Temasek’s subsidiary, Zulia Investments, has received approval from India’s central bank to increase its stake in AU Small Finance Bank to up to 7%. The deal would make Zulia the bank’s largest foreign investor.
In a significant development for foreign investment in the Indian banking sector, the Reserve Bank of India (RBI) has granted approval to Zulia Investments, a subsidiary of Singapore’s state-owned investment firm Temasek, to increase its stake in AU Small Finance Bank. The approval paves the way for Zulia Investments to raise its holding in the bank to as much as 7%, according to a Reuters report.
Zulia Investments had held a 1.37% stake in AU Small Finance Bank as of December 2024, according to filings with the exchange. This move, once executed, would position Zulia as the largest foreign portfolio investor in AU Small Finance Bank, strengthening its footprint in the Indian financial market.
The financial terms surrounding this stake expansion remain undisclosed, but the approval requires that the transaction be completed by February 12, 2026.
AU Small Finance Bank, which operates primarily in the retail banking space, has been attracting significant foreign investments, and this latest move by Temasek’s subsidiary adds to the growing interest in India’s banking sector.
With Zulia Investments poised to increase its stake, the deal highlights the continued attractiveness of India’s rapidly expanding financial sector to global investors.
