HDFC Bank Amends Employee Stock Option Plan in Board Meeting

HDFC Bank Modifies Employee Stock Option Plan

HDFC Bank announced on April 18 that it will be making changes to its employee stock option plan (ESOP), which was originally adopted in April 2022. The Governance, Nomination and Remuneration Committee (GNRC) will now have expanded powers regarding restricted stock units (RSUs).

Effective from October 30, 2025, the name of the Nomination and Remuneration Committee was changed to Governance, Nomination and Remuneration Committee (GNRC). RSUs are a form of equity compensation, where employers promise to give employees company shares, subject to certain vesting conditions such as performance goals and time in service. They are taxed as ordinary income upon vesting.

Under the revised changes, the GNRC will have the authority to decide the treatment of RSUs, including cancellation, forfeiture, or modification of vesting rights, based on the outcome of any disciplinary proceedings, in case an employee becomes the subject of a disciplinary proceeding. The original rules indicate that the treatment of RSUs will only be subject to termination of employment, or in case of death, or permanent disability.

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The bank has also revised the criteria for granted RSUs. Employment status, such as employees on sabbatical or other approved leave, will be considered as an additional requirement to grant RSUs. A carve-out is also proposed for newly inducted employees to ensure that the criteria, such as grade, performance, merit, length of service, and such other relevant factors, are not applicable in case of a grant.

Furthermore, the bank has made a change in the maximum number of RSUs that can be granted under the ESOP. The bank is now mandated to grant a maximum of 50,000 RSUs to an employee, compared to 15,000 RSUs (adjusted to 30,000 RSUs post the Bonus Issue) before.

HDFC Bank Posts 9% Rise in Standalone Net Profit

Earlier in the day, HDFC Bank posted a 9% rise in standalone net profit at Rs 19,221 crore for the quarter ended March, compared to Rs 17,616 crore in the year-ago period.

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