RBI Approves Merger of Two Finance Banks, Effective from April
The merger between AU Small Finance Bank and Fincare Small Finance Bank has been approved. The merger of both banks will be effective from April 1.
Bank Merger Update: Once again, there is going to be a merger of banks in the country. The Reserve Bank of India has announced that from April 1, 2024, two more banks are set to be merged, with approval from the RBI. This time, Fincare Small Finance Bank Ltd will be merged with AU Small Finance Bank Ltd. These two banks will become one entity from April 1.
All branches of Fincare Small Finance Bank Limited will operate as branches of AU Small Finance Bank Limited starting from April 1, 2024. On January 23, the Competition Commission of India (CCI) approved the merger between AU Small Finance Bank and Fincare Small Finance Bank.
AU Small Finance Bank offers a range of personal and commercial banking services to its customers, including deposit accounts, loans, advances, debit and credit cards, and digital banking services.
As per the merger deal, shareholders of unlisted Fincare will receive 579 shares of the listed AU SFB in the market for every 2,000 shares they currently hold. This information was disclosed on October 30.
The merger process between AU Small Finance Bank and Fincare SFB was announced on October 30, with an expected completion time of about a month. Approval from the shareholders of both Fincare SFB and AU SFB, as well as regulatory approval from the Reserve Bank and CCI, was required for the merger to proceed.
Following the merger, the Managing Director and CEO of Fincare SFB will assume the role of Deputy CEO of AU SFB. Additionally, Divya Sehgal, Director of the Board of Fincare SFB, will join the board of AU Small Finance Bank.
