Federal Bank has announced the allotment of equity shares to employees under its stock option schemes. The bank's Nomination, Remuneration, Ethics and Compensation Committee approved the allotment.

Details of the Allotment

The bank has issued a total of 2,59,532 equity shares under its ESOS 2010 and ESOS 2017 schemes. All shares have a face value of Rs. 2.00 each.

Process and Compliance

The allotment was made to option grantees following their payment for the shares. This move is part of Federal Bank's employee incentive program, aimed at aligning employee interests with those of the shareholders and promoting long-term value creation.

The bank has stated that it will take necessary steps to comply with regulatory requirements, including listing the newly allotted shares on the stock exchanges where Federal Bank's securities are traded.

Impact on Share Capital

While the exact impact on the bank's share capital was not specified in the disclosure, the allotment of these additional shares will result in a marginal increase in the bank's outstanding equity shares.

Federal Bank continues to use employee stock option schemes as a tool for talent retention and motivation, a common practice among companies looking to foster a sense of ownership among their employees.

Federal Bank , a prominent player in the Indian banking sector, has recently made a significant move in its employee stock option programs. The bank has allotted a total of 282,444 equity shares to its employees under two different stock option schemes, as approved by the Nomination, Remuneration, Ethics and Compensation Committee.

Details of the Allotment

The allotment of shares was carried out under two distinct employee stock option schemes:

Process and Approval

The allotment process involved the following key steps:

1. Option grantees made the required payments for the shares.
2. The Nomination, Remuneration, Ethics and Compensation Committee approved the allotments.
3. The company secretary, Samir P Rajdev, officially communicated the allotment details to the stock exchanges.

Implications

Employee Stock Option Schemes (ESOS) are strategic tools used by companies to align employee interests with those of the shareholders. By offering equity shares, Federal Bank aims to:

• Motivate and retain key talent
• Foster a sense of ownership among employees
• Align employee performance with the bank's long-term growth objectives

This move by Federal Bank demonstrates its commitment to employee welfare and long-term value creation for all stakeholders.

Regulatory Compliance

In line with regulatory requirements, Federal Bank has duly informed the National Stock Exchange of India Limited and BSE Limited about these allotments. This transparency ensures that all market participants have access to this material information simultaneously.

The allotment of these equity shares under the ESOS 2010 and ESOS 2017 schemes reflects Federal Bank's ongoing efforts to maintain a competitive edge in talent retention and motivation in the dynamic banking sector.