Federal Bank's board has approved a proposal to raise up to Rs 10,000 crore through the issuance of debt instruments in domestic and overseas markets, subject to shareholder and regulatory approvals.
According to an exchange filing, the bank plans to raise funds in Indian rupees or any other permitted foreign currency through a range of debt securities on a private placement basis.
The proposed fundraising may include Additional Tier I (AT1) bonds, Tier II bonds, long-term infrastructure and affordable housing bonds, Masala Bonds, Green Bonds, non-convertible debentures (NCDs) and other debt securities permitted by the Reserve Bank of India (RBI) from time to time.
The bank said the fundraising will be undertaken within its overall borrowing limits and will be subject to shareholder approval, wherever applicable, as well as other statutory and regulatory clearances.
The capital raising will provide Federal Bank with additional financial flexibility to support business growth, strengthen its capital base and meet future funding requirements. The timing, quantum and mix of instruments will be decided based on market conditions and the bank's capital needs.
ALSO READ: Federal Bank Q1 Result: Profit Jumps 37% YoY To Rs 1,177 Crore; NII Rises 26%
The proposed issuance may be carried out in one or more tranches across domestic and international markets.
Federal Bank Q1 Result
Private lender Federal Bank reported a strong performance for the quarter ended June 2026 (Q1FY27), with net profit rising 36.6% year-on-year (YoY) to Rs 1,177 crore, driven by healthy growth in net interest income (NII) and lower provisions.
The private sector lender's NII grew 26.1% YoY to Rs 2,946 crore, compared with Rs 2,337 crore in the corresponding quarter last year.
On the asset quality front, gross non-performing assets (GNPA) improved to 1.52% from 1.62% in the March quarter, while net NPA (NNPA) declined to 0.18% from 0.20% sequentially.
Provisions fell sharply to Rs 317 crore from Rs 741 crore in the previous quarter and Rs 400 crore a year ago. Fresh slippages also eased to Rs 409 crore, compared with Rs 474 crore in Q4FY26.
The bank reported loan growth of 15% YoY and 5% quarter-on-quarter (QoQ).
However, net interest margin (NIM) moderated to 3.33% from 3.74% in the preceding quarter. Meanwhile, tax expense increased to Rs 402.7 crore from Rs 294.4 crore in the year-ago period.
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