Reported by: banking|Updated: May 14, 2018
PE firm True North will invest in FedFina, a wholly-owned subsidiary of Federal Bank. The investment will be around 26% of FedFina’s capital. The board of Federal Bank has approved the investment, which the bank feels would help FedFina improve its capital base to support its growing asset business and to grow its branch network. The investment will help further improve the company’s financial fundamentals by strengthening its capital adequacy and diversifying its funding sources, the bank said in a statement. Federal Bank MD and CEO Shyam Srinivasan said the bank considers 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 it will turn out to be seminal in the growth and expansion of FedFina, he said.