Indian equities picked up pace after a flat start on Wednesday, even as investors remained cautious ahead of the US Federal Reserve’s monetary policy announcement later in the day. The BSE Sensex rose 224 points, or 0.26%, to trade at 84,891, while the Nifty 50 advanced 53 points, or 0.21%, to 25,893.
Meanwhile, AU Small Finance Bank Limited announced that it has received regulatory approval to increase the maximum permissible foreign investment limit in the Bank to 74% of its paid-up capital. The Bank is a Scheduled Commercial Bank and is listed on the National Stock Exchange and BSE Limited.
The approval has been granted by the Department of Financial Services (DFS), Ministry of Finance, Government of India, and was received on December 9, 2025. With this clearance, the foreign investment cap in AU Small Finance Bank has been enhanced from the existing 49% to the maximum permissible limit of 74% of paid-up capital.
As of September 2025 shareholding pattern, Foreign Institutional Investors (FIIs) held a 34.50% stake in the bank. Within the FII category, Camas Investments Pte. Ltd. had the largest holding at 3.61%, while Smallcap World Fund, Inc. and New World Fund Inc. each held stakes in the range of 2% to 3%. The FIIs holding have seen a total decrease of 3.18% from the June quarter to the September quarter.
The approval is subject to specific conditions laid down by the Department of Financial Services. A key condition states that no Foreign Direct Investment (FDI), as defined under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, shall be undertaken without obtaining prior approval from the Department of Financial Services, Ministry of Finance.
The increase in the foreign investment limit from 49% to 74% is a significant development for AU Small Finance Bank. It provides the Bank with adequate headroom to attract foreign investment through permissible routes while ensuring compliance with the consolidated FDI Policy and the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, as amended from time to time.
The approval granted by the Department of Financial Services is valid without any limitation on the period of its validity, offering long-term flexibility to the Bank in managing foreign investment inflows.
On Wednesday, AU Small Finance Bank share price jumped over 3% to its day high as it received regulatory approval to increase the maximum permissible foreign investment limit in the Bank to 74% of its paid-up capital.
As of 10:35 am, the share price of the bank was trading at ₹999.15 per share, up by 2.79%. The stock price has also hit a fresh new all-time high. On a year-to-date basis, the stock price has jumped over 80%. Since its listing in July 2017, the stock price has given absolute returns of 277%
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