AU Small Finance Bank gets RBI nod to become universal bank
AU Small Finance Bank just got the go-ahead from the RBI to upgrade into a universal bank—the first time this has happened in a decade.
Starting out as a vehicle finance company back in 1996 and turning into a small finance bank in 2017, AU now hits a major milestone.
CEO Sanjay Agarwal called it "This milestone is a reaffirmation of our purpose, perseverance, and passion" for the team.
AU can now offer more banking services
With this license, AU can offer way more banking services and reach more customers across India.
The move should help lower its funding costs and ease some lending rules—priority sector lending drops from 60% to 40%.
Meanwhile, Ujjivan Small Finance Bank is still waiting on RBI's decision for its own upgrade, showing how smaller banks are aiming bigger these days.