AU Small Finance Bank shares jump 7%, after company issues clarification on recent managerial exits

Shares of AU Small Finance Bank reversed the trend and jumped almost 7 per cent to Rs 1207.85 per share on the BSE intraday trade on Wednesday. The stock on Tuesday fell 13 per cent after the reports of the internal audit head’s exit.

After market hours on Tuesday, the AU Small Finance Bank’s management clarified on the recent exits in the bank, including on the resignation of internal audit head, Sumit Dhir. The bank through an exchange filing on August 31, 2021, had said that Dhir resigned following personal reasons.

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The filing states, “Mr. Sumit Dhir has expressed his desire to move back to his hometown Delhi due to changes in his personal circumstances following Covid second wave. He continues to be on our rolls as Head of Internal Audit and we remain in discussions with him for possible retention.”

“The retention discussions are as per our usual HR (human resource) practices and strategy which we follow for the entire senior management team to manage business continuity, confidentiality, and competitiveness,” the filing further reads, 

Post hitting a day’s high, the counter at around 03:05 has been trading at Rs 1155.45 per share, up over 2 per cent on the BSE, as against a 0.2 per cent decline in BSE Sensex at 57,412.66. 

Earlier last week, the bank's Chief Risk Officer Alok Gupta had also resigned citing personal reasons, following this, the bank named Deepak Jain in Gupta’s place. 

The bank in filing on Sunday said, “The Board of Directors of the bank on August 28, 2021, approved the appointment of Mr. Deepak Jain, who is currently serving as Chief Operating Officer and Key Management Personnel as Chief Risk Officer of the Bank for a period of three years, with effect from September 1, 2021.” 

AU Small Finance Bank last evening also clarified that it has a full-fledged Internal Audit team with approximately 50 members and 7 external concurrent audit firms which have remained stable over the last four years.