AU Small Finance Bank aims to double its balance sheet size to Rs 2,500 crore in three years through the acquisition of Fincare SFB and growing consumption trends in the country.
Earlier this week, the bank operationalized its Authorized Dealer (AD-I) license with its foray into foreign exchange through AU Remit and cross-border trading through AU DigiTrade.
Sanjay Agarwal, Managing Director, AU Small Finance Bank, said, „We are targeting 25% growth over the next three years and will double the size of our balance sheet to 25% by the end of our 10th year. It needs to be expanded to Rs 100 crore,” he said. P.T.I..
The bank started operations in 2017 with a balance sheet size of Rs 10,000 crore, which has now grown to over Rs 1,250 crore. He said human resources increased from just 3,000 to 46,000 people during the same period.
At the same time, touchpoints in the branch network have now increased from 300 to 2,400, he said.
He noted that the bank was established by the people, for the people, and said it would be an effort to transform the AU Small Finance Bank, which is a public asset, into a bank for generations.
Citing the example of HDFC Bank, Agarwal said they want to grow the business through the model adopted by HDFC Bank, both organically and inorganically.
AU Small Finance Bank (AU SFB) merged with Fincare Small Finance Bank (Fincare SFB) on April 1, marking the first such merger in the industry.
Under the all-stock merger agreement, first announced on October 29, 2023, Fincare SFB shareholders will receive 579 shares of AU SFB for every 2,000 shares held in Fincare SFB, and the merger will be finalized by the Reserve Bank of India. Approved (RBI) on March 4, 2024.
This merger gives AU SFB greater access to South India and significantly expands its distribution network. This increased presence will facilitate the distribution of the bank's diverse products and services to a broader customer base and strengthen its market position in the region.
He said the focus has now shifted to ensuring smooth and seamless integration within the next nine to 12 months and delivering superior banking services and value to customers.
To ensure a seamless transition and minimize customer disruption from the merger, both technology-driven banks with a strong customer focus have established a dedicated task force and a call center to answer all customer questions.
In 2015, the RBI granted licenses to 10 companies to set up small finance banks to provide basic banking services to small farmers and micro-industries.
This is the first merger and acquisition to take place following the granting of a license by regulators.
As part of promoting financial inclusion, small finance banks provide basic banking services such as deposit acceptance and loans to unbanked sectors such as small farmers, micro enterprises, micro and small industries, and unorganized sector entities. was established to provide.