RBI Grants In-Principle Approval to AU Small Finance Bank for Universal Bank Transition This move marks a significant development for the Jaipur-based bank, which will now be able to offer a broader spectrum of financial services under fewer restrictions.
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The Reserve Bank of India has granted in-principle approval to AU Small Finance Bank Ltd for its transition into a universal bank. This move marks a significant development for the Jaipur-based bank, which will now be able to offer a broader spectrum of financial services under fewer restrictions.
Founded in 1996 by Sanjay Agarwal as Au Financiers, the bank started as a retail-focused non-banking finance company. It was granted a small finance bank license in 2015 and commenced operations in April 2017. Since then, AU Small Finance Bank has expanded its presence across 21 states and four union territories, serving over 1.15 crore customers through 2,505 banking touchpoints. It is supported by a workforce of 53,000 employees.
As of June 30, 2025, the bank reported shareholders' funds of INR 17,800 crore. Its deposit base stood at INR 127,696 crore, while its loan portfolio reached INR 117,624 crore.
The bank's total balance sheet exceeded INR 1.60 lakh crore. On Thursday, AU Bank shares closed at INR 744 on the Bombay Stock Exchange, registering a gain of 1.27 percent and valuing the bank at INR 55,458 crore.
According to the Reserve Bank, small finance banks seeking to become universal banks must fulfill several criteria. These include a satisfactory performance record over five years, listing on a recognised stock exchange, a minimum net worth of INR 1,000 crore, compliance with capital adequacy norms, profitability in the last two financial years, and non-performing asset levels within specified limits.
