Sanjay Agarwal, the founder and CEO of AU Small Finance Bank, said he built India's largest small finance bank [1].

The conversation highlights the evolution of the Indian financial sector and the specific challenges of scaling a non-banking financial company into a full-scale bank. Agarwal's trajectory serves as a case study in domestic institutional growth and the strategic necessity of succession planning for long-term stability.

Agarwal said he transitioned from a modest non-banking financial company (NBFC) to the current status of AU Small Finance Bank as the largest of its kind in India [1]. He attributed this growth to a combination of ambition and a focus on filling gaps in the domestic credit market.

During the discussion, Agarwal said India needs to support its own financial institutions. He said domestic institutional backing is critical for the country to maintain financial sovereignty and support local economic development, a move that reduces reliance on foreign capital.

Succession planning was another primary focus of the conversation. Agarwal said that for an institution to survive its founder, it must implement a structured transition of leadership. This ensures that the vision for growth continues without disruption as the bank scales further into the Indian market [1].

Prasanna Mohile, the national head of corporate affairs at Pernod Ricard India, also featured in the discussion. The dialogue focused on the intersection of corporate ambition and the operational realities of managing a rapidly expanding financial entity in a competitive landscape [1].

Agarwal said the bank's current position is a result of a deliberate strategy to scale while maintaining the agility of its earlier NBFC roots [1].

“AU Small Finance Bank is India's largest small finance bank”

The transition of AU Small Finance Bank from an NBFC to a leading SFB reflects a broader trend in India's financial services sector toward formalization. By emphasizing domestic institutional support and succession planning, Agarwal is signaling a shift from founder-led growth to institutionalized governance, which is necessary for banks to attract larger deposits and maintain regulatory trust.