The Reserve Bank of India has decided to grant ‘in-principle’ approval to AU Small Finance Bank Ltd (AUSFB) for transitioning from a small finance bank (SFB) to a universal bank.
The universal bank status will allow AU Bank to offer a wide range of financial services and products under one roof without many restrictions unlike a small finance bank.
Sanjay Agarwal founded Au Financiers in 1996. Headquartered in Jaipur, Rajasthan, the retail-focused non-banking finance company got the small finance bank (SFB) license in 2015 and it started operations in April 2017.
AUSFB serves over 1.15 crore customers through 2,505 banking touchpoints across 21 states and 4 union territories, supported by a workforce of 53,000. As of June 30, 2025, the bank’s shareholders’ funds stood at Rs 17,800 crore, with a deposit base of Rs 127,696 crore, loan portfolio of Rs 117,624 crore, and a balance sheet of over Rs 1.60 lakh crore.
AU Bank shares closed at Rs 744, up by 1.27 per cent, on the BSE on Thursday, valuing the bank at Rs 55,458 crore.
According to the RBI, the eligibility criteria for an SFB to transition into a universal bank include scheduled status with a satisfactory track record of performance for a minimum period of five years, listing on a recognised stock exchange and minimum net worth of Rs 1,000 crore as at the end of the previous quarter (audited). They should also meet the prescribed CRAR requirements for SFBs, having a net profit in the last two financial years and gross NPA and net NPA of less than or equal to 3 per cent and 1 per cent respectively in the last two financial years.
© The Indian Express Pvt Ltd
.