a-fine-balance-between-equity-and-efficiency
01 Feb 2026
The allotment of 61,552 equity shares under Federal Bank Limited's Employee Stock Option Schemes (ESOS) has been completed on February 01, 2026. The allotment was carried out following approval from the Nomination, Remuneration, Ethics and Compensation Committee and payment of requisite amounts by the option grantees.
Federal Bank Limited has informed both the National Stock Exchange of India Limited and BSE Limited about the share allotment through a formal communication dated February 01, 2026. The notification was filed under Regulation 30 and referenced the bank's scrip symbol FEDERALBNK on NSE and scrip code 500469 on BSE.
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.
Federal Bank Limited has received regulatory approval from the Reserve Bank of India (RBI) for SBI Mutual Fund to acquire a significant stake in the bank. The approval, communicated on January 30, 2026, allows the mutual fund to acquire an aggregate holding of up to 9.99% of the bank's paid-up share capital or voting rights, subject to stringent regulatory conditions.
The RBI's approval comes with mandatory compliance conditions that SBI Mutual Fund must strictly adhere to during the acquisition process. These regulatory requirements ensure that the transaction aligns with banking sector guidelines and investor protection norms.
This conditional approval represents a significant development for Federal Bank's shareholding structure, as it opens the door for substantial institutional investment from one of India's leading mutual fund houses. The 9.99% threshold is strategically important as it represents the maximum stake an entity can acquire without triggering additional regulatory requirements under banking regulations.
The transaction, once completed subject to all regulatory conditions, will strengthen Federal Bank's institutional investor base and potentially enhance its market credibility. SBI Mutual Fund's interest in acquiring a stake reflects confidence in the bank's business prospects and growth trajectory, while the conditional nature of the approval ensures proper regulatory oversight.
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