TA associates

The merger creates a pan-Indian retail banking franchise focused on financial inclusion

April 18, 2024 – TA Associates (“TA”), a leading global private equity firm, is pleased to announce that Fincare Small Finance Bank Limited (“Fincare SFB”) has merged with and into AU Small Finance Bank Limited (“AU SFB”), effective 1st April 2024. The merger marks a significant milestone for Fincare SFB and the Indian banking sector, creating a pan-Indian retail banking franchise committed to promoting financial inclusion. TA first partnered with Fincare in 2017 and will remain a shareholder in the combined AU SFB group.

Fincare SFB caters to the banking needs of micro enterprises enabling their financial inclusion, while also providing innovative banking services along with digital solutions to metro and urban customers across Southern and Western India. AU SFB is the largest Small Finance Bank in India and is a Fortune India 500 company. Following the transaction, the combined entity will serve more than 10 million customers, with over 43,500 employees and a network of over 2,350 physical touchpoints across 25 states and union territories.

In addition to expanding resources and geographic reach, the merger will significantly strengthen and diversify the combined entity’s product portfolio. Post-merger, all 5.9 million customers of Fincare SFB will be able to experience and enjoy the best-in-class digital services and flagship products of AU SFB including its offerings like credit cards, QR code and video banking. Additionally, Fincare SFB’s rural, inclusion-focused microfinance, mortgages and gold loan businesses will bolster AU SFB’s financial inclusion charter.

“Over the last seven years, we have supported the Fincare SFB team as they have successfully scaled and delivered on their mission of providing rural and semi-urban communities with essential financial services,” said Dhiraj Poddar, Managing Director and India Country Head at TA. “This transformative merger with AU SFB, which has a complementary geographic footprint, product portfolio and importantly, a shared ambition to redefine banking excellence in India, marks an exciting new chapter for the business. We look forward to supporting the combined group as it continues to create a more inclusive banking ecosystem.”

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.

“This is a defining milestone in our journey towards facilitating financial inclusion in India,” added Mr. Rajeev Yadav. “By joining with AU SFB’s strong franchise, we are confident in building a world-class bank with a robust balance sheet and a truly national franchise.”

About TA
TA is a leading global private equity firm focused on scaling growth in profitable companies. Since 1968, TA has invested in more than 560 companies across its five target industries—technology, healthcare, financial services, consumer and business services. Leveraging its deep industry expertise and strategic resources, TA collaborates with management teams worldwide to help high-quality companies deliver lasting value. The firm has raised $65 billion in capital to date and has over 150 investment professionals across offices in Boston, Menlo Park, Austin, London, Mumbai and Hong Kong. More information about TA can be found at www.ta.com.

About AU Small Finance Bank
AU Small Finance Bank Limited (AU SFB) is a scheduled commercial bank and has established itself as the largest SFB in India since starting its banking journey in April 2017. Established in 1996 by Mr. Sanjay Agarwal, a first-generation entrepreneur, AU SFB boasts of a 28 years-legacy with deep understanding of the rural and semi-urban markets and customer segments. The Bank operates a sustainable business model that facilitates credit to the unserved and underserved retail and MSME customer segments while providing complete banking solutions to its deposit and branch banking customers. As a tech-led Bank, AU has a strong digital presence with innovative products and services like 24×7 video banking, credit card, personal loan, UPI QRs, payments, merchant lending, WhatsApp Banking, Chatbot etc. and its digital bank application AU0101 remains among the highest rated banking apps in India.

The Bank operates from 1,049 banking touchpoints across 21 States & 3 Union Territories serving 46.8 Lac customers with an employee base of 28,904 employees. As on 31st Dec’23, the Bank has a net worth of ₹12,167 Crore, deposit base of ₹80,120 Crore, Gross Advance of ₹67,624 Crore and a Balance sheet size of ₹1,01,176 Crore. AU SFB enjoys the trust of marquee investors and is listed at both NSE and BSE. It has consistently maintained high external credit Rating and is presently rated ‘AA/Stable’ by CRISIL, CARE Ratings and India Ratings, while the Bank’s FD is rated ‘AA+/Stable’ from CRISIL Ratings. For more information, please visit the company’s website at www.aubank.in.

About Fincare Small Finance Bank
Fincare Small Finance Bank is a ‘digital-first’ small finance bank offering banking services through banking outlets, ATM, WhatsApp, Video Banking, Mobile Banking, Internet Banking and website Chatbots. The bank aims to transform banking through automated processes, instant account opening, and seamless transactions. Powered by technology, on one hand, Fincare Small Finance Bank caters to the banking needs of micro enterprises enabling their financial inclusion, and on the other, provides innovative banking services along with digital solutions to metro and urban customers. The Bank offer a comprehensive suite of financial products and services, ranging from savings account, fixed deposit, loans as well as digital banking solutions, designed to simplify banking and enhance convenience for customers.

Fincare Small Finance Bank commenced banking operations on 21st July 2017 under Section 22 of the Banking Regulation Act, 1949. It was included in the Second Schedule to the RBI Act, 1934 published in the Gazette of India dated April 13, 2019. As of December 31, 2023, Fincare Small Finance Bank’s Gross Loan Portfolio amounted to ₹13,352 Crore, while Deposits reached ₹9,734 Crore. The Bank efficiently caters to a customer base exceeding 59 Lakhs+, supported by a robust team of over 14,800 dedicated employees. With a widespread presence, the Bank boasts 1,303 touch points strategically located across 20 states and 3 Union Territories.

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