Federal Bank intends to make a strategic investment in a microfinance company. Stating this, the bank’s MD and CO Shyam Srinivasan said the bank is also exploring opportunities in the asset management business. If the bank gets the right partner and right pricing, it would look at invesment options, he added. The bank is at the moment engaged in the process of divesting a 26% stake in its wholly-owned NBFC, Fedfina. A strategic investor will come on board following the divestment. Fedfina has a loan portfolio of Rs1250 crore and has operations in Tamil Nadu, Karnataka, Andhra Pradesh, West Bengal, Rajasthan, Gujarat and Maharashtra. It is in the business of SME-focused mortgage loans, gold loans and structured finance. It is likely to double its loan book to Rs 2500 crore over the next year, and will require close to Rs 200 crore worth capital for its growth, Srinivasan added.
