The Board of Directors of AU Small Finance Bank (AU SFB) Ltd and Fincare Small Finance Bank (Fincare SFB) Ltd late Sunday accepted an all-stock merger of AU SFB and Fincare SFB.
As per the deal, Fincare SFB shareholders will obtain 579 shares in AU SFB for two,000 shares of Fincare SFB. Post merger, current shareholders of Fincare SFB will maintain 9.9% in AU SFB.
All workers of Fincare SFB will turn out to be a part of the AU SFB.
According to phrases, Fincare Business Services Ltd (FBSL), promoter of Fincare SFB, will infuse ₹700 crore into Fincare SFB prior to the completion of the merger.
Rajeev Yadav, MD & CEO of Fincare SFB, shall be appointed Deputy CEO of AU SFB post-merger. He will report to Sanjay Agarwal, MD&CEO of AU SFB.
Mr. Yadav will proceed to lead the Fincare unit of AU SFB, which is able to home a lot of the companies of Fincare SFB. Additionally, he’ll collectively lead the IT & Digital unit of AU SFB with the MD & CEO of AU SFB, to guarantee clean IT integration post-merger.
In his new function, Mr Yadav shall be an invitee to Board conferences of AU SFB.
Divya Sehgal, nominee Director on Fincare SFB’s Board will be a part of the Board of AU SFB to guarantee clean integration and continuity post-merger.
Uttam Tibrewal, Executive Director at AU SFB at current, shall be elevated to Executive Director & Deputy CEO of AU SFB within the merged entity.
The merged entity can have greater than 98 lakh prospects, greater than 43,000 workers, and 2,334 touchpoints throughout 25 states and union territories.
Sanjay Agarwal, MD & CEO, AU SFB, in a press release stated, “ This is not just a merger of two entities, its a union of shared values, common goals, and a vision for the future. Rajeev and team are one of the most experienced and seasoned MFI teams in the country who have over the years, built the business ground up despite multiple challenges.”
Rajeev Yadav, MD & CEO, Fincare SFB, stated,“This merger is a defining milestone in our journey towards facilitating financial inclusion in India, and by joining hands with AU SFB’s strong franchise led by Sanjay and his team, we are confident of building a world-class bank with a robust balance sheet and a truly national franchise”.
