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CCI Greenlights Merger: Fincare Small Finance Bank to Join Forces with AU Small Finance Bank
January 24, 2024
In a significant development, the Competition Commission of India (CCI) has given the nod to the merger of Fincare Small Finance Bank with AU Small Finance Bank, as disclosed in an exchange filing on Tuesday.
Last October, the boards of directors of AU Small Finance Bank (AU SFB) and Fincare Small Finance Bank (Fincare SFB) gave the green signal for an all-stock merger. According to the amalgamation plan, Fincare Business Services, the promoter of Fincare SFB, will inject Rs 700 crore into Fincare SFB before the merger’s completion.
In the filing to stock exchanges, AU SBF stated, “…CCI, in its meeting on January 23, 2024, considered and approved the proposed combination involving the amalgamation of Fincare Small Finance Bank Limited into and with AU Small Finance Bank.”
However, it’s worth noting that the scheme’s finalization is contingent on obtaining approval from the Reserve Bank of India (RBI).
On Tuesday, shares of AU SFB concluded at Rs 715.95 each on the BSE, experiencing a 4.2% decline. The successful merger is anticipated to bring about notable changes in the landscape of small finance banks, pending the RBI’s regulatory green light.
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