Tag: Mr. Uttam Tibrewal

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AU Small Finance Bank and Fincare SFB merger effective April 1, 2024, marking the completion of the first M&A among Small Finance Banks

Apr 2, 2024 by Sujata Muguda 0 Comments #2024, #AU SFB, #AU Small Finance Bank, #Competition Commission of India, #engaluru, #Fincare SFB merger effective April 1, #India’s largest SFB, #Indian Merger and Acquisition, #Mr. Rajeev Yadav, #Mr. Uttam Tibrewal, #SFBB, #Small Finance Banks

Bengaluru, April 2, 2024: By the Reserve Bank India (RBI) approval dated March 4, 2024,
AU Small Finance Bank (AU SFB), India’s largest SFB, announced the amalgamation of Fincare Small Finance Bank (Fincare SFB) with and into AU SFB, effective today. This merger helps AU SFB to establish a robust pan-India retail banking franchise by leveraging complementary geographic footprints, and diverse customer segments with a wider product offering and digital capabilities.

In an all-stock merger deal first announced on October 29, 2023, where the shareholders of Fincare SFB received 579 equity shares in AU SFB for every 2,000 equity shares held in Fincare SFB, the merger received final approval from RBI on March 4, 2024, with effective date of April 1, 2024. Earlier on January 23, 2024, the Competition Commission of India (“CCI”) granted its approval for the merger under the provisions of Section 31(1) of the Competition Act, 2002.

This is among the fastest merger approvals in the Indian Merger and Acquisition (M&A) space, with all approvals received within 4.5 months. With this, AU SFB becomes a formidable banking franchise with a combined base of 1 crore+ customers, 43,500+ employees, and a network of 2,350+ physical touchpoints across 25 states and union territories, having a deposit base and balance sheet size (all numbers are as on December 31, 2023, on proforma basis).

The focus now shifts to ensuring a smooth and seamless integration within the next 9-12 months and delivering exceptional banking services and value to the customers.

As part of this merger, Mr. Rajeev Yadav, former MD & CEO of Fincare SFB, has been designated as the Deputy CEO of AU SFB and shall continue to lead all key asset businesses of Fincare SFB, now housed within the Fincare Unit at AU SFB. AU SFB recently consolidated its operations into five business groups and ‘Fincare Unit’ shall become its 6th business group. Additionally, Mr. Uttam Tibrewal, Executive Director at AU SFB, has been elevated to Deputy CEO and Executive Director, of AU SFB.

Post-merger, all 59 lakh plus customers of Fincare SFB will be able to experience and enjoy the best-in-class digital services and flagship products (both assets & liabilities) of AU SFB including its offerings like credit cards, QR code, video banking, and AU0101.

To ensure a seamless transition and minimal customer disruption due to the merger, both tech-led banks with strong customer orientation have established a dedicated task force and equipped their call centers to answer all customer queries.

The merger is also expected to provide AU SFB with enhanced access to South India, significantly expanding its distribution network. This increased presence will facilitate the distribution of the bank’s diverse range of products and services to a wider customer base, strengthening its market position in the region.

Commenting on this transformative merger, Mr. Sanjay Agarwal, Founder, MD & CEO of AU Small Finance Bank, remarked, “Today marks a significant milestone in our journey of building a ‘Forever Bank’ and I take this opportunity to welcome the customers, shareholders, and employees of Fincare to AU family. This merger represents not just the amalgamation of two entities, but the convergence of our shared vision to redefine banking excellence in India. I would like to thank the Government of India and the Reserve Bank of India and all other regulatory authorities for their blessings and expeditious approval process. With this integration, I assure them of building a well-governed, always compliant and a stronger retail banking franchise that will, over the coming decades, contribute to the growing India story. This merger underscores our commitment to financial inclusion and with our combined strength, we can serve all segments of customers, including low-income households, HNIs as well as MSMEs, through physical and digital channels both, offering a holistic bouquet of products, including cross-border business that will get launched soon under the Authorized Dealer – Category I license (AD Cat-I)”.

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Business World

AU Small Finance Bank witnesses 30% increase in consumer spends during the AU Shopping Dhamaka

Oct 26, 2020 by Gouri Achary 0 Comments #AU Shopping Dhamaka, #AU Small Finance Bank, #Mr. Uttam Tibrewal

AU Small Finance Bank (AU Bank), a Scheduled Commercial Bank and one of the leading Small Finance Banks in the country, is offering over 1000 exciting deals in partnership with brands such as Myntra, Zomato, BigBasket, Goffers and 400+ hyper-local merchants during the ongoing second edition of ‘AU Shopping Dhamaka’.

It was the first Small Finance Bank to partner with Amazon and run a ten-day exclusive offer for its customers to mark the beginning of festive shopping, which led to a jump of 300% in spends by AU Bank customers on the marketplace. AU Bank has offered its customers an opportunity to save 10% to 25% on shopping across categories. The Bank is already witnessing a bounce back in spending to pre-COVID levels.

This year, AU Shopping Dhamaka has been significantly scaled up with extended merchant base, lucrative deals on debit cards, cashback on UPI P2M transactions, assured gift vouchers worth Rs.1,500/- (from brands like Lakme Salon, Cure.fit, Storytel & Coolwinks) as welcome gifts, flat cashback on first debit card swipe and much more. The festive offer also includes credit offerings such as 100% waiver on valuation charges for Gold Loan and attractive interest rates on car and home loans.

Speaking on the occasion, Mr. Uttam Tibrewal, Executive Director, AU Small Finance Bank, said “Domestic spends will play a critical role in the revival of the economy and we are experiencing a gradual resumption of spending patterns that were prevalent in the pre-COVID period. The festive season is expected to give a massive impetus to the recovery and we wanted to ensure that we are creating a win-win situation for the consumers as well as our partners.

Taking our “Customer Centric” philosophy ahead, our second edition of Shopping Dhamaka is designed to be more comprehensive, sweetening the deal across categories that include daily requirements and not just seasonal shopping. In these uncertain times, our customers can at least be certain about receiving the best offers and maximum returns on their spends. We are already receiving an upbeat response to the offers and expect them to further motivate spending during the festive season”

AU Bank is experiencing an increase of 23% in per day debit card spends. Overall PoS and e-commerce transactions witnessed a surge of 16% since the launch of the festive offers. Point of Sale transactions have been slightly higher than e-commerce sales with 53% and 47% respectively. This trend has been witnessed across urban and core markets, which could be attributed to the recent relaxation of lockdown rules.

In addition to offering industry-leading interest rates of up to 7% on Saving Accounts, AU Bank customers are offered exciting deals across products all year round. The Bank is focused towards not only offering the best banking products but also serving them in a digitally enabled ecosystem that is inclusive, convenient and secure.