New Delhi, March 1 -- AU Small Finance Bank has cemented its position as a market leader, with a strong track record spanning over two decades and assets exceeding Rs.1 trillion. Its extensive presence across the country, particularly in semi-urban and rural areas, has bolstered its deep distribution network. The bank has also applied for a universal banking licence, a move expected to strengthen its market standing.

However, despite its solid fundamentals, AU's stock has remained rangebound for nearly four years, weighed down by industry headwinds. Recent stress in unsecured lending has added to the challenges.

Read this | MFI stress may weigh on small finance banks' loan growth, asset quality in short term

Yet, the bank appears well-...