Latest News on AU Small finance Bank
Australia’s Credit Card Landscape is Undergoing a Significant Transformation: The Rise of Credit-First Everyday SpendingAlternatively, you could also consider these other options:* The Credit-First Revolution: How Australian Credit Cards are Changing the Way We Spend * From Cash to Credit: The Growing Trend of Credit-First Everyday Spending in Australia * Australia’s Shift to Credit-First Spending: The Role of Credit Cards in this Emerging Trend
The payment landscape in India is undergoing a significant transformation, with an increasing number of consumers opting to use credit cards for their everyday purchases. This shift is not about replacing traditional payment methods, but rather about adding convenience, rewards, and flexibility to daily spending. AU Credit Cards are at the forefront of this change, helping customers make their everyday transactions more value-driven and seamless.
There are several reasons why people are using credit cards for daily expenses. Firstly, credit cards offer a simple and single mode of payment that works across various categories and platforms, from grocery shopping to online orders and fuel purchases. Secondly, credit cards provide added value on everyday spends, such as rewards, benefits, and savings. Additionally, credit cards enable better expense management through monthly statements and app dashboards, making it easier to track and plan spending.
AU Small Finance Bank offers credit cards designed for everyday use, providing benefits that align with how customers already shop, pay, and live. These credit cards offer reward benefits on everyday spends, convenient tap-to-pay and online transactions, secure payments, easy EMI options, and hassle-free card management through the AU 0101 App.
The bank offers a range of credit cards to suit different lifestyles, including professionals, families, online shoppers, travel and lifestyle seekers, and individuals building their credit journey. The idea is to choose a card that matches one’s lifestyle, rather than the other way around.
To use credit cards wisely, it’s essential to pay bills on or before the due date, spend within a planned budget, monitor statements regularly, and use rewards intentionally. These practices help build and maintain a strong credit profile. The move towards credit-first everyday spending reflects a shift towards smarter financial choices, where payments are not just transactions but opportunities to earn value, stay organized, and enjoy convenience.
In conclusion, AU Credit Cards are designed to support this shift, with rewards, flexibility, and features that fit easily into everyday life. With the right credit card, everyday spending can become more rewarding and convenient. By choosing a credit card that complements one’s lifestyle, individuals can make the most of their daily purchases and enjoy the benefits that come with using credit cards responsibly.
AU Small Finance Bank launches ‘M’ Circle, a comprehensive financial platform designed specifically for women, offering a tailored banking experience.
AU Small Finance Bank has launched ‘M’ Circle, a comprehensive banking program designed specifically for women. The initiative aims to provide a holistic banking experience, catering to the unique financial needs and aspirations of women. ‘M’ Circle offers a range of benefits, including personalized banking services, exclusive discounts, and preferential rates on loans and deposits.
The program is designed to empower women financially, providing them with easy access to banking services, financial planning, and wealth management. ‘M’ Circle members will have access to a dedicated relationship manager, who will assist them in managing their finances, creating a personalized financial plan, and providing investment advice.
In addition to personalized banking services, ‘M’ Circle members will also enjoy exclusive benefits, such as preferential interest rates on loans and deposits, discounts on banking services, and special offers on credit cards. The program also includes a range of value-added services, including insurance, investment, and tax planning.
AU Small Finance Bank has partnered with various organizations to offer ‘M’ Circle members access to a range of products and services, including health and wellness programs, skill development workshops, and networking events. The bank has also launched a dedicated website and mobile app for ‘M’ Circle members, providing them with easy access to their account information, transaction history, and other banking services.
The launch of ‘M’ Circle is part of AU Small Finance Bank’s efforts to promote financial inclusion and empowerment of women. The bank believes that by providing women with access to comprehensive banking services, it can help bridge the financial gap and promote economic growth. ‘M’ Circle is available to all women, regardless of their income or occupation, and can be accessed through the bank’s website, mobile app, or by visiting any of its branches.
Overall, ‘M’ Circle is a unique initiative that aims to provide women with a holistic banking experience, empowering them to take control of their finances and achieve their financial goals. With its range of personalized services, exclusive benefits, and value-added offerings, ‘M’ Circle is poised to become a leading banking program for women in India. By promoting financial inclusion and empowerment of women, AU Small Finance Bank is contributing to the country’s economic growth and development.
AU Small Finance Bank Reaches Historic Peak, Demonstrating Unparalleled Expansion and Resilience
AU Small Finance Bank has achieved a significant milestone by reaching an all-time high on November 7, 2025. This achievement is attributed to the bank’s strong financial metrics and consistent growth trends. Over the past year, the bank has delivered an impressive return of 48.38%, outperforming the broader market by a substantial margin. In comparison, the broader market has only seen returns of 4.50% over the same period.
The bank’s robust performance is evident in its year-to-date increase of 59.91% and a remarkable 131.71% rise over the past five years. Additionally, AU Small Finance Bank has demonstrated resilience in the face of market fluctuations, outperforming its sector by 0.96% in a single day. The bank’s strong fundamentals are underpinned by a healthy average Return on Assets (ROA) of 1.71% and a high Capital Adequacy Ratio of 21.50%. This solid buffer against risks has enabled the bank to maintain its financial stability.
The bank’s net interest income has also grown at an impressive annual rate of 30.43%, contributing to its strong financial position. Furthermore, AU Small Finance Bank has high institutional holdings of 66.4%, indicating a high level of confidence from institutional investors. This has helped the bank solidify its status as a key player in the banking sector.
Overall, AU Small Finance Bank’s achievement of an all-time high is a testament to its strong financial performance and consistent growth trends. The bank’s robust fundamentals, high institutional holdings, and impressive returns make it an attractive investment opportunity. As the bank continues to demonstrate its resilience and stability, it is likely to remain a key player in the banking sector. With its strong financial position and growth prospects, AU Small Finance Bank is well-positioned to continue delivering strong returns to its investors.
Rajeev Yadav, Deputy CEO of AU Small Finance Bank, has submitted his resignation, which will take effect on October 31, as reported by People Matters India.
Rajeev Yadav, the Deputy CEO of AU Small Finance Bank, has tendered his resignation, effective October 31. The news was announced by the bank, stating that Yadav will be leaving his position after a stint of over four years. Yadav was one of the key members of the bank’s leadership team and played a crucial role in shaping its strategy and growth.
During his tenure, Yadav was responsible for driving the bank’s business growth, overseeing operations, and implementing digital transformation initiatives. He was also instrumental in building and maintaining relationships with key stakeholders, including customers, investors, and regulators. Under his leadership, the bank expanded its presence across the country, increased its customer base, and introduced new products and services.
Yadav’s resignation comes at a time when the bank is undergoing a significant transformation, driven by the changing landscape of the financial services industry. The bank has been investing heavily in digital technologies, such as artificial intelligence, machine learning, and data analytics, to enhance customer experience and improve operational efficiency.
The bank’s management has expressed gratitude to Yadav for his contributions and wished him the best for his future endeavors. The search for a new Deputy CEO is expected to begin soon, and the bank is likely to look for a candidate with a strong background in banking, finance, and digital transformation.
Yadav’s departure is not expected to have a significant impact on the bank’s operations, as the management team is well-equipped to handle the transition. The bank has a strong leadership team in place, and the CEO, Sanjay Agarwal, will continue to lead the organization.
The resignation of Yadav is a significant development in the Indian banking industry, which has seen several high-profile exits in recent times. The industry is undergoing a period of significant change, driven by technological advancements, changing customer behavior, and increasing competition. As a result, banks are looking for leaders who can navigate these changes and drive growth, innovation, and digital transformation.
In conclusion, Rajeev Yadav’s resignation as Deputy CEO of AU Small Finance Bank marks the end of an era, but the bank is well-positioned to continue its growth trajectory under the leadership of its CEO and the existing management team. The search for a new Deputy CEO will be an opportunity for the bank to bring in fresh perspectives and ideas, and to drive its digital transformation agenda forward.
AU Small Finance Bank Defies Economic Uncertainty with Strong Q2 FY26 Results
AU Small Finance Bank has reported a resilient performance for the second quarter of FY26, despite mixed economic sentiment. The bank’s results highlight its ability to navigate challenging market conditions and maintain growth momentum.
The bank’s net profit for Q2 FY26 stood at ₹335 crore, representing a growth of 24% year-over-year (YoY). The net interest income (NII) increased by 25% YoY to ₹1,431 crore, driven by a 23% YoY growth in advances and a 14% YoY increase in deposits. The bank’s net interest margin (NIM) improved to 6.2% from 5.9% in the same quarter last year.
The bank’s asset quality remained stable, with the gross non-performing assets (GNPA) ratio at 2.1% and the net non-performing assets (NNPA) ratio at 0.6%. The provision coverage ratio (PCR) stood at 74.1%, indicating a healthy provision buffer.
The bank’s capital adequacy ratio (CAR) was at 19.3%, well above the regulatory requirement of 15%. The return on assets (ROA) improved to 2.3% from 2.1% in the same quarter last year, while the return on equity (ROE) stood at 16.1%.
The bank’s management noted that the economic sentiment remains mixed, with some sectors showing resilience while others are facing challenges. However, the bank’s diversified portfolio and strong risk management practices have helped it to maintain its growth trajectory.
The bank’s focus on digital transformation and customer-centric approach has also yielded positive results. The bank’s digital channels now account for over 80% of its transactions, and the bank has seen a significant increase in customer engagement through its mobile banking app.
Overall, AU Small Finance Bank’s Q2 FY26 performance demonstrates its ability to adapt to changing market conditions and maintain growth momentum. The bank’s strong asset quality, healthy provision buffer, and robust capital position position it well to navigate the challenges ahead. With its focus on digital transformation and customer-centric approach, the bank is likely to continue its growth trajectory in the coming quarters.
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AU Small Finance Bank Defies Economic Uncertainty with Strong Q2 FY26 Results
AU Small Finance Bank has reported a resilient performance for the second quarter of FY26, despite mixed economic sentiment. The bank’s results highlight its ability to navigate challenging market conditions and maintain growth momentum.
The bank’s net profit for Q2 FY26 stood at ₹335 crore, representing a growth of 24% year-over-year (YoY). The net interest income (NII) increased by 25% YoY to ₹1,431 crore, driven by a 23% YoY growth in advances and a 14% YoY increase in deposits. The bank’s net interest margin (NIM) improved to 6.2% from 5.9% in the same quarter last year.
The bank’s asset quality remained stable, with the gross non-performing assets (GNPA) ratio at 2.1% and the net non-performing assets (NNPA) ratio at 0.6%. The provision coverage ratio (PCR) stood at 74.1%, indicating a healthy provision buffer.
The bank’s capital adequacy ratio (CAR) was at 19.3%, well above the regulatory requirement of 15%. The return on assets (ROA) improved to 2.3% from 2.1% in the same quarter last year, while the return on equity (ROE) stood at 16.1%.
The bank’s management noted that the economic sentiment remains mixed, with some sectors showing resilience while others are facing challenges. However, the bank’s diversified portfolio and strong risk management practices have helped it to maintain its growth trajectory.
The bank’s focus on digital transformation and customer-centric approach has also yielded positive results. The bank’s digital channels now account for over 80% of its transactions, and the bank has seen a significant increase in customer engagement through its mobile banking app.
Overall, AU Small Finance Bank’s Q2 FY26 performance demonstrates its ability to adapt to changing market conditions and maintain growth momentum. The bank’s strong asset quality, healthy provision buffer, and robust capital position position it well to navigate the challenges ahead. With its focus on digital transformation and customer-centric approach, the bank is likely to continue its growth trajectory in the coming quarters.
AU Small Finance Bank Revises Valuation Following Shifts in the Competitive Banking Market
AU Small Finance Bank has recently undergone a valuation adjustment, providing insight into its current financial standing within the banking sector. The bank’s valuation metrics include a price-to-earnings (PE) ratio of 26.40 and a price-to-book value of 3.38. The PE ratio indicates the market’s expectation of the bank’s future earnings, while the price-to-book value reflects the bank’s net asset value. The bank’s PEG ratio, which takes into account its growth prospects, is recorded at 0.98, suggesting a balanced growth perspective relative to its earnings.
In terms of profitability, AU Small Finance Bank has demonstrated a return on equity (ROE) of 12.82% and a return on assets (ROA) of 1.38%. These metrics indicate the bank’s ability to generate profits from its equity and assets. The net non-performing assets (NPA) to book value ratio, which stands at 5.70%, provides insight into the bank’s asset quality. A lower NPA ratio generally indicates better asset quality, while a higher ratio may suggest potential problems with loan defaults.
When compared to its peers, AU Small Finance Bank’s valuation metrics present a mixed picture. For instance, Yes Bank has a PE ratio of 27.04, which is slightly higher than AU Small Finance Bank’s ratio. On the other hand, IDFC First Bank has a significantly higher PE ratio of 45.45, indicating a more premium valuation. IndusInd Bank and Federal Bank also have different valuation dynamics, reflecting the competitive environment in the midcap banking sector.
Overall, the valuation adjustment highlights AU Small Finance Bank’s financial metrics and market position amidst its peers. The bank’s relative standing in the industry is showcased through its valuation metrics, profitability, and asset quality. While the bank’s valuation metrics are competitive, its profitability and asset quality metrics suggest a stable financial position. As the banking sector continues to evolve, AU Small Finance Bank’s ability to maintain its financial performance and navigate the competitive landscape will be crucial to its long-term success.
Bandhan Bank, Equitas SFB, AU SFB, and Axis are expected to experience a decline in net interest margin, while RBL Bank is likely to defy this trend, according to a Q2 preview.
The second quarter (Q2) preview for several Indian banks suggests that Net Interest Margin (NIM) may decline for most of them, with RBL Bank being an exception.
Bandhan Bank’s NIM is expected to fall due to a rise in cost of funds and a marginal increase in yields on advances. The bank’s focus on granular deposits and its efforts to diversify its loan book may not be enough to offset the decline in NIM.
Equitas Small Finance Bank (SFB) is also likely to see a decline in NIM due to an increase in the cost of funds and a higher proportion of low-yielding assets. The bank’s strategy to expand its reach and improve operational efficiency may take some time to yield results.
AU Small Finance Bank (SFB) may experience a decline in NIM due to a rise in funding costs and a moderate increase in yields on assets. The bank’s efforts to improve its asset quality and reduce its cost-to-income ratio may not be sufficient to offset the decline in NIM.
Axis Bank’s NIM is expected to fall due to a rise in the cost of funds and a moderate increase in yields on advances. The bank’s focus on improving its asset quality and expanding its reach may not be enough to offset the decline in NIM.
On the other hand, RBL Bank is expected to be an outlier, with a potential increase in NIM due to a decline in the cost of funds and a rise in yields on advances. The bank’s efforts to improve its asset quality and expand its reach may yield positive results.
Overall, the Q2 preview suggests that most of these banks may face a decline in NIM due to various factors, including a rise in funding costs and a moderate increase in yields on assets. However, RBL Bank’s ability to manage its costs and improve its asset quality may help it stand out from its peers.
It’s worth noting that these predictions are based on current trends and may be subject to change based on various factors, including changes in the economic environment and the banks’ individual strategies. The actual performance of these banks may differ from the predicted outcomes.
The Q2 results will provide more clarity on the performance of these banks and the trends that may shape their future growth. Investors and analysts will be closely watching the results to gauge the impact of the current economic environment on the banking sector.
In conclusion, the Q2 preview for these Indian banks suggests a decline in NIM for most of them, with RBL Bank being an exception. The actual performance of these banks will depend on various factors, including their ability to manage costs, improve asset quality, and expand their reach.
Over 29,000 competitors from Rajasthan gather for the fifth annual AU Bano Champion sports tournament, a village-level competition held in Jaipur
AU Small Finance Bank (AU SFB), India’s largest Small Finance Bank, has successfully concluded the fifth edition of the AU Bano Champion Village-Level Sports tournament in Jaipur. The tournament saw participation from over 29,000 athletes from 60 locations, showcasing remarkable enthusiasm and emerging sporting talent. The AU Bano Champion program is a strategic CSR initiative of AU SFB aimed at nurturing a sporting culture across 75 rural and semi-urban regions of Rajasthan.
The program is designed to encourage youth participation, promote discipline and skill development, and provide structured training opportunities. Over the past editions, the initiative has produced more than 480 athletes who have gone on to represent at state and national levels. The closing ceremony was attended by bureaucrats, local authorities, and dignitaries, who commended AU Small Finance Bank’s efforts in driving community development through sports.
AU Small Finance Bank has recently received in-principle approval from the Reserve Bank of India (RBI) to transition into a Universal Bank. The bank has built a diversified retail banking model, offering services across deposits, loans, credit cards, investments, and insurance, supported by digital innovations. AU SFB has a wide network of 2,505 banking touchpoints across 21 States and 4 Union Territories, enabling service to more than 1.15 crore customers, powered by a workforce of 53,000+ employees.
The AU Bano Champion program is a testament to AU SFB’s commitment to community development and promoting sporting talent in rural and semi-urban areas. The program has been successful in identifying and nurturing young talent, providing them with opportunities to represent at state and national levels. The bank’s efforts in driving community development through sports have been recognized and appreciated by bureaucrats, local authorities, and dignitaries.
In conclusion, the fifth edition of the AU Bano Champion Village-Level Sports tournament was a resounding success, with over 29,000 athletes participating from 60 locations. The program has been successful in promoting sporting talent and community development in rural and semi-urban areas, and AU SFB’s commitment to this initiative is commendable. The bank’s transition into a Universal Bank is expected to further enhance its ability to serve its customers and promote community development.
Maintain ‘Buy’ on AU Small Finance Bank, says Motilal Oswal, citing attractive risk-reward profile — target price revealed
AU Small Finance Bank is poised to benefit from a combination of factors that make it an attractive investment opportunity. The bank is nearing the end of a challenging period, having navigated the stress in its Microfinance (MFI) and Cards segments. As it emerges from this phase, several key factors are expected to contribute to its growth and earnings.
Firstly, the bank is anticipated to see a recovery in credit costs. This improvement will be driven by a reduction in provisioning requirements, which have been elevated in recent times due to the stress in the MFI and Cards segments. As the quality of the bank’s loan book improves, it will lead to lower credit costs, thereby enhancing profitability.
Secondly, the bank’s margins are expected to expand. Margin expansion will be driven by a combination of factors, including an improvement in the yield on advances and a reduction in the cost of deposits. As the bank continues to build its franchise and improves its operational efficiency, it will be able to optimize its pricing, leading to higher margins.
Thirdly, loan growth is expected to pick up, driven by festival demand and the reduction in Goods and Services Tax (GST) rates. The festive season typically sees an increase in consumer spending, which in turn drives demand for loans. Additionally, the reduction in GST rates will lead to an increase in economic activity, which will further drive loan growth.
The transition of AU Small Finance Bank to a universal bank provides a strong foundation for long-term growth. As the bank continues to expand its product offerings and build its franchise, it will be able to tap into new business opportunities, leading to increased revenue and profitability. The bank’s ability to offer a wide range of products and services will enable it to deepen its relationships with customers, leading to increased loyalty and retention.
Overall, AU Small Finance Bank remains an attractive investment opportunity, given its strong growth prospects and improving earnings outlook. The bank’s ability to navigate the challenges in its MFI and Cards segments, combined with its expansion into new business areas, provides a strong foundation for long-term growth and profitability. As the bank continues to execute on its strategy, it is well-positioned to deliver strong returns to its investors. With its strong franchise, improving margins, and robust loan growth, AU Small Finance Bank is an attractive combination of growth and earnings.
Zaggle and AU Small Finance Bank collaborate to introduce co-branded credit and prepaid cards for retail customers
AU Small Finance Bank (AU SFB), India’s largest small finance bank, has partnered with Zaggle Prepaid Ocean Services Limited, a leading spend management company, to launch co-branded retail credit and prepaid cards. The partnership aims to provide customers with more value through smart spending tips, easy-to-earn rewards, and seamless tech-enabled experiences. The new retail credit card will be equipped with a unique Third-Party Application Provider (TPAP) integration and a personalized recommendation engine.
Beyond the retail credit card launch, AU SFB and Zaggle will develop a comprehensive commercial credit card portfolio, leveraging AU SFB’s underwriting expertise and Zaggle’s extensive enterprise network. Corporate customers will gain access to Zatix, Zaggle’s centralized SaaS platform, which provides real-time visibility, complete control, and actionable insights into corporate spending.
The partnership also includes a co-branded prepaid card program for corporate customers, supporting tax-saving benefits through multiple wallets across categories like fuels, meals, and gifts. This program will enable corporates to manage expenses and reimbursement tracking, and access support through the Zaggle mobile app.
The partnership is expected to deliver innovative, technology-led payment solutions that cater to both retail and corporate customers. AU SFB’s credit offerings will be complemented by Zaggle’s strong SaaS capabilities and extensive enterprise network. The collaboration is poised to deliver a powerful suite of financial products and platforms, tailored for India’s dynamic consumer and corporate ecosystem.
The founders of both companies expressed their excitement about the partnership, with Dr. Raj P Narayanam, Founder & Executive Chairman of Zaggle, stating that the partnership will empower businesses with greater spend visibility, enhanced compliance, and improved operational efficiency. Mr. Sanjay Agarwal, Founder, MD & CEO of AU Small Finance Bank, said that the partnership aligns perfectly with the bank’s vision of empowering both businesses and consumers through smarter, more efficient financial solutions.
Vimal Jain, the Chief Financial Officer of AU Small Finance Bank, has succumbed to a cardiac arrest, resulting in his untimely death.
AU Small Finance Bank’s Chief Financial Officer (CFO), Vimal Jain, has passed away due to a cardiac arrest. The news of his sudden demise has sent shockwaves throughout the banking and financial industry. Jain was a highly respected and experienced professional in the field of finance, with a career spanning over two decades.
During his tenure at AU Small Finance Bank, Jain played a crucial role in shaping the bank’s financial strategy and driving its growth. He was instrumental in leading the bank’s initial public offering (IPO) in 2017, which was a significant milestone in the bank’s history. Under his guidance, the bank has consistently demonstrated strong financial performance, with a focus on operational efficiency and risk management.
Jain’s contributions to the bank went beyond his financial expertise. He was known for his exceptional leadership skills, his ability to motivate and inspire his team, and his commitment to the bank’s mission and values. His passing has left a void in the organization, and he will be deeply missed by his colleagues and peers.
The banking industry has expressed its condolences and paid tribute to Jain’s memory. His passing is a reminder of the importance of health and wellness, particularly in high-stress professions like finance. Jain’s legacy will continue to inspire and motivate others in the industry, and his contributions to AU Small Finance Bank will not be forgotten.
AU Small Finance Bank has announced that it will be conducting a thorough investigation into the circumstances surrounding Jain’s death. The bank has also expressed its commitment to supporting Jain’s family during this difficult time. The news of Jain’s passing has sent a shockwave throughout the industry, and he will be remembered as a talented and dedicated professional who made significant contributions to the field of finance.
The bank’s management has stated that Jain’s passing will not impact the bank’s operations or its financial performance. The bank will continue to operate as usual, with its existing management team in place. However, the loss of Jain’s expertise and guidance will undoubtedly be felt, and the bank will need to find a suitable replacement to fill the void left by his passing.
Overall, Vimal Jain’s passing is a significant loss for AU Small Finance Bank and the banking industry as a whole. His contributions to the field of finance will be remembered, and his legacy will continue to inspire others. The industry will mourn the loss of a talented and dedicated professional, and his family and colleagues will deeply miss him.
Maximize Your Earnings: Explore Top Small Finance Options for Higher FD Returns
Fixed deposits (FDs) are a popular investment option for those seeking assured returns, with small finance banks offering higher interest rates than larger banks. These smaller banks provide competitive rates for short-term deposits, typically ranging from 1-3 years, making them an attractive option for investors. Some of the top small finance banks for FDs include Jana Small Finance Bank, Suryoday Small Finance Bank, and Utkarsh Small Finance Bank, offering interest rates of 7.77%, 7.75%, and 7.65%, respectively.
In comparison, larger banks like SBI offer lower interest rates, ranging from 6.25% to 6.45% for one- to three-year FDs. The higher interest rates offered by small finance banks make them an ideal option for investors seeking maximum returns on their investments. For example, a ₹1 lakh deposit in Jana Small Finance Bank can earn ₹7,770 annually, while the same deposit in SBI would earn ₹6,250 to ₹6,450 annually.
Other small finance banks, such as Equitas Small Finance Bank, ESAF Small Finance Bank, Ujjivan Small Finance Bank, and AU Small Finance Bank, also offer competitive interest rates, ranging from 7.1% to 7.6%. These rates provide annual returns ranging from ₹7,100 to ₹7,600 for a ₹1 lakh deposit, which is higher than what most traditional banks offer.
When investing in FDs with small finance banks, it’s essential to consider factors such as bank stability and reputation, credit ratings, deposit insurance cover, tenure, and liquidity options. While higher returns are attractive, experts recommend balancing higher interest with financial security to ensure safe and profitable investing. Small finance banks are particularly suitable for short-term deposits, as they offer higher returns than traditional banks and provide the flexibility to reinvest or withdraw quickly if needed.
In conclusion, small finance banks like Jana, Suryoday, Utkarsh, Equitas, ESAF, and Ujjivan offer attractive options for FDs, with higher interest rates than larger banks. However, it’s crucial to consider safety, credit ratings, and insurance cover before investing to ensure a secure and profitable investment. By choosing the right small finance bank and considering the necessary factors, investors can earn higher returns on their investments while minimizing risk.
AU Small Finance Bank receives preliminary approval from RBI for full-fledged banking licence, marking the first such approval in a decade
The Reserve Bank of India (RBI) has granted AU Small Finance Bank an in-principle approval for a universal bank licence, marking the first such approval in 10 years. This development is significant, as it paves the way for AU Small Finance Bank to expand its operations and offer a wider range of banking services to its customers.
AU Small Finance Bank, which started operations in 2017 as a small finance bank, has been looking to upgrade its licence to a universal bank licence. The bank has been working towards meeting the RBI’s requirements for a universal bank licence, which includes increasing its net worth, expanding its branch network, and improving its technology and risk management systems.
The in-principle approval from the RBI is subject to certain conditions, which AU Small Finance Bank will need to fulfill within a specified timeframe. The bank will need to meet the RBI’s requirements on capital adequacy, asset quality, and governance, among other things.
The granting of a universal bank licence to AU Small Finance Bank is a notable development, as it marks the first time in 10 years that the RBI has given such an approval. The last time the RBI granted a universal bank licence was in 2014, when it gave licences to IDFC Bank and Bandhan Bank.
The approval is also seen as a positive development for the banking sector, as it will allow AU Small Finance Bank to expand its operations and offer a wider range of banking services to its customers. The bank will be able to offer services such as credit cards, investment banking, and insurance, in addition to its existing services.
The upgrade to a universal bank licence will also enable AU Small Finance Bank to compete more effectively with other banks in the country. The bank has been growing rapidly, with its assets under management increasing significantly over the past few years. The granting of a universal bank licence is expected to further accelerate the bank’s growth and expansion plans.
Overall, the in-principle approval from the RBI is a significant development for AU Small Finance Bank, and is expected to have a positive impact on the banking sector. The bank will need to work towards meeting the RBI’s conditions and requirements, but the approval marks an important milestone in its journey towards becoming a universal bank.
AU Small Finance Bank Enhances Offerings for Small to Medium-Sized Enterprises and Service-Based Businesses
AU Small Finance Bank (AU SFB), India’s largest Small Finance Bank, has launched a dedicated Business Banking Branch at Parrys Corner, Chennai, a prominent wholesale trading hub. This initiative aims to support Small and Medium Enterprises (SMEs) and service-led enterprises with specialized and technology-enabled financial services. The branch, located in the commercial heart of North Chennai, will provide high-touch banking services to the city’s thriving business ecosystem.
The Parrys Corner branch was inaugurated by senior officials of AU SFB and offers a range of comprehensive business banking services, including loans, credit lines, business accounts, trade services, payments and collections services, investment advice, payroll and vendor management services. The branch is designed to be a one-stop shop for businesses, enabling efficient and speedy financial management.
Key offerings at AU SFB’s Business Banking branches include current accounts, payments and collections solutions, trade and forex solutions, business lending and working capital finance, digital banking, supply chain and vendor financing, and relationship management and advisory services. The bank’s relationship-led and tech-enabled banking approach is expected to support the growth of local enterprises in Chennai.
According to Mr. Uttam Tibrewal, Executive Director and Deputy CEO of AU Small Finance Bank, the launch of the Business Banking Branch at Parrys Corner reinforces the bank’s commitment to supporting India’s SME sector. The bank aims to be a trusted banking partner in the growth journey of every business it serves, offering inclusive, flexible, and business-centric banking solutions.
With over 2,505 banking touchpoints across India, AU SFB continues to expand its presence in Tamil Nadu, offering a range of banking services to SMEs and other businesses. The bank’s expansion in South India is expected to support the growth of local enterprises and contribute to the region’s economic development. Overall, the launch of the Business Banking Branch at Parrys Corner is a significant step towards supporting the SME sector in India and promoting economic growth and development.
AU Small Finance Bank receives Reserve Bank of India’s preliminary nod to upgrade to ‘universal bank’ status – View full details on MSN
AU Small Finance Bank has received an “in-principle” approval from the Reserve Bank of India (RBI) to transition into a “universal bank” status. This approval is a significant milestone in the bank’s journey, as it paves the way for the lender to expand its scope of operations and offer a wider range of financial services to its customers.
As a universal bank, AU Small Finance Bank will be able to provide a broader range of banking and financial services, including corporate and investment banking, treasury operations, and credit card services, in addition to its existing offerings. This will enable the bank to cater to the diverse needs of its customers, including individuals, small businesses, and large corporations.
The “in-principle” approval is subject to certain conditions, which the bank needs to fulfill within a stipulated timeframe. Once these conditions are met, the bank will be granted a license to operate as a universal bank. The RBI’s approval is a testament to AU Small Finance Bank’s strong financials, robust risk management practices, and commitment to serving the unbanked and underbanked segments of the population.
AU Small Finance Bank has a strong presence in rural and semi-urban areas, with a network of over 700 branches and more than 1.5 million customers. The bank’s business model is focused on serving the financial needs of small businesses, farmers, and low-income households, who have limited access to formal banking channels. With its transition to a universal bank, AU Small Finance Bank aims to expand its customer base and offer a more comprehensive range of financial services to its existing customers.
The bank’s management has expressed its gratitude to the RBI for the approval and has stated that it is committed to meeting the conditions laid down by the regulator. The bank is expected to invest heavily in technology and infrastructure to support its expansion plans and improve its operational efficiency.
In conclusion, AU Small Finance Bank’s “in-principle” approval to transition into a universal bank status is a significant development that will enable the bank to expand its scope of operations and offer a wider range of financial services to its customers. The bank’s commitment to serving the unbanked and underbanked segments of the population remains unchanged, and it is expected to continue to play a vital role in promoting financial inclusion in India. With its strong financials and robust risk management practices, AU Small Finance Bank is well-positioned to capitalize on the opportunities presented by its transition to a universal bank.
AU Small Finance Bank joins forces with SBI Life Insurance to expand insurance reach and availability
AU Small Finance Bank (AU SFB), India’s largest small finance bank, has formed a strategic partnership with SBI Life Insurance to expand access to comprehensive insurance solutions across the country. This collaboration aims to support the government’s mission of “Insurance for All by 2047” by providing financial protection to underserved and emerging markets in India. Through this partnership, AU SFB will distribute SBI Life’s range of life insurance products, including protection, savings, and investments, across its extensive network of over 2,505 banking touchpoints in 21 states and four union territories.
The partnership seeks to leverage AU SFB’s robust network and SBI Life’s comprehensive insurance portfolio to provide customers with a unified banking and insurance experience. This integration will enable customers to meet their diverse protection and long-term financial planning needs, while also strengthening outreach efforts in urban, semi-urban, and rural markets. The collaboration will also utilize AU SFB’s digital platforms and customer engagement channels to deliver a simplified, transparent, and accessible insurance journey.
According to Uttam Tibrewal, executive director and deputy CEO of AU Small Finance Bank, the partnership with SBI Life Insurance reinforces their commitment to delivering reliable and need-based insurance solutions to diverse communities across India. The partnership aims to drive financial inclusion and secure a better future for millions of people. Abhijit Gulanikar, president of business strategy at SBI Life Insurance, stated that the partnership with AU SFB is a strategic step towards increasing insurance adoption across India, particularly in rural areas.
The partnership between AU SFB and SBI Life Insurance is expected to have a significant impact on the insurance landscape in India. By combining their strengths, the two institutions aim to provide protection to millions of households, bringing them closer to the goal of “Insurance for All by 2047”. The partnership will also contribute to the government’s mission of promoting financial inclusion and securing the financial well-being of citizens across the country. Overall, the collaboration between AU SFB and SBI Life Insurance is a positive step towards expanding access to insurance solutions and promoting financial security for all.
AU Small Finance Bank sets up four traffic police booths to enhance road safety in Bhubaneswar.
AU Small Finance Bank (AU SFB), India’s largest small finance bank, has launched an initiative to support the Bhubaneswar Traffic Police by installing four fully equipped police booths at key junctions in the city. The booths, located at Kesura Chowk, Garage Chowk, Palasuni, and Rajmahal Square, are designed to improve traffic management, enforcement, and promote safer commuting experiences for the public. Each booth is equipped with amenities such as seating arrangements, fans, and public announcement systems, which will enable traffic personnel to monitor traffic in real-time, respond quickly to emergencies, and disseminate important road safety messages.
This initiative is part of AU SFB’s Corporate Social Responsibility (CSR) program, which aims to create safer and more efficient roads in urban, semi-urban, and rural areas. The bank has previously partnered with traffic police departments in Madhya Pradesh, Rajasthan, and Uttar Pradesh to upgrade basic infrastructure and support law enforcement and civic administration.
Through its CSR arm, AU Foundation, the bank focuses on three key areas: skill development and placement assistance, grassroots sports development, and women empowerment. The foundation’s initiatives have had a significant impact, with over 29,500 youth trained and 22,000 job placements achieved through the AU Ignite program. The Bano Champion Program has impacted over 8,000 rural children through sports training, while the AU Udyogini program has empowered over 4,000 women across 33 districts in Rajasthan and Madhya Pradesh.
The bank’s commitment to social responsibility is also reflected in its AU Kartavya program, which addresses diverse social needs, including healthcare, education, environment, and community development. By supporting the Bhubaneswar Traffic Police and investing in community development initiatives, AU SFB is reinforcing its position as a responsible and community-focused institution. Overall, the bank’s efforts aim to make a positive impact on the lives of people in the communities it serves, while promoting safer and more efficient roads for all.
The Growing Significance of Savings Accounts with Attractive Interest Rates
As we enter the second half of 2025, it’s essential to reassess our financial strategy, particularly our savings account. A well-chosen savings account can play a crucial role in our overall financial well-being, helping our money grow. Not all savings accounts are equal, with many traditional bank accounts offering minimal interest that barely offsets inflation. In contrast, AU Small Finance Bank offers interest rates of up to 6.75% p.a., ensuring that idle funds generate real value.
What sets AU Small Finance Bank apart is its monthly interest payout feature. Unlike most banks that credit interest quarterly, AU Small Finance Bank credits interest every month, providing quicker access to returns and enabling better cash flow management throughout the year. This feature offers several benefits, including improved liquidity, a compounding edge, and predictable income. Monthly interest payouts can be reinvested sooner, potentially generating higher returns over time, and can provide a steady stream of supplementary income, particularly beneficial for retirees, freelancers, or anyone seeking a predictable income.
AU Small Finance Bank’s savings account is more than just a place to park funds; it’s a feature-rich banking experience designed to support lifestyle and goals. The key benefits include high interest rates, monthly interest credit, instant digital account opening, and customized account options for individuals, families, senior citizens, and NRIs. The bank also offers easy account management through its app and net banking, as well as extended banking benefits to family members.
As part of a mid-year financial check, it’s essential to ask yourself if you’re earning the best possible interest on your savings, if you have the flexibility to manage your account on-the-go, and if you’re receiving added lifestyle or family benefits from your bank. If not, it may be time to upgrade to a better banking experience. AU Small Finance Bank empowers individuals to make more of their savings by offering high returns, digital ease, personalized solutions, and everyday rewards. By choosing a banking partner that gives you more – more interest, more access, and more control – you can move beyond basic banking and achieve your financial goals.
Ten banks, including SBI and Bank of Baroda, witnessed a drop in non-performing assets (NPAs) in Q4, sparking revival hopes
The Q4 FY25 results season has come to a close, and an analysis by Trendlyne has revealed that 10 banks from the Nifty500 index have reported a decline in their non-performing assets (NPAs) for the quarter ending March 2025. These banks include some of the major players in the Indian banking sector, such as State Bank of India (SBI), Bank of Baroda, Canara Bank, and AU Small Finance Bank.
A decline in NPAs is a positive sign for banks, as it indicates a reduction in the amount of loans that are not being repaid. This can lead to a decrease in provisions for bad debts and an improvement in the overall asset quality of the bank. The reduction in NPAs can also free up capital for banks to lend more, which can help stimulate economic growth.
The improvement in NPAs is a result of the efforts made by banks to recover dues and reduce their exposure to stressed assets. The Indian government and the Reserve Bank of India (RBI) have also taken various measures to help banks tackle the NPA problem, such as the introduction of the Insolvency and Bankruptcy Code (IBC) and the setting up of the National Company Law Tribunal (NCLT).
The decline in NPAs is a significant development, as it indicates that the Indian banking sector is gradually recovering from the NPA crisis that had affected it in the past. The reduction in NPAs can also lead to an improvement in the profitability of banks, as they will have to make lower provisions for bad debts.
The 10 banks that reported a decline in NPAs are:
1. State Bank of India (SBI)
2. Bank of Baroda
3. Canara Bank
4. AU Small Finance Bank
The other 6 banks are also major players in the Indian banking sector. The decline in NPAs is a positive sign for the Indian banking sector, and it is expected that this trend will continue in the coming quarters. The improvement in NPAs is a result of the efforts made by banks to recover dues and reduce their exposure to stressed assets.
The reduction in NPAs can also lead to an improvement in the credit growth of banks, as they will have more capital to lend. This can help stimulate economic growth and lead to an improvement in the overall financial health of the country. Overall, the decline in NPAs is a significant development, and it is expected that the Indian banking sector will continue to recover from the NPA crisis in the coming quarters.
AU Small Finance Bank Joins Forces with IFC to Embed Climate Resilience into its Banking Operations
AU Small Finance Bank (AU SFB) has partnered with the International Finance Corporation (IFC) to integrate climate risk considerations into its core banking framework. The initiative aims to strengthen the bank’s resilience to climate-related financial risks and align with evolving regulatory expectations and global standards. The partnership will help AU SFB embed environmental considerations into its governance, strategic planning, risk management processes, and ESG disclosures.
The climate risk advisory program involves three key components: Physical Risk Assessment, Transition Risk Assessment, and Financed Emissions Calculation. The Physical Risk Assessment will evaluate the bank’s loan portfolio exposure to hazards like floods, droughts, and extreme weather, using IPCC climate scenarios and projections. The Transition Risk Assessment will analyze financial risks linked to policy, market, and technological changes as India moves toward a low-carbon economy. The Financed Emissions Calculation will measure financed emissions across corporate loans, SME finance, real estate, and sovereign bonds.
The initiative is supported by the Government of Japan and is being implemented in collaboration with climate risk solutions firm StepChange. AU SFB’s Founder, MD & CEO, Sanjay Agarwal, emphasized that the partnership marks a key step in the bank’s sustainability journey and reflects its commitment to responsible banking and creating sustainable value. The bank has already demonstrated progress in this area through initiatives like its Green Fixed Deposit product, which has raised ₹1,178 crore for investments in renewable energy and clean transportation.
The partnership with IFC will help AU SFB strengthen its climate resilience and ensure long-term financial inclusion. The bank has already achieved a low-risk ESG rating of 17.1 from Sustainalytics and an AA rating in the MSCI ESG assessment. By integrating climate risk considerations into its core banking framework, AU SFB is taking a proactive approach to managing climate-related risks and opportunities, and is well-positioned to support India’s transition to a low-carbon economy. Overall, the initiative is a significant step towards promoting sustainable banking practices and reducing the bank’s environmental footprint.
AU Small Finance Bank Acquires Mumbai’s Bandra Vishwas Tower in Rs 371 Crore Deal
AU Small Finance Bank has acquired the Bandra Vishwas Tower in Mumbai for a whopping Rs 371 crore. This purchase marks a significant expansion of the bank’s presence in the country’s financial capital. The Bandra Vishwas Tower, located in the heart of Mumbai, is a prime commercial property that offers ample space for the bank to establish its operations.
The acquisition is part of AU Small Finance Bank’s strategy to strengthen its footprint in the financial services sector. The bank, which was founded in 1996, has been steadily growing its operations and expanding its reach across the country. With this purchase, the bank aims to enhance its visibility and accessibility in Mumbai, which is a key market for financial services.
The Bandra Vishwas Tower is a modern commercial building that offers state-of-the-art infrastructure and amenities. The property spans over 70,000 square feet and is equipped with advanced security systems, high-speed elevators, and ample parking space. The building is strategically located, with easy access to major transportation hubs and business districts.
The acquisition of the Bandra Vishwas Tower is expected to provide a significant boost to AU Small Finance Bank’s operations in Mumbai. The bank plans to use the property to establish a new branch, as well as to house its corporate offices and other support functions. The bank’s management believes that the new location will enable it to better serve its customers and expand its business in the region.
The purchase of the Bandra Vishwas Tower is also seen as a significant investment in the bank’s long-term growth strategy. The property is expected to appreciate in value over time, providing a potential source of revenue for the bank. Additionally, the acquisition is expected to enhance the bank’s brand visibility and reputation in the market, which could lead to increased business opportunities and customer acquisition.
Overall, the acquisition of the Bandra Vishwas Tower is a significant milestone for AU Small Finance Bank, marking a major expansion of its operations in Mumbai. The purchase is expected to provide a boost to the bank’s business and support its long-term growth strategy. With its strong presence in the financial services sector, AU Small Finance Bank is well-positioned to capitalize on the growing demand for banking and financial services in India.
Building a Future-Ready Workforce: Insights from AU Small Finance Bank’s Head of HR – peoplematters.in
Rajeev Vig, Head of Human Resources at AU Small Finance Bank, emphasized the importance of building a future-ready workforce in a recent interview. According to Vig, the key to achieving this goal is to focus on upskilling and reskilling employees to keep pace with the rapidly changing business landscape.
The bank, which has undergone significant transformation since its inception, has made substantial investments in employee development programs. Vig highlighted that the organization’s approach to building a future-ready workforce is centered around four core pillars: learning and development, performance management, talent acquisition, and employee engagement.
To develop a culture of continuous learning, the bank has introduced various initiatives such as digital literacy programs, leadership development initiatives, and industry-specific training sessions. These programs aim to enhance employees’ skills and knowledge, enabling them to adapt to new technologies and evolving customer expectations.
Vig also emphasized the significance of performance management in driving business outcomes. The bank has implemented a robust performance management system that focuses on setting clear goals, providing regular feedback, and recognizing employee achievements. This approach helps identify areas for improvement and provides opportunities for employees to develop new skills.
In terms of talent acquisition, the bank adopts a strategic approach to attract and retain top talent. Vig highlighted that the organization looks for candidates with a growth mindset, who are willing to learn and adapt to changing business needs. The bank also focuses on promoting diversity and inclusion, recognizing that a diverse workforce brings unique perspectives and ideas.
Employee engagement is another critical aspect of building a future-ready workforce. The bank has implemented various initiatives to foster a positive work culture, including employee recognition programs, wellness initiatives, and open communication channels. Vig emphasized that engaged employees are more likely to be motivated, productive, and committed to driving business success.
In conclusion, AU Small Finance Bank’s approach to building a future-ready workforce is centered around creating a culture of continuous learning, driving performance, attracting and retaining top talent, and fostering employee engagement. By focusing on these key areas, the bank aims to develop a workforce that is equipped to navigate the challenges of a rapidly changing business environment and drive long-term success. As Vig noted, “The future of work is all about being agile, adaptable, and responsive to changing customer needs.” By prioritizing the development of its employees, AU Small Finance Bank is well-positioned to thrive in an increasingly competitive and dynamic market.
Boost your savings! Certain banks are now offering higher FD interest rates of up to 9.10% – find out which banks are leading the pack!
The recent repo rate cut by the Reserve Bank of India (RBI) has led to a reduction in fixed deposit (FD) interest rates by big banks such as SBI, HDFC, ICICI, and Yes Bank. However, some small finance banks are still offering attractive interest rates of up to 9.10% to senior citizens. This presents a good opportunity for senior citizens to invest in fixed deposits and earn risk-free returns.
Small finance banks such as Unity Small Finance Bank, Suryoday Small Finance Bank, Jana Small Finance Bank, Equitas Small Finance Bank, and AU Small Finance Bank are offering high interest rates on FDs. For instance, Unity Small Finance Bank is offering 9.10% interest on a 1001-day deposit, while Suryoday Small Finance Bank is offering 9.10% interest on a 5-year deposit. Similarly, Jana Small Finance Bank is offering 8.75% interest on a 2-3 year deposit, and Equitas Small Finance Bank is offering 8.55% interest on an 888-day deposit.
Senior citizens can benefit from these schemes as they offer special interest rates that are higher than what is being offered by big banks. However, before investing, it is essential to ensure that the bank is authorized by the RBI and has a Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance cover of up to Rs 5 lakh. Additionally, it is crucial to understand that these special interest rates may be for a limited period, and it is necessary to thoroughly understand all the rules and regulations before investing.
In conclusion, small finance banks are offering attractive interest rates on fixed deposits, providing senior citizens with an opportunity to earn high returns on their investments. With interest rates ranging from 8% to 9.10%, these schemes are an excellent option for those looking for risk-free returns. By doing their research and ensuring that the bank is reputable and offers the necessary insurance cover, senior citizens can take advantage of these high-interest FD schemes and secure their financial future.
AU Small Finance Bank anticipates reduced credit expenses and enhanced profitability in the fiscal year 2026.
Sanjay Agarwal, the Founder, MD & CEO of AU Small Finance Bank, expressed cautious optimism about the bank’s growth prospects for FY26. Despite the challenges faced in FY25, including a tough business environment and liquidity issues, Agarwal believes that the bank is well-prepared for the current financial year. He attributes this preparedness to the regulator’s focus on growth and the government’s efforts to address liquidity concerns.
Regarding margins, Agarwal expects some improvement, but cautions that it may not happen immediately. He predicts that interest rates on the wholesale side will ease, but this may not translate to higher margins due to the need to offer competitive rates to attract deposits. Agarwal notes that the bank’s small size means it has to price its products 25 basis points higher than larger lenders, which can impact margins.
On asset quality, Agarwal is optimistic that credit costs will come down in FY26. He expects the bank’s retail asset credit cost to decrease from 0.90% to 0.8%, and commercial banking credit cost to decrease from 0.4% to 0.3%. Microfinance credit cost is also expected to improve, with a forecast of 4% for FY26, down from 7.7% in the previous year.
Agarwal attributes the expected improvement in asset quality to the bank’s preparedness and the anticipated pick-up in economic growth. He believes that the worst of the stress in the microfinance sector is behind them, and that the bank has accounted for potential issues in its planning.
When asked about growth prospects, Agarwal declined to provide specific numbers, citing the need to wait and watch the economic environment. However, he suggested that the bank will grow at least twice the nominal GDP growth rate, implying double-digit growth. He also clarified that the issues in Karnataka, which account for 10% of the bank’s book, are under control, with recovery rates improving to 98% in March.
Overall, Agarwal’s outlook for FY26 is cautious, but optimistic. He believes that the bank is well-prepared to navigate the challenges ahead, and that credit costs will come down, leading to an improvement in return on assets. While he is circumspect about providing specific growth targets, he expects the bank to deliver double-digit growth, driven by an anticipated pick-up in economic activity.
AU Bank scores a windfall, securing ₹770 crore through the sale of tier-II bonds.
AU Small Finance Bank has successfully raised ₹770 crore through the sale of tier-II bonds, with an annual coupon of 9.20%. The funding, which saw investments from reputable entities such as HDFC Bank, Nippon India Mutual Fund, insurance companies, and pension funds, is expected to boost the bank’s capital adequacy ratio by approximately 1% to 19.9%.
The proceeds from the bond issue will be used to fuel the bank’s future growth, enabling the bank to extend its digitally powered banking products and services across the country. According to AU Bank’s managing director, Sanjay Agarwal, the fundraising will be instrumental in boosting the bank’s growth trajectory and supporting its expansion plans.
As of the third quarter, the bank’s total loan portfolio stood at ₹1.09 lakh crore, while its deposit base stood at ₹1.12 lakh crore. The successful bond issuance is a testament to the bank’s financial stability and its ability to attract reputable investors.
The injection of funds is expected to have a positive impact on the bank’s operations, enabling it to expand its offerings, improve its services, and increase its geographical footprint. The bank’s commitment to leveraging technology to drive its business is also likely to receive a boost, as it looks to further digitize its operations and offerings.
Overall, AU Small Finance Bank’s successful bond issuance is a significant milestone in its growth journey, and the bank is well-positioned to continue its rapid expansion and growth.
Tight liquidity tests HDFC Bank’s mettle, even with the backing of Nippon Anchor.
AU Small Finance Bank (AU SFB) has successfully raised ₹770 crore through the issuance of Tier-II bonds at a 9.20% coupon rate, led by HDFC Bank and Nippon India Mutual Fund. This is one of the largest Tier-II bond issuances by a small finance bank in India. The transaction, executed on the final working day of FY 2024-25, signals strong investor appetite in India’s small finance bank sector, particularly amid a tight liquidity cycle.
The issuance received robust interest from qualified institutional buyers (QIBs), with anchor investors HDFC Bank and Nippon India Mutual Fund supporting the transaction. The bond issue was oversubscribed nearly 2X, with AU SFB ultimately accepting ₹770 crore in bids. This funding will enhance the bank’s capital adequacy ratio, building on its already strong capital position.
The successful issuance reflects investor trust in AU SFB’s banking franchise and the strength of its capital planning. The bank’s leadership believes that this transaction will power its expansion plans and support its digitally led banking services across India. AU SFB’s CEO, Sanjay Agarwal, expressed gratitude to investors for their continued faith in the bank and acknowledged HDFC Bank’s support.
This capital infusion marks a significant milestone in AU SFB’s strategic capital planning, following its last capital raise in August 2022. The bank has now mobilized over ₹1,200 crore in Tier-II capital in less than three years, enabling it to continue expanding its footprint in underserved and semi-urban markets. With this capital, AU SFB is well-positioned to further its vision of inclusive, technology-driven financial services in India.
AU Small Finance Bank Successfully Completes Impressive ₹770 Crore Tier-II Bond Issue Amidst Challenging Liquidity Conditions
AU Small Finance Bank (AU SFB), India’s largest small finance bank, has successfully completed a capital raise of ₹770 crores through the issuance of Tier-II bonds at a coupon of 9.20%. This fund raise is expected to increase the capital adequacy ratio of the bank by nearly 1%. The bank’s overall capital adequacy ratio stood at 19.9% as of Q3’FY25, including interim profits for 9M’FY25.
The capital raise saw strong participation from Qualified Institutional Buyers (QIBs), including mutual funds, insurance companies, and pension funds. HDFC Bank was the lead manager for the issue and was also the anchor investor, along with Nippon India Mutual Fund. The issuance received an overwhelming response, with subscription of approximately twice the base issue.
The bonds issued have a 10-year maturity, with a call option exercisable after 5 years from the date of issuance. The issue is rated ‘AA/Stable’ by ICRA & CARE. AU SFB’s Founder, MD, and CEO, Sanjay Agarwal, expressed his gratitude to investors for their faith in the bank and its long-term partner HDFC Bank.
The successful completion of this capital raise is a testament to the strength of AU SFB’s banking franchise and the confidence of its investors. The issue proceeds will boost the bank’s future growth trajectory and enable it to extend its digitally powered banking products and services across the country. AU SFB has a history of evaluating its capital position as per its business growth plans and had last done a capital raise in August 2022 for a total capital of ₹2,500 crores.
AU Small Finance Bank secures a funding boost of Rs 770 crore from a consortium of investors, led by HDFC Bank.
AU Small Finance Bank has successfully raised Rs 770 crore by issuing tier-II bonds at a coupon of 9.20% per annum. The bond issue was subscribed by a range of investors, including HDFC Bank, Nippon India Mutual Fund, and other insurance companies and pension funds. The net proceeds from the issue are expected to increase the bank’s capital adequacy ratio by approximately 1%, from 19.9% at the end of December last year.
According to Sanjay Agarwal, Managing Director of AU Bank, the issue proceeds will accelerate the bank’s growth trajectory and enable it to extend its digitally powered banking products and services across the country. At the end of the third quarter, the bank’s total loan portfolio stood at Rs 1.09 lakh crore, while its deposit base was Rs 1.12 lakh crore.
The successful bond issue is a significant milestone for AU Small Finance Bank, which has been expanding rapidly in recent years. The bank’s small size and limited capital base had previously restricted its growth. However, with this capital raise, the bank is now poised for further expansion, leveraging its already strong deposit base and lending platform.
AU Bank’s tier-II bond issue is also a testament to the bank’s ability to attract a diverse range of investors, including prominent financial institutions and insurance companies. This demonstrates the bank’s credibility and attractiveness to institutional investors, which is likely to have a positive impact on its reputation and growth prospects.
Overall, the successful bond issue is a significant step forward for AU Small Finance Bank, providing the necessary capital to support its future growth and expansion plans.
AU Small Finance Bank secures Rs 770 crore funding through Tier-II bond issuance, reports The Week.
AU Small Finance Bank (AU SFB) has successfully raised Rs 770 crore through Tier-II bonds to fund its business growth. The bonds have a 10-year maturity and a coupon rate of 9.20% per annum. This capital raise is expected to increase the bank’s capital adequacy ratio by about 1%. Despite facing adverse market conditions, AU SFB has achieved one of the largest bond issuances by any small finance bank.
The bank’s overall capital adequacy ratio as of the third quarter of FY25, including interim profits for nine months, stands at 19.9%. This indicates that the bank remains well-capitalized. The latest capital raise follows a previous one in August 2022, where the bank raised Rs 2,500 crore, comprising of Rs 2,000 crore in Tier I capital and Rs 500 crore in Tier II capital.
The successful fund raise demonstrates the bank’s ability to navigate challenging market conditions and access capital despite tight liquidity. The Jaipur-based lender is expanding its capital base to support its growth plans, and this capital infusion is expected to support the bank’s future business initiatives. The deal closed on the last working day of 2024-25, marking a significant milestone for the bank’s capitalization. Overall, the bank’s capitalization and gearing position it for future growth and expansion.
AU Small Finance Bank fetches 770 crores via a Tier-II bond issue
AU Small Finance Bank (AU SFB), a leading small finance bank in India, has successfully raised Rs 770 crore through Tier-II bonds to fund its business growth. The bonds, which have a 10-year maturity, carry a coupon rate of 9.20% per annum. This fund raise is expected to increase the bank’s capital adequacy ratio by about 1%. The bank’s overall capital adequacy ratio currently stands at 19.9%, which is considered well-capitalized, as per reports.
The bank’s recent capital raise is significant, especially considering the adverse market conditions prevailing at the time of the deal’s closure on the last working day of 2024-25. The market was experiencing tight liquidity, making it challenging for banks to raise funds. Despite these challenges, AU SFB has successfully issued bonds, making it one of the largest bond issuances by a small finance bank in recent times.
In August 2022, the bank had last raised capital, securing Rs 2,500 crore in Tier I and Tier II capital, comprising Rs 2,000 crore in Tier I capital and Rs 500 crore in Tier II capital. With this latest capital raise, the bank has now raised a total of Rs 2,270 crore in the last two years.
The bank’s success in raising capital demonstrates its ability to capitalize on opportunities and navigate challenging market conditions. As a small finance bank, AU SFB plays a vital role in India’s financial landscape, providing financial services to underserved communities. The bank’s continued ability to raise capital will enable it to expand its operations, increase lending, and improve its ability to support the Indian economy.
According to sources, AU Small Finance Bank is planning to issue Tier II bonds, market insiders claim — TradingView News
India’s AU Small Finance Bank (AUBANK) plans to issue 8 billion rupees ($93.34 million) in bonds, with an option to raise an additional 4 billion rupees, through the sale of 10-year Tier II bonds. The bonds will have a coupon rate of 9.20% per annum and a call option at the end of 5 years. The bank is inviting commitment bids from bankers and investors on Thursday.
AUBANK is not the only issuer in the market today, as multiple deals have been reported, including issues by Axis Finance, IIFCL, IRFC, HDB Financial, and NaBFID, among others. The deals vary in tenure, coupon rates, and issue sizes, with some having a greenshoe option. For instance, IRFC is issuing 30 billion rupees in bonds with a 7.17% coupon rate, while Axis Finance is issuing 5.35 billion rupees with a 7.97% coupon rate.
The Indian credit rating agencies, such as Icra, Care, and India Ratings, have assigned high ratings to many of these deals, indicating a high level of creditworthiness. For example, AUBANK’s 10-year bonds have been rated AA by Icra and Care, while IRFC’s 10-year bonds have been rated AA by Crisil, Icra, and Care. HDB Financial’s 2-year bonds have been rated AAA by Crisil and Care, among others.
It’s worth noting that the interest rates on these bonds are significantly higher than those available on traditional fixed deposits in India, making them an attractive option for investors looking for a relatively safe and lucrative investment opportunity. Overall, the Indian bond market is expected to remain active in the coming days, with various issuers seeking to raise capital through debt placement.
Goldman Sachs endorses AU Small Cap Fund’s prospects, predicting strong earnings growth will outpace its peers over the next few years.
Goldman Sachs has maintained its “Buy” rating on AU Small Finance Bank Ltd., despite lowering its target price to Rs 796 from Rs 813. The bank is seen as an attractive “Growth at a Reasonable Price” play due to its robust earnings growth profile, which is expected to outpace its peers over the next few years. The brokerage firm believes that the current valuation presents an opportunity for investors, as the bank’s strong earnings growth prospects from FY2025-2027 will likely outperform the Bank Nifty index.
AU Small Finance Bank has underperformed the Bank Nifty index recently, primarily due to concerns over profitability amid macroeconomic challenges and concerns related to its microfinance and credit card portfolios. However, Goldman Sachs is optimistic that the bank’s current valuation is attractive, with a strong return on assets (ROA) and return on risk-weighted assets (RORWA) expected in FY2025. The brokerage firm also believes that if the bank secures a universal banking license, it could address regulatory concerns and strengthen investor confidence.
Goldman Sachs expects AU Small Finance Bank to start delivering strong growth in the second half of FY2026, as loan losses related to its microfinance and credit card portfolios peak. For FY2025-2027, the bank is forecasted to achieve 31% earnings growth, outperforming the 28% consensus estimate, with an average ROA of 1.6% and ROE of 15%. Overall, Goldman Sachs sees a strong risk-reward scenario for the bank, making it a good investment opportunity for investors.
Senior Citizens’ FD Offer: Take advantage of 9.10% interest rates on Fixed Deposits from these top banks, find out more details here!
Fixed Deposits (FDs) have been a popular investment option in India for many years, particularly among senior citizens. This is because FDs are considered to be a safe and secure way to invest, with a high return on investment. Senior citizens can earn higher interest rates than normal citizens, typically around 0.5% more, making it an attractive option for those looking to generate a steady income post-retirement.
Banks and non-banking financial companies (NBFCs) offer FDs with interest rates ranging from 2.50% to 9.10% for a period of 7 days to 10 years. Many private banks offer interest rates up to 7%, while some NBFCs offer 9% interest on FDs. This makes FDs a lucrative option for those seeking a high return on investment.
Top banks and NBFCs in India offer FD rates as follows:
* Public Sector Banks: Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, State Bank of India, and Union Bank of India offer interest rates ranging from 7.75% to 7.95%.
* Private Sector Banks: Axis Bank, Bandhan Bank, DBS Bank, HDFC Bank, ICICI Bank, and Yes Bank offer interest rates ranging from 7.75% to 8.25%.
* Small Finance Banks: AU Small Finance Bank, Jan Small Finance Bank, North East Small Finance Bank, Unity Small Finance Bank, and Utkarsh Small Finance Bank offer interest rates ranging from 8.40% to 9.10%.
FDs provide several benefits to senior citizens, including the option to withdraw the full or partial amount before maturity, as well as the option to renew the FD once it matures. Additionally, the Deposit Insurance and Credit Guarantee Corporation (DICGC) provides insurance coverage up to Rs 5 lakh on deposits with participating banks. With a minimum investment requirement as low as Rs 100, FDs are an accessible and secure investment option for senior citizens.
7 Top-Notch Small Finance Banks Offering Attractive Fixed Deposit Interest Rates
The Reserve Bank of India (RBI) has established a special sector of the banking industry, known as small finance banks, which aims to promote financial inclusion for underserved segments of the economy. These banks are designed to provide access to banking services for micro and small businesses, small and marginal farmers, unorganized sector entities, and small business units that are not currently served by mainstream banks.
The RBI has licensed several small finance banks in India, which operate under the regulatory framework of the RBI. These banks offer a range of services, including deposit accounts, credit, and other financial products. One of the key features of small finance banks is their ability to offer fixed deposit (FD) accounts, which can help individuals and businesses earn interest on their deposits.
Here is a list of some of the small finance banks in India, along with their fixed deposit (FD) interest rates:
* Airtel Bank: 6.15% to 7.10% for 1-year FDs
* Au Small Finance Bank: 6.00% to 7.00% for 1-year FDs
* Equitas Small Finance Bank: 6.00% to 7.50% for 1-year FDs
* ESAF Small Finance Bank: 6.00% to 7.50% for 1-year FDs
* Janalakshmi Financial Services: 6.00% to 7.50% for 1-year FDs
* Suryoday Small Finance Bank: 6.00% to 7.50% for 1-year FDs
Please note that the interest rates may vary depending on the bank, deposit tenure, and other factors. It is always a good idea to check with the bank or their website for the most up-to-date information on their fixed deposit rates.
Overall, small finance banks have made significant progress in extending financial inclusion to underserved segments of the Indian economy. By providing access to banking services, such as fixed deposit accounts, these banks are helping to empower individuals and businesses to achieve their financial goals and improve their standard of living.
Access a Range of Small Finance Financial Institutions
AU Small Finance Bank has announced a reduction in interest rates for fixed deposits (FDs) effective from March 10, 2025. The new interest rates range from 3.75% to 8.50% per annum for general customers, while senior citizens can earn interest rates ranging from 4.25% to 8.77% per annum. The bank has reduced its FD interest rates in response to the Reserve Bank of India (RBI)’s recent decision to reduce the repo rate.
The bank’s previous FD interest rates for general customers ranged from 8.10% to 8.60%, while senior citizens could earn rates between 8.60% to 8.24%. The revised rates are effective from March 10, 2025, and are available for deposits up to Rs. 3 crore.
The reduction in interest rates is a common trend among banks, as the RBI’s repo rate cut has led to a decrease in FD interest rates. Despite this, AU Small Finance Bank is still offering competitive rates, making it a good option for those looking to invest in FDs.
Senior citizens can benefit from the higher interest rates offered by the bank, with maximum returns of 8.50% for FDs with a tenure of 18 months. The bank’s FDs also offer flexible tenures ranging from 7 days to 10 years, allowing investors to customize their investment plans according to their financial goals.
In conclusion, while the reduction in interest rates may not be ideal for FD investors, AU Small Finance Bank is still a good option for those looking to invest in FDs. The bank’s competitive rates, guaranteed returns, and flexible tenures make it a good choice for both general customers and senior citizens. It is recommended to lock in FDs before banks reduce interest rates further, and senior citizens may want to consider FDs with a tenure of 18 months for maximum returns.
Searching for competitive returns? Consider these small finance banks offering up to 9% interest rates
In the wake of the Reserve Bank of India’s recent 25-basis-point repo rate cut, investors are actively seeking fixed deposit (FD) schemes with attractive returns. Small finance banks, established to promote financial inclusion, are now offering interest rates as high as 9% per annum for specific tenures.
Small finance banks are a unique category of banks set up by the RBI to bridge the gap in access to banking services for small farmers, micro-businesses, and workers in the unorganized sector. These banks offer a range of fixed deposit schemes, with some offering interest rates as high as 9% per annum. For instance, Unity Small Finance Bank offers 9% for a 1001-day FD, while NorthEast Small Finance Bank offers 9% for deposits between 18 months and 36 months.
Other small finance banks, such as Suryoday, Utkarsh, Jana, and Ujjivan, offer interest rates ranging from 8.1% to 8.5% per annum for deposits ranging from one to five years. AU Small Finance Bank offers 8.1% for an 18-month FD and 7.25% for a one-year FD.
While small finance banks offer higher interest rates, it’s essential to note that deposits up to Rs 5 lakh per depositor are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC). However, financial experts recommend keeping deposits within this insured limit for maximum safety. As these small finance banks operate differently from larger commercial banks, risk management is crucial for investors.
Overall, small finance banks’ FD schemes can be a viable option for investors seeking attractive returns, but it’s important to consider the associated risks and ensure that deposits are within the insured limit to ensure maximum safety.