Mumbai, January 06, 2026: AU Small Finance Bank (AU SFB) has released its Sustainability Report for FY 2024–25, outlining the bank’s performance across sustainable finance, operations, community initiatives, and governance. This is the bank’s fourth sustainability report and comes as AU SFB prepares for its proposed transition to a Universal Bank, following in-principle approval from the Reserve Bank of India.
Prepared in alignment with Global Reporting Initiative (GRI) Standards and SEBI’s Business Responsibility and Sustainability Reporting (BRSR) framework, the report has been independently assured by Intertek India. The 2024–25 edition reports on over 90 GRI indicators, with external assurance on 52 indicators, marking an increase in transparency and disclosure.
According to the report, AU SFB mobilised ₹1,178.52 crore through its Planet First – AU Green Fixed Deposits, with funds deployed entirely towards climate-positive assets. These included renewable energy projects, electric mobility, and green building initiatives. The bank also reported maintaining strong financial inclusion performance, with 32 per cent of its banking touchpoints located in unbanked rural centres, exceeding regulatory requirements.
Operational disclosures include reporting of Scope 1, Scope 2 and Scope 3 emissions, alongside workforce indicators covering employee engagement, training hours and wellbeing. The bank reported an Employee Happiness Index of 86 per cent and over 2 million training hours delivered during the year.
On the social front, AU SFB invested ₹43 crore in CSR initiatives, reaching over 2.72 lakh individuals through programmes focused on youth skill development, women entrepreneurship and grassroots sports. These initiatives were implemented through flagship programmes including AU Ignite, AU Udyogini and AU Bano Champion.
The report also highlights governance and risk management developments. AU SFB follows a three-tier ESG governance structure led by a Board-level Sustainability Committee. During the year, the bank received an AA ESG rating from MSCI and partnered with the International Finance Corporation (IFC) for Climate Risk Advisory to integrate climate-related risks into its credit and risk frameworks.
Commenting on the release, H R Khan, Chairman, AU Small Finance Bank, said, “For me, sustainability is a personal conviction and a principle embedded in AU SFB’s DNA by design. Development has only one path forward: it must be sustainable. As we release our fourth Sustainability Report and our first post-merger, we reaffirm our commitment to a future where financial empowerment thrives alongside environmental stewardship and social equity.”
Sanjay Agarwal, Founder, Managing Director and CEO, AU Small Finance Bank, added, “Our journey from a small finance bank to a future Universal Bank is built on a simple yet powerful belief: growth and sustainability must go hand in hand. As we scale new heights, our responsibility to people, planet, and progress only deepens.”
The Sustainability Report 2024–25 is available on the bank’s website and outlines AU SFB’s approach to integrating ESG considerations into its long-term growth strategy.
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