Fincare Small Finance Bank to merge with AU Small Finance Bank

[Deleted member 11974]

yes, i was using the term freely.

you were talking in case of black swan event. normally most banks are saved by rbi, but in those scenarios it won't be the case.

wasnt yes bank bailed out
it was a black swan event in the middle of a black swan event

I think he extended the meaning of bailout. Bailout specifically means spending taxpayer money. RBI is one of the best regulators when it comes to their ability to reduce exposure to taxpayers. PMC got bailed out by another bank, cuz when you get a banking license you agree to the terms of RBI, one of them is to bailout a fellow bank if and when the need arises. RBI takes note of these, for eg DBS has got a lot of goodwill after their help in bailing out LVB.

yes bank being bailed out by sbi
where at 1 bonds were wrote off
credit suisee where at 1 bonds where written off
60 billion balance sheet sold for 3 billion
and the insurer insuring all deposits means the taxpayers money being used as bailout

and are still doing the same

it will continue to do so
to afford paying its interest on its debt

 

[quino]

soooo, for fds in fincare, what will happen to their roi? since it's different from au's roi

 

[dvader]

soooo, for fds in fincare, what will happen to their roi? since it's different from au's roi

Well fincare's rates will dilute no matter how you put it. Existing FD's will continue untill maturity ofc.

 

[quino]

Well fincare's rates will dilute no matter how you put it. Existing FD's will continue untill maturity ofc.

i know they will continue. but at whose rates fincare's or au's?

 

[AritraSaha]

i know they will continue. but at whose rates fincare's or au's?

At fincare rate.. its fixed deposit.

 

[Deleted member 11974]

as of now until matury it will be fincare
after that they wont let you renew and will offer au rates

 

[quino]

as of now until matury it will be fincare
after that they wont let you renew and will offer au rates

maturity is in 2025. we don't know whether au will honor fincare's rates.

 

[Deleted member 11974]

au will have to honour fincare rates till merger

 

[Lobogris]

Anyone have fincare small finance Bank account?? 😂Heard this name first time

Yes. For several years. I keep good amounts in FDs and their savings account.

 

[Lobogris]

maturity is in 2025. we don't know whether au will honor fincare's rates.

You will get the rate that was promised when the deposit was made.

 

[Lobogris]

Sfb can become proper bank eith rbi approval..

Maybe au will to that & get more branch in this way..

They have already requested RBI to be able to remove small finance from their name.

 

[Deleted member 11974]

name se nahi hota sfb se commercial bank ka liscnecse lena padta hai

 

[quino]

You will get the rate that was promised when the deposit was made.

ideally yes, but until that's written down as part of the agreement b/w the banks, it's in limbo.

 

[Lobogris]

ideally yes, but until that's written down as part of the agreement b/w the banks, it's in limbo.

No limbo. It is an agreed upon contract between Fincare and the depositors. Anyone purchasing it has absolutely got to honour that contract. There is absolutely no question about it. All assests and liabilities are passed on to the buyer.

 

[Lobogris]

name se nahi hota sfb se commercial bank ka liscnecse lena padta hai

They already have that license.

 

[Deleted member 11974]

they have sfb liscencse
sfb and commercial are two different

 

[dvader]

They HAVE to honor the contract. People will eat both AU and Fincare in court if Fincare/AU fail to keep good on deposits. There is no limbo, bank mergers and aqus are under RBI regulation. They HAVE to honor it by law unless they go bankrupt 🤣.

But as I said the Fincare rates will be a bit diluted that is all. Ujjivan is next best in terms of interest rates.

 

[RAMESH BABU N]

RBI Approves Merger Of Fincare SFB With AU Small Finance Bank

Read more at: https://www.ndtvprofit.com/business...au-small-finance-bank#pfrom=home-ndtv_bqprime
Copyright © NDTV Profit

The merger is now from APRIL 01, 2024.

 

[doraemon]

RBI Approves Merger Of Fincare SFB With AU Small Finance Bank

Read more at: https://www.ndtvprofit.com/business...au-small-finance-bank#pfrom=home-ndtv_bqprime
Copyright © NDTV Profit

The merger is now from APRIL 01, 2024.

Sir I have accounts in both theses banks
So that means after 1 April I will be having two AU accounts?

 

[RAMESH BABU N]

Sir I have accounts in both theses banks
So that means after 1 April I will be having two AU accounts?

YES. AUB might undertake a consolidation of CIF numbers (and, therefore the related accounts) in due course.