As per the April guidelines of RBI, an SFB aiming to become a universal bank should have a minimum net worth of Rs 1,000 crore at the end of the previous quarter and shares of the bank should have been listed on a recognised stock exchange.
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New Delhi: AU Small Finance Bank (AUSFB) on Tuesday submitted an application to the RBI seeking approval for a universal bank licence. The RBI in April invited applications from small finance banks meeting specified criteria, including a minimum net worth of Rs 1,000 crore, for becoming regular or universal banks.
AUSFB submitted an application to the central bank seeking approval for the voluntary transition from a small finance bank to a universal bank on September 3, 2024, the lender said in a BSE filing.
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In November 2014, the RBI issued guidelines for the licensing of small finance banks (SFBs) in the private sector. As per the April guidelines of RBI, an SFB aiming to become a universal bank should have a minimum net worth of Rs 1,000 crore at the end of the previous quarter and shares of the bank should have been listed on a recognised stock exchange.
It should also have a net profit in the last two financial years and gross NPA and net NPA of less than or equal to 3 per cent and 1 per cent, respectively, in the last two financial years.
Jaipur-based AUSFB acquired Fincare Small Finance Bank, and the merger became effective on April 1 this year. With the merger, the total business mix of the merged entity crossed Rs 1.8 lakh crore.
