Singaporean sovereign wealth fund Temasek Holdings on Monday picked up 5 per cent equity in AU Small Finance Bank for a consideration of Rs 1,000 crore, making it one of largest primary capital infusions into the bank.
Temasek joins other marquee investors like IFC, Warburg Pincus, Chrys Capital and Kedaara Capital I this fast growing small lender which began as vehicle finance company in 1996 and got converted itself into a small finance bank in April 2017.
“On-boarding Temasek is a testimony of the strengths of our business model, our execution track record and the market opportunity. This capital raising will strengthen our presence in both the digital as well as the physical marketplaces,” managing director and chief executive Sanjay Agarwal said in a statement.The fund will help the bank remain sufficiently capitalised for the near-term, he added.