Federal bank Limited has completed the allotment of 61,552 equity shares under its Employee Stock Option Schemes (ESOS) on February 01, 2026. The allotment was executed following approval from the Nomination, Remuneration, Ethics and Compensation Committee and payment of requisite amounts by the option grantees.

ESOS Allotment Details

The share allotment was conducted under two separate Employee Stock Option Schemes operated by the bank:

Regulatory Compliance

The bank has informed both the National Stock Exchange of India Limited and BSE Limited about the share allotment through a formal communication dated February 01, 2026. The notification was filed under Regulation 30 and referenced the bank's scrip symbol FEDERALBNK on NSE and scrip code 500469 on BSE.

Exercise of Stock Options

The equity shares were allotted to option grantees upon exercise of their stock options under the respective ESOS schemes. All allottees completed the payment of money as required for the exercise of their stock options. The allotment represents the conversion of employee stock options into equity shares, providing employees with ownership stakes in the bank.

The communication was signed by Samir P Rajdev, Company Secretary of Federal Bank Limited, and has been submitted to the stock exchanges for record purposes.

Federal Bank has received regulatory approval from the Reserve Bank of India (RBI) for SBI Mutual Fund to acquire a significant stake in the bank. The approval, communicated on January 30, 2026, allows the mutual fund to acquire an aggregate holding of up to 9.99% of the bank's paid-up share capital or voting rights, subject to stringent regulatory conditions.

Regulatory Approval Framework

The bank disclosed this development through a regulatory filing under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The RBI's approval specifically pertains to SBI Mutual Fund's proposed acquisition of shares in Federal Bank, marking a notable institutional investment in the private sector lender.

Mandatory Compliance Conditions

The RBI's approval comes with mandatory compliance conditions that SBI Mutual Fund must strictly adhere to during the acquisition process. These regulatory requirements ensure that the transaction aligns with banking sector guidelines and investor protection norms.

Key compliance areas 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 regulations
• Securities and Exchange Board of India guidelines
• Other applicable statutes and regulatory frameworks

Strategic Market Impact

This conditional approval represents a significant development for Federal Bank's shareholding structure, as it opens the door for substantial institutional investment from one of India's leading mutual fund houses. The 9.99% threshold is strategically important as it represents the maximum stake an entity can acquire without triggering additional regulatory requirements under banking regulations.

The transaction, once completed subject to all regulatory conditions, will strengthen Federal Bank's institutional investor base and potentially enhance its market credibility. SBI Mutual Fund's interest in acquiring a stake reflects confidence in the bank's business prospects and growth trajectory, while the conditional nature of the approval ensures proper regulatory oversight.