AU Small Finance Bank Hits Fresh 52-Week High as Govt Approves 74% FDI Limit

Shares of

ance Bank surged on Wednesday after the government granted approval to raise the foreign investment limit from 49% to 74% of its paid-up capital. The stock climbed as much as 3.62% to touch an intraday and fresh 52-week high of ₹1,007.25 on the NSE. This marks the second straight session of gains, with the stock rising over 5% in this period. The Department of Financial Services, Ministry of Finance, has cleared the bank’s proposal to increase the foreign direct investment (FDI) cap to the maximum permissible level for private sector banks. The approval comes with no validity restrictions and provides significant headroom for future foreign inflows under the consolidated FDI policy. Currently, FDI up to 49% is allowed through the automatic route in private banks, while any increase beyond that requires government nod. The development is seen as a positive trigger for the stock, enhancing investor confidence and opening doors for greater foreign participation in one of India’s leading small finance banks.