IFC Gets Permission from RBI to Acquire Stake in Federal Bank
The International Finance Corporation (IFC) has been granted permission by the Reserve Bank of India (RBI) to acquire a 9.7 per cent interest in Federal Bank. Earlier this year, the Kerala-based private sector lender raised Rs 959 crore through a preferential share offering to a World Bank Group member.
''The Federal Bank Ltd has received an intimation from the Reserve Bank of India on September 28, 2023, that it has accorded its approval to International Finance Corporation (IFC) for acquiring an aggregate holding of up to 9.70% of the Bank's paid-up share capital or voting rights subject to the conditions specified therein,'' said Federal Bank in a regulatory filing to stock exchanges on Sept 29.
''The authorisation has been granted in connection to the application made by IFC to the RBI,'' the bank noted in a statement. Following clearance by the central bank, the stake ownership is subject to compliance by other regulatory organisations.
"The aforementioned RBI approval is subject to compliance with the relevant provisions of the Banking Regulation Act, 1949, RBI's Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies dated January 16, 2023 (as amended from time to time), provisions of the Foreign Exchange Management Act, 1999, regulations issued by the Securities and Exchange Board of India, and any other guidelines, regulations, and statutes as may be applicable."
Meanwhile, Federal Bank had said earlier this month it will open 100 more branches this fiscal as part of its increasing focus on lending to small businesses.