AU Small Finance Bank gets RBI nod to reappoint Sanjay Agarwal as CEO

AU Small Finance Bank has secured regulatory approval to reappoint Sanjay Agarwal as managing director and chief executive officer, clearing the way for a fresh three-year term starting April 19, 2026.

The lender said in a regulatory filing that the Reserve Bank of India, through a letter dated February 12, granted its approval under the SEBI Listing Obligations and Disclosure Requirements framework, as CNBCTV18 reported.

The reappointment will be effective for three years, beginning April 19, 2026, the bank said, following earlier endorsements from its board and shareholders.

AU Small Finance Bank noted that the board had approved Agarwal’s continuation in October 2025, while shareholders provided their consent in December, subject to the central bank’s clearance.

The regulatory nod comes as the Jaipur-based lender posts strong operating momentum. In results announced on January 20, AU Small Finance Bank reported a 26.3% year-on-year rise in net profit to ₹667.6 crore for the December quarter of FY26, up from ₹528 crore a year earlier, driven by growth in core income.

Net interest income rose at the same pace, increasing 26.3% to ₹2,341.3 crore, reflecting steady loan expansion and stable margins.

Asset quality showed marginal improvement, with gross non-performing assets easing to 2.30% from 2.41% sequentially, while net NPAs remained flat at 0.88%.

Investor sentiment has also been supported by expectations of higher passive inflows. According to Nuvama Alternative and Quantitative Research, the bank is estimated to attract around $172 million, or 15.6 million shares, following a weight increase in the MSCI Global Standard Index due to a float adjustment, CNBCTV18 reported.

Shares of AU Small Finance Bank closed 0.91% higher at ₹999.30 on the NSE on February 12.

With the RBI’s approval now in place, Agarwal’s renewed term is expected to provide leadership continuity as the bank balances growth ambitions with asset quality discipline in an increasingly competitive retail lending market.