Top 10 Best Private Banks in India List 2024
January 03, 2024
The Reserve Bank of India (RBI) has approved the merger of Fincare Small Finance Bank Ltd and AU Small Finance Bank Ltd, which will take place on April 1, 2024. Under the agreement, shareholders of Fincare Small Finance Bank will receive 579 equity shares of AU Small Finance Bank for every 2,000 shares they own. AU Small Finance Bank provides deposits, loans, advances, debit and credit card services, institutional banking, digital banking, and personal and business banking services.
The two leaders made the agreement public in October 2023, intending to finalise it by February once necessary approvals were obtained. The news caused some concern among AUSFB shareholders. Still, the management defended the decision, referring to it as a “complementary agreement”.
The bank based in Jaipur has been permitted to conduct foreign exchange transactions. It also provides other services, such as managing portfolios and promoting investment products like mutual funds and insurance.
By acquiring Capital Small Finance Bank, AU will expand its operations to southern India and enter the microfinance sector. AU and Capital Small Finance Bank were the only two of ten small finance banks licensed by the RBI in 2015 with no prior microfinance experience.
Following the merger, the current Managing Director and CEO of Fincare SFB will be Deputy CEO at AU Small Finance Bank. Divya Sehgal, a Director on the Board of Fincare SFB, will also join the board of AU Small Finance Bank.
AU was established 2003 as a non-bank vehicle financier and became a bank in April 2017. As of December, their gross advances amounted to Rs 67,624 crore.
