AU Small Finance Bank, India’s largest in this category, is on the cusp of a significant transformation — its transition into a full-fledged universal bank. The journey to this milestone is itself a reflection of the institution’s consistent growth and ambition, earning it recognition as the Best Small Finance Bank at the FE Best Bank Awards 2024–25.
The fiscal year 2024–25 proved to be a watershed moment for the bank. Having prepared itself for a universal banking licence, AU SFB formally submitted its application to the Reserve Bank of India — and in August 2025, received the RBI’s approval. Notably, this was the first full-fledged banking licence granted in nearly a decade.
The bank is now expected to complete its transition within the year. Financially, FY25 was equally impressive. The bank posted a net profit of Rs 2,106 crore, a 32% year-on-year increase, while its loan portfolio grew 20% to Rs 1.16 lakh crore and deposits rose 27% to Rs 1.24 lakh crore. The momentum has carried into FY26, with net profit climbing further to Rs 2,641 crore, advances reaching Rs 1.4 lakh crore, and deposits growing to Rs 1.53 lakh crore.
Speaking to FE upon receiving the universal bank licence, founder and MD & CEO Sanjay Agarwal noted that the upgrade would intensify competition in the deposits market, with the bank positioning itself to price deposits more competitively. He also outlined an ambitious growth target — roughly twice India’s nominal GDP growth rate going forward.
AU SFB’s evolution over three decades — from a non-banking finance company to a universal bank — is a story of steady, purposeful growth. The bank traces its origins to 1996, when Sanjay Agarwal founded AU Financiers in Jaipur with a clear mandate: to bridge the credit gap for small-scale entrepreneurs and underserved communities.
In 2017, following RBI approval, the organisation converted into a small finance bank, and has since grown to become the largest in that category. As of the end of FY26, AU SFB operates 2,790 touchpoints across 21 states and four union territories, serving a customer base of over 120 million.
