Federal Bank looks to acquire Madura Microfinance
By Atmadip Ray
Private sector lender Federal Bank is in talks to acquire Madura Microfinance for about Rs 720-750 crore, two people tracking the sector said.
The deal is expected to be partly in share-swap, and partly in cash for the micro lender backed by private equity firm Elevar Equity Mauritius. The Chennai-based MFI, promoted by non-resident neuro scientist Tara Thiagarajan, has a loan portfolio of Rs 1200 crore.
The acquisition will help Federal Bank venture into microfinance and grow its priority sector loans.