Federal Bank Allots Equity Shares to Employees Under ESOS 2010 and ESOS 2017 Schemes

1 min read     Updated on 04 May 2026, 10:51 AM
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Federal Bank allotted equity shares to option grantees under two Employee Stock Option Schemes on May 03, 2026. Under ESOS 2010, 21,875 equity shares with a face value of Rs. 2/- each were allotted, while 3,74,244 equity shares with a face value of Rs. 2/- each were allotted under ESOS 2017. The allotments were approved by the Nomination, Remuneration, Ethics and Compensation Committee after receipt of payment from allottees. The regulatory disclosure was filed with NSE and BSE on May 04, 2026, under reference SEC/ESOS/43/2026-27.

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Federal Bank has allotted equity shares to eligible option grantees following the exercise of stock options under its Employee Stock Option Schemes. The allotments, approved by the Nomination, Remuneration, Ethics and Compensation Committee, were made after receipt of payment from the respective allottees and are effective May 03, 2026.

Allotment Details Under ESOS Schemes

The bank completed allotments under two distinct ESOS schemes. The following table summarises the key details of each allotment:

Parameter: ESOS 2010 Scheme ESOS 2017 Scheme
Number of Equity Shares Allotted: 21,875 3,74,244
Face Value Per Share: Rs. 2/- Rs. 2/-
Allotment Date: May 03, 2026 May 03, 2026
Allottees: Option Grantees Option Grantees

Regulatory Disclosure

The allotment was communicated to both the National Stock Exchange of India Limited and BSE Limited under Regulation 30, in accordance with applicable disclosure requirements. The intimation was issued by the Secretarial Department of Federal Bank, bearing reference SEC/ESOS/43/2026-27, and signed by Company Secretary Samir P Rajdev on May 04, 2026.

Key Highlights

  • ESOS 2010: 21,875 equity shares allotted with a face value of Rs. 2/- each
  • ESOS 2017: 3,74,244 equity shares allotted with a face value of Rs. 2/- each
  • Allotments made following payment by the respective option grantees
  • Approved by the Nomination, Remuneration, Ethics and Compensation Committee
  • Disclosure filed with both NSE and BSE on May 04, 2026

Historical Stock Returns for Federal Bank

1 Day5 Days1 Month6 Months1 Year5 Years
+1.19%-0.49%+10.19%+23.02%+52.79%+268.28%

How might the dilution from these ESOS allotments impact Federal Bank's earnings per share and shareholder value in the upcoming quarters?

Are there additional tranches of unexercised stock options under the ESOS 2010 and ESOS 2017 schemes that could lead to further equity dilution in the near future?

How does Federal Bank's employee stock option activity compare to peers in the private banking sector, and what does it signal about employee retention and compensation strategy?

Federal Bank FY26 Results: Net Profit ₹4,117 Cr, Board Recommends 60% Dividend

3 min read     Updated on 01 May 2026, 09:30 AM
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Federal Bank delivered solid FY26 performance with net profit of ₹4,117.32 crore and 1.61% growth, while the Board recommended a 60% dividend at ₹1.20 per share. Q4FY26 demonstrated exceptional quarterly strength with net profit reaching ₹1,259.10 crore and total income of ₹8,544.04 crore. The bank published its audited financial results in Financial Express and Deepika newspapers on April 30, 2026, ensuring full regulatory compliance under SEBI listing obligations.

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Federal Bank announced its audited financial results for FY26 following a Board meeting held on April 29, 2026. The bank delivered solid performance with net profit reaching ₹4,117.32 crore, representing growth of 1.61% compared to ₹4,051.89 crore in the previous year. The Board recommended a final dividend of 60%, equivalent to ₹1.20 per equity share of face value ₹2 each, subject to shareholder approval at the ensuing Annual General Meeting.

Q4FY26 Quarterly Performance Highlights

The fourth quarter demonstrated remarkable operational strength with net profit surging to ₹1,259.10 crore, marking sequential growth of 20.93% from ₹1,041.21 crore in Q3FY26. Total income for Q4FY26 stood at ₹8,544.04 crore, while operating profit reached ₹2,276.41 crore. The bank achieved significant milestones with both CASA and NR deposits crossing the ₹1 lakh crore mark simultaneously.

Financial Metric: Q4FY26 Q3FY26 YoY Growth
Net Profit: ₹1,259.10 crore ₹1,041.21 crore 22.20%
Total Income: ₹8,544.04 crore ₹7,967.79 crore 11.62%
Operating Profit: ₹2,276.41 crore ₹1,729.33 crore 31.64%
ROA: 1.36% 0.29%* -
NIM: 3.74% - -
Basic EPS: ₹5.11 ₹4.23 20.80%

*Not annualised

Balance Sheet Strength and Asset Quality

The bank's balance sheet demonstrated robust growth with total business reaching ₹5,78,503.76 crore, growing 4.54% quarter-on-quarter. Total deposits increased to ₹3,13,909.39 crore with 5.41% QoQ growth, while gross advances stood at ₹2,64,594.37 crore. CASA balances reached ₹1,03,390.30 crore with the CASA ratio improving to 32.94%, showing a 271 basis points year-on-year improvement.

Balance Sheet Metric: Q4FY26 QoQ Growth
Total Business: ₹5,78,503.76 crore 4.54%
Total Deposits: ₹3,13,909.39 crore 5.41%
Gross Advances: ₹2,64,594.37 crore 3.65%
CASA Balances: ₹1,03,390.30 crore 8.26%
NR Deposits: ₹1,02,619.69 crore 7.04%

Asset quality metrics remained exemplary with Gross NPA at 1.62% and Net NPA at 0.20% as of March 31, 2026, demonstrating superior risk management capabilities. The Capital Adequacy Ratio under Basel III stood strong at 17.25%.

Regulatory Filings and Board Meeting Details

The audited financial results were approved by the Board at its meeting held on April 29, 2026, which commenced at 1:20 p.m. and concluded approval of financial results at 1:50 p.m. The regulatory filing was submitted to both NSE and BSE under scrip symbol FEDERALBNK and code 500469, signed by Company Secretary Samir P Rajdev with filing reference SEC/LODR/28/2026-27.

Filing Details: Information
Meeting Date: April 29, 2026
Start Time: 1:20 p.m.
Results Approval: 1:50 p.m.
Filing Reference: SEC/LODR/28/2026-27
Company Secretary: Samir P Rajdev

Pursuant to Regulation 33(3)(d) of SEBI Listing Regulations, the Joint Statutory Auditors—M/s. M S K A & Associates LLP and M/s. Suri & Co—have issued an unmodified opinion on the audited standalone and consolidated financial results for FY26. Executive Director & CFO Venkatraman Venkateshwaran confirmed the auditor's declaration.

Newspaper Publication and Regulatory Compliance

Pursuant to Regulation 30 and 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the bank published its audited financial results for Q4FY26 in newspapers on April 30, 2026. The results were published in "Financial Express" (English) and "Deepika" (Malayalam), ensuring compliance with regulatory disclosure requirements. The complete financial results are also available on the bank's website at https://www.federal.bank.in/financial-result .

Publication Details: Information
Publication Date: April 30, 2026
English Newspaper: Financial Express
Regional Newspaper: Deepika (Malayalam)
Digital Availability: Bank's official website
Filing Reference: SEC/LODR/38/2026-27

Strategic Developments and Fee Income Growth

The bank's diversified credit portfolio shows retail banking comprising 54% of customer assets, commercial banking at 35%, and corporate banking at 11%. Digital initiatives continue to drive growth with the Federal 24/7 current account opening platform, FedWealth investment platform, and enhanced UPI acquiring capabilities contributing to operational efficiency. Fee income for Q4FY26 reached ₹990.92 crore, growing 10.54% quarter-on-quarter, reflecting strong non-interest income performance.

Historical Stock Returns for Federal Bank

1 Day5 Days1 Month6 Months1 Year5 Years
+1.19%-0.49%+10.19%+23.02%+52.79%+268.28%

How will Federal Bank sustain its impressive 20.93% sequential profit growth momentum in the upcoming quarters amid potential economic headwinds?

What strategic initiatives is Federal Bank planning to maintain its CASA ratio improvement beyond the current 32.94% level?

Will Federal Bank's digital platforms like Federal 24/7 and FedWealth be sufficient to compete with fintech disruption in the retail banking space?

More News on Federal Bank

1 Year Returns:+52.79%