AU Small Finance Bank shares rally 4% to hit 52-week high: Check the revised foreign investment limit for the bank

The Ministry of Finance has increased the foreign investment limit in the bank to the maximum permissible limit of 74% of the paid-up capital of the lender from the current 49%.

“We wish to inform you that the Bank has received approval from the Department of Financial Services, Ministry of Finance today, i.e., on December 9, 2025, for an increase in the foreign investment limit in the Bank from 49% at present to the maximum permissible limit of 74% of the paid-up capital of the Bank,” AU Small Finance Bank said in a regulatory filing.

Raising the foreign investment limit will help the bank maintain enough room for foreign investments through permitted channels, in line with the consolidated FDI policy, the lender said in a regulatory filing.

Earlier in August, the Reserve Bank of India (RBI) had granted in-principle approval to the lender to transition into a universal bank from a small finance bank.

The approval came after AU Small Finance Bank fulfilled RBI's minimum paid-up capital/net worth requirement as applicable to become a universal bank. The bank showcased a satisfactory track record of performance as an SFB for a minimum period of five years and also fulfilled RBI’s due diligence exercise.

With the RBI notification, AU became the first Small Finance Bank in India to receive this in-principle approval to become a universal bank.

AU Small Finance Bank share price

At close, shares of AU Small Finance Bank settled at ₹992.90 apiece on NSE, rising 2.14%.

Over a month’s time, shares of the bank have jumped over 9%, while in the last six months, the stock has gained 31%. From the beginning of 2025, AU Small Finance Bank shares have soared 76%.

The bank has a market capitalisation of ₹74,135.88 crore.

AU Small Finance Bank’s Q2 earnings

The lender had reported a 2% decline in its net profit at ₹561 crore for the second quarter ended September 30, 2025. The bank had a net profit of ₹571 crore in the July-September quarter of FY25.

Its net total income rose 9% to ₹2,857 crore, while operating expenses were up 11% year-on-year (YoY) to ₹1,647 crore during the quarter. Provisioning during the quarter also increased 29% to ₹481 crore.

By the end of Q2 FY26, AU Small Finance Bank’s total deposits stood at over ₹1.32 lakh crore with 21% growth YoY.