The merger hinges on shareholder approval from both companies, regulatory consent from the RBI and India's competition regulator, and a capital infusion of ₹700 crore from Fincare's promoters.
Appointed date of merger: Feb 1, 2024, or mutually agreed & RBI approved.
SWAP Ratio - 579:2000(AU Small Finance Bank will issue 579 shares for every 2,000 Fincare shares)
Combined entity projected values post-merger
Post-merger, Fincare's existing shareholders will retain a 9.9% stake in AU Small Finance Bank.
AU Small Finance Bank highlights
Presence - 21 states & 3 union territories
Quarterly Net Profit grew by 17% (Y-o-Y), and net Interest Income grew by 15% (Y-o-Y)
Gross NPA stood at 1.91%
Net NPA rose to 0.66% from June 2023’s 0.55%
The net interest margin (NIM) stood at a 10-quarter low of 5.5% (projected 5.7% or 5.9% by the management)
Overall share growth of 6% in 2023
Fincare Small Finance Bank highlights as of 30th September, 2023
Presence in Andhra Pradesh, Telangana, Tamil Nadu and Karnataka.
Unlisted but Non-Convertible Debentures listed on the BSE.
Total assets- Rs 14,777 Cr, Turnover- Rs 1,360 Cr & Net Profit - Rs 219 Cr
Gross NPA- 1.52% & Net NPA - 0.77%
