AU Small Bank becoming Big

Fincare SFB to merge with AU Small Finance Bank

AU Small Finance Bank Ltd on Sunday said it will take into its fold peer lender Fincare Small Finance Bank in the first such merger between two such institutions.

Under the amalgamation plan, shareholders of Fincare Small Finance Bank will get 579 equity shares of AU Small Finance Bank Ltd for every 2,000 fully paid-up equity shares they ow

Set up to push financial inclusion by providing an outlet for savings and by providing access to credit to small business units; small and marginal farmers; micro and small industries; and other unorganised sector entities, these banks were set up under an RBI policy from 2014. While AU Small Finance Bank started operations in April 2017, Disha Microfin (which later became Fincare SFB after a merger with Future Financial Services) commenced operations in July 201

“The scheme is subject to approval of the respective shareholders of the transferor company (Fincare Small Finance Bank Ltd) and transferee company (AU Small Finance Bank Ltd), the Reserve Bank of India (RBI) and the Competition Commission of India (CCI)," AU SFB said in a regulatory filing late on Sunday evenin

The statement said that the appointed date of the scheme shall be 1 February 2024, or a date as may be fixed mutually by both companies and approved by RBI

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