Temasek through its wholly-owned subsidiary Camas Investments Pte has invested Rs 525 crore ($74 million) in AU Small Finance Bank. Temasek has invested the money through the conversion of its 1.01 crore warrants. Post this, the bank net worth would increase to more than Rs 4,000 crore.
With this investment, Temasek has firmed up its stake at 4.8 percent in AU Bank. The completion of Temaseks investment is a reflection of the uniqueness of its secured retail and steadily growing granular deposit franchise, stable portfolio quality, margins and growth headroom.
AU Small Finance Bank is a small finance bank (SFB) that has recently transitioned from a prominent, retail focused non-banking finance company (NBFC), which primarily served low and middle-income individuals and businesses that have limited or no access to formal banking and finance channels.
