ICRA

Net profit of Fincare Small Finance Bank rose 227.35% to Rs 88.94 crore in the quarter ended December 2023 as against Rs 27.17 crore during the previous quarter ended December 2022. Total Operating Income rose 62.05% to Rs 708.63 crore in the quarter ended December 2023 as against Rs 437.29 crore during the previous quarter ended December 2022.

Fincare Small Finance Bank standalone net profit rises 227.35% in the December 2023 quarter

AU Small Finance Bank (AU SFB) on Monday amalgamated Fincare Small Finance Bank (Fincare SFB), marking the first such consolidation in the sector. In an all-stock merger deal first announced on October 29, 2023, where the shareholders of Fincare SFB received 579 equity shares in AU SFB for every 2,000 equity shares held in Fincare SFB, the merger received final approval from RBI on March 4, 2024, with the effective date of April 1, 2024.

Fincare merges with AU Small Finance Bank

Compared to established banks, Fincare have a relatively limited branch network, especially in urban areas. This could be a challenge for customers seeking widespread accessibility.

Finance primarily focus on basic banking services and may have a restricted range of products compared to larger banks. They may not offer certain specialized services available in full-service banks.

Fincare target underserved segments of the population and small businesses, they may face higher credit risks. The default rates on loans could be relatively higher, affecting the bank's financial stability.

Fincare is more vulnerable to market fluctuations and economic downturns due to their limited scale and customer base. They may face challenges in maintaining profitability during adverse market conditions.

Fincare lag behind in terms of technological advancements and digital infrastructure compared to larger banks. This can impact the efficiency and convenience of banking services for customers.

The issuer has made timely interest payments.

Mr.Rajiv Yadav, MD and CEO

Fincare aim to provide financial services to the unbanked and underbanked population, promoting financial inclusion in rural and semi-urban areas.

Fincare often offer higher interest rates on deposits compared to traditional banks. This can be advantageous for individuals looking for higher returns on their savings.

Fincare provide personalized services and cater to the specific needs of their customers, especially those from low-income groups. They may offer small-ticket loans, microloans, and other customized financial products.

Fincare focus on lending to small and micro-enterprises, enabling entrepreneurship and economic growth at the grassroots level.

Fincare is regulated by the Reserve Bank of India (RBI), which helps ensure compliance with banking regulations, safeguards customer interests, and enhances the stability of the banking system.

10.75%Fincare Small Finance Bank Limited 15 Dec 2028

ISIN:

INE519Q08160

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*All Interest Payments will be subject to TDS (Not Applicable on Government Securities and Tax Free Bonds)

YOUR RISK

A +

ICRA

Subordinated Tier 2

Unsecured

ISSUER

Fincare Small Finance Bank Limited

Recent News

Fincare Small Finance Bank standalone net profit rises 227.35% in the December 2023 quarter

Fincare merges with AU Small Finance Bank

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as on Jul 30, 2024

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