Fedbank Financial Services Board Approves Borrowing Limit Hike to ₹23,000 Cr & Fund Raising Up to ₹2,500 Cr
Fedbank Financial Services board approved increasing aggregate borrowing limits to ₹23,000 Crore from ₹18,000 Crore. It also approved raising up to ₹2,500 Crore via debt instruments. M/s. V. Sankar Aiyar & Co. appointed as Joint Statutory Auditors for three years. The 31st AGM is scheduled for September 29, 2026.
The substantial increase in borrowing limits and the planned fundraise of ₹2,500 Crore are material events that can significantly impact the company's financial capacity, growth prospects, and operational scale. The auditor appointment is also a significant corporate governance event.
The company is increasing its borrowing limits and planning to raise significant funds through debt instruments, indicating a strategy for growth and expansion. The appointment of joint statutory auditors also suggests a proactive approach to compliance and governance.
Fedbank Financial Services Limited (FEDFINA) announced that its Board of Directors, in a meeting held on August 25, 2026, has approved a significant increase in aggregate borrowing limits from ₹18,000 Crore to ₹23,000 Crore. This increase, to be undertaken under Section 180(1)(c) of the Companies Act 2013, will facilitate fund-raising through Non-Convertible Debentures (NCDs) or other debt instruments, in one or more tranches, as required. The proposal also includes raising funds by debt instruments, including NCDs (in Indian or foreign currency), not exceeding ₹2,500 Crore. Both the increase in borrowing limits and the fund-raising proposal are subject to the approval of the company's shareholders at the upcoming Annual General Meeting (AGM).
Furthermore, the Board has approved the appointment of M/s. V. Sankar Aiyar & Co., Chartered Accountants, as Joint Statutory Auditors for a period of three consecutive financial years: FY 2026-27, FY 2027-28, and FY 2028-29. This appointment will be effective from the conclusion of the 31st AGM until the conclusion of the 34th AGM, subject to shareholder approval. The appointment is in line with RBI's directions for Non-Banking Financial Companies and entities with an asset size of ₹15,000 crore and above to appoint Joint Statutory Auditors.
The Board also approved amendments to the Articles of Association (AoA) of the Company. These include the deletion of a clause pertaining to True North Fund VI LLP, following their divestment of entire shareholding, and the deletion of the clause related to the Common Seal. Both AoA amendments require shareholder approval at the ensuing AGM.
The 31st Annual General Meeting of the Shareholders is scheduled to be held on Tuesday, September 29, 2026, at 12:00 noon IST, through Video Conferencing/Other Audio-Visual Means (OAVM). The Notice of the AGM and the Annual Report for FY 2025-26 will be disseminated electronically to shareholders.
A plain-language summary of a public exchange filing by Fedbank Financial Services Limited. Read the original for the full detail.