CSB Bank Grants 5,90,469 Stock Options to Eligible Employees Under ESOP Scheme 2019
CSB Bank's Nomination & Remuneration Committee approved the grant of 5,90,469 stock options to eligible employees under the CSB Employee Stock Option Scheme 2019 on May 18, 2026. The options are exercisable into up to 5,90,469 fully paid-up equity shares of face value Rs. 10/- each at an exercise price of Rs. 358.65 per share, based on NSE's closing price on May 15, 2026. The options will vest in four equal tranches of 25% over 12, 24, 36, and 48 months from the grant date, with the exercise period during continuing employment set at 3 years from the date of vesting.
*this image is generated using AI for illustrative purposes only.
CSB Bank 's Nomination & Remuneration Committee ("Committee") of the Board of Directors, in its meeting held on May 18, 2026, approved the grant of 5,90,469 stock options to eligible employees under the CSB Employee Stock Option Scheme 2019 ("Scheme"). The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Committee meeting commenced at 9.30 a.m. and concluded at 10.05 a.m. on the same date.
Key Details of the Stock Option Grant
The options are exercisable into not more than 5,90,469 fully paid-up equity shares of face value Rs. 10/- each of the Bank. The exercise price has been set at Rs. 358.65 per equity share, determined based on the latest available closing price on the National Stock Exchange of India Limited (NSE)—the exchange that recorded the highest trading volumes in the Bank's equity shares—on Friday, May 15, 2026, being the previous trading day immediately preceding the date of the grant approval.
The following table summarises the key parameters of the stock option grant:
| Parameter: | Details |
|---|---|
| Total Options Granted: | 5,90,469 |
| Shares Covered: | 5,90,469 fully paid-up equity shares of face value Rs. 10/- each |
| Exercise Price: | Rs. 358.65 per equity share |
| Pricing Formula: | Closing price on NSE on May 15, 2026 (previous trading day) |
| Scheme: | CSB Employee Stock Option Scheme 2019 |
| Regulatory Compliance: | SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 |
Vesting Schedule
The granted options will vest in four tranches over a period of 48 months from the grant date of May 18, 2026. The vesting schedule is structured as follows:
- 25% of options granted (rounded off to the nearest 100) shall vest on completion of 12 months from the grant date, i.e., on May 18, 2027
- 25% of options granted (rounded off to the nearest 100) shall vest on completion of 24 months from the grant date, i.e., on May 18, 2028
- 25% of options granted (rounded off to the nearest 100) shall vest on completion of 36 months from the grant date, i.e., on May 18, 2029
- Balance options granted shall vest on completion of 48 months from the grant date, i.e., on May 18, 2030
Exercise Period and Scheme Compliance
The exercise period for employees continuing in employment or service is within 3 years from the date of vesting. In cases of separation, the exercise period will be governed as per the terms of the Scheme. All other terms and conditions applicable to the granted options remain as per the CSB Employee Stock Option Scheme 2019.
The Scheme has been formulated and approved by the shareholders of the Bank in accordance with the provisions of the SEBI (Share Based Employee Benefits) Regulations, 2014, which has since been replaced by the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The disclosures have also been made in compliance with SEBI Master Circular No. SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. This intimation has been made available on the Bank's official website.
Historical Stock Returns for CSB Bank
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.05% | +3.17% | -6.75% | -13.31% | +2.80% | +19.09% |
How might the dilution from 5,90,469 new equity shares impact CSB Bank's earnings per share and existing shareholder value when options begin vesting in 2027?
Given the exercise price of Rs. 358.65, what stock price appreciation would employees need to see over the 48-month vesting period to make these options financially meaningful, and how does this align with CSB Bank's growth targets?
How does CSB Bank's ESOP grant size and structure compare to peer private sector banks in India, and what does this signal about its talent retention strategy amid increasing competition for banking professionals?
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