These two banks are going to merge, this will affect you
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Bank Merger: The country is going to merge two private banks. reserve Bank of India (Reserve Bank of India) on Monday AU Small Finance Bank (AU Small Finance Bank) and Fincare Small Finance Bank (Fincare Small Finance Bank) approved the merger deal worth US$ 530 million. The Reserve Bank said in a statement that the effective date of the merger will be April 1 this year and all branches of Fincare SFB will function as branches of AU SFB from that day. The two entities had announced the deal in late October 2023 and had targeted to complete it by February 2024 after receiving necessary approvals. Under the deal, shareholders of unlisted Fincare will get 579 shares of listed AU SFB for every 2,000 shares they hold.
Read Also: There is going to be a big change in digital payments, the Governor of Reserve Bank told this
What will be the impact on customers?
Financial expert Vinay Chaudhary says that there will be no direct impact on the customers of both the banks. After the merger of both the banks, the facilities available to them are likely to expand. Along with this, Fincare can change the IFSC code and check book of Small Finance Bank customers. However, no information has been given by the bank regarding this. In such a situation, customers should wait for the update from the bank. Vinay Choudhary said that a few years ago, the government had also merged many public sector banks. This did not cause any inconvenience to the customers.
what will be the change
According to media reports, some changes will be seen in the company also. After the merger of the two banks, the Managing Director and CEO of Fincare Small Finance Bank will be made the Deputy CEO of AU SFB. Additionally, Divya Sehgal, current Director on the Board of Fincare Bank, will join the Board of AU SFB. It is understood that after his joining the board, the team will get strength. After the deal gets the green signal from RBI and Competition Commission of India, the promoters of FSFB have also agreed to infuse fresh capital of Rs 700 crore into the entity.
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