India's AU Small Finance Bank gains on getting universal banking licence

AU Small Finance Bank

08/08/2025 04:58

** AU Small Finance Bank AUFI.NS gains 3% to 765.25 rupees

** Lender gets banking regulator's 'in-principle' approval to transition into universal bank, making it first full-fledged banking licence issued in nearly a decade

** Licence will allow bank to expand operations, in terms of issuing bigger loans, taking on more customers and making subsidiaries, all of which are limited for small finance banks

** Morgan Stanley views RBI's move as key positive for stock; says transition would help co improve its brand visibility, help sustain strong growth

** Goldman Sachs says licence reflects confidence in bank's governance, operational track record

** YTD, AUFI gains ~37%

 (Reporting by Kashish Tandon in Bengaluru)

 ((Kashish.tandon@thomsonreuters.com))