AU Small Finance Bank and Fincare Small Finance Bank have approved all-stock merger. Fincare will merge with AU, with Fincare shareholders receiving 579 shares in AU for every 2,000 shares of Fincare.
Banking & Finance
AU Small Finance Bank and Fincare Small Finance Bank have approved all-stock merger. Fincare will merge with AU, with Fincare shareholders receiving 579 shares in AU for every 2,000 shares of Fincare. The merger is subject to approval and will create a merged entity with over 98 lakh customers and 43,000 employees. The merger aims to diversify AU's business into rural microfinance, mortgages and gold loans. After the merger, Fincare MD and CEO Rajeev Yadav will become the deputy CEO of AU. The merger is expected to take effect from February 1, 2024, pending the receipt of necessary approvals. After the merger, AU SFB will be able to venture into micro finance, which offers higher net interest margins. The deal will also help AU SFB accelerate its expansion in the southern markets.
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