Fedbank Financial Services Ltd

Borrowing limits and debt funding

• Aggregate borrowing limit raised from Rs 18,000 crore to Rs 23,000 crore, subject to AGM approval.
• Plan to raise funds via NCDs or other securities in one or more tranches, with shareholder approval.

NCD issuance framework

• Fresh issuance of NCDs on private placement basis up to Rs 2,500 crore, subject to AGM approval.
• Debentures to be listed on BSE/NSE; tenor and coupon determined by Board.

Auditors appointment

• Appointment of M/s. V. Sankar Aiyar & Co. as Joint Statutory Auditors for three years from AGM 2026.
• Term from 31st AGM conclusion to 34th AGM conclusion, subject to shareholder approval.

AoA amendments

• Delete True North Fund VI LLP clause due to divestment.
• Delete Common Seal clause; subject to AGM approval.

AGM and notices

• 31st AGM scheduled Sep 29, 2026 at 12:00 IST via video conferencing.
• Annual Report FY2025-26 to be dispatched electronically to registered shareholders.

Regulatory disclosures

• Annexures I and II attached detailing NCD issuance and auditor appointment.

Meeting Details

• Board meeting scheduled for August 25, 2026.
• Time and venue not disclosed.

Key Agenda Items

• Consider raising funds via debt instruments up to Rs 2,500 crore.
• Including non-convertible debentures as part of the borrowing limit increase.
• Subject to shareholders' approval at the ensuing AGM.

Other Notes

• Intimation hosted on company website.

Meeting Details

• Date: August 13, 2026
• Time: 10:00 AM to 5:00 PM
• Mode/Location: Physical conference meeting in Mumbai
• Organizer: Fedbank Financial Services Limited (Analyst/Investor Meet)
• No unpublished price sensitive information disclosed

Participants

• Company officials participated in the meeting
• Annexure-1 lists external participants; company names not provided

Purpose

• Purpose: Analyst/Investor meet for investor interaction

Additional Notes

• Annexure-1 attached; details uploaded on the company website

Meeting Details

• Date and venue: August 13, 2026, in-person at Hotel Sofitel, Bandra Kurla Complex.
• Type: Group meeting; Organizer: Equirus Securities.
• Participants: Company officials (management) will participate.
• Purpose: Analyst/Investor group meeting for interaction.

Meeting Details

• Event: Earnings Conference Call.
• Date: July 15, 2026.
• Time: not disclosed.
• Mode: audio recording posted on company website.

Participants

• Key company participant: Company Secretary & Compliance Officer.

Purpose

• Purpose: earnings results discussion with investors.

Additional Notes

• Recording available on website; transcript to be uploaded later.

Business Overview

• Fedfina is Federal Bank-backed MSME-focused lending NBFC.
• Majority-owned by Federal Bank; operates in 17 states and UTs.
• Gold loan AUM grew 76.7% YoY to ₹11,191 Cr.
• Total AUM ₹21,136 Cr, up 34.7% YoY.
• Credit ratings AA+/Stable from CARE, CRISIL, ICRA, and India Ratings.

Key Operational Highlights

• AUM growth 34.7% YoY to ₹21,136 Cr.
• Gold Loan AUM at ₹11,191 Cr; quarterly net growth ₹838 Cr.
• Disbursements ₹6,760 Cr; YoY growth 13.9%.
• Branch network reached 757 branches across 17 states/UTs.
• Stree Shakti Gold Loan crosses ₹100 Cr portfolio.
• CSR initiatives: Nation Skill Building program and No More Chemo event.

Financial Performance

• Net Total Income ₹397.6 Cr; up 32.8% YoY.
• Net Interest Income ₹371.9 Cr; up 38.7% YoY.
• Operating Profit ₹187.5 Cr; up 49.9% YoY.
• PAT ₹114.4 Cr; up 52.5% YoY.
• AUM ₹21,136 Cr; Borrowings ₹14,696 Cr; Shareholders’ Funds ₹3,003 Cr.
• ROA 2.6%; ROE 15.4%; Cost to Income 52.8%.
• CRAR 20.7% (QoQ decline from 22.4%).
• Stage III gross 1.6%; Net Stage III 1.0%; Credit Cost 0.8%.

Capital Structure & Liquidity

• Borrowings ₹14,696 Cr; Total assets ₹18,247 Cr.
• Credit ratings AA+/Stable from CARE, CRISIL, ICRA, India Ratings.
• Federal Bank holds 60.7% stake in Fedfina.

Strategy & Outlook

• Fully integrated API stack for origination; real-time underwriting.
• Co-lending framework requires minimum 10% exposure retained; 5% default loss guarantee.
• Transfers to partner within 15 days of disbursement.
• Regulatory liberalisation enables branch expansion beyond 1,000 branches.
• Stree Shakti Gold Loan portfolio crossed ₹100 Cr; 1.2 lakh women customers.
• Nation Skill Building CSR program; No More Chemo CSR initiative launched.

Risks & Mitigation

• Co-lending transition may moderate near-term off-take.
• Credit costs could vary with macro conditions; current cost 0.8%.
• Competition and regulatory changes could impact margins.

Governance & Leadership

• MD & CEO Parvez Mulla leading Fedfina.
• Independent directors on board; Federal Bank holds 60.7% stake.

Financial highlights

• Net Interest Income up 38.7% YoY to ₹371.9 Cr in Q1 FY27.
• Operating Profit up 49.9% YoY to ₹187.5 Cr.
• Profit After Tax up 52.5% YoY to ₹114.4 Cr.
• AUM grew 34.7% YoY to ₹21,136 Cr.
• Disbursements in Q1 FY27 ₹6,760 Cr, up 13.9% YoY.
• Total income (net) ₹397.6 Cr in Q1 FY27.

Operational and balance sheet

• Branches: 757 across 17 states/UTs.
• Credit cost for Q1 FY27 at 0.8%.
• Gross NPA 1.6%; Net NPA 1.0%.
• CRAR 20.7% for Q1 FY27.
• Return on average assets 2.6%; ROE 15.4%.
• Book value per share ₹80.1; Shareholders’ funds ₹3,002.8 Cr.
• Employees: 5,376; Branches 757.

Financial results and audit status

• Standalone Ind AS unaudited results for quarter ended 30 June 2026 approved.
• Audit Committee recommended the results; Limited Review Report issued with unmodified opinion.
• Disclosures of ratios and security cover per Reg 52(4) and Reg 54.
• Results to be published in Business Standard and Pratahkal.
• Annexures 1 and 2 attached: security cover and issue-proceeds deviation.

ESOS grants and equity shares

• 20,15,744 ESOS options granted in quarter ended 30 June 2026.
• 6,99,980 equity shares allotted on exercise of options.

Debt instruments and covenants

• NCDs outstanding Rs 29,250 Lakhs secured; pari passu charge; 1.1x cover.
• Debt-to-equity 4.89x; CRAR 20.71%; NNPA 0.96%; GNPA 1.55%.
• Net worth Rs 3,00,276 Lakhs; total debt to assets 0.81.
• Covenant compliance: all listed NCDs complied as of 30 June 2026.
• RBI Master Direction: no NPA transfers; details disclosed.
• No subsidiary; no reportable segments.

NCD proceeds utilisation and regulatory notes

• No deviation in use of Rs 450 crore NCD proceeds; objects unchanged.
• Statement of deviation in use of proceeds: No deviation reported.
• Audit report notes: unmodified opinion on unaudited results.
• Board approved results on 15 July 2026; publication timelines specified.