Federal bank has successfully completed the allotment of equity shares under its Employee Stock Option Scheme, marking another milestone in its employee compensation program. The bank executed the share allotment on February 28, 2026, following proper regulatory procedures and committee approvals.

Share Allotment Details

The bank's Nomination, Remuneration, Ethics and Compensation Committee approved the allotment of equity shares to eligible employees under the ESOS 2017 scheme. The allotment was completed after the option grantees made the required payments for exercising their stock options.

Regulatory Compliance

Federal Bank has notified both major stock exchanges about this corporate action. The bank sent official communications to the National Stock Exchange of India Limited and BSE Limited, ensuring full compliance with listing requirements and transparency norms.

Employee Stock Option Scheme Framework

The allotment represents the exercise of stock options by employees under the bank's ESOS 2017 scheme. This employee compensation mechanism allows eligible staff members to purchase company shares at predetermined prices, aligning employee interests with shareholder value creation.

The completion of this allotment process demonstrates the bank's commitment to its structured employee compensation programs and adherence to corporate governance standards. Company Secretary Samir P Rajdev signed the official communication digitally, confirming the bank's compliance with regulatory notification requirements.

Federal Bank is set to learn its fate regarding potential inclusion in the MSCI February rejig today, with the announcement scheduled for 3pm. The bank finds itself in a borderline position for inclusion, with significant financial implications at stake.

MSCI Rejig Details

The potential inclusion carries substantial value for the banking institution:

Market Implications

The MSCI rejig represents a critical juncture for Federal Bank, as inclusion in MSCI indices typically leads to increased foreign institutional investment. The borderline status indicates that the bank meets most criteria but may be subject to final evaluation parameters that will determine its inclusion or exclusion from the index.

Timeline and Next Steps

With the announcement scheduled for 3pm today, market participants and investors will be closely monitoring the outcome. The USD 454M valuation attached to the potential inclusion reflects the significant impact such a decision could have on the bank's market positioning and investor base.