RBI clears AU Small Finance Bank’s shift to universal bank status.
The move allows AU Bank to broaden its scope under a full banking
license.
The bank surged ~7.5% intraday, reaching ₹800 on the BSE following the ann
ouncement.
Shares had previously closed around ₹744, valuing AU Bank at nearly ₹55,50
0 crore.
The bank applied for the transition in September 2024 under RBI’s updated ‘on-tap’
framework.
Its Q1 net profit rose 16% YoY to ₹581 crore, though gross NPAs ticked up slightly.
AU serves over 115 lakh customers through 2,505 touchpoints across 21 states.
This approval enhances AU’s ability to issue larger loans and diversify servi
ces.
Analysts view the regulatory nod as validation of AU’s governance and financial q
uality.
The step sets the stage for AU to compete more directly with full-service private sector
banks.