Fedbank Financial Services is a retail focused non-banking finance company (NBFC) promoted by The Federal Bank Limited. The company is focused on catering to the MSMEs and the emerging self-employed individuals (ESEIs) sector. The ESEI and MSME segment is largely unaddressed by lending institutions in India. This segment provides the company with a sizeable opportunity to rapidly grow and expand further. It has a well-tailored suite of products targeted to match its customers’ needs, which includes mortgage loans such as housing loans; small ticket loan against property (LAP); and medium ticket LAP, unsecured business loans, and gold loans.
It is promoted by Federal Bank, which, adds a degree of trust among its stakeholders. Federal Bank will continue to own more than 51% of its outstanding share capital post the completion of the Offer. The company’s long operating history, track record, management expertise and the “Federal Bank” brand have enabled it to establish a competitive position in the markets it serves and create trust among its customers, lenders, regulators and investors.
The company also has a “Phygital” doorstep model, a combination of digital and physical initiatives, for providing customized services to its customers across all of its products. This also helps the company to constantly remain in touch with its customers. Technology is the core building block of its underwriting model which combines electronic data and physical information and document collection.
Business area of the company
Fedbank is a retail-focused non-banking finance company, with the second lowest cost of borrowing among the micro, small, and medium enterprises (MSMEs), gold loan, and MSME & gold loan peer set in India in Fiscal 2023. The company's clientele comes mainly from the MSME and emerging self-employed individuals (ESEI) sectors. The company's product range includes mortgage loans such as housing loans; small ticket loans against property (LAP); and medium ticket LAP, unsecured business loans, and gold loans. The company also has a Phygital doorstep model, a combination of digital and physical initiatives, for providing customized services to customers across all the products.
Awards, accreditations, and accolades
- 2016: Awarded second place in 14th National Awards for Excellence in Cost Management in ‘banking, financial services and insurance’ category by the Institute of Cost Accountants of India
- 2019: Awarded the ‘Certificate of Responsible Recycling’ by E-Incarnation Recycling Private Limited.
- 2020: Certified as a ‘Great Workplace’ by ‘Great Place to Work’ by Great Place to Work Institute, India.
- 2021: Ranked 16th in Best Places to Work in India 2021 Employee Choice Awards by AmbitionBox.
- 2021: Certified as a ‘Great Workplace’ by ‘Great Place to Work’ by Great Place to Work Institute, India.
- 2021: Received recognition for ‘Commitment to Being a Great Place to Work’ by Great Place to Work Institute, India.
- 2022: Certified as a ‘Great Workplace’ by Great Place to Work Institute India.
- 2022: Awarded by Chamber of Indian Small and Medium Enterprises.
- 2023: Awarded ‘Top 50 India’s Best Workplaces in BFSI 2023’ by Great Place to Work Institute, India.
- 2023: Awarded ‘Banking Frontiers - Best Talent, Diversity and Cultural Initiative'
Major events and milestones
- 1995: Incorporation of the company
- 2007: Commenced business of distribution of housing loans, home equity mortgage loans, personal car loans and personal loans for the Promoter
- 2010: Received license to operate as an NBFC from the RBI
- 2011: Commenced the business of distribution of gold loans
- 2012: Commenced the business of medium ticket LAP
- 2015: Loan book of the company crossed Rs 5,000 million
- 2015: Crossed 100 branches
- 2015: Commenced the business of construction finance offering
- 2016: Net worth of the company crossed Rs 2,000 million
- 2017: Commenced business of small ticket LAP and structured finance products
- 2017: Loan book of the company crossed Rs 10,000 million
- 2018: Commenced business of distribution of unsecured business loans
- 2018: Received investment of Rs 1,686.00 million by True North
- 2019: Crossed 200 branches
- 2019: Net worth of the company crossed Rs 5,000 million;
- 2019: Loan book of the company crossed Rs 30,000 million
- 2020: Crossed 300 branches
- 2020: Maiden Subordinated liabilities issuance of Rs 2,500 million
- 2020: Initiated digital transformation journey
- 2020: Loan book of the company crossed Rs 40,000 million
- 2021: Crossed 500 branches
- 2021: Net worth of the company crossed Rs 10,000 million
- 2021: Started operations of door-step gold loans
- 2021: Loan book of the company crossed Rs 50,000 million
- 2021: Shifted the registered office of the Company from Aluva, Kerala to Mumbai, Maharashtra
- 2022: Crossed 550 branches
- 2022: Net worth of the company crossed Rs 13,000 million
- 2022: Loan book of the company crossed Rs 70,000 million
- 2022: Door-step gold loans AUM crossed Rs 1,000 million
- 2022: Credit rating of the company was upgraded from AA- to AA by CARE Ratings Limited
- 2023: Net worth of the company crossed Rs 13,500 million
- 2023: Loan book of the company crossed Rs 80,000 million
- 2023: Issuance of MLD amounting to Rs 2,000 million
- 2023: Issuance of subordinated debt of Rs 2,000 million
Comment