MUMBAI: The Federal Bank board has approved 26% strategic investment by private equity player True North in its wholly owned subsidiary - FedBank Financial Services (FedFina), a move that will help the company to grow its loans.
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 companys financial fundamentals by strengthening its capital adequacy and diversifying its funding sources.Shyam Srinivasan, MD CEO, Federal Bank said, We consider this investment by True North an endorsement of the business outlook and capabilities of FedFina.
This transaction and the expertise that True North carries with them will turn out to be seminal in the growth and expansion of FedFina.
ICICI Securities Limited was the exclusive financial advisor to the Transaction.On the occasion, Divya Sehgal, Partner, True North said, The Companys track-record and explosive growth is a testament to the FedFinas leadership team.
Our investment in FedFina is a reiteration of our renewed sector focused investment strategy.