<P> Due to its history as a vehicle finance company, as of March 2018 almost all the loans made by AU Small Finance Bank were secured, unlike most small finance banks that have unsecured loans due to their background in microfinance . This provides lower yields (lower interest rates) than unsecured loans, so the bank has been particularly active in growing its deposits, as bank deposits have lower cost than other sources of funds . It has also sought to diversify into investment banking and additional loan products . </P> <P> As of July 2017, AU Small Finance Bank had 301 bank branches, with plans to expand to over 430 branches by the end of 2018 . In addition, the bank had 113 asset centres as of 30 September 2017 . </P> <P> The bank has operations in 11 states and one union territory, but its business is concentrated in Rajasthan, Gujarat, Maharashtra and Madhya Pradesh . It is one of the largest banks by number of locations in its home state of Rajasthan . </P>

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