SBI employees had good news before Diwali: Employees of SBI Card will be given stock options

SBI Card will distribute 3,104,770 equity shares worth Rs.10 each to eligible employees, the company announced today.

Read more: Diwali bonus for central government employees: Who is eligible and how much will they receive?

This was authorized by the company's board's Nomination and Remuneration Committee on October 23, it added.

The distribution will take place through the SBI Card - Employee Stock Option Plan 2019 (ESOP Scheme 2019). These shares have an exercise price of 152.10 per share.

Following this allotment, the company's paid-up capital increased from Rs. 946 crore, which consisted of 94,673,5259 equity shares for 10 each, to Rs. 950 crore, which consisted of 94,984,0029 equity shares worth the same amount.

What is ESOP?

Employee Stock Ownership Plan is known by its full name. In accordance with this strategy, businesses provide their staff with company shares at little to no additional cost, which they can cash out at a set price after a set amount of time.

In India, ESOP taxes are done in advance and are due when shares are exercised or transferred to the employee. When they were initially starting out, companies like Flipkart, Myntra, and others in India offered ESOPs.

Financial performance of the company

For the quarter that concluded on March 31, 2023, SBI Cards and Payment Services reported an increase of 2.7 percent to Rs. 596.5 crore. This contrasts with a net profit of Rs. 581 crore in the comparable quarter of the previous fiscal year.

According to SBI Card's regulatory filing, operating revenue increased by 32% to Rs.3,762.2 crore in the quarter under review from Rs. 2,850.3 crore the year prior.

In the March quarter, total revenue rose by 30% to Rs.3, 917 crore, up from Rs. 3,016 crore in the same quarter last year.

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