MUMBAI: AU Small Finance Bank’s promoters will transfer their shares to a non-operative holding company (NOHC) as part of RBI’s conditions for the lender’s transition into a full-fledged or universal bank. The lender has also decided to shift its corporate headquarters from Jaipur to Mumbai, after receiving in-principle approval from the RBI for the upgrade.
AU Small Finance Bank’s founder, MD & CEO Sanjay Agarwal, said the non-operative holding company structure would work in his favour, as it would allow him to expand into other areas of financial services. “That structure is far better for me because it allows me to experiment with other financial services too”.
He added that even if there were tax issues in transferring the holding, they should be manageable.
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