India's AU Small Finance Bank rises; Morgan Stanley hikes PT

AU Small Finance Bank

26/09/2025 06:26

** India's AU Small Finance Bank AUFI.NS rises 2.14% to 757.5 rupees

** Morgan Stanley maintains "overweight" rating, raises PT to 1,000 rupees

** Says, AUFI is brokerage's only overweight rating among mid-sized private banks

** Anticipates an acceleration in loan growth, improvement in net interest margin by 30-50 bps amid improving macro environment and AUFI's asset mix

** Says, long term growth potential has also improved after the in-principal universal banking licence issued to co by the central bank

** Expects earnings growth of ~30% during FY26-FY28

** AUFI rated 'hold' on avg by 24 analysts; with median PT at 773 rupees, as per data compiled by LSEG

** YTD, stock up ~35%

 (Reporting by Ananta Agarwal in Bengaluru)

 ((Ananta.Agarwal@thomsonreuters.com))