The Federal Bank Limited Allots Over 3.19 Lakh Shares Under ESOS on March 15

Mumbai: The Federal Bank Limited has allotted 3,19,613 equity shares to employees after the exercise of stock options under its Employee Stock Option Schemes (ESOS), according to a regulatory filing dated March 15, 2026.

The allotment was approved by the bank’s Nomination, Remuneration, Ethics and Compensation Committee.

Details of Share Allotment

The bank issued shares under two separate ESOS schemes:

• 5,920 equity shares were allotted under the ESOS 2010 Scheme.

• 3,13,693 equity shares were allotted under the ESOS 2017 Scheme.

Each share carries a face value of ₹2.

These shares were issued after the option grantees (employees) exercised their stock options and completed the required payment.

What ESOS Means for Employees

Employee Stock Option Schemes (ESOS) allow employees to purchase company shares at a predetermined price after a vesting period.

Such programs are widely used by companies to:

• Reward employees

• Align employee interests with shareholders

• Retain key talent

When employees exercise their options, the company issues new equity shares, slightly increasing the total share capital.

Impact on Investors

The allotment of 3.19 lakh shares is relatively small compared with the bank’s total outstanding shares, meaning the dilution impact on existing shareholders is minimal.

However, ESOS allotments are generally seen as a positive signal for employee participation and long-term alignment with company performance.

Regulatory Disclosure

The bank informed stock exchanges including National Stock Exchange of India Limited and BSE Limited about the share allotment as part of its regulatory compliance.