AU Small Finance Bank Collaborates with Bajaj Allianz

AU Small Finance Bank Collaborates with Bajaj Allianz
AU Small Finance Bank Collaborates with Bajaj Allianz

by Tanushree Jaiswal Last Updated: Sep 11, 2023 - 05:26 pm 214 Views

AU Small Finance Bank (AU SFB) and Bajaj Allianz Life Insurance have joined forces in a strategic alliance aimed at enhancing financial security for customers of the small finance bank. The partnership was officially announced at an event in Mumbai, where Uttam Tibrewal, Executive Director of AU Small Finance Bank, and Tarun Chugh, MD & CEO of Bajaj Allianz Life Insurance, signed the agreement.

Expanding Financial Horizons

Through this groundbreaking partnership, AU Small Finance Bank plans to harness the power of technology-based solutions by offering its customers access to Bajaj Allianz Life's comprehensive suite of life insurance products. This collaborative effort signifies a significant step forward in meeting the diverse financial needs of their customer base.

A Wealth of Insurance Options

Customers of AU Small Finance Bank will now have access to Bajaj Allianz Life's retail products, which encompass a wide range of offerings, including term insurance, savings plans, retirement solutions, and investment products. This newfound accessibility will empower customers to plan and secure their financial futures with tailored insurance solutions.

Seamless Service and Accessibility

In addition to expanding product offerings, this partnership is committed to delivering exceptional customer service. AU Small Finance Bank and Bajaj Allianz Life Insurance will collaborate closely to ensure a seamless experience for customers. This includes providing customer support through popular channels such as WhatsApp and ChatBot on AU digital platforms.

A Wider Reach

AU Small Finance Bank boasts an extensive distribution network comprising 1,038 touchpoints across 21 States and 3 Union Territories. Through this partnership, Bajaj Allianz Life Insurance's innovative life insurance products will now be accessible to a significantly larger customer base. 

Words from the Leaders

Tarun Chugh, MD & CEO of Bajaj Allianz Life Insurance, expressed his enthusiasm about the partnership, stating, "This partnership will make our insurance products available to a significantly larger customer base across the 1,038 touchpoints of the bank. With top-tier, modern services and a digital-first approach, we are well-positioned to help our customers achieve their financial aspirations.

Uttam Tibrewal, Executive Director of AU Small Finance Bank, added, "As we expand our financial offerings in the bancassurance segment, our goal was to partner with a life insurance company that can complement our products and assist customers in financial planning. Bajaj Allianz Life is a trusted name in life insurance, and by combining our robust distribution network with Bajaj Allianz Life’s diverse product portfolio, we aim to provide a wider range of options to our customers. It will be like  'Banking Bhi, Bima Bhi.'

Empowering Financial Goals

In summary, the strategic alliance between AU Small Finance Bank and Bajaj Allianz Life Insurance is set to revolutionize the landscape of financial security. By combining technological innovation with a wide array of insurance options and seamless service, these two esteemed institutions are poised to empower customers to achieve their life goals with confidence and planning. This partnership signifies a remarkable step forward in the realm of bancassurance, and its impact will undoubtedly resonate across the financial landscape.

AU Small Finance Bank Limited has unveiled its financial results for the first quarter of the fiscal year 2023-24, showcasing remarkable growth and introducing new services to enhance customer experiences. Here's a detailed look at the key highlights of the bank's performance and recent developments:

Q1'FY24 Results Highlights

In a stellar display of financial prowess, AU Small Finance Bank reported a net profit of ₹387 crore for the first quarter of FY23-24. This marks an impressive 44% year-on-year (YoY) growth compared to the same period in the previous fiscal year. The robust growth can be attributed to a substantial surge in net interest income (NII), which soared by 28% YoY, reaching a total of ₹1,246 crore during Q1'FY24.

Introduction of New Services:

AU Small Finance Bank has been dedicated to enhancing its offerings for customers. In this regard, the bank recently launched RuPay Business Credit cards tailored specifically for its Micro, Small, and Medium Enterprise (MSME) customers. This initiative aims to provide additional financial tools to support the growth and expansion of these businesses. Additionally, the bank has successfully launched the Corporate Salary account opening journey on its video banking platform, ensuring seamless and convenient services for corporate clients.

Diversified Lending Portfolio:

The bank's lending portfolio continues to exhibit a healthy diversification strategy. Vehicle Loans accounted for 33%, while Secured Business Loans (SBL), Home Loans, and Commercial Banking Loans contributed 30%, seven percent, and 21%, respectively. This diversified approach ensures the bank's ability to cater to a wide range of customer needs and economic sectors.

Improved Asset Quality:

AU Small Finance Bank has showcased its commitment to maintaining a strong asset quality. The Gross Non-Performing Assets (GNPA) for Q1'FY24 improved significantly, standing at 1.76% compared to 1.96% in Q1'FY23. It is noteworthy that GNPA increased slightly by 10 basis points on a quarter-on-quarter (QoQ) basis from 1.66% as of Q4'FY23, aligning with a normal seasonal trend for the first quarter. Furthermore, the Net Non-Performing Assets (NNPA) remained minimal at 0.55% of Net advances in Q1'FY24, compared to 0.56% in Q1'FY23, reflecting the bank's effective risk management practices.

Credit Card Milestone and Digital Banking Growth:

AU Small Finance Bank's credit card segment reached a significant milestone, with over six lakh live credit cards issued. The monthly spend on these cards reached an impressive ₹1,250 crore in June 2023. Simultaneously, the AU 0101 digital banking app witnessed a surge in users, with the customer base expanding to 21.6 lakh in Q1'FY24. These achievements underscore the bank's commitment to offering innovative and customer-friendly banking solutions.

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About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.


Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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