AU Small Finance Bank Receives RBI Relaxation on NOFHC Requirement

AU Small Finance Bank Limited (NSE: AUBANK, BSE Scrip Codes: 540611, 974093, 974094, 974095, 974914, 974963, 975017, 975038, 976580) announced a key regulatory update in its transition from Small Finance Bank to Universal Bank status.

The Reserve Bank of India (RBI), vide letter dated March 6, 2026, modified its in-principle approval dated August 7, 2025. Previously, RBI stipulated that promoters/promoter group shareholding in the transitioned Universal Bank must be held through a Non-Operative Financial Holding Company (NOFHC). This NOFHC requirement is now deferred and will only apply if the Bank or its promoter group establishes any new group entity in the future.

The original 18-month validity of the in-principle approval remains intact. AU SFB will submit its final Universal Banking license application per RBI guidelines, subject to Board oversight and within stipulated timelines, pending RBI's final assessment of regulatory compliance.

Shares of AU Small Finance Bank Limited was last trading in BSE at Rs. 964.10 as compared to the previous close of Rs. 972.80. The total number of shares traded during the day was 35443 in over 1884 trades.

The stock hit an intraday high of Rs. 980.40 and intraday low of 962.05. The net turnover during the day was Rs. 34468377.00.

Source : Equity Bulls

Keywords

AUSmallFinanceBank INE949L01017 RegulatoryUpdate RBI UniversalBankStatus