New Delhi: Federal Bank on Monday said the Reserve Bank of India has approved proposal to sell up to 45 per cent stake in NBFC arm Fedfina to private equity firm True North. Earlier in May, the bank’s board had approved 26 per cent strategic investment by True North in Fedbank Financial Services (Fedfina).
“True North can further acquire additional equity shares of Fedbank Financial Services, constituting up to 45 per cent of the share capital in the company,” it said, adding RBI last week gave approval for the proposed transactions. Fedfina is a 100 per cent fully owned arm 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.
