Indian central bank approves Temasek unit to raise stake in AU Small Finance Bank

AU Small Finance Bank

13/02/2025 04:42

Feb 13 (Reuters) - The Reserve Bank of India has given
its approval to a Temasek unit to raise its stake in AU Small
Finance Bank  AUFI.NS  to up to 7%, the lender said on Thursday.
    Zulia Investments, a unit of Singapore's state-owned
investment firm Temasek, had a 1.37% stake in the lender as of
December-end, exchange data showed. 
        The Indian bank did not disclose any financial details
on the deal.
  
    AU Small Finance said it has received a letter from Zulia
saying that the Reserve Bank of India approved the stake
increase on the condition that the transaction takes place by
February 12, 2026. 
    The deal could make Zulia the biggest foreign portfolio
investor in the lender. 
    Shares of AU Small Finance Bank were flat on Thursday.  

 (Reporting by Hritam Mukherjee and Yagnoseni Das in Bengaluru;
Editing by Sonia Cheema)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))