AU Small Finance Bank Ltd logo

AU Small Finance Bank Ltd

AUBANK NSE

AU Small Finance Bank Limited is engaged in providing a range of banking and financial services including retail banking, wholesale banking, treasury operations and other services. [1]

AI Verdict: HOLD Confidence: 5%

AU Small Finance Bank trades at a PE of 29.1x and 3.89x book value with a modest ROE of 14%, suggesting the stock is pricing in significant growth that has yet to fully materialize in profitability. While revenue growth of 31% CAGR over 3 years is impressive, the valuation leaves limited margin of safety given the low interest coverage and sub-par return ratios.

Key Fundamentals

MidcapSmall Finance BankBanks
Market Cap
₹79,488 Cr
Volatility
Moderate
P/E Ratio
29.23
EBITDA
₹493 Cr
Return on Equity
38.28%
Debt to Equity
0
Book Value
₹263.47
EPS
₹23.05
52W High
₹1,079.55
52W Low
₹682.15

Technical Indicators

Key Insights

Strengths

1
  • Company's median sales growth is 33.4% of last 10 years

Weaknesses

3
  • Stock is trading at 4.05 times its book value
  • Company has low interest coverage ratio.
  • Company has a low return on equity of 13.9% over last 3 years.

Growth Rate

Revenue Growth
19.10% ↗
Net Income Growth
210.40% ↗
Cash Flow Change
151.43% ↗
ROE
67.23% ↗
ROCE
50.78% ↗
EBITDA Margin (Avg.)
-1.75% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk medium

AU Small Finance Bank trades at a PE of 29.1x and 3.89x book value with a modest ROE of 14%, suggesting the stock is pricing in significant growth that has yet to fully materialize in profitability. While revenue growth of 31% CAGR over 3 years is impressive, the valuation leaves limited margin of safety given the low interest coverage and sub-par return ratios.

Bull Case 8
  • Strong revenue growth with 3-year compounded sales CAGR of 31% and 10-year CAGR of 34%, indicating consistent business expansion
  • Compounded profit growth of 25% on TTM basis shows accelerating earnings momentum
  • Median sales growth of 33.4% over last 10 years demonstrates a durable high-growth franchise in underpenetrated small finance banking segment
  • Stock has delivered 30% return over the past 1 year, reflecting strong market confidence and momentum
  • Majority analyst consensus is bullish with 51.85% recommending Buy (14 out of 27 analysts)
  • 5-year compounded profit CAGR of 18% despite COVID disruptions shows operational resilience
  • Market cap of Rs 76,843 crore provides adequate liquidity and index inclusion potential for further institutional flows
  • 5-year stock CAGR of 15% has outperformed many banking peers in the small finance bank category
Bear Case 8
  • Stock trades at 3.89x price-to-book value which is expensive for a bank delivering only 14% ROE — peers with similar ROE trade at 2-2.5x book
  • Return on equity of 14% over 3 and 5 years is subpar for the premium valuation; a 3.89x PB ideally needs 18-20% ROE to justify
  • Low interest coverage ratio signals vulnerability to rising funding costs and potential NIM compression
  • 29.63% of analysts (8 out of 27) recommend Sell, indicating meaningful disagreement on valuation
  • PE ratio of 29.1x is at a significant premium to larger private banks like HDFC Bank and ICICI Bank trading at 18-22x PE
  • Dividend yield of just 0.1% offers virtually no income protection in a downturn scenario
  • 3-year ROE has stagnated at 14% with no visible improvement trend despite 31% revenue CAGR, raising questions on scalability of profitability
  • 5-year profit CAGR of 18% lags the 5-year sales CAGR of 30%, indicating operating leverage has not yet played out

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Positives 5
  • Stock up 32-44% in one year Jun 15

    AU Small Finance Bank rose 32.37-44.28% over the past year, massively outperforming NIFTY (-3.34% to -4.2%) and Nifty Bank (-0.41% to -2.39%) indices.

  • New ED appointed with 99% vote Jun 15

    Vivek Tripathi appointed as Executive Director with 99.21% shareholder approval via postal ballot concluded June 14, 2026.

  • FD rates hiked to 7.9% Jun 10

    Senior citizen FD rates raised from 7.75% to 7.90% and regular rates to 7.40%, effective June 10, positioning AU SFB competitively despite RBI holding repo rate at 5.25%.

  • Consistent multi-session stock gains Jun 15

    Stock quoted at ₹1,034.4, up 1.86% on June 15, marking a third consecutive gaining session with positive derivatives sentiment (June futures at ₹1,037.7).

  • Active US investor outreach Jun 4

    Bank scheduled one-on-one investor meetings in the US on June 8-9, and participated in BofA India Conference 2026 in Mumbai from June 2-4.

Neutral 4
  • ₹52.44 Cr institutional block trade Jun 12

    Block trade of ~530,861 shares executed at ₹987.80 per share on NSE, valued at ₹52.44 crores, indicating notable institutional activity.

  • Unclaimed dividend transfer to IEPF May 27

    FY 2018-19 unclaimed dividend and shares to be transferred to IEPF by September 27, 2026; shareholders must claim by August 28, 2026.

  • Trading volume below average Jun 15

    Current session volume of 11.56 lakh shares was below the one-month daily average of 18.29 lakh shares, suggesting gains on lighter participation.

  • PE ratio at ~28.8x TTM Jun 15

    Price-to-earnings ratio stands at 28.79 based on TTM earnings ending March 2026, slightly above peer RBL Bank's 27.54x.

TL;DR: AU Small Finance Bank is in a strong uptrend, outperforming benchmarks by a wide margin with 32-44% annual gains and consistent short-term momentum. The bank is proactively raising deposit rates and engaging global investors, signaling confidence in growth. No material headwinds are visible in recent news, though below-average trading volumes and a PE near 29x suggest the rally may need earnings follow-through to sustain. The trend is clearly improving with leadership stability and competitive deposit positioning reinforcing the bullish case.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Revenue
2,275
2,458
2,531
2,736
2,830
3,769
3,911
4,113
4,271
4,378
4,511
4,727
5,019
Expenses
1,016
1,048
1,122
1,269
1,346
1,761
1,854
1,938
2,197
2,076
2,128
2,181
2,231
Financing Profit
197
198
127
56
-9
160
121
85
-104
-32
16
160
351
Fin. Margin %
9%
8%
5%
2%
0%
4%
3%
2%
-2%
-1%
0%
3%
7%
Other Income
333
315
406
442
464
509
638
618
761
811
713
724
731
Interest
1,062
1,212
1,282
1,411
1,492
1,848
1,936
2,091
2,177
2,334
2,367
2,386
2,437
Depreciation
0
0
0
0
0
0
0
0
0
0
0
0
0
PBT
530
513
533
498
455
669
759
703
657
779
729
884
1,082
Tax %
20%
25%
25%
25%
18%
25%
25%
25%
23%
25%
23%
24%
23%
Net Profit
425
387
402
375
371
503
571
528
504
581
561
668
832
EPS in Rs
6.37
5.8
6.01
5.61
5.54
6.76
7.68
7.1
6.77
7.79
7.52
8.94
11.12
Gross NPA %
1.66%
1.76%
1.91%
1.98%
1.67%
1.78%
1.98%
2.31%
2.28%
2.47%
2.41%
2.3%
2.03%
Net NPA %
0.42%
0.55%
0.6%
0.68%
0.55%
0.63%
0.75%
0.91%
0.74%
0.88%
0.88%
0.88%
0.74%
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Revenue
704
1,010
1,280
1,767
2,949
4,286
4,950
5,922
8,205
10,555
16,064
18,636
Expenses
209
289
445
832
1,163
1,612
2,224
2,634
3,410
4,629
7,491
8,617
Financing Profit
212
326
339
109
180
296
142
601
1,016
528
520
496
Fin. Margin %
30%
32%
26%
6%
6%
7%
3%
10%
12%
5%
3%
3%
Other Income
2
5
810
388
462
706
1,421
994
1,034
1,697
2,526
2,978
Interest
282
395
496
827
1,607
2,377
2,585
2,688
3,780
5,398
8,052
9,524
Depreciation
7
9
6
53
62
89
104
140
185
225
259
0
PBT
208
323
1,143
443
580
914
1,458
1,454
1,865
1,999
2,788
3,474
Tax %
33%
34%
28%
34%
34%
26%
20%
22%
23%
23%
24%
24%
Net Profit
140
212
822
292
382
675
1,171
1,130
1,428
1,535
2,106
2,641
EPS in Rs
15.9
23.99
14.46
5.11
6.53
11.09
18.75
17.94
21.42
22.93
28.29
35.3
Div. Payout %
0%
0%
0%
5%
6%
0%
0%
3%
5%
4%
4%
3%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
44
44
284
286
292
304
312
315
667
669
745
748
Reserves
767
965
1,703
1,995
2,871
4,073
5,963
7,199
10,311
11,890
16,422
18,984
Borrowing
2,878
4,783
7,120
7,639
8,613
10,335
7,030
5,991
6,299
5,479
11,660
13,872
Deposits
—
—
0
7,923
19,422
26,164
35,979
52,585
69,365
87,182
1,24,269
1,52,661
Other Liabilities
346
502
674
989
1,424
1,267
2,307
2,988
3,575
4,205
4,751
5,532
Total Liabilities
4,035
6,294
9,781
18,833
32,623
42,143
51,591
69,078
90,216
1,09,426
1,57,846
1,91,797
Fixed Assets
19
24
36
380
440
438
477
609
707
784
825
1,436
CWIP
0
0
240
6
7
10
5
14
33
67
87
0
Investments
140
232
2,150
3,051
7,162
10,668
10,815
15,306
20,072
27,133
37,848
44,794
Other Assets
3,877
6,038
7,355
15,396
25,014
31,027
40,294
53,149
69,404
81,441
1,19,086
1,45,567
Total Assets
4,035
6,294
9,781
18,833
32,623
42,143
51,591
69,078
90,216
1,09,426
1,57,846
1,91,797
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
-747
-1,938
-2,405
2,505
848
660
5,056
6,849
5,494
2,608
5,462
1,829
Investing
-23
-33
552
-1,890
-2,305
-1,267
-990
-4,753
-4,320
-4,855
-4,780
-5,090
Financing
782
1,964
2,448
521
1,436
2,237
-2,655
-948
2,323
-802
2,407
2,318
Net Cash Flow
12
-7
596
1,136
-21
1,629
1,412
1,147
3,497
-3,049
3,090
-943
Free Cash Flow
-756
-1,952
-2,662
2,341
724
569
4,916
6,568
5,190
2,270
5,205
1,027
CFO/OP
-139
-254
-250
284
58
35
197
220
122
52
72
28
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
ROE %
19%
23%
55%
14%
14%
18%
22%
16%
15%
13%
14%
14%

Shareholding Pattern

As of Mar 2026
FIIs 37.26%
DIIs 31.30%
Promoters 22.76%
Public 4.45%
Others 4.23%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Aug 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Apr 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
28.47%
28.41%
28.39%
28.33%
28.23%
28.21%
26.75%
25.58%
25.55%
25.54%
25.53%
25.49%
25.46%
25.45%
22.93%
22.92%
22.90%
22.88%
22.87%
22.85%
22.82%
22.79%
22.76%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.03%
0.03%
0.00%
41.65%
0.03%
39.37%
35.47%
39.58%
40.72%
39.35%
35.58%
37.68%
34.49%
36.45%
37.26%
DIIs
16.22%
17.00%
16.52%
15.73%
14.94%
14.44%
15.98%
17.23%
20.64%
20.63%
19.25%
19.56%
15.22%
22.78%
21.16%
18.44%
20.14%
21.78%
27.17%
28.87%
31.90%
31.27%
31.30%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
9.60%
10.29%
10.15%
10.56%
10.61%
10.75%
10.28%
8.26%
7.93%
7.66%
7.29%
7.03%
6.76%
7.59%
7.05%
5.37%
5.04%
4.90%
5.45%
5.67%
5.86%
5.04%
4.45%
Others
45.71%
44.30%
44.94%
45.38%
46.22%
46.60%
46.98%
48.92%
45.84%
46.14%
47.93%
6.29%
52.52%
4.81%
13.39%
13.69%
11.20%
11.09%
8.93%
4.92%
4.92%
4.45%
4.23%
No. of Shareholders
1,14,569
1,48,324
1,44,197
1,42,821
1,49,884
1,70,471
1,86,469
1,88,507
1,79,082
1,70,109
1,63,552
1,59,037
1,55,660
2,30,172
2,30,378
1,95,762
1,74,101
1,89,495
1,92,987
1,90,119
1,91,508
1,81,635
1,67,443

Documents

1
Concall - Aug 2017 Aug 2017
2
Concall - Oct 2017 Oct 2017
3
Concall - Jan 2018 Jan 2018
4
Concall - Apr 2018 Apr 2018
5
Concall - Aug 2018 Aug 2018

Frequently Asked Questions about AU Small Finance Bank Ltd

What does AU Small Finance Bank Ltd do?
AU Small Finance Bank Limited is engaged in providing a range of banking and financial services including retail banking, wholesale banking, treasury operations and other services. [1]
Where is AU Small Finance Bank Ltd (AUBANK) listed?
AU Small Finance Bank Ltd is listed on the Indian stock exchanges. It is listed on NSE: AUBANK and BSE: 540611. You can view its live share price, financials, and ratios on Tapetide.
Which sector does AU Small Finance Bank Ltd belong to?
AU Small Finance Bank Ltd operates in the Financial Services sector within the Banks industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of AU Small Finance Bank Ltd?
AU Small Finance Bank Ltd has a market capitalisation of approximately ₹79487.63 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of AU Small Finance Bank Ltd?
The Price-to-Earnings (PE) ratio of AU Small Finance Bank Ltd is 29.23. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of AU Small Finance Bank Ltd?
Over the past 52 weeks, AU Small Finance Bank Ltd has traded between a low of ₹682.15 and a high of ₹1,079.55. This range helps investors understand the stock's price volatility and recent trading levels.
Does AU Small Finance Bank Ltd pay dividends?
Yes, AU Small Finance Bank Ltd has a dividend yield of 0.09%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of AU Small Finance Bank Ltd?
AU Small Finance Bank Ltd has a Return on Equity (ROE) of 38.28%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research AU Small Finance Bank Ltd on Tapetide?
On Tapetide, you can view AU Small Finance Bank Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

AU Small Finance Bank Limited is engaged in providing a range of banking and financial services including retail banking, wholesale banking, treasury operations and other services. [1]

Website aubank.in
CEO Mr. Sanjay Agarwal C.A.
Employees 50,946
Listed 2017-07-10
Face Value ₹ 10
Issued Size 74,69,32,077

Explore More

More in Financial Services → FII DII Data Stock Screener Nifty 50 Heatmap F&O Ban List