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 latest allotment on December 28, 2025.

Details of the Latest Allotment

The bank has issued a total of 1,08,461 equity shares under its ESOS 2010 and ESOS 2017 schemes on December 28, 2025. All shares have a face value of Rs. 2.00 each. The allotment breakdown is as follows:

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 communicated the allotment details to both the National Stock Exchange of India Limited and BSE Limited, ensuring compliance with regulatory requirements for listing the newly allotted shares on the stock exchanges where Federal Bank's securities are traded.

Impact on Share Capital

The allotment of 1,08,461 additional equity shares will result in a marginal increase in the bank's outstanding equity shares. Each share carries a face value of Rs. 2.00, representing a total face value addition of Rs. 2,16,922.00 to the bank's share capital.

Employee Stock Option Strategy

Federal Bank continues to use employee stock option schemes as a tool for talent retention and motivation. The bank operates both ESOS 2010 and ESOS 2017 schemes, with the latter accounting for the majority of the recent allotment at 1,05,779 shares compared to 2,682 shares under the older scheme.

Citigroup has revised its investment rating on Federal Bank , downgrading the stock from Buy to Neutral while setting a target price of ₹280 per share.

Rating Change Details

The brokerage firm's decision to lower Federal Bank's rating represents a shift from a positive investment recommendation to a more neutral stance. This change indicates Citi's revised assessment of the bank's near-term prospects and market positioning.

Market Implications

The downgrade from Buy to Neutral suggests that Citi analysts believe Federal Bank's stock may have limited upside potential at current levels. The ₹280 target price provides investors with the brokerage's fair value assessment for the banking stock.

This rating revision comes as part of Citi's ongoing evaluation of banking sector stocks and reflects the firm's updated view on Federal Bank's competitive position and growth prospects within the Indian banking landscape.