Federal Bank shares hit record high as lender plans to raise up to ₹6,000 crore

The shares of Federal Bank were up by 2 per cent on Tuesday after the lender announced plans to raise up to ₹6,000 crore through a mix of equity and debt instruments.

The shares of the Aluva-based bank rose by 2.64 per cent to ₹218.75 as of 2:20 pm, hitting the highest value in five years. The Federal Bank's market capitalisation reached ₹53,704 crore, making it the fourth-largest listed company in Kerala. It surpasses Cochin Shipyard, whose shares are down 1.15 per cent. 

The Aluva-based bank said the funds may be raised in Indian or foreign currency through private placements in domestic or overseas markets and would be subject to shareholder and regulatory approvals. 

The bank's board has also recommended the appointment of SEP & Associates as secretarial auditors for five financial years, from FY26 to FY30. 

Earlier, the lender had reported a profit of ₹1,030.23 crore in the fourth quarter, driven by a strong increase in its Net Interest Income (NII). The bank also registered an 8.31 per cent growth in NII in Q4, amounting to ₹2377.44 crore compared to ₹2195.11 crore in the same quarter of the previous year.