Allahabad Bank, United Bank to come up with ESOP plans

December 7, 2017

As part of capital raising plans, public sector lenders Allahabad Bank, United Bank have initiated process to make employees stakeholders by way of issuing employee stock option (ESOP).

Kolkata-headquartered United Bank of India and Allahabad Bank today said they will issue such stock options for their employees. The board of directors at a meeting held today approved the proposal to issue up to 5 crore equity shares in one or more tranches by way of ESOP/ESPS, United Bank said in a regulatory filing.

Allahabad Bank said the board of directors of the bank will meet on December 12 to “consider a proposal to convene an extraordinary general meeting of shareholders of the bank for their consent/approval for issue of up to 5 crore new equity shares of bank in one of more tranches by way of employee share purchase scheme (ESPS).

Earlier in March this year, the finance ministry had given its in-principle approval to allow public sector banks to offer stock options to their employees, aimed at retaining experienced hands with better incentives.

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