Federal Bank is reportedly in advance stage of identifying a strategic partner for its wholly owned subsidiary Fedbank Financial Services (Fedfina). The bank has appointed an investment banker for the same.
Fedfina, which bagged RBI licence as a non-banking finance company in 2010, has interests in SME-focused mortgage loans, loans against pledge of gold ornaments and structured finance. For 2016-17, Fedfina had recorded a total revenue of Rs 134.62 crore, a 50 per cent increase over a revenue of Rs 89.48 crore recorded in 2015-16. Net profit had risen to Rs 22.53 crore, almost double the Rs 12.25 crore the previous year.
Federal Bank is a major Indian commercial bank in the private sector headquartered at Aluva, Kerala having more than thousand branches and ATMs spread across different States in India. It offers personal, corporate, NRI, SME banking, online banking services to its customers.