knowmyifsc.com

AU Small Finance Bank Limited began its operations not as a bank, but as a Non-Banking Financial Company (NBFC) named AU Financiers (India) Ltd., founded in 1996 by Chartered Accountant Sanjay Agarwal. Its initial focus was primarily on vehicle finance, catering to the credit needs of marginal farmers and the unorganized sector in semi-urban and rural areas of Rajasthan. After two decades of growth, the company received final approval from the Reserve Bank of India (RBI) and converted into a full-fledged Small Finance Bank (SFB) on April 19, 2017. Shortly thereafter, in June 2017, the bank became publicly listed following a successful Initial Public Offering (IPO), trading on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

The bank is a key, institutionally-backed player in the Small Finance Bank category of the Indian financial system, serving the vital function of promoting financial inclusion. Its significance is underscored by its status as an Indian scheduled commercial small finance bank, serving a diverse customer base through an expanding network of physical and digital touchpoints across India. Notably, AU Small Finance Bank has executed the first merger between two Small Finance Banks, acquiring Fincare Small Finance Bank in 2024. Furthermore, in a landmark decision, the Reserve Bank of India granted the bank in-principle approval in 2025 to transition into a universal bank, which marks it as the first SFB in the country to receive such approval. This transition is set to significantly elevate its role from a specialized SFB to a major universal bank, reflecting a key evolution within India's new-age banking sector.