Federal Bank looking to sell controlling stake in FedFina to raise funds

Federal Bank is looking to sell a controlling stake in Fedfina to raise funds, according to sources. They hold about 74 percent in Fedfina which they could bring down to about 20 percent.

It is noteworthy that they tried speaking to investors in October about a potential equity raise in the banks itself. However, CNBC-TV18 has learnt that investors had advised them that rather than raising the money at a lower price to book value, they can raise money via selling stake in their subsidiary.

Fedfina is the short form for Fedbank Financial Services. Fedfina is into gold finance, home loans, loan against property as well as a business loan.