AU Small Finance Bank: Difference between revisions

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[https://www.bloomberg.com/profile/company/AUBANK:IN]{{short description|Indian small finance commercial bank}}
{{short description|Indian small finance commercial bank}}
{{Use Indian English|date=August 2017}}{{Use dmy dates|date=August 2017}}
{{Use Indian English|date=August 2017}}{{Use dmy dates|date=August 2017}}
{{Infobox company
{{Infobox company
| name = AU Small Finance Bank Limited
| name = AU Small Finance Bank Limited
| image = File:AU-Bank-new-logo-for-GBM 1024X1024 (cropped).png
| logo_size = 250px
| logo_size = 250px
| image = Aubank.svg
| type = [[Public company|Public]]
| type =
| traded_as = {{plainlist|
| traded_as = {{BSE|540611}}<br />{{NSE|AUBANK}}
*{{BSE|540611}}
| industry = [[Banking]], [[financial services]]
*{{NSE|AUBANK}}}}
| foundation = 1996
| ISIN = INE949L01017
| founder = Sanjay Agarwal (managing director and CEO of AU Small Finance Bank)
| industry = {{plainlist|
| location = [[Jaipur, Rajasthan]], India
*[[Banking]]
*[[Financial services]]}}
| foundation = {{start date and age|1996}}
| founder = [[Sanjay Agarwal]]
| location = {{ubl|[[Jaipur]], [[Rajasthan]], India (registered office)|[[Bandra-Kurla Complex|BKC]], [[Mumbai]], India (corporate office)}}
| area_served = India
| area_served = India
| key_people = Raj Vikash Verma (Chairman)<br />Sanjay Agarwal <br />(MD & CEO)
| key_people = {{ubl|[[H R Khan]] (Chairman)<ref>{{cite news |last1=Shaikh |first1=Subhana |title=RBI Approves Re-Appointment Of HR Khan As Part-Time Chairman Of AU Small Finance Bank |url=https://www.ndtvprofit.com/economy-finance/rbi-approves-re-appointment-of-hr-khan-as-part-time-chairman-of-au-small-finance-bank |access-date=22 July 2025 |work=NDTV Profit |date=19 December 2024 |language=en}}</ref>|[[Sanjay Agarwal]] (MD & CEO)}}
| revenue = ₹3,817 crores
| revenue = {{increase}} {{INRconvert|9293|c}} (FY23)<ref name="fy23"/>
| revenue_year = 2021
| profit = {{increase}} {{INRconvert|1427|c}} (FY23)<ref name="fy23">{{cite news |title=AU Small Finance Bank Ltd reports net profit of Rs. 424.63 crores in Q4 FY2023 |url=https://www.equitybulls.com/category.php?id=330464 |access-date=27 June 2023 |work=EquityBulls |date=25 April 2023 |archive-date=27 June 2023 |archive-url=https://web.archive.org/web/20230627182102/https://www.equitybulls.com/category.php?id=330464 |url-status=live }}</ref>
| profit = ₹1,171.crores  
| equity = {{increase}} {{INRconvert|6275|c}} (2021)
| profit_year = 2021
| num_employees = 59000+
| equity = ₹6,275 crores
| rating = [[CRISIL]] AA+ Stable<ref>{{Cite web|url=https://www.crisil.com/en/home/our-businesses/ratings/company-factsheet.html|title=Company Factsheet|website=CRISIL|access-date=2019-03-28|archive-date=28 March 2019|archive-url=https://web.archive.org/web/20190328113021/https://www.crisil.com/en/home/our-businesses/ratings/company-factsheet.html|url-status=live}}</ref><ref>{{Cite web|url=https://www.icra.in/Rationale/ShowRationaleReport/?Id=71264|title=ICRA Report|access-date=28 March 2019|archive-date=28 March 2019|archive-url=https://web.archive.org/web/20190328131012/https://www.icra.in/Rationale/ShowRationaleReport/?Id=71264|url-status=live}}</ref>
| equity_year = 2021
| website = {{Url|https://www.au.bank.in|Official website}}
| num_employees = 22,484
| num_employees_year = 2021
| website = {{url|https://www.aubank.in}}
}}
}}
'''AU Small Finance Bank Limited''' is an Indian scheduled <ref>{{Cite web|url=https://www.aubank.in/sites/default/files/investor-presentation-Q3FY19.pdf|title=AU Bank Investor Presentation Q3FY19}}</ref> [[commercial bank]] that was founded as vehicle finance company AU Financiers (India) Ltd in 1996 and converted to a [[small finance bank]] on 19 April 2017.<ref name=economictimes>{{cite web|last1=Mudgill|first1=Amit|title=AU Small Finance Bank IPO; here's what 8 brokerages say|url=https://economictimes.indiatimes.com/markets/stocks/news/au-small-finance-bank-ipo-heres-what-8-brokerages-say/articleshow/59339126.cms|website=The Economic Times|access-date=15 March 2018|date=28 June 2017}}</ref>


AU Small Finance Bank has a long-standing track record of over two decades of being a retail-focused and customer-centric institution; serving low and middle income individuals and micro / small businesses that have limited or no access to formal banking and finance channels. The Bank offers a comprehensive suite of loan, deposit & payment products and services.<ref>{{Cite web|url=https://www.aubank.in/sites/default/files/investor-presentation-Q3FY19.pdf|title=AU Bank Investor Presentation Q3FY19}}</ref>
'''AU Small Finance Bank Limited''' is an Indian [[Scheduled Banks (India)|scheduled commercial]] [[small finance bank]],<ref name="AU Bank Investor Presentation Q3FY19">{{Cite web|url=https://www.au.bank.in/sites/default/files/investor-presentation-Q3FY19.pdf|title=AU Bank Investor Presentation Q3FY19|access-date=28 March 2019|archive-date=28 March 2019|archive-url=https://web.archive.org/web/20190328113019/https://www.au.bank.in/sites/default/files/investor-presentation-Q3FY19.pdf|url-status=live}}</ref> headquartered in Mumbai. It was founded in 1996 as a vehicle finance company and was converted into a small finance bank in 2017. That same year, it got listed on [[National Stock Exchange of India|National Stock Exchange]] (NSE) and [[Bombay Stock Exchange]] (BSE).<ref>{{Cite web|url=https://www.fortuneindia.com/fortune-500/company/au-small-finance-bank?year=%20%202019|title=AU Small Finance Bank – Fortune 500 List 2019 – Fortune India|website=[[Fortune India]]}}</ref>
 
AU Small Finance Bank ranked 355 in the list of [[Fortune India 500]] (2019) companies, with annual revenue of {{INRConvert|3410.87|c|0}} and Total B/S Assets of {{INRConvert|31198.68|c}}.<ref>{{Cite web|url=https://www.fortuneindia.com/fortune-500/company/au-small-finance-bank?year=%20%202019|title=AU Small Finance Bank - Fortune 500 List 2019 - Fortune India|website=[[Fortune India]]}}</ref> Its full market capitalization at FY18 was ₹17,655 crores (US$2.71 billion). AU Bank had Gross Asset Under Management of Rs. 21,765 Cr, Total Deposits of Rs. 14,686 Cr, Net Worth of Rs. 3,035 Cr and Gross NPA and Net NPA of 2.1% and 1.3% respectively as of December 31, 2018. The Bank is adequately capitalized with Total CRAR of 19.0% and Tier-I CRAR of 15.5%.<ref>{{Cite web|url=https://www.aubank.in/sites/default/files/investor-presentation-Q3FY19.pdf|title=AU Bank Investor Presentation Q3FY19}}</ref> AU Bank enjoys long term credit rating of “AA-/Stable” from CRISIL Ratings,<ref>{{Cite web|url=https://www.crisil.com/en/home/our-businesses/ratings/company-factsheet.html|title=Company Factsheet|website=CRISIL|access-date=2019-03-28}}</ref> ICRA Ratings,<ref>{{Cite web|url=https://www.icra.in/Rationale/ShowRationaleReport/?Id=71264|title=ICRA Report}}</ref> India Ratings<ref>{{Cite web|url=https://www.indiaratings.co.in/Issuers?issuerID=159&issuerName=AU-Small-Finance-Bank-Limited|title=India Ratings and Research Private Limited : India's Most Respected Credit Rating and Research Agency www.indiaratings.co.in|last=Ratings)|first=India Ratings and Research Private Limited India|language=en|access-date=2019-03-28}}</ref> & CARE Ratings.<ref>{{Cite web|url=http://www.careratings.com/upload/CompanyFiles/PR/AU%20Small%20Finance%20Bank-11-09-2018.pdf|title=Care Ratings for AU Bank}}</ref>


==History==
==History==
The company was founded by Sanjay Agarwal (managing director and CEO of AU Small Finance Bank) as a private limited company, and publicly listed in an IPO on 29 June 2017.<ref name=economictimes /> A merit holder Chartered Accountant and a first generation entrepreneur, he holds ~28.5% stake in the Bank. He is supported by a team of 22,484 employees.
The company was founded in 1996 by chartered accountant [[Sanjay Agarwal]] as AU Financiers (India) Ltd, a vehicle finance company and an [[NBFC and MFI in India|NBFC]]. It converted into a full-fledged [[small finance bank]] on 19 April 2017.<ref name=economictimes>{{cite web|last1=Mudgill|first1=Amit|title=AU Small Finance Bank IPO; here's what 8 brokerages say|url=https://economictimes.indiatimes.com/markets/stocks/news/au-small-finance-bank-ipo-heres-what-8-brokerages-say/articleshow/59339126.cms|website=The Economic Times|access-date=15 March 2018|date=28 June 2017|archive-date=15 March 2018|archive-url=https://web.archive.org/web/20180315195921/https://economictimes.indiatimes.com/markets/stocks/news/au-small-finance-bank-ipo-heres-what-8-brokerages-say/articleshow/59339126.cms|url-status=live}}</ref>


AU Small Finance Bank is listed on NSE & BSE with market capitalization of ~Rs. 30,000 crore.<ref>{{Citation|chapter=The First Years of the World Bank (1946–62)|pages=[https://archive.org/details/worldbankcritica0000tous/page/17 17–29]|publisher=Pluto Press|isbn=9781849643764|doi=10.2307/j.ctt18fsbxs.9|title=The World Bank|year=2015|chapter-url=https://archive.org/details/worldbankcritica0000tous/page/17}}</ref> On its first day of trading, the stock rose 51% to be the most expensive bank in India based on price-to-book.<ref>{{cite web|last1=Babla|first1=Shraddha|title=After 51% Listing Gains, AU Small Finance Bank India's Most Expensive|url=https://www.bloombergquint.com/markets/2017/07/11/after-51-listing-gains-au-small-finance-bank-indias-most-expensive-bank|website=Bloomberg Quint|access-date=15 March 2018|language=en|date=11 July 2017}}</ref>
AU Small Finance Bank listed publicly through an IPO on 29 June 2017.<ref name=economictimes /><ref>{{Cite web|url=https://www.bseindia.com/stock-share-price/au-small-finance-bank-ltd/aubank/540611/|title=Stock Share Price &#124; Get Quote &#124; BSE|access-date=5 October 2021|archive-date=6 October 2021|archive-url=https://web.archive.org/web/20211006140657/https://www.bseindia.com/stock-share-price/au-small-finance-bank-ltd/aubank/540611/|url-status=live}}</ref><ref>{{cite web|last1=Babla|first1=Shraddha|title=After 51% Listing Gains, AU Small Finance Bank India's Most Expensive|url=https://www.bloombergquint.com/markets/2017/07/11/after-51-listing-gains-au-small-finance-bank-indias-most-expensive-bank|website=Bloomberg Quint|access-date=15 March 2018|language=en|date=11 July 2017|archive-date=16 March 2018|archive-url=https://web.archive.org/web/20180316023154/https://www.bloombergquint.com/markets/2017/07/11/after-51-listing-gains-au-small-finance-bank-indias-most-expensive-bank|url-status=live}}</ref> [[Private equity]] companies that provided [[venture capital]], including [[Warburg Pincus]] and [[International Finance Corporation]], divested their holdings after the listing.<ref>{{cite web|last1=Chatterjee|first1=Paramita|date=7 December 2017|title=PE Exits At An All-time High|url=http://businessworld.in/article/PE-Exits-At-An-All-time-High/07-12-2017-133980/|access-date=28 March 2018|website=BW Businessworld|language=en|archive-date=28 March 2018|archive-url=https://web.archive.org/web/20180328165608/http://businessworld.in/article/PE-Exits-At-An-All-time-High/07-12-2017-133980/|url-status=live}}</ref><ref>{{cite web|date=2 March 2018|title=High Stakes|url=https://www.outlookbusiness.com/the-big-story/lead-story/high-stakes-4211|access-date=28 March 2018|website=Outlook Business|archive-date=28 March 2018|archive-url=https://web.archive.org/web/20180328165400/https://www.outlookbusiness.com/the-big-story/lead-story/high-stakes-4211|url-status=live}}</ref>


In November 2017, the [[Reserve Bank of India]] added the bank to [[Scheduled Banks (India)|its schedule of commercial banks]], further improving the bank's growth prospects by reducing the cost of short-term funds and improving the bank's ability to provide services.<ref>{{cite web|last1=Srivats|first1=K.R.|title=AU Small Finance gets scheduled commercial bank status|url=https://www.thehindubusinessline.com/money-and-banking/au-small-finance-gets-scheduled-commercial-bank-status/article9939601.ece|website=The Hindu Business Line|access-date=15 March 2018|language=en|date=2 November 2017}}</ref>
In November 2017, the [[Reserve Bank of India]] added the bank to [[Scheduled Banks (India)|its schedule of commercial banks]].<ref>{{cite web|last1=Srivats|first1=K.R.|title=AU Small Finance gets scheduled commercial bank status|url=https://www.thehindubusinessline.com/money-and-banking/au-small-finance-gets-scheduled-commercial-bank-status/article9939601.ece|website=The Hindu Business Line|access-date=15 March 2018|language=en|date=2 November 2017|archive-date=7 February 2018|archive-url=https://web.archive.org/web/20180207011213/http://www.thehindubusinessline.com/money-and-banking/au-small-finance-gets-scheduled-commercial-bank-status/article9939601.ece|url-status=live}}</ref>


==Shareholding==
On 1 April 2024, AU Small Finance Bank completed the acquisition of Fincare Small Finance Bank through a [[stock swap]] merger, the first merger involving two small finance banks.<ref>{{Cite web |date=October 29, 2023 |title=Fincare SFB to merge with AU Small Finance Bank in all-share deal |url=https://www.business-standard.com/companies/news/fincare-sfb-to-merge-with-au-small-finance-bank-in-all-share-deal-123102900985_1.html |access-date=October 31, 2024 |website=www.business-standard.com |archive-date=19 April 2024 |archive-url=https://web.archive.org/web/20240419110053/https://www.business-standard.com/companies/news/fincare-sfb-to-merge-with-au-small-finance-bank-in-all-share-deal-123102900985_1.html |url-status=live }}</ref><ref>{{cite news |last1=Ray |first1=Atmadip |title=RBI approves AU Small Finance Bank acquisition of Fincare Small Finance Bank with effect from April 1 |url=https://economictimes.indiatimes.com/industry/banking/finance/rbi-approves-au-small-finance-bank-acquisition-of-fincare-small-finance-bank-with-effect-from-april-1/articleshow/108213476.cms |access-date=22 July 2025 |work=The Economic Times |date=4 March 2024}}</ref>


=== Institutional holding ===
On 7 August 2025, the Reserve Bank of India granted an in-principle approval to AU Small Finance Bank to transition into a [[universal bank]],<ref name=":0">{{Cite news |date=2025-08-07 |title=AU Small Finance Bank gets RBI nod to become a universal bank |url=https://timesofindia.indiatimes.com/business/india-business/au-small-finance-bank-gets-rbi-nod-to-become-a-universal-bank/articleshow/123171931.cms |access-date=2025-08-08 |work=The Times of India |issn=0971-8257}}</ref> making it the first small finance bank in India to receive such an approval.<ref>{{Cite news |date=August 8, 2025 |title=Business Standard |url=https://www.business-standard.com/markets/news/au-small-finance-bank-up-7-first-sfb-to-get-rbi-s-universal-bank-approval-125080800484_1.html}}</ref> It was also the first full-fledged banking license issued by the Reserve Bank of India in 11 years.<ref>{{Cite news |date=2025-08-07 |title=India's AU Small Finance Bank gets first universal banking licence in a decade |url=https://www.reuters.com/world/india/indias-au-small-finance-bank-gets-first-universal-banking-licence-decade-2025-08-07/ |access-date=2025-08-08 |work=Reuters |language=en}}</ref>
Over the years, the Bank has attracted marquee investors like IFC, Warburg Pincus, Temasek Holdings, Nomura, SBI MF, Kotak Mahindra MF, etc.<ref>{{Cite web|title=AU Bank Investor Presentation Q3FY19|url=https://www.aubank.in/sites/default/files/investor-presentation-Q3FY19.pdf}}</ref> [[Private equity]] companies that provided [[venture capital]], including [[Warburg Pincus]] and [[International Finance Corporation]], made partial exits for as much as nine times their original investment.<ref>{{cite web|last1=Chatterjee|first1=Paramita|date=7 December 2017|title=PE Exits At An All-time High|url=http://businessworld.in/article/PE-Exits-At-An-All-time-High/07-12-2017-133980/|access-date=28 March 2018|website=BW Businessworld|language=en}}</ref><ref>{{cite web|date=2 March 2018|title=High Stakes|url=https://www.outlookbusiness.com/the-big-story/lead-story/high-stakes-4211|access-date=28 March 2018|website=Outlook Business}}</ref>


=== Bharti SBM ===
== Operations ==
May 2020 - Bharti (SBM) Holdings Pvt. Ltd, a firm owned by [[Sunil Mittal]] family has acquired 0.79% for a consideration of INR100 crores.<ref>{{Cite web|title=Sunil Mittal's Firm Buys Stake In AU Small Finance Bank|url=https://www.moneycontrol.com/news/business/companies/au-small-finance-bank-promoter-sells-shares-worth-rs-100-crore-5273961.html|access-date=2021-03-18|website=Moneycontrol}}</ref>
AU Small Finance Bank has a network of 2,726 physical touchpoints in 21 states and 4 union territories, 59,872 staff, and a total customer base of about 1.25 crore as of 31 December 2025.<ref>{{Cite web |title=Investors and Stake holders - AU Small Finance Bank |url=https://www.au.bank.in/investors |access-date=2026-02-24 |website=www.au.bank.in |language=en}}</ref>


==Services==
== Controversies ==
Due to its history as a vehicle finance company, as of March 2018 almost all the loans made by AU Small Finance Bank were secured, unlike most small finance banks that have unsecured loans due to their background in [[microfinance]]. This provides lower yields (lower interest rates) than unsecured loans, so the bank has been particularly active in growing its deposits, as bank deposits have lower cost than other sources of funds. It has also sought to diversify into savings products like deposits, payment / transaction banking, [[Investment banking|distribution]] of third-party products, and additional loan products thereby positioning itself as a holistic financial products and services provider.<ref>{{Cite web|url=https://www.aubank.in/sites/default/files/investor-presentation-Q3FY19.pdf|title=AU Bank Investor Presentation Q3FY19}}</ref>
On 18 February 2026, AU Small Finance Bank was [[Haryana Government accounts fraud|de-empanelled]] by the [[Government of Haryana]] along with [[IDFC First Bank]].<ref>{{Cite news |last=Iyer |first=Archishma |date=23 February 2026 |title=De-empanelled by Haryana, AU Small Finance Bank opens probe, sends staff 'offduty' |url=https://www.moneycontrol.com/news/business/de-empanelled-by-haryana-au-small-finance-bank-opens-probe-sends-staff-offduty-13839206.html |access-date=24 February 2026 |work=[[Moneycontrol]]}}</ref> The state questioned the bank over suspected unauthorised transactions of about {{INRConvert|72|c|year=2026}}, including {{INRConvert|47|c|year=2026}} transferred in 14 transactions from a government account to a customer account.<ref>{{Cite web |last=Fernandes |first=Jocelyn |date=2026-02-23 |title=AU Small Finance Bank de-empanelment: What we know about ₹47 crore funds transfer, timeline, internal review details {{!}} Company Business News |url=https://www.livemint.com/companies/news/au-small-finance-bank-clarify-de-empanelment-haryana-govt-account-transactions-internal-review-assess-reasons-idfc-first-11771811075341.html |access-date=2026-02-24 |website=mint |language=en}}</ref> The bank said the transactions were properly authorised and denied any wrongdoing.<ref>{{Cite web |last=Sarkar |first=Subhojit |date=2026-02-23 |title=AU Small Finance Bank denies wrongdoing after Haryana govt de-empanels it over alleged fraud |url=https://www.fortuneindia.com/business-news/au-small-finance-bank-denies-wrongdoing-after-haryana-govt-de-empanels-it-over-alleged-fraud/130632 |access-date=2026-02-24 |website=Fortune India |language=en}}</ref> However, the bank has initiated an internal review, placed certain employees off duty pending the process.<ref>{{Cite news |date=2026-02-24 |title=AU Small Finance Bank begins internal probe after Haryana account fiasco |url=https://economictimes.indiatimes.com/industry/banking/finance/banking/au-small-finance-bank-begins-internal-probe-after-haryana-account-fiasco/articleshow/128727078.cms?from=mdr |access-date=2026-02-24 |work=The Economic Times |issn=0013-0389}}</ref>
 
==Footprint==
As on March 31, 2021, AU Small Finance Bank's distribution network comprises 744 Banking Touchpoints, 22,484 employees spread contiguously across 15 states and two Union Territories with over 2 million customers.
 
The bank has operations in 15 states and two [[union territory]], with [[Rajasthan]], [[Gujarat]], [[Maharashtra]] and [[Madhya Pradesh]] being key states.<ref name="CRISIL">{{cite web|title=Rating Rationale: AU Small Finance Bank Limited|url=https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/AU_Small_Finance_Bank_Limited_December_06_2017_RR.html|website=CRISIL|access-date=17 March 2018|date=6 December 2017}}</ref> It is one of the largest banks by number of locations in its home state of [[Rajasthan]].<ref>{{cite web|title=India Ratings Upgrades AU Small Finance Bank's NCDs to 'IND AA-'/Stable|url=https://www.indiaratings.co.in/PressRelease?pressReleaseID=30861&title=India-Ratings-Upgrades-AU-Small-Finance-Bank%E2%80%99s-NCDs-to-%E2%80%98IND-AA-%E2%80%99%2FStable|website=India Ratings and Research Private Limited|access-date=17 March 2018|language=en|date=23 February 2018}}</ref>


==See also==
==See also==
 
{{Portal|Banks}}
* [[Banking in India]]
* [[Banking in India]]
* [[List of banks in India]]
* [[List of banks in India]]
* [[Reserve Bank of India]]
* [[Small finance bank]]
* [[Indian Financial System Code]]
* [[Indian Financial System Code]]
* [[List of largest banks]]
* [[List of companies of India]]
* [[Make in India]]


==References==
==References==
{{reflist}}https://www.bloomberg.com/profile/company/AUBANK:IN
{{reflist}}
https://www.bseindia.com/xml-data/corpfiling/AttachHis/2728f0c7-829c-47b7-8e02-a8f70e37c0df.pdfhttps://www.bseindia.com/xml-data/corpfiling/AttachHis/2728f0c7-829c-47b7-8e02-a8f70e37c0df.pdf
 
== Further reading ==
*{{Cite report |url=https://www.bsssbhopal.edu.in/uploads/naac/criteria_1/students_projects/219%20Reshma%20Manoj.pdf |title=A STUDY ON FINANCIAL ANALYSIS OF SMALL FINANCE BANK |last=Manoj |first=Reshma |date=April 2021 |publisher=The Bhopal School of Social Sciences |access-date=26 March 2025}}


{{Nifty 200 companies}}
{{Nifty 200 companies}}
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[[Category:Companies listed on the Bombay Stock Exchange]]
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[[Category:Indian companies established in 1996]]
[[Category:Indian companies established in 1996]]
[[Category:Banks established in 1996]]
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[[Category:Companies listed on the National Stock Exchange of India]]
[[Category:Companies listed on the Bombay Stock Exchange]]

Latest revision as of 17:29, 2 March 2026


AU Small Finance Bank Limited
Traded as
ISININE949L01017
Industry
Founded1996; 30 years ago (1996)
Founder(s)Sanjay Agarwal
Headquarters
Area served
India
Key people
RevenueIncrease ₹9,293 crore (US$1.3 billion) (FY23)[2]
Increase ₹1,427 crore (US$200 million) (FY23)[2]
Total equityIncrease ₹6,275 crore (US$880 million) (2021)
Number of employees
59000+
RatingCRISIL AA+ Stable[3][4]
WebsiteOfficial website

AU Small Finance Bank Limited is an Indian scheduled commercial small finance bank,[5] headquartered in Mumbai. It was founded in 1996 as a vehicle finance company and was converted into a small finance bank in 2017. That same year, it got listed on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).[6]

History[edit | edit source]

The company was founded in 1996 by chartered accountant Sanjay Agarwal as AU Financiers (India) Ltd, a vehicle finance company and an NBFC. It converted into a full-fledged small finance bank on 19 April 2017.[7]

AU Small Finance Bank listed publicly through an IPO on 29 June 2017.[7][8][9] Private equity companies that provided venture capital, including Warburg Pincus and International Finance Corporation, divested their holdings after the listing.[10][11]

In November 2017, the Reserve Bank of India added the bank to its schedule of commercial banks.[12]

On 1 April 2024, AU Small Finance Bank completed the acquisition of Fincare Small Finance Bank through a stock swap merger, the first merger involving two small finance banks.[13][14]

On 7 August 2025, the Reserve Bank of India granted an in-principle approval to AU Small Finance Bank to transition into a universal bank,[15] making it the first small finance bank in India to receive such an approval.[16] It was also the first full-fledged banking license issued by the Reserve Bank of India in 11 years.[17]

Operations[edit | edit source]

AU Small Finance Bank has a network of 2,726 physical touchpoints in 21 states and 4 union territories, 59,872 staff, and a total customer base of about 1.25 crore as of 31 December 2025.[18]

Controversies[edit | edit source]

On 18 February 2026, AU Small Finance Bank was de-empanelled by the Government of Haryana along with IDFC First Bank.[19] The state questioned the bank over suspected unauthorised transactions of about ₹72 crore (US$10 million), including ₹47 crore (US$6.6 million) transferred in 14 transactions from a government account to a customer account.[20] The bank said the transactions were properly authorised and denied any wrongdoing.[21] However, the bank has initiated an internal review, placed certain employees off duty pending the process.[22]

See also[edit | edit source]

References[edit | edit source]

  1. ↑ Shaikh, Subhana (19 December 2024). "RBI Approves Re-Appointment Of HR Khan As Part-Time Chairman Of AU Small Finance Bank". NDTV Profit. Retrieved 22 July 2025.
  2. ↑ 2.0 2.1 "AU Small Finance Bank Ltd reports net profit of Rs. 424.63 crores in Q4 FY2023". EquityBulls. 25 April 2023. Archived from the original on 27 June 2023. Retrieved 27 June 2023.
  3. ↑ "Company Factsheet". CRISIL. Archived from the original on 28 March 2019. Retrieved 28 March 2019.
  4. ↑ "ICRA Report". Archived from the original on 28 March 2019. Retrieved 28 March 2019.
  5. ↑ "AU Bank Investor Presentation Q3FY19" (PDF). Archived (PDF) from the original on 28 March 2019. Retrieved 28 March 2019.
  6. ↑ "AU Small Finance Bank – Fortune 500 List 2019 – Fortune India". Fortune India.
  7. ↑ 7.0 7.1 Mudgill, Amit (28 June 2017). "AU Small Finance Bank IPO; here's what 8 brokerages say". The Economic Times. Archived from the original on 15 March 2018. Retrieved 15 March 2018.
  8. ↑ "Stock Share Price | Get Quote | BSE". Archived from the original on 6 October 2021. Retrieved 5 October 2021.
  9. ↑ Babla, Shraddha (11 July 2017). "After 51% Listing Gains, AU Small Finance Bank India's Most Expensive". Bloomberg Quint. Archived from the original on 16 March 2018. Retrieved 15 March 2018.
  10. ↑ Chatterjee, Paramita (7 December 2017). "PE Exits At An All-time High". BW Businessworld. Archived from the original on 28 March 2018. Retrieved 28 March 2018.
  11. ↑ "High Stakes". Outlook Business. 2 March 2018. Archived from the original on 28 March 2018. Retrieved 28 March 2018.
  12. ↑ Srivats, K.R. (2 November 2017). "AU Small Finance gets scheduled commercial bank status". The Hindu Business Line. Archived from the original on 7 February 2018. Retrieved 15 March 2018.
  13. ↑ "Fincare SFB to merge with AU Small Finance Bank in all-share deal". www.business-standard.com. 29 October 2023. Archived from the original on 19 April 2024. Retrieved 31 October 2024.
  14. ↑ Ray, Atmadip (4 March 2024). "RBI approves AU Small Finance Bank acquisition of Fincare Small Finance Bank with effect from April 1". The Economic Times. Retrieved 22 July 2025.
  15. ↑ "AU Small Finance Bank gets RBI nod to become a universal bank". The Times of India. 7 August 2025. ISSN 0971-8257. Retrieved 8 August 2025.
  16. ↑ "Business Standard". 8 August 2025.
  17. ↑ "India's AU Small Finance Bank gets first universal banking licence in a decade". Reuters. 7 August 2025. Retrieved 8 August 2025.
  18. ↑ "Investors and Stake holders - AU Small Finance Bank". www.au.bank.in. Retrieved 24 February 2026.
  19. ↑ Iyer, Archishma (23 February 2026). "De-empanelled by Haryana, AU Small Finance Bank opens probe, sends staff 'offduty'". Moneycontrol. Retrieved 24 February 2026.
  20. ↑ Fernandes, Jocelyn (23 February 2026). "AU Small Finance Bank de-empanelment: What we know about ₹47 crore funds transfer, timeline, internal review details | Company Business News". mint. Retrieved 24 February 2026.
  21. ↑ Sarkar, Subhojit (23 February 2026). "AU Small Finance Bank denies wrongdoing after Haryana govt de-empanels it over alleged fraud". Fortune India. Retrieved 24 February 2026.
  22. ↑ "AU Small Finance Bank begins internal probe after Haryana account fiasco". The Economic Times. 24 February 2026. ISSN 0013-0389. Retrieved 24 February 2026.

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