AU Small Finance Bank Limited is an Indian

Small finance bank Small may refer to: Science and technology * SMALL, an ALGOL-like programming language * Small (anatomy), the lumbar region of the back * ''Small'' (journal), a nano-science publication * <small>, an HTML element that defines smaller text ...

, based in

Jaipur Jaipur (; Hindi Language, Hindi: ''Jayapura''), formerly Jeypore, is the List of state and union territory capitals in India, capital and largest city of the Indian States and union territories of India, state of Rajasthan. , the city had a pop ...

India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...

. It was founded as vehicle finance company AU Financiers (India) Ltd in 1996 and converted to a

small finance bank Small may refer to: Science and technology * SMALL, an ALGOL-like programming language * Small (anatomy), the lumbar region of the back * ''Small'' (journal), a nano-science publication * <small>, an HTML element that defines smaller text ...

on 19 April 2017. AU Small Finance Bank serves low and middle income individuals and micro and small businesses that have limited or no access to formal banking and finance channels. The Bank offers loans, deposits and payment products and services. AU Small Finance Bank ranked 355 in the list of

Fortune India 500 The ''Fortune India'' 500 is a ranking of the top 500 corporations in India compiled on the basis of latest sales and gross revenue figures. The list is published annually by ''Fortune'' magazine. ''Fortune India'' is ''Fortune'' sixth internatio ...

(2019) companies, with annual revenue of and Total B/S Assets of . AU Bank enjoys long term credit rating of “AA-/Stable” from CRISIL Ratings, ICRA Ratings, India Ratings and CARE Ratings.

History

The company was founded by Sanjay Agarwal (managing director and CEO of AU Small Finance Bank) as a private limited company, and publicly listed in an IPO on 29 June 2017. A merit holder Chartered Accountant and a first generation entrepreneur, he holds ~28.5% stake in the Bank. He is supported by a team of 23,486 employees. AU Small Finance Bank is listed on NSE & BSE with market capitalization of ~Rs. 37,942 crore. On its first day of trading, the stock rose 51% to be the most expensive bank in India based on price-to-book. In November 2017, the

Reserve Bank of India The Reserve Bank of India, chiefly known as RBI, is India's central bank and regulatory body responsible for regulation of the Indian banking system. It is under the ownership of Ministry of Finance, Government of India. It is responsible for ...

added the bank to its schedule of commercial banks, further improving the bank's growth prospects by reducing the cost of short-term funds and improving the bank's ability to provide services.

Shareholding

Institutional holding

Over the years, the Bank has attracted marquee investors like IFC, Warburg Pincus, Temasek Holdings, Nomura, Kotak Mahindra MF, etc.

Private equity In the field of finance, the term private equity (PE) refers to investment funds, usually limited partnerships (LP), which buy and restructure financially weak companies that produce goods and provide services. A private-equity fund is both a ty ...

companies that provided

venture capital Venture capital (often abbreviated as VC) is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or which ha ...

, including

Warburg Pincus Warburg Pincus LLC is a global private equity firm, headquartered in New York, with offices in the United States, Europe, Brazil, China, Southeast Asia and India. Warburg has been a private equity investor since 1966. The firm currently has over ...

and

International Finance Corporation The International Finance Corporation (IFC) is an international financial institution that offers investment, advisory, and asset-management services to encourage private-sector development in less developed countries. The IFC is a member of t ...

, made partial exits for as much as nine times their original investment.

Bharti SBM

May 2020 - Bharti (SBM) Holdings Pvt. Ltd, a firm owned by

Sunil Mittal Sunil Bharti Mittal (born 23 October 1957) is an Indian billionaire entrepreneur, philanthropist and the founder and chairperson of Bharti Enterprises, which has diversified interests in telecom, insurance, real estate, education, malls, hospit ...

family has acquired 0.79% for a consideration of INR100 crores.

Services

Due to its history as a vehicle finance company, as of March 2018 almost all the loans made by AU Small Finance Bank were secured, unlike most small finance banks that have unsecured loans due to their background in

microfinance Microfinance is a category of financial services targeting individuals and small businesses who lack access to conventional banking and related services. Microfinance includes microcredit, the provision of small loans to poor clients; savings ...

. This provides lower yields (lower interest rates) than unsecured loans, so the bank has been particularly active in growing its deposits, as bank deposits have lower cost than other sources of funds. It has also sought to diversify into savings products like deposits, payment / transaction banking,

distribution Distribution may refer to: Mathematics *Distribution (mathematics), generalized functions used to formulate solutions of partial differential equations * Probability distribution, the probability of a particular value or value range of a vari ...

of third-party products, and additional loan products thereby positioning itself as a holistic financial products and services provider.

Footprint

As on June 30, 2021, AU Small Finance Bank's distribution network comprises 758 Banking Touchpoints, 23,486 employees spread contiguously across 15 states and two Union Territories with over 2 million customers. The bank has operations in 15 states and two union territory, with

Rajasthan Rajasthan (; lit. 'Land of Kings') is a state in northern India. It covers or 10.4 per cent of India's total geographical area. It is the largest Indian state by area and the seventh largest by population. It is on India's northwestern si ...

Gujarat Gujarat (, ) is a state along the western coast of India. Its coastline of about is the longest in the country, most of which lies on the Kathiawar peninsula. Gujarat is the fifth-largest Indian state by area, covering some ; and the ninth ...

Maharashtra Maharashtra (; , abbr. MH or Maha) is a states and union territories of India, state in the western India, western peninsular region of India occupying a substantial portion of the Deccan Plateau. Maharashtra is the List of states and union te ...

and

Madhya Pradesh Madhya Pradesh (, ; meaning 'central province') is a state in central India. Its capital is Bhopal, and the largest city is Indore, with Jabalpur, Ujjain, Gwalior, Sagar, and Rewa being the other major cities. Madhya Pradesh is the seco ...

being key states. It is one of the largest banks by number of locations in its home state of

References

{{Banking in India Small finance banks Indian companies established in 1996 Banks established in 1996 Private sector banks in India Warburg Pincus companies 1996 establishments in Rajasthan Companies based in Rajasthan Companies listed on the National Stock Exchange of India Companies listed on the Bombay Stock Exchange