Kolkata: The ministry of Finance on Tuesday increased the foreign investment limit in AU Small Finance Bank to the maximum permission limit of 74% of the paid up capital from 49% at present.
The ministry however said that the bank would need to take a prior approval from it for increasing the foreign direct investment.
The increased limit would assist the bank in maintaining sufficient headroom for foreign investment in the bank through permissible mode of investments, the bank said late Tuesday in a regulatory disclosure to the stock exchanges.
Foreign portfolio investors held 34.5% in the bank as on September 30 while there was no foreign direct investment. The foreign portfolio investment holding was widely distributed, according to the latest available shareholding pattern.
The bank’s share price rose 1.94% Tuesday to Rs 971 on BSE.
