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Equity Insights Elite on X
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AU Small Finance Bank hasn't given much returns over the last 3-4 years, especially for those who invested since February 2020 It began trading at more than 8 times P/B ratio and, at one point, reached went over P/B 10 times For a Small Finance Bank, these exorbitant P/B ratios don't seem justified
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  • AU Small Finance Bank hasn't given much returns over the last 3-4 years, especially for those who invested since February 2020
  • It began trading at more than 8 times P/B ratio and, at one point, reached went over P/B 10 times
  • For a Small Finance Bank, these exorbitant P/B ratios don't seem justified, considering that it's generating an approximate 15% return on equity (ROE).
  • valuation has since become more rational, currently trading at a P/B ratio of 4
  • asset quality remains strong at a 0.55% NPA ratio

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