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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The lender’s ho-hum ride on the stock market points at investor ire over its failure to move on getting a universal banking licence.
Something is not quite right at AU Small Finance Bank.
It has seen its stock rise 11.6% in the past year, at a time when shares of two of its peers—Suryoday SFB and Ujjivan SFB—have more than doubled, while another peer—Equitas SFB—has seen its stock go up over 84%. Besides, the AU stock has seen 25,020 retail shareholders exit between October 2022 and June 2023.
Now that stands in sharp contrast with its operating performance. In the small finance bank segment, AU is doing way better than its peers. Its closest rival has a balance sheet that’s a third of …
Lenders stand to gain a lot more than borrowers in the current challenging market environment
The central bank’s shift to a 100% collateral requirement threatens to erode leverage, reduce volumes and force a consolidation across prop desks.
High returns, RBI-regulated comfort, and easy withdrawals drew investors in. Now, with repayments drying up, the fintech platform, its NBFC partner, and the regulator are pointing fingers—leaving customers to chase their own money.
