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.
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Shares of Federal Bank Ltd ended at ₹213.10, up by ₹4.65, or 2.23%, on the BSE.
