AU Small Finance Bank to invest over Rs 500 cr for IT, digital makeover

AU Small Finance Bank expects to invest over Rs 500-700 crore to scale up its digital banking and information technology over the next three-five years, taking the total tech spending to over Rs 1,000 crore. This would mean its cost-to-income ratio may remain above 50 per cent in the medium term.

Sanjay Agarwal, managing director and chief executive, said the lender was in a growth phase and is spending to achieve digital ambitions. Also, human resources need a lot of support. The cost-to-income ratio has gone up from 52.4 per cent in FY21 to 57.1 per cent in FY22.

While