MUMBAI: The Reserve Bank of India (RBI) today approved the merger of Fincare Small
Finance Bank Limited (“Fincare SFB”) with and into AU Small Finance Bank Limited (“AU SFB”). This
merger marks a significant milestone in the Indian banking sector, creating a formidable entity with a
combined customer base of over 1 Crore, over 43,500 employees, and a network of over 2,350 physical
touchpoints across 25 states and union territories, with deposit base of ₹ 89,854 Crore and Balance
Sheet Size of ₹1,16,695 Crore as on December 31, 2023.
On October 29, 2023, the Board of Directors of both AU SFB and Fincare SFB had approved the merger,
and the ‘Scheme of Amalgamation’ was later approved by their respective shareholders at their
meetings on November 27, 2023, and November 24, 2023, respectively. On January 23, 2024, the
proposed merger scheme also received the approval the Competition Commission of India (“CCI”) under
the provisions of Section 31(1) of the Competition Act, 2002.
With the RBI’s approval, Fincare SFB will merge into AU SFB effective from 1 st April 2024 and
shareholders of Fincare SFB will receive shares of AU SFB in exchange for their shares in Fincare SFB at
the approved share swap ratio. All employees of Fincare SFB will become part of the AU SFB family.
Commenting on the merger, Sanjay Agarwal, Founder, MD & CEO of AU Small Finance Bank, said,
“We are extremely grateful to the Government of India and the Reserve Bank of India for reposing their
faith in us. This merger will allow us to participate in our Honourable Prime Minister’s vision for the
‘Amrit Kaal’ and India’s dream of becoming a ‘Viksit Bharat’ by 2047. The approval adds further
responsibility on us, as custodians of public trust, and we are committed to continue building a
sustainable and inclusive Bank and empower the unserved and underserved segments of society to take
part in India’s economic growth. Combining the complementary products and geographic footprints of
both the banks will make us a true pan-India deposit and assets franchise, underscoring our
commitment to financial inclusion and creating a more robust and efficient bank. We are excited about
the opportunities it presents for growth and innovation and committed to delivering enhanced value
and service to our customers and all stakeholders".
Rajeev Yadav, MD & CEO of Fincare Small Finance Bank, added, “The merger with AU SFB marks a
new chapter for our organization. It is a transformative merger between two successful and well-
respected banks, both known for their industry-leading growth and profitability. We believe that by
joining forces, with the synergy and complementary strengths of the two entities, we will be well-
positioned to serve customers in a sustainable manner in the coming years. With an expanded product
portfolio, wider market coverage, and a formidable blend of professional expertise and entrepreneurial
spirit, the merged entity is poised to deliver exceptional value to its customers, a fulfilling and rewarding
careers for all its employees and value augmentation for all our stakeholders.”
