IFC Received RBI’s Approval for Acquiring 9.7% stake in Federal Bank

Current Context: IFC receiving RBI’s approval for acquiring 9.7% stake in Federal Bank The International Finance Corporation (IFC) is a member of the World Bank Group that provides financing and advisory services to private sector enterprises in developing countries.

• In July 2023, Federal Bank raised 959 crore from IFC through a preferential issue of shares, which amounted to 4.99% of the bank’s post-issue paid-up capital.
• On September 28, 2023, Federal Bank received an intimation from the Reserve Bank of India (RBI) that it had accorded its approval to IFC for acquiring an aggregate holding of up to 9.70% of the paid-up share capital or voting rights of the bank, subject to the conditions specified therein.
• The RBI’s approval is in response to IFC’s application and is contingent on compliance with several regulatory provisions, such as the Foreign Exchange Management Act, 1999, the Banking Regulation Act, 1949, and the RBI’s guidelines on foreign investment in India.
• The stake acquisition by IFC is expected to strengthen Federal Bank’s capital base, support its growth plans, and enhance its environmental, social and governance (ESG) standards.

Question:

Q.1 What is the name of the World Bank Group member that provides financing and advisory services to private sector enterprises in developing countries?
a. International Finance Corporation (IFC)
b. International Monetary Fund (IMF)
c. International Development Association (IDA)
d. International Bank for Reconstruction and Development (IBRD)