The Reserve Bank of India (RBI) on Monday said it has approved the merger of Fincare Small Finance Bank Ltd with AU Small Finance Bank Ltd. The effective date of the merger will be April 1, 2024. All branches of Fincare Small Finance Bank Ltd will function as branches of AU Small Finance Bank Ltd. with effect from April 01, 2024.
The RBI's nod comes over a month after the Competition Commission of India (CCI) approved the merger of the two banks. In a statement, the CCI said that the proposed combination involved the merger of Fincare and AU, with AU being the merged entity. "The shareholders of Fincare will be allotted shares in the merged entity, post the Proposed Combination."
AU Small Finance Bank provides personal and commercial banking services (including provision of deposits, loans and advances, debit and credit card services, institutional banking, and digital banking services).
The Jaipur-headquartered lender is licensed to transact business under AD-II bank category (foreign exchange). It is also engaged in the provision of ancillary functions such as the distribution of insurance and investment products such as mutual funds, and portfolio management services.
Fincare, a banking company, provides deposit services (such as savings and current accounts, fixed deposits, and recurring deposits), lending services (including retail and microfinance loans), and digital banking services. Fincare also provides certain miscellaneous services such as the distribution of insurance products.