Latest News on AU Small finance Bank
Senior citizens can earn up to 8% interest rate on 5-year fixed deposits; compare the top FD rates offered by public, private, and small finance banks
For senior citizens seeking stable and fixed income, there are still attractive fixed deposit (FD) options available, despite many leading banks and small finance banks slashing their FD interest rates. Currently, a few banks offer FD rates of up to 8% on their five-year senior citizen FDs. The interest rates vary among public and private sector banks, as well as small finance banks, for FDs of the same duration.
Small finance banks offer the highest five-year FD interest rates for senior citizens, with Suryoday Small Finance Bank providing an 8% interest rate, followed by Jana Small Finance Bank at 7.77%, and Ujjivan Small Finance Bank at 7.7%. Other small finance banks, such as Utkarsh Small Finance Bank, Equitas Small Finance Bank, and AU Small Finance Bank, offer interest rates ranging from 7.5% to 7.25%.
Among private sector banks, IDFC Bank, Yes Bank, and SBM Bank India offer a 7.5% interest rate each on their five-year fixed deposits for senior citizens. Other private sector banks, such as DCB Bank, Axis Bank, and RBL Bank, offer interest rates ranging from 7.25% to 7.1%.
Public sector banks also offer competitive interest rates, with State Bank of India providing a 7.05% FD interest rate on its five-year senior citizen FD. Bank of Baroda offers a 6.9% rate, while Bank of India and Canara Bank offer a 6.75% rate each on their five-year FDs for senior citizens.
Overall, senior citizens have a range of options to choose from, with interest rates varying from 8% to 5.5% depending on the bank and the duration of the FD. It is essential for senior citizens to compare the interest rates and terms offered by different banks to make an informed decision that suits their financial needs. By choosing the right FD option, senior citizens can ensure a stable and fixed income, which can help them manage their expenses and maintain their standard of living.
Small finance banks set sights on poaching top talent from bigger rivals to fuel growth
India’s small finance banks (SFBs) are expanding their horizons and preparing for a transition to universal banking. To achieve this, they are aggressively hiring senior executives from larger banks and non-bank financiers to strengthen their leadership and scale their businesses. Several prominent SFBs, including AU Small Finance Bank, Ujjivan Small Finance Bank, Suryoday Small Finance Bank, and Utkarsh Small Finance Bank, are looking to onboard senior executives, including key business officers, vice-presidents, and executive vice-presidents.
The move highlights the growth of the SFB sector, which has demonstrated significantly higher hiring momentum compared to the broader banking sector. In 2025, SFBs added 26,736 employees, a 18% increase in their workforce, while public sector banks added 1,626 people and private sector banks reduced their staff strength by 7,257. SFBs are attracting talent by offering “bump ups” in compensation and significant role elevation.
The Reserve Bank of India (RBI) has set out guidelines for SFBs to transition to universal banks, including a minimum net worth of ₹1,000 crore, a satisfactory track record of at least five years, and a net profit in the last two financial years. AU Small Finance Bank has already received a conditional nod from the RBI, while others, like Ujjivan, are still awaiting regulatory approval.
SFBs are not just scouting talent for senior roles but are also looking at junior ones, with a 30% increase in hiring in junior levels. They are recruiting sales executives typically from other banks and non-banking financial companies (NBFCs). The aggressive hiring by SFBs reflects their ambition to expand and become universal banks, which would require branch expansion and more people at various levels.
The SFB sector has made significant progress since its inception in 2014, with a compounded annual growth rate of 28% in deposits and 25% in advances between FY22 and FY25. However, they still face challenges, such as low-cost deposits, with their current and savings account (Casa) deposits at 26.2% of overall deposits, lower compared to universal banks. Nevertheless, SFBs are poised for a more complex phase of growth, and their ability to attract and retain talent will be critical to their success.
AU Small Finance Bank bolsters its leadership position with a 26% surge in quarterly profits
AU Small Finance Bank is gearing up for its transition into a universal lender, with a focus on continuity in senior management and strengthening its board. The bank has proposed the continuation of Uttam Tibrewal as Executive Director and Deputy CEO, and Vivek Tripathi as Executive Director, subject to regulatory approvals. Tibrewal will remain responsible for leading key business verticals, including retail assets and liabilities, while Tripathi will take on a new role. These appointments are part of the bank’s long-term succession planning and aim to provide flexibility for future organizational requirements.
In addition to these appointments, the bank has strengthened its board by appointing three new independent directors: NS Venkatesh, Satyajit Dwivedi, and Phani Shankar. Malini Thadani has also been re-appointed as a non-executive independent director for a second term of three years. These appointments are expected to enhance the bank’s governance and leadership depth.
The bank’s financial performance for the third quarter was strong, with a 26% rise in net profit to Rs 668 crore, driven by lower provisions and steady business expansion. The bank’s pre-provision operating profit remained flat at Rs 1215 crore, while its net interest margin (NIM) increased by 25 basis points to 5.7%. The bank’s gross loan portfolio grew 19.3% year-on-year to Rs 1.30 lakh crore, and its gross non-performing assets (NPA) ratio declined sequentially to 2.30% from 2.41% three months prior.
The bank received an in-principle universal bank license in August last year and has an 18-month turnaround time to complete the transition. With its strengthened board and senior management, AU Small Finance Bank is well-positioned to navigate this transition and achieve its goals. The bank’s focus on continuity and succession planning is expected to provide stability and flexibility for future growth, and its strong financial performance is a testament to its ability to execute its strategy effectively. Overall, AU Small Finance Bank is poised for continued growth and success as it transitions into a universal lender.
Five Banks, Including City Union Bank, DCB Bank, and J&K Bank, Hike Fixed Deposit Rates, Offering Up to 7.65% Interest for Senior Citizens
This week, six banks in India revised their fixed deposit (FD) rates, continuing a trend of reductions over the past few months. The revised rates for senior citizens now range between 6.50% and 8.00% across most banks. The banks that revised their FD rates include City Union Bank, DCB Bank, J&K Bank, South Indian Bank, Kotak Mahindra Bank, and AU Small Finance Bank.
City Union Bank, a private sector bank, revised its FD interest rates on January 14, 2026. The bank is now offering senior citizens a deposit rate of 7.25%, while super senior citizens (those 80 years and above) can earn a deposit rate of 7.50%. The revised interest rates for senior and super senior citizens at City Union Bank vary depending on the tenure of the deposit. For senior citizens, the rates are: 7.00% for 365-499 days, 7.25% for 500 days, 6.75% for 501 days to three years, and 6.50% for above three years to 10 years.
For super senior citizens, the rates are slightly higher: 7.05% for 365-499 days, 7.50% for 500 days, 6.80% for 501 days to three years, and 6.60% for above three years to 10 years. These revised rates are indicative of the current market trend, where banks are adjusting their interest rates in response to changes in the economy and monetary policy. It is essential for depositors to review the revised rates and consider their options before making any investment decisions. The changes in FD rates may impact the returns on deposits, and individuals should evaluate their financial goals and risk tolerance before choosing a deposit tenure and bank.
Small Finance Banks Poised for 24% Surge: The Future Challengers to HDFC Bank’s Throne?
The small finance bank (SFB) sector in India is experiencing significant growth, with loan books expanding at a compound annual growth rate (CAGR) of 20-25%. This growth is driven by lending to small businesses, housing, and vehicles, as well as an increase in deposit mobilization. The sector is expected to reach total advances of over ₹2 trillion by fiscal year 2026. The Reserve Bank of India’s (RBI) new roadmap for SFB-to-Universal Bank transitions is also supporting the sector’s growth.
Several SFBs have reported strong performance in the second quarter of FY26. AU Small Finance Bank reported a 17% year-on-year loan book expansion, with deposits growing 21% and a net profit of ₹561 crore. Ujjivan Small Finance Bank saw its loan book grow 14% year-on-year, with deposits rising 15.1% and a net profit of ₹122 crore. Capital Small Finance Bank posted loan book growth of around 18% year-on-year, with deposits increasing 20% and a net profit of ₹35 crore. Suryoday Small Finance Bank experienced strong business growth, with deposits up 35.5% and the loan book expanding 18.9%, but its asset quality weakened and net profit declined.
The valuations of these SFBs vary significantly, with AU Small Finance Bank trading at approximately four times book value and Ujjivan SFB trading at 1.9 times book. Capital SFB and Suryoday SFB trade below book value, indicating subdued valuations due to higher risks or uneven performance. Investors must carefully select SFBs based on consistent growth, controlled risks, and improving profitability.
The SFB sector’s growth is driven by several factors, including the increasing demand for financial services from small businesses and individuals, and the government’s initiatives to promote financial inclusion. The sector’s expansion is also driven by the RBI’s efforts to strengthen the banking system and promote the growth of SFBs. However, the sector also faces challenges, such as intense competition, regulatory risks, and the need to maintain asset quality.
Overall, the SFB sector in India is experiencing significant growth and is expected to continue to play an important role in promoting financial inclusion and supporting the country’s economic growth. Investors must carefully evaluate the performance and valuations of individual SFBs to make informed investment decisions. With the sector’s growth expected to continue, SFBs are evolving from niche micro-lenders into systemic players, and their transition to universal banks is likely to have a significant impact on the Indian banking landscape.
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Small Finance Banks Poised for 24% Surge: The Future Challengers to HDFC Bank’s Throne?
The small finance bank (SFB) sector in India is experiencing significant growth, with loan books expanding at a compound annual growth rate (CAGR) of 20-25%. This growth is driven by lending to small businesses, housing, and vehicles, as well as an increase in deposit mobilization. The sector is expected to reach total advances of over ₹2 trillion by fiscal year 2026. The Reserve Bank of India’s (RBI) new roadmap for SFB-to-Universal Bank transitions is also supporting the sector’s growth.
Several SFBs have reported strong performance in the second quarter of FY26. AU Small Finance Bank reported a 17% year-on-year loan book expansion, with deposits growing 21% and a net profit of ₹561 crore. Ujjivan Small Finance Bank saw its loan book grow 14% year-on-year, with deposits rising 15.1% and a net profit of ₹122 crore. Capital Small Finance Bank posted loan book growth of around 18% year-on-year, with deposits increasing 20% and a net profit of ₹35 crore. Suryoday Small Finance Bank experienced strong business growth, with deposits up 35.5% and the loan book expanding 18.9%, but its asset quality weakened and net profit declined.
The valuations of these SFBs vary significantly, with AU Small Finance Bank trading at approximately four times book value and Ujjivan SFB trading at 1.9 times book. Capital SFB and Suryoday SFB trade below book value, indicating subdued valuations due to higher risks or uneven performance. Investors must carefully select SFBs based on consistent growth, controlled risks, and improving profitability.
The SFB sector’s growth is driven by several factors, including the increasing demand for financial services from small businesses and individuals, and the government’s initiatives to promote financial inclusion. The sector’s expansion is also driven by the RBI’s efforts to strengthen the banking system and promote the growth of SFBs. However, the sector also faces challenges, such as intense competition, regulatory risks, and the need to maintain asset quality.
Overall, the SFB sector in India is experiencing significant growth and is expected to continue to play an important role in promoting financial inclusion and supporting the country’s economic growth. Investors must carefully evaluate the performance and valuations of individual SFBs to make informed investment decisions. With the sector’s growth expected to continue, SFBs are evolving from niche micro-lenders into systemic players, and their transition to universal banks is likely to have a significant impact on the Indian banking landscape.
Upcoming Q3 earnings: Kotak Bank, BHEL, IndiGo, and Hind Zinc set to announce results next week – here are the key dates
The week starting January 19 is expected to be a busy one for corporate earnings, with several major companies across various sectors announcing their financial results for the quarter ended December 31, 2025. On Monday, January 19, Punjab National Bank (PNB), IRFC, LTIMindtree, Bharat Heavy Electricals (BHEL), Hindustan Zinc, and Havells India are among the companies that will report their earnings. Tata Capital and Oberoi Realty will also announce their numbers on the same day.
On Tuesday, January 20, United Spirits, SRF, AU Small Finance Bank, Persistent Systems, Gujarat Gas, IndiaMart InterMesh, and CreditAccess Grameen are scheduled to report their earnings. Wednesday, January 21, will see results from Dr Reddy’s Laboratories, Tata Communications, Dalmia Bharat, Hindustan Petroleum (HPCL), Bank of India, UTI Asset Management, and Canara HSBC Life Insurance.
Thursday, January 22, will feature results from InterGlobe Aviation (IndiGo), DLF, Bandhan Bank, CAMS, Coforge, and Home First Finance. On Friday, January 23, JSW Steel, Bharat Petroleum (BPCL), IndusInd Bank, Cipla, Adani Green Energy, Urban Company, and Piramal Finance will announce their numbers. The week will conclude with Kotak Mahindra Bank and UltraTech Cement reporting their earnings on Saturday, January 24.
Some of the key companies to watch out for during the week include Reliance Industries, HDFC Bank, and ICICI Bank, which have already announced or are set to announce their earnings. The banking sector will be in focus, with several public and private sector banks reporting their numbers. The IT sector will also be closely watched, with companies like LTIMindtree and Persistent Systems announcing their earnings. Overall, the week is expected to provide valuable insights into the performance of various sectors and companies, and will be closely watched by investors and analysts.
Sanjay Agarwal: AU Bank achieved a tenfold growth, defying challenges from the COVID pandemic, interest rate fluctuations, and the NBFC crisis.
Sanjay Agarwal, MD and CEO of AU Small Finance Bank, reflected on the bank’s remarkable growth over the past nine years, during which its balance sheet has expanded tenfold. Despite navigating challenges such as the COVID-19 pandemic, high interest rates, and non-banking financial company (NBFC) crises, the bank has demonstrated resilience and adaptability. Agarwal attributed this success to the bank’s initial focus on high net-worth clients and its strategic partnership with HDFC Bank, which helped shape its approach to risk management, distribution, and franchise building.
Investor Raamdeo Agrawal praised AU Bank for its professional management and prudent decision to avoid unsecured lending in its early years, which enabled the bank to manage risk and achieve steady growth. Sanjay Agarwal highlighted the crucial role of technology in the bank’s growth, citing AI-led communication and operational tools that have enabled the bank to reach deeper markets and serve customers more efficiently. This has allowed AU Bank to scale faster than traditional banking models.
Agarwal emphasized the importance of building a strong leadership team that can run the institution independently, ensuring continuity beyond individual promoters. He credited mentorship from Raamdeo Agrawal, who encouraged him to think bigger, strengthen governance, and prioritize patience in building a lasting institution. Looking ahead, Sanjay Agarwal expressed confidence that AU Bank can grow into a much larger institution over the next two decades, driven by disciplined capital management, strong teams, and technology. The bank’s focus will be on longevity rather than short-term expansion, with a commitment to sustainable growth and long-term success. Overall, AU Bank’s story serves as a testament to the power of strategic leadership, prudent risk management, and innovative technology in driving growth and success in the banking sector.
Revolutionizing Banking: AU Small Finance Bank’s Digital Innovation Transforms Savings Accounts and Boosts Interest Rate Expansion
The banking industry is undergoing a significant transformation with the adoption of digital technology, particularly in the management of savings accounts. At AU Small Finance Bank, digital innovation has enabled customers to open, manage, and use their savings accounts more efficiently. The transition from traditional banking to digital channels has simplified the savings account journey, allowing customers to access banking services without being dependent on a specific branch. Digital processes have also reduced operational complexity and costs for banks, enabling them to deliver more efficient services and offer competitive savings account interest rates.
Technology plays a crucial role in improving the customer experience, with features such as automated transfers, digital interest calculators, and mobile-based banking. These tools support disciplined saving, improve financial planning, and provide transparency in balances and interest rates. The removal of the need for a fixed home branch has also provided customers with flexibility and continuity of service across locations.
The key digital features supporting savings accounts include automated savings and account management, AI-enabled customer support, secure digital platforms, and advanced analytics. These features improve efficiency, consistency, and security in savings account operations. The benefits of digitally enabled savings accounts for customers include easy access, transparency, flexibility, and tools that support disciplined saving. For banks, the benefits include lower operating costs, scalable service models, improved customer engagement, and data-backed product structuring.
As digital adoption continues to increase, the savings account is expected to remain a core banking product supported by technology. Future developments are likely to focus on improved security, enhanced digital access, and structured savings solutions aligned with customer needs. The AU Savings Account is an example of a product that reflects this shift towards digital, accessible, and structured banking solutions. Overall, digital innovation is reshaping the way savings accounts function, making them more efficient, accessible, and reliable financial tools. With the continued growth of digital banking, customers can expect to see more innovative and customer-centric savings account products in the future.
AU Small Finance Bank Unveils Exclusive Pongal Deals for Tamil Nadu-Based Customers
AU Small Finance Bank (AU SFB) is celebrating the Tamil Nadu festival of Pongal by offering exclusive deals and discounts to its customers in Chennai. As the largest small finance bank in India, AU SFB is enhancing the festive experience with a range of offers across various categories, including fashion, electronics, travel, dining, jewelry, and entertainment.
The festive offers include discounts of up to 10% on fashion and groceries, with partners such as AJIO, Spykar, and Flipkart Wholesale. Customers can also avail of up to ₹10,000 off on mobiles and appliances at Croma, and up to ₹10,000 off on flights and holiday bookings via various travel websites, including EaseMyTrip, MakeMyTrip, and Paytm Flights. Additionally, there are discounts of up to ₹1,000 off on dining and entertainment, with partners such as Zomato, Swiggy, and BookMyShow.
In the jewelry category, customers can enjoy a flat ₹6,000 off on studded and diamond jewelry, and 20% off on making charges for gold jewelry at Kalyan Jewellers. There is also a flat ₹1,000 off on silver jewelry at GIVA. These offers are available for a limited period during the Sankranti celebrations and are applicable on select AU Credit and Debit Cards.
Uttam Tibrewal, ED & Deputy CEO of AU Small Finance Bank, stated that the bank is committed to delivering value-added experiences to its customers, especially during festivals like Pongal. As the bank moves closer to becoming a Universal Bank, it aims to provide not just banking services but meaningful experiences that enhance people’s lives. Customers can visit the bank’s website or explore the AU 0101 App to know more about the offers and their terms and conditions. Overall, AU SFB’s Pongal offers are designed to make the festive season more rewarding and enjoyable for families across Tamil Nadu.