Sanjay Agarwal, the visionary entrepreneur behind AU Small Finance Bank, has navigated two decades of challenges to emerge as a beacon of success in India’s banking sector. From humble beginnings in 1996, when he founded AU Financiers, Agarwal has steered his company through turbulent waters to achieve remarkable growth and recognition.
Initially focusing on automobile loans, AU Financiers struggled in its early years, but Agarwal’s perseverance and strategic acumen propelled the company into a phase of rapid expansion. Recognizing the inherent challenges of financing for non-banking finance companies (NBFCs), he foresaw an opportunity in the RBI’s initiative to deepen financial inclusion through small finance banks.
In 2017, AU Small Finance Bank was born, marking a pivotal moment for Agarwal and his team. This transformational step allowed AU to significantly broaden its scope and impact. Unlike many of its peers, AU was the only NBFC among 72 applicants selected by the RBI for a small finance bank license, underscoring its robust track record and operational integrity.
Since obtaining its banking license, AU Small Finance Bank has demonstrated stellar performance metrics. The bank’s loan assets have surged from ₹10,734 crore to ₹33,222 crore, accompanied by a revenue spike from ₹1,280 crore to ₹4,286 crore, achieving an impressive annual growth rate of 35 percent. Despite the challenges posed by the pandemic, AU has maintained a commendable net non-performing asset ratio of 0.2 percent, reflecting its prudent risk management practices.
The financial community has taken notice, with AU Small Finance Bank now boasting a market capitalization of ₹33,700 crore ($4.4 billion). Sanjay Agarwal’s stake in the bank is valued at $1.3 billion, catapulting him onto the esteemed Forbes Billionaires List. Notably, Agarwal has also championed employee ownership, with 6 percent of the bank held by its dedicated workforce.
Looking ahead, Agarwal remains steadfast in his ambitions, aiming to grow AU Small Finance Bank’s loan book to ₹100,000 crore within the next three to five years. His vision extends beyond mere financial milestones; it encompasses a commitment to furthering financial inclusion and expanding AU’s reach into underserved communities across India.
Agarwal’s journey is a testament to entrepreneurial spirit and resilience. He has not only overcome industry challenges but has also set a precedent for sustainable growth in banking. As AU Small Finance Bank continues to thrive under his leadership, Sanjay Agarwal’s legacy as a transformative figure in India’s financial landscape is firmly cemented.
