The merger of Fincare Small Finance Bank with AU Small Finance Bank has received approval and is set to take effect from April 1.
Once again, there’s a forthcoming merger of banks in the country. The Reserve Bank of India has announced that from April 1, 2024, two banks will merge, with RBI approval. This time, Fincare Small Finance Bank Ltd is set to merge with AU Small Finance Bank Ltd. Effective April 1, these two banks will amalgamate into one entity. All branches of Fincare Small Finance Bank Limited will operate as branches of AU Small Finance Bank Limited starting April 1, 2024. The Competition Commission of India (CCI) approved the merger between AU Small Finance Bank and Fincare Small Finance Bank on January 23.
AU Small Finance Bank offers a range of personal and commercial banking services to its customers, encompassing deposit, loan, advance, debit-credit card, and digital banking facilities.
In this agreement, shareholders of unlisted Fincare will receive 579 shares of the listed AU SFB in the market for every 2,000 shares they own.
AU Small Finance Bank announced the merger with Fincare SFB on October 30. Currently, it will take approximately a month to finalize the merger process. Approval from the shareholders of both Fincare SFB and AU SFB was necessary, along with regulatory approval from the Reserve Bank and CCI.
Following the merger, the Managing Director and CEO of Fincare SFB will assume the role of Deputy CEO at AU SFB. Additionally, Divya Sehgal, a Director on the Board of Fincare SFB, will also join the board of AU Small Finance Bank.
