Federal Bank has received the Reserve Bank of India’s approval for the proposed sale of up to 45% of its holding in NBFC firm Fedfina to private equity firm True North. The bank’s board had earlier approved a 26% strategic investment by True North in Fedfina. The bank said in a regulatory filing that True North can further acquire additional equity shares of Fedfina constituting up to 45% of the share capital in the company following RBI’s approval for the proposed transactions. Fedfina now is a 100% fully owned subsidiary of the bank, engaged in providing loans to individual and corporate borrowers, against the security of assets like gold and real estate property.
