Federal Bank has received a penalty order of ₹23,36,830 from the Department of Trade & Taxes, Government of NCT of Delhi, on December 29, 2025. The bank disclosed this development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, indicating the regulatory action's significance.

Penalty Details and Timeline

The penalty order was received by Federal Bank on December 29, 2025, at 10:59 A.M. (IST). The order has been issued under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act, 2017), specifically imposing a penalty under Section 73(9) of CGST Act, 2017, read with relevant sections of IGST Act, 2017.

Bank's Response and Next Steps

Federal Bank has announced its intention to file an appeal against the penalty order. This decision indicates the bank's disagreement with the tax department's assessment. The appeal process will allow the bank to present its case before the appropriate appellate authority.

Financial Impact and Regulatory Compliance

The monetary impact of this regulatory action on Federal Bank amounts to ₹23,36,830. This figure represents the penalty imposed by the tax authorities for the alleged violations under the GST framework.

In compliance with SEBI regulations, the bank has fulfilled its disclosure obligations by providing detailed information about the penalty. The disclosure includes comprehensive details about the nature of the action, the issuing authority, the date of receipt, violation details, and the quantifiable financial impact. This transparency ensures that investors and stakeholders are informed about material developments affecting the bank.

Federal Bank has announced the allotment of equity shares to employees under its stock option schemes. The bank's Nomination, Remuneration, Ethics and Compensation Committee approved the latest allotment on December 28, 2025.

Details of the Latest Allotment

The bank has issued a total of 1,08,461 equity shares under its ESOS 2010 and ESOS 2017 schemes on December 28, 2025. All shares have a face value of Rs. 2.00 each. The allotment breakdown is as follows:

Process and Compliance

The allotment was made to option grantees following their payment for the shares. This move is part of Federal Bank's employee incentive program, aimed at aligning employee interests with those of the shareholders and promoting long-term value creation.

The bank has communicated the allotment details to both the National Stock Exchange of India Limited and BSE Limited, ensuring compliance with regulatory requirements for listing the newly allotted shares on the stock exchanges where Federal Bank's securities are traded.

Impact on Share Capital

The allotment of 1,08,461 additional equity shares will result in a marginal increase in the bank's outstanding equity shares. Each share carries a face value of Rs. 2.00, representing a total face value addition of Rs. 2,16,922.00 to the bank's share capital.

Employee Stock Option Strategy

Federal Bank continues to use employee stock option schemes as a tool for talent retention and motivation. The bank operates both ESOS 2010 and ESOS 2017 schemes, with the latter accounting for the majority of the recent allotment at 1,05,779 shares compared to 2,682 shares under the older scheme.