AU Small Finance Bank gets RBI’s ‘in-principle’ approval for transition into ‘universal bank’ status — Check details

AU Small Finance Bank on Thursday, 7 August 2025, received the Reserve Bank of India (RBI) ‘in-principle’ approval to transition into a ‘universal bank’ status, according to an official filing. 

“The Reserve Bank has decided to grant ‘in-principle’ approval to AU Small Finance Bank Limited (AUSFB) for transitioning from a Small Finance Bank (SFB) to a Universal Bank,” said the RBI in its official release.

According to the banking regulator’s official guidelines, small finance banks in the private sector will be provided with a transition path to convert into a ‘Universal Bank’ after fulfilling the Small Finance Bank (SFB) minimum paid-up capital/net worth requirement applicable to Universal Banks.

According to the official announcement, the bank must also have a satisfactory performance track record for a minimum of five years. 

What is Universal Banking licence?

An institutional lender is given a Universal Banking licence in order to offer a wide range of banking services, including commercial and investment banking. This status gives them access to provide comprehensive financial solutions to customers, enhancing convenience and operational efficiency.

AU Small Finance Bank Q1 Results

AU Small Finance Bank’s net profit for the April-June quarter witnessed a 15.6% jump to ₹580.9 crore, compared year-on-year (YoY) to ₹503 crore in the same quarter the previous financial year, according to the official regulatory filing. 

Mint reported earlier that the bank’s total income for the first quarter also witnessed a 21% jump to ₹5,189 crore, compared to ₹4,278 crore in the same period a year ago.

Shares of the private sector bank dropped 7% in the intraday session on Monday, 21 July 2025. The institutional lender reported a drop in its asset quality for the quarter ended June 2025 despite healthy growth in profit, income, and other key financial metrics.

AU Small Finance Bank shares jumped 1.27% to ₹744 after 7 August 2025 stock market session, compared to ₹734.70 in the previous market close.