Fedbank Financial Services To Consider Rs 5 Billion NCD Issuance

Fedbank Financial Services Ltd, a leading non-banking financial company (NBFC), has disclosed that its board will evaluate the issuance of non-convertible debentures worth Rs 5 billion. NCDs are fixed-income instruments that allow companies to raise long-term capital without diluting equity, making them a preferred choice for NBFCs seeking stable funding.  

The proposed issuance is expected to provide Fedbank with additional liquidity to expand its lending portfolio, particularly in retail loans, SME financing, and micro-lending segments. Industry analysts note that the move comes at a time when demand for credit is rising, and NBFCs are playing a critical role in bridging gaps left by traditional banks.  

By tapping into debt markets, Fedbank aims to diversify its funding sources, reduce reliance on short-term borrowings, and strengthen its balance sheet. The decision aligns with broader trends in India’s financial sector, where NBFCs are increasingly leveraging capital market instruments to fuel growth.  

Key Highlights 

• Fedbank Financial Services to consider Rs 5 billion NCD issuance  
• NCDs provide long-term capital without equity dilution  
• Funds to support retail, SME, and micro-lending operations  
• Move diversifies funding sources and strengthens liquidity  
• Reflects rising demand for credit in India’s NBFC sector  

Sources: Reuters, Economic Times, Business Standard