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Federal Bank board approves fundraising plans via equity and debt instruments up to ₹6,000 croreOn the equity front, the bank aims to raise capital through various instruments such as a rights issue, preferential issue, further public offer (FPO), qualified institutional placement (QIP), global depository receipts (GDR), American depository receipts (ADR), foreign currency convertible bonds (FCCBs), or a combination of these. Shares of Federal Bank Ltd ended at ₹213.10, up by ₹4.65, or 2.23%, on the BSE.By Jomy Jos Pullokaran   June 30, 2025, 9:20:20 PM IST (Published)2 Min ReadSouth India-based private lender, Federal Bank Limited, on Monday (June 30) said the board has approved a comprehensive fundraising plan through both equity and debt routes, subject to necessary shareholder and regulatory approvals.

On the equity front, the bank aims to raise capital through various instruments such as a rights issue, preferential issue, further public offer (FPO), qualified institutional placement (QIP), global depository receipts (GDR), American depository receipts (ADR), foreign currency convertible bonds (FCCBs), or a combination of these.

Additionally, the board has approved raising up to ₹6,000 crore through debt instruments. These may include Additional Tier I (AT1) bonds, Tier II bonds, long-term bonds for infrastructure and affordable housing, masala bonds, green bonds, and non-convertible debentures (NCDs).

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The debt issuance may be carried out in both domestic and overseas markets on a private placement basis, within the overall borrowing limits of the bank.

Fourth Quarter Results

Federal Bank reported a 13.7% year-on-year (YoY) rise in net profit to ₹1,030.2 crore for the fourth quarter ended March 31, 2025. The lender beat the CNBC-TV18 poll estimate of ₹977.5 crore. In the same quarter last year, it had posted a profit of ₹906.3 crore.

Net interest income (NII) increased 8.3% YoY to ₹2,377.4 crore from ₹2,195.2 crore. However, it came in slightly below street expectations of ₹2,431.9 crore. The net interest margin (NIM) improved to 3.12% during the quarter, supported by strategic initiatives.

Gross non-performing assets (GNPA) declined to ₹4,375.5 crore from ₹4,553.3 crore in the previous quarter, while net NPA fell to ₹1,040.4 crore from ₹1,131.2 crore sequentially. In percentage terms, the gross NPA ratio eased to 1.84% from 1.95%, and the net NPA ratio improved to 0.44% from 0.49% quarter-on-quarter.

Also Read: Federal Bank CEO expects two RBI rate cuts in FY26

Shares of Federal Bank Ltd ended at ₹213.10, up by ₹4.65, or 2.23%, on the BSE.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsFederal Bankshare market today