AU Small Finance Bank Secures RBI Approval For Universal Bank
11 Aug 2025 CW Team
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.