South Indian Bank ESOP options totalling 27,36,230 have been granted to 306 eligible employees under Tranche 21 of the SIB ESOS Scheme 2008, the lender said in a BSE filing dated August 21, 2026. The bank's board approved the grant at its meeting on August 20, 2026, as part of non-cash variable pay or incentives for the financial year 2025-26.

The disclosure was submitted under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, following a BSE email seeking additional details on the bank's earlier corporate announcement dated August 20.

Exercise price and option valuation

The bank said an option premium of Rs 30.96 per option was determined using the Black-Scholes model. The options carry an exercise price of Rs 22.50, representing a 50% discount to the market price of Rs 45.

For this calculation, the filing used South Indian Bank's NSE closing price on August 19, 2026. NSE was identified as the exchange recording the highest trading volume in the bank's equity shares, while August 19 was the trading day immediately preceding approval of the grant.

The number of options was also calculated using the Black-Scholes option-pricing model in accordance with prevailing Reserve Bank of India guidelines, according to the filing. If all granted options are exercised, they will cover 27,36,230 equity shares with a face value of Re 1 each.

Vesting and exercise schedule

The options will vest in three stages under the SIB ESOS Scheme 2008:

  • 30% after completion of 12 months from the grant date;
  • 30% after completion of 24 months from the grant date; and
  • 40% after completion of 36 months from the grant date.

Employees may exercise vested options within five years from the respective vesting date. The filing marked options exercised, money realised from exercise, subsequent changes or cancellations, and diluted earnings per share as not applicable at this stage.

The bank confirmed that the scheme complies with the SEBI Share Based Employee Benefits and Sweat Equity Regulations, 2021. Other terms, including the treatment of lapsed options, will be governed by the SIB ESOS Scheme 2008. The August 20 board meeting began at 2:15 pm and concluded at 5:45 pm.

Source: BSE corporate announcement.