AU Small Finance Bank today has officially submitted an application to the Reserve Bank of India (RBI) for approval to transition from a Small Finance Bank to a Universal Bank, the bank said in an exchange filing. The application was filed on September 3, 2024, following the bank’s prior communication dated July 25, 2024.
This move comes after Sanjay Agarwal, MD and CEO of the bank, indicated in a post-results interview with Moneycontrol at the end of July that the bank would apply for the universal banking license within four weeks.
As per RBI guidelines, a small finance bank must meet specific criteria to transition into a universal bank. These include having a satisfactory track record of performance for a minimum of five years, being listed on the stock exchanges, and maintaining a minimum net worth of Rs 1,000 crore as of the end of the previous quarter. AU Small Finance Bank’s application marks a significant step in its growth and expansion strategy, aligning with the bank’s long-term vision.