18th January 2018: Federal Bank entered into a strategic partnership with Hedge Equities Ltd for providing Portfolio Investment Scheme (PIS) services to NRIs. A formal agreement was executed at Federal Towers, Marine Drive, Ernakulam on 10th of January 2018. On the occasion, Mr. Jose K Mathew (EVP & Head Retail Business, Federal Bank) and Mr. Alex Babu (MD, Hedge Equities Ltd) exchanged the MoU announcing the tie-up.
Federal Bank is authorized by RBI to issue Permission Letter to NRIs on behalf of RBI to transact in secondary market. Presently the Bank has PIS arrangement with 8 partners and through these tie-ups, the Bank facilitates NRI clients to invest in shares of Indian companies, in secondary market for purchase/sale of shares or convertible debentures on repatriable and non repatriable basis. On the occasion Mr. Jose K Mathew, EVP & Head Retail Business said that the Bank is competent to cater to all the needs of NRI clients to invest in Indian Stock market and offers PIS services with best in class service at extremely competitive rates. He also added that the Bank is in the process of doubling the PIS business in terms of number of accounts and total volume.
Mr. Alex Babu, MD of Hedge Equities Ltd added that Hedge is slowly but surely transiting to a wealth management company. Last one year we have shown growth in AUM by hundred percent to 750 crore. Mostly it is contributed by NRIs and we expect this growth to continue for next couple of years. The Federal Bank PIS tie-up will definitely help smoothen the process and accelerate the growth trajectory.
About Federal Bank:
Federal Bank is a leading Private Sector Bank with a branch network of 1,252 branches and 1,680 ATMs spread across the country. The Bank’s total business mix (deposits + advances) stands at Rs 1.72 Lakh Crore as at June 30, 2017 and it has earned a net profit of Rs 210.15 Crore for Q1 FY18. Bank’s Capital to Risk weighted Ratio (CRAR) stood at 15.28% at the end of June 30, 2017. Federal Bank has its Representative Office at Dubai and Abu Dhabi that serves as a nerve centre for NRI customers in the UAE. The Bank also has an IFSC Banking Unit (IBU) in Gujarat International Finance Tec-City (GIFT City).Federal Bank is transforming itself, keeping its principles intact, into an organization that offers services beyond par. It has a well-defined vision for the future as a guidepost to its progress. During FY 17 the bank handled around 15 % of the total personal inward remittance to India