Federal bank Limited has completed the allotment of equity shares under its Employee Stock Option Schemes (ESOS) on February 08, 2026. The allotment, totaling 1,62,531 equity shares, was executed following approval from the bank's Nomination, Remuneration, Ethics and Compensation Committee.

Scheme-wise Share Allotment Details

The allotment was distributed across two distinct ESOS schemes, with shares allocated to option grantees upon exercise of their stock options:

Allotment Process and Compliance

The share allotment was completed after the option grantees made the required payments for exercising their stock options. Federal Bank communicated this development to both the National Stock Exchange of India Limited and BSE Limited through a formal notification dated February 08, 2026.

The communication was signed by Samir P Rajdev, Company Secretary of Federal Bank Limited, and filed under reference number SEC/ESOS/421/2025-26. The bank has requested both stock exchanges to take the allotment details on record as part of regulatory compliance requirements.

ESOS Implementation

The Employee Stock Option Schemes represent Federal Bank's commitment to employee participation in the bank's growth through equity ownership. The exercise of options under both the 2010 and 2017 schemes demonstrates continued employee confidence in the bank's prospects. All allotted shares carry equal rights and are fully paid-up equity shares of the bank.

Federal Bank has secured a crucial regulatory approval from the Reserve Bank of India (RBI) that will allow ICICI Prudential Asset Management Company Limited, along with group entities of ICICI Bank Limited, to acquire a significant stake in the private sector lender. The approval, received on February 11, 2026, marks an important milestone in the bank's corporate development.

RBI Approval Details

The central bank has granted permission for the acquisition of an aggregate holding of up to 9.95% of Federal Bank's paid-up share capital or voting rights. This approval was communicated to Federal Bank through an official intimation from the RBI on February 11, 2026.

Regulatory Compliance Framework

The RBI approval comes with comprehensive compliance requirements that the acquiring entities must adhere to. The approval is subject to strict adherence to multiple regulatory frameworks governing banking sector investments.

The key compliance requirements include:

• Banking Regulation Act, 1949 provisions
• Reserve Bank of India (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025 dated November 28, 2025
• Foreign Exchange Management Act, 1999 provisions
• Securities and Exchange Board of India regulations
• Other applicable statutes, regulations and guidelines

Corporate Governance and Disclosure

Federal Bank has fulfilled its disclosure obligations under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank's Company Secretary, Samir P Rajdev, formally communicated this development to both the National Stock Exchange of India Limited and BSE Limited through official correspondence.

This regulatory approval represents a significant vote of confidence from the ICICI group in Federal Bank's business prospects and strategic direction. The acquisition will bring additional institutional investment into Federal Bank while maintaining compliance with RBI's shareholding guidelines for commercial banks.