Federal Bank clears 26% investment by True North in FedFina

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Kochi | Published: May 15, 2018 3:55:51 AM

Federal Bank has approved a 26% strategic investment by leading private equity player True North in its wholly owned subsidiary, FedBank Financial Services Limited (FedFina) subject to statutory and regulatory approvals, bank sources said.

federal bank, federal bank growth, federal bank stockFedFina is an NBFC promoted by Federal Bank engaged in providing loans to individual and corporate borrowers, against the security of assets like gold and real estate property.

Federal Bank has approved a 26% strategic investment by leading private equity player True North in its wholly owned subsidiary, FedBank Financial Services Limited (FedFina) subject to statutory and regulatory approvals, bank sources said.

FedFina is an NBFC promoted by Federal Bank engaged in providing loans to individual and corporate borrowers, against the security of assets like gold and real estate property. The investment will help FedFina augment its capital base primarily to support its growing asset business and to grow its branch network. It will help further improve the company’s financial fundamentals by strengthening its capital adequacy and diversifying its funding sources, sources added in a press release.

Commenting on the investment, Shyam Srinivasan, MD & CEO, Federal Bank said, “We are happy to welcome True North onboard. We consider this investment by True North an endorsement of the business outlook and capabilities of FedFina.”

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