AU Small Finance Bank (AU SFB) has achieved a significant milestone in its journey, receiving in-principle approval from the Reserve Bank of India (RBI) to transition into a universal bank. This development marks a historic moment as AU SFB becomes the first small finance bank in India to receive such approval.

RBI's Approval and Transition Timeline

The RBI has granted AU Small Finance Bank an 18-month window to complete its transition into a universal bank. This decision follows the central bank's guidelines that provided clarity on the process for small finance banks to evolve into universal banks.

Key Condition for Transition

As part of the transition process, the RBI has mandated a crucial condition: the 21.4% stake held by Managing Director Sanjay Agarwal, his family, and other promoters must be transferred to a non-financial holding company.

AU SFB's Journey

AU Small Finance Bank's evolution has been remarkable:

• Founded in 1996 by Sanjay Agarwal
• Transitioned from a non-banking finance company to a small finance bank
• Now poised to become a universal bank

Financial Position

AU Small Finance Bank reported:

Management's Perspective

Sanjay Agarwal, Founder, MD & CEO of AU Small Finance Bank, expressed his enthusiasm: "We have made history by receiving in-principle approval from the Reserve Bank of India to transition into a Universal Bank. This milestone is a reaffirmation of our purpose, perseverance, and passion. AU is not just a bank - AU is a mission."

Impact and Future Outlook

The transition to a universal bank is expected to:

• Strengthen AU SFB's brand acceptance
• Broaden access to diversified deposit sources
• Potentially reduce the cost of funds over the medium to long term

AU Small Finance Bank's journey from a small finance bank to a universal bank underscores its growth trajectory and commitment to financial inclusion. As the bank prepares for this significant transition, it aims to offer a full spectrum of banking products and services, catering to retail, business, and digital solutions.

The successful completion of this transition will mark a new chapter in India's banking sector, showcasing the potential for growth and evolution within the financial industry.

AU Small Finance Bank (AU SFB), India's largest small finance bank, has announced a strategic partnership with SBI Life Insurance, one of the country's most trusted life insurers. This collaboration aims to enhance access to comprehensive insurance solutions nationwide, supporting the government's 'Insurance for All by 2047' mission.

Partnership Details

The agreement will allow AU SFB to distribute SBI Life's comprehensive portfolio of life insurance solutions across its extensive network of over 2,505 banking touchpoints in 21 states and 4 union territories. The partnership will offer a wide range of insurance products, including:

• Protection plans
• Savings and investment solutions
• Child-focused policies
• Money-back policies
• Retirement plans

Expanding Financial Inclusion

This alliance is set to benefit customers by providing a unified banking and insurance experience, enabling them to meet diverse protection and long-term financial planning needs. The collaboration will leverage AU SFB's digital platforms and customer engagement channels to deliver a simplified, transparent, and accessible insurance journey.

Mr. Uttam Tibrewal, Executive Director and Deputy CEO of AU Small Finance Bank, emphasized the importance of this partnership, stating, "At AU Small Finance Bank, we believe financial security is a fundamental right, not a privilege. This partnership with SBI Life Insurance reinforces our shared commitment to delivering reliable, need-based insurance solutions to diverse communities across urban and semi-urban areas of India."

Strengthening Market Presence

AU Small Finance Bank's robust network and SBI Life's expertise in driving insurance adoption are expected to create a significant impact in urban, semi-urban, and rural markets. The partnership aims to extend financial protection to underserved and emerging markets across India.

Mr. Abhijit Gulanikar, President – Business Strategy at SBI Life Insurance, commented on the collaboration, saying, "Our partnership with AU Small Finance Bank is a strategic step towards deepening insurance adoption across India. AU's strong rural reach and community connect bring us closer to the shared vision of 'Insurance for All by 2047', making protection more accessible—one household at a time."

About AU Small Finance Bank

AU Small Finance Bank, founded in 1996, began its banking operations in April 2017. The bank's key financial highlights include:

The bank serves over 1.15 crore customers and is supported by a workforce of 53,000+ employees.

About SBI Life Insurance

SBI Life Insurance, incorporated in October 2000, offers a diverse range of products catering to both individuals and group customers. SBI Life's presence includes:

• 1,146 offices
• 27,040 employees
• Network of about 253,799 agents
• 62 corporate agents
• 9 bancassurance partners with more than 41,000 partner branches
• 150 brokers and other insurance marketing firms

This strategic partnership between AU Small Finance Bank and SBI Life Insurance marks a significant step towards expanding insurance accessibility and promoting financial inclusion across India.