India’s AU Bank clinches in-principle approval to become a universal bank

The Jaipur-based bank is said to be the largest small finance bank in India.

The Reserve Bank of India (RBI) has granted ‘in-principle’ approval to AU Small Finance Bank Limited (AUSFB) to transition to a universal bank.

The Jaipur-based small finance bank (SFB), established in 1996, is reportedly the first SFB in India to receive approval from the central bank to transition into a universal bank.

AUSFB is said to be the largest SFB in India.

It has over 2,505 touchpoints across 21 States and 4 Union Territories in India, serving 1.16 crore customers, with over 53,000 employees, according to the bank’s website.

In a statement, founder and CEO Sanjay Agarwal expressed gratitude to the government of India and the central bank for “nurturing an ecosystem where institutions like AU can grow with integrity.”

“We have made history by receiving in-principle approval from the Reserve Bank of India to transition into a Universal Bank. This milestone is more than a regulatory achievement; it is a reaffirmation of our purpose, our perseverance, and our passion…This in-principle approval acknowledges not just our ability to grow, but to grow responsibly,” he said.