Federal Bank’s subsidiary, Fedbank Financial Services (FedFina), will head for an initial public offering (IPO).

The board of Federal Bank has given its approval to publicly list the subsidiary. The IPO will comprise a fresh issue and an offer for sale (OFS), subject to market conditions and Sebi approval.

The details such as the IPO size and the OFS will be decided at a later stage, Federal Bank said in a regulatory filing.

FedFina, a retail focused non-banking financial company (NBFC), will remain a unit of Federal Bank post the listing, the Kerala-based bank said.

Eight years after obtaining NBFC licence in 2010, FedFina got private equity fund True North to take 26% stake for around Rs 400 crore. The bank holds 74% shares in the NBFC.

FedFina’s assets under management stood at Rs 4,863 crore as of March-end, with retail loans comprising 96% of the loan book. The NBFC caters to products like gold loan, home loan, loan against property (LAP) and business loan.

The company reported gross non-performing assets (NPAs) of 1.04% at March-end while net NPAs stood at 0.71%.