Fedbank Financial Services Limited (FEDFINA) has taken a significant step to manage its non-performing assets (NPAs) by selling a pool of Gross Non-Performing Assets (GNPA) worth Rs. 79.45 crore to India SME Asset Reconstruction Company Limited (ISARC). The transaction, which took place on September 26, involved an upfront cash payment of Rs. 32.57 crore, representing approximately 41.00% of the principal outstanding value.

Details of the Asset Sale

The sold portfolio comprises two main components:

1. Small-ticket Loan Against Property (LAP) worth Rs. 55.60 crore
2. Affordable Home Loans worth Rs. 23.85 crore

It's worth noting that the total GNPA amount of Rs. 79.45 crore includes technically written-off principal outstanding value of Rs. 41.09 crore.

Financial Impact

The net carrying outstanding principal value of the sold pool, after Expected Credit Loss (ECL) provisions, stood at Rs. 22.20 crore as of August 31. Additionally, the company will write off the net carrying value of interest, amounting to Rs. 5.14 crore, in the quarter ending September 30.

Market Implications

This strategic move by Fedbank Financial Services is likely aimed at cleaning up its balance sheet and improving its asset quality. By offloading these non-performing assets, the company may be positioning itself for improved financial performance in the coming quarters.

Other Corporate Updates

In related news, FEDFINA has also announced:

1. An analyst/investor meeting with Bajaj AMC on September 26, conducted through video conferencing.
2. The closure of the trading window for designated persons and their immediate relatives from October 1, until 48 hours after the declaration of financial results for the second quarter and half-year ending September 30.

These actions demonstrate FEDFINA's commitment to transparency and compliance with regulatory requirements, including SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and SEBI (Prohibition of Insider Trading) Regulations, 2015.

As the financial sector continues to grapple with asset quality challenges, FEDFINA's proactive approach in managing its NPAs could be seen as a positive step towards maintaining a healthy loan book and potentially improving its financial metrics in the future.

Fedbank Financial Services Limited (FEDFINA) announced a significant change in its senior management as Chief Operating Officer (COO) Krishnaswamy Siddharth tendered his resignation. The company disclosed this information in a regulatory filing to the National Stock Exchange of India and BSE Limited on August 26, 2025.

Resignation Details

Krishnaswamy Siddharth, who served as the COO of Fedbank Financial Services, submitted his resignation on May 25, 2025, citing his intention to pursue new opportunities. The company's management accepted his resignation, and Siddharth completed a three-month notice period as per standard corporate practices.

Effective Date of Departure

According to the company's statement, Krishnaswamy Siddharth officially ceased to be the Chief Operating Officer of Fedbank Financial Services Limited after the close of business hours on August 25, 2025. This marks the end of his tenure with the organization.

Regulatory Compliance

The announcement was made in compliance with Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015. FEDFINA provided the necessary details as required by SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023.

Company's Response

Parthasarathy Iyengar, Company Secretary & Compliance Officer of Fedbank Financial Services Limited, signed the regulatory filing. The company has not announced any immediate replacement for the COO position.

About Fedbank Financial Services Limited

Fedbank Financial Services Limited, also known as FEDFINA, is a financial services company listed on the National Stock Exchange of India and BSE Limited. The company operates from its registered and corporate office located in Powai, Mumbai.

The departure of a key executive like the COO could potentially impact the company's operational strategy. Stakeholders and market observers will likely monitor FEDFINA's next moves and any subsequent appointments to fill this crucial position.