The Reserve Financial institution of India has determined to grant ‘in-principle’ approval to AU Small Finance Financial institution Ltd (AUSFB) for transitioning from a small finance financial institution (SFB) to a common financial institution.
The common financial institution standing will enable AU Financial institution to supply a variety of monetary providers and merchandise beneath one roof with out many restrictions not like a small finance financial institution.
Sanjay Agarwal based Au Financiers in 1996. Headquartered in Jaipur, Rajasthan, the retail-focused non-banking finance firm received the small finance financial institution (SFB) license in 2015 and it began operations in April 2017.
AUSFB serves over 1.15 crore prospects by way of 2,505 banking touchpoints throughout 21 states and 4 union territories, supported by a workforce of 53,000. As of June 30, 2025, the financial institution’s shareholders’ funds stood at Rs 17,800 crore, with a deposit base of Rs 127,696 crore, mortgage portfolio of Rs 117,624 crore, and a steadiness sheet of over Rs 1.60 lakh crore.
AU Financial institution shares closed at Rs 744, up by 1.27 per cent, on the BSE on Thursday, valuing the financial institution at Rs 55,458 crore.
In response to the RBI, the eligibility standards for an SFB to transition right into a common financial institution embrace scheduled standing with a passable observe report of efficiency for a minimal interval of 5 years, itemizing on a recognised inventory alternate and minimal internet value of Rs 1,000 crore as on the finish of the earlier quarter (audited). They need to additionally meet the prescribed CRAR necessities for SFBs, having a internet revenue within the final two monetary years and gross NPA and internet NPA of lower than or equal to three per cent and 1 per cent respectively within the final two monetary years.
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