AU Small Finance Bank will become a universal bank, got approval from RBI; Know what has changed for the customers..

The Reserve Bank of India (RBI) on August 7 gave 'in-principle' approval to AU Small Finance Banks to convert from a small finance bank to a universal bank. On September 3, 2024, AU Small Finance Bank has applied to the RBI for voluntary conversion from a small finance bank to a universal bank.

This is a significant step for the bank, potentially expanding its reach and services, the bank said in an exchange filing on September 3, 2024.

The eligibility criteria for a small finance bank to convert into a universal bank are that it should have a satisfactory performance record of at least five years, be listed on the stock exchanges, and have a minimum net worth of Rs 1,000 crore.

Further, the eligibility criteria for a small finance bank are that the GNPA and NNPA should be less than or equal to 3 per cent and 1 per cent, respectively, in the last two financial years.

Sanjay Agarwal, Founder, MD & CEO, AU Small Finance Bank, said, “We have created history by receiving in-principle approval from the Reserve Bank of India to transform into a Universal Bank. This achievement reaffirms our purpose, determination, and passion. AU is not just a bank; AU is a mission. As Prime Minister Narendra Modi rightly said, “India is not just a market. India is a mission.” At AU, we live this mission every day. Our journey has always gone beyond banking. It is about building a more inclusive, empowered and entrepreneurial India.

About AU Small Finance Bank
AU Small Finance Bank Limited (AU SFB) is a scheduled commercial bank and has established itself as India’s largest small finance bank since starting its banking journey in April 2017. Founded in 1996 by Sanjay Agarwal.

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