AU Small Finance Bank

AU Small Finance Bank Limited
Company typePublic
ISININE949L01017
Industry
Founded1996 (1996)
FounderSanjay Agarwal
Headquarters
Area served
India
Key people
Revenue ₹9,293 crore (US$1.1 billion) (FY23)[2]
₹1,427 crore (US$170 million) (FY23)[2]
Total equity ₹6,275 crore (US$740 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

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

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

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$8.5 million), including ₹47 crore (US$5.6 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

References

  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. ^ a b "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. ^ a b 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.

Further reading

This article is issued from Wikipedia. The text is available under Creative Commons Attribution-Share Alike 4.0 unless otherwise noted. Additional terms may apply for the media files.