AU Small Finance Bank’s shares jumped over 3% on Wednesday after the bank announced that the Competition Commission of India (CCI) approved the merger of Fincare Small Finance Bank (SFB) into the former.
Shares of AU Small Finance Bank hit an intraday high of Rs 738.90, 3.12% higher than its previous closing price on the National Stock Exchange (NSE). The stock closed 2.81% higher at Rs 736.65.
According to an exchange filing dated January 23, AU Small Finance Bank announced that it has received approval from the CCI for the merger of Fincare Small Finance Bank Limited into AU Small Finance Bank Limited.
The board of directors of AU SFB and Fincare SFB approved the all-stock merger in October 2023. However, the scheme of amalgamation is still subject to approval from the Reserve Bank of India (RBI).
As per the scheme of amalgamation, Fincare Business Services, the promoter of Fincare SFB, will inject Rs 700 crore into the SFB before the merger is finalised.