AU Small Finance Bank: RBI approves Temasek’s Zulia Investments to acquire up to 7% stake
AU Small Finance Bank announced that the Reserve Bank of India has approved Temasek's Zulia Investments to acquire up to 7% stake in the bank. The acquisition must comply with various banking regulations and is valid for one year from the approval date.
AU Small Finance Bank (AU SFB), in an exchange filing, announced on Thursday, February 13 that the Reserve Bank of India (RBI) has approved Temasek's Zulia Investments to acquire up to 7 percent stake in the company.
“We hereby inform that AU Small Finance Bank Limited (“AU SFB”) has received a copy of letter of the Reserve Bank of India (“RBI”) dated February 12, 2025 addressed to Zulia Investments Pte. Ltd., an indirect wholly owned subsidiary of Temasek Holdings (Private) Limited that it has accorded its approval to the Zulia Investments Pte. Ltd. (along with its persons acting in concert and associate enterprises) to acquire ‘aggregate holding’ of up to 7 percent of the paid-up share capital or voting rights in the AU SFB within one year from the date of RBI approval letter, failing which RBI approval shall stand cancelled,” the company informed.
The approval is subject to compliance with the Banking Regulation Act, 1949, RBI’s guidelines on shareholding in banks, the Foreign Exchange Management Act, 1999, SEBI regulations, and other applicable laws.
Financial Performance
AU Small Finance Bank reported a net profit of ₹528.45 crore for the October-December quarter (Q3FY25), reflecting a 41 percent year-on-year rise from ₹375.25 crore in the same period last year. However, sequentially, net profit declined by 7.5 percent from ₹571.2 crore in the September quarter (Q2FY25).
The bank’s net interest income (NII) surged 53 percent year-on-year to ₹2,022.5 crore in Q3FY25. However, asset quality saw some pressure, with the net NPA margin rising to 0.91 percent in the quarter under review from 0.75 percent in Q2FY25, while the gross NPA margin increased to 2.31 percent from 1.98 percent sequentially.
Total income grew nearly 49 percent year-on-year to ₹4,731.89 crore in Q3, compared to ₹3,178.05 crore in the corresponding period of the previous fiscal.
Stock Price Trend
The stock declined around 2 percent to its day's low of ₹545 on Thursday. In the last 1 year, it has shed almost 7 percent while just in February so far, it has list over 8 percent after a 7.5 percent rise in January 2025.
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