1. At a Glance
Welcome to Jaipur’s most ambitious export after bandhani dupattas — AU Small Finance Bank Ltd, now marching toward universal-bank glory.
Q2 FY26 revenue: ₹4,511 crore (+15 %), PAT: ₹561 crore (-1.8 %), NIM ≈ 6 %, ROE 14 %, GNPA 2.3 %, and a market-cap of ₹59,000 crore at ₹792 a share.
P/E 27×, P/B 3.3×, dividend yield 0.13 %.
It’s India’s largest SFB by far — a ₹1.08 lakh crore loan book and ₹1.32 lakh crore deposits, run by CEO Sanjay Agarwal, who went from used-car loans to RBI handshakes.
Every quarter looks the same: deposits up, margins steady, and one new fintech tie-up for ‘digital disruption’. Basically, the bank runs on NIMs, UPI, and Marwari confidence.
2. Introduction
Once upon a time in Rajasthan, a man with a calculator and a Bolero decided that NBFCs deserved bank licenses. Fast-forward 2025: AU SFB is the poster child of RBI’s “Small Banks Can Also Dream” campaign.
After starting with wheel loans, the bank now does everything from mortgages to microfinance to luxury cards under its ‘AU Eternity’ program — because why not sell Mastercard rewards to people who still negotiate FD rates.
The last twelve months were wild: CFO passed away, RBI granted in-principle approval for universal-bank conversion, deposits grew 40 %, and Sanjay Agarwal got re-appointed till 2029. Somewhere in between, the bank launched a 24×7 video-banking booth so you can open accounts while binge-watching Shark Tank India.
But the question remains — can this ex-NBFC really become an HDFC Bank, or will it remain Rajasthan’s most glamorous cooperative society?
3. Business Model – WTF Do They Even Do?
They do everything except lose money.
Retail banking = 76 % of business, treasury 13 %, wholesale 9 %, others 2 %. The bank serves 1.1 crore customers through 2,400 touchpoints and 674 ATMs. Loan book ₹1.09 lakh crore split as:
