Fincare Small Finance Bank to merge with AU Small Finance Bank

[Strange]

Fincare Small Finance Bank (Fincare SFB) is set to merge with AU Small Finance Bank (AU SFB) from February 1, 2024. The merger is subject to all necessary approvals. In a regulatory filing released late in the evening, AU SFB announced its approval of the amalgamation. As per the terms of the merger, shareholders of Fincare SFB will receive 579 shares in AU SFB for every 2,000 shares they hold in Fincare SFB. Following the transaction, it is expected that existing shareholders of Fincare SFB will maintain approximately 9.9% ownership in AU SFB.

The completion of this transaction is subject to several critical conditions, including approval from the shareholders of both Fincare SFB and AU SFB, regulatory endorsements from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI), and a capital infusion of Rs. 700 crores by the promoters of Fincare SFB.

AU SFB has confirmed that all employees of Fincare SFB will be included in the AU SFB family after the merger.

As part of this strategic merger, the Managing Director & CEO of Fincare SFB will become the Deputy CEO of AU SFB after the merger. Additionally, Divya Sehgal, a current director on Fincare SFB's board, will join AU SFB's board, further strengthening the leadership team.

Fincare Small Finance Bank, a digitally enabled small finance bank, offers a broad range of deposit and asset solutions to its customers, with a total customer base of approximately 54 lakh.

It has a strong presence in South India, with 14,867 employees, and a focus on microfinance loans, with 93.6% of its loans being directed towards rural areas. The bank's total deposits are reported to be Rs 9.453 crore, with 79% of deposits being retail, and gross advances amounting to Rs 10.541 crore.

It has 1,292 banking branches in 23 states and Union territories and is expected to have a total branch count of 2,334 by the completion of the merger. The merged entity is expected to serve approximately 98 lakh customers and employ around 43,000 people by the end of September 2023, with a combined balance sheet size of more than Rs 1,1 lakh crores.

The merger between AU SFB has a multifaceted strategic rationale, with the management highlighting the complementary branch footprint that will establish a Small Finance Bank across India. The portfolio diversification, especially through access to rural and financial inclusion-focused microfinance businesses, is regarded as a significant advantage.

This merger presents significant opportunities to expand the deposit and asset franchise, particularly in South India.

Source

 

[RAMESH BABU N]

This Small bank will continue to be a small bank. Despite the merger.

To avoid such hiccups, we NEVER deal with such small banks.

 

[Strange]

Then I believe they might have just started the process.
As per them, we can continue using our account until March'25 post which one needs to open a fresh account in AU SFB.
I don't understand what kind of migration is this where we have to open a new account.
View attachment 75109

WTF! AU is really out of this world!

@deep@vie . .

 

[BVCBVC is verified member.]

Then I believe they might have just started the process.
As per them, we can continue using our account until March'25 post which one needs to open a fresh account in AU SFB.
I don't understand what kind of migration is this where we have to open a new account.
View attachment 75109

Strange to see this kind of migration. Opening new account on migration is too bad.

 

[ashwinkashwink is verified member.]

Strange to see this kind of migration. Opening new account on migration is too bad.

I will ignore opening new account if it is true 😶‍🌫️🤐😑

 

[BVCBVC is verified member.]

I will ignore opening new account if it is true 😶‍🌫️🤐😑

I am having Fincare SFB in my place and waiting for AU merger to get AU Credit card. Looking at this I will give a thought.

 

[Reaper]

This doesn't end here.
Those who have opened a Fixed Deposit with Fincare should either open an account in AU SFB and update the new account details in FD or should update alternate bank details for interest and maturity payments.


The interesting part is that Fincare user database is now shared with AU and since "AU Digital Savings Account" is only for new customers, looks like it will not allow us to open zero balance savings account with AU SFB.

I am wondering what has been migrated, from a customer standpoint I don't see anything getting migrated.

 

[Lobogris]

I haven't received any such email or call. I have savings accounts with both Fincare and AU and also have a decent amount of fixed deposits with Fincare.

 

[Saiv]

if complaints flooded at Rbi ombudsman then this will be a crazy story. What’s the point of mergers if customers have to open new acc with the final bank. Never seen this. I personally experienced one of the mergers all i’ve to do is visit the final bank & get new passbook with updated ifsc code that’s all.

 

[ashwinkashwink is verified member.]

if complaints flooded at Rbi ombudsman then this will be a crazy story. What’s the point of mergers if customers have to open new acc with the final bank. Never seen this. I personally experienced one of the mergers all i’ve to do is visit the final bank & get new passbook with updated ifsc code that’s all.

Yup it's a really heptic 🤐

 

[Lobogris]

if complaints flooded at Rbi ombudsman then this will be a crazy story. What’s the point of mergers if customers have to open new acc with the final bank. Never seen this. I personally experienced one of the mergers all i’ve to do is visit the final bank & get new passbook with updated ifsc code that’s all.

I don't think you need to open a new account.

 

[Rama Gurubaran]

@Reaper I'm interested to know what you wrote to them first 🙂

 

[Reaper]

I haven't received any such email or call. I have savings accounts with both Fincare and AU and also have a decent amount of fixed deposits with Fincare.

If we consider Fincare's response, then you should be safe. All you need to do is update your AU Bank details in Fincare FDs. Or maybe these guys will figure it out gradually (as now Fincare and AU share the same customer database) and request you to link both accounts.

I don't think you need to open a new account.

I desperately want this to be true; otherwise, I will have to close my account (I am not eligible to open AU Digital 0 balance savings account, since this is only for new customers and now AU & Fincare databases are merged, I am not eligible to open this 0 balance account).
I purposefully opened the account in Fincare since I needed a 0 balance account for my daily UPI transactions. Also, opening an FD helped me with their attractive interest rate, which further upgraded my debit card to "RuPay Platinum," that too without paying any annual charges.

LTF RuPay Platinum debit card + 9% FD interest + 0 balance account + no hidden charges --> What else do you need in a savings bank account 🙂

@Reaper I'm interested to know what you wrote to them first 🙂

Sure, I have attached my email conversation with them.
Feel free to spot if I have missed anything.

 

[Chhota_don]

I am having Fincare SFB in my place and waiting for AU merger to get AU Credit card. Looking at this I will give a thought.

Same situation kya hoga kab hoga any idea

 

[BVCBVC is verified member.]

Same situation kya hoga kab hoga any idea

As per my understanding and discussion on thread migration will be completed by March 2025. So we have to wait till then.

 

[Rama Gurubaran]

If we consider Fincare's response, then you should be safe. All you need to do is update your AU Bank details in Fincare FDs. Or maybe these guys will figure it out gradually (as now Fincare and AU share the same customer database) and request you to link both accounts.


I desperately want this to be true; otherwise, I will have to close my account (I am not eligible to open AU Digital 0 balance savings account, since this is only for new customers and now AU & Fincare databases are merged, I am not eligible to open this 0 balance account).
I purposefully opened the account in Fincare since I needed a 0 balance account for my daily UPI transactions. Also, opening an FD helped me with their attractive interest rate, which further upgraded my debit card to "RuPay Platinum," that too without paying any annual charges.

LTF RuPay Platinum debit card + 9% FD interest + 0 balance account + no hidden charges --> What else do you need in a savings bank account 🙂


Sure, I have attached my email conversation with them.
Feel free to spot if I have missed anything.

I feel since you were urging them to switch, they are milking this opportunity to open a new account. Let's wait until they issue a communication on this regard. I have accounts in both the banks and definitely don't want to do any manual switch here.

 

[ashwinkashwink is verified member.]

With Fincare Small Finance Bank merging into AU Small Finance Bank, we are migrating systems towards payment channels for your existing Fincare Accounts.

For uninterrupted payment services, kindly follow the simple steps given below:

UPI Transaction:​

• Your existing Fincare Account linked to your current UPI ID will be removed w.e.f. 23/12/2024.
• You will need to re-register/re-link your existing Fincare Account to your current UPI ID on all UPI Apps that you currently use to continue making & receiving payments.
• Please complete the re-registration/re-linking 23/12/2024 onwards on your UPI payment Apps like GooglePay, PhonePe, Paytm etc., to continue making and receiving payments via UPI.

Here are the steps:

1. Select the option to “Add Bank Account” in the payment platform app.
2. Choose AU Small Finance Bank from the list of supported banks.
3. The app will fetch your account details linked with the phone number. Select the specific account you wish to link.
4. Enter your Fincare debit card number, expiry date.
5. Set a 4-digit UPI PIN for secure transactions when you get a prompt.
6. Select AU Small Finance Bank as your primary UPI Account after your Account is verified.

Important Note:

You will need to re-authenticate all your Standing Instructions connected to this UPI ID to avoid any disruption to recurring payments.

For re-authentication, visit Autopay section in your profile on Google Pay, or Automatic Payments section in your profile on Paytm, or AutoPay section in your profile in PhonePe or Autopay section in your profile in your relevant UPI Payment Apps.

UPI Lite Account

Please note that UPI Lite wallet linked to your Fincare Account will be deactivated on 21/12/2024. Current Funds will be transferred to your Fincare Account.

Kindly create your new UPI Lite wallet after 23/12/2024.

Fund Transfer (IFSC Code):​

• Your existing Fincare Account IFSC Code will be INACTIVE w.e.f. 18/01/2025.
• Your NEW IFSC Code for your existing Fincare Account is AUBL000FNCR.
  In case of any failure, you may use AUBL0002011 as IFSC Code for your existing Fincare Account.
• Please share this IFSC Code along with your existing Fincare Account number, and your name to your contacts who shall be transferring funds into your existing Fincare Account.
  Kindly note: They will need to add your account in their Mobile Banking Apps/NetBanking again with the NEW IFSC code to continue making payments to your existing Fincare Account.
• The Bank to be selected with the new IFSC Code will be AU Small Finance Bank.
• Please note that cooling periods may apply as per respective banks after your account is added by your payee.
• Any payment attempted using your existing IFSC shall be rejected from 18/01/2025.
• The above change is only applicable to NEFT & RTGS fund transfers.

Online Shopping with NetBanking: (Example – Amazon, Myntra, Zomato etc.)​

1. Option to select Fincare NetBanking on Shopping Apps & Websites will be discontinued w.e.f. from 22/12/2024.
2. You will need to select “AU Small Finance Bank” NetBanking as option.
3. Once re-directed to AU 0101 NetBanking, select Fincare NetBanking and login through Fincare credentials

 

[quino]

does this mean all fincare customers now have AU cust ids & all fds are mapped to the new id?

 

[BVCBVC is verified member.]

Any update on credit cards issuance with merger branches?

 

[ashwinkashwink is verified member.]

does this mean all fincare customers now have AU cust ids & all fds are mapped to the new id?

Still not confirmed although My AU customer ID and Finance customer ID is not clubbed yet still both are separate and I'm not even able to access finance account in au app it's still working on Fincare app

 

[Shubham Yadav]

With Fincare Small Finance Bank merging into AU Small Finance Bank, we are migrating systems towards payment channels for your existing Fincare Accounts.

For uninterrupted payment services, kindly follow the simple steps given below:

UPI Transaction:​

• Your existing Fincare Account linked to your current UPI ID will be removed w.e.f. 23/12/2024.
• You will need to re-register/re-link your existing Fincare Account to your current UPI ID on all UPI Apps that you currently use to continue making & receiving payments.
• Please complete the re-registration/re-linking 23/12/2024 onwards on your UPI payment Apps like GooglePay, PhonePe, Paytm etc., to continue making and receiving payments via UPI.

Here are the steps:

1. Select the option to “Add Bank Account” in the payment platform app.
2. Choose AU Small Finance Bank from the list of supported banks.
3. The app will fetch your account details linked with the phone number. Select the specific account you wish to link.
4. Enter your Fincare debit card number, expiry date.
5. Set a 4-digit UPI PIN for secure transactions when you get a prompt.
6. Select AU Small Finance Bank as your primary UPI Account after your Account is verified.

Important Note:

You will need to re-authenticate all your Standing Instructions connected to this UPI ID to avoid any disruption to recurring payments.

For re-authentication, visit Autopay section in your profile on Google Pay, or Automatic Payments section in your profile on Paytm, or AutoPay section in your profile in PhonePe or Autopay section in your profile in your relevant UPI Payment Apps.

UPI Lite Account

Please note that UPI Lite wallet linked to your Fincare Account will be deactivated on 21/12/2024. Current Funds will be transferred to your Fincare Account.

Kindly create your new UPI Lite wallet after 23/12/2024.

Fund Transfer (IFSC Code):​

• Your existing Fincare Account IFSC Code will be INACTIVE w.e.f. 18/01/2025.
• Your NEW IFSC Code for your existing Fincare Account is AUBL000FNCR.
  In case of any failure, you may use AUBL0002011 as IFSC Code for your existing Fincare Account.
• Please share this IFSC Code along with your existing Fincare Account number, and your name to your contacts who shall be transferring funds into your existing Fincare Account.
  Kindly note: They will need to add your account in their Mobile Banking Apps/NetBanking again with the NEW IFSC code to continue making payments to your existing Fincare Account.
• The Bank to be selected with the new IFSC Code will be AU Small Finance Bank.
• Please note that cooling periods may apply as per respective banks after your account is added by your payee.
• Any payment attempted using your existing IFSC shall be rejected from 18/01/2025.
• The above change is only applicable to NEFT & RTGS fund transfers.

Online Shopping with NetBanking: (Example – Amazon, Myntra, Zomato etc.)​

1. Option to select Fincare NetBanking on Shopping Apps & Websites will be discontinued w.e.f. from 22/12/2024.
2. You will need to select “AU Small Finance Bank” NetBanking as option.
3. Once re-directed to AU 0101 NetBanking, select Fincare NetBanking and login through Fincare credentials

I have both account au 101 or fincare 101 something like that

so whats are about to happen ?