Business Standard

Fincare Small Finance Bank merger with AU SFB gets RBI approval

To function as combined entity from April 1, 2024

AU Small Finance Bank

AU Small Finance Bank

Abhijit Lele Mumbai

Listen to This Article

The Reserve Bank of India has approved the amalgamation of Fincare Small Finance Bank with Jaipur-based AU Small Finance Bank, effective from April 1, 2024, creating an entity with a balance sheet of over Rs 1.16 trillion.

All the branches of Fincare SFB will function as branches of AU Small Finance Bank with effect from April 1, 2024, RBI said in a statement. The Competition Commission of India (CCI) had already approved the merger in January 2024.

The business of the combined entity on a pro-forma basis consisted of deposits worth Rs 89,854 crore and gross advances worth Rs 79,565 crore as of December 2023, according to AUSFB’s estimates.

In October last year, the board of directors of AU SFB and Fincare had approved an all-stock merger. This is the first-ever merger in the small finance bank space, wherein Fincare shareholders will receive 579 shares of AU for every 2,000 shares held.

As per the terms of the scheme of amalgamation, Fincare Business Services, the promoter of Fincare SFB, shall infuse Rs 700 crore into Fincare SFB prior to the completion of the merger.

The stock of AU SFB closed 0.34 per cent higher at Rs 579.8 per share on BSE.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Mar 04 2024 | 9:23 PM IST

Explore News