AU Small Finance Bank Applies for Universal Banking License

AU Small Finance Bank has submitted its final application for a universal banking license, following the Reserve Bank of India's relaxation of a key requirement regarding a non-operative holding company. The bank stated it is fully prepared for this transition.

AU Bank received its in-principle license last year and has been working towards this conversion. Executive Director Vivek Tripathi confirmed that the bank made the final application in March after the RBI relaxed the condition to set up a non-operative holding company. "Our bank is fully prepared for the transition in terms of its technology and products suite," Tripathi told ET.

The bank received the in-principle universal banking license in August last year and has 18 months from the date of receiving the first approval to complete the conversion. Initially, RBI had stipulated AU Bank promoters to transfer shares into a non-operating holding company. The central bank removed this condition in March following a bank request.

Tripathi added, "This condition will again be applicable only if the bank plans to float a mutual fund or insurance subsidiary."

Meanwhile, the bank is also taking steps towards succession planning and strengthening its leadership. Tripathi was elevated as an Executive Director on April 24 from his role as chief credit officer for a three-year term. The bank appointed Gaurav Jain as Chief Financial Officer on April 27.

The Reserve Bank of India approved Managing Director Sanjay Agarwal's continuation for a further three-year period from April 19. Deputy Chief Executive Officer Uttam Tibrewal will continue leading the bank’s retail business verticals and will increase his focus on on-ground engagement to drive growth, strengthen customer relationships, and expand the bank’s presence across newer geographies.