Federal Bank gains on plans to divest stake in subsidiary

12 Jan 2022 , 10:34 AM

The board of Fedbank Financial Services, a subsidiary of Federal Bank, at its meeting on 11 January 2022, approved initiating the process of an initial public offering by the way of fresh issue and offer for sale.

The size of the initial public offering (IPO), portion of offer for sale (if any), price and other details with respect to the proposed IPO by FedFina will be determined in due course, as per the press release. Further, post undertaking the proposed IPO, FedFina would still continue to be a subsidiary of Federal Bank.

The bank posted a 49.6% rise in standalone net profit to Rs 460.26 crore in Q2 FY22 as compared to Rs 307.62 crore reported in Q2 FY21. The private sector lenders total income fell 2.9% to Rs 3,823.61 crore in Q2 FY22 over Q2 FY21.

Federal Bank operates through four segments: treasury, corporate or wholesale banking, retail banking and other banking operations.

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