Found a credible partner in Equirus, will create synergies: Federal Bank

Federal Bank will pick up 26 percent stake in Equirus Capital in a bid to help them broaden their product offering to corporate and SME clients. In an interview with CNBC-TV18, Shyam Srinivasan, MD & CEO of Federal Bank spoke about the latest happenings in his company and sector.

We have only announced the intent, we have to get the regulatory clearances and the process is underway. The bank has been growing quite consistently and our credit market share is increasing, so we felt that the commensurate business revenue market share growth has to be aided. In that journey we started looking out for a partner and in Equirus we found a credible partner, he said.

Growth on corporate and SME segment has been north of 25 percent for the last two years, he added.

Credit growth has been quite consistent, momentum has been reasonably strong. The impact of the recent stressed asset resolution we have to see, that is unclear to any of us. Through March, we will be able to get a better picture but the organic slippages are well under control, said Srinivasan.