Mumbai, Feb. 27 -- ICRA stated that the rating factors in AU Small Finance Bank's (AUSFB) established retail asset franchise with a track record of maintaining comfortable asset quality, adequate capitalisation and healthy earnings.

The bank registered a compound annual growth rate of around 30% in its gross loan portfolio (GLP) during March 2020 to March 2025 while deposits increased by 37% during this period.

It has more than two decades of experience in the vehicle finance segment and more than a decade of experience in the micro, small and medium enterprise (MSME) segment; the share of secured retail loans stood at 68% of the GLP as on 31 December 2025.

AUSFB has received in-principle approval from the Reserve Bank of India (RBI) t...