AU Small Finance Bank to double balance sheet to Rs2.5 trillion in 3 yrs

AU Small Finance Bank is targeting to double its balance sheet size to Rs 2.5 trillion in three years, helped by the acquisition of Fincare SFB and the growing consumption trend in the country.

The bank earlier this week operationalized Authorised Dealer (AD-I) license with foray in forex with 'AU Remit' and Cross-border Trade with 'AU DigiTrade'.

"We are targeting a growth of 25 per cent in the next three years and we should double the balance sheet size to Rs 2.5 trillion by the time we complete one decade of existence," AU Small Finance Bank managing director Sanjay Agarwal told PTI.

The bank started its business in 2017, with a balance sheet size of Rs 10,000 crore, which has now crossed Rs 1.25 trillion.

Human resources has gone up from just 3,000 to 46,000 during the same period, he said. At the same time, the branch network has increased from 300 to 2,400 touch points currently, he said.

Pointing out that banks are formed by the people and for the people, he said, the endeavour would be to transform AU Small Finance Bank into the bank for generations as it is a public property. Citing the example of HDFC Bank, Agarwal said, he would like to follow the model adopted by HDFC Bank - growing business both organically and inorganically.

AU Small Finance Bank (AU SFB) on April 1, amalgamated Fincare Small Finance Bank (Fincare SFB), marking the first such consolidation in the sector.

In an all-stock merger deal first announced on October 29, 2023, where the shareholders of Fincare SFB received 579 equity shares in AU SFB for every 2,000 equity shares held in Fincare SFB, the merger received final

Reserve Bank

March 4, 2024.

The merger has provided AU SFB with enhanced access to South India, significantly expanding its distribution network.

This increased presence will facilitate the distribution of the bank's diverse range of products and services to a wider customer base, strengthening its market position in the region.

The focus now has shifted to ensuring a smooth and seamless integration within the next 9-12 months and delivering exceptional banking services and value to the customers, he said.

To ensure seamless transition and minimal customer disruption due to the merger, both tech-led banks with strong customer orientation have established a dedicated task force and equipped their call centres to answer all customer queries. approval from the of India (RBI) on