The Reserve Bank of India (RBI) has granted approval to the International Finance Corporation (IFC) to acquire 9.7 percent stake in Federal Bank. The central bank's approval comes in response to IFC's application and is contingent on compliance with several regulatory provisions, Federal Bank said on Friday, September 29.

"These include adherence to the Banking Regulation Act of 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), provisions of the Foreign Exchange Management Act of 1999, regulations issued by the Securities and Exchange Board of India, and other relevant guidelines, regulations, and statutes," the lender said in a regulator filing.

At the time of writing this report, Federal Bank shares were trading at Rs 147.75, marking a 1.20 percent increase on the Bombay Stock Exchange (BSE).

(Edited by : Anshul)

First Published:Sept 29, 2023 3:52 PM IST