Strategic Shift to Mumbai

In a significant move, AU Small Finance Bank has announced the relocation of its corporate headquarters from Jaipur to Mumbai. This decision follows the Reserve Bank of India's (RBI) in-principle approval for the bank's transition into a full-fledged universal bank.

Non-Operative Holding Company Structure

The bank's promoters will transfer their shares to a non-operative holding company (NOHC), a condition set by the RBI for the upgrade. Sanjay Agarwal, the founder, MD & CEO of AU Small Finance Bank, views this structure as beneficial for expanding into other financial services sectors.

Future Prospects

"This structure is far better for me because it allows me to experiment on the other financial services too," Agarwal stated. He also mentioned that any tax issues arising from the share transfer should be manageable, highlighting the bank's readiness for this new chapter.