AU Small Finance Bank (NSE:AUBANK, BOM:540611) has submitted an application to the Reserve Bank of India to seek approval for the lender's plan to transition to a universal bank from a small finance bank, according to a Tuesday filing to the stock exchanges.
The transition to a universal bank will allow the lender to offer a wider range of banking services and financial products such as credit cards, mutual funds, and investments.
As per RBI's guidelines issued earlier in the year, a small finance bank aiming to become a universal bank should have a minimum net worth of 10 billion Indian rupees as at the end of the previous quarter (audited) and it should be listed on a recognized stock exchange. It should also have been profitable, with gross non-performing assets of less than 3% and net non-performing assets of less than 1% in the previous two financial years.
Price (INR): â¹674.25, Change: â¹-6.5, Percent Change: -0.96%
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