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The Competition Commission of India (CCI) has granted its approval for the merger of Fincare Small Finance Bank Limited (Fincare) and AU Small Finance Bank Limited (AU).
According to CCI, this significant move is poised to reshape the landscape of the small finance banking sector. The Proposed Combination outlines the merger of Fincare and AU, with AU emerging as the surviving entity, post the merger. Under this arrangement, the shareholders of Fincare will be issued shares in the merged entity after the completion of the merger process. AU Small Finance Bank, a prominent banking entity, offers an array of personal and commercial banking services. This includes providing deposits, loans, advances, debit and credit card services, institutional banking, and digital banking services. Additionally, AU holds a license for transacting business under the AD-II bank category, allowing it to engage in foreign exchange transactions. The bank is also active in ancillary functions such as the distribution of insurance and investment products, including mutual funds and portfolio management services. On the other hand, Fincare Small Finance Bank is recognized for its comprehensive banking services, encompassing deposit services like savings accounts, current accounts, fixed deposits, and recurring deposits. The bank also provides lending services, covering retail and microfinance loans, along with digital banking services. Fincare's portfolio extends to miscellaneous services, including the distribution of insurance products. The approval from the CCI marks a pivotal step in the consolidation of the banking sector, fostering synergies between Fincare and AU. The merged entity is anticipated to leverage the strengths of both banks, offering an enhanced range of financial products and services to customers. The completion of this merger is subject to regulatory clearances and other customary closing conditions. The amalgamation of Fincare Small Finance Bank and AU Small Finance Bank is expected to bring about strategic advantages, strengthen market presence, and contribute to the overall growth of the small finance banking segment in India. (ANI)
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