AU Small Finance Bank shares rose to a fresh 52-week high on Wednesday after the lender received approval from the Department of Financial Services to raise its foreign investment limit to 74 percent of its paid-up capital.

The Ministry of Finance had cleared the bank’s proposal to increase the cap from the existing 49 percent to the maximum level permitted for private sector banks.

Following the development, the stock gained 3.62 percent 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 percent during this period.

The bank said the higher limit will help maintain adequate headroom for foreign investment under the consolidated FDI policy. The approval carries no restriction on its validity.

Under current norms, foreign investment of up to 49 percent in private sector banks is allowed through the automatic route, while proposals between 49 percent and 74 percent require government approval.