South Indian Bank ESOS grants approved by its board on September 25, 2026, comprise 5,30,916 stock options for Managing Director and CEO P R Seshadri, the bank said in a BSE filing. The grant forms part of his non-cash variable pay for the financial year 2025-26 under SIB ESOS Scheme 2008.

The bank said the Reserve Bank of India approved the non-cash variable pay through a letter dated September 16, 2026. The grant also follows the terms and conditions of appointment approved by the bank’s shareholders.

The options fall under Tranche 22 of the scheme. The Nomination and Remuneration Committee recommended the grant before the board approved it. No options were granted to the part-time chairman or other non-executive directors.

Exercise price set at Rs 23.54

The options carry an exercise price of Rs 23.54, representing a 50% discount to the reference market price of Rs 47.08. That reference was the NSE closing price on September 23, 2026.

The filing identifies NSE as the exchange with the highest trading volume in the bank’s equity shares. September 23 was the trading day immediately preceding the committee’s September 24 meeting, when it approved the registered valuer’s computation and recommended the grant to the board.

Under the Black-Scholes model, the option premium was determined at Rs 32.72 per option. The bank said the number of options was calculated using that model in accordance with applicable RBI guidelines.

Vesting and potential share issuance

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

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

Each vested option may be exercised within five years of its vesting date. Full exercise would result in 5,30,916 equity shares with a face value of Re 1 each.

The filing marks options exercised, money realised from exercise and diluted earnings per share as not applicable. Lapse provisions and other terms remain governed by the scheme, which the bank confirmed complies with SEBI’s Share Based Employee Benefits and Sweat Equity Regulations, 2021.

Source: BSE corporate announcement.