Federal Bank is set to learn its fate regarding potential inclusion in the MSCI February rejig today, with the announcement scheduled for 3pm. The bank finds itself in a borderline position for inclusion, with significant financial implications at stake.

MSCI Rejig Details

The potential inclusion carries substantial value for the banking institution:

Market Implications

The MSCI rejig represents a critical juncture for Federal Bank, as inclusion in MSCI indices typically leads to increased foreign institutional investment. The borderline status indicates that the bank meets most criteria but may be subject to final evaluation parameters that will determine its inclusion or exclusion from the index.

Timeline and Next Steps

With the announcement scheduled for 3pm today, market participants and investors will be closely monitoring the outcome. The USD 454M valuation attached to the potential inclusion reflects the significant impact such a decision could have on the bank's market positioning and investor base.

Federal Bank Limited has achieved a significant milestone in sustainability reporting, receiving an ESG rating of 78 from NSE Sustainability Ratings & Analytics for FY2025. The rating places the bank in the prestigious Leader category, reflecting its strong performance across environmental, social, and governance parameters.

ESG Rating Details

The rating was independently assigned by NSE Sustainability Ratings & Analytics, which operates as a registered ESG Rating Provider under Category I. The assessment was conducted based on publicly available information, ensuring transparency and objectivity in the evaluation process.

Regulatory Compliance and Disclosure

Federal Bank received the ESG rating information on February 26, 2026, and has promptly disclosed it in accordance with regulatory requirements. The bank has fulfilled its obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparent communication with stakeholders.

The disclosure has been made available on the bank's official website at federal.bank.in/disclosures-to-shareholders, providing easy access to shareholders and other interested parties. This demonstrates the bank's commitment to maintaining transparency in its sustainability reporting and regulatory compliance.

Significance of Leader Category Classification

The Leader category classification represents a notable achievement in the banking sector's sustainability landscape. An ESG rating of 78 indicates strong performance across multiple sustainability dimensions, positioning Federal Bank among industry leaders in responsible banking practices. This recognition validates the bank's efforts in integrating environmental, social, and governance considerations into its business operations and strategic planning.