AU Small Finance Bank's Historic Approval

In a landmark decision, the Reserve Bank of India (RBI) has granted AU Small Finance Bank (SFB) an in-principle approval to transition into a universal bank. This marks the first such approval in a decade, following Bandhan and IDFC in 2015.

The Journey of AU Small Finance Bank

Founded in 1996 by Sanjay Agarwal as AU Financiers, an NBFC in Jaipur, AU became an SFB in 2015. With backing from Warburg Pincus and Temasek, it has grown to become the largest SFB by assets and the first to seek universal status under RBI's new framework.

What This Means for AU and the Banking Sector

This approval is a testament to AU's robust business model, governance, and commitment to financial inclusion. It allows AU to offer a full range of banking services, making it a full-fledged commercial bank without the restrictions faced by SFBs and LABs.