Federal Bank has raised Rs 2,125 crore through a 1:1 rights issue. The proceeds of the issue, which comprised 85 million shares of Rs 10 each at a premium of Rs 240 per share, will be used for expansion plans as well as meet the mandatory reserve requirements.The Kerala-based bank said the rights issue closed for subscription yesterday. The capital infusion would enhance the total net worth of the bank to around Rs 4,000 crore. Federal Bank posted a 37.77% rise in total income for H1FY08 at Rs 1,334.76 crore as against Rs 968.84 crore in the year-ago period.Operating profits increased to Rs 365.05 crore during the period, up 44.44%, when compared with Rs 252.74 crore in the corresponding period of the last fiscal.
