AU Small Finance Bank raises foreign investment limit to 74%

AU Small Finance Bank Limited announced on December 9, 2025, that it has received approval from the Department of Financial Services, Ministry of Finance, to increase its foreign investment limit. The permissible limit for foreign investment in the bank has been raised from the current 49% to a maximum of 74% of its paid-up capital.

This regulatory approval is subject to specific conditions, including the requirement that no Foreign Direct Investment (FDI) can be undertaken without prior approval from the Department of Financial Services, Ministry of Finance. The increased limit will provide the bank with greater flexibility in attracting foreign investment through permissible modes.

The approval remains valid indefinitely, providing long-term clarity for investors. This move is expected to assist the bank in maintaining sufficient headroom for foreign investment.