Fincare Small Finance Bank to merge with AU Small Finance Bank

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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.

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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