CSB Bank Limited has completed the transfer of equity shares under its Employee Stock Option Scheme, marking another milestone in its employee compensation program. The bank officially notified stock exchanges about the completion of share transfers to eligible employees who exercised their vested stock options.

Share Transfer Details

The CSB ESOS Trust transferred a total of 34,000 equity shares to three eligible grantees on March 9, 2026. This transfer was executed pursuant to the exercise of vested stock options by the employees under the CSB Employee Stock Option Scheme 2019.

Regulatory Compliance

CSB Bank has fulfilled its regulatory obligations by formally notifying both major stock exchanges about this corporate action. The bank submitted the intimation to BSE Limited and National Stock Exchange of India Ltd., ensuring full transparency and compliance with listing requirements.

The notification was signed by Sijo Varghese, Company Secretary of CSB Bank Limited, and has been made available on the bank's official website at www.csb.bank.in for public access.

Employee Stock Option Scheme Framework

The transfer represents the successful implementation of the bank's Employee Stock Option Scheme 2019, which allows eligible employees to acquire equity shares upon exercising their vested options. This mechanism serves as an important component of the bank's employee retention and incentive structure, aligning employee interests with shareholder value creation.

CSB Bank Limited has been penalized by the Reserve Bank of India with a monetary penalty of ₹63.60 lakh for regulatory non-compliance. The penalty relates to violations concerning Business Correspondent arrangements and account maintenance charges, highlighting ongoing regulatory scrutiny in the banking sector.

Penalty Details and Regulatory Action

The RBI imposed the aggregate monetary penalty through a Speaking Order dated February 06, 2026, which CSB Bank received on February 13, 2026. The penalty amount of ₹63.60 lakh (Rupees Sixty Three Lakh Sixty Thousand Only) was levied under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949.

Nature of Violations

The monetary penalty stems from the bank's non-compliance with RBI guidelines and directions in two specific areas:

• Business Correspondent (BC) arrangements: Violations related to the bank's BC operations and compliance framework
• Account maintenance charges: Non-adherence to regulatory guidelines concerning the levy of account maintenance charges on customer accounts

These violations indicate gaps in the bank's compliance mechanisms for customer-facing services and third-party arrangements.

Financial Impact and Disclosure

CSB Bank has quantified the financial impact of this regulatory action at ₹63.60 lakh, representing the direct monetary penalty imposed by the RBI. The bank disclosed this information in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Regulatory Compliance Framework

The penalty underscores the importance of strict adherence to RBI guidelines, particularly in areas affecting customer services and third-party partnerships. Business Correspondent arrangements are crucial for extending banking services to underserved areas, while account maintenance charges directly impact customer relationships and regulatory compliance.

CSB Bank's Company Secretary Sijo Varghese formally communicated this development to both BSE Limited and National Stock Exchange of India Ltd., ensuring transparency with stakeholders and regulatory authorities as mandated under SEBI regulations.