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Federal Bank is awaiting regulatory approval to pick up an additional 4 per cent stake in IDBI Federal Life Insurance Company Ltd (IFLI), according to MD & CEO Shyam Srinivasan.
Further, the Bank has no plans to dilute its stake in non-banking finance company (NBFC) subsidiary, Fedbank Financial Services Ltd (FedFina).
Srinivasan emphasised that when the Bank is seeking to increase stake in IFLI (an associate company), it will not want to dilute stake in another company (FedFina).
IFLI is a three-way joint venture of IDBI Bank (25 per cent stake), Belgium’s Ageas (49 per cent) and Federal Bank (26 per cent stake).
Srinivasan said down the line FedFina could go for an initial public offer (IPO). Federal Bank has a 74 per cent stake in the NBFC.
FedFina, which has a presence in 12 states via 360 branches, has a loan book of ₹4,337 crore. In the third quarter, the NBFC reported a 40 per cent year-on-year increase in net profit at ₹15 crore.
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