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RBI approves Federal Bank's proposal to sell 45% stake in NBFC arm Fedina

FedFina is engaged in providing loans to individual and corporate borrowers, against the security of assets like gold and real estate property

Federal Bank  |  Nbfc  |  Delhi

Press Trust of India  |  New Delhi 

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

Earlier in May, the board of the private sector 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," 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.

The operations of the company are in Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, West Bengal, Rajasthan, Delhi, and Maharashtra.

stock closed 2.78 per cent up at Rs 70.20 on BSE.

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First Published: Mon, October 08 2018. 16:05 IST