Sunday, April 23, 2017

AU Small Finance Bank kick-starts operations


          The transformation of AU from a NFBC to a small finance bank is over.  It has informed BSE as it has received Banking licence from Reserve Bank of India to convert its existing Non-banking Finance Company (NBFC) to Small Finance Bank (SFB), it has done so, and hence w.e.f April 13, 2017., the  Company changed its existing name from Au FINANCIERS (INDIA) LIMITED to AU SMALL FINANCE BANK LIMITED.

          The new web address of AU Small Finance Bank is https://www.aubank.in/. The landing page on the webpage displays this message.


          In order to leverage the RBI License for Small Finance Bank, AU management have finalised a three-pronged operating model i.e Focus on existing customer base, be cost efficient and have technology driven hub-and-spoke branches.

          Au Financiers (India) Limited was one of the ten applicants that were issued in-principle approval on September 16, 2015, for setting up small finance banks.

AU started as a NBFC and was engaged in business of commercial and personal vehicle loans, Micro, Small and Medium Enterprise (MSME) loans and SME loans serving primarily low and middle income, under-served and unreached customer segment.

As a NBFC, AU had network of 300 branches spread across 10 states – Rajasthan, Maharashtra, Gujarat, Madhya Pradesh, Punjab, Delhi, Haryana, Himachal Pradesh, Chhattisgarh and Goa.  It intends to start Bank branches in all such locations in next couple of months. In the initial stages, its NBFC branches may be converted to Small Finance Bank Branches.

Excerpts from message of Shri Sanjay Agarwal-Managing Director of AU Small Finance Bank

Quote:
          AU SFB is fully aligned with vision of our Hon’ble Prime Minister of Financial Inclusion & Digital Banking and is stalwartly endorsing this through Aadhar Enable Paperless Account Opening, Paperless Transactions (No/ Minimal Forms), No Base Branch Concepts, etc. at our bank. AU SFB intends to uncomplicated banking with its immensely talented workforce which is groomed to continuously challenge the status-quo, rethink and reinvent. AU SFB is an equal opportunity employer providing a collaborative and rewarding platform to all our colleagues.

Unquote:
Read the journey of AU Group here.

Among those, Capital Small Finance Bank, Equitas Small Finance Bank, Utkarsh Micro Finance, Suryoday Microfinance, Ujjivan Small Finance Bank and ESAF Small Finance Bank have already commenced their operations.

The vision of Small finance banks are to provide  basic banking services like accepting deposits and lending to unserved and underserved including small business units, small and marginal farmers, micro and small industries and unorganised sector entities.