Share of AU Small Finance Bank Ltd is currently trading at around Rs.735/-Investors are asking for the AU Small Finance Bank Share Price Targets for 2025, 2030, 2035 and 2040. In this article, we will discuss about the business prospects and financial performance of the Company and based on our discussion and analysis will tell you the AU Small Finance Bank Share Price Targets for 2025, 2030, 2035 and 2040.
Discussion & Analysis of Business & Financial performance with future business prospects of AU Small Finance Bank Ltd:
AU Small Finance Bank Ltd (AUBANK), headquartered in Jaipur, has emerged as a dynamic player in India’s financial sector, particularly in serving underserved and rural markets. As of 2025, the bank is undergoing a transformative phase, marked by robust financial performance and a strategic shift that positions it for long-term growth.
Current Business Position
AUBANK has demonstrated consistent growth across key financial metrics. Its revenue surged from ₹4,950 crore in 2021 to ₹16,063 crore in 2025, reflecting a compound annual growth rate (CAGR) of 34.24%. Net profit also rose from ₹1,171 crore to ₹2,106 crore during the same period, with a CAGR of 15.78%. The bank’s net interest income (NII) for FY25 stands at ₹80.1 billion, with projections of ₹112.5 billion by FY27.
The bank operates through four primary segments: Treasury, Retail Banking, Wholesale Banking, and Other Banking Operations. Its retail banking arm has been particularly successful in expanding its footprint through a wide branch network and digital channels. Meanwhile, the wholesale banking segment caters to corporates, public sector units, and medium enterprises, contributing to a diversified revenue stream.
AUBANK’s asset quality remains strong, supported by prudent risk management and a focus on secured lending. Its net interest margin (NIM) is stable at around 5.1%, and return on assets (RoA) and return on equity (RoE) are projected to improve to 1.7% and 18.3% respectively by FY27.
Strategic Milestone: Transition to Universal Bank
A pivotal development in 2025 is the Reserve Bank of India’s in-principle approval for AUBANK’s transition from a Small Finance Bank to a Universal Bank. This marks a significant milestone, as AUBANK becomes the first SFB to formally apply under the revised voluntary transition framework. The move is expected to enhance brand positioning, reduce cost of funds, and improve CASA (current account savings account) mobilization.
This transition also unlocks opportunities to scale operations in larger-ticket retail, SME, and mid-corporate segments. While not an immediate focus, these avenues offer substantial growth potential in the medium term.
Future Business Prospects
Looking ahead, AUBANK is poised for accelerated growth. The universal bank license will enable it to compete more effectively with established players, attract a broader customer base, and diversify its product offerings. The bank’s strong balance sheet, improving liability profile, and digital capabilities provide a solid foundation for expansion.
Key growth drivers include:
• Enhanced access to low-cost deposits through improved brand perception.
• Expansion into higher-value retail and corporate lending.
• Continued investment in technology and digital banking.
• Potential capital raise to support growth initiatives.
• CEO Sanjay Agarwal’s term renewal, reinforcing leadership continuity.
In summary, AU Small Finance Bank stands at a strategic inflection point. With a proven track record, regulatory endorsement, and a clear roadmap for transformation, it is well-positioned to evolve into a formidable universal bank and deliver sustained value to stakeholders.
Share Price Targets:
AU Small Finance Bank Share Price Target 2025
Based on the above discussion and analysis, the share price of AU Small Finance Bank Ltd may touch the level of around Rs.800-825 in 2025
AU Small Finance Bank Share Price Target 2030
Based on the above discussion and analysis, the share price of AU Small Finance Bank Ltd may touch the level of around Rs.1700-1800 in 2030
AU Small Finance Bank Share Price Target 2035
Based on the above discussion and analysis, the share price of AU Small Finance Bank Ltd may touch the level of around Rs.3600-3750 in 2035
AU Small Finance Bank Share Price Target 2040
Based on the above discussion and analysis, the share price of AU Small Finance Bank Ltd may touch the level of around Rs.7500-8000 in 2040
Disclaimer: Investment in Capital Market/Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general Guidance & Educational purpose only. We keep revising our share price targets based on the latest information available with us. Please keep visiting our website regularly to keep yourself updated. MoneyInsight does not offer investment advice and does not encourage any action based on its content.
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