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RBI grants approval to IFC for acquiring 9.7% stake in Federal Bank
October 03, 2023
The Reserve Bank of India (RBI) has granted approval to the International Finance Corporation (IFC) to acquire a 9.7 per cent stake in Federal Bank. Earlier this year, the Kerala-based private sector lender had raised ₹959 crore via preferential issue of shares to the 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 aggregate holding of up to 9.70 per cent of the paid-up share capital or voting rights of the Bank subject to the conditions specified therein,” said Federal Bank in a regulatory filing to the stock exchanges on Friday.
‘’The approval has been granted with reference to the application made by IFC to RBI,” added the bank in its statement. After the central bank’s approval, the stake holding is subject to compliance by other regulatory bodies.
‘’The aforesaid approval granted by RBI is subject to the 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 Securities and Exchange Board of India, and any other guidelines, regulations and statutes as applicable,” said Federal Bank in its filing.
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