AU Small Finance Bank Limited is an Indian scheduled commercial small finance bank, headquartered in Mumbai. It was founded in 1996 as a vehicle finance company and was converted into a small finance bank in 2017. That same year, it got listed on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
History The company was founded in 1996 by chartered accountant Sanjay Agarwal as AU Financiers (India) Ltd, a vehicle finance company and an NBFC. It converted into a full-fledged small finance bank on 19 April 2017.
In 2003, the company received the RBI registration as an asset financing company. And in 2015, RBI gave the organisation an approval to set up a small finance bank.
In 2012, associate company AU Insurance Broking Services Private Limited (established in 2011) received its Insurance Broking Agency License.
In the 2013, private equity firm ChrysCapital acquired a 10.01% stake in AU Financiers (now AU Small Finance Bank) for ₹120 crore through secondary market purchases from existing investors and founders.
AU Small Finance Bank listed publicly through an IPO on 29 June 2017. Private equity companies that provided venture capital, including Warburg Pincus and International Finance Corporation, divested their holdings after the listing.
In November 2017, the Reserve Bank of India added the bank to its schedule of commercial banks.
On 7 August 2025, the Reserve Bank of India granted an in-principle approval to AU Small Finance Bank to transition into a universal bank, making it the first small finance bank in India to receive such an approval. It was also the first full-fledged banking license issued by the Reserve Bank of India in 11 years.
Operations AU Small Finance Bank has a network of 2,726 physical touchpoints in 21 states and 4 union territories, 59,000+ staff, and a total customer base of about 1.25+ crore as of 30 April 2026.
Controversies On 18 February 2026, AU Small Finance Bank was de-empanelled by the Government of Haryana along with IDFC First Bank. The state questioned the bank over suspected unauthorised transactions of about , including transferred in 14 transactions from a government account to a customer account. The bank said the transactions were properly authorised and denied any wrongdoing. However, the bank has initiated an internal review, placed certain employees off duty pending the process.
See also
Banking in India List of banks in India Indian Financial System Code
References
Further reading