AU Small Finance Bank trades in green, up over 1 per cent on buyback reports

AU Small Finance Bank share price: AU Small Finance Bank experienced a substantial transfer of shares in the pre-market trading session on Monday. Approximately 1.3 crore shares changed hands, valued at ₹804 crore, on August 26, as per a report by CNBC-TV18. The identity of the buyers and sellers remains undisclosed.

AU Small Finance's share price was trading in the green, up 1.45 per cent at ₹634.85 on August 26, at 10:47 am on NSE. AU Small Finance enjoys a market capitalisation of 47,186.51 crore. As per NSE, the stock last hit its 52-week high on January 9, 2024, at ₹813.40.

The shares were exchanged at an average price of ₹630 per share, resulting in a total transaction value of ₹804 crore. While the identities of the buyers and sellers involved in this large-scale transaction remain undisclosed, the move has attracted attention in financial circles, as per the report.

Livemint could not independently verify this news development.

At the end of the June quarter, the promoters of AU Small Finance Bank held a 22.92 per cent stake in the company. This recent share movement comes against the backdrop of the bank's stock performance, which has seen a 20 per cent decline since the beginning of the year, the report added.

Despite the downward trend, AU Small Finance Bank's shares showed a slight uptick in today's trading session. The stock gained up to 0.63 per cent, reaching ₹629.75 per share.

AU Small Finance Bank (AUSFB) is a small finance institution concentrating on retail banking. It provides a variety of services such as Vehicle Finance, SME loans, Home Loans, and Business Banking. The bank's primary focus is on serving low and middle-income individuals and businesses that have limited or no access to traditional banking services.

Q4 advances and deposits

In the March quarter, AU Small Finance Bank achieved a substantial 25-26 per cent increase in both advances and deposits. Despite facing a tough macroeconomic environment with fierce competition for deposit collection and persistent liquidity shortages, the bank experienced a slight improvement from the previous quarter. As per a Mint report, the credit market remained robust, bolstered by strong activity and consistent demand across various sectors.