Federal Bank Receives RBI Nod for Private Equity Investment in Fedfina
Kochi: Fedbank Financial Services Limited (Fedfina), a wholly-owned subsidiary of Federal Bank, has entered into an agreement with Federal Bank Limited and leading, homegrown private equity player True North. As per the agreement, True North will subscribe to equity shares of Fedbank Financial Services Limited, constituting 26 per cent of the share capital in Fedfina. The agreement also allows True North to further acquire additional equity shares of Fedfina, constituting up to 45 per cent of the share capital in Fedfina. Further to this, Reserve Bank of India vide letter dated October 5, 2018 has given approval for the proposed transaction. The investment will help Fedfina augment its capital base primarily to support its growing asset business and grow its branch network. It will help further improve the company’s financial fundamentals by strengthening its capital adequacy and diversifying its funding sources.