RBI granted approval to AU Small Finance Bank to acquire Fincare Small Finance Bank

New Delhi: The Reserve Bank of India approved the merger of Fincare Small Finance Bank Limited with and into AU Small Finance Bank Limited. This merger marks a significant milestone in the Indian Banking Sector, creating a formidable entity with over 1 crore customer base and a pan-India banking franchise.

The effective date of amalgamation shall be April 1, 2024, as approved by RBI. As per the agreement between the two, shareholders of Fincare Small Finance Bank will receive 579 equity shares of AU Small Finance Bank for every 2,000 shares held.

All stock merges with shareholders of Fincare SFB to receive 579 equity shares in AU SFB for every 2,000 equity shares held in Fincare SFB.

Read Also : POWERGRID Partners with Haryana for Shiv Dham Yojana in Rural Areas

The acquisition of both SFBs will give new opportunities for growing microfinance businesses. Out of the 10 small finance banks that received licenses in 2015 from RBI, AU and Capital Small Finance Bank had no microfinance legacy.

Read Also : How the Revolutionary Aviator Game Website is Changing the Online Gambling Scene

While 49% of Fincare’s branches are based in south India, AU had merely 2%. The merged will now have 2334 branches. AU SFB came into existence as a non-bank vehicle financier in 2003 before its conversion into a bank in April 2017. Its gross advances stood at Rs 67,624 crore at the end of December.

Read Also : Northern Railway sets record with Kavach installation on 100 locomotives