RBI approves Temasek unit to raise stake in AU Small Finance Bank

AU Small Finance Bank on February 13 said it received Reserve Bank of India approval for Zulia Investments, a unit of Singapore's state-owned investment firm Temasek, to acquire up to 7% of its paid-up share capital or voting rights within one year.

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.

"AU SFB has received a copy of letter of RBI dated February 12, 2025 addressed to Zulia Investments Pte. Ltd., an indirect wholly owned subsidiary of Temasek Holdings (Private) Limited that it has accorded its approval to the Zulia Investments Pte. Ltd. (along with its persons acting in concert and associate enterprises) to acquire ‘aggregate holding’ of up to 7% of the paid-up share capital or voting rights in AU SFB within one year from the date of RBI approval letter, failing which RBI approval shall stand cancelled," said the lender.

At 10:10 am on February 13, AU SFB's shares were trading 0.22% higher at Rs 555.5 apiece.