New Delhi: AU Small Finance Bank (AUSFB) on Tuesday submitted an application to the RBI seeking approval for a universal bank license. The RBI in April invited applications from small finance banks meeting specified criteria, including a minimum net worth of Rs 1,000 crore, for becoming regular or universal banks.
AUSFB submitted an application to the central bank seeking approval for the voluntary transition from a small finance bank to a universal bank on September 3, 2024, the lender said in a BSE filing.
In November 2014, the RBI issued guidelines for the licensing of small finance banks (SFBs) in the private sector. As per the April guidelines of RBI, an SFB aiming to become a universal bank should have a minimum net worth of Rs 1,000 crore at the end of the previous quarter and shares of the bank should have been listed on a recognized stock exchange.
It should also have a net profit in the last two financial years and gross NPA and net NPA of less than or equal to 3 per cent and 1 per cent, respectively, in the last two financial years.
Jaipur-based AUSFB acquired Fincare Small Finance Bank, and the merger became effective on April 1 this year. With the merger, the total business mix of the merged entity crossed Rs 1.8 lakh crore.