Buy AU Small Finance Bank stock before 10th June in order to be eligible for bonus shares

8 Jun 2022 , 01:02 PM

On 26^th April 2022, AU Small Finance Bank approved a 1:1 ratio bonus issue. This mean that till the record date whoever owns a share of the company will be provided with an additional share. So if you purchase the stock by 9^th June, you will be on the record of shareholders for the purpose of receiving the bonus shares.

The move to issue bonus share is part of their celebration of completing 5 years in the banking business. The Indian stock exchanges have been told that the record date for bonus share issuance is June 10, 2022. This means that shareholders who own the shares of the company as on 10^th June will be eligible for bonus shares. AU Small Finance Bank reported a 105 percent increase in net profit to 346 crores in
Q4FY22, owing to higher interest margins. The bank, also reported an 88 percent increase in net profit to 1130 crore in FY22, compared to 600 crores in FY21 . The net interest margin of AU Small Finance Bank grew to 6.3 percent, up from 5.7 percent. Net interest margin is the difference between the interest that banks pay on the deposits that they take and the interest that they earn on the loans that they give.

The small lender’s non-performing assets (NPA) fell to 2% in Q4FY22, down from 4.30 % in Q4FY21. In 2022. AU Small Finance Bank paid a dividend of Rs 10 per equity share for FY22.