RBI gives nod for True North to pick up 26% stake in Federal Bank's NBFC Noor Arora
The Reserve Bank of India (RBI) has given its nod to private Equity firm True North to pick 26 per cent stake in Fedbank Financial Services Ltd (Fedfina), a subsidiary of Kerala-based Federal Bank. The deal value is estimated to be around Rs 4 billion, for 26 per cent stake, while True North can further acquire additional equity shares of Fedfina, constituting up to 45 per cent of the share capital in the company. 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. FedFina's AUM (assets under management) stands over $200 million.
ARTICLE SOURCE: BS