Money & Banking

Federal Bank gets RBI nod to sell 45% Fedfina stake to True North

PTI New Delhi | Updated on October 08, 2018

Federal Bank on Monday said the Reserve Bank has approved the proposal to sell up to 45 per cent stake in NBFC arm Fedfina to private equity firm True North.

Earlier in May, the board of the private sector bank had approved 26 per cent strategic investment by True North in Fedbank Financial Services Ltd (Fedfina).

“True North can further acquire additional equity shares of Fedbank Financial Services Ltd, constituting up to 45 per cent of the share capital in the company,” Federal Bank said in a regulatory filing. The lender said that Reserve Bank earlier last week gave approval for the proposed transactions.

Fedfina is a 100 per cent fully owned subsidiary of the bank.

FedFina is engaged in providing loans to individual and corporate borrowers, against the security of assets like gold and real estate property, for meeting personal and business expense and investment needs.

Published on October 08, 2018

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