AU Small Finance Bank
Indian small finance commercial bank
From Wikipedia, the free encyclopedia
AU Small Finance Bank Limited is an Indian scheduled commercial small finance bank,[5] headquartered in Mumbai. It was founded in 1996 as a vehicle finance company and was converted into a small finance bank in 2017. That same year, it got listed on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).[6]
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| |
| Type | Public |
|---|---|
| ISIN | INE949L01017 |
| Industry | |
| Founded | 1996 |
| Founder | Sanjay Agarwal |
| Headquarters | |
Area served | India |
| Key people |
|
| Revenue |  ₹9,293 crore (US$970 million) (FY23)[2] |
| ₹1,427 crore (US$150 million) (FY23)[2] | |
| Total equity | ₹6,275 crore (US$650 million) (2021) |
Number of employees | 59000+ |
| Rating | CRISIL AA+ Stable[3][4] |
| Website | www |
It received the "India's Top 50 Companies to Work for 2025" award from the Great Place to Work.[7] As on March 2026, the bank serves around 1.2 crore customers through (approx) 2790 touchpoints, across 21 states and 4 union territories. The same has been supported by 59,200+ workers and a balance sheet exceeding Rs. 1.9 lakh crore.[8]
History
The company was founded in 1996 by chartered accountant Sanjay Agarwal as AU Financiers (India) Ltd, a vehicle finance company and an NBFC. It converted into a full-fledged small finance bank on 19 April 2017.[9]
In 2003, the company received the RBI registration as an asset financing company. And in 2015, RBI gave the organisation an approval to set up a small finance bank.[10]
In 2012, associate company AU Insurance Broking Services Private Limited (established in 2011) received its Insurance Broking Agency License.[11]
In the 2013, private equity firm ChrysCapital acquired a 10.01% stake in AU Financiers (now AU Small Finance Bank) for ₹120 crore through secondary market purchases from existing investors and founders.[11]
AU Small Finance Bank listed publicly through an IPO on 29 June 2017.[9][12][13] Private equity companies that provided venture capital, including Warburg Pincus and International Finance Corporation, divested their holdings after the listing.[14][15]
In November 2017, the Reserve Bank of India added the bank to its schedule of commercial banks.[16] In 2018, the bank was included in the Fortune India 500 list for the first time. In 2021, the bank launched AU 0101 digital banking app, and entered the credit card market.[10]
In 2023, they become the first small finance bank to offer 24x7 digital banking services.[10] On 1 April 2024, AU Small Finance Bank completed the acquisition of Fincare Small Finance Bank through a stock swap merger, the first merger involving two small finance banks.[17][18]
On 7 August 2025, the Reserve Bank of India granted an in-principle approval to AU Small Finance Bank to transition into a universal bank,[19] making it the first small finance bank in India to receive such an approval.[20] It was also the first full-fledged banking license issued by the Reserve Bank of India in 11 years.[21] The same year, the bank crossed INR 1,50,000 crores in total business, including both deposits and advances as well.[10]
In February 2026, AU small finance bank launched a series of savings accounts for all customers. These bank accounts includes, AU Digital, AU Royale World, AU Platinum, AU Value and AU Vikaas.[22] The same has been built for women, senior citizens, students, NRIs and salaried professionals. Each variant of account is meant to serve the interests of different kinds of people, varied banking preferences and lifestyles.[22]
In May 2026, the employee count of the bank declined due to the usage of AI and AI automation tools to increase productivity and business growth. The business momentum remained strong, and asset quality improved. The bank opined that this measure was farsighted, and will promote profits in the long runs.[23]
In July 2026, AU Small Finance Bank announced the inauguration of its new office, 'AU Bank Capital House' at the World Trade Centre, New Delhi. The space will serve as the key office for the bank's senior leadership.[8] The space also offers a full range of banking services, across retail, MSME, wholesale and digital segments, to serve the interests of customers and institutions. This will ensure that closer engagement, support seamless execution of strategic interventions and strengthening the presence of the organisation.[8]
Operations
AU Small Finance Bank has a network of 2,726 physical touchpoints in 21 states and 4 union territories, 59,000+ staff, and a total customer base of about 1.25+ crore as of 30 April 2026.[24]
CSR/BRSR Activities
The priorities of the sustainability activities of the bank includes economic, governance, social and environment. The sectors of impact was social development, building a better society by ensuring livelihood options, empowering women, skill enhancement, financial literacy and education.[25] The principles of these activities include ethics and governance, that is, trust and transparency was maintained among all stakeholders; sustainable products and services; employee welfare; responsiveness towards stakeholders; respect and promotion of human rights; environment protection; advocacy of public policy; inclusive growth; and customer value.[25] The programmes undertaken by the bank includes- AU Udyogini (empowering women entrepreneurship), AU Skills Academy (Empowering Self-Reliance), Sports for Development (Making a healthier India), and Financial and Digital Literacy Initiative (Empowering with financial knoweldge and wisdom).[25]
Another one of the key initiatives of the bank is financial exclusion. According to the BRSR report of FY20, they undertook different policies to ensure that more people come under the ambit of financial banking.[25] These policies included priority sector lending, financial literacy and education, driving financial inclusion through technology and through employees that take services to many underbanked areas.
Environmentally, there were many initiatives undertaken by the bank to ensure that a sustainable impact was made by the bank. This includes reduction of carbon footprint through conservation of energy, advanced setting power use interface, reduction in fuel consumption, among many initiatives. Virtualising information centres and servers, managing energy through e-waste management, and technology absorption, were other significant endeavours pursued by the bank.[25]
Employees
The office has been made accessible and, according to Rights of Persons with Disabilities Act, 2016, and the Harmonized Guidelines for Standards of Accessibility. As of the latest year of reporting, 28 disabled people individuals.[26] The office has provided the disabled employees with a bunch of accessibility facilities, like braille-signages and wheelchair-friendly pathways. The diversity and inclusion wing of the bank has also ensured that there is a strict compliance to a non-discriminatory work environment that promotes a lack of bias.[26]
Other Initiatives
Suhana Safar
AU Small Finance Bank, in partnership with Maruti Suzuki India launched an industry-first initiative called 'Suhana Safar'. This Recurring Deposit backed auto loan scheme is to make car ownership more accessible to first-time buyers.[27] This addresses the problems of mobilising a lump sum down payment and committing to an EMI. This structured, RD-backed solution helps customers to build savings, earn interest, and practically assess their comfort with making regular payments before availing the auto loan.[27] The scheme offers a journey from disciplined savings to car ownership. This process involves opening the RD, monthly deposits, earning interest, down payment conversion and loan disbursement.[27] The 'Suhana Safar' scheme is available through all of the authorised Maruti Suzuki dealerships. The same can be availed for the models Alto K10, S-Presso, Celerio, and WagonR.[27]
Sustainability
In July 2026, AU SFB organised a mega tree plantation drive in Hyderabad, India. The same was done through the CSR arm of the bank, the AU foundation.[28] The same was aligned with the Ministry of Education's campaign, "Ek Ped Maa ke Naam 3.0". The primary objective of this is to restore ecological balance while instilling values of environmental accountability within the communities.[28]
Controversies
On 18 February 2026, AU Small Finance Bank was de-empanelled by the Government of Haryana along with IDFC First Bank.[29] The state questioned the bank over suspected unauthorised transactions of about ₹72 crore (US$7.5 million), including ₹47 crore (US$4.9 million) transferred in 14 transactions from a government account to a customer account.[30] The bank said the transactions were properly authorised and denied any wrongdoing.[31] However, the bank has initiated an internal review, placed certain employees off duty pending the process.[32]
Management
As of 2026, AU Small Finance Bank, Board of Director is as followed[33]
- Mr. H. R. Khan (Part Time Chairman & Independent Director)
- Mr. J M Prasad (Independent Director)
- Mr. Kamlesh Shivji Vikamsey (Independent Director)
- Ms. Malini Thadani (Independent Director)
- Mr. Nandkumar Saravade (Independent Director)
- Mr. N. S. Venkates (Independent Director)
- Mr. Phani Shankar (Independent Director)
- Mr. Satyajit Dwivedi (Independent Director)
- Mr. Sanjay Agarwal (Founder,MD & CEO)
- Mr. Vivek Tripathi (Executive Director)
