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AU SFB Becomes Universal Bank in Historic RBI Move
4 Jun
Summary
- AU SFB secured India's first universal banking license in nearly a decade.
- Net profit rose 32% in FY25 to Rs 2,106 crore, with loan growth at 20%.
- The bank traces its origins to 1996 and serves over 120 million customers.
AU Small Finance Bank has officially been granted approval to transition into a universal bank, marking a significant milestone. This marks the first such license issued by the Reserve Bank of India in nearly a decade. The bank is expected to finalize this transformation within the current year.
During fiscal year 2024-25, AU SFB reported a net profit of Rs 2,106 crore, reflecting a substantial 32% year-on-year increase. Its loan portfolio expanded by 20% to Rs 1.16 lakh crore, and deposits grew by 27% to Rs 1.24 lakh crore.
Momentum continued into fiscal year 2025-26, with net profit reaching Rs 2,641 crore, advances totaling Rs 1.4 lakh crore, and deposits growing to Rs 1.53 lakh crore. Founder and MD & CEO Sanjay Agarwal anticipates intensified competition in the deposit market and has set an ambitious growth target.
Established in Jaipur in 1996 as AU Financiers, the institution has evolved over three decades. It converted to a small finance bank in 2017 and has since become the largest in its category, operating 2,790 touchpoints across India and serving over 120 million customers.
