South Indian Bank announced on August 20, 2026, the Board’s decision to grant 27,36,230 stock options to eligible employees. This grant, part of the SIB ESOS – 2008 scheme, serves as non-cash variable pay or incentive for the Financial Year 2025-26. The options are priced based on the Black Scholes Model, with an exercise price of ₹22.50, representing a discount to the market price of ₹45.00.
Employee Stock Option Grant Approved
South Indian Bank has received approval from its Board of Directors to grant a significant number of employee stock options. The decision, made on August 20, 2026, authorizes the issuance of 27,36,230 options to eligible employees under Tranche 21 of the SIB ESOS – 2008 scheme. This initiative is designed to serve as a non-cash variable pay and incentive for the Financial Year 2025-26.
Key Terms of the Grant
The stock options are governed by the SEBI (Share Based Employee Benefit and Sweat Equity) Regulations, 2021, and the SIB ESOS Scheme – 2008. The pricing formula utilized is based on the Black Scholes Model, determining an option premium of ₹30.96 per option. The exercise price has been set at ₹22.50, which is 50% of the market price of ₹45.00 as of August 19, 2026.
Vesting and Exercise Schedule
The options will vest in stages: 30% after 12 months, an additional 30% after 24 months, and the remaining 40% after 36 months from the grant date. Employees will have a period of 5 years from the vesting date to exercise their options. The bank has confirmed that these details are hosted on its website as per listing regulations.
Financial Implications
These options, if fully exercised, would result in the issuance of 27,36,230 shares of face value of Re.1 each. The bank has indicated that details regarding diluted earnings per share are not applicable or available at this stage (N.A.).
Source: BSE
