AU Small Finance Bank Limited has announced the allotment of 1,33,465 equity shares on March 12, 2026, following the exercise of Employee Stock Options under multiple ESOP schemes. The allotment was disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

ESOP Exercise Details

The equity shares, each with a face value of Rs. 10, were allotted pursuant to the exercise of equivalent Employee Stock Options across four different schemes. The distribution across various ESOP schemes demonstrates the bank's structured approach to employee incentivization over multiple years.

Impact on Share Capital

The allotment has resulted in an increase in the bank's paid-up equity share capital. Following the exercise of these stock options, the paid-up equity share capital has risen from Rs. 7,48,09,10,520 to Rs. 7,48,22,45,170, reflecting the addition of the newly allotted shares.

Regulatory Compliance

The bank has fulfilled its disclosure obligations by informing both the National Stock Exchange of India Limited and BSE Limited about this allotment. The communication was signed by Manmohan Parnami, Company Secretary and Compliance Officer, ensuring proper regulatory compliance and transparency with stakeholders.

The ESOP 2020 scheme contributed the largest portion of the allotment with 81,880 shares, representing over 61% of the total shares allotted. This significant contribution from the 2020 scheme indicates substantial employee participation in that particular stock option program.

AU Small Finance Bank has received a significant regulatory update from the Reserve Bank of India (RBI) regarding its transition from Small Finance Bank to Universal Bank status. The central bank has modified key conditions attached to the earlier in-principle approval, providing more flexibility in the transition process.

Modified NOFHC Requirements

The RBI has replaced the original stipulation requiring promoters and promoter groups to hold shareholding through a Non Operative Financial Holding Company (NOFHC) in the transitioned Universal Bank. According to the bank's disclosure dated March 7, 2026, this requirement will now be applicable only if the bank or its promoters propose to establish any group entity in the future.

Regulatory Timeline and Next Steps

The bank's original in-principle approval from the RBI, granted on August 7, 2025, remains valid for a period of 18 months. AU Small Finance Bank will now submit its application for the final Universal Banking license in accordance with the RBI's guidance and within the stipulated timelines.

The transition process involves several key considerations:

• Compliance with applicable regulatory guidelines and instructions
• Board guidance for the final license application
• Assessment by RBI for final license approval
• Modified NOFHC requirements for future expansion plans

Impact of Regulatory Changes

The modification in RBI's requirements represents a more flexible approach to the bank's transition process. The revised terms eliminate the immediate need for establishing a NOFHC structure, while maintaining regulatory oversight for future corporate expansions. This change allows the bank to proceed with its Universal Banking transition under simplified structural requirements.

The final Universal Banking license approval will remain subject to the RBI's assessment of the bank's compliance with all applicable regulatory guidelines and instructions. The bank continues to work toward completing its transition within the approved timeline while adhering to all regulatory requirements.