The Federal Bank Limited is promoting Fedbank Financial Services (FedFina), a non-banking finance company (NBFC) with a retail focus. In FY 2023, it has the second-lowest borrowing cost in India’s peer set of micro, small, and medium-sized companies (MSMEs), gold loans, and MSME & gold loans.

With a three-year compound annual growth rate of 33% between FY 2020 and FY 2023, FedFina had the third highest AUM growth among NBFCs in the peer set in India as of March 31, 2023. Additionally, 85.98% of the total Loan Assets are secured against tangible assets, such as gold or customer property.
FedFina’s primary target market is emerging self-employed people (ESEIs) and MSMEs. Lending institutions in India tend to ignore the ESEI and MSME segments. Among the peer group, FedFina had the third-highest growth in disbursements, with a three-year compound annual growth rate of 35% between FY 2020 and FY 2023. As of March 31, 2023, the aggregate amount outstanding (AUM) for its home loans, gold loans, and unsecured business loans was INR 4,506.38 crore, INR 2,986.03 crore, and INR 1,454.28 crore, respectively.

Fedbank Financial Services covered 191 districts in 16 states and union territories in India through 575 branches as of March 31, 2023. The company was well-established in the country’s southern and western regions.