-By ArdorComm News Network
April 3, 2024
AU Small Finance Bank (AU SFB) finalized its merger with Fincare Small Finance Bank (Fincare SFB) on Monday, marking a significant consolidation within the sector and expanding AU SFB’s footprint.
The all-stock merger, initially announced on October 29, 2023, concluded with shareholders of Fincare SFB receiving 579 equity shares in AU SFB for every 2,000 equity shares held in Fincare SFB. With the RBI granting final approval on March 4, 2024, the merger’s effective date is set for April 1, 2024.
The amalgamation is poised to offer AU SFB enhanced access to South India, thereby augmenting its distribution network. This expanded presence will facilitate the dissemination of a diverse array of products and services to a broader customer base, fortifying the bank’s market standing in the region.
Post-merger, AU SFB boasts a combined customer base of approximately 10 million, 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 116,695 crore.
The immediate focus now shifts towards ensuring a seamless integration over the next 9-12 months, prioritizing the delivery of exceptional banking services and value to customers. To mitigate potential disruptions, both banks, characterized by their tech-driven operations and customer-centric approach, have established a dedicated task force and equipped their call centers to address customer queries effectively.
Sanjay Agarwal, MD and CEO of AU Small Finance Bank, expressed gratitude to the Government of India, the Reserve Bank of India, and regulatory authorities for their support and swift approval process. The merger, he emphasized, signifies not only the amalgamation of two entities but also the convergence of shared visions aimed at redefining banking excellence in India.
The establishment of Small Finance Banks in 2015, with licenses granted to ten entities, underscores the sector’s commitment to providing basic banking services to small farmers and micro industries.