INSUBCONTINENT EXCLUSIVE:
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 company’s 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 Company’s track-record and explosive growth is a testament to the FedFina’s leadership team
Our investment in FedFina is a reiteration of our renewed sector focused investment strategy.
