Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code : MAA0231

Year : 2025

Industry : Steel Industry

Region : Asia

Teaching Note:Yes

Structured Assignment : Not Available

Abstract: Slice, a fintech company, obtained permission from the Reserve Bank of India (RBI), India’s central bank, to merge with North Eastern Small Finance Bank (NESFB). The fact that the regulator had allowed a fintech company to merge with a Small Finance Bank (SFB) came as a surprise to many. Slice was in the business of issuing prepaid credit cards with ‘limited credit’. It faced a sudden challenge or crisis when, in 2022, the RBI mandated that Slice could not issue prepaid credit cards. With its business model being rendered obsolete by the RBI decision, Slice found itself at a crossroads.

On the other side, NESFB was a Small Finance Bank (SFB) providing banking facilities to the north-eastern states of India and was facing challenges due to falling Capital Adequacy Ratio (CAR) and rising Gross Non-Performing Assets (GNPA). It was rare for a fintech company to buy a stake in SFB and was a new development in the banking and fintech space in India. The case highlights the merger of Slice and NESFB and provides the students enough opportunity to analyze the challenges and synergies arising out of the merger between an ambitious fintech company and a troubled SFB.