AU Small Finance Bank has made a significant move in the digital banking space with the launch of its new AU KOSMO Credit Card. This innovative product, developed in partnership with Kiwi, a Credit on UPI platform, brings the convenience of UPI payments to credit card users.

Key Features of AU KOSMO Credit Card

The AU KOSMO Credit Card, built on the RuPay network, offers a unique proposition to customers:

• UPI Integration: Users can make credit payments via UPI at both online and offline merchants without the need for a physical card.
• Rewards on UPI Payments: The card offers rewards for transactions made through UPI, encouraging digital payments.
• Fuel Surcharge Waiver: Cardholders enjoy a 1% fuel surcharge waiver, providing savings on fuel purchases.
• No Annual or Renewal Fees: The card comes with no annual or renewal fees, making it an attractive option for cost-conscious consumers.

Target Audience and Onboarding

AU Small Finance Bank is positioning the AU KOSMO Credit Card to appeal to:

• First-time credit users
• Young professionals
• Tech-savvy consumers

The bank has implemented a digital onboarding process, aligning with the preferences of its target demographic and streamlining the user experience.

Market Context

The launch of the AU KOSMO Credit Card comes at a time of significant growth in the UPI and RuPay ecosystems:

• UPI P2M (Person to Merchant) payments reached ₹7.20 lakh crore in August, marking a 26% year-over-year increase.
• RuPay's credit card market share has grown to nearly 12%, indicating increasing adoption of the domestic payment network.

AU Small Finance Bank's Market Position

As of June 30, AU Small Finance Bank's financial position and reach include:

• Over 2,500 banking touchpoints across 21 states and four union territories
• Total deposits of ₹1.27 lakh crore
• Loan portfolio of ₹1.17 lakh crore

Strategic Implications

The introduction of the AU KOSMO Credit Card aligns with AU Small Finance Bank's broader strategy of financial inclusion. By combining credit card functionality with the widely-used UPI platform, the bank aims to expand its services across urban, semi-urban, and rural markets.

This move could potentially increase the bank's customer base, particularly among younger and more tech-savvy demographics, while also contributing to the growth of digital payments in India. The absence of physical cards may also lead to reduced operational costs for the bank in terms of card production and distribution.

As the digital payments landscape in India continues to evolve, products like the AU KOSMO Credit Card represent an important convergence of traditional credit services with modern payment technologies, potentially setting a trend for other banks to follow.

AU Small Finance Bank has executed significant corporate actions including a major block trade and multiple employee stock option allotments. The bank continues to demonstrate active market engagement and sustained commitment to employee incentive programs through its comprehensive ESOP schemes.

Latest ESOP Allotment

On December 12, 2025, AU Small Finance Bank allotted 2,71,991 equity shares of face value Rs. 10.00 each pursuant to the exercise of Employee Stock Options. The allotment was distributed across multiple ESOP schemes:

Updated Share Capital Structure

Following the latest allotment, the bank's paid-up equity share capital has increased significantly. The updated capital structure reflects the cumulative impact of recent ESOP exercises:

Previous Block Trade Activity

Earlier, the bank had executed a substantial block trade on the National Stock Exchange involving 9,41,745 shares at Rs. 704.00 per share, totaling Rs. 66.30 crores. This transaction demonstrated significant institutional investor interest in the bank's equity.

Comprehensive ESOP Program

AU Small Finance Bank operates multiple Employee Stock Option Plans spanning different years, reflecting its long-term commitment to employee participation in the bank's growth. The bank has previously allotted shares under various schemes including ESOP 2015, 2016, 2018, 2020, and 2023, indicating a structured approach to employee incentivization.

Regulatory Compliance

The bank has maintained transparency by promptly disclosing these allotments under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These developments underscore the bank's commitment to regulatory compliance and stakeholder communication in the evolving small finance banking sector.