The Reserve Bank of India (RBI) has given the green light for the merger of Fincare Small Finance Bank Limited ("Fincare SFB") with AU Small Finance Bank Limited ("AU SFB"). This move, approved by both banks' boards in October 2023 and later by their shareholders, marks a significant development in the Indian banking sector.
The merger, set to take effect from April 1, 2024, will see Fincare SFB shareholders receiving 579 equity shares in AU SFB for every 2,000 shares held in Fincare SFB. With a combined customer base exceeding 1 Crore and a widespread network of over 2,350 physical touchpoints across 25 states and union territories, the merged entity aims to leverage complementary geographic footprints and product offerings, creating a pan-India retail banking franchise.
Sanjay Agarwal, Founder, MD & CEO of AU Small Finance Bank, expressed gratitude to the Government of India and the RBI for their support. He emphasized the merger's alignment with Prime Minister Narendra Modi's vision for India's economic growth, pledging a commitment to building a sustainable and inclusive bank.
Rajeev Yadav, MD & CEO of Fincare Small Finance Bank, described the merger as a transformative step for both organizations. He highlighted the combined entity's expanded product portfolio, wider market coverage, and blend of professional expertise and entrepreneurial spirit as key strengths poised to deliver exceptional value to customers and stakeholders.
The merger underscores the banks' commitment to financial inclusion and growth, promising enhanced services and opportunities for all stakeholders involved.
