IFC receives RBI approval for Federal Bank's stake acquisition

The Reserve Bank of India (RBI) has granted approval to the International Finance Corporation (IFC) for acquiring an aggregate holding of up to 9.70% of the paid-up share capital or voting rights of Federal Bank.

The RBI's approval, received on September 28, 2023, is contingent upon the conditions specified therein and in accordance with the application made by IFC to the RBI.

This development adheres to 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, and subsequent amendments), the Foreign Exchange Management Act, 1999, regulations issued by the Securities and Exchange Board of India, and other applicable guidelines, regulations, and statutes.