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Fincare Small Finance Bank to merge with AU Small Finance Bank

AU Small Finance Bank has announced that its board has approved a merger with IPO-bound Fincare Small Finance Bank.As part of the merger, shareholders of Fincare Small Finance Bank will receive 579 equity shares of AU Small Finance Bank for every 2,000 shares held. The transaction is subject to approval from the Reserve Bank of India and Competition Commission of India.

The amalgamation is scheduled to take effect on February 1, 2024.

According to AU Small Finance Bank, this merger will allow it to leverage on “significant complementarities” between the two lenders encompassing factors such as branch networks, product portfolios, and customer demographics.

This merger is expected to provide several advantages for both banks, including a pan-India distribution franchise, portfolio diversification through entry into microfinance, cross-selling opportunities, and reduced funding costs.

PR Newswire

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