TA Associates announces the merger of Fincare Small Finance Bank with AU Small Finance Bank to create a pan-Indian retail banking franchise focused on financial inclusion.

Target Company Overview

Fincare Small Finance Bank Limited (Fincare SFB) has emerged as a key player in providing banking services to micro enterprises, fostering financial inclusion in India. With a digital-first approach, the bank offers a wide array of banking services, including savings accounts, fixed deposits, and loans, through various channels such as banking outlets, ATMs, and digital solutions like WhatsApp and Video Banking. As of December 31, 2023, Fincare SFB had a gross loan portfolio of ₹13,352 Crore and deposits totaling ₹9,734 Crore, serving over 5.9 million customers with a workforce of over 14,800 employees across a network of 1,303 touchpoints in 20 states and 3 union territories.

The recent merger of Fincare SFB with AU Small Finance Bank Limited (AU SFB), effective April 1, 2024, signifies a transformative step for both entities. This consolidation aims to create a pan-Indian retail banking franchise capable of delivering exceptional financial inclusion services, further enhancing Fincare's existing stronghold in microfinance and digital banking solutions.

Industry Overview in India

The Indian banking sector has undergone profound transformations over the past decade, especially with the introduction of Small Finance Banks (SFBs) designed to improve access to banking services for underserved populations. A significant focus has been placed on fostering f