Federal Bank plans to raise up to $486 million, opening 13000 accounts per day

- Advertisement -

Federal Bank Ltd., an Indian bank supported by the International Finance Corp., is planning to raise up to 40 billion rupees ($486 million) in the coming months to facilitate its expansion efforts.

According to CEO Shyam Srinivasan, the fundraising can be accomplished through debt, equity, or a combination of both, with the final structure still being considered. The capital will be used to support Federal Bank’s growth strategy, which includes the opening of approximately 100 branches this year and the potential acquisition of a microfinance company.

Srinivasan stated that the bank anticipates achieving an 18% to 20% growth in its balance sheet this year, consistent with previous years, with a particular focus on unsecured retail and commercial loans. The planned fundraising has received approval from shareholders and may occur in a single tranche or multiple tranches.

- Advertisement -

Srinivasan highlighted that approximately 20% of the $90 billion in remittances from overseas Indians were processed through Federal Bank last year, with 10% of that amount remaining as deposits. The bank, based in Kerala, aims to expand its services to include wealth management and has experienced accelerated growth through its fintech partnerships, attracting thousands of customers daily.

Federal Bank, once primarily a regional bank serving customers in southern India, now operates more than 1,300 banking outlets, with deposits increasing by 17% in the latest quarter compared to the previous year.

In 2017, the company raised 25 billion rupees, and in 2021, the International Finance Corp. (IFC), the private-sector arm of the World Bank Group, received approval to acquire a stake in Federal Bank.

- Advertisement -

Federal Bank Fintech

About a fifth of $90 billion of remittances from Indians who live and work overseas were routed through the bank last year, with 10% of that amount remaining at the lender as deposits, Srinivasan said. Kerala-based Federal Bank wants to expand its services to include wealth management, he added.

Its fintech partners has also accelerated growth. “Our branches bring in 4,000 accounts daily while our fintech partnerships bring in 12,000 to 13,000 customers a day,” Srinivasan said.

- Advertisement -

Share this article...

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More News...

Latest

Rs.7000 crore Bitcoin Ponzi Scam, ED seizes property of Raj Kundra

Rs.7000 crore Bitcoin Ponzi Scam, ED seizes property of Raj Kundra

Rs.26 lakh Bank Fraud in Mumbai

Rs.26 lakh Bank Fraud in Mumbai

Woman arrested in Brazil for using dead man to sign loan in Bank

Woman arrested in Brazil for using dead man to sign loan

Election Training Video, Know how to use EVM, VVPAT and conduct Elections

Election Training Video, Know how to use EVM, VVPAT and conduct Elections

17 million dollar Bank Fraud in US

17 million dollar Bank Fraud in US

Royal Bank of Scotland closes 18 Branches as customers are using more Online Banking

Royal Bank of Scotland closes 18 Branches as customers are using more Online Banking

Micro Observer Election Duties and Format PDF

Micro Observer Election Duties and Format PDF

Bank Cashier fight with customer over cash withdrawal in Mirzapur

Bank Cashier fight with customer over cash withdrawal in Mirzapur

12th BPS Update: Bank Unions held Discussions on remaining issues with IBA

12th BPS Update: Bank Unions held Discussions on remaining issues with IBA

Bank Employees beaten by Loan customer in Uttar Pradesh

Bank Employees beaten by Loan customer in Uttar Pradesh

Latest News