CCI Approved Merger of AU Bank and Fincare Bank

Utkarsh Classes Last Updated 27-01-2024

CCI Approved Merger of AU Bank and Fincare Bank

Economy 4 min read

The Competition Commission of India has approved the merger of AU Small Finance Bank and Fincare Small Finance Bank under Banking Regulation Act of 1949.

The shareholders of Fincare will receive shares in the merged entity after the Proposed Combination.
AU is a bank that offers personal and commercial banking services, including deposits, loans, debit and credit card services and digital banking services.
Fincare is also a banking company that provides deposit services such as savings accounts, current accounts, fixed deposits, recurring deposits, lending services including retail and microfinance loans, digital banking services and distribution of insurance products.

About AU Small Finance Bank

Promoter and Managing Director & CEO of the AU Small Finance Bank is Mr. Sanjay Agarwal is AU Small Finance Bank is headquartered in Jaipur.
Tagline of AU Small Finance Bank is Chalo Aage Badhe.

About Small Finance Bank

Small Finance Banks are a specific segment of banking in India that were created by the Reserve Bank of India (RBI) under the guidance of the Government of India.
The objective of Small Finance Banks is to extend basic banking services primarily to unserved and underserved sections, including small and marginal farmers, small business units, micro and small industries and unorganised entities with the aim to further financial inclusion.
These institutions offer all basic banking services, including lending and taking deposits.
SFB was set up on the recommendation of Raghuram Rajan, who headed the “High-Level Committee on Financial Sector Reforms”.

Under RBI

Small Finance Banks are operational in India under the supervision of the Reserve Bank of India (RBI) and are subject to the Banking Ombudsman Scheme.
These banks are registered as public limited companies and are regulated by the Companies Act, 2013, the Banking Regulations Act, 1949, the RBI Act, 1934 and other relevant statutes and directives.
The Banking Ombudsman Scheme 2006, is a framework that outlines the guidelines for these banks to operate within and is updated periodically.

Some of the Indian banks have been merged in the following list :

Acquirer Bank	Merged Bank
Punjab National Bank	Oriental Bank of Commerce United Bank of India
Canara Bank	Syndicate Bank
Indian Bank	Allahabad Bank
Union Bank of India	Andhra Bank Corporation Bank
Bank of Baroda	Dena Bank Vijaya Bank
State Bank of India	State Bank of Bikaner and Jaipur State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore Bharatiya Mahila Bank