MUMBAI: Merging with Fincare Small Finance Bank will help AU Small Finance Bank enter the micro lending segment and also ramp up the presence in southern India, a top official said on Monday. In a significant development in the small finance banking sector, Fincare is poised to amalgamate into AU Small Finance Bank (AU SFB), with the merger slated to take effect from February 1, 2024, subject to requisite approvals. AU SFB, in a late evening regulatory filing on Sunday, announced its approval of the amalgamation. Post the deal announcement, Fincare's Rs 625-crore initial public offering will be on the back burner, said Divya Sehgal, a nominee director on its board and added that the promoter of the entity will infuse Rs 700 crore into the bank before the merger.