ESAF Small Finance Bank has successfully allotted 37,397 equity shares to eligible employees under its Employee Stock Option Scheme 2019. The allotment was approved by the bank's Nomination, Remuneration and Compensation Committee on March 08, 2026, as part of the bank's employee incentive program.

Share Allotment Details

The equity shares were issued following the exercise of vested stock options by eligible employees. Each share carries a face value of Rs. 10.00 and was issued at a premium, reflecting the bank's commitment to employee participation in its growth story.

Impact on Share Capital

The allotment has resulted in an increase in the bank's overall equity base. The newly issued shares will be identical to existing equity shares and carry the same rights and privileges.

Regulatory Compliance

The allotment was conducted in compliance with SEBI regulations, specifically under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The bank has fulfilled all necessary disclosure requirements to both BSE Limited and National Stock Exchange of India Limited.

Share Characteristics

The newly allotted equity shares will rank pari-passu with existing equity shares of the bank, ensuring equal treatment for all shareholders. The shares are issued in demat form and do not carry any lock-in restrictions, providing flexibility to the employee beneficiaries.

This employee stock option exercise demonstrates the bank's ongoing commitment to aligning employee interests with shareholder value creation through equity participation programs.

ESAF Small Finance Bank 's Board of Directors conducted a comprehensive meeting on February 27, 2026, addressing significant corporate governance matters including ESOP grants, director retirement, and board committee reconstitution under SEBI Listing Regulations.

RBI-Approved ESOP Grant for Executive Director

The Reserve Bank of India, through its letter dated February 11, 2026, approved the variable pay for Financial Year 2024-25 payable to George Kalaparambil John, Executive Director. Following RBI approval, 52.63% of the variable pay (non-cash component) will be granted as ESOPs, deferred over four years.

The ESOP grant follows a structured vesting and exercise schedule designed to align with regulatory requirements:

Director Retirement Notification

The board formally acknowledged the retirement of Thomas Jacob Kalappila, Non-Executive Independent Director, effective March 9, 2026. The retirement notification was submitted to BSE Limited and National Stock Exchange of India Limited under Regulation 30 of SEBI Listing Regulations.

Board Committee Reconstitution

Effective March 10, 2026, the bank approved comprehensive reconstitution of four key board sub-committees to ensure continued effective governance and regulatory compliance.

Regulatory Compliance and Documentation

All decisions align with SEBI Listing Regulations and relevant circulars, including SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The board meeting commenced at 03:15 P.M. and concluded at 5:30 P.M. The bank maintains transparency through comprehensive disclosures available on its investor relations website.