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.

Federal Bank , in collaboration with fintech company Scapia, has introduced a groundbreaking add-on credit card that offers unprecedented autonomy to family members. This new offering allows primary cardholders to issue up to three additional cards under a shared credit limit, addressing a significant gap in the Indian credit card market.

Key Features of the New Add-On Credit Card

• Individual Control: Each add-on user receives separate virtual and physical cards
• Digital Access: Individual app access and OTPs for each user
• Transaction Visibility: Separate transaction visibility for primary and add-on users
• Reward System: Independent earning and redemption of reward points
• Onboarding Process: Fully digital with instant virtual card issuance
• Physical Card Delivery: Within a week of application

Empowering Family Members

The new credit card solution aims to provide more financial independence to family members who traditionally had limited control over add-on cards. Anil Goteti, Founder and CEO of Scapia, emphasized that this product addresses the limitations in the Indian credit card market where add-on users typically had restricted autonomy.

Strategic Partnership

This launch is part of Scapia's 'travel-first fintech' approach, which integrates payments, travel rewards, and experiences. Virat Diwanji from Federal Bank highlighted that the partnership focuses on creating customer-centric credit experiences, combining financial empowerment with convenience.

Implications for Cardholders

The innovative features of this add-on credit card offer several benefits to families:

This new offering from Scapia and Federal Bank represents a significant step forward in the credit card industry, potentially setting a new standard for family-oriented financial products in India.