Breaking News: Historic Merger Creates Banking Giant – Find Out How | AU Small Finance Bank

On April 1, 2024, AU Small Finance Bank (AU SFB) completed its merger with Fincare Small Finance Bank (Fincare SFB), marking a significant development as the inaugural consolidation within the small finance bank sector. This merger, having obtained final approval from the Reserve Bank of India (RBI) on March 4, 2024, was executed via an all-stock deal. In this arrangement, shareholders of Fincare SFB received 579 equity shares in AU SFB for every 2,000 equity shares held in Fincare SFB.

AU SFB, headquartered in Jaipur, highlighted the strategic significance of this merger in providing expanded access to South India, thereby substantially enlarging its distribution network. This expanded reach is expected to facilitate the dissemination of a wider array of products and services to a broader customer base, thereby bolstering AU SFB’s regional market presence.

Following the merger, AU SFB’s consolidated operations encompass a customer base of approximately 1 crore, supported by 43,500 employees and a network of 2,350 physical touchpoints spanning 25 states and union territories. The bank’s deposit base stands at Rs 89,854 crore, with a balance sheet size of Rs 1,16,695 crore.

The focus now shifts towards ensuring a seamless integration process within the next 9-12 months, with a commitment to delivering superior banking services and value to customers. Both AU SFB and Fincare SFB, renowned for their tech-driven approaches and customer-centric ethos, have established dedicated task forces and bolstered their call centers to efficiently handle customer inquiries.

Sanjay Agarwal, the Managing Director and CEO of AU Small Finance Bank, expressed gratitude to the Government of India, RBI, and other regulatory bodies for their support and swift approval of the merger.

This merger holds significant implications for advancing financial inclusion objectives, as Small Finance Banks play a crucial role in providing essential banking services to underserved segments such as small farmers, micro-businesses, and the unorganized sector.

Q: When did the merger between AU Small Finance Bank and Fincare Small Finance Bank take place?

A: The merger between AU Small Finance Bank and Fincare Small Finance Bank was completed on April 1, 2024.

Q: How was the merger conducted?

A: The merger was conducted through an all-stock deal, where shareholders of Fincare Small Finance Bank received 579 equity shares in AU Small Finance Bank for every 2,000 equity shares held in Fincare Small Finance Bank.

Q: What is the significance of this merger?

A: This merger marks the first consolidation in the small finance bank sector and is expected to provide enhanced access to South India for AU Small Finance Bank, significantly expanding its distribution network and strengthening its market position in the region.

Q: What are the key figures post-merger?

A: Post-merger, AU Small Finance Bank boasts a combined customer base of approximately 1 crore, with 43,500 employees and a network of 2,350 physical touchpoints across 25 states and union territories. The bank’s deposit base stands at Rs 89,854 crore, with a balance sheet size of Rs 1,16,695 crore.

Q: What are the next steps following the merger?

A: The focus now shifts towards ensuring a smooth integration process within the next 9-12 months, with a commitment to delivering exceptional banking services and value to customers. Both AU Small Finance Bank and Fincare Small Finance Bank have established dedicated task forces and equipped their call centers to address customer queries effectively.

Q: What are the implications of this merger for financial inclusion?

A: This merger holds significant implications for advancing financial inclusion objectives, as Small Finance Banks play a crucial role in providing essential banking services to underserved segments such as small farmers, micro-businesses, and the unorganized sector.