Federal Bank , a prominent Indian private sector bank, has issued a clarification regarding recent news reports about a potential 9.99% stake issue. The bank stated that no decision has been made on the matter, addressing speculation that had been circulating in the financial media.

Key Points of Clarification

• No Decision Made: Federal Bank emphasized that no decision has been taken by the Board regarding the reported 9.99% stake issue.
• Upcoming Board Meeting: The bank referenced a previously announced Board of Directors meeting scheduled for October 24, 2025, to evaluate various fund-raising options.
• Regulatory Compliance: In its clarification to the stock exchanges, Federal Bank affirmed its commitment to disclosure obligations under Regulation 30 of the SEBI Listing Regulations.

Context of the Clarification

The clarification came in response to a news item titled "Federal Bank to roll out preferential issue for 9.99% stake" that appeared on a financial news website on October 20, 2025. The bank's statement aims to address any potential market speculation arising from this report.

Regulatory Disclosure and Transparency

Federal Bank's response highlights its adherence to regulatory requirements:

The bank also confirmed that all material information requiring disclosure under the Listing Regulations has been duly communicated to the stock exchanges.

Market Impact and Legal Status

• Trading Movement: The bank stated it is not aware of any undisclosed information that could explain any unusual trading activity.
• Legal Proceedings: Federal Bank clarified that there are no regulatory or legal proceedings related to the subject matter of the news article.

This clarification serves to maintain transparency and provide accurate information to investors and stakeholders. As the situation develops, market participants will likely await the outcome of the upcoming Board meeting for any potential decisions regarding the bank's fund-raising strategies.

Federal Bank , a leading private sector bank in India, has reported robust financial results for the second quarter of the fiscal year 2026, despite a slight dip in net profit. The bank's performance was marked by record-breaking figures in key areas, showcasing its resilience in a competitive banking landscape.

Key Financial Highlights

Strong Core Performance

Despite a 9.6% year-on-year decline in net profit to ₹955.26 crore, Federal Bank demonstrated strength in its core operations. The bank achieved its highest-ever net interest income of ₹2,495 crore, reflecting improved lending activities and efficient fund management. Additionally, fee income reached a record high of ₹886 crore, indicating the bank's success in diversifying its revenue streams.

Improved Deposit Base and CASA Ratio

Federal Bank's deposit base grew by 10.71% compared to the same period last year, showcasing the bank's ability to attract and retain customer funds. Notably, the Current Account Savings Account (CASA) ratio improved to 31.01%, suggesting enhanced liquidity and lower cost of funds for the bank.

Market Response

The market responded positively to Federal Bank's Q2 results, with the bank's shares rising 7% to ₹227.00. This uptick in share price indicates investor confidence in the bank's performance and future prospects.

Sector Performance

The broader banking sector also showed positive momentum, with the Nifty Bank index trading 0.5% higher at 57,996.00. This suggests a generally optimistic outlook for the banking sector in India.

Federal Bank's Q2 FY26 results demonstrate its ability to maintain strong core performance and improve key metrics, even in the face of challenges. The record-breaking figures in net interest income and fee income, coupled with improved deposit growth and CASA ratio, position the bank well for sustained growth in the coming quarters.