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.
Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
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