AU Small Finance Bank’s vehicle loan AUM crossed Rs 50,000 crore, growing at a 26% 3-year CAGR and serving 13.7 lakh customers.

This makes vehicle loans the bank’s single largest lending business, making up close to one third of its entire loan book. The business now serves more than 13.7 lakh customers spread across the country.

Growth here has been strong and steady. Over the last three years, the vehicle loan business has grown at a compound annual rate of 26%, and over five years, that number rises to 29%.

Few lending segments at the bank have shown this kind of consistent, long term momentum.

Breaking down the numbers, new vehicle finance accounts for the biggest share at Rs 30,752 crore. Pre-owned vehicle finance comes in at Rs 17,966 crore, while two-wheeler finance adds another Rs 1,767 crore to the total.

The roots of this business go back a long way. It started in 1996 in Rajasthan, built around lending to self-employed entrepreneurs and transport operators.

Since then, it has spread across urban, semi-urban and rural areas, backed by more than 3,000 service touchpoints and a network that reaches close to 2,000 locations across India.

The bank has also been adding technology into the mix, using analytics, automation and AI tools to run its lending operations more efficiently and serve customers faster.

Sanjay Agarwal, Founder, MD and CEO of AU Small Finance Bank, called this a meaningful moment for the company, since the vehicle finance business was the foundation the bank was built on nearly three decades ago.

He added that this franchise will continue to be a key growth driver as the bank works toward becoming a universal bank, a transition for which it has already received in-principle approval from the RBI.

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