AU Bank announced that Temasek, via its wholly-owned subsidiary Camas Investments Pte. Ltd, has invested Rs. 525 Crores towards conversion of their 1,01,04,364 warrants. Pursuant to this conversion Temasek has firmed up their stake at 4.8% in AU Bank.
This is a major development for the Bank as post this transaction Bank's Net Worth would increases to more than INR 4000 Crores, a cut-off threshold level for government business. at few places. Moreover, it will significantly aid AU Bank's capital adequacy and core tier 1 capital which was at healthy levels of 19.7% and 16.7% respectively as on 30th September 2019. Additionally, both the net worth and capital adequacy is expected to further improve as and when it divests its investment in a leading housing finance company currently valued around INR ~950 Crores.
Headquartered at Jaipur Rajasthan, AU had started its financial inclusion journey way back in the year 1996. For past 24 years it has been serving the unserved and underserved segments and it has built a granular portfolio of secured retail assets of nearly Rs. 28,000 Crores. Post becoming a small finance bank in April 2017, it has grown quite fast and with more than 600 touch points across 11 states, AU Bank 's total business (Cumulative Advance and Deposits) crossed more than INR 45,000 Crores in first 10 quarter of its operations while maintaining granularity and stable asset quality. AU Bank has set its sights set on becoming a full-fledged Universal Bank once it completes its first five years as a small finance bank.
Commenting on the occasion and overall performance, Mr. Sanjay Agarwal, MD & CEO of AU Bank said, "The completion of Temasek's investment is reflection of the uniqueness of our secured retail and steadily growing granular deposit franchise, our stable portfolio quality, our margins and growth headroom. We are extremely thankful to Temasek for once again reposing their trust in us amidst a challenging macro environment", he said.
Shares of AU Small Finance Bank Ltd was last trading in BSE at Rs.795.1 as compared to the previous close of Rs. 799.3. The total number of shares traded during the day was 12690 in over 1564 trades.
The stock hit an intraday high of Rs. 801.05 and intraday low of 791.9. The net turnover during the day was Rs. 10120418.