Fincare Small Finance Bank Merger With AU Small Finance Bank: The merger between AU Small Finance Bank and Fincare Small Finance Bank has been approved. The merger of both the banks will be effective from April 1.
There is going to be another bank merger in the nation. The Reserve Bank of India announced on April 1, 2024, that it has approved the merger of two further banks. This time, AU Small Finance Bank Ltd. and Fincare Small Finance Bank Ltd. will merge. As of April 1, these two banks will merge into one.
With effect from April 1, 2024, all branches of Fincare Small Finance Bank Limited will operate as branches of AU Small Finance Bank Limited. The Competition Commission of India (CCI) gave its approval to the merger of Fincare Small Finance Bank and AU Small Finance Bank on January 23.
Which services is AU Small Finance Bank offering?
Customers of AU Small Finance Bank can use both personal and business banking services. This covers digital banking services as well as deposit, loan, advance, and debit/credit card capabilities.Instead of 2000 shares, you will receive 579 shares.
As per the agreement, owners of unlisted Fincare will receive 579 shares of the publicly traded AU SFB for every 2,000 shares they now own.Details were provided on October 30.
On October 30, AU Small Finance Bank provided information regarding the proposed merger with Fincare SFB. As of right now, the combination of the two will still take one month to finish. It also needed the consent of the shareholders of AU SFB and Fincare SFB. In addition, the Reserve Bank's regulatory permission was necessary.The board will also undergo modifications.
The CEO and Managing Director of Fincare SFB will join AU SFB as Deputy CEO following the merger. In addition, Divya Sehgal, a director of the Fincare SFB board, will join the AU Small Finance Bank board.
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