AU Small Finance Bank Limited is an Indian scheduled commercial small finance bank,[1] 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).[2]
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.[3]
AU Small Finance Bank listed publicly through an IPO on 29 June 2017.[3][4][5] Private equity companies that provided venture capital, including Warburg Pincus and International Finance Corporation, divested their holdings after the listing.[6][7]
In November 2017, the Reserve Bank of India added the bank to its schedule of commercial banks.[8]
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.[9][10]
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,[11] making it the first small finance bank in India to receive such an approval.[12] It was also the first full-fledged banking license issued by the Reserve Bank of India in 11 years.[13]
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.[14]
Controversies
On 18 February 2026, AU Small Finance Bank was de-empanelled by the Government of Haryana along with IDFC First Bank.[15] The state questioned the bank over suspected unauthorised transactions of about Template:INRConvert, including Template:INRConvert transferred in 14 transactions from a government account to a customer account.[16] The bank said the transactions were properly authorised and denied any wrongdoing.[17] However, the bank has initiated an internal review, placed certain employees off duty pending the process.[18]
See also
References
- ↑ AU Bank Investor Presentation Q3FY19. Retrieved 28 March 2019.
- ↑ AU Small Finance Bank – Fortune 500 List 2019 – Fortune India. Fortune India.
- ↑ 3.0 3.1 AU Small Finance Bank IPO; here's what 8 brokerages say. The Economic Times(28 June 2017). Retrieved 15 March 2018.
- ↑ Stock Share Price | Get Quote | BSE. Retrieved 5 October 2021.
- ↑ After 51% Listing Gains, AU Small Finance Bank India's Most Expensive. Bloomberg Quint(11 July 2017). Retrieved 15 March 2018.
- ↑ PE Exits At An All-time High. BW Businessworld(7 December 2017). Retrieved 28 March 2018.
- ↑ High Stakes. Outlook Business(2 March 2018). Retrieved 28 March 2018.
- ↑ AU Small Finance gets scheduled commercial bank status. The Hindu Business Line(2 November 2017). Retrieved 15 March 2018.
- ↑ Fincare SFB to merge with AU Small Finance Bank in all-share deal. www.business-standard.com(October 29, 2023). Retrieved October 31, 2024.
- ↑ RBI approves AU Small Finance Bank acquisition of Fincare Small Finance Bank with effect from April 1. The Economic Times(4 March 2024). Retrieved 22 July 2025.
- ↑ AU Small Finance Bank gets RBI nod to become a universal bank. The Times of India(2025-08-07). Retrieved 2025-08-08.
- ↑ Business Standard(August 8, 2025).
- ↑ India's AU Small Finance Bank gets first universal banking licence in a decade. Reuters(2025-08-07). Retrieved 2025-08-08.
- ↑ Investors and Stake holders - AU Small Finance Bank. www.au.bank.in. Retrieved 2026-02-24.
- ↑ De-empanelled by Haryana, AU Small Finance Bank opens probe, sends staff 'offduty'. Moneycontrol(23 February 2026). Retrieved 24 February 2026.
- ↑ AU Small Finance Bank de-empanelment: What we know about ₹47 crore funds transfer, timeline, internal review details | Company Business News, Fernandes, Jocelyn. mint(2026-02-23). Retrieved 2026-02-24.
- ↑ AU Small Finance Bank denies wrongdoing after Haryana govt de-empanels it over alleged fraud, Sarkar, Subhojit. Fortune India(2026-02-23). Retrieved 2026-02-24.
- ↑ AU Small Finance Bank begins internal probe after Haryana account fiasco. The Economic Times(2026-02-24). Retrieved 2026-02-24.