Federal Bank to raise Rs 2,500 crore as growth capital

18-20% growth expected in the current financial year

Kerala-based Federal Bank is looking at raising up to Rs 2,500 crore through equity to improve its capital adequacy ratio, while growing at an expected rate of 18-20 per cent in the near future. The bank is also looking at a strategic equity partner for its non-banking finance arm Fedbank Financial Services.
 

Bank has received the approval of board and shareholders for raising funds and is in the process of evaluating the timing and mode, which is expected to be finalised in the next couple of months, said Shyam Srinivasan, managing director and chief executive of Federal Bank.

"At present,