(Reuters) – The Reserve Bank of India has given its approval to a Temasek unit to raise its stake in AU Small Finance Bank 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)
