSE( ) 888.35
OPEN PRICE ( ) 892.15
BID PRICE (QTY) 0.00 (0)
OFFER PRICE (QTY) 887.05 (7)
VOLUME 255835
TODAY'S LOW / HIGH( ) 882.25 899.40
52 WK LOW / HIGH ( )541.25 892
AnalystNameSweta Padhi
CP1DesignationMD & CEO
CP1NameMr. Sanjay Agarwal
CP2NameMr. Deepak Jain
CallDate22 Oct 2019
DescriptionDisbursement yield has increased to 15.6% in the 1HFY20 as against 13.7% YoY, leading to improvement in the spreads. The cost of deposit in 2QFY20 is 7.5%, the fixed deposit stands at 7.65% while saving deposit is at 6%. Portfolio IRR is at 14.7 %, spread stands at 6.9%. Increment cost of funds is at 7.45% v/s 7.55% QoQ which further declines in September to 7.33%. Decreasing reliance on Certificate of Deposit, high-cost grandfathered borrowing is expected to get repaid in the next 12 months will lead to margin expansion by 20-30 bps going ahead. NIM stands improved at 5.3% from 5% QoQ. Management is presently focusing on Used vehicle as the IRR is used is 15%+ while in new IRR is at 12%. The employee numbers have increased by 11% because of the rise in the housing book. C/I ratio is improving with rising in the operational efficiency, 10 branches have achieved break-even in the last quarter. Management has guided to C/I ratio to remain at a 54% level in 2HFY20. Management has taken the benefit of tax gain to improve provision level. The standard asset has increased to 1% in the wheels portfolio. There is no specific account on which provision needs to be done. PCR will keep improving as provision coverage policy changes. Whenever there is a need for capital management will capitalize on stake sale of aavas (Rs 800 Cr). Management has guided the overall book to grow by 35-40% with disbursement at 25%. Management focuses on retail deposits. The average ticket size of retail deposit stood between Rs 25000-35000. Further, the ticket size is improving to Rs 40000- 45000. 40% of Deposit franchises are noncallable in nature, which is priced at 15-20 bps higher. 60% of Bulk deposits are non-callable. Warrant conversion of Rs 525 Cr from Tamasek is expected to come in 3QFY20. Management has increased Used vehicle segment channels from 700 to 2000. The used vehicle segment is launched in the same geography, with similar applications and customer profiles as a new vehicle. Limited growth in NBFC has led to gain market share in this segment. Management has increased proactive engagement program for a used vehicle which led to strong disbursement. Even if BBB & Below exposure is half of the total NBFC segment, management remains confident in this segment. Construction finance is showing better traction due to the higher share of the affordable housing segment. GNPA in the Real estate book consists of construction finance book- which is 100% cash flow backed. There as the unit gets sold the recovery comes in, management remains confident to get recovery in these accounts. Legacy book of builder LAP - AU SFB has witnessed rundown of GNPA up to Rs 2.55 Cr NPA account. There is 5 NPA account out of which 3 accounts still paying dues.


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