AU Small Finance Bank (SFB) on Tuesday received approval from the Department of Financial Services (DFS), Ministry of Finance for increase in the foreign investment limit in the Bank from 49 per cent at present to maximum permissible limit of 74 per cent of paid up capital of the Bank.
The DFS’ approval comes four months after the Bank received in-principal approval from the Reserve Bank of India (RBI) for transitioning to a universal bank. This approval is valid without any limitation on the period of its validity, AUSFB said in a regulatory filing.
The Bank, in a regulatory filing, said, increased foreign investment limit from 49 per cent at present to 74 per cent will assist it in maintaining sufficient headroom for foreign investment in the Bank through permissible mode of investments in compliance of the consolidated FDI Policy.
As at September-end 2025, foreign portfolio investors held 34.49 per cent stake in the Bank. Promoter & promoter group held 22.82 per cent stake.
In the run-up to the conversion to a universal bank, promoter holding will be routed via NOFHC (non-operating financial holding company) structure (18 months time-period provided).
Published on December 9, 2025
