- AUBANK has been navigating well through the economic slowdown and delivering healthy balance sheet growth (45% YoY growth in 2QFY20).
- After incurring significant expenses to put the building blocks in place as it transitioned into a small finance bank, the earnings momentum is gaining pace.
- AUBANK has stepped up its focus on the used vehicle segment to
(i) combat the slowdown in new vehicles and
(ii) capitalize on its long-standing vintage in used vehicle financing, which offers higher risk-adjusted yields and profitability.
The bank has been expanding its penetration in the used distribution channel. AXSB, HDFCB, SBI and AUBANK are active in car financing. HDFCB and SBIN together account for 50% of the total cars financed, while AUBANK is also gaining share post liquidity constraints for NBFC vehicle financiers
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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