AU Small Finance Bank announced today that the Reserve Bank of India (RBI) has approved Zulia Investments Pte. Ltd., an indirect wholly owned subsidiary of Singapore’s Temasek Holdings, to acquire up to 7 per cent stake in the bank.
The shares of AU Small Finance Bank were trading at ₹554.65 up by ₹ 0.25 or 0.05 per cent on the NSE today at 11.40 am.
The approval, granted through an RBI letter dated February 12, 2025, allows Zulia Investments, along with its persons acting in concert and associate enterprises, to purchase the shares within one year. If the acquisition is not completed within this timeframe, the approval will be cancelled.
The stake purchase must comply with several regulatory frameworks, including the Banking Regulation Act, 1949, RBI’s Master Direction and Guidelines on Acquisition and Holding of Shares in Banking Companies, Foreign Exchange Management Act, 1999, and Securities and Exchange Board of India regulations.
This potential investment by Temasek’s subsidiary represents a significant move by the Singapore state investment firm into India’s banking sector.