Federal Bank board to weigh fund-raising options on October 24

The bank may adopt one or a combination of these methods, subject to regulatory approvals and market conditions.

Federal Bank’s Board of Directors will meet on October 24, 2025, to evaluate various fund-raising proposals aimed at strengthening its capital base and supporting future growth plans, confirmed MD and CEO KVS Manian during a press call post-Q2 FY26 earnings.

The private-sector lender said it is considering multiple routes for raising capital, including a rights issue, preferential allotment, and qualified institutions placement (QIP).

These options may involve the issuance of equity shares, convertible instruments such as warrants, or other eligible securities. The bank may adopt one or a combination of these methods, subject to regulatory approvals and market conditions.

When asked about the specific fund-raising route the bank is considering, Manian said, “We have issued a stock exchange notification that the Board will meet on the October 24. We will wait for the Board’s decision.”

Federal Bank Ltd reported a 9.6 percent year-on-year decline in standalone net profit to Rs 955.3 crore for the July-September quarter (Q2 FY26), even as its net interest income (NII) rose 5.4 percent on-year to a record Rs 2,495 crore, supported by stable margins and steady loan growth.