ArdorComm Media Group

Contact Us
logo
Menu
logo
ArdorComm ArdorComm ArdorComm

Consolidation

Finance Ministry Approves IFCI Group Consolidation Plan

Leave a Comment / By / Human Resource Community

The Department of Financial Services (DFS) under the Finance Ministry has granted ‘in-principle’ approval for the consolidation of the IFCI Group, marking a significant step toward restructuring and streamlining its operations. The plan involves the merger or amalgamation of IFCI Limited, StockHolding Corporation of India Limited, and other group companies to form a unified financial entity. In tandem, the board of IFCI Limited has also provided its nod to initiate the consolidation process. IFCI Limited confirmed the development in a regulatory filing on Friday, noting that the plan will be executed in compliance with all applicable laws and regulations. Consolidation Plan Highlights: Merger Entities: Key companies, including StockHolding Corporation of India Limited, IFCI Factors Limited, IFCI Infrastructure Development Ltd, and IIDL Realtors Limited, will be merged with IFCI Limited, the publicly listed parent entity. Subsidiary Restructuring: Subsidiaries such as StockHolding Services Limited, IFCI Financial Services Limited, IFIN Commodities Limited, and IFIN Credit Limited will be consolidated into a single subsidiary of the parent entity. Direct Subsidiaries: Other group entities, including StockHolding Document Management Services, IFIN Securities Finance, and IFCI Venture Capital Funds, will become direct subsidiaries of the consolidated listed entity. The Centre has been actively supporting IFCI Limited, infusing ₹500 crore in April 2024 through equity allotment at ₹40.33 per share. This backing has coincided with IFCI’s improving financial performance, with the company reporting a net profit of ₹185 crore for Q2 FY2024, up 7% from ₹173 crore in the same quarter last year. The consolidation is expected to enhance operational efficiencies and reinforce the group’s market positioning, driving future growth in India’s financial sector. Source: thehindubusinessline Photo Credit: thehindubusinessline

Fincare SFB Completes Merger with AU SFB, Bolstering Distribution Network

Leave a Comment / By / Human Resource Community

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.