Federal Bank has secured a crucial regulatory approval from the Reserve Bank of India (RBI) that will allow ICICI Prudential Asset Management Company Limited, along with group entities of ICICI Bank Limited, to acquire a significant stake in the private sector lender. The approval, received on February 11, 2026, marks an important milestone in the bank's corporate development.

RBI Approval Details

The central bank has granted permission for the acquisition of an aggregate holding of up to 9.95% of Federal Bank's paid-up share capital or voting rights. This approval was communicated to Federal Bank through an official intimation from the RBI on February 11, 2026.

Regulatory Compliance Framework

The RBI approval comes with comprehensive compliance requirements that the acquiring entities must adhere to. The approval is subject to strict adherence to multiple regulatory frameworks governing banking sector investments.

The key compliance requirements 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 provisions
• Securities and Exchange Board of India regulations
• Other applicable statutes, regulations and guidelines

Corporate Governance and Disclosure

Federal Bank has fulfilled its disclosure obligations under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank's Company Secretary, Samir P Rajdev, formally communicated this development to both the National Stock Exchange of India Limited and BSE Limited through official correspondence.

This regulatory approval represents a significant vote of confidence from the ICICI group in Federal Bank's business prospects and strategic direction. The acquisition will bring additional institutional investment into Federal Bank while maintaining compliance with RBI's shareholding guidelines for commercial banks.

Federal Bank Limited has completed another significant allotment of equity shares under its Employee Stock Option Schemes (ESOS). Following the earlier allotment on February 01, 2026, the bank has now allotted 1,62,531 equity shares on February 08, 2026, demonstrating continued employee participation in the bank's ownership structure.

Latest ESOS Allotment Details

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

Previous ESOS Activity

This follows the bank's earlier allotment of 61,552 equity shares on February 01, 2026, which included 2,500 shares under ESOS 2010 and 59,052 shares under ESOS 2017.

Regulatory Compliance and Approval

The latest allotment was executed following approval from the Nomination, Remuneration, Ethics and Compensation Committee and payment of requisite amounts by the option grantees. The bank has informed both the National Stock Exchange of India Limited and BSE Limited about the share allotment through formal communication dated February 08, 2026.

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 under the bank's scrip symbol FEDERALBNK on NSE and scrip code 500469 on BSE for record purposes.