Date: July 14, 2026
Other Operational / Legal / Strategic Disclosures
Ujjivan Small Finance Bank Limited has responded to a voting recommendation dated July 9, 2026, from Institutional Investor Advisory Services (IiAS) regarding Resolution No. 4 for the approval of the 'Ujjivan Restricted Stock Units Plan - 2026' to be considered at the 10th Annual General Meeting.
Key Clarifications Provided:
RSU Plan Details:
- The RSU scheme proposes to grant up to 20.0 million RSUs to senior leadership
- This would result in a 1.0% dilution on the expanded capital base
- Exercise price shall be the face value of the share
Vesting Conditions Clarified:
- Each vesting of RSUs will require the Bank achieving not less than 105% of its budgeted revenue and profit targets, as approved by the Board
- In addition to continued employment, individual performance rating must be at least "Meets Expectations" (ME) and above for final vesting eligibility
- The Committee shall determine performance parameters and assign relative weightages based on employee roles
Disclosure Commitment:
- The Bank commits to disclose in forthcoming Annual Reports:
- The actual targets required for RSU vesting
- The performance achieved against those targets to satisfy the initial vesting condition
- The individual metrics driving the final vesting
Background:
- IiAS had recommended against supporting the RSU resolution due to lack of clarity regarding vesting conditions
- IiAS supported six other AGM resolutions (Resolutions 1, 2, 3, 5, 6 & 7)
- The bank received the IiAS recommendation on July 11, 2026, at 9:30 PM IST
Communication Details:
- The response was addressed to both National Stock Exchange of India Limited and BSE Limited
- A separate clarification letter was sent to Institutional Investor Advisory Services India Limited at their Mumbai address
- The communication was digitally signed by Sanjeev Barnwal, Company Secretary and Head of Regulatory Framework