AU Small Finance Bank is a small finance bank (SFB) that has recently transitioned from a prominent, retail focused non-banking finance company (NBFC), which primarily served low and middle-income individuals and businesses that have limited or no access to formal banking and finance channels. It received a license from the Reserve Bank of India to set up an SFB on December 20, 2016 and it was the only NBFC categorized as an asset finance company to obtain such license. It commenced its SFB operations with effect from April 19, 2017. Prior to such date, the company was categorized as a ‘Systemically Important, Non-Deposit Accepting Asset Finance Company’ (NBFCND- AFC) by the RBI. The company is the first Small Finance Bank in India to receive an in-principle approval from the Reserve Bank of India to transition into a Universal Bank.

The company was originally incorporated as ‘L.N. Finco Gems Private Limited’ on January 10, 1996 as a private limited company under the Companies Act, 1956 with the RoC. Pursuant to the change of name of the company to Au Financiers (India) Private Limited to reflect the diversified finance business of the company, a fresh certificate of incorporation was issued by the RoC on May 24, 2005. The company was converted into a public limited company by way of a special resolution passed by its shareholders at the EGM held on January 10, 2013 and the name of the company was changed to ‘Au Financiers (India) Limited’. A fresh certificate of incorporation consequent upon conversion to a public limited company was issued by the RoC on January 11, 2013. The company was granted the in-principle approval to establish an SFB by the RBI, pursuant to its letter dated October 7, 2015. Subsequently, the RBI granted the company the final approval to establish an SFB by its letter dated December 20, 2016. Pursuant to the company being established as an SFB, the name of the company was changed to ‘AU Small Finance Bank Limited’ and a fresh certificate of incorporation was issued by the RoC on April 13, 2017.

Business area of the company

The company is one of India's largest Small Finance Banks. The company is the first Small Finance Bank in India to receive an in-principle approval from the Reserve Bank of India to transition into a Universal Bank.

Awards:

• 2018: The Best Brands Awards Best BFSI Brand, by Economic Times.
• 2018: The Bank with Best Technology Orientation, by ET Now.
• 2018: The Bank with ‘Leading Financial Inclusion Initiatives’ BFSI Awards, by ABP News.
• 2018: CSR Leadership Awards for ‘Livelihood Creation’, by ET Now.
• 2018: The Bank with more Rural Branches, by ET Now.
• 2018: ASSOCHAM SME Excellence Award 2018 - Best MSME Bank.
• 2019: Dream Companies to work for, by Times Ascent.
• 2019: MSME CIBIL Award 2019 - Best Data Quality Management.
• 2020: Best Financial Inclusion Initiatives of the Year for Financial Literacy Camps - ETBFSI Excellence Awards 2020
• 2021: Best Financial Inclusion Initiatives of the Year for Individual Society Responsibility - ETBFSI Excellence Awards 2021
• 2022: Atal Pension Yojana Annual Award- Recognition from PFRDA
• 2022: Atal Pension Yojana Premiere League Award- Recognition from PFRDA
• 2022: Financial Inclusion Initiative of the Year – India - Asian Banking and Finance Retail Banking Awards 2022
• 2023: Award of Excellence - Recognised by PFRDA for achieving 100% target in the Atal Pension Yojana (APY)
• 2023: Exceptional contribution to the Atal Pension Yojana (APY) - Recognition from PFRDA
• 2023: Best Financial Inclusion Winner - India Bank's Association (IBA) 19th Annual Banking Technology Awards
• 2023: Award of Excellence - Recognised by PFRDA for sourcing maximum number of APY accounts 
• 2023: Certificate of Appreciation - Recognised by PFRDA for achieving persistence target and contributing towards Atal Pension Yojana
• 2024: Best Financial Inclusion – Special Mention - Indian Banks' Association (IBA) 20th Annual Banking Technology Awards
• 2024: Financial Inclusion Award-FICO Decision Awards
• 2024: APY Annual Award of Excellence - PFRDA for achieving 100% target in Atal Pension Yojana (APY)

History and Milestones:

• 1996: Incorporated as a private limited company in Rajasthan with an authorised share capital of Rs 0.1 million.
• 1996: Started with Vehicle Finance.
• 2000: Received certificate of registration from the RBI under section 45 IA of RBI Act, to carry on the business of non-banking financial institution without accepting public deposits.
• 2003-05: The company built its association with HDFC Bank, as a Channel Business Partner on a risk sharing model.
• 2007: AU started offering Secured Business Loans (MSME Loans).
• 2008: The company obtained an investment of Rs 200 million from India Business Excellence Fund and India Business Excellence Fund-1 (private equity funds of Motilal Oswal Private Equity).
• 2009: AU spread its reach to Gujarat.
• 2010: Received fresh certificate of registration under section 45 IA of RBI Act from the RBI pursuant to which RBI has classified the company as a NBFC-ND-AFC.
• 2010: The company obtained an investment of Rs 350 million, Rs 60 million and Rs 140 million, from IFC, IBE Fund and IBE Fund -I, respectively.
• 2010: Au Financiers attained the status of ‘Systemically Important Non-Deposit Taking Asset Finance Company’.
• 2010: AU started offering Housing Loans.
• 2011: The company set up a wholly owned subsidiary, Au Housing Finance Private Limited, to provide housing finance services.
• 2011: Expanded operations to Punjab, Madhya Pradesh and Goa.
• 2012: The company set-up a subsidiary, Au Insurance Broking Services Private Limited, to provide insurance and broking services.
• 2012: Expanded operations into Delhi, Himachal Pradesh & Haryana.
• 2012: Forbes, India featured Au Financiers as a company that attracted investors despite economic slowdown.
• 2013: Chrys Capital, a leading private equity fund, acquired a 10.01% stake in AU.
• 2015: AU became the only Asset Financing Company (AFC) to receive ‘in-principle’ approval from RBI for establishing a Small Finance Bank.
• 2016: AU received final approval from RBI for transforming company’s business into a Small Finance Bank.
• 2016: Pursuant to RBI approval dated April 6 and May 18, 2016, AU successfully divested its equity stake in Au Housing Finance Limited, Index Money Limited and Au Insurance Broking Services Private Limited.
• 2016: Successfully divested its equity stake in Au Housing Finance Ltd., Index Money Limited and Au Insurance Broking Services Private Limited.
• 2016: Divested 29.53% of the total shareholding of M Power Micro Finance Private Limited.
• 2017: Commenced SFB operations with a wide bouquet of retail loans, SME & Mid corporate loans, deposit products and transaction banking.
• 2017: Received ‘Scheduled Bank’ status.
• 2017: Featured as Fortune India 500 Company.
• 2018: Received around Rs 1000 crore equity investment from Temasek Holdings.
• 2019: Garnered investment of Rs 525 crore from Camas Holdings (Temasek) for warrants conversion.
• 2019: Launched ‘AU Royale’ Account, missed call banking and 3-in-1 Savings, Trading and Demat Account.
• 2019: Went live with e-mandate, ASBA and BBPS on website.
• 2020-21: Appointed VG Kannan - Ex-SBI MD, Ex-CEO of IBA as Independent Director on Board.
• 2020-21: Became India's Largest Small Finance Bank.
• 2020-21: Unveiled mega brand campaign 'Badlaav Humse Hai'. Aamir Khan and Kiara Advani roped in as Brand Ambassadors.
• 2020-21: Became the first SFB to launch Credit Cards and QR Codes with Sound Box.
• 2020-21: Appointed Ex RBI Deputy Governor Shri H. R. Khan as Non-Executive Independent Director.
• 2020-21: Unveiled mega brand campaign 'Badlaav Humse Hai'. Aamir Khan and Kiara Advani roped in as Brand Ambassadors.
• 2022: Constituted Diversity and Inclusion (D&I) committee to increase emphasis on D&I within the bank with a mandate to make AU Small Finance Bank a more inclusive workplace.
• 2022: Completed 5 years of banking operation as SFB on April 19, 2022.
• 2022: CARE Rating upgraded AA/Stable from AA-/Stable.
• 2022: Announced 1:1 issuance of Bonus shares and declared Dividend of Rs 1 per share (pre-bonus issue).
• 2022: Appointed Kamlesh Shiviji Vikamsey as an Independent Director.
• 2022: Deposits crossed first critical milestone of Rs 50,000 crore.
• 2023-24: Launched 'Planet First - AU Green Fixed Deposit' for a sustainable future.
• 2023-24: Merger of Fincare Small Finance Bank into AU came into effect on April 01, 2024.
• 2023-24: RBI licence granted in April to act as Authorized Dealer Category - 1 (AD-1) Bank.
• 2023-24: Introduced Wealth management solutions tailored to meet customers' financial aspirations.
• 2025: Celebrated 30 years of AU. Became the first Small Finance Bank in India to receive an in-principle approval from the Reserve Bank of India to transition into a Universal Bank.