HDFC Bank on April 18 said that it will make changes to the employee stock option plan (ESOP), which was originally adopted in April 2022, expanding the powers of the Governance, Nomination and Remuneration Committee (GNRC) with regard to restricted stock units (RSUs).
The name of the Nomination and Remuneration Committee was changed to Governance, Nomination and Remuneration Committee (GNRC) with effect from October 30, 2025
An RSU is 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. It is taxed as ordinary income upon vesting.
Under the new changes, the GNRC will have the authority to decide the treatment of RSUs, which includes 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.
Additionally, the bank has 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.
Moreover, the bank has also 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.
Earlier in the day, HDFC 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.