This follows earlier approvals from the Board on October 17, 2025, and shareholders on December 26, 2025, subject to RBI’s confirmation.
Mr. Agarwal first became MD of AU Financiers on February 14, 2008, and subsequently MD & CEO of AU Small Finance Bank on April 19, 2017, when the institution transitioned into a bank. Since then, each of his terms -including the ongoing one from April 19, 2023 to April 18, 2026, has been approved by RBI. This latest approval marks his third consecutive RBI-sanctioned term post conversion, underscoring long-term stability, strong governance, and regulatory confidence in his leadership.
The approval comes at a landmark moment as AU prepares for its potential transition into a Universal Bank, subject to final RBI approval. Continuity in leadership at this stage strengthens AU’s readiness and reinforces its credibility for the next phase of growth.
Under Mr. Agarwal’s stewardship, AU has transformed from a small NBFC into India’s most successful Small Finance Bank, driven by:
Strong governance and compliance culture
Consistent financial performance
Prudent risk management
Customer-centric business model
Disciplined expansion across secured retail and emerging segments
Progressive digital transformation powered by AU 0101, AI-driven operations and data-led banking
This continuity assures all stakeholders of AU’s stability, resilience and sustained strategic direction.
Harun R Khan, Chairman, AU Small Finance Bank, said, “We welcome the Reserve Bank of India’s approval of Sanjay Agarwal’s reappointment. For the Board, this reaffirmation from the regulator is a strong validation of AU’s governance discipline, leadership stability and long-term direction. The timing is especially significant as AU stands at the threshold of its Universal Bank transition under the guidance of RBI. Continuity at the top ensures that our strategic priorities are pursued with clarity, prudence and unwavering responsibility. The Board is confident that under Sanjay’s leadership, AU will continue to uphold the highest standards of trust, transparency and sustainable growth.
On his reappointment, Sanjay Agarwal, Founder, MD & CEO, AU Small Finance Bank said,
“I sincerely thank the Reserve Bank of India for its continued trust and approval of my reappointment. Their confidence in AU’s governance, culture and long-term vision is deeply humbling. Over the years, we have built a Bank powered by inclusion, innovation, integrity and a strong sense of responsibility towards every stakeholder. As we enter the next three years and as AU prepares for its transition into a Universal Bank - our focus will be on strengthening our secured retail engines, accelerating our AI-driven transformation, expanding our liabilities franchise, and ensuring AU remains a trusted, progressive and future-ready Bank for millions of Indians. My commitment to AU SFB, to our people, our customers, our shareholders and our communities -remains unwavering.”
This leadership stability comes at the most decisive phase in AU’s history as it stands on the cusp of becoming a Universal Bank ensuring strategic continuity and organisational resilience.
About AU Small Finance Bank
AU Small Finance Bank Limited (AU SFB) is a Scheduled Commercial Bank and has established itself as India’s largest Small Finance Bank since commencing its banking journey in April 2017. Founded in 1996 by Mr. Sanjay Agarwal, a first-generation entrepreneur, AU enters its 30th year of operations with a legacy of deep-rooted “Dharma” of customer centric service—having built, over three decades including more than eight years as a bank, a sustainable and inclusive financial institution that empowers underserved and under-reached communities through a robust retail banking model. AU has received an in-principle approval from RBI to transition to a Universal Bank.
With deep customer insight across India, AU provides comprehensive banking solutions across deposits, loans, credit cards, premium banking, remittance services, merchant solutions, insurance, and investments. As a tech-led bank, AU offers differentiated digital experiences through innovations like 24x7 video banking, WhatsApp Banking, Chatbots, UPI QRs, merchant lending, and its award-winning AU 0101 app.
AU SFB’s wide network of over 2,726 banking touchpoints across 21 States and 4 Union Territories enables service to more than 1.25 crore customers, powered by a workforce of 59,800+ employees. As on 31st Dec’25, Bank has a Shareholders Funds of ₹19,085 Cr, Deposit base of ₹1,38,415 Cr, Total Loan Portfolio of ₹1,29,898 Cr and a Balance sheet size of ₹1.74 Lac Cr+.
AU SFB is listed on NSE and BSE and is rated ‘AA/Stable’ by CRISIL Ratings, ICRA Ltd., CARE Ratings.

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