RBI gives nod to Fincare Small Finance Bank merger with AU Small Finance Bank

The Reserve Bank of India on Monday, March 4 approved the Scheme of Amalgamation of Fincare Small Finance Bank (Fincare SFB) with AU Small Finance Bank (AU SFB) Ltd. The date of the amalgamation will be April 1, 2024, the RBI said. All the branches of Fincare SFB will function as branches of AU SFB from April 1, the RBI added.

The AU SFB announced on October 30 that Fincare SFB will merge with it, subject to approval from the shareholders of the parties involved and regulatory nods from the RBI and the Competition Commission of India (CCI). The lender also said that the promoters of Fincare SFB will infuse a capital of ₹700 crore.

As part of the merger, the Managing Director and Chief Executive Officer of Fincare SFB, Rajeev Yadav, will become the Deputy CEO of AU SFB. Besides, Divya Sehgal, a current director of Fincare SFB's board, will join AU SFB's board.