HDFC Bank on Tuesday said that it has issued over 6.5 lakh equity shares to the employees under the Employees Stock Options Schemes (ESOS). With this, the paid up share capital of HDFC Bank will increase from 548,32,86,460 equity shares of Re 1 each to 548,39,43,660 equity shares of Re 1 each, HDFC Bank also said in an exchange filing. "We wish to inform you that the Bank has allotted today 657,200 equity shares to the employees of the Bank pursuant to exercise of options under its Employees Stock Options Schemes (ESOS)," HDFC Bank added. Shares of HDFC Bank were trading at Rs 935.95, up 6.25 points, or 0.67 per cent on NSE at the time of reporting.
The employee stock option schemes or plans offer employees an ownership interest in the organisation. The employers need to follow stipulated rules to grant employee stock ownership plans to the employees. These are granted to the employees for purchasing a specified number of shares of the company at a defined price after the option period or a certain number of years.
In Q4FY20, HDFC Bank reported 17.7 per cent surge in standalone net profit. The net profit for the fourth quarter was Rs 6,928 crore as against Rs 5,885 crore in the year-ago period. The private sector lender's provisions increased to Rs 3,784.5 crore as against Rs 3,043.6 crore in the previous quarter and Rs 1,889 crore in the year-ago period. HDFC Bank posted 15.4 per cent rise in Q4 consolidated net profit at Rs 7,280.22 crore, up from Rs 6,300.81 crore a year ago.