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.

Karur Vysya Bank (KVB) has strengthened its market presence by inaugurating two new branches on November 27, 2025. The expansion includes new locations in Melapalayam, Tirunelveli district of Tamil Nadu, and Sarpavaram Junction, Kakinada in Andhra Pradesh. This strategic move has increased the bank's all-India branch network to 898, underlining its commitment to growth and financial inclusion.

Expansion Details

Comprehensive Banking Services

The newly opened branches are set to offer a wide range of banking services, including:

• Savings and current accounts
• Deposit facilities
• Loan products
• Retail banking services
• Institutional banking services
• Consumer lending options

This comprehensive suite of services aims to cater to the diverse financial needs of customers in these regions, ensuring that both basic and specialized banking transactions can be efficiently handled under one roof.

Digital Banking Solutions

In addition to traditional branch banking, KVB is also focusing on digital solutions to enhance customer experience:

• KVB DLite Mobile Banking app with over 150 features
• Internet banking facilities
• Secure and seamless access to banking services

These digital offerings complement the physical branch network, providing customers with modern and convenient banking options.

Strategic Importance

The expansion into Tirunelveli and Kakinada is part of KVB's broader strategy to strengthen its presence in potential markets and drive financial inclusion across regions. This move is particularly significant for the bank's growth in Tamil Nadu and Andhra Pradesh, two key markets in South India.

Conclusion

Karur Vysya Bank's branch expansion reflects its commitment to combining traditional banking values with modern financial solutions. By increasing its physical presence while also offering robust digital services, KVB aims to meet the evolving needs of its customers and contribute to the economic growth of these regions.

As the banking sector continues to evolve, KVB's strategic expansion and focus on both physical and digital channels position it well to serve a wider customer base and compete effectively in the dynamic Indian banking landscape.