Small Finance Bank
AU SFB gets govt approval to increase foreign investment limit to 74%
AU Small Finance Bank has received approval from Department of Financial Services to increase foreign investment limit from 49% to 74%.
AU Small Finance Bank has received approval from Department of Financial Services to increase foreign investment limit from 49% to 74%.
AU Small Finance Bank (SFB) has received approval from the ministry of finance to increase the foreign investment limit in the lender from 49% to 74% of its paid up capital.
The bank will, however, need to take a prior approval from the ministry for increasing the foreign direct investment (FDI).
The increased permissible limit would assist the bank in maintaining sufficient headroom for foreign investment through permissible mode of investments in compliance of the consolidated FDI policy, the lender said in a regulatory filing.
As on September-end, foreign portfolio investors held 34.49% stake in the bank. The promoter & promoter group held 22.82% stake.
The nod from the Department of Financial Services (DFS), Ministry of Finance has come four months after AU SFB received in-principal approval from the Reserve Bank of India (RBI) for transitioning to a universal bank.
