The Reserve Bank of India (RBI) has given the green light to the merger of Fincare Small Finance Bank Ltd. and AU Small Finance Bank Ltd. This means the two banks can combine their operations and become one entity.
AU Small Finance Bank Limited is an Indian small finance bank, based in Jaipur. It was founded as vehicle finance company AU Financiers (India) Ltd in 1996 and converted to a small finance bank on 19 April 2017.
Approval Process:
The board of Fincare Small Finance Bank Ltd. agreed to the merger in October 2023. Then, in November 2023, the shareholders of both banks also approved the merger.
Effective Date:
According to the RBI, the merger will officially take place on April 1, 2024. This means that from this date onwards, all the branches of Fincare Small Finance Bank Ltd. will operate as branches of AU Small Finance Bank Ltd.
The Reserve Bank of India has sanctioned the Scheme of Amalgamation of Fincare Small Finance Bank Ltd. (Transferor Bank) with AU Small Finance Bank Ltd. (Transferee Bank). The Scheme has been sanctioned in exercise of the powers contained in sub-section (4) of Section 44A of the Banking Regulation Act, 1949. The effective date of the amalgamation shall be April 01, 2024. All the branches of Fincare Small Finance Bank Ltd. will function as branches of AU Small Finance Bank Ltd. with effect from April 01, 2024.
