AU Small Finance Bank receives approval to raise foreign investment limit to 74%

AU Small Finance Bank Ltd on Tuesday (December 9) said it has received approval from the Department of Financial Services, Ministry of Finance, Government of India, today to increase the foreign investment limit in the bank from 49% to the maximum permissible limit of 74% of its paid-up capital.

The approval is subject to conditions stipulated in the approval dated December 9, 2025, including the requirement that no Foreign Direct Investment, as defined under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, shall be undertaken without prior approval from the Department of Financial Services, Ministry of Finance.

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The bank said the increased foreign investment limit from 49% to 74% will assist in maintaining sufficient headroom for foreign investment through permissible modes of investment in compliance with the consolidated FDI Policy. The approval remains valid without any limitation on the period of its validity.

The FDI limit in private sector banks is 74 per cent. In case of private sector banks, up to 49% of FDI is through the automatic route and beyond 49% and up to 74%, the government route is applicable.

Shares of AU Small Finance Bank Ltd ended at ₹971.00, down by ₹18.45, or 1.94%, on the BSE.

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