South Indian Bank granted 5,30,916 employee stock ownership scheme (ESOS) options to Managing Director & CEO P R Seshadri on September 25, 2026. The grant complies with Reserve Bank of India (RBI) approval for non-cash variable pay for FY26.

The options were issued under the SIB ESOS Scheme 2008 and recommended by the Nomination and Remuneration Committee. No options were granted to the Part-time Chairman or other Non-Executive Directors. The Board meeting commenced at 10:30 am and concluded at 6:30 pm.

Option pricing and vesting structure

The exercise price is set at ₹23.54 per share, representing a 50% discount on the market price of ₹47.08 recorded on September 23, 2026. An option premium of ₹32.72 per option was determined using the Black Scholes Model by a registered valuer.

Vesting follows a staggered timeline over three years:

What the numbers show

The grant represents a significant dilution potential relative to the current share price. With an exercise price of ₹23.54 against a closing market price of ₹47.08, the intrinsic value at grant is substantial. However, the high option premium of ₹32.72 indicates that the fair value of the benefit is heavily weighted toward time value rather than immediate intrinsic gain, aligning with long-term retention goals.

Regulatory compliance and details

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and adheres to SEBI Master Circular dated January 30, 2026. The options may be exercised within five years from the respective vesting dates. If exercised fully, the grant will result in the issuance of 5,30,916 equity shares with a face value of ₹1 each.

South Indian Bank engaged with four additional institutional investors and analysts on September 23, 2026, following its participation in the Anand Rathi summit the previous day. These one-on-one meetings were held at various locations in Mumbai, including the bank's regional office.

Meeting Details

Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015, the bank disclosed the schedule and outcomes of these engagements. The meetings included both group sessions and one-on-one discussions. No presentations were made, and the bank confirmed that no Unpublished Price Sensitive Information (UPSI) was shared during these interactions.

Participant List

The following institutional investors and analysts participated in the sessions on September 23, 2026. All meetings were conducted as physical one-on-one calls.

Jimmy Mathew, Company Secretary, signed the intimation issued on September 23, 2026. The information was also hosted on the bank's website for public record.