Fincare merges with AU Small Finance Bank

Current Context: AU Small Finance Bank (AU SFB), the largest Small Finance Bank (SFB) in India, has announced the merger with Fincare Small Finance Bank (Fincare SFB) effective from April 1, 2024.

• This merger is in line with the approval from the Reserve Bank of India (RBI) dated March 4, 2024.
• The merger aims to establish a robust pan-India retail banking franchise by leveraging complementary geographic footprints and product offerings.
• Post-merger, Fincare’s 59 lakh plus customers will be able to experience and enjoy the best technological services and flagship products (both assets & liabilities) of AU SFB.
• The consolidation strengthens the customer base and enhances the distribution network, focusing on seamless integration and exceptional customer service post-merger.
• This strategic move is designed to harness the synergies and complementarity of both banks, creating a stronger, more customer-centric institution.
• The merger also allows AU SFB to gain access to South India.
• The focus is to ensure a smooth and seamless integration within the next 9-12 months and deliver exceptional banking services and value to the customers.
• By March 2025, the merger aims for full integration, combining the strengths of both entities to create a more robust and efficient organization.

Question:

Q.1 What is the main aim of the merger between AU SFB and Fincare SFB?
a. To establish a robust pan-India retail banking franchise
b. To gain access to South India
c. To enhance the distribution network
d. All of the above