AU Small Finance Bank Shares Soar to New Heights After Foreign Investment Boost

AU Small Finance Bank Shares Reach New 52-Week High

AU Small Finance Bank's shares have risen to a fresh 52-week high after the bank received approval to raise its foreign investment limit to 74% of its paid-up capital. This move is expected to have a positive impact on the banking sector and foreign investment in India.

What Does This Mean for the Bank?

The Ministry of Finance has cleared the bank's proposal to increase the foreign investment cap from 49% to 74%, the maximum level permitted for private sector banks. This will help the bank maintain adequate headroom for foreign investment under the consolidated FDI policy.

Stock Performance

Following the announcement, the stock gained 3.62% to an intraday high of Rs 1,007.25 on the National Stock Exchange, marking its new 52-week peak. The shares have advanced for two consecutive sessions and are up more than 5% during this period.

The foreign investment limit increase is expected to have a positive impact on the bank's stock prices and attract more foreign investors. The approval carries no restriction on its validity, according to a report by CNBC-TV18.

Key Facts:

• The foreign investment limit has been raised to 74% of the bank's paid-up capital.
• The move is expected to attract more foreign investors and boost the bank's stock prices.
• The approval carries no restriction on its validity.

This development is a significant step forward for AU Small Finance Bank and is expected to have a positive impact on the banking industry and foreign investment in India.