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AU Small Finance Bank Reassures After Haryana Action
23 Feb
Summary
- No fraud or financial impact indicated by Haryana government's action.
- Haryana government deposits form only 0.4% of total bank deposits.
- Bank is engaging with Haryana government for re-empanelment.
AU Small Finance Bank issued a clarification on February 23, 2026, following its de-empanelment by the Haryana Government on February 18, 2026. The bank asserted that preliminary reviews show no signs of fraudulent activity or financial repercussions.
The Haryana Finance Department had communicated concerns about suspected unauthorized transactions from a government account to a customer account. This led to the bank's de-empanelment on February 18, 2026.
AU Small Finance Bank reported that the government account, opened with proper KYC, saw transfers initiated and authorized by the department. Deposits from Haryana government entities totaled approximately Rs 735 crore as of February 17, 2026, reducing to Rs 538 crore by February 21, 2026. This amount represents about 0.4% of the bank's overall deposits.
The bank has informed its board of the ongoing internal review and has placed certain employees off-duty. AU SFB is in discussions with the state government to achieve clarity and reinstatement.
