Sanjay Agarwal Reappointed MD & CEO of AU Small Finance Bank for Third Term; As RBI Approves Three-Year Extension, Know All About Him

Mumbai, February 13: The Reserve Bank of India (RBI) has approved the reappointment of Sanjay Agarwal as the Managing Director and Chief Executive Officer of AU Small Finance Bank (AU SFB) for a further three-year term. The approval, announced on Friday, February 13, ensures leadership continuity for India's largest small finance bank as it prepares for a historic transition into a universal bank. The new term will officially commence on April 19, 2026, and run through April 18, 2029.

A Smooth Regulatory Transition

The RBI’s confirmation marks the final step in a multi-stage approval process. AU Small Finance Bank’s Board originally cleared the extension on October 17, 2025, followed by overwhelming support from shareholders during a meeting on December 26, 2025. Vinay Muralidhar Tonse Appointed Yes Bank CEO and MD; As RBI Approves Appointment of Veteran Banker, Know All About Him.

This latest sanction marks Agarwal's third consecutive term since AU transitioned from a Non-Banking Financial Company (NBFC) to a Small Finance Bank in 2017. Analysts view the move as a strong signal of regulatory confidence in the bank’s governance and its ongoing efforts to meet universal banking standards.

The Road to Universal Banking

The reappointment comes at a critical juncture for the Jaipur-headquartered lender. AU SFB recently became the first institution in over a decade to receive in-principle approval from the RBI to transition into a universal bank. This status will allow AU to offer a broader range of financial products and compete directly with major private sector lenders.

Under the current management, the bank has seen significant growth, with its asset base reaching approximately INR 1.30 lakh crore as of December 2025 - a nearly 20 per cent year-on-year increase. Sonali Sen Gupta Appointed As New Executive Director of RBI.

Who Is Sanjay Agarwal?

Sanjay Agarwal is a first-generation entrepreneur and a merit-ranking Chartered Accountant who founded AU Financiers (the predecessor to AU SFB) in 1996. Based in Jaipur, he started the venture to provide credit to underserved populations in rural and semi-urban Rajasthan, initially focusing on second-hand vehicle financing.

Over three decades, Agarwal transformed the local financing firm into a national banking powerhouse. He has been the Managing Director of the entity since February 14, 2008, and took the helm as MD & CEO of the bank during its 2017 conversion. His leadership has been recognised with numerous accolades, including the EY Entrepreneur of the Year Award (2018) in the Financial Services category.

Impact on Stakeholders

For investors and customers, the extension offers a guarantee of strategic stability. The bank’s "AU 0101" digital platform and AI-driven operations have remained central to its growth strategy under Agarwal’s stewardship. As the bank moves toward full universal status, it is expected to shift its corporate headquarters to Mumbai to better align with national banking operations, while maintaining its strong roots in Rajasthan.

(The above story first appeared on LatestLY on Feb 13, 2026 09:21 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).