AU Small Finance Bank, an India-based non-deposit accepting non-banking financial company, is set to merge with Fincare. The bank offers a range of banking and financial services, including retail banking, wholesale banking, and treasury operations. The merger will bring together the two entities and expand their offerings to customers.
AU Small Finance Bank anticipates a 20-25% rise in asset base over three years, increasing the balance sheet to Rs.2 lakh crore by 2026-27. However, the bank reported weak performance in the December 2023 quarter, with net earnings missing estimates by 8.9% due to elevated credit costs, higher slippages, high cost-to-income ratio, and accelerated provisions. These factors have put pressure on the stock price performance. The integration concerns about the merger with Fincare Small Finance Bank have also affected the stock price.
Source: Economic Times
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