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AU Small Finance Bank and Fincare Small Finance Bank merge, reshaping the Indian banking landscape

    As per directions of the Reserve Bank India (RBI), AU Small Finance Bank (AU SFB), India’s largest SFB, announced the merger of Fincare Small Finance Bank (Fincare SFB) into AU SFB, effective 1st April, 2024. This merger aims to establish a robust pan-India retail banking franchise by leveraging complementary geographic footprints and product offerings.

    Post-merger, Fincare’s 59 lakh plus customers will be able to experience and enjoy the best technological services and flagship products (both assets & liabilities) of AU SFB. Effective 1st April, 2024, AU SFB’s rate of interest on savings accounts as well as new fixed deposits will be applicable to all Fincare’s customers. Also, the existing fixed deposits (including Recurring Deposits) booked before 1st April, 2024, will continue as per applicable rate of interest for Fincare, till maturity. For more details on AU SFB’s rate of interests, customers could visit website: https://www.aubank.in/interest-rates.

    As per vision AU@2027, the focus is to ensure a smooth and seamless integration within the next 9-12 months and deliver exceptional banking services and value to the customers. By March 2025, the merger aims for full integration, combining the strengths of both entities to create a more robust and efficient organization. 

Frequently Asked Questions

S.No. FAQ’s Answers
1 Why is AU Small Finance Bank merging with Fincare Small Finance Bank? The merger is a strategic move designed to harness the synergies and complementarity of both banks. It will create a stronger, more customer-centric institution, ensuring a brighter future for our customers and the bank.
2 What is the effective date of merger? The effective date of merger is 1st April '24.
3 Can I do financial transactions (Cash Deposit, Withdrawal, RTGS, NEFT, FT) at Fincare Small Finance Bank branches? Yes after a period of time you will be able to do all transactions at Fincare Small Finance Bank branches. We shall keep you posted on the progression of integration. However, at this point we would request you to continue using AU Small Finance Bank branches.
4 Can I get all the type of services from Fincare Small Finance Bank branches as well? Yes after a period of time you will be able to do all transactions at Fincare Small Finance Bank branches. We shall keep you posted on the progression of integration. However, at this point we would request you to continue using AU Small Finance Bank branches.
5 Can I do Non-Financial transactions at Fincare branches? Yes after a period of time you will be able to do all transactions at Fincare Small Finance Bank branches. We shall keep you posted on the progression of integration. However, at this point we would request you to continue using AU Small Finance Bank branches.
6 Will there be one customer service number for both banks, or will the existing separate customer care lines continue to operate ? Currently there is no change in customer service numbers. For any changes in the future, customers shall be notified.
7 Will I be able to use Fincare Small Finance Bank's ATM without any fees/charges? Yes, Fincare ATMs will be AU ATMs hence you can use ATMs basis the account variant.
8 Can I get locker facilities from Fincare Small Finance Bank? Yes after a period you will be able to do all transactions at Fincare Small Finance Bank branches. We shall keep you posted on the progression of integration. However, at this point we would request you to continue using AU Small Finance Bank branches.
9 Can customers deposit cash in cash deposit machine (CDM) from Fincare Small Finance Bank ATMs? Yes after a period of time you will be able to do all transactions at Fincare Small Finance Bank branches. We shall keep you posted on the progression of integration. However, at this point we would request you to continue using AU Small Finance Bank branches.
10 Can I print my AU Small Finance Bank account’s passbook from any nearby Fincare Small Finance Bank branch? Yes after a period of time you will be able to do all transactions at Fincare Small Finance Bank branches. We shall keep you posted on the progression of integration. However, at this point we would request you to continue using AU Small Finance Bank branches.
11 Can customer deposit cheque for clearing at Fincare Small Finance Bank branches? Yes after a period of time you will be able to do all transactions at Fincare Small Finance Bank branches. We shall keep you posted on the progression of integration. However, at this point we would request you to continue using AU Small Finance Bank branches.
12 Can customers deposits foreclosure charges and any other asset related charges at Fincare Small Finance Bank Branch? Yes after a period of time you will be able to do all transactions at Fincare Small Finance Bank branches. We shall keep you posted on the progression of integration. However, at this point we would request you to continue using AU Small Finance Bank branches.
13 Can customers submit a request for loan foreclosure at Fincare Small Finance Bank branches? Yes after a period of time you will be able to do all transactions at Fincare Small Finance Bank branches. We shall keep you posted on the progression of integration. However, at this point we would request you to continue using AU Small Finance Bank branches.
14 Will there be any change in the interest rates if I open new FDs and RDs after the merger with Fincare Small Finance Bank? Post-merger, all new FD and RD shall be opened with AU Small Finance Bank.
15 I have accounts in both banks. Will my Fincare Small Finance Bank customer ID and other customer details remain the same, or will they change? Yes at this point your Fincare Small Finance Bank Customer ID and other customer details shall remain same. We shall update you on the progress on integration and any action you need to take.
16 What happens if I have accounts in both AU Small Finance Bank & Fincare Small Finance Bank? You shall be able to operate both the accounts without any concerns. We shall update you on the progress of banks integration over period and about any action needed.
17 Are there any changes to online banking platforms or mobile apps for customers having account in both banks? Currently there is no change. For any changes in the future, customers shall be notified.
18 Can customers take a Gold Loan from Fincare Small Finance Bank branches? Yes after a period of time you will be able to do all transactions at Fincare Small Finance Bank branches. We shall keep you posted on the progression of integration. However, at this point we would request you to continue using AU Small Finance Bank branches.
19 Since there is no home branch concept at AU Small Finance Bank, will it apply to Fincare Small Finance Bank branches after the merger too? Yes after a period of time you will be able to do all transactions at Fincare Small Finance Bank branches. We shall keep you posted on the progression of integration. However, at this point we would request you to continue using AU Small Finance Bank branches.
20 Can customers take a loan statement from Fincare Small Fincare Bank Branches? Yes after a period of time you will be able to do all transactions at Fincare Small Finance Bank branches. We shall keep you posted on the progression of integration. However, at this point we would request you to continue using AU Small Finance Bank branches.
21 Can customers do a part payment from Fincare Small Finance Bank Branches? Yes after a period of time you will be able to do all transactions at Fincare Small Finance Bank branches. We shall keep you posted on the progression of integration. However, at this point we would request you to continue using AU Small Finance Bank branches.
22 Will there be changes in FD & RD rates as well? Fincare Small Finance Bank rates are higher than AU Small Finance Bank. Rates as defined by merged entity shall apply. Your existing FD and RD Shall continue with the existing interest rates only.
23 For customers having a Fincare Small Finance Bank account along with AU Small Finance Bank, will the customer continue to earn monthly interest on Fincare account as well? Yes, your account with Fincare Small Finance Bank shall receive monthly interest after merger.
24 Will the Schedule of Charges (SOC) for the product and the locker charges remain the same as existing ones, or will they be revised? No there will not be any change in SOC. Any change in any SOC shall be duly communicated with due notice for change
25 Is there any limitation on transactions customers can do from a Fincare Small Finance Bank branch? Yes after a period of time you will be able to do all transactions at Fincare Small Finance Bank branches. We shall keep you posted on the progression of integration. However, at this point we would request you to continue using AU Small Finance Bank branches.
26 Can customer reset ATM PIN or make any other modifications from Fincare Small Finance Bank ATMs? At this point you shall be able to withdraw cash from Fincare Small Finance Bank ATM; however, for other services like PIN changes etc. we request you to visit AU Small Finance Bank's ATM currently.
27 Will there be any new service charges that will be levied on my account? No there will not be any new service charge applicable. Any change in any sevice charges shall be duly communicated with due notice for change.
28 Is there going to be a change in the Minimum balance requirements? No there will not be any change in existing AMB. Any change in any sevice charges shall be duly communicated with due notice for change.
29 Will my rate of interest for the loan remain the same or will it increase? No there will not be any change applicable. Any change in any sevice charges shall be duly communicated with due notice for change.
30 Can I have separate accounts with both the banks post-merger? Yes. Customer can have two accounts with bank post merger.
 

Amalgamation of Fincare SFB into AU SFB

 
Particulars
Shareholding Pattern-Post Amalgamation
Outcome of the Board Meeting_Effective Date for Amalgamation
Appointed date for Amalgamation
Board Approval for Scheme of Amalgamation
Analyst Meet Presentation
Notice of Extraordinary General Meeting
Scheme of Amalgamation
Valuation Report
Newspaper Publication for Extraordinary General Meeting- First Publication
Newspaper Publication for Extraordinary General Meeting- Second Publication
Newspaper Publication for Extraordinary General Meeting- Third Publication
Newspaper Publication for Extraordinary General Meeting- Fourth Publication
Shareholder’s Approval for Scheme of Amalgamation
Approval from Competition Commission of India
Approval from Reserve Bank of India
Disclosure of Record Date

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