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AU Small Finance Bank has received government approval to increase its foreign investment limit to 74% of paid-up capital, effective December 9, 2025. This will enable greater foreign participation, support growth, and ensure compliance with regulatory norms. The approval is valid without time constraints and is subject to standard FDI requirements.
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AU Small Finance Bank has received official approval from the Department of Financial Services, Ministry of Finance, Government of India, to raise its foreign investment limit from the current 49% to the maximum permissible cap of 74% of its paid-up capital, effective December 9, 2025. This move is expected to enhance the bank’s ability to attract global capital and support its growth trajectory.
Notable Updates:
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The Department of Financial Services has formally approved the increase in the foreign investment limit for AU Small Finance Bank.
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The new limit is set at 74% of the bank’s paid-up capital, up from the existing 49%.
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The approval is subject to compliance with the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, and requires prior approval for any FDI activity.
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The change will help the bank maintain adequate headroom for foreign investment, aligning with the consolidated FDI Policy and regulatory amendments.
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The approval remains valid indefinitely, without any time restrictions.
Important Points:
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No withdrawal, cancellation, or suspension of the approval has been reported.
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The move is expected to strengthen the bank’s capital base and support future expansion plans.
Source: BSE Corporate Announcement, Department of Financial Services, Ministry of Finance, Government of India
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