When RBI gave its in-principle approval on August 7, 2025 for AU SFB’s transition from a Small Finance Bank to a Universal Bank, it had stipulated that the shareholding of the promoters/promoter group in the transitioned Universal Bank be held through a NOFHC.
But pursuant to the Bank’s request, RBI has replaced the aforesaid stipulation, AU SFB said in a regulatory filing.
“This requirement for NOFHC will now be applicable on the transitioned Universal Bank, if the Bank or its promoter (including promoter group) proposes to establish any group entity in the future,” it added.
So, in case the bank or its promoter/ promoter group wants to get into any other business like mutual fund or insurance post becoming a universal bank then they will need to form NOFHC.
AU SFB said it will submit its application for the final Universal Banking license, in line with RBI’s letter dated August 7, 2025 conveying its in-principle approval for transition, under the guidance of its Board and within the stipulated timelines. The RBI’s in-principle approval is valid for a period of 18 months.
AU SFB is the first small finance bank to receive RBI’s in-principle approval to transition into a universal bank.
In the third quarter ended December 31 2025, the Bank’s total deposits were up 23.3 per cent year-on-year (yoy) to stand at ₹1,38,415 crore. Advances rose 19.3 per cent yoy to stand at ₹₹1,29,898 crore. Net profit rose 26 per cent yoy to ₹668 crore.
Published on March 7, 2026