Federal Bank Limited (NSE: FEDERALBNK, BSE: 500469) has announced two new employee stock option schemes and set the date for its 94th Annual General Meeting (AGM). The bank's Board of Directors approved these significant decisions during a meeting held on July 30, 2025.

New Employee Stock Option Schemes

The Board has greenlit two new employee stock option schemes, subject to shareholder approval:

1. ESOS 2025 (Employee Stock Option Scheme 2025):

   • Covers up to 2,45,58,291 options (1% of paid-up equity shares)
   • Exercise price set at fair market value

2. ESIS 2025 (Employee Stock Incentive Scheme 2025):

   • Covers up to 1,47,34,974 options (0.60% of paid-up equity shares)
   • Exercise price set at face value of ₹2 per option

These schemes aim to align employee interests with those of the shareholders and promote long-term value creation.

Key Features of the Schemes

The Nomination and Remuneration Committee (NRC) will oversee the implementation and administration of both schemes.

94th Annual General Meeting

Federal Bank has scheduled its 94th AGM for August 29, 2025, to be held via video conferencing. Key dates related to the AGM include:

• AGM Date: August 29, 2025, at 11:00 AM
• Book Closure: August 23-29, 2025 (both days inclusive)
• Cut-off Date: August 22, 2025, for e-voting eligibility and final dividend entitlement

Investor Meet

The bank has also announced an analyst and investor meet scheduled for August 5, 2025, at Taj Coromandel, Chennai. The meeting will host representatives from various mutual funds, asset management companies, and investment firms.

These developments underscore Federal Bank's commitment to employee engagement and transparent communication with its stakeholders. The new stock option schemes, in particular, demonstrate the bank's focus on aligning employee interests with long-term corporate goals.

Federal Bank has taken a significant leap in enhancing the digital payment experience for its customers by introducing biometric authentication for online card transactions. This innovative move allows customers to complete e-commerce payments using their fingerprint or face ID, eliminating the need for one-time passwords (OTPs) and substantially reducing transaction times.

Streamlined Payment Process

The new biometric authentication system, developed in partnership with fintech companies M2P and MinkasuPay, promises to cut down transaction times to a mere 3-4 seconds. This dramatic reduction in processing time is expected to significantly improve the user experience for Federal Bank's customers during online purchases.

How It Works

To use this feature, customers need to provide one-time consent. The system is compatible with both Android and iOS devices, utilizing the built-in security validation features of these platforms. In cases where biometric verification fails or devices lack biometric setup, the system will default to the traditional OTP method, ensuring a seamless fallback option.

Security and Compliance

Federal Bank assures that this new authentication method adheres to the Reserve Bank of India's two-factor authentication guidelines, maintaining high security standards for online transactions. The biometric data used for verification is stored securely on the user's device, adding an extra layer of protection for sensitive information.

Availability and Future Plans

Currently, the biometric authentication feature is available to Federal Bank debit and credit card holders on select partner merchant platforms. The bank has announced plans for a phased expansion, which will gradually increase the number of merchants supporting this payment method.

Implications for Digital Banking

This initiative by Federal Bank represents a significant step forward in the Indian digital banking landscape. By simplifying the authentication process while maintaining robust security measures, the bank is setting a new standard for user-friendly and secure online transactions. As more banks and financial institutions adopt similar technologies, it could lead to a broader shift in how digital payments are conducted in India.

Federal Bank's introduction of biometric authentication for online card payments demonstrates its commitment to leveraging technology to enhance customer experience and security in digital transactions. As this technology becomes more widespread, it has the potential to reshape the e-commerce landscape in India, offering consumers a faster and more convenient way to complete online purchases.