AU Small Finance Bank receives DFS’ approval for increase in foreign investment limit from 49% to 74%
1 min readAU Small Finance Bank (SFB) secured approval from the Department of Financial Services (DFS) under the Ministry of Finance to raise its foreign investment limit from the current 49% to a maximum of 74% of its paid-up capital.
This approval follows the Reserve Bank of India’s (RBI) in-principle nod four months earlier for the bank’s transition to a universal banking model. The authorization carries indefinite validity, as confirmed by the bank in a regulatory disclosure.
The increased foreign investment ceiling provides necessary flexibility for future overseas investments through approved channels while ensuring compliance with India’s consolidated FDI policy framework.
As of September-end 2025, foreign portfolio investors held 34.49% ownership in the bank, while promoters and promoter groups maintained a 22.82% stake.
During the shift to universal banking status, promoter holdings will be restructured through a Non-Operating Financial Holding Company (NOFHC) framework, as mandated by the 18-month transition timeline.
Published on December 9, 2025
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