India’s central bank has granted approval to a unit of Singapore’s Temasek to increase its holding in AU Small Finance Bank to as much as 7%, according to a Reuters report.
The financial terms of the stake expansion were not disclosed.
Zulia Investments, a subsidiary of the state-owned investment firm, held a 1.37% stake in the bank as of the end of December, according to exchange filings.
AU Small Finance Bank said it received a communication from Zulia confirming that the Reserve Bank of India had approved the transaction, provided it is completed by 12 February 2026.
If executed, the deal would position Zulia as the bank’s largest foreign portfolio investor.
Featured image credit: Edited from Freepik
