The Banker’s Blueprint: How Sanjay Aggarwal Created A 15,000 Cr Financial Giant
Born in the picturesque pink city of Jaipur, Sanjay Aggarwal’s journey to building a ₹15,000 crore banking powerhouse wasn’t paved with early accolades.
In fact, it was filled with obstacles that might have deterred a lesser spirit. From academic setbacks to early business challenges, Sanjay’s story is one of resilience, determination, and an unrelenting drive to create something meaningful.
Sanjay’s early academic years were a struggle. Failing in Class 8th and then twice falling short of passing the Chartered Accountancy (CA) exam left him questioning his path. Yet, he refused to let these setbacks define him. On his third attempt, he not only cleared CA but made it to the merit list—an achievement that would have tempted many to settle for a secure career. But Sanjay Aggarwal had other plans. Rather than taking the traditional route, he set out on an entrepreneurial journey that would eventually redefine banking for countless Indians.
In 1996, with funds pooled from five supporters, Sanjay founded AU Financiers, a non-banking financial company (NBFC). The initial idea was straightforward: provide financing for trucks and jeeps. However, early ventures into trucking and a granite factory ended in failure, a humbling reminder that entrepreneurial success is never guaranteed. As if the challenges weren’t enough, the 1997 Chain Roop Bhansali scam created a challenging environment for NBFCs. Raising funds became nearly impossible, and Sanjay Aggarwal faced mounting pressure from multiple fronts.
Then, in 2000, a family crisis became the catalyst for change. Sanjay’s sister, Aruna, was battling cancer, and her treatment took him to London. This period of reflection helped him realize that juggling multiple ventures was diluting his focus. Upon his return to Jaipur, armed with renewed clarity, Sanjay Aggarwal poured his energy into building AU Financiers into a dedicated, robust financing company.
His turning point came in 2003 when HDFC partnered with AU. Sanjay Aggarwal began offering vehicle loans to rural customers, delivering faster and more accessible financing solutions than ever before. With this new focus, AU became a trusted name for customers in underserved areas, offering loans at competitive interest rates and ensuring a low cost of capital.
The next few years saw a steady stream of achievements. In 2008, Motilal Oswal Private Equity invested ₹20 crore into AU, signaling growing investor confidence. By June 2011, AU had disbursed loans worth ₹1,508 crore to 125,000 customers through 150 branches across seven states. The momentum continued. By 2013, AU had secured ₹250 crore from Warburg Pincus, Chrys Capital, and IFC, propelling the company into a new league.
But the real game-changer arrived in 2015 when the Reserve Bank of India (RBI) introduced the Small Finance Bank (SFB) category. The goal was to foster financial inclusion, and Sanjay Aggarwal saw the opportunity as a perfect fit for AU’s mission. Out of 72 applicants, AU was the only NBFC to secure an SFB license. On April 19, 2017, AU Small Finance Bank was born, marking a major milestone in Sanjay’s vision of creating a bank that served India’s grassroots.
That same year, AU Small Finance Bank’s initial public offering (IPO) was met with overwhelming enthusiasm, oversubscribed 53 times. By November, it had become a scheduled commercial bank, a significant achievement that solidified its credibility and reach. By March 2018, AU had grown to include 306 branches and 292 ATMs across 11 states, managing assets worth ₹16,038 crore and earning a spot on the Fortune India 500 list.
AU’s growth wasn’t just about expanding its physical presence. Sanjay Aggarwal embraced digital transformation, launching a mobile banking platform, AU 0101, that redefined convenience for customers. With over 370,000 digital customers, 75,000 UPI QR rollouts, and 2,200 accounts opened through video KYC, AU demonstrated how a traditional banking model could be seamlessly integrated with cutting-edge technology.
Today, AU Small Finance Bank has a staggering presence, with 2,383 branches and ATMs across 21 states. Serving 1.1 crore customers, it manages assets worth ₹126,000 crore. What makes this story even more inspiring is that Sanjay Aggarwal accomplished all of this without any prior banking experience. He has shown that resilience, vision, and a relentless drive to serve the underserved can create extraordinary results.
Sanjay Aggarwal’s journey from a struggling student to the founder of one of India’s largest small finance banks is a testament to the power of perseverance. His story is not just about building a ₹15,000 crore company; it’s about proving that no matter where you start, a clear vision and determination can take you to extraordinary heights. His success is a reminder to all aspiring entrepreneurs that failure isn’t the end—it’s often the first step toward greatness.
