Federal Bank Secures RBI Approval for ICICI AMC Stake Acquisition, CEO Srinivasan’s Term Nears End

The Federal Bank announced on December 28 that it has received approval from the Reserve Bank of India (RBI) for ICICI Prudential Asset Management Company (ICICI AMC) to acquire an aggregate holding of up to 9.95 percent stake in the bank. The nod from the RBI encompasses compliance with the pertinent provisions of the Banking Regulation Act, 1949.

This development unfolds under the leadership of Shyam Srinivasan, who has served as the Managing Director (MD) and CEO of Federal Bank since 2010. Notably, Srinivasan’s tenure is set to conclude on September 22, 2024, though there is no recent update from the bank regarding the selection of a new MD.

Earlier, Srinivasan emphasized the bank’s commitment to collaboration with fintech companies, stating that such partnerships offer broader customer reach. Highlighting the strategic importance of fintech collaboration, he expressed the bank’s intention to leverage this aspect rather than compete, acknowledging the significant value fintech companies bring to the banking landscape.