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regular-article-logo Friday, 22 November 2024

AU Small Finance Bank submits application to RBI for voluntary transition to universal bank

The bank had earlier informed the bourses in July that it has formed a four-member committee headed by former RBI deputy-governor H.R. Khan, who is the chairman and independent director of the bank, to vet the application for submission to the RBI

A Staff Reporter Calcutta Published 04.09.24, 11:17 AM
Representational image

Representational image Sourced by the Telegraph

AU Small Finance Bank has formally applied to the Reserve Bank of India for voluntary transition to universal bank.

“We wish to inform that the bank has submitted an application to the RBI to seek approval for voluntary transition from a Small Finance Bank to Universal Bank today i.e, September 3, 2024,” the bank said in a stock exchange filing.

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The bank had earlier informed the bourses in July that it has formed a four-member committee headed by former RBI deputy-governor H.R. Khan, who is the chairman and independent director of the bank, to vet the application for submission to the RBI.

According to the RBI’s circular on voluntary transition of small finance banks to universal banks, a minimum net worth of 1,000 crore, net profit in the last two financial years and GNPA and NNPA of less than equal to 3 per cent and 1 per cent, respectively, are among the eligibility criteria to make the transition.

As of March 31, 2024, the bank’s standalone net worth was 12,560 crore with a net profit of 1,592 crore, GNPA of 1.67 per cent and NNPA of 0.55 per cent. During Q1FY25, the net profit of the bank was 503 crore compared with 387 crore in the corresponding period of the previous year.

At the Q1 earnings call of the company, Sanjay Agarwal MD and CEO of AU Small Finance Bank, had said that the universal licence will improve awareness and trust and move up the bank’s brand acceptance.

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