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With this notification, AU becomes the first Small Finance Bank in India to receive this in-principle approval to become a Universal Bank,' the SFB said in a statement. AU Bank had submitted the application for this transition on 03 September 2024, under the RBI's 'on tap' licensing guidelines (August 2016) and April 2024 framework for the voluntary conversion of Small Finance Banks to Universal Banks. RBI approval for transition to a universal bank will help the bank's evolution into a complete bank, enabling it to offer a full spectrum of banking products and services that today's customer expects, spanning retail, business, and digital solutions. It will strengthen brand acceptance, broaden access to diversified deposit sources, and is expected to lead to a reduction in the cost of funds over the medium to long term. Sanjay Agarwal, founder, MD & CEO of AU Small Finance Bank, said: We have made history by receiving in-principle approval from the Reserve Bank of India to transition into a Universal Bank. This milestone is a reaffirmation of our purpose, perseverance, and passion. AU Small Finance Bank Limited (AU SFB) is a Scheduled Commercial Bank and has established itself as India's largest small finance bank since commencing its banking journey in April 2017. The bank provides comprehensive banking solutions across deposits, loans, credit cards, premium banking, remittance services, merchant solutions, insurance, and investments. As on 30 June 2025, the bank had a wide network of over 2,505 banking touchpoints across 21 states and 4 union territories. The bank had reported 15.6% rise in net profit to Rs 580.86 crore on a 21.3% increase in total income to Rs 5,189.05 crore in Q4 FY25 as compared with Q4 FY24. Powered by Capital Market - Live News |