RBI Gives Merger Approval of Fincare Small Finance Bank with AU Small Finance Bank The merger will go into effect on April 1, 2024. AU would gain a presence in southern India and an entry into microfinance with the deal. The merged bank will have 2334 branches and AU's gross advances are Rs 67,624 crore.
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The merger of Fincare Small Finance Bank Ltd and AU Small Finance Bank Ltd has been approved by the Reserve Bank of India (RBI). The merger will go into effect on April 1, 2024.
According to the terms of their agreement, for every 2,000 shares held, shareholders of Fincare Small Finance Bank will receive 579 equity shares of AU Small Finance Bank.
In addition to offering deposits, loans, advances, debit and credit card services, institutional banking, and digital banking, AU Small Finance Bank also offers personal and business banking services.
The Jaipur-headquartered lender is authorized to transact business under AD-II bank category (foreign exchange). In addition, it offers ancillary services including portfolio management and the marketing of investment products like mutual funds and insurance.
Through the acquisition, AU would gain a presence in southern India and be able to enter the microfinance industry. AU and Capital Small Finance Bank were the only two of the ten small finance banks licensed by the RBI in 2015 that did not have any history in microfinance.
The banking company Fincare offers lending services, including retail and microfinance loans, digital banking services, and deposit services such savings and current accounts, fixed deposits, and recurring deposits. Fincare offers a variety of other services as well, like distributing insurance goods.
