Sanjay Agarwal, the founder and CEO of AU Small Finance Bank, detailed his journey in building India's largest small-finance bank this week.

Agarwal's trajectory from a non-banking financial company (NBFC) to a major banking institution serves as a blueprint for domestic financial scaling. His insights provide a case study on how ambition and structured growth can disrupt the traditional banking landscape in India.

Speaking at the NDTV Profit Business Leadership Awards 2026 [1], Agarwal said the evolution of his firm. He described the process of transforming a modest NBFC into a dominant force within the small-finance bank sector. The discussion focused on the operational shifts required to manage such an expansion while maintaining institutional stability.

Beyond the growth of his own company, Agarwal addressed the broader necessity for India to back its own financial institutions. He said that domestic support is critical for the long-term health of the economy. This perspective emphasizes a move toward financial self-reliance, a strategy designed to reduce dependency on external capital and foreign banking models.

Succession planning also featured prominently in his remarks. Agarwal said that for an institution to survive its founder, it must implement rigorous planning and leadership development. This ensures that the bank's vision remains intact even as the executive guard changes.

Throughout the event, Agarwal linked his personal ambition to the national interest. He said that the success of AU Small Finance Bank is indicative of the potential for other Indian entrepreneurs to scale financial services. By prioritizing domestic institutional strength, he said the country can better serve its underserved populations.

“India should support its own banks.”

The transition of AU Small Finance Bank from an NBFC to a leading bank reflects a broader trend of financial formalization in India. By emphasizing domestic backing and succession planning, Agarwal is highlighting the shift from founder-led growth to institutionalized sustainability, which is essential for the stability of India's emerging financial sector.