Federal Bank has received shareholder approval to raise up to ₹2,500 crore this year to support its growth, said a top official. Also, “we are... increasing the borrowing limit by ₹4,000 crore to support growth,” said Shyam Srinivasan, MD and CEO, Federal Bank. Shareholders also passed a resolution to raise holdings of foreign institutional investors / portfolio investors to 74%. Currently, the lender’s capital adequacy ratio is
at 12.39%. “For the current year, we expect to post 18-20% growth across the board. We will also maintain equal growth in our loan portfolio of one-third between corporate, retail and small and medium enterprises. We will try to bring down the gross non-performing asset to 1%,” he said. Mr. Srinivasan said the bank would continue to follow the 4D strategy to sustain its growth. The 4Ds entail dominating Kerala, focusing on digital banking, delighting the stakeholders and doubling the share of business outside of Kerala. About 650 branches are located outside Kerala and it contributes 80% of the business. The bank is working on five key process of artificial intelligence, he said. The shares of the bank gained 0.47% to close at ₹116.90 on the BSE Friday.
