Shareholders clear Federal Bank plan

Federal Bank on Friday said its shareholders approved a significant capital-raising plan of up to ₹14,000 crore during the Annual General Meeting (AGM) conducted via video conferencing.

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The approved fundraising includes the issuance of bonds—Additional Tier I (AT1), Tier II, and ESG bonds—of up to ₹6,000 crore, and the raising of Tier I capital through securities issuance of up to ₹8,000 crore. The move is aimed at strengthening the bank’s capital base and supporting its growth ambitions.

Among other resolutions passed were the re-appointment of Harsh Dugar as Executive Director (retiring by rotation), the appointment of Venkatraman Venkateswaran as Executive Director, and the re-appointment of Varsha Purandare as Independent Director for a second term.

Addressing shareholders, Chairman A P Hota highlighted the bank’s core strengths—its people-centric culture, digital capabilities, and robust governance practices.

He noted that Federal Bank has now become the sixth-largest private bank in India by business size. In FY25, Federal Bank crossed a significant milestone, with its total business surpassing ₹5 lakh crore. Both total deposits and net advances recorded year-on-year growth of over 12%, reflecting strong operational performance. The Bank also reported its highest-ever net profit of ₹4,052 crore for the year.

In his first AGM address, KVS Manian, MD & CEO, outlined a transformative vision under a strategic framework called “C.O.D.E.S” – Centralise, Optimise, Digitize, Eliminate, and Simplify. He described the bank’s journey ahead as one of “breakthrough,” balancing the strength of its legacy with future potential. “What stretches before us is a horizon of possibilities, dynamic and full of promise,” he said, adding that Federal Bank aims to become the most admired bank by embracing reinvention and continuous improvement.

Manian also revealed that the Project Breakthrough encompasses 12 strategic themes, with 50 large initiatives and over 100 smaller projects currently underway. The bank is advancing with an “AAA” mindset—Alert to change, Agile in execution, and Astute in judgment—as it positions itself for the next phase of growth and transformation.

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