Industry Odisha Bureau, Sept 16: AU Small Finance Bank’s vehicle loan book crosses Rs 50,000 crore, its largest lending vertical. AU Small Finance Bank’s vehicle loan portfolio has crossed Rs 50,000 crore in assets under management. The milestone comes as the bank prepares to transition into a universal bank.
A Three Decade Growth Story
AU Small Finance Bank hit this landmark in August 2026, backed by strong compounded growth. The vehicle loan business posted a three year CAGR of 26 per cent. Its five year CAGR stands even higher, at 29 per cent, the bank said in a statement. This segment remains AU’s largest lending franchise by a wide margin.
Vehicle loans now account for nearly a third of AU Small Finance Bank’s total loan portfolio. The business serves more than 13.7 lakh customers nationwide.
Breaking Down The Rs 50,000-Crore Book
New vehicle finance contributes Rs 30,752 crore to the overall portfolio as of August 2026. Pre-owned vehicle finance adds another Rs 17,966 crore to the mix. Two wheeler finance rounds off the portfolio at Rs 1,767 crore, according to bank data. The business started in 1996 in Rajasthan, targeting transport operators and entrepreneurs. It has since scaled across urban, semi urban and rural markets nationwide. AU Small Finance Bank now runs over 3,000 service touchpoints across India. Its vehicle finance arm is serviceable across nearly 2,000 locations countrywide. The bank has layered analytics, automation and AI tools into its lending process.
Milestone Rooted In AU’s Founding Mission
AU Small Finance Bank Founder, MD and CEO Sanjay Agarwal called the milestone deeply tied to the bank’s roots. He said the vehicle finance business began with backing self-employed entrepreneurs decades ago.
Agarwal added that the vehicle loan franchise will stay central to growth as AU transitions into a universal bank.
