AU Small Finance Bank has issued a comprehensive official press release under Regulation 30 of SEBI Listing Regulations, providing detailed clarification on media reports regarding its de-empanelment by the Haryana government. The bank's statement, released on February 22, 2026, addresses investor queries and clarifies the institution's position on suspected fraudulent activities involving another private sector bank.

Regulatory Compliance and Official Communication

The bank submitted the press release to both National Stock Exchange of India Ltd. (NSE Symbol: AUBANK) and BSE Limited under multiple scrip codes including 540611, 974093, 974094, 974095, 974914, 974963, 975017, 975038, and 976580. Company Secretary and Compliance Officer Manmohan Parnami digitally signed the official communication on February 22, 2026, ensuring full regulatory compliance and transparency with stakeholders.

Timeline of Events and Government Communications

The chronology reveals a rapid sequence of developments that led to the de-empanelment decision:

Detailed Transaction Analysis

The bank's internal review revealed specific transaction patterns in the government account that have been fully documented and submitted to authorities:

The bank emphasized that all 14 transactions totaling ₹47.00 crores were initiated by the concerned government department with proper authorization and executed in accordance with instructions provided by the department in the normal course of business. The additional ₹47.00 crores originated from another private sector bank that recently disclosed unauthorized and suspected fraudulent activities.

Impact Assessment and Current Status

The de-empanelment has resulted in a measurable reduction in government deposits from Haryana:

Governance Measures and Bank Response

Based on available facts and preliminary review, the bank confirms no indication of financial impact or fraudulent activity toward the institution. The board of directors has been informed, and the bank continues its internal review process. To ensure fair and transparent review, certain employees have been placed off-duty.

The bank maintains complete audit trails including account opening forms, KYC documentation, transaction instructions, verification call details, and supporting records, all submitted to the concerned government department. AU Small Finance Bank is actively engaging with the Haryana government to assess de-empanelment reasons and explore re-empanelment possibilities.

Bank Profile and Financial Position

As of December 31, 2025, AU Small Finance Bank operates over 2,726 banking touchpoints across 21 states and 4 union territories, serving more than 1.25 crore customers with a workforce of 59,800+ employees. The bank maintains strong financial metrics:

The bank has received in-principle approval from RBI to transition to a Universal Bank and is rated 'AA/Stable' by CRISIL Ratings, ICRA Ltd., CARE Ratings, and India Ratings.

Au small finance bank Limited has secured the Reserve Bank of India's approval for the reappointment of Mr. Sanjay Agarwal as Managing Director & CEO, marking a significant milestone in the bank's leadership continuity. The regulatory approval enables Mr. Agarwal to serve another term at the helm of the small finance bank.

RBI Approval Details

The Reserve Bank of India granted its approval on February 12, 2026, for Mr. Sanjay Agarwal's reappointment as Managing Director & CEO. The approval covers a three-year term beginning April 19, 2026.

Prior Approvals and Timeline

The RBI approval represents the final regulatory step in the reappointment process. AU Small Finance Bank had previously secured necessary approvals from its governance bodies:

• Board Approval: Obtained on October 17, 2025
• Shareholder Approval: Secured on December 26, 2025
• RBI Approval: Received on February 12, 2026

The bank had informed stock exchanges about the Board and shareholder approvals in October and December 2025, noting that the reappointment remained subject to RBI approval.

Regulatory Compliance

AU Small Finance Bank communicated this development to both the National Stock Exchange of India and BSE Limited in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notification was signed by Company Secretary and Compliance Officer Manmohan Parnami.

Leadership Continuity

With all regulatory approvals now in place, Mr. Sanjay Agarwal will continue leading AU Small Finance Bank for another three-year period starting April 19, 2026. This reappointment ensures leadership stability as the bank continues its operations in the small finance banking sector.