This restructuring is in line with the Reserve Bank of India’s (RBI) guidelines and follows the central bank’s in-principle approval granted on August 7.
“The RBI has given us 18 months to complete this transition,” the bank said, referring to the timeline for shifting the promoter stake to the NOFHC structure.
This move is a critical compliance step before AU SFB can operate as a full-fledged universal bank.
H R Khan, Chairman, AU SFB, said the RBI’s approach has been to encourage entities with operational expertise to graduate to the next level. “We were the first off the block to apply for a universal banking license as an SFB. Our balance sheet of ₹1.60 lakh crore is already bigger than some smaller universal banks,” Khan said.
He added that the transition phase will be crucial, and the bank will build on its investments in technology and talent to strengthen governance.
Sanjay Agarwal, MD & CEO, said, “Challenges are part of the business. Nothing happens in one day, but then one day everything happens.”
He reaffirmed the bank’s intent to complete the transition within the 18-month period and noted that the benefits of becoming a universal bank will be gradual.
The bank also announced plans to move its headquarters to BKC in Mumbai as part of this strategic shift.
