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.