Federal Bank surges on announcing tie-up with MoneyGram

Leading private sector bank, Federal Bank Limited, joined hands with MoneyGram Payment Systems, Inc., a wholly-owned subsidiary of MoneyGram International, Inc., a global leader in cross-border P2P payments and money transfers, for a strategic partnership to offer a cost-effective direct to bank account credit option for customers in India. Through this partnership, millions will be able to receive deposits directly in their bank accounts without leaving the confines of their homes, which is imperative in the current situation.

According to World Bank, India remains the world's top recipient of remittances and is estimated to have received more than $82 billion USD remittances in 2019. Federal Bank enjoys a market share of more than 15 per cent of the remittance market in India and the tie-up with MoneyGram is expected to provide a further boost to this business.

Speaking on the collaboration, Shalini Warrier, Executive Director of Federal Bank stated that the tie-up with MoneyGram is yet another example of how the bank has used innovative technology of delivering superior customer experience. She further stated that being a leading player in the remittance and non-resident space, the company is confident that this tie-up with MoneyGram will provide huge benefits to customers.

On Thursday, the stock closed at Rs 45.40, up by 5.21 per cent or Rs 2.25 per share. The 52-week high is recorded at Rs 110.35 and the 52-week low is recorded at Rs 35.70.