Fedbank Financial Services Limited Board Approves Increased Borrowing Limit and Appoints Joint Statutory Auditors

Fedbank Financial Services Limited Board Approves Increased Borrowing Limit and Appoints Joint Statutory Auditors​

Fedbank Financial Services Limited, in a move signaling growth and restructuring, announced that its Board of Directors approved several key decisions, including raising aggregate borrowing limits and appointing M/s. V. Sankar Aiyar & Co. as Joint Statutory Auditors. The decisions, taken during the Board meeting on August 25, 2026, encompass increased financial capacity and critical operational appointments, all subject to shareholder approval at the upcoming Annual General Meeting.

The Board approved an increase in the company’s aggregate borrowing limits from Rs. 18,000 Crore to Rs. 23,000 Crore under Section 180(1)(c) of the Companies Act 2013. This increase is intended to accommodate various funding mechanisms, including fund raises through the issuance of Non-Convertible Debentures (NCDs) or other debt instruments, which can be executed in multiple tranches as needed.

Additionally, the company proposed raising funds through debt instruments, including both Indian and Foreign Currency Non-Convertible Debentures, up to a total of Rs. 2,500 Crore.

Appointment of Joint Statutory Auditors​

A significant decision made at the meeting was the appointment of M/s. V. Sankar Aiyar & Co., Chartered Accountants, as the Joint Statutory Auditors of Fedbank Financial Services Limited. The appointment is set for a period of three consecutive financial years: FY 2026-27, FY 2027-28, and FY 2028-29. This appointment is subject to approval by the shareholders at the forthcoming 31st Annual General Meeting.

M/s. V. Sankar Aiyar & Co. is a well-established Chartered Accountancy firm, operating with a team of 18 partners and over 175 professionals across multiple offices in Mumbai, New Delhi, Chennai, and Hyderabad.

Amendments to Articles of Association​

The Board also approved amendments to the Articles of Association (AoA). These changes, also subject to shareholder approval, include the deletion of a clause pertaining to True North Fund VI LLP, following the LLP's divestment of its entire shareholding in the Company, and the deletion of the clause regarding the Common Seal.

Upcoming General Meeting​

The Notice of the 31st Annual General Meeting (AGM) of the Shareholders is scheduled for Tuesday, September 29, 2026, at 12:00 noon (IST). The AGM will be conducted through Video Conferencing or Other Audio-Visual Means (OAVM) facility. The Notice of the AGM and the Annual Report for the FY 2025-26 will be circulated exclusively in electronic format.

Details of Proposed Debt Instruments​

Details regarding the proposal to raise funds through debt instruments are as follows:


The Board also detailed the appointment of the auditors, noting that M/s. V. Sankar Aiyar & Co. holds the necessary qualifications and is not disqualified under the Companies Act, 2013, for the role.

FEDFINA Stock Price Movement​

Fedbank Financial Services Limited shares closed lower today, shedding 0.22% as they settled at ₹159.02 in the post-market session. The stock traded a volume of 578,600 shares during the final trading period.