RBI Approval: Merger of Fincare SFB with AU Small Finance Bank

The Reserve Bank of India has given its approval for the merger of Fincare Small Finance Bank Ltd. with AU Small Finance Bank, effective from April 1. The merger is sanctioned under Section 44A of the Banking Regulation Act, 1949.

Merger Details

1. All branches of Fincare Small Finance Bank will operate as branches of AU Small Finance Bank post-merger.
2. The board of AU Small Finance Bank, in its meeting on Oct. 29, approved the scheme of amalgamation.
3. Shareholders of Fincare Small Finance Bank will receive 579 equity shares of AU Small Finance Bank for every 2,000 shares held.

Regulatory Approvals

1. The RBI’s approval follows the clearance from the Competition Commission of India (CCI).
2. CCI stated that the merger involves Fincare and AU, with AU being the merged entity. Shareholders of Fincare will receive shares in the merged entity.

AU Small Finance Bank

1. Provides personal and commercial banking services, including deposits, loans, debit and credit cards, institutional banking, and digital banking.
2. Licensed under AD-II bank category for foreign exchange transactions.
3. Offers ancillary services such as insurance and investment products distribution, including mutual funds and portfolio management.

Fincare

1. Offers deposit services (savings, current, fixed, and recurring accounts), lending services (retail and microfinance loans), and digital banking.
2. Provides miscellaneous services like insurance product distribution.