Home   »   Banking Current Affairs 2023   »   Merger Announcement: AU Small Finance Bank...

Merger Announcement: AU Small Finance Bank and Fincare Small Finance Bank

AU Small Finance Bank has merged with Fincare Small Finance Bank, marking a significant consolidation in the banking sector. The merger, finalized on April 1, 2024, through an all-stock deal, strengthens AU SFB’s presence in South India and enhances its customer base and distribution network.

Key Points

  1. Merger Details

    • Fincare SFB shareholders received 579 equity shares in AU SFB for every 2,000 equity shares held.
    • RBI granted final approval on March 4, 2024.
  2. Impact and Benefits

    • Enhanced access to South India market.
    • Combined customer base of approximately 1 crore, with 43,500 employees.
    • Expanded network of 2,350 physical touchpoints across 25 states and union territories.
    • Deposit base of Rs 89,854 crore and balance sheet size of Rs 1,16,695 crore.
  3. Integration Plan

    • Focus on seamless integration within the next 9-12 months.
    • Priority on delivering exceptional banking services and value to customers.
  4. Customer Service Assurance

    • Dedicated task force established for seamless transition.
    • Call centers equipped to address all customer queries effectively.
  5. Leadership Statement

    • Shared vision to redefine banking excellence in India.
    • Gratitude to Government of India, Reserve Bank of India, and regulatory authorities for support.

Merger Announcement: AU Small Finance Bank and Fincare Small Finance Bank_4.1