Mumbai : The board of Federal Bank has approved a 26 per cent strategic investment by private equity player True North in its wholly owned subsidiary, FedBank Financial Services (FedFina) subject to statutory and regulatory approvals.
The investment will help FedFina augment capital base to support its asset business and grow branch network. It will help improve its financial fundamentals by strengthening capital adequacy and diversifying its funding sources.
Shyam Srinivasan, MD & CEO, Federal Bank, said, “We are happy to welcome True North on board. We consider this investment by True North an endorsement of the business outlook and capabilities of FedFina.”
