Andhra Pradesh Empanels Au Small Finance Bank for Government Accounts

The Andhra Pradesh government has added Au Small Finance Bank Ltd to its list of notified banks for managing state funds and accounts. This decision follows positive evaluations by a specialized screening committee and reflects a continued financial growth in the state, evidenced by a 10.7% rise in GSDP.

The Andhra Pradesh government has officially designated Au Small Finance Bank Ltd as one of the notified banks authorized to manage the accounts and funds of various state departments and offices. The decision was formalized on Wednesday, expanding the existing list of banks entrusted with this responsibility.

According to financial projections for the fiscal year 2026, Andhra Pradesh's Gross State Domestic Product (GSDP) has seen a significant rise to Rs 17.6 lakh crore from Rs 15.9 lakh crore the previous year, marking a nominal growth of 10.7 percent. This growth backdrop accompanies the inclusion of Au Small Finance Bank after a screening committee endorsed their request.

D Ronald Rose, Secretary of the Finance (PMU – IF) Department, announced that the decision was made after thorough evaluation processes. The state government amended previous orders, originally set in 2009, to place Au Small Finance Bank at serial number 52 among the notified institutions, allowing it to manage government funds effectively.

(With inputs from agencies.)