Federal Bank Limited to invest Rs148cr in Fedbank Financial Services
Federal Bank Limited, an Indian commercial bank, said that its board has approved an investment of over INR 148 crores in its subsidiary Fedbank Financial Services Limited (FFSL) via subscription to rights issue.
Fedbank Financial Services is a non-deposit taking systemically important non-banking financial company (NBFC), which acquired license from the Reserve Bank of India (RBI) in 2010. The company was incorporated on 17 April 1995.
Federal Bank Limited, which has a 74% stake in the non-banking financial company, said that the deal will be executed at arm’s length.
Federal Bank Limited to invest Rs148cr in Fedbank Financial Services. Photo courtesy of FBCC2018/Wikipedia.org.
As per the terms of the transaction, Federal Bank Limited will acquire the shares at INR 70 per share.
The capital infusion would not need any government or regulatory approvals, said the Indian commercial banking group based in Kerala.