AU Small Finance Bank has received approval to increase the foreign investment limit from 49% to a maximum of 74% of paid-up capital. The approval, granted on December 9, 2025, by the Department of Financial Services, Ministry of Finance, will allow the bank to maintain sufficient headroom for foreign investment. No additional Foreign Direct Investment can be undertaken without prior approval.
Foreign Investment Approval
AU Small Finance Bank announced that it has received approval from the Department of Financial Services, Ministry of Finance, to increase the foreign investment limit. The approval was granted on December 9, 2025.
Increased Investment Limit
The foreign investment limit in AU Small Finance Bank has been increased from 49% to a maximum permissible limit of 74% of the Bank’s paid-up capital. This adjustment will enable the bank to accommodate more foreign investment.
Conditions and Compliance
The approval is subject to specific conditions. No Foreign Direct Investment (FDI) can be undertaken without obtaining prior approval from the Department of Financial Services, Ministry of Finance, as defined under Foreign Exchange Management (Non-debt Instruments) Rules, 2019.
Impact and Relevance
Increasing the foreign investment limit will assist the Bank in maintaining sufficient headroom for foreign investment through permissible modes of investment, complying with consolidated FDI Policy read with Foreign Exchange Management (Non-debt Instruments) Rules, 2019, as amended periodically.
Source: BSE
