The Journey of AU Bank: From a Vehicle Financier to Evolving into a Trusted Small Finance Bank
For 24 years, AU Small Finance Bank
has been helping customers with more than their money. The bank has been fulfilling dreams and changing lives at every step.
Here’s a look at the company’s key milestones over the last two decades.
– The company was initially started as Au Financiers, focusing on vehicle finance
. It was the vision of the enterprising founder, Mr. Sanjay Agarwal, a first-generation entrepreneur and meritorious Chartered Accountant. The company was incorporated as L.N. Finco Gems Pvt Ltd in Rajasthan with a share capital of 0.1 million.
– The company transitioned from a financier to a Non-Banking Financial Institution, after authorization of the RBI under Section 45 I A of the RBI Act.
– The company partnered with HDFC Bank, one of India's premier private banks on a risk-sharing model. It was the year Mr. Uttam Tibrewal, the Executive Director of the organization came on-board.
– The company moved into the million-dollar investment club by securing funding of Rs. 200 million from India Business Excellence Fund and India Business Excellence Fund -1, both private equity funds under Motilal Oswal Private Equity.
– RBI reclassifies the company as NBFC – ND – AFC with the status of Systematically Important Non-Deposit Taking Asset Finance Company. It received a fresh round of investments worth Rs. 550 million from IFC (International Finance Corporation), IBE Fund, and IBE Fund – I. It was the year the company started offering housing loans.
– The company set up Au Housing Finance Pvt Ltd, a wholly-owned subsidiary, to begin offering home finance services.
– The company is infused with additional investments worth Rs. 1830.44 million. Au Insurance Broking Services Pvt Ltd was set up as a subsidiary to provide insurance and broking services. The company proved its trustworthiness when CRISIL upgraded it by two notches to CRISIL A for providing stable long-term credit facilities. Au Financiers was featured in Forbes India, as an example of an Indian company that attracted investors despite a global slowdown.
– Received credit rating IND A+/Stable for long-term credit facilities and IND A1+ for short-term credit facilities.
– Earned the distinction of being the only AFC to receive in-principle approval from RBI to establish a small finance bank.
– It was a critical turning point for the company as it received the final approval from the RBI to start operations as a small finance bank. The company earned the prestigious Brickwork Ratings BWRAA for long-term credit with a stable outlook. On receiving the RBI approval, the company divested its equity into Au Housing Finance and Index Money Ltd and Au Insurance Broking Services and M Power Micro Finance Pvt Ltd.
– The crowning glory of AU Bank's journey over the years. Au Financiers Ltd, the NBFC, was officially transformed into AU Small Finance Bank, with the mission of financial inclusion and fulfilling client needs promptly and efficiently.
AU Bank – Your Trusted Banking Partner for Life
Today, AU Small Finance Bank is a scheduled commercial bank with 340+ branches pan-India and serving 20+ lakh customers. As a retail-focused bank, AU Bank works with micro, small, medium, and large businesses, helping them through every stage of the business lifecycle. Besides retail banking services, AU has been assisting lakhs of customers to build, save, and grow their money with personal banking, insurance, and loans.
True to its tagline of #BharosaApnoJaisa,
AU Small Finance Bank is not just good with money, but also trusted by lakhs of customers for exceptional service and helping them fulfil dreams at every step of their lives.