RBI eases holding co condition for AU Small Fin Bank's universal bank shift
This story was originally published at 18:18 IST on 7 March 2026
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NEW DELHI – AU Small Finance Bank Saturday said the Reserve Bank of India has relaxed the condition that required the lender's promoters to set up a non-operative financial holding company once it transitioned to a universal bank.
In an exchange filing Saturday, AU Small Finance Bank said that its promoters will now have to set up a holding company for the transitioned universal bank only if there is a proposal to establish any group entity in the future.
"As part of the in-principle approval, RBI had stipulated that the shareholding of the promoters/promoter group in the transitioned Universal Bank be held through a Non-Operative Financial Holding Company," the bank said. "This requirement for NOFHC (non-operative financial holding company) 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."
AU Small Finance Bank will submit its application for the final universal banking licence under the guidance of its board and within the stipulated timelines, it said. The RBI in August gave its in-principle approval to AU Small Finance Bank to transition into a universal bank and the approval is valid for 18 months.
For the quarter ended December, AU Small Finance Bank reported a net profit of INR 6.68 billion on a total income of INR 54.51 billion. Shares of the bank Friday ended nearly 1% lower at INR 964.25 on the National Stock Exchange. End
Reported by Shubham Rana
Edited by Deepshikha Bhardwaj
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