Federal Bank’s board to consider fund raising proposal on Oct 24

Federal Bank’s board plans to meet on October 24, 2025 to evaluate potential fundraising through multiple avenues including rights issues, preferential allotments, qualified institutional placements, or issuance of equity shares and convertible instruments. The options under consideration also include warrants and other eligible securities.

The Kerala-headquartered institution stated in its stock exchange disclosure that it may consider alternative permissible funding methods beyond those specified, either individually or in combination as deemed suitable.

This capital-raising initiative follows a reduction in the private bank’s capital adequacy ratio, which decreased to 15.71% by September 2025 from 16.4% at the end of March 2025.

During the previous fiscal year (2024), the bank secured ₹3,040 crore (including share premium) through a Qualified Institutional Placement involving approximately 23 crore equity shares priced at ₹131.90 per share. Additionally, the institution completed a preferential share allotment of 7.26 crore equity shares totaling ₹958.75 crore (including share premium).

Published on October 18, 2025