AU Small Finance Bank has got approval from the Reserve Bank of India (RBI) to reappoint Sanjay Agarwal as its Managing Director and Chief Executive Officer (MD & CEO). His new three-year term will start from April 19, 2026.
The bank shared this update in a regulatory filing. The approval was given under rules set by the Securities and Exchange Board of India (SEBI). The news was first reported by CNBCTV18.
Board and Shareholders Already Approved
Before getting RBI approval, the board of AU Small Finance Bank had approved Sanjay Agarwal’s reappointment in October 2025. Shareholders said yes in December 2025. After that, the bank got approval from the Reserve Bank of India.
Now, the Jaipur-based bank will continue with the same leadership.
Strong Q3 FY26 Results
The RBI approval comes at a time when AU Small Finance Bank is showing strong financial growth.
For the December quarter of FY26, the bank reported:
- Net profit rose 26.3% to ₹667.6 crore, compared to ₹528 crore last year.
- Net interest income (NII) increased by the 26.3% to ₹2,341.3 crore.
This means the bank earned more money from giving loans. The growth happened because the bank gave more loans and maintained steady profits.
Asset Quality Improved
The bank’s loan position became slightly better:
- Gross NPAs fell to 2.30% from 2.41%.
- Net NPAs stayed at 0.88%.
This shows that AU Small Finance Bank is controlling bad loans well while growing its business.
Possible $172 Million Inflow from MSCI Index
According to Nuvama Alternative and Quantitative Research, the bank may receive around $172 million in investments. This is because its weight has increased in the MSCI Global Standard Index after a float adjustment.
Such index changes usually attract foreign and passive investors.
Share Price Update
Shares of AU Small Finance Bank closed 0.91% higher at ₹999.30 on the National Stock Exchange of India (NSE) on February 12.
What It Means
With RBI approval in place, AU Small Finance Bank will continue under Sanjay Agarwal’s leadership for the next three years. Strong profits, stable asset quality, and expected foreign inflows may support the bank’s growth in the coming quarters.
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