RBI approves merger of Fincare Small Finance Bank with AU Small Finance Bank (2024)

FAQs

RBI approves merger of Fincare Small Finance Bank with AU Small Finance Bank? ›

The Reserve Bank approves the all-stock merger of AU Small Finance Bank and Fincare Small Finance Bank. The deal, effective from April 1, will give FSFB shareholders 9.9% equity in AUSFB. The merger allows AUSFB to expand into the Southern region and microfinance assets business.

Mumbai, April 1, 2024: In accordance with the Reserve Bank India (RBI) approval dated March 4, 2024, AU Small Finance Bank (AU SFB), India's largest SFB, announced the amalgamation of Fincare Small Finance Bank (Fincare SFB) with and into AU SFB, effective today.

AU Small Finance Bank and Fincare Small Finance Bank merge, reshaping the Indian banking landscape. As per directions of the Reserve Bank India (RBI), AU Small Finance Bank (AU SFB), India's largest SFB, announced the merger of Fincare Small Finance Bank (Fincare SFB) into AU SFB, effective 1^st April, 2024.

Both Nomura and Investec have are positive on AU Small Finance Bank, which emerges as a top contender to transition, since is the only small finance bank that meets all the required criteria mandated by the RBI.

AU Small Finance Bank (AU SFB) on Monday amalgamated Fincare Small Finance Bank (Fincare SFB), marking the first such consolidation in the sector.

RBI approves Fincare-AU Small Finance Bank merger

RBI approves merger of Fincare Small Finance Bank with AU Small Finance Bank, effective from April 1, 2024. Competition Commission of India also approved in Jan 2024. Boards of Fincare and AU cleared the all-stock merger. Reported by Tnn.

AU Small Finance Bank has completed the acquisition of Fincare Small Finance Bank, effective April 1, marking the first such merger among small finance banks.

Rajeev Yadav is the Founder, MD & CEO at Fincare . Additionally, Rajeev Yadav has had 3 past jobs including CEO - GE Money Financial Services, India at GE Capital Real Estate .

What is the old name of AU small bank? ›

AU Small Finance Bank Limited (formerly known as Au Financiers (India) Limited) was incorporated as a Public Company. The Company had originally obtained its license from Reserve Bank of India (RBI) to operate as a non deposit accepting Non-Banking Financial Company (NBFC-ND) on November 7 2000.

As SFBs are regulated by the RBI and must fulfil the stringent requirements defined by the Central Bank, they can be trusted with your hard-earned money.

Capital Small Finance Bank was established in April 2016 as India's first small finance bank and is based in Jalandhar.

Safety and security: Fincare Small Finance Bank is a well-regulated bank with a good track record. Your investment in the bank's FDs is safe and secure. Variety of options: FD rates of Fincare Small Finance Bank comes with a variety of FD options to meet the needs of different investors.

Established in 2017, Fincare Small Finance Bank quickly evolved into a Scheduled Commercial Bank, prioritizing financial inclusion.

Fincare Small Finance Bank's competitors and similar companies include NRSP Microfinance Bank, Dhanlaxmi Bank, Westconsin Credit Union and PingAn Bank.

The company was founded in 1996 by Sanjay Agarwal (managing director and CEO of AU Small Finance Bank) as a private limited company, and publicly listed in an IPO on 29 June 2017. He is a merit holder-Chartered Accountant and a first-generation entrepreneur.