Federal Bank gains as board to mull fund raising on 30 June

Federal Bank rose 1.29% to Rs 90.50 after the bank said that its board will consider raising funds on Thursday, 30 June 2022.

The bank plans raising funds either through rights issue, private placement, preferential issue, further public offer (FPO), qualified institutional placement (QIP), global depository receipts (GDR), American depository receipts (ADR), foreign currency convertible bonds (FCCB) or through any other permissible mode or a combination thereof, and also for determination of issuance amount, as may be appropriate.

The private lender said that borrowing/ raising of funds in Indian currency or any other permitted foreign currency by way of issue debt instruments including but not limited to additional tier I bonds (AT1 bonds), tier II bonds, long term bonds (infrastructure & affordable housing), masala bonds, green bonds, non-convertible debentures or such other debt securities as may be permitted by RBI from time to time, in domestic market and/or overseas market, on a private placement basis within the overall borrowing limits of the bank.

The board will also consider convening a general meeting to seek approval of the shareholders in respect of the aforesaid proposals for fund raising, as required, the bank stated.

Federal Bank has 1282 branches, 1885 ATMs/recyclers as on 31 March 2022. The Bank also has its Representative Offices at Abu Dhabi and Dubai and an IFSC Banking Unit (IBU) in Gujarat International Finance Tec-City (GIFT City).

The private lender's standalone net profit rose 13.13% to Rs 540.54 crore on 2.72% increase in total income to Rs 3948.24 crore in Q4 FY22 over Q4 FY21.

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