South Indian Bank granted 27,36,230 employee stock options to 306 eligible employees under Tranche 21 of the SIB ESOS Scheme 2008, the lender said in a BSE filing on August 20, 2026. The board approved the grant at its meeting held the same day.

The options form part of the employees’ non-cash variable pay or incentive for the financial year 2025-26. The bank made the disclosure under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, subject to the applicable provisions of the SEBI Share Based Employee Benefits and Sweat Equity Regulations, 2021.

If all the options are exercised, they will cover 27,36,230 equity shares with a face value of Re 1 each. The filing said the scheme complies with the SEBI regulations governing share-based employee benefits.

Exercise price and vesting schedule

The bank fixed the exercise price at Rs 22.50 per option, representing a 50% discount to the NSE closing market price of Rs 45 on August 19, 2026. The filing identified NSE as the exchange that recorded the highest trading volume in the bank’s equity shares on the trading day immediately preceding the grant approval.

Based on the Black-Scholes model, an option premium of Rs 30.96 per option was determined for the stated exercise price. South Indian Bank said the number of options was calculated using the same option-pricing model in accordance with prevailing RBI guidelines and based on computation by a registered valuer.

  • 30% of the options will vest after 12 months from the grant date.
  • A further 30% will vest after 24 months.
  • The remaining 40% will vest after 36 months.

Employees may exercise vested options within five years from the respective vesting date.

Other terms disclosed by the bank

The grant and its conditions will remain governed by the SIB ESOS Scheme 2008. Options will lapse in accordance with the provisions of that scheme.

At the time of the filing, no options under this grant had been exercised and no money had been realised from their exercise. Consequently, details concerning shares already issued, diluted earnings per share, subsequent changes, cancellation or exercise were marked as not applicable.

The disclosure was addressed to BSE and the National Stock Exchange, where South Indian Bank trades under the codes 532218 and SOUTHBANK, respectively. The bank also said the filing was being hosted on its website in line with listing regulations.

Source: BSE corporate announcement.