AU Small Finance Bank will become a full-fledged bank soon
What's the story
AU Small Finance Bank has filed its final application for a universal banking license with the Reserve Bank of India (RBI). The move comes after the central bank relaxed the requirement of setting up a non-operative holding company for this transition. "Our bank is fully prepared for the transition in terms of its technology and products suite," said Vivek Tripathi, Executive Director at AU Bank.
Progress
In-principle approval received last year
AU Bank received an in-principle universal banking license in August last year. The RBI had mandated the bank's promoters to transfer stocks into a non-operating holding company within 18 months of receiving the first approval. However, this condition was removed by the central bank in March, following a request from AU Bank. "This condition will again be applicable only if the bank plans to float a mutual fund or insurance subsidiary," said Tripathi.
Leadership changes
Succession planning at AU Bank
Along with its licensing journey, AU Bank is also focusing on succession planning and strengthening its leadership. Tripathi was promoted to Executive Director from Chief Credit Officer on April 24. The bank also appointed Gaurav Jain as Chief Financial Officer on April 27. Meanwhile, RBI has approved Managing Director Sanjay Agarwal's extension for another three years from April 19.