HDFC Mutual Fund raises stake in AU Small Finance Financial institution; inventory rebounds

Shares of AU Small Finance Financial institution recovered from the day’s low on Friday, February 21, after HDFC Mutual Fund elevated its stake within the non-public sector lender. The fund acquired 50,86,927 shares, representing 0.68 % of the financial institution’s fairness, bringing its complete holding to 4,10,84,599 shares or 5.52 % of AU Small Finance Financial institution’s complete fairness share capital. The acquisition was executed by means of the open market.

HDFC Mutual Fund’s Rising Stake

Previous to this transaction, HDFC Mutual Fund, together with Individuals Performing in Live performance (PACs), held 3,59,97,672 shares, accounting for 4.84 % of the corporate’s paid-up fairness share capital. With the newest acquisition, the fund’s holding surpassed the 5 % threshold, necessitating disclosure underneath SEBI’s Substantial Acquisition of Shares and Takeovers (SAST) Laws, 2011.

The acquisition was carried out underneath HDFC Mutual Fund and HDFC Trustee Firm Restricted A/c, with investments unfold throughout numerous schemes, together with: HDFC BSE 500 ETF, HDFC BSE 500 Index Fund, HDFC Arbitrage Fund, HDFC NIFTY Financial institution ETF, HDFC Banking & Monetary Providers Fund, HDFC Capital Builder Worth Fund, HDFC Balanced Benefit Fund, HDFC Massive and Mid Cap Fund, HDFC NIFTY LARGEMIDCAP 250 INDEX FUND, HDFC NIFTY MIDCAP 150 ETF, HDFC NIFTY MIDCAP 150 INDEX FUND, HDFC Multi Cap Fund, HDFC NIFTY500 MULTICAP 50:25:25 INDEX FUND, and HDFC Mid-Cap Alternatives Fund

This funding aligns with HDFC Mutual Fund’s strategic positioning within the monetary sector and alerts confidence in AU Small Finance Financial institution’s long-term progress trajectory.

Inventory Value Motion

Following the acquisition, AU Small Finance Financial institution’s inventory rebounded sharply. In early commerce, the inventory fell practically 2 % to its intraday low of ₹522 however later surged round 3 % to hit ₹539 at its excessive.

Over the previous yr, the inventory has declined by 9 %. Up to now in February 2025, it has dropped 11 %, following a 7.5 % acquire in January.

Monetary Efficiency Highlights

AU Small Finance Financial institution reported a web revenue of ₹528.45 crore for the October-December quarter of FY25 (Q3FY25), marking a 41 % year-on-year progress from ₹375.25 crore in Q3 FY24. Nonetheless, sequentially, web revenue declined by 7.5 % from ₹571.2 crore in Q2 FY25.

The financial institution’s web curiosity earnings (NII) surged 53 % year-on-year to ₹2,022.5 crore in Q3 FY25. Nonetheless, asset high quality deteriorated barely, with web NPA rising to 0.91 % from 0.75 % within the earlier quarter. Equally, gross NPA climbed to 2.31 % from 1.98 % in Q2 FY25.

Whole earnings for the quarter stood at ₹4,731.89 crore, reflecting a 49 % year-on-year progress from ₹3,178.05 crore in Q3 FY24.

AU Small Finance Financial institution acknowledged financial headwinds, stating, “After seeing some pick-up through the festive season, financial momentum was subdued through the latter a part of Q3. Nonetheless, the general atmosphere stays comparatively higher than H1 FY25. Liquidity remained in deficit for many of Q3, resulting in constant strain on rates of interest and deposit progress. Unsecured advances, particularly microfinance (MFI), proceed to be in a corrective part throughout the business.”

The newest stake improve by HDFC Mutual Fund underscores continued institutional curiosity in AU Small Finance Financial institution. Traders might be intently watching the financial institution’s upcoming quarters to gauge its efficiency amid the evolving financial panorama.

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