The Reserve Bank of India (RBI) on March 4 said it has approved the Scheme of Amalgamation of Fincare Small Finance Bank with AU Small Finance Bank Ltd.
The effective date of the amalgamation will be April 01, 2024, RBI said.
All the branches of Fincare Small Finance Bank Ltd will function as branches of AU Small Finance Bank Ltd with effect from April 01, 2024, RBI added.
On January 23, the Competition Commission of India (CCI) approved the merger between AU Small Finance Bank and Fincare Small Finance Bank.
"The Competition Commission of India (CCI) vide its letter dated January 23, 2024, has communicated that CCI in its meeting held on January 23, 2024, considered and approved the proposed combination involving the amalgamation of Fincare Small Finance Bank with AU Small Finance Bank," AU SFB said in a regulatory filing on January 23.
The lender further said that the scheme remains subject to receipt of the approval of the Reserve Bank of India (RBI).
Merger
AU SFB on October 30 announced that Fincare SFB will merge with the bank from February 1, 2024. The completion of this transaction was subject to several critical conditions, including approval from the shareholders of both Fincare SFB and AU SFB, regulatory nods from the RBI and the CCI, and a capital infusion of Rs 700 crores by the promoters of Fincare SFB.
As part of this merger, the Managing Director & CEO of Fincare SFB will become the Deputy CEO of AU SFB. Additionally, Divya Sehgal, a current director on Fincare SFB's board, will join AU SFB's board, further strengthening the leadership team.
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