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RBI Grants Approval for Zulia Investments to Raise Stake in AU Small Finance Bank.

Banking & Finance | Dated: 17 Feb 2025

In February 2025, the Reserve Bank of India (RBI) approved Zulia Investments Pte. Ltd., a subsidiary of Singapore's Temasek Holdings (Private) Limited, to raise its stake in AU Small Finance Bank (SFB), based in Jaipur, Rajasthan, to 7%.

🎯 Key Highlights:

  • - On February 12, 2025, AU SFB received an official RBI letter allowing Zulia and its associated entities to acquire up to 7% of the bank's paid-up capital or voting rights within one year. If the acquisition is not completed by February 12, 2026, the approval will lapse.
  • - Currently, Zulia holds a 1.37% stake in AU SFB, while foreign institutional and portfolio investors own 39.35%.
  • - If Zulia increases its stake, it may become the largest foreign investor in the bank.

💡 Other Important Facts:

  • AU SFB, established in April 2017, focuses on providing credit to retail customers and MSMEs (Micro, Small, and Medium Enterprises) and offers deposit and branch banking services.

📚 Test Your Knowledge:

Which bank is the focus of Zulia Investments' stake acquisition, which was approved recently by RBI?

Correct Answer: AU Small Finance Bank

🚀 Quick Recap: