Fincare To Merge With AU Small Finance Bank In Stock Deal

Fincare Small Finance Bank Ltd. is set to merger with AU Small Finance Bank Ltd. in an all-stock deal.

AU Small Finance said its board approved the merger and under the proposed plan, Fincare shareholders will receive 579 shares of AU Small Finance for every 2,000 shares held.

The merger aims to leverage the existing complementarities between both the small finance banks, particularly related to branch network, product offerings and customer segments, according to stock exchange announcement.

AU Small Finance said the amalgamation will also accelerate building pan India distribution franchise, diversification of portfolio with access to rural geography and reduction in funding cost.

Fincare is licensed by the Reserve Bank of India (RBI) under the provisions of the Banking Regulation Act and its non-convertible debentures are listed on the BSE.

The appointed date for the amalgamation will be 1 February 2024. The amalgamation scheme is subject to approval of respective shareholders of the companies, RBI and the Competition Commission of India.

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