Reserve Bank Approves Proposal to Sell Up To 45 Per Cent Stake in NBFC Arm

October 9, 2018

On Monday, the Federal Bank stated that the Reserve Bank of India has given approval to the proposal to sell up to 45 per cent stake in NBFC arm Fedfina to private equity firm True North.

In this year, in May, the board of the private sector bank had approved 26 per cent strategic investment by True North in Fedbank Financial Services Ltd.

The Federal bank stated that the 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.

Bank also said that the Reserve Bank earlier last week gave approval for the proposed transactions.

Fedfina is a 100 per cent fully owned subsidiary of the bank. It 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, Gujarat and Maharashtra.

On BSE, the Federal Bank stock closed 2.78 per cent up at Rs 70.20.
 

About nehanchal

I am Nehanchal. 3 years ago, I started my career as content writer at Money classic Research. I am fascinated with this job and I feel habit of reading and writing enhances your skills. I love to write technical and health blogs. However, I am engineer turned writer and pursued graduation at Rajiv Gandhi Prodyogiki Vishwavidhyalaya.
By: nehanchal

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