FIIs and DIIs Increase Stake: Here’s Why AU Small Finance Bank is in Focus on May 7
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AU SFB said it had received the RBI’s letter dated May 6, 2026, granting approval to Kotak Mahindra Bank Limited (KMBL) and the wider ‘Kotak Mahindra Group’ for the proposed aggregate holding.
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Bank-ltd-286335">AU Small Finance Bank (AU SFB) has received approval from the Reserve Bank of India (RBI), permitting Kotak Mahindra Bank Limited, along with its subsidiaries and funds or schemes managed by them, to acquire up to 9.99 per cent of the bank’s paid-up share capital or voting rights.
In a regulatory filing dated May 7, 2026, AU SFB said it had received the RBI’s letter dated May 6, 2026, granting approval to Kotak Mahindra Bank Limited (KMBL) and the wider ‘Kotak Mahindra Group’ for the proposed aggregate holding.
The approval allows the Kotak Mahindra Group to acquire up to 9.99 per cent stake in AU SFB, subject to compliance with the provisions of the Banking Regulation Act, 1949, applicable RBI directions, the Foreign Exchange Management Act, 1999, regulations issued by the Securities and Exchange Board of India, and other applicable statutes, regulations and guidelines.
About the Company
AU Small Finance Bank Limited is a retail-focused bank operating across 21 States and 4 Union Territories through 2,486 touchpoints. Originating in 1996 as a vehicle financing business founded by Sanjay Agarwal, it transitioned into a small finance bank in 2015. In FY 2024–25, the bank reported deposits of Rs 1,24,269 crore, a gross loan portfolio of Rs 1,15,704 crore, and profit after Tax of Rs 2,106 crore, with operations exclusively in India.
On May 7, AU Small Finance Bank share price trading at Rs 1,031 at opening bell. The stock's returns were 52.48 per cent (1 year), 61.66 per cent (2 years) and 51.99 per cent (3 years); the 1-year return of 52.48 per cent outperformed the BSE 500's 4.81 per cent. The 52-week range was Rs 672.15–Rs 1,065.60, and the face value is Rs 10. Current foreign institutional holding rose to 37.27 per cent from 36.45 per cent (up 0.82 percentage points), and current domestic institutional holding rose to 31.3 per cent from 31.27 per cent (up 0.03 percentage points).
Disclaimer: The article is for informational purposes only and not investment advice.