Karur Vysya Bank , a prominent player in the Indian banking sector, has announced the allotment of equity shares under its Employee Stock Option Plan (ESOP) schemes. The bank's Board of Directors approved these allotments during their meeting held on December 12, 2025.

ESOP Allotment Details

The bank made two separate allotments under different ESOP schemes, totaling 80,078 equity shares:

Employee Benefits and Executive Compensation

The majority of the allotment, comprising 63,420 equity shares, was allocated to various employees who exercised their stock options under the KVB ESOS 2011 Scheme. This reflects the bank's commitment to employee participation in the organization's growth through equity ownership.

Additionally, 16,658 equity shares were allotted to Shri B Ramesh Babu, the bank's Managing Director and Chief Executive Officer, under the KVB ESOS 2018 Scheme. These shares represent the non-cash component of his variable pay for the financial year 2022-23, as per his compensation structure.

Regulatory Compliance and Board Meeting

The bank communicated this development to stock exchanges in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board meeting commenced at 2:30 PM and concluded at 8:00 PM on December 12, 2025.

Bank's Financial Position

To provide context on Karur Vysya Bank's financial standing, here's a snapshot of key balance sheet items:

The bank has demonstrated consistent growth across key financial metrics, with total assets increasing by 13.19% year-over-year. This solid financial foundation supports the bank's ability to implement employee-friendly policies such as ESOP schemes, which help align employee interests with organizational performance.

Karur Vysya Bank (KVB) has announced a significant move in its executive compensation strategy. The bank's Nomination and Remuneration Committee has approved the granting of 52,017 stock options to B Ramesh Babu, the Managing Director & CEO, as part of his variable pay package for the fiscal year 2024-25.

Key Details of the Stock Option Grant

• Number of Options: 52,017
• Scheme: KVBESOPS 2018
• Price per Option: Rs. 247.03 (based on the closing price on 04.12.2025 at NSE)
• Purpose: Non-cash component of variable pay for FY 2024-25

Vesting Schedule

The stock options will vest over a three-year period, as follows:

Each option, upon vesting, will be convertible to one equity share of the bank. The vested options will be immediately credited to B Ramesh Babu's demat account on the respective vesting dates.

Compliance and Approval

This grant of stock options is in accordance with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. Moreover, the compensation structure for the MD & CEO has been approved by the Reserve Bank of India, ensuring regulatory compliance.

Financial Context

While this news primarily focuses on executive compensation, it's worth noting some key financial metrics of Karur Vysya Bank:

The bank has shown growth across these key areas, which provides context for the decision to grant stock options as part of the executive compensation package.

This move by Karur Vysya Bank aligns the interests of its top executive with those of the shareholders, potentially incentivizing long-term performance and value creation for the bank.