05 March 2024
The Reserve Bank of India (RBI) today approved the merger of Fincare Small Finance Bank Limited (“Fincare SFB”) with and into AU Small Finance Bank Limited (“AU SFB”). This merger marks a significant milestone in the Indian banking sector, creating a formidable entity with over 1 Crore customer base and a pan-India banking franchise.
All-stock merger with shareholders of Fincare SFB to receive 579 equity shares in AU SFB for every 2,000 equity shares held in Fincare SFB. On October 29, 2023, the Board of Directors of both AU SFB and Fincare SFB had approved the merger, and the ‘Scheme of Amalgamation’ was later approved by their respective shareholders at their meetings on November 27, 2023, and November 24, 2023, respectively. On January 23, 2024, the proposed merger scheme also received the approval the Competition Commission of India ("CCI") under the provisions of Section 31(1) of the Competition Act, 2002.
With the RBI's approval, Fincare SFB will merge into AU SFB effective from 1st April 2024 and shareholders of Fincare SFB will receive shares of AU SFB in exchange for their shares in Fincare SFB at the approved share swap ratio. All employees of Fincare SFB will become part of the AU SFB family.