Federal Bank has received a substantial income tax refund of ₹489.60 crore from the Income Tax Department, as disclosed under regulatory compliance requirements to stock exchanges.

Official Regulatory Disclosure

The bank made the disclosure on March 27, 2026, pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The communication was sent to both National Stock Exchange of India Limited and BSE Limited, ensuring full regulatory compliance.

Refund Components and Legal Framework

The aggregate refund amount of ₹489,60,20,918 includes interest under Section 244A of the Income Tax Act. The refund orders were issued under Section 254, which pertains to orders passed by the Income Tax Appellate Tribunal (ITAT), giving effect to the tribunal's order dated August 13, 2024.

The Income Tax Department's Corporate Circle 2 (1) in Kochi issued the final orders on March 26, 2026, at 8:09 p.m., completing the refund process that had been pending since the original assessment years.

Financial and Compliance Impact

This substantial refund represents a significant positive development for Federal Bank's financial position. The resolution of tax matters spanning multiple assessment years eliminates long-standing uncertainties and provides enhanced cash flow for the banking institution.

The bank's prompt disclosure under SEBI regulations demonstrates strong corporate governance practices and regulatory compliance. Company Secretary Samir P Rajdev signed the official communication, ensuring proper authorization and documentation of this material financial development.

Federal bank has announced the allotment of 25,910 equity shares under its Employee Stock Option Schemes on March 25, 2026. The allotment was executed following the exercise of stock options by eligible option grantees and subsequent payment of the required amounts.

Allotment Details

The Nomination, Remuneration, Ethics and Compensation Committee approved the share allotment, which was distributed across two distinct ESOS schemes. The allotment represents the conversion of employee stock options into equity shares with full voting and dividend rights.

Regulatory Compliance

The bank has informed both the National Stock Exchange of India Limited and BSE Limited about the allotment through official communication dated March 26, 2026. The notification was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

ESOS Implementation

The Employee Stock Option Schemes allow eligible employees to purchase company shares at predetermined prices, serving as an employee retention and incentive mechanism. The exercise of options under both the 2010 and 2017 schemes demonstrates continued employee participation in the bank's equity growth.

The allotment process was completed after the option grantees made the necessary payments for their respective share allocations. All allotted shares carry a face value of Rs. 2/- each and will be credited to the respective employee accounts following standard settlement procedures.