Bank News: Merger of two banks, know what will be the impact on customers.


By the directions issued by the Reserve Bank of India (RBI) on March 4, 2024, AU Small Finance Bank (AU SFB), India's largest SFB, has announced the merger (integration) of Fincare Small Finance Bank (Fincare SFB) with AU SFB. Which has come into effect from 1st April.


Under the all-stock merger deal announced on October 29, 2023, shareholders of Fincare SFB will get 579 equity shares in AU SFB for every 2000 equity shares held in Fincare SFB. This merger received final approval from RBI on March 4, 2024, and it has become effective from April 1, 2024.

This is one of the fastest approvals for a merger in India's Merger and Acquisition (M&A) sector with all approvals received in 4.5 months.

With this, AU SFB becomes a strong entity with a combined customer base of over Rs 1 crore, over 43,500 employees and a network of 2,350+ physical touchpoints across 25 states and union territories, with a deposit base of Rs 89,854 crore, and a balance sheet of Rs. The size is Rs 1,16,695 crore. (All numbers are on a proforma basis till December 31, 2023.

The Bank's focus now shifts to ensuring a seamless and seamless banking experience and providing exceptional banking services and value to customers within the next 9-12 months. Under this merger, Rajeev Yadav, former MD & CEO of Fincare SFB, has been named as the Deputy CEO of AU SFB and will lead all core asset businesses of Fincare SFB within the Fincare unit in AU SFB. will continue. AU SFB has recently consolidated its operations into five business groups and the 'Fincare Unit' will become its sixth business group. Additionally, Uttam Tibrewal, Executive Director, of AU SFB, has been promoted to Deputy CEO and Executive Director, of AU SFB.


Post the merger, all 59 lakh+ customers of Fincare will be able to experience and benefit from AU SFB's best-in-class technology services and flagship products (both asset and liability) which include Credit Cards, QR Codes, Video Banking, and AU0101. AU SFB also expects to get better access to South India, which will significantly expand the bank's distribution network. This increased presence will facilitate the distribution of the Bank's diverse products and services to a wider customer base over the next three years, thereby strengthening the Bank's market position.

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