AU Small Finance Bank is an Indian scheduled commercial bank that was founded as a finance company called AU Financiers Ltd. in 1996 and transformed to a small finance bank on April 19, 2017. AU Small Finance Bank works for low and middleincome individuals and micro and small businesses that have limited or no access to formal banking and finance channels. The bank primarily offers loans, deposits and payment products and services. AU Small Finance Bank was ranked 355 in the list of Fortune India 500 companies in 2019 with annual revenue of ₹3,410.87 crore and total balance-sheet assets of ₹31,198.68 crore. The bank has benefited from a long-term credit rating of ‘AA- and Stable’ from CRISIL Ratings, ICRA Ratings, India Ratings and CARE Ratings.
Due to its history of functioning as a finance company, almost all the loans disbursed by AU Small Finance Bank were secured unlike most small finance banks that have unsecured loans due to their background in microfinance. This provides lower interest rates than unsecured loans and so the bank has been particularly active in growing its deposits since bank deposits have lower cost than other sources of funds. It has also sought to diversify into savings products such as deposits, payment and transaction banking, distribution of third-party products and additional loan products, thereby positioning it as a holistic financial products and services provider.
Financial Overview
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