AU SFB gets nod to raise foreign investment cap to 74%

The bank on August 7 received an in-principle approval from the Reserve Bank of India for transition from a small finance bank to a universal bank.

Written by FE Bureau

December 9, 2025 22:14 IST

As on September 30, the foreign investment in the bank stood at 35%.

The Department of Financial Services on Tuesday approved AU Small Finance Bank’s proposal to enhance its foreign investment limit from 49% to 74%.

Impact of the increased limit on bank’s operations

The increased limit will help the bank maintain a sufficient headroom for foreign investment through permissible modes, in compliance with the consolidated FDI Policy and the Foreign Exchange Management (non-debt instruments) Rules, 2019, as amended from time to time.

RBI approval for transition into a universal bank

The bank on August 7 received an in-principle approval from the Reserve Bank of India for transition from a small finance bank to a universal bank. As on September 30, the foreign investment in the bank stood at 35%.

This article was first uploaded on December nine, twenty twenty-five, at fourteen minutes past ten in the night.