MUMBAI: Singaporean sovereign wealth fund Temasek Holdings today 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.
Last year, the bank had raised Rs 1,913 crore from an offer-for-sale.
In FY18, the bank's disbursements grew more than 60 per cent and assets under management rose by around 50 per cent.
In the previous fiscal it had mobilised Rs 8,000 crore of deposits.
As of end-March, the bank had 306 branches, 97 asset centers, 89 business correspondents outlets, 23 offices and 292 ATMs.
The company counter closed flat at Rs 713.60 on the BSE on a day when the Sensex shed 0.21 per cent in a see-saw trade.