The Federal Bank to Raise Up to Rs 10,000 Crores Through Debt Instruments
The Federal Bank has received board approval to raise funds amounting up to Rs 10,000 Crores through the issuance of various debt instruments. The bank intends to source these funds in Indian currency or other permitted foreign currencies via both domestic and overseas markets.The decision was finalized during the board's adjourned meeting held on July 17, 2026. This funding initiative will be executed on a private placement basis and will remain within the overall borrowing limits of the bank.
Scope of Debt Instruments
The bank is authorized to issue a diverse range of debt securities to facilitate this fundraise. The permitted instruments include, but are not limited to:| Instrument Category | Description |
|---|---|
| Additional Tier I bonds (AT1 bonds) | Capital preservation and regulatory requirement |
| Tier II bonds | Subordinated debt instruments |
| Long term bonds | Infrastructure and Affordable housing focus |
| Masala Bonds | Rupee-denominated bonds issued in foreign markets |
| Green Bonds | Environmentally focused debt securities |
| Non-convertible debentures | Debt securities without conversion options |
The issuance of these instruments remains subject to shareholder approval where applicable, as well as necessary regulatory and statutory requirements. The bank will continue to operate within the permitted limits established by the Reserve Bank of India (RBI) from time to time.
FEDERALBNK Stock Price Movement
The Federal Bank Limited shares surged 6.55% today to settle at ₹349.00. The stock reached a new 52-week high during the session on a robust volume of 44.16 million shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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