Fincare merges with AU Small Finance Bank

AU Small Finance Bank (AU SFB) amalgamated Fincare Small Finance Bank (Fincare SFB), marking the first such consolidation in the sector.

In an all-stock merger deal first announced on October 29, 2023, where the shareholders of Fincare SFB received 579 equity shares in AU SFB for every 2,000 equity shares held in Fincare SFB, the merger received final approval from RBI on March 4, 2024, with the effective date of April 1, 2024.

The merger is also expected to provide AU SFB with enhanced access to South India, significantly expanding its distribution network, the Jaipur-based lender said in a statement.