India's AU Small Finance Bank hits 1-month low; Nomura cuts to 'reduce'

AU Small Finance Bank

27/01/2025 05:56

** Shares of India's AU Small Finance Bank  AUFI.NS  fall
8.5% to one-month low of 544 rupees; worst hit among Nifty Bank
 .NSEBANK 
    ** Nomura downgrades stock to "reduce" from "neutral" amid
deterioration in asset quality and sharp decline in NIMs
    ** Brokerage lowers PT to 500 rupees from 580 rupees earlier
    ** "While we were already building in higher credit costs of
1.7%-1.5% over FY25-FY27, we now increase it further to
1.85%-1.7%," - Nomura
    ** Bank's net profit rose 40.8% to 5.28 billion rupees
($61.1 million) for December quarter; gross NPA rose to 2.31%
from 1.98%a year earlier 
    ** AUFI management cuts FY25 loan growth guidance to 20%
from 25%
    ** Analysts' avg rating on stock is "buy", median PT 650
rupees - data compiled by LSEG
    ** Stock fell 29% in 2024, compared to 5.3% rise in
 .NSEBANK 

 (Reporting by Vivek Kumar M)
 ((VivekKumar.M@thomsonreuters.com))