FCC

AU Small Finance Bank Secures RBI Approval For Universal Bank

2025-08-11

AU Small Finance Bank has received approval from the Reserve Bank of India (RBI) to transition into a universal bank. The move will allow the Jaipur-based lender to expand its range of financial services and compete directly with larger commercial banks.

Founded in 1996 as a non-banking finance company, AU Small Finance Bank became a small finance bank in 2017. The transition to a universal bank will enable it to offer a broader portfolio, including enhanced corporate banking, treasury operations, and new retail products.

Managing Director and CEO Sanjay Agarwal said the approval marks a significant milestone in the bank’s growth journey and reflects its strong financial performance, customer trust, and operational resilience. The bank aims to complete the transition in a phased manner while maintaining its focus on underserved and rural markets.