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AU Small Finance Bank has acquired an 11-storey office building in Bandra (East), Mumbai, for INR 371 crore from Earthworth Constructions, with an additional INR 22.26 crore paid in stamp duty. The 74,577 sq. ft. property, featuring two basements and 98 parking spaces, will serve as the bank's new corporate headquarters. This is the largest outright office space purchase by a financial institution in 2025. The acquisition follows AU's merger with Fincare Small Finance Bank, expanding its network to over 2,350 touchpoints across 25 states, serving more than 10 million customers. The bank has also applied to transition into a universal bank. The move reflects AU's strategy to consolidate operations and strengthen its Mumbai presence, signalling a trend among financial institutions towards owning prime commercial real estate. The property's location along the Western Express Highway offers key connectivity advantages.
AU Small Finance Bank, headquartered in Jaipur, has made a significant foray into Mumbai's commercial real estate market by acquiring an 11-storey office building in Bandra (East) for INR 371 crore from Earthworth Constructions. The deal, concluded earlier this week, also involved a stamp duty payment of INR 22.26 crore, marking it as the largest outright office space purchase by a financial institution in 2025. Advertisement
The property, spanning 74,577 sq ft, includes two basement levels and 98 dedicated car parking spaces. Previously, it was occupied by agrochemical company UPL Ltd. under a long-term lease which ended last year. AU Small Finance Bank plans to establish this tower as its new corporate headquarters, taking advantage of its prime location along the Western Express Highway.
This acquisition fits into AU Small Finance Bank's broader strategic roadmap, which gained momentum after its merger with Fincare Small Finance Bank, effective from earlier this year. Post-merger, the bank boasts over 2,350 service touchpoints spread across 25 states and union territories, serving more than 10 million customers. Furthermore, the bank has submitted an application to the Reserve Bank of India to transition into a universal bank, aiming to expand its service offerings and operational capabilities.
The Bandra acquisition not only enhances AU Small Finance Bank's physical presence in Mumbai but also signals its ambition to strengthen its foothold in India's competitive financial and real estate landscape. The bank's move to own a dedicated headquarters demonstrates a shift towards consolidating its operational infrastructure, moving away from leased office spaces.
Coupled with its recent merger and pursuit of a universal banking licence, the bank is positioning itself to leverage enhanced scale and infrastructure for improved service delivery and operational efficiency. This move could set a precedent for other financial institutions looking to own rather than lease prime office spaces, signalling a broader trend in the sector.
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