Federal Bank has received board approval to raise up to ₹6,000 crore through a mix of equity and debt instruments, subject to shareholder and regulatory permissions.
On the equity front, the bank plans to explore multiple avenues such as rights issues, preferential allotments, public offerings, qualified institutional placements (QIPs), and international options like global and American depository receipts (GDRs and ADRs) or foreign currency convertible bonds (FCCBs), either individually or in combination.
In addition to equity, the bank intends to raise funds through various debt instruments, including Additional Tier I and Tier II bonds, long-term bonds aimed at infrastructure and affordable housing, green bonds, masala bonds, and non-convertible debentures (NCDs). These may be issued both in India and overseas through private placements, remaining within the institution's overall borrowing capacity.
For the quarter ending 31 March 2025, Federal Bank reported a 13.7% rise in net profit year-on-year, amounting to ₹1,030.2 crore. Net interest income increased by 8.3%, reaching ₹2,377.4 crore. The net interest margin improved to 3.12%, supported by targeted strategic actions.
Asset quality also strengthened, with gross non-performing assets falling to ₹4,375.5 crore and net NPAs reducing to ₹1,040.4 crore. In percentage terms, gross NPAs declined to 1.84% and net NPAs improved to 0.44% compared to the previous quarter.
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As of July 01, 2025, at 2:29 PM, Federal Bank share price is trading at ₹219.05 per share, a 2.78% increase. Over the past month, the stock has surged by 5.03%. The stock's 52-week high stands at ₹217 per share, while its low is ₹172.66 per share.
Federal Bank strengthens its capital base with a ₹6,000 crore fundraising plan and improved asset quality, reflecting a stable and strategic financial outlook.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jul 1, 2025, 2:31 PM IST
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