Ujjivan Small Finance Bank 's Nomination and Remuneration Committee has approved a significant employee stock option grant under its established compensation framework. The committee, in its meeting held on January 21, 2026, sanctioned the allocation of 2,83,559 stock options under the Bank ESOP Scheme 2019, demonstrating the bank's commitment to employee retention and motivation through equity participation.

Grant Details and Pricing Structure

The approved stock options carry specific terms designed to align employee interests with long-term bank performance. Each granted option provides the right to subscribe for one fully paid equity share upon vesting, creating a direct ownership stake for eligible employees.

The exercise price of ₹54.15 per share was determined using the bank's established pricing formula, representing the lower of two benchmarks: the last trading price on NSE as of January 20, 2026, or the three-month average of volume weighted average price of the bank's shares.

Vesting and Exercise Framework

The stock options follow a structured four-year vesting schedule designed to promote employee retention and sustained performance. The graduated vesting approach ensures employees remain committed to the bank's long-term objectives while providing increasing equity participation over time.

Once vested, option holders have a five-year window from their respective vesting dates to exercise their options and convert them into equity shares. This extended exercise period provides flexibility for employees to optimize their equity conversion timing based on market conditions and personal financial planning.

Regulatory Compliance and Governance

The ESOP grant operates under full regulatory compliance with SEBI guidelines and listing requirements. The scheme aligns with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, ensuring adherence to established governance standards for employee stock option programs.

The bank has fulfilled its disclosure obligations under Regulation 30 of SEBI LODR regulations, providing comprehensive details about the grant terms, pricing methodology, and vesting structure. This transparency supports investor confidence and regulatory compliance while maintaining clear communication about the bank's employee compensation strategies.

Strategic Implications

This ESOP grant represents a strategic human resource initiative aimed at attracting and retaining talent in the competitive banking sector. By offering equity participation, the bank creates alignment between employee performance and shareholder value creation, fostering a culture of ownership and long-term commitment among its workforce.

Ujjivan Small Finance Bank has informed stock exchanges about a key leadership change, announcing the resignation of its Business Head for Micro, Small and Medium Enterprises (MSME) division. The bank filed the mandatory disclosure with both NSE and BSE on January 14, 2026.

Senior Management Departure

Mr. Ashim Sarkar, who served as Business Head - MSME and was designated as Senior Management Personnel (SMP), concluded his tenure with the bank on January 14, 2026. The bank stated that Sarkar resigned to pursue better career prospects and confirmed this as his last working day.

The following table summarizes the key details of the resignation:

Resignation Timeline

According to internal HR documentation, the resignation process began earlier than the effective date. Sarkar originally submitted his resignation on October 17, 2025, with the standard 90-day notice period extending to January 14, 2026. The employee had initially requested an earlier last working day of December 26, 2025, but ultimately served until the full notice period completion.

Regulatory Compliance

The bank filed the necessary disclosures in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. Company Secretary and Head of Regulatory Framework Sanjeev Barnwal signed the official communication to the exchanges.

Ujjivan Small Finance Bank emphasized that no other material reasons exist for the resignation beyond the stated career advancement motivation. The resignation notice and related documentation have been made available on the bank's official website at www.ujjivansfb.bank.in .

MSME Division Impact

The departure affects the bank's MSME business segment, though the bank has not announced immediate replacement plans or interim leadership arrangements for the division. The MSME segment represents a crucial business vertical for small finance banks, focusing on lending and financial services to micro, small, and medium enterprises across India.