Friday, December 28, 2012

Federal Bank grants more than 24lakh shares under ESOS 2010


Mumbai: Federal Bank has offered Employee Stock Options for the second time since the Bank implemented the Employee Stock Options Scheme in 2011. The grant in 2011 was at Rs. 420.65 and at Rs. 474/- in 2012. The unique feature of the Scheme is that it covers all permanent employees of the Bank, which means from the junior most award staff till the Managing Director get an opportunity to own the Banks stock.  While the spirit of the scheme is to enable all employees to become proud owners of the Bank in which they work, it is worth noting that the market has displayed immense faith in the Bank’s performance and its potential to grow and remain profitable.

The maximum permissible number of options that can be granted as per shareholder approval is 5% of the paid up equity share capital of the Bank in aggregate, presently equal to 85,51,650 equity shares

At the time of reporting the share price of Federal Bank stock stood at Rs.542. It may also be noted the Bank that had crossed the landmark of having over a 1000 branches in the country in October 2012, has recently crossed another landmark in having over 10000 employees on the roles of the Bank.  The ESOS is seen as part of the Change Management process, for the Bank to successfully participate in the highly competitive employment market of the Banking Sector. The senior management of the Bank realizes that employees enjoying proprietary interest in the institution in which they work makes them naturally loyal to the establishment and this leads to retention of talent.  

About Federal BankFederal Bank is a leading Private Sector Bank with a branch network of 1023 branches and 1,135 ATMs spread across the country. The Bank had total business of Rs. 86,693 crore as at March 31, 2012. It has Net Worth of Rs. 5,706 crore as at the end of fiscal 2011-12. It recorded net profit of Rs. 776.79 crore during the last financial year. Federal Bank has its Representative Office at Abu Dhabi that serves as a nerve centre for NRI customers in the UAE. Federal Bank is transforming itself, keeping its principles intact, into an organization that offers services beyond par. It has a well defined vision for the future as a guidepost to its progress.

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