Fincare Unlisted Shares

AU Small Finance Bank has acquired Fincare, a rapidly growing financial services company, effective from April 1, 2024. Established in 2017, Fincare has swiftly evolved into a significant player in the banking sector. Beginning as a small finance bank and later expanding into a full-fledged commercial bank, Fincare prioritizes financial inclusion, aiming to make banking services accessible to everyone. Guided by principles such as customer delight, ethical values, and technology-driven processes, Fincare focuses on delivering excellent service and building trust with customers across rural and urban areas.

History

The genesis of Fincare Small Finance Bank was the merging of two NBFC Micro Finance Institutions, Future Financial Services and Disha Microfin. In May 2017, Disha Microfin was granted the final license by the RBI under section 22 of the Banking Regulation Act, 1949, to initiate banking operations. Banking operations commenced on 21st July 2017, with a vision to facilitate the financial inclusion of unbanked and underbanked customer segments, including microentrepreneurs and microenterprises, along with broader masses, with active involvement from the affluent. In the first quarter of FY20, Fincare Small Finance Bank was included in the Second Schedule of the Reserve Bank of India Act, 1934. Consequently, the bank attained the status of a Scheduled Commercial Bank, signifying the highest level of trust and governance.

Empowering Principles

Fincare Small Finance Bank’s Values. The name FINCARE represents a set of guiding principles that shape the bank’s ethos and operations: Fair, Innovative, Nimble, Collaborative, Accountable, Resolute, and Excellent.

Fincare SFB: Business Model

Product & Services

Fincare and AU Merger Details

Regulatory Approval:

The merger received regulatory approval from the RBI on March 4, 2024, following endorsement from the boards and shareholders of both banks. Furthermore, the Competition Commission of India (CCI) sanctioned the merger scheme on January 23, 2024, underlining its compliance with regulatory requirements.

Impact and Statistics:

1. · Expanded Customer Base: The merged entity is poised to serve a diverse customer base exceeding 1 Crore individuals. This substantial increase in clientele signifies the enhanced reach and accessibility of banking services across various segments of the population.
2. · Widespread Presence: With a network spanning over 2,350 physical touchpoints across 25 states and union territories, the merged bank is primed to offer unparalleled convenience and accessibility to its customers nationwide.
3. · Financial Strength: As of December 31, 2023, the combined bank will boast a deposit base of ₹ 89,854 Crore and a Balance Sheet Size of ₹1,16,695 Crore, reaffirming its position as a significant player in the Indian banking landscape.

Key Strategic Rationale:

Complementary Branch Footprint:

Diversification of Portfolio:

Board of Directors

Financial Highlights

Product Mix

1. 93.47% of the bank’s customers originate from rural or low-income areas.
2. The Gross Loan Portfolio (GLP) expanded from ₹6,072 crores in FY21 to ₹9,911 crores in FY23, marking a CAGR of 27.76%.
3. The number of borrowers increased from 0.22 crores in FY21 to 0.34 crores in FY23, demonstrating a CAGR of 21.87%, which primarily drove the GLP growth.

SWOT Analysis

Key Milestone

Peer Comparison

₹ (in crores)- as of 31st March, 2022

Fincare SFB IPO 

Fincare Small Finance Bank was initially planning an IPO to raise Rs 625 crore. But following the completion of its merger with AU Small Finance Bank, Fincare Small Finance Bank, has opted to consolidate its operations with the already listed entity.

Fincare Small Finance Bank Annual Report 2022-2023

Fincare Small Finance Bank Annual Report 2020-2021

Fincare Small Finance Bank Annual Report 2019-2020

Fincare Small Finance Bank Annual Report 2018-2019