LIC-AU SFB Partnership Aims to Deepen Life Insurance Reach in Underserved Regions

Mumbai, June 30, 2025 — In a major bancassurance partnership announcement, AU Small Finance Bank Limited (NSE: AUBANK, BSE: 540611) is set to collaborate with Life Insurance Corporation of India (LIC). The objective of this partnership is to reduce the insurance coverage gap in India and increase the reach of the latest insurance products to underserved markets. This can lead to broader revenue growth for AU, coupled with increased investor confidence.

The share of AU Small Finance Bank rose by 1.34% and closed at ₹ 819.85. LIC’s stock also increased by 1.59% and closed at ₹972.95 on Monday.

Strategic Tie-up Highlights

Under the partnership, AU Small Finance Bank (AU SFB) will distribute LIC’s full suite of life insurance offerings, including:

These solutions will be offered through AU SFB’s extensive network of 2,456+ banking touchpoints across 21 states and 4 union territories, bringing LIC’s trusted products closer to customers in rural and semi-urban areas.

Management Commentary

Uttam Tibrewal, Executive Director and Deputy CEO of AU SFB, stated:

“This strategic partnership brings together two institutions committed to inclusive financial services. By leveraging our distribution strength and LIC’s trusted insurance products, we aim to deliver protection and retirement solutions to customers across Bharat and enhance their overall banking experience.”

Strategic Context

This tie-up supports the Government of India’s Insurance for All by 2047 vision, aimed at significantly increasing insurance penetration across socio-economic segments.

For AU SFB, this strengthens its positioning as a comprehensive financial services provider offering banking, insurance, and long-term financial planning under a single umbrella.

For LIC, the move opens a wider distribution network through a credible, digitally enabled, and customer-focused banking partner, enhancing access and efficiency in policy servicing.

About AU Small Finance Bank

Founded in 1996 by Mr. Sanjay Agarwal, AU Small Finance Bank is India’s largest SFB and a Scheduled Commercial Bank with a balance sheet size of ₹1.57 lakh crore as of March 31, 2025. The bank serves over 1.13 crore customers, employing 50,900+ people, and maintains a ‘AA/Stable’ credit rating from top agencies.

It offers a broad suite of financial services, including retail deposits, credit, insurance, investments, and digital banking through innovations like 24/7 video banking and the AU 0101 app.

Regulatory Compliance

This disclosure is made per Regulation 30 and is hosted on the bank’s website, as per Regulation 46 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

REF: https://nsearchives.nseindia.com/corporate/SUMIT1_30062025143124_LIC_partnership_Disclosure.pdf

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