RBI Clears Zulia Investments to Acquire 7% Stake in AU Small Finance Bank

The Reserve Bank of India (RBI) has approved Zulia Investments, a Temasek Holdings subsidiary, to acquire up to a 7% stake in AU Small Finance Bank. The approval, granted on February 12, gives Zulia Investments one year to complete the acquisition, after which the approval will lapse if not executed. This move brings a major global investor into AU Small Finance Bank, further strengthening its position. The deal must comply with banking regulations, FEMA, SEBI norms, and RBI guidelines. Notably, in January, RBI also allowed HDFC Bank to acquire up to 9.5% stake in AU SFB within a similar timeframe.

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