Subscribe to AU Small Finance Bank: HEM Securities

Subscribe to AU Small Finance Bank: HEM Securities

AU Small Finance Bank Co is a small finance bank (“SFB”) that has recently transitioned from a prominent, retail focused non-banking finance company (“NBFC”), which primarily served low and middle-income individuals and businesses that have limited or no access to formal banking and finance channels. Co received a license from the Reserve Bank of India to set up an SFB on December 20, 2016 and co was the only NBFC categorized as an asset finance company to obtain such license. As an NBFC, co operated in three business lines: vehicle finance; micro, small and medium enterprises (“MSMEs”) loans; and small and medium enterprises (“SMEs”) loans. Company commenced operations in 1996 in Jaipur, Rajasthan and was registered as an NBFC with the RBI in 2000. Bank’s asset product offerings include working capital facilities, gold loans, agriculture related term loans, Kisan credit cards for farmers and loans against securities. Co is bringing offer for sale of upto 53,422,169 Equity Shares.

Reasons to “Subscribe”
Bank adopted a strategy of contiguous expansion across re-gions and as of March 31, 2017, bank conducted its operations through 301 NBFC branches spread across 10 states and one union territory in India, with significant presence in the states of Rajasthan, Gujarat, Maharashtra and Madhya Pradesh and employed 8,515 personnel serving 280,349 active loan ac-counts. The credit penetration of Gujarat, Madhya Pradesh and Rajasthan is below average, while the credit penetration of Ma-harashtra is above average (Source: CRISIL Inclusix Report, June 2015), thus offering bank significant growth potential.

As of May 31, 2017, bank conducted its operations through 269 branches, 121 asset centers, one central processing center and 10 offices. In addition, bank plan to set up an additional 162 branches and seven central processing centers during the financial year 2018.

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