Money & Banking

AU Small Fin Bank raises ₹525 cr from Temasek arm Camas Investments

Our BureauMumbai, December 13 Mumbai | Updated on December 13, 2019

Sanjay Agarwal, MD & CEO, AU Small Finance Bank   -  PAUL NORONHA

Singaporean sovereign wealth fund Temasek through its wholly-owned subsidiary Camas Investments has invested ₹525 crore ($74 million) in AU Small Finance Bank for conversion of warrants. With this, its investment in the lender has increased to 4.8 per cent.

“The completion of Temasek’s investment is a reflection of the uniqueness of our secured retail and steadily growing granular deposit franchise, stable portfolio quality, margins and growth headroom,” said Sanjay Agarwal, Managing Director and CEO, AU Small Finance Bank.

Temasek has invested the money through the conversion of its 1.01 crore warrants.

“This is a major development for the bank as post this transaction bank’s net worth would increase to more than ₹4,000 crore, a cut-off threshold level for government business, at few places,” the bank said in a statement on Friday. It will also boost its capital adequacy and core tier-1 capital which was at 19.7 per cent and 16.7 per cent, respectively, as on September 30, 2019.

The increase in net worth and capital adequacy is expected to further improve as and when it divests its investment in a leading housing finance company, which is currently valued at about ₹950 crore, the bank said.

The Jaipur-based lender, which became a small finance bank in April 2017, has operations across over 600 touch points across 11 states.

The bank’s scrip closed 0.53 per cent lower at ₹ 795.10 apiece on BSE.

Published on December 13, 2019

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