Fincare Small Finance Bank: AU SFB looks to double its deposit base in 3 years
MUMBAI: AU Small Finance Bank expects to close the year with Rs 1 lakh crore of deposits should the announced merger with Fincare Small Finance Bank go through. The Jaipur-based lender expects to achieve deposits of Rs 2 lakh crore by March 2027 – its 10th year of operations, founder, MD & CEO Sanjay Agarwal said.
Agarwal told TOI that while the model continues to be lending to retail, the bank may apply for a universal bank licence as this recognition would help bring down the cost of funds. AU SFB had deposits of over Rs 75,000 crore as of September 2023 while Fincare SFB has deposits close to Rs 10,000 crore.
“We have grown steadily at 28-30%. If we sustain this rate, we should be able to grow deposits to Rs 2 lakh crore by March 2027,” said Agarwal. He added that achieving Rs 1 lakh crore in deposits in seven years is one of the fastest growth rates by any bank.
According to Agarwal, growing the assets is not a challenge. “Unlike traditional banks, we compete primarily with NBFCs rather than other banks in the asset segment. But when it comes to deposits, we compete with all the banks,” he said.
Agarwal told TOI that while the model continues to be lending to retail, the bank may apply for a universal bank licence as this recognition would help bring down the cost of funds. AU SFB had deposits of over Rs 75,000 crore as of September 2023 while Fincare SFB has deposits close to Rs 10,000 crore.
“We have grown steadily at 28-30%. If we sustain this rate, we should be able to grow deposits to Rs 2 lakh crore by March 2027,” said Agarwal. He added that achieving Rs 1 lakh crore in deposits in seven years is one of the fastest growth rates by any bank.
According to Agarwal, growing the assets is not a challenge. “Unlike traditional banks, we compete primarily with NBFCs rather than other banks in the asset segment. But when it comes to deposits, we compete with all the banks,” he said.
