New Delhi, Aug. 7 -- AU Small Finance Bank on Thursday won the Reserve Bank of India's 'in-principle' approval to upgrade to a universal bank, becoming the first lender to secure a full-fledged banking licence in 10 years.

principle approval gives the bank time to meet several conditions before it is granted a final licence. The approval crowns a three-decade journey for AU, which started as a vehicle financier in 1996, and turned a small finance bank (SFB) in 2017.

The bank management expressed delight at the approval, calling it a moment that will go down in India's banking history. "This milestone is a reaffirmation of our purpose, perseverance, and passion," Sanjay Agarwal, founder, managing director and chief executive officer, sai...