Sanjay Agarwal: AU Bank scaled tenfold despite COVID, rate shocks, NBFC crisis

Sanjay Agarwal, MD and CEO of AU Small Finance Bank, on Tuesday (January 13), said that over the past nine years, the bank’s balance sheet has grown tenfold, navigating challenges such as COVID, high interest rates, and NBFC crises.

Agarwal said he began the bank’s journey by focusing on high net-worth clients and later partnered with HDFC Bank, a relationship that shaped AU Bank’s approach to risk management, distribution and franchise building. Investor Raamdeo Agrawal said AU Bank stood out early as one of the most professionally-run small lenders, highlighting its decision to avoid unsecured lending in the initial years as a key factor in managing risk and enabling steady growth.

Highlighting the role of technology, Sanjay Agarwal said AI-led communication and operational tools now allow the bank to reach deeper markets and serve customers more efficiently, helping it scale faster than traditional banking models.

On leadership and succession, the AU Bank CEO said banks function as public platforms and require continuity beyond individual promoters. He said his role is to build a leadership team capable of running the institution independently in the future. Crediting mentorship, Agarwal said Raamdeo Agrawal pushed him to think bigger, strengthen governance and stay patient in building a lasting institution.

Looking ahead, Sanjay Agarwal said disciplined capital management, strong teams and technology could help AU Bank grow into a much larger institution over the next two decades, with a focus on longevity rather than short-term expansion.

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