Monday, December 2, 2024

AU Small Finance Bank applies to RBI to transition to a universal bank

Must read


AU Small Finance Bank on Tuesday submitted an application to the Reserve Bank of India to seek approval for the voluntary transition from a Small Finance Bank (SFB) to a Universal Bank.

This application comes in the backdrop of Fincare Small Finance Bank (Fincare SFB) amalgamating with and into AU SFB with effect from April 1, 2024, marking the first such consolidation in the SFB space.

“This strategic evolution will pave the way for our future growth, enhance our brand presence, wider acceptance, reduce regulatory constraints, and improve operational efficiency,” said Sanjay Agarwal, Founder, MD & CEO, in a communication to shareholders.

In April 2024, the RBI issued a circular allowing the voluntary transition of Small Finance Banks to Universal Banks and AU SFB is the first Bank to seek regulatory approval for the transition.

To qualify, as per the RBI guidelines, SFBs need a five-year track record, strong financials, and a stock exchange listing among various other parameters.

As of June-end 2024, AU SFB’s deposits and advances stood at ₹97,290 crore and ₹99,792 crore, respectively. The net profit at ₹503 crore in Q1’FY25 grew 30 per cent y-o-y compared to ₹ 387 crore in Q1FY24.





Source link

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article