Federal Bank Shareholders Approve Warrant Issuance and Executive Compensation Revisions

Federal Bank held its Extra-Ordinary General Meeting (EGM) on November 19, 2025, where shareholders approved six key resolutions, including the issuance of warrants to Asia II Topco XIII Pte. Ltd. and revisions to executive compensation packages.

Warrant Issuance and Special Rights

Shareholders gave their approval for the issuance of warrants to Asia II Topco XIII Pte. Ltd., exercisable into equity shares through a preferential issue on a private placement basis. Additionally, they approved special rights granted to the entity in accordance with SEBI regulations.

Executive Compensation Revisions

The meeting saw the approval of revised remuneration packages for key executives:

Mr. Krishnan Venkat Subramanian (DIN: 00031794), Managing Director & CEO
Mr. Harsh Dugar (DIN: 00832748), Executive Director

Both executives will see changes in their compensation structure effective July 1, 2025.

Variable Pay and Stock Options

Shareholders also approved the payment of variable pay components and the grant of stock options to both Mr. Subramanian and Mr. Dugar.

Voting Results

The resolutions were passed with significant shareholder support:

Resolution	Votes in Favor (%)	Votes Against (%)
Warrant Issuance	99.95	0.05
Special Rights Approval	99.98	0.02
MD & CEO Remuneration Revision	92.42	7.58
Executive Director Remuneration Revision	92.42	7.58
MD & CEO Variable Pay and Stock Options	99.97	0.03
Executive Director Variable Pay and Stock Options	99.97	0.03

Meeting Details

The EGM was conducted through video conferencing and was chaired by Mr. A P Hota, Independent Director and Chairman of the Bank. The meeting saw participation from 75 shareholders, with 5 raising queries or providing comments during the proceedings.

These approvals signal Federal Bank's strategic moves in capital raising and talent retention, potentially positioning the bank for future growth and competitiveness in the banking sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.92%	+2.49%	+8.87%	+31.35%	+33.29%	+343.46%

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 13, 2025.

Details of the Latest Allotment

The bank has issued a total of 99,588 equity shares under its ESOS 2010 and ESOS 2017 schemes on December 13, 2025. All shares have a face value of Rs. 2.00 each. The allotment breakdown is as follows:

Scheme:	Shares Allotted
ESOS 2010:	1,500
ESOS 2017:	98,088
Total:	99,588

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 99,588 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. 1,99,176.00 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 98,088 shares compared to 1,500 shares under the older scheme.