Federal Bank Ltd Management Discussions

The net interest income of your Bank registered a growth of 14% YoY and Non-Interest Income grew by 23% YoY. Fee for the same period improved by 24%. During the financial year, your Banks spread on advances (net) is at 3.11% and spread on investments (gross) is at 1.51%. Net profit registered 9% growth.

Your Bank ended the Financial Year with decadal best Asset Quality Ratios. The asset quality metrics improved during the FY, with reduction in NPA ratios year on year. The Gross NPA of your Bank as on March 31, 2025, stood at C 4,376 Crore. Gross NPA as a percentage to Gross Advances is at 1.84%. The Net NPA stood at C 1,040 Crore and this as a percentage to Net Advances is at 0.44%. Provisions (excluding technical write-offs) improved by 429 bps to reach 75.37%.

Key Ratios (in %)

Return on Average Total Assets during the year stood to 1.23%. Return on Average Equity is at 13.03%. Earnings per share improved to C 16.54 from C 16.07, while book value per share increased to C 134.87 from C 119.45.

Deposits growth held up well for your Bank during FY 2024-25 with Total Deposits growing by 12% Y-o-Y, Core Deposits constituting 98% of Total deposits and Term Deposits growing by 11%.

Advances ( C in Crore)

Your Bank continued to reshape the credit book; Retail to Commercial to Corporate Ratio now at 56:11:33. Retail Book grew by 14%, Commercial book at 27% YoY and Corporate at 8%.

Capital Adequacy Ratio at 16.40% stood well above the regulatory minimum requirement of 11.50%, including a Capital Conservation buffer of 2.50%.

Balance Sheet Parameters ( C in Crore)

Total assets increased by 13% to reach C 3,49,005 Crore as on March 31, 2025, from C 3,08,312 Crore on March 31, 2024, driven by 12% growth in Net Advances and increase in investments by 9% to reach C66,246 Crore as on March 31, 2025.

Going forward, global financial market volatility, geopolitical tensions, trade fragmentation, supply chain disruptions and climate-induced uncertainties pose downside risks to the growth outlook and upside risks to the inflation outlook. Despite these challenges, the Indian economy is poised to remain the fastest-growing major economy in 2025-26 by leveraging its sound macroeconomic fundamentals, robust financial sector and commitment to sustainable growth. The Central Bank has also contributed to sustaining this growth by front-loading interest rate cuts and facilitating faster monetary policy transmission through the infusion of approximately C2.5 Lakh Crore in liquidity, enabled by a phased reduction in the Cash Reserve Ratio (CRR) from September 2025 onwards in four tranches. Despite rate cuts, credit growth may experience a moderation in FY 2025-26 as NBFC and unsecured loans slow down and newer regulations such as higher LCR provisioning and revised project finance norms come into play. The weakness in the MFI segment could lead to further caution among lenders. Lenders with strong underwriting processes and clean balance sheets could outperform peers in the coming years. As interest rates fall, efficient pricing of assets could also play an important role in sustaining margins and profitability. Amid increasing product standardisation within the industry, banks that maintain a strong relationship-driven approach may outperform their peers.

The Corporate and Institutional Banking division provides a comprehensive suite of financial products and advisory services to large business houses, mid-sized corporates, multinational corporations (MNCs), capital market clients, public sector undertakings (PSUs), and financial institutions. This division offers tailored products and services encompassing working capital, term funding, structured finance, cash management, trade finance and foreign exchange services, all supported by robust electronic banking solutions that facilitate seamless onboarding and customer journey. The distribution network is expanding through the Relationship Management structure to deeper geographies and multiple servicing touchpoints, addressing the entire value chain across different customer segments. We also serve our clients overseas funding requirement through our GIFT City presence in Gandhinagar, Gujarat by way of various products and services.

Your Bank established a Syndication desk this year to develop sourcing and sell down capabilities. It is expected to help us originate structured deals while retaining flexibility to monetize assets through partial or full sell downs, generate fee income, deepen client engagement and scale our structured business solution efficiently. Your Bank has rolled out a robust and highly secure corporate internet module to enhance customer engagement and experience. Also rolled out Bulk Direct Tax functionality for corporate customers allowing them payment of TDS/ Advance Tax challan in one go, in alignment with the philosophy of "Digital at the Fore, Human at the Core." During FY 2024-25, Corporate exposures increased to C 85,571 Crore from C 79,236 Crore, registering a growth of 8% YoY. Fee

income grew by 24% YoY to 416 Crs. Asset quality continues to be robust with 0.12% GNPA. This vertical aims to be the preferred banking partner for its clients, using a robust client selection strategy and a sound credit underwriting process that are reflected in its asset quality.

The Commercial Banking vertical serves Mid corporate and MSMEs, a key focus area for the Bank. With a dedicated relationship structure, geographic reach and a wide range of products—working capital, term loans, trade finance, advisory services, cash management, supply chain finance, foreign exchange, structured offerings, gold metal loans and bespoke liability products — the Bank ensures lasting client relationships. Relationship Managers use data insights and alerts to provide customers with the right products and timely solutions.

It is identified as a focused initiative in expanding the Banks coverage of the corporate and mid-corporate ecosystem to achieve higher risk-adjusted returns. The Bank offers a variety of products, such as dealer finance, vendor finance, factoring and payable finance through a fully digital end-to-end integrated supply chain finance platform for corporate clients and their vendors and dealers. The Bank incorporates robust risk management practices such as invoice dedupe check, invoice verification functionalities etc in managing its portfolio, aiming to enhance asset quality, reduce concentration risk and build a more granular book.

During FY 2024-25, this business stepped up further with a closing advance position of C 27,199 Crore as against C 21,457 Crore as on March 31, 2024, registering a growth of 27% YoY. Fee income grew by 14% to C 190 Crore in FY 2024- 25. Asset quality continues to improve further with reduction in GNPA by 71 bps to 2.07%. The business maintains a diversified and a granular portfolio across various sectors and regions. Your Banks emphasis on Commercial Banking will ensure it remains the "Bank of First Choice" for all its clients.

The Commercial Vehicle and Construction Equipment Finance business vertical continues to maintain a strong PAN-India presence through a combination of dedicated Relationship Managers, branch-led operations, and strategic partnerships. The vertical operates in a sector that is steadily growing, supported by urbanisation, large-scale infrastructure initiatives, and growth in the logistics sector. In FY 2024–25, the CV/CE sector sustained its growth trajectory, with increasing demand for customised financing solutions. In this context, your Bank has reinforced its position as a market leader in a niche market, leveraging on its financial expertise and customer-centric approach. As we move into FY 2025-26, the CVCE sector may get a bit unpredictable because of geopolitical reasons. However, our bespoke financing facilities cater to a diverse clientele, ranging from first-time users to strategic partners, providing unwavering support for their business aspirations.

The vertical recorded a 35% year-on-year increase in AUM, rising from C3,442 Crore as on March 31, 2024 to C4,644 Crore as on March 31, 2025. This growth reflects both our operational strength, and the growing trust reposed in us by our clientele. The portfolio remains high quality, driven by prudent customer selection and the Banks commitment to rigorous risk management practices. It underlines our strategic focus on asset quality, financial discipline, and long-term growth.

Priority Sector Lending (PSL) Focus: With 78% of the CV/CE portfolio qualifying under Priority Sector Lending norms, the Bank reaffirms its commitment to enabling financial inclusion and supporting the socio-economic upliftment of underserved and rural markets.

Strategic Collaborations: Partnerships with NBFCs have expanded our reach across emerging markets, while maintaining portfolio quality through rigorous credit standards. These alliances enable access to new customer segments and drive scale efficiently.

Industry Partnerships: Long-standing relationships with prominent OEMs in the CV/CE space, combined with collaborations with insurance providers for vehicle and portfolio health, strengthen your Banks position as a trusted and comprehensive financial partner. These integrated offerings enhance customer engagement and support end-to-end ownership solutions.

At the core of this CV/CE Business is a team of highly skilled professionals, with extensive experience in business acquisition, credit underwriting, collections, and recovery. This team is committed to providing exceptional service and tailored solutions for the banks esteemed clients.

Government & institutional Business Department focuses on providing end-to-end solutions to Government Departments and Institutions, thereby building CASA and Term Deposits. This Department is managed through Relationship Managers posted across the country and touchpoints to canvass liability business from Central & State budgetary allocations and Local and State Government offices like Panchayats, Municipalities, TASC organisations etc. Your Bank offers bespoke CASA products exclusively designed to suit the needs of the Government & Institutional entities. The Department actively engages with Government Departments to digitalise various operations for the Government functioning and ensure last mile connectivity. During last year, your Bank grew its GIB business book by 51% to reach C 16,902 Crore.

Bank has gone live on Schematic Bank Account Management System, West Bengal (Phase II – Payments)

Live in Bulk challan upload functionality with CBDT

Solution for Tax collection of all Municipal Corporation in state.

Automation of Agency Commission Claims for CBDT, CBIC & State Treasury

Live on Customs Voluntary Payments

Bank has received permission to Release funds under the State Schemes for Govt of Goa

Bank has received permission to conduct Government Business in the State of Haryana

Bank has received Authorization for placement of funds by Government departments/ Corporations/ Boards/ Local Bodies/ Agencies etc. in the state of Punjab

Bank is appointed as an Agency Bank for Government of Chhattisgarh

Empanelled with Government of Gujarat for acceptance of Bank Guarantee issued by the Bank

Alternate PG channel for State treasury receipts.

The department plans to focus on embracing advanced digital solutions for seamless operations, enhanced security, improved Government control over the funds deployed, and collection of dues. Your Bank plans to expand the range of financial products and services offered to government and institutional clients with certain tailor-made products to suit specific requirements of the Institution. Further focus will be provided on fostering strong relationships with existing client base while actively seeking opportunities to onboard new government and institutional partners. By implementing these strategies, your Bank can position itself as a trusted partner in driving financial innovation, supporting economic growth, and fostering sustainable development in our Country.

Business Banking comprises business loans up to H10 Crore (working capital loans) and H20 Crore (term loans), mainly Micro, Small and Medium Enterprises. The segment registered a growth of 11 %, disbursing nearly 12,000 loans during FY 2024-25, of which 50% of loans were disbursed to New to Bank customers. Business Banking focused on granular growth and remained one of the focus medium-yielding portfolios of your Bank in FY 2024-25. The average ticket size is C 73 Lakh and comprises of nearly 37,000 accounts of more than 23,000 customers. While the business was being driven majorly through the traditional stronghold of the Banks branches in the past, the vertical now has a capable channel of Sales Managers in strategic locations who have evolved into a significant contributor. 7 Territory Sales Heads, and their team of 55 Sales Managers are focused exclusively on adding New to Bank Customers to our fold. Strategic tie-ups have also contributed to additional sourcing from unexplored markets.

Your Bank is actively engaged in introducing and improving the loan products to meet the market demand and to boost the economy. To cater to the specific requirements of borrowers from various geographies and sectors, your Bank introduced suitable tailor-made products. Scope of CGTMSE loans offered under credit guarantee scheme has been increased. Loan scheme for funding solar installation with alternate assessments, as an extension of existing Green Loan scheme, Loan scheme in association with Maharashtra State for funding under MAGNET project, Flex-E-Credit-short term collateral free working capital for existing borrowers etc. were new initiatives. The Business Banking Department of your Bank is also keen in ensuring environmentally friendly approach in all its lending, disassociating from all environmentally detrimental projects based on its exclusion list. First phase of digitisation of documentation of business loans involving e-signing has been accomplished and will be scaled up in the future. Various other refinements in enablers includes, standardisation of credit delivery, increased coverage of simplified auto renewal of working capital limits, introduction of auto limit enhancement for working capital limits, enrolment of trade finance RMs dedicated for Business Banking customers etc have paved way for improved borrowing experience for the borrowers. In the previous financial year Business Banking inked the first co-lending arrangement with our new NBFC partner – ECOFY, for sourcing solar based green loan, which is part of the sustainable finance book. Going forward, your Bank intends to keep the momentum of growth upward and scale business into all geographies by enhancing the robust sales team structure and creation of supporting service centres. Digitisation and refinements in various operational process aspects are also in the pipeline.

In fiscal year 2025, your Bank recorded a remarkable 12% increase in deposits, outpacing the industrys 10% growth. Concurrently, the Bank bolstered its market share in deposits by 3 basis points year-on-year. Banks CASA portfolio has exhibited a year-on-year growth of 16%, with CA growth at 35% Y-o-Y. Bank introduced a new savings product called Esteem, designed as a theme-based account targeting resident individuals aged 55+. Bundled with insurance offerings and other attractive features, Esteem quickly gained popularity in the market. Since its launch in November 2024, the scheme has attracted approximately 6,870 New-To-Bank (NTB) customers. Bank launched new CA variants with inbuilt sweep facility and RERA Accounts, with which current account (CA) portfolio is set to benefit significantly. Despite shifts in migration and settlement trends affecting the industry, the bank successfully upheld its strong foothold in the Non-Resident (NR) sector, achieving 10% growth in NR Savings during FY 2024-25. In Feb 2025, your Bank uneveiled the Prospera NRE Savings Account, a specialised offering tailored for the emerging affulent NRI segment. This account got excellent response and bank could open over 3,200 new accounts within weeks. By skilfully adapting to evolving customer preferences in terms of currency and deposit tenure, the FCNR portfolio displayed strong growth. Moving forward, the NR segment will also remain as a priority, with dedicated efforts to broaden the NR customer base through various initiatives. By identifying key NR hubs across the nation and leveraging the expanding network, your Bank is successfully connecting with a fresh segment of customers. In FY 2024-25, we added 85 Banking outlets, strategically located in high-potential areas for swift returns, poised to significantly contribute to our balance sheet starting FY 2025-26.

In FY 2024–25, your Bank facilitated more than H2 trillion in cross-border inward remittances through the Rupee Drawing Arrangement (RDA) and established partnerships with six new remittance companies across the UAE, Kuwait and the USA. With a network of 93 global partners, these arrangements provide the

Indian diaspora abroad with cost-effective and seamless remittance services to India.

The retail advances of your Bank grew by 10% reaching C 69,268 Crore, forming 29% of the total advances of your Bank. The retail book has seen good traction across all its major products. While Housing Loans and Retail Loans against Property (Retail LAP) continue to be the major components of the retail loan book with a combined share of around 60%, there has been an improvement in the share of Unsecured products thus ensuring improved margins with limited impact on Credit Cost. During the year, the Housing Loan portfolio crossed C 29,500 Crore, registering a growth of 7%, the Retail LAP portfolio crossed C 14,000 Crore, registering a growth of 20%, and the Auto Loan portfolio grew by 18%, crossing C 8,500 Crore in book size. Your Bank continues to refine products/policies and streamline the internal processes and digital capabilities, thus ensuring better productivity and reduced cost of acquisition. During FY 2024-25, as a part of improving the Turn Around Time (TAT) for mortgage loans, your Bank initiated the process of redefining and digitising the entire Loan Origination System. Additionally, End to End Digitised HL Top Up platform was also introduced as one of the means to offer Top Up facilities to existing Housing Loan customers without the need for additional documentation. This platform is now made available to the Sales Distribution channel thus ensuring increased penetration of the product. Your Bank had also digitised the valuation process thus ensuring improved TAT without impacting the quality of the valuation offered by the vendors. At present, 98% of valuation under Retail Mortgage loans are done through this platform. As part of your commitment towards embracing and enhancing the digital journey in Mortgage loans, your Bank had developed an in-house application for housing project approvals; this will streamline the project approval process with better Turn Around Time (TAT) and help distribution channels to garner the business directly from Builder Projects. The portal has now been successfully integrated with the Loan Origination System (LOS). This integration is expected to enhance data accuracy, reduced processing time, and improved overall user experience. Further, we have also automated EMI refixing process, this automation improved customer satisfaction. For enhancing the Auto loan business, your Bank continues to tie up with all the major OEM players including Maruti, Honda, TATA, Hyundai and Toyota Motors. Additionally, to give focus on the higher yield retail segment, your Bank had created a new product - loan against car, and along with used car funding, this is expected to improve the share of High Yield products under the Vehicle segment.

The credit card and debit card business of your Bank continues to be a significant source of revenue and growth. Your Bank offers a wide range of credit and debit cards with various rewards programs to cater to the diverse needs of its customers. During FY 2024-25, your Bank witnessed growth in its credit card business and continues to garner market share in both credit & debit card businesses. The credit card business of your Bank witnessed steady growth during the year. Your Bank continued to focus on acquiring new customers and co-orgination credit cards to existing Savings Bank customers of the Bank through innovative marketing strategies, attractive rewards programs, and superior customer service. Your Banks credit card portfolio comprises a mix of premium, classic, and co-branded cards curated for young professionals, family and HNI segments, with features such as cashback, travel rewards, and discounts on dining and shopping. During the year, your Banks credit card business witnessed an increase in spends and could achieve total spends of around C 20,000 Crore in the Credit card portfolio during FY 2024-25. Sourcing of new credit cards, balance outstanding & spends are close to double over last FY. Your Bank has set up best-in-class features for its credit card business consisting of a fully digital onboarding journey, instant issuance of virtual credit cards, differentiated reward point structure, dynamic APR, etc to name a few. The Bank currently issues credit cards on a secured and preapproved basis to existing customers. New customers to your Bank can also complete their onboarding journey and get a card issued on a fully digitised platform, which requires only a few clicks. Your bank has launched Federal Bank WAVE RuPay Credit Card which is a floater card that is issued on the primary VISA and MasterCard of the customer. Your Bank is on the cusp of rolling out several initiatives shortly, including the launch of new cobranded credit card partnerships, to continue to gain market share and be a significant player in the credit card industry. Your Bank has been expanding opportunities in both organic as well as co-branded credit cards through Fintech partners over the past couple of years. Based on the significant regulatory changes effected last year and the pursuant regulatory guidance issued to us, your Bank is revamping and upgrading the current delivery architecture in Fintech arrangements and further enhancing the controls. Your Bank has restarted business with one of the Fintech partners this FY and this is expected to provide an opportunity to run the credit card business to the satisfaction of the customers by meeting all regulatory requirements. The Debit card business of your Bank witnessed a drop of 4% in spending during the year whereas industry spends on debit cards dropped by 16%, primarily due to proliferation of UPI as a mode of payment. Despite this, continuous efforts to curate and share top notch offerings has resulted in your Bank continuing to be the 4^th largest Private Sector Bank in terms of Debit Card spends. Your Bank continued to focus on offering superior customer service and innovative features such as cashback on transactions, and discounts on shopping and dining.

The Bank offers a diverse portfolio of insurance products, including life insurance, health insurance, and general insurance. These offerings are designed to help customers mitigate financial risks and safeguard their financial well-being. Enhancing Product Per Customer (PPC) metrics and delivering the right products through appropriate channels — such as Branch Banking, Digital Platforms, and Telesales—remain key strategic priorities. During FY 2024–25, the Bank achieved a total business fee income of C241.47 Crore through the distribution of insurance and para-banking products. Notably, insurance distribution emerged as the largest contributor to non-banking fee income, accounting for C232.83 Crore.

The Bank has partnered with TATA AIA Life Insurance Co. Ltd. and Bajaj Allianz Life Insurance Co. Ltd. under a Corporate Agency arrangement to offer life insurance products.

The Assets Under Management (AUM) under Banks referral arrangement with Equirus Wealth Pvt Ltd (EWPL) for Wealth

Management Services (WMS) has surpassed C6,100 Cr as of March 31, 2025, witnessing a YoY growth of 23%. The total number of active customers who are availing WMS under the EWPL arrangement were 29, 800 reflecting a YoY growth of 28% as on 31^st March 2025. The Bank also has C600 Cr of Mutual Funds AUM under its own ARN as on 31^st March 2025. The total fee income achieved under WMS was C26.6 Cr, representing YoY growth of 30%.

Agriculture, with its allied sectors, continues to be an essential sector of the Indian economy, employing nearly three-quarters of the population and contributing significantly to the countrys GDP. India has a rich agricultural history dating back thousands of years, and its agricultural practices have evolved to meet the challenging needs of the population. India continues to be a dominant player globally in terms of export of Agri commodities. Your Bank is committed towards giving additional focus on this sector which holds a significant place in the Indian economy. Your Bank offers all types of Agricultural products suitable for the farmer community to cater to their pre- and post-harvest requirements, infrastructure facilities, allied and ancillary related activities, etc which are delivered through the distribution channel spread across the country well supported by a specialised team of Agricultural relationship managers. Your Bank was one of the pioneers in introducing the instant KCC digital product that has revolutionised the approach towards rural lending. Faster delivery of rural credit to the underserved was always a challenge in agricultural lending. To address this, your Bank has introduced digital version of the Kisan Credit Card scheme in association with Reserve Bank Innovation Hub (RBiH), which presents a new experience to the farmer in terms of credit delivery. The entire process, which is a paperless, seamless one, takes the farmer through a digital journey starting from onboarding the customer to disbursement of the loan. Your Bank has entered into various partnerships to expand the digital journey and to cater to the varied needs of the farming community. Agricultural advances of your Bank have registered a growth of 9% in FY 2024-25 with an outstanding of C 8,209 Crore as on March 31, 2025, against the base figure of C 7,514 Crore. Your Bank continued its focus on priority sector lending overachieving the targets for Priority sector and Agriculture lending. In the way forward, your Bank proposes Pan India expansion of Agricultural lending both through conventional and digital mode exploring newer geographies and new strategic partnerships. Your Bank is working on innovative models to explore the opportunities in Agri value chains concentrating mainly on plate to plough model of cultivation which would be demand driven. Bank also has future plans for collaborating with the corporates involved in the value chain and utilising the possibilities of structured finance lending models.

Your Bank continued its strong momentum in the gold loan segment, registering a robust Year-on-Year growth of 21% at a healthy yield of 10%. This performance underscores Your Banks unwavering focus on innovation, customer-centricity, and channel diversification. Furthering its legacy of pioneering initiatives, your Bank introduced multiple digital and operational enhancements that have streamlined processes and elevated customer experience. The launch of specialized modules and platforms has simplified the gold loan journey for both customers and employees, enhancing transparency, compliance, and process efficiency. The expansion of strategic partnerships through fintech collaborations and sales channels has played a vital role in scaling the business. Your Bank deepened its engagement with its various partners, enabling a wider reach and quicker service delivery across geographies. As a forward-looking institution, your Bank is actively working on a next-generation gold loan processing and operational suite aimed at simplifying processes, strengthening compliance, and enhancing effectiveness across the value chain. Your Bank is also set to scale its CLM model, introduce innovative long-tenure schemes, and expand into strategically chosen markets across the country. Through its relentless pursuit of excellence and customer-first philosophy, your Bank continues to redefine the gold loan landscape—setting new benchmarks in growth, service quality, and digital innovation.

Your Bank is committed to ensuring that services offered are unbiased and available to all facets of the society. Your Bank has been a trail blazer when it comes to identifying prospects and leveraging digital technology along with current trends and translating them into profitable business. Ensuring the essence of the motto of ‘extending credit where credit is due through various initiatives driven through both Branch and agency channels, your Bank has made meaningful impact on lives of people. Through a network of 21 Corporate partners including Business Correspondents (BC), Co lending partners, exclusively for sourcing and servicing of the small value loans through Loan Origination

Systems- Fedmi and Mifix as well as Fedmithra, an in-house Loan Origination System for BC led MSE lending, your Bank is now transforming lives of people across 23 States and 2 UTs. Your Bank has exhibited resilience and adaptability to the diverse industry trends showcasing a growth of 19% Y-o-Y with an outstanding balance of C 4110 Cr.

Financial Inclusion initiatives aim to ensure access to financial services including timely and adequate credit delivery to underserved sections of the society including women, weaker sections and low-income groups of the society at an affordable cost. Accepting social commitment as a core philosophy, 212 Rural branches of your Bank conduct financial literacy camps regularly on the topic ‘Going Digital on third Friday of every month.

In consonance with RBI directives on Financial Literacy Centres (FLCs), your Bank has established a Trust namely "Federal Ashwas Trust" with an objective of establishing and managing "Federal Ashwas Financial Literacy Centres" (FAFLCs) to provide unbiased, fair and coordinated financial education through financial literacy classes and credit counselling. The FAFLCs managed by the Trust help the public to understand finance and address their banking needs in a better way, enabling them to be fully equipped to meet their individual financial challenges. They aim to educate the public regarding the dangers of incurring disproportionate debt, borrowing from the informal lenders etc., to name a few. Federal Bank has currently 22 Federal Ashwas Financial Literacy Centres pan India with 19 centres functioning in the state of Kerala and the one each in Tamil Nadu, Maharashtra & Gujarat.

Your Banks FAFLCs ensure that the target segments, which includes farmers, micro & small entrepreneurs, self-help groups, senior citizens, and school children, are provided a deeper insight into various Banking products and initiatives, without bias. During the financial year that ended on March 31, 2025, FLCs could conduct around 2,649 literacy classes, and 1,111 counselling sessions (including Tele counselling), benefitting more than 1.56 Lakh people. Your Bank has participated in the Financial Literacy Week (FLW) observed by RBI from February 24 to 28, 2025 across the country. The theme for FLW 2025 was ""Financial Literacy - Womens Prosperity", with a focus on Financial Planning, Saving and risk management as well as Availing credit for growth for homemakers, working women and women entrepreneurs respectively. Your Bank offers Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts to the public with an overdraft (OD) facility available to eligible customers (mainly to weaker sections & low-income household groups), up to C 10,000/-, with an objective to ensure access to financial services, namely savings & deposit accounts, remittance, credit, insurance and pension in an affordable manner. The PMJDY scheme is a zero-balance Bank account with added RuPay debit card and comes with free accidental death insurance cover of C 2 Lakh. Till date, your Bank had opened 7,21,493 PMJDY accounts with an outstanding balance of C 398.91 Crore. The average balance in PMJDY accounts as on March 31, 2025, is C 5,529.17/-.

Your Bank actively promotes the PMs social security schemes Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana (APY). The PMSBY and PMJJBY schemes provide low-cost insurance benefits to the public for death or disability due to accident and for death due to any reason respectively. Atal Pension Yojana (APY) is the Government backed pension scheme provided to the unorganised sector. Your Bank had launched the WhatsApp enrolment model for APY which is the first of its kind in the entire industry. Your Bank has launched API based E-APY services in association with Protean eGov Technologies Limited to facilitate real time enrolment under APY with instant PRAN allotment. As of March 31, 2025, the total fresh enrolment under PMJJBY, PMSBY and APY are 24,201, 64,145 and 53,092 respectively. Your Bank was awarded the prestigious ‘Exemplary Milestone award and ‘Award of Persistent Leadership for the outstanding performance under Atal Pension Yojana during the Financial Year 2024-25 by PFRDA. It is also a matter of great pride that Your Bank emerged as the winner in the ‘Best Financial Inclusion category among Medium Banks during the 20^th Banking Technology Conference, Expo and Citation conducted by Indian Banks Association (IBA).

Treasury manages the crucial functions of maintaining the statutory reserves as well as liquidity of the Bank under close coordination of ALCO by raising resources required to support the credit book and deploying the surplus resources optimally. Intraday and overall liquidity management is done by considering various options/ instruments through which the Bank can raise short term/ long term funds at competitive rates. Treasury is active in various Money Market Segments such as Certificate of Deposits, Repo markets etc. for generating liquidity. Money Markets desk also seeks opportunities for Refinance by specific Institutions. Apart from liquidity management and reserves maintenance, Treasury manages the Investments of the Bank and utilises the trading and arbitraging opportunities across different markets. The unit undertakes hedge and cover operations for both proprietary positions and client portfolios for addressing foreign exchange and interest rate risks. The Treasury dealing room is located in Mumbai with a disaster recovery site at Kochi. Your Bank has dedicated full-fledged dealing desks in the major market segments namely, Foreign Exchange Interbank Derivatives-Currency Options / Cross Currency Swaps

/ Interest Rate Swaps, Currency Futures, Interest Rate Futures, Overnight Index Swaps, Non-Deliverable Forwards, Non-Deliverable Currency Options, Bond Forward Rate Agreements, Foreign currency credits, Gold Metal Loan and in the Domestic markets - Money Market, Government Securities, Corporate bonds and Debentures, Certificates of Deposit, Commercial Paper, Interest Rate Swaps and Equity. The Non-SLR desk of your Bank actively manages the NSLR portfolio. We are happy to inform that your Bank has issued Infrastructure Bonds of Rs.1500Cr and has become one of the first private sector bank to issue AA+ rated bonds in the category. Your Bank is also providing a web-based trading platform and intraday trading facilities to clients in the CSGL segment. Treasury activities are further being augmented by a robust Front Office System which efficiently captures all the front-end dealings of your Bank and has a robust risk management and monitoring capability. Your Bank as a prudent measure partially hedged its floating rate loan book to insulate from the lowering of the benchmark interest rates by RBI.

The Treasury Sales Team spread across the country, collaborates with the coverage team and provides tailored risk management solutions and help diverse clients hedge their risks arising from foreign exchange or interest rate exposures. Your Bank has started onboarding forex customers to a common platform to book rates directly in market. Your Bank is a preferred banker of Choice across segments through best-in class service delivery, customised solutions and optimum use of technology. Your Bankss key strength in providing structured risk management solutions, hedging advisory and execution skills makes it a preferred Treasury solutions provider to the clients. The interbank desk caters, close to one fifth of the personal inward remittances into the country and is a significant player in interbank market. The extensive usage of data analytics in understanding customer business has also helped your Bank in increasing the Forex business through its branches. The Financial Institutional Group (FIG) team manages the correspondent banking ecosystem of your Bank and ensures a smooth flow of cross-border transactions. Incrementally, it spearheads discussions with Institutional Clients, viz. Banks, Insurance Companies, Mutual Fund Companies, Alternate Investment Funds (AIFs) & other clients of institutional nature for wider engagement and treasury business opportunities. Your Bank has been giving thrust to the development of the forex business and is continuously working to improve the operating skills of relevant personnel through meetings, interactions and training programs. Your Bank is also at the forefront of conducting Foreign Exchange Dealers Association of India (FEDAI) training programs for the banking fraternity. This enables the designated branches to improve their operating efficiency substantially. Your Bank holds a position on the Board of FIMMDA and is a member of the Managing Committee of FEDAI and member of FAI.

Your Bank opened its IFSC Banking Unit (IBU) at Indias first International Financial Service Centre (IFSC) located at GIFT City (Gandhinagar, Gujarat) in November 2015. IFSC in GIFT City is conceptualised and designed at par with other global financial centres operating in various parts of the world viz. Hong Kong, Dubai, Singapore, etc. The branch is like an overseas branch situated in an overseas jurisdiction, enabling your Bank to explore international business opportunities. Various products offered and activities handled by the Federal Bank IBU are:

Credit facilities to overseas companies, Wholly Owned Subsidiaries (WOS)/ Joint Ventures (JV) of Indian companies registered abroad.

Deposit and loan facilities to Retail Individuals, including NonResidents Individuals.

External Commercial Borrowings (ECB), Trade Credit to Indian Entities.

Acceptance of foreign currency corporate deposits.

Facilities to entities in GIFT IFSC ecosystem

Treasury operations.

Capital Market segment – Empanelled with NSEICC for Issuance of FDs & BGs as a collateral

With the opening of IBU, your Bank caters to both domestic and international clients for their various funded and nonfunded banking requirements in multiple jurisdictions. IBU has undertaken transactions with clients across various geographies covering more than 34 countries. IBU boosts the balance sheet of your Bank by empowering it to extend various foreign currency facilities to entities and individuals across various foreign jurisdictions. Federal Bank through its IBU has executed transactions in various segments like aviation, chemicals, pharma, manufacturing & trading, metals, media & entertainment, health care, electrical, food, construction, retail, IT, finance, NBFCs etc. and has been empanelled with NSEICC for issuance of collaterals in the form of FDRs and BGs on behalf of the clearing members in FY 2024-25. Your bank has rolled out digital banking services for the clients of IBU by offering internet banking facilities, which has been a milestone during FY 2024-25. Through its internet banking platform, FedNet Global, Federal Bank IBU presently offers various online transaction facilities to the customers like retrieving account statements, FD opening, renewals, initiating fund transfers, updating nominees etc., aligning itself towards the digital front. Also, the Bank through its IBU, is active in booking sustainability and linked facilities and is an active participant in various fintech initiatives from GIFT City.

Bank had migrated to CRISIL rating solutions on April 1,2016 and the existing rating models and scorecards are hosted in RAM and CRESS platforms respectively. CRISIL has upgraded its rating platform, and Bank has decided to purchase the new rating platform CRISIL ICON which will replace RAM and CRESS. In addition, all the existing RAM rating models will be upgraded. The migration to the new rating platform and subscribing to upgraded RAM models shall help the Bank in improving the credit quality of the Bank, integration with LOS other than CLAPS, and upgradation of our existing models with new features.

PFMS (Public Financial Management System) is a web-based application that serves as an online management information and decision support system for the Plan Schemes of the Government of India. The purpose of this system is to track and monitor fund disbursement and utilization under Plan Schemes on real-time basis. Currently the payment disbursements from PFMS are mainly handled using two modes: Print Pay Advice (PPA) and Digital Signature Certificate (DSC). EPA (Electronic Payment Advice) is an advance payment process compared to the current payment product, where it gives the comfort and flexibility to the disbursement agency to verify and approve the payment disbursement over the internet banking and mobile banking platform of the bank instead of submitting the physical copy with wet signature.

The bank had done a full revamp of the in-house cheque book request system to address its shortcomings and align with current requirements. The revamped system integrates all currently unincorporated processes, enhance the reconciliation workflow for the support team, and provide robust reporting capabilities to overcome the constraints of the existing application.

Your Bank has created a digital channel to facilitate NRO account openings for ETB customers. This involved designing a link or microsite to be hosted on the banks webpage or Fed E Point platform, ensuring a seamless and user-friendly experience for customers. Clari5 Fraud Management Solution - FedCorp / FedeBiz / Paylite Integration of FRM applications with digital channels like Fedebiz, Paylite & FedCorp. to comply with DPSC guidelines and for real time monitoring of transactions of respective digital channels.

This ticketing tool application automates email-based ticket generation for queries received at tmcomplaints@federalbank. co.in and redirects emails from other sources to this address. It categorizes tickets based on required actions, assigns them to appropriate teams, and facilitates communications with branches/ ASD-Fintech for inquiries via the MHA portal. The tool supports lien marking/freezing actions through API calls, tracks follow-up emails from law enforcement agencies, monitors ticket progress, and ensures ticket closure by submitting required details to the LEAs source email. Overall, it streamlines handling of investigations, improves operational efficiency, and ensures timely resolution of high-volume queries from authorities.

The functionality of Googles APIGEE API gateway involves providing an alternate platform to the existing IBM API Connector. APIGEE offers flexible usage plans and a SaaS model for enhanced scalability. It is hosted in Google Cloud, avoiding the need for infrastructure maintenance. The Management and Runtime nodes will reside in Google Cloud under the SaaS model, and API traffic landing in the cloud will be routed to API servers located in Federal Bank Data Centers. This setup aims to optimize operational efficiency and infrastructure management while complementing the existing system.

The backup solution is identical in DC and DR sites. The solution has capability of taking backup at DC and DR sites simultaneously for different workloads.

This application aims to streamline the Compliance departments daily operations, currently managed through various platforms, emails, and MS Excel, which involves significant manual effort and creates challenges in timely follow-ups and escalations. By consolidating processes, the application will enable automation for key functions such as Risk Tracking, Regulation Implementation, and the management of MANC, RMP, RAR, and Tranche I, II, III activities. This systematic approach will enhance efficiency, reduce manual workload, and improve the overall tracking and escalation processes within the Compliance department.

The SAS ALM solution automates the Market Risk Divisions ALM monitoring and reporting processes. It aims to streamline the preparation of regulatory and monitoring returns and reports. The solution consolidates data from various sources, including MIS, Finacle Treasury, and Finacle IBU, ensuring efficient and accurate reporting for ALM activities.

This functionality involves adopting a Hardware Security Module (HSM) for securely storing UPI PIN decryption keys. Existing private keys from on-premise servers will be migrated to HSM, and new decryption keys will be exclusively stored in the module. This enhances security with restricted access through controlled user management. During UPI transactions, the UPI Switch will securely access these keys from the HSM to validate customer PINs for transaction authentication, ensuring robust protection of sensitive data.

Your Bank implemented Proactive Risk Manager (PRM), a real-time fraud monitoring solution from ACI Worldwide, in 2013. PRM is integrated with Base 24, the Banks ATM switch application, also developed by ACI. Base 24 processes all debit card transactions and sends a copy to PRM in real-time or near real-time, based on configuration settings. ACI Worldwide has announced the discontinuation and withdrawal of support for the current PRM version 9.0.7.2, effective October 2024. They have proposed an upgrade to the newer 9.3 series, ensuring continued support and enhanced functionality.

The Bank has migrated from the existing DDFS system, used for inter-department note processing to the Ospyn Docs Office Note platform. The migration involves both the standard product features of OfficeNote and the Banks current custom features from DDFS. This move is aimed at leveraging the enhanced functionalities of the new platform.

The Marketing Department has implemented an Enterprise Digital Asset Management (DAM) solution to efficiently store, organize, index, retrieve, and distribute digital assets, including images, creative files, videos, audio, presentations, and documents. A cloud-based solution is preferred for enhanced scalability, availability, and ease of management. The IT Department will remain dedicated to fostering innovation by integrating emerging technologies and tools into our operations. This includes staying ahead of digital trends and continuously enhancing our systems to improve security and user experience. We will continue to prioritize the adoption of AI and automation to refine processes, optimize customer service channels and streamline workflows. Our team is focused on exploring additional AI-driven opportunities to boost analytics, customer insights, and business intelligence. Through these initiatives, the IT department will play a critical role in shaping the future of your Bank, supporting both strategic objectives and daily operations, while ensuring that the Bank stays competitive in the rapidly evolving financial industry.

Digital transformation in your Bank is advancing effortlessly with the use of the newest technology. Your Bank also keeps the pace up with the technological innovations and is focused on introducing new products and services to enhance the customer experience. More than 92% of the Banks transactions in FY 2024-25 were done through digital mode. Banks UPI transactions as a remitter Bank recorded an increase of 31.5% for the FY 2024-25 with volumes as beneficiary rising by 50.13% to 474 million

In order to provide personalized, contextual offers and services in real-time, your Bank is utilizing cutting-edge technologies like Machine Learning, Blockchain & Artificial Intelligence to obtain faster and deeper insights and make better and quicker decisions. Your Bank is committed to creating user-friendly, frictionless, safe, secure, and engaging experiences seamlessly across all channels. Your Banks various channels such as FedMobile, FedOne, FedNet, Feddy and FedCorp are continuously getting revamped considering the increase in the volume of transactions and the need to provide more functionalities with use of latest technology to make it most convenient for the customers to carry out digital transactions. Mobile banking applications for retail and corporate customers are being widely used and accepted by the customers and the mobile banking monthly volume of your Bank has surpassed 25,000 Crore as of March 31, 2025. Improving the customer experience was the primary focus of your Bank which resulted in the improvement of the user rating of the FedMobile App to 4.5 star rating in PlayStore and Appstore.

Federal Bank continued its digital leadership journey in FY 2023-24- 25, achieving strong growth across key digital metrics. Through sustained product innovation, the Bank not only met but significantly exceeded several key digital targets.

Active UPI users remained strong, peaking at over 5.3 million in Feb-25 and closing the year at 5.24 million in March-25. We have over 5.3 million UPI merchants, including those through aggregators. As of March 2025, our market share was 1.28% as Remitter Bank and 2.22% as Beneficiary Bank.

Feddy demonstrated remarkable growth in customer query handling, processing 65,703 banking queries and 2.79 lacs general banking queries in March 2025. The total number of queries saw 56% increase compared to Mar-24, driven primarily by a 148% surge in WhatsApp-based interactions. CBDC adoption witnessed a positive uptick, with the number of users increasing by 84% and transaction value reaching Rs 114 Cr in FY 2024-25. Transaction types saw broader participation, with CBDC UPI transactions alone increasing 5X

During the year, our flagship mobile banking platform, FedMobile, underwent substantial enhancements, introducing a suite of advanced features, refined user experience elements, and elevated security protocols.

Significant emphasis was placed on UI and UX enhancements, with notable improvements to the home screen garnering positive customer feedback. The introduction of the Scan & Pay feature at the login interface substantially elevated user convenience. Additionally, the implementation of scheduled payment capabilities for self-accounts and the refinement of transaction receipts were direct responses to customer insights, further advancing the platforms functionality and user satisfaction.

Several advanced features were introduced, including the ability to apply for a Debit Card or FlashPay, transfer funds directly to a UPI Number, access Federal Rewards, and set a UPIN for other bank accounts via Aadhaar OTP authentication. Through FedMobile, customers can seamlessly avail themselves of Hospicash insurance, Sarv Suraksha Plus (Group) insurance for NRIs, apply for IPOs via ASBA, request FASTag or additional FASTags, and purchase gift vouchers. These enhancements have significantly increased customer engagement and strengthened the platforms acceptance among both, customers and stakeholders.

Recent enhancements to the deposit module enable customers to add or modify auto-renewal instructions, view deposit advices, apply for the Atal Pension Yojana (APY), and open Portfolio Investment Scheme (PIS) accounts specifically designed for NRIs. Security has been strengthened with the introduction of a randomized keypad on the MPIN screen, thereby minimizing the risk of unauthorized access. Additionally, procedures for KYC profile updates and renewals have been optimized to provide a seamless and efficient user experience.

Feddy, our AI-powered Virtual Assistant is equipped to answer customer queries round the clock. Feddy is an intelligent companion, offering assistance on:

Financial transactions/ Conversational banking experience – including transactions like Fund Transfer, Bill Payments, Mobile Recharges, cheque book requests over an easy chat with Feddy.

Addressing transaction-related queries of registered customers and general queries from all those interested.

With all this already in place, we made Feddy even smarter in FY25 by adding 10+ more conversational banking features. Now customers can perform tasks like opening a deposit, certificate downloads, debit card status check, debit card block, update email id and much more, all through seamless human-like conversations through platforms such as WhatsApp/Web.

Vernacular Language Support in Feddy: Considering the intricate and diverse cultural and linguistic landscape of India, Feddy is available in 14 different Indian languages. With this powerful capability, your Bank is confident that Feddy will break linguistic barriers in banking services and promote linguistic inclusivity on a large scale. Whether on WhatsApp or the banks website, users simply need to type or say, "Change my language" or "Talk to me in Hindi" (for example) and Feddy will begin responding to queries in the selected preferred language.

Feddy now supports Voice Notes in WhatsApp: Now users can send super-convenient Voice Notes to Feddy to get responses in their preferred language. This new feature allows customers to interact with Feddy more naturally and conveniently. Whether youre on the go or prefer speaking over typing, you can now send voice messages in your preferred language to Feddy and receive prompt, accurate responses.

Feddy in Alexa: Imagine giving voice commands to your phone/ Alexa device "Pay my Electricity Bill" or "Send 500 Rupees to my mom", and transactions happen instantly. This brings a new dimension to our customer engagements by leveraging voice-based interactions, making banking more accessible, intuitive, and convenient for our customers.

With all these new additions, Feddy continues to redefine banking experiences.

Utilizing advanced facial recognition technology, SmilePay enables merchants to accept payments by simply scanning their customers face, offering a seamless, secure, and futuristic transaction experience. End customers can now make payments without any physical payment instruments like cards or mobile phones.

FedCorp has shown impressive growth during FY 2024-25. The monthly transaction volume reached Rs. 7315 Crore, marking a 25% y-o-y increase. Total registrations also saw a significant rise, with 1,44,179 registrations, reflecting a 35% y-o-y increase. Additionally, the number of active users grew to 54,680, which is a 27% y-o-y growth from 43,142 users in March 2024. This data highlights FedCorps strong upward trajectory in both user engagement and transaction volume. During FY 25, two new FedCorp versions were released, boosting user experience and functionality.

FedNet delivers seamless online banking services to the retail segment. This year, it has reached a notable milestone through the introduction of key features designed to further elevate user experience and drive increased revenue from the platform.

FedNet now provides comprehensive operational capabilities for secondary users in E/S accounts. In alignment with the banks sustainability initiatives, E PIN mailers have been implemented. Additionally, in response to customer feedback, transaction limits have been increased, together with multiple feature enhancements designed to further empower our customers digitally.

FedOne: Simplify your Tax Payments with FedOne: a. Self – registration of PAN / TAN with maker-checker process b. Simple Bulk Upload: Facility to initiate multiple transactions in one go with a simple file upload process. Each line item in the file will represent one challan c. Instant payment receipt with CIN d. 24 x 7 availability: Federal Bank is now one of the few banks offering this feature. Most banks have a cut-off for tax payments e. Schedule tax payments for future date. f. No requirement to visit TIN 2.0 portal of Income Tax Department g. Dedicated Helpdesk

The new mobile based authentication app in Android is designed to enhance security and customer experience while using Retail FedNet Application. In todays digital landscape, ensuring the security of our online platforms is paramount and thus, FedSecure application comes with features like SIM Binding and Device Authentication. With FedSecure, were reducing dependency on OTP SMSs and introducing a seamless, efficient and secure solution to access and use FedNet for transactions.

UPI has cemented its place as a powerhouse in digital payment channels, achieving unprecedented growth in the last fiscal year. The sheer volume of UPI remitter transactions surged by almost 31.5% in FY 2024-25, culminating in a staggering 234 million transactions in March 2025 alone. The significant increase highlights UPIs expanding dominance, bolstered by the introduction of numerous new features in the past fiscal year.

1. UPI for Sole Proprietorship Current Accounts: The widespread adoption of UPI among retail individual customers led to a significant demand for broader UPI access, extending to various account schemes and constitutions. As a response to this clarion call, we expanded UPI access to include sole proprietorship current accounts enabling customers to link their accounts via 3^rd party UPI Apps and enjoy all UPI functionalities.

2. UPI Circle: UPI Circle is an innovative feature in UPI which allows a UPI user to empower their trusted contacts to make UPI payments on their behalf. The feature, brought in by National Payments Corporation of India (NPCI), was officially launched by the RBI Governor in the Global Fintech Fest 2024.

We were one of the first banks who made the feature available to customers via supporting UPI Apps. Aimed at fostering digital financial inclusion, with UPI Circle, customers can "delegate" UPI payments to secondary users – who may or may not have a bank account, to make UPI payments. The feature is interoperable i.e. primary and secondary user can be in any UPI App.

3. UPI Lite Auto Top-up: UPI Lite is an on-device wallet that allows us to instantly make small value UPI transactions up to Rs 1,000 without entering the UPI PIN. Launched by NPCI in Global Fintech Fest 2024, UPI Lite Auto Top-up enables customers to automatically top-up Lite account when the lite balance falls below the threshold amount set. Your bank was among the first set of Issuer banks which went live with this functionality at the Global Fintech Fest 2024.

Your Bank joined the CBDC ecosystem as part of the third cohort in FY 2023-24. Over the past two years, the CBDC platform has undergone significant evolution, expanding its use case by integrating with UPI. Additionally, we have introduced the Autoload feature in CBDC, which allows users to automatically top up their wallets when the balance falls below a predetermined threshold, thereby removing the need for manual wallet loading before transactions. Furthermore, we have launched the CBDC Merchant App for Android, enabling merchants to efficiently track their CBDC transactions through the application.

In FY 2024-25, your Bank focused on upgrading our FASTag system to improve customer experience and operational efficiency. The new system addresses deficiencies identified in the previous setup, incorporates additional features, and ensures compliance with regulatory guidelines. The updated system includes several functionalities that enhance customer convenience, such as Autopay, an online facility for applying for Add-on/Replacement tags etc. These improvements ensure a seamless and efficient experience for our customers and position us to expand our business and offer superior services in the coming years.

This initiative represents a comprehensive, end-to-end journey for customer profile updates, seamlessly integrated within Federal Banks verified WhatsApp Hub platform. Unlike traditional methods that rely on URL based redirection from WhatsApp chats, this solution enables customers to complete the entire process within the WhatsApp interface itself. Customers can conveniently update key KYC related profile details such as communication address, occupation, income, and educational qualifications by initiating a conversation to the banks verified WhatsApp Hub Mobile number (9633600800) from their bank-registered mobile number.

Indias FinTech ecosystem is among the fastest-growing in the world, with the market opportunity projected to exceed USD 2 trillion by 2030. This remarkable growth is being driven primarily by the lending and payments segments, which continue to show exponential expansion. The industry is increasingly focused on leveraging next-generation technologies to simplify product delivery and enhance customer experience, all while maintaining a strong commitment to regulatory compliance. Indias robust Digital Public Infrastructure (DPI)—including platforms like Aadhaar, UPI, and DigiLocker—has laid a solid foundation for innovation and the evolution of financial services.

Regulators in India are actively encouraging innovation, aiming to improve customer experience without compromising on compliance, data privacy and security. The adoption of technologies such as Aadhaar-based authentication, Video KYC, and other supporting processes for digital onboarding have significantly accelerated the growth of the FinTech sector. As India continues to lead in digital transformation, the FinTech industry is well-positioned to redefine the future of financial services—making them more inclusive, efficient, and customer-centric.

The fintech sector experienced significant momentum in 2024, with India securing $1.9 billion in funding—positioning it as the third-largest recipient globally, following the United States and the United Kingdom. Investor confidence was evident as the market welcomed eight fintech IPOs and celebrated the emergence of two new unicorns. Digital payments continued their upward trajectory, with over C260 Lakh Crore transacted via UPI, marking a 30% year-on-year growth.

The Open Network for Digital Commerce (ONDC) gained traction as a transformative initiative, aiming to democratize e-commerce by enabling small and medium enterprises (SMEs) to compete on a level playing field. Meanwhile, the rollout of the Central Bank Digital Currency (CBDC) brought blockchain technology into the mainstream, fostering innovation and expanding public access to digital financial infrastructure.

With the rise of Digital Public Infrastructure and rapid advancements in the payments ecosystem, your Bank has embraced FinTech not as a competitor, but as a strategic collaborator. FinTech companies bring cutting-edge technologies that drive innovation and enable hyper-personalized customer experiences.

In 2018, your Bank made a forward-looking investment in a state- of-the-art API gateway—now the primary interface for FinTech integrations. Over the past six years, this platform has grown to host more than 700 APIs. Its comprehensive documentation and robust architecture have earned recognition across the industry. To further strengthen this collaborative approach, your Bank established a dedicated vertical focused exclusively on FinTech partnerships. This specialized unit ensures both the expertise and attention required to nurture each partnership effectively. As a result, Federal Bank has emerged as the preferred partner for FinTech collaborations. These partnerships serve dual purposes: expanding the distribution of the Banks products and introducing new technological capabilities. Your Bank is actively working with FinTechs across four key domains:

1. Liability Business

2. Co-Branded Credit Cards

3. Digital Personal Loans

4. Technology Platforms and Solutions

The decision to select FinTech partners follows a collaborative approach involving multiple stakeholders, including employees and senior management. Employees initiate the process by conducting in-depth market research to identify innovative FinTech firms aligned with your Banks strategic vision. Each potential partnership is thoroughly evaluated for business value, compliance, and risk. Upon completion of this assessment, recommendations are submitted to senior management for final approval. Employees are engaged from the earliest stages, ensuring robust groundwork and alignment. Senior leadership is involved at the final decision-making stage to validate and endorse partnerships that meet the Banks standards and objectives. All collaborations are strategically aligned with your Banks broader business vision. The focus remains on high-margin, ROA-accretive ventures and acquiring new-to-bank customers, particularly in regions where the Bank lacks a physical presence.

With the resumption of credit card sourcing through fintech partnerships, your bank has witnessed a strong and positive market response. The digital personal loan segment is also gaining significant traction, reflecting growing customer demand and digital adoption. A robust pipeline of new partnerships is scheduled for launch in FY 2025-26, most of which have successfully completed the testing phase.

Looking ahead, your bank anticipates sustaining its growth trajectory in customer acquisition and high-yielding business through these strategic collaborations in FY 2025-26.

India continues to showcase a strong appetite for technological innovation in the BFSI sector. The launch of the Central Bank Digital Currency (CBDC) by the Government of India is poised to transform the domestic payments landscape and foster greater integration with global financial ecosystems. The growing enthusiasm for the Open Network for Digital Commerce (ONDC) is equally promising, with projections indicating that over a million SMEs will join the network within the next two years. Meanwhile, the concept of Open Banking is gaining significant traction, with an increasing number of use cases emerging. Broader adoption is anticipated in FY 2025-26 as more players recognize the transformative potential of this model. Regulatory developments—such as the Digital Lending Guidelines, Guidelines on Cards, IT Outsourcing Guidelines, and the Digital Personal Data Protection (DPDP) Bill—are helping to clarify the framework for collaboration between FinTechs and traditional BFSI institutions. These regulations are instrumental in reducing ambiguity and fostering a more secure and transparent ecosystem. FinTech companies continue to bring forward innovative solutions that enhance customer experience, address challenges in credit delivery, streamline merchant acquisition, and improve last-mile connectivity. Your Bank anticipates that this momentum will carry forward into FY 2025-26 and remains committed to leading the way through pioneering partnerships and forward-thinking initiatives.

The Credit Administration Department ensures the credit administration functions of your Bank for borrowers with aggregate exposure of C 1 Crore and above, with certain exclusions i.e. Loans against liquid securities, viz., Gold loans, Advance against deposit/other approved securities, Retail auto loans and Term loans sanctioned under Federal Agri Mobile Scheme to entities for acquiring various types of Vehicles/ equipment. The department ensures compliance with all pre-disbursal covenants of credit sanctions and error-free documentation through digital platform wherever feasible, before disbursing a limit. The department prepares the documents as per sanction terms, verifies the executed documents once they are submitted for setting up of limit, and ensures the creation of charge in Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI), Registrar of Companies (ROC) and E-Mortgage Recorder (EMR) along with perfection of securities within the stipulated timeframe. The department also disseminates non complied post disbursal covenants of credit sanction periodically with respective business verticals and ensures proper compliance basis documentary evidence submitted by the business team. Further, the department ensures the sufficiency and protection of underlying assets and ensures that the securities are updated and revalued at regular intervals. The department also ensures timely submission of data pertaining to loans and advances to Credit Information Companies (CICs) and National E-Governance Services Limited (NeSL) and deals with customer grievances related to such data reporting.

The department also handles operational activities related to subsidies, interest subventions, and guarantees such as: Subsidies: Non-Resident Keralites Affairs (NORKA), Agricultural Marketing Infrastructure (AMI), Dairy Entrepreneurship Development Scheme (DEDS), Ujeevana, National Livestock Mission (NLM), Technology Upgradation Fund Scheme (TUFS), Agri-Clinic and Agribusiness Centers Scheme (ACABC), Prime Minister Employment GenerationProgramme(PMEGP),CreditLinkedCapitalSubsidyScheme (CLCSS) and Special Credit linked Capital Subsidy Scheme (SCLCSS). Interest Subvention: National Urban Livelihoods Mission (NULM), National Rural Livelihoods Mission (NRLM), Chief Ministers Tourism Loan Scheme (CMTLS), Agri Infrastructure Fund (AIF), Fisheries and Aquaculture Infrastructure Development Fund (FIDF), Interest subventionforIncrementalCredittoMSMEs-2018,Interestsubvention to short term crop loans and Animal husbandry, Interest Subvention Scheme for Soft Loans to Sugar Mills 2018-19, Handicraft Artisans Mudra Loan and Ethanol Production Interest Subvention Scheme. Guarantees: Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Guaranteed Emergency Credit Line (GECL), Loan Guarantee Scheme for COVID Affected Sectors (LGSCAS), Loan Guarantee Scheme for Covid affected Tourism Service Sector (LGSCATSS), Credit Guarantee Scheme for MFIs (CGSMFI), DICGC-Advance, PM Svanidhi and PM Vishwakarma.

The department also constantly reviews existing processes to identify process improvements and endeavours for digitisation of such processes to ensure an excellent turnaround time.

Regular monitoring of the credit portfolio is crucial for the Bank, and the Credit Monitoring Department (CRMD) plays an essential role in maintaining the health of your Banks credit portfolio. Upon sanction and disbursement of a credit facility, CRMD team consistently monitors its performance. The core of the credit monitoring process involves identifying early signs of stress and initiating timely corrective actions based on comprehensive data analysis. Dedicated and skilled teams are allocated to monitor portfolios according to business segments, taking into account the ticket size and the specific characteristics of each business. These teams track the variety of indicators, such as changes in borrower behaviour, transaction data, economic indicators, and market trends, to identify potential issues before they become serious. Early detection allows the bank to take corrective action and minimize losses. The Department uses various tools (developed internally or procured externally) for gathering and analysing data from internal as well as external sources. To remain agile and up to date in the dynamic socio-economic environment, Banks Credit Monitoring Department leverages data analytics and market intelligence and other technological tools to enhance its risk assessment, monitoring, and early warning capabilities. By embracing innovation, the department has improved on efficiency and effectiveness in maintaining the health of the credit portfolio

Your Bank has managed its NPA portfolio prudently and has relentlessly improved its collection and recovery architecture to improve asset quality. Different collection activities were initiated based on the risk profile of borrowers. Your Bank has used various analytical tools to predict the propensity to default and the collection score of the borrowers. Collection strategies were formed based on these analytics-driven reports. Your Bank has also strengthened the collection mechanism through increased team strength and improved partnerships. Enhanced use of digital tools and analytics have also helped your Bank become one among the best in the industry, with respect to collection practices and efficiencies. Pre-Due reach out methods are employed based on analytics inputs including collection risk segmentation of the accounts. This helps the borrowers/card holders in ensuring that they are not missing their due dates. These reach out methods include digital tools like SMS/IVR/Email and live tele-calls. Centralisation of various recovery activities also yielded great results as your Bank could recover the dues from borrowers very quickly.

As a result, your Banks Gross NPA as a percentage of Gross Advances improved to 1.84% as on March 31, 2025 as against 2.13% on March 31, 2024. Net NPA as a percentage of Net Advances of your Bank improved to 0.44%. Your Bank contained the credit cost to 0.38% for FY 2024-25 and continued to maintain adequate provision for NPAs with Provision Coverage Ratio (including technical write-offs) improving to 86.33%.

The Risk Management philosophy of your Bank is to take risk by choice, rather than by chance. Your Bank seeks to build scalable and resilient businesses by strictly adhering to the best risk management practices. Your Bank is exposed to various risks, that are inherent to any banking business. The major risks are credit risk, market risk including interest rate risk and liquidity risk, information and cyber security risk and other operational risks. Your Bank has a robust risk management framework in place, which covers the policies, procedures, methodologies and framework established to systematically manage these material risks.

The Board of Directors oversees and approves the risk policies and strategies to establish an integrated risk management framework and control system in your Bank.

The Risk Management Committee (RMC) of the Board oversees the management of various risks associated with business, systems, and processes.

Executive Level Committees ensure the effective implementation of risk management policies.

Integrated Risk Management Department headed by the Chief Risk Officer coordinates various risk management functions of your Bank.

An independent risk governance structure has been put in place, duly ensuring the independence of risk measurement, monitoring and control functions. The risk management framework is subjected to review and upgradation on an ongoing basis, in tune with regulatory guidelines and best practices in the industry. To focus on maximisation of risk adjusted return on capital, your Bank has aligned its business strategies to a Risk Appetite Framework. A risk-based pricing framework has been implemented for the pricing of loans to evaluate returns vis-a-vis risks taken. Additional information on key risks and mitigation strategies is available on page 68 of the Integrated Annual Report.

Your Banks human capital is a key enabler of its strategic objectives and long-term value creation. As on March 31, 2025, your Bank employed 16,111 individuals, with a gender ratio of 57:43, reflecting its commitment to building a balanced and equitable workplace. Federal Banks human resource strategy is anchored in continuous learning, digitisation of people processes, employee development and structured career progression. This holistic approach promotes an empowering environment that supports both personal growth and professional excellence.

Employees Gender Ratio

Your Bank maintains a constructive Employee and Worker Relation Management system built on mutual respect, dialogue, and timely communication. While there is no fixed notice period prescribed in collective agreements, sufficient notice is provided through internal channels before implementing significant operational changes. We uphold the right to freedom of association and collective bargaining, with periodic townhalls and structured engagements with Trade Unions and the Officers Association to address concerns and maintain industrial harmony.

Additional information on the Banks human resource practices is provided on page 78 of the Integrated Annual Report

Internal Audit independently evaluates the adequacy, completeness, operational effectiveness and efficiency of all internal controls, risk management/governance systems and processes of your Bank. The Audit Committee of the Board provides direction and reviews the adequacy of the internal audit function, including its reporting structure, staffing, coverage and frequency of audits. The Head of the Internal Audit Department is designated as the "Chief Internal Auditor" of the Bank and reports directly to Managing Director & CEO. An executive-level committee named the "Internal Audit Review Committee of Executives" headed by the Managing Director & CEO, oversees the internal audit functions and reviews the audit procedures and methodologies, the effectiveness of audit systems, progress in completion of audits, risk rating of branches and significant audit findings. The Internal Audit Policy, Information System Audit Policy, Policy on Appointment of Statutory Auditors and the Internal Audit Procedure & Guidance Manual, which serve as the basic guidance documents for the Internal Audit function, are subjected to annual review. The review covers appropriate modifications and refinements based on the observations made by the Reserve Bank of India in Risk-Based Supervision, other regulatory guidelines, changes in internal rules and guidelines and directions of the Audit Committee of the Board and the Board of Directors. The review and modifications ensure that the audit systems and procedures are contemporary and continue to be an effective tool for monitoring control and compliance in your Bank. Internal Audit is responsible for self-assessment of the Banks internal financial controls by testing and validating the effectiveness of controls on an ongoing basis. All activities (including outsourced activities) and all entities (including subsidiary companies) of your Bank fall within the ambit of internal audit. The major audits undertaken by your Bank during the financial year are: Risk-Based Internal Audit- Your Bank has leveraged Risk-Based Internal Audit (RBIA) as a tool to assess the risks in its processes, operations and the effectiveness of related controls. The RBIA Framework was subject to review and a revised framework extending RBIA to centralised functions and departments, in addition to branches, was implemented during Financial Year 2023-24. Risk-Based Internal Audit focuses on prioritising the audits and audit resources based on composite risk rating derived from the level of inherent business risks and control risks. Information System Audit- Information System Audit collects and evaluates the evidence to determine whether the information system safeguards assets, maintains data integrity and availability, achieves organisational goals effectively and consumes resources efficiently. It focuses on the risks that are relevant to information assets and assesses the adequacy of controls implemented for mitigating the risks. All critical IT infrastructures in your Bank are subjected to Information System Audit by information systems professionals from reputed CERT-IN empanelled external audit firms and Certified Information System Auditors (CISA) of your Bank. Critical Information Systems are subjected to Vulnerability Assessment & Penetration Testing (VAPT) every half year. In addition to this, Information System Audit covers the physical security of IT systems and business continuity procedures followed by Bank.

Management Audit- Management Audit is conducted for noncritical departments, and the same essentially focuses on identifying the adequacy and effectiveness of processes adopted for decision-making in these Departments. The feedback from management audit is relied upon by the auditee units to improve the processes, procedures and systems in place in such offices. Offsite Audit– Offsite audit is a forward-looking diagnostic tool to identify gaps in the systems and procedures of your Bank. The entire revenue audit in your Bank is undertaken through Offsite Audit. Your Bank leverages Computer Aided Audit Tools (CAAT) for generating and analysing exceptions while conducting offsite audits. Concurrent Audit– Your Bank is increasingly relying on ‘Concurrent Audit as an early warning system to ensure near real-time detection of irregularities and lapses and also as a tool to prevent fraud. Your Bank has implemented the revised Concurrent Audit framework, duly approved by the Audit Committee of the Board, as per the RBI circular dated September 18, 2019, with effect from April 01, 2020. During the year under review, Concurrent Audit was in place in 396 branches and 92 offices, covering 76.48% of total advances and 53.90% of total deposits of your Bank. The offices covered under the Concurrent Audit include the Treasury Department, Operations Department, Information Technology Department, Loan Collection and Recovery Department, Zonal Credit Administration Divisions, Depository Participant Division, International Financial Service Centre Banking Unit, National Credit Hubs, Large Corporate Hubs, Regional Credit Hubs, Centralised Retail Credit Hubs, CVL Hubs, Corporate Client Service Centres, Retail Assets and Cards (Organic Credit cards), Transaction Banking Department, Digital Centre of Excellence, Fintech Partnerships, Regional Cheque Processing Centres, Transaction Monitoring and Fraud Prevention Department, AML Monitoring Department, Credit Monitoring Department, Exceptionally Large Branches and Branches where RBIA risk rating is assessed as "High". Concurrent Audit is also conducted in all the currency chests as required by the Reserve Bank of India. 354 External Auditors / Audit Firms, 11 Retired Officers and 9internal audit staff were engaged for concurrent audit assignments during the period. Thematic Audit- Thematic audits of activities/ systems & applications/ processes/ products is carried out centrally. The objective of thematic audit is to focus on a particular audit theme across sectors/functions or units within the organisation to identify the extent of compliance / non-compliance to internal as well as external (statutory/regulatory/supervisory) policies / directions and facilitate appropriate corrective actions through suitable recommendations. Third Party Audit- A comprehensive Risk Based of Partners/ Service providers is conducted to ensure that they are financially stable, comply with all regulatory norms and have all the required information security controls in place to safeguard the interests of all the stakeholders of your Bank. Periodic review is also conducted on these units.

The Internal Audit Department is manned by appropriately qualified personnel and has a staff strength of 158 officers (as on March 31, 2025) with expertise and exposure in all activities of your Bank, such as branch operations, credit sanction, credit monitoring, clearing operations, information technology, risk management and treasury operations.

During the FY 2024-25, audits were undertaken at various operating units, considering the audit universe and in tandem with the Annual Audit Plan approved by the Audit Committee of the Board. Data on major audits conducted during the year is as follows:

Your Bank is having a fully equipped Transaction Monitoring & Fraud Prevention Department with state-of-the-art monitoring tools working round the clock. The transactions through Core Banking system and other digital channels like FedNet, FedMobile, FedCorp, Fedebiz, Paylite etc are monitored by the Transaction Monitoring Team through real time alert generation mechanism of Fraud Risk Management application (Clari5). UPI transactions are monitored on NPCIs e-FRM tool. Monitoring of POS acquiring is also under the purview of the Department, to have a holistic control over the transaction monitoring activities of the Bank. A Proactive Risk Manager (PRM) tool has been implemented for monitoring Debit Card transactions. Monitoring of Credit Card transactions is carried out on a dedicated tool – Falcon. With the introduction of Credit Card issuance through Fintech partnerships, a dedicated monitoring team has been set up under the department to monitor the transactions on Fintech Credit Cards.

Transaction Monitoring Team can identify suspicious online transactions and take immediate remedial measures to prevent further occurrence. Your Bank has associated with the Ministry of Home Affairs on their initiative of the Citizen Financial Cyber Fraud Reporting Portal. A dedicated team has been set up, which is working on a 24X7 basis, to attend the cases reported by Police authorities, initiate immediate preventive steps to arrest the further flow of disputed funds and help police authorities in the investigation of financial cybercrimes.

Compliance, with all applicable laws and regulations, is crucial to the success of your Bank. Striving for the esteemed status of the Most Admired Bank, the team maintains a delicate equilibrium between growth and stringent controls. Your Banks compliance philosophy states that the Bank has no appetite or tolerance for any compliance risk arising from non-compliance with regulations. To uphold the commitment to compliance across all operations, your Bank has adopted a risk-based approach and implemented appropriate policies and processes. To manage compliance risk, the Bank has built a comprehensive Enterprise Compliance Risk Management Framework (ECRMF), containing processes covering regulation implementation, identification of risks, and remedying risks on time. Your Bank has a range of monitoring and testing programs, such as branch and department self-testing by frontline staff, review by Compliance Monitoring Officers and Compliance Quality Assurance Cell (C-QAC), Data Analytics and Reg Tech to identify any known or hidden risks. Every employee of your Bank is committed to maintain the highest level of compliance standards, both in professional and personal life. Key objectives of the Compliance Department are (a) Benchmark Regulatory Compliance, (b) Integrate Compliance Risk Management in Business, (c) Never Err on Critical Compliance, (d) Always be Fair and Transparent and (e) Be Fit to Partner the Digital & Fintech Journey. To achieve these objectives, your Bank has set a protocol where every Business Unit and Department will have Compliance Monitoring Officers who handle the first level of compliance, closely associating with respective heads. Zonal level Compliance Monitoring Officers, who directly report to central Compliance, provide additional support. To assess and assist the branches in enhancing the Compliance culture, Compliance Monitoring Officers and senior officials of the central Compliance team visit the branches and conduct awareness sessions. Annual Certification of Compliance Monitoring Officers at all levels ensures that they are aligned with the Compliance policy and processes, enabling them to embed regulatory requirements in day-to-day business processes. To fortify compliance architecture, your Bank has undertaken several strategic initiatives. This includes periodic revision of the Compliance Policy and the Policy on Combating Financial Crime, aligning them with regulatory requirements and global best practices. Extending the compliance program to the subsidiaries and group companies ensures a unified approach. Your Bank systematically identifies its compliance obligations resulting from its activities, products and services and managing them through a structured process known as "Structured Response to Obligations". This process involves two key steps. (a) Identification of New and Changed Compliance Obligations: Your Bank continuously monitors regulatory changes and assesses their impact on its operations. Any new or modified compliance obligations are promptly identified to ensure awareness and understanding across the organisation. (b) Evaluation and Implementation: Once identified, these changes are thoroughly evaluated to determine their implications for your Banks compliance obligations. Necessary changes are made to the compliance obligations, internal policies, systems, and processes ensuring that regulatory requirements and controls are effectively integrated into day-to-day business processes. Your Bank has created a robust annual Compliance Risk Assessment Program and Quality Assurance Program to assess the compliance risk and ensure sustenance of compliance standards. Your Bank has embraced technological innovations to redefine compliance controls and standards. Your Banks Continuous Compliance Monitoring (CCM) is an industry-first technological solution leveraging data analytics and artificial intelligence to comprehensively monitor scenario-based alerts on any transactional deviations within 24 to 48 hours. The state-of the-

231 art Anti-Money Laundering solution provides exhaustive list management and screening capabilities of individual transactions and customers, in line with the Financial Action Task Force (FATF) recommendations and international standards. Your Bank has also developed a comprehensive obligation register covering all relevant statues and regulatory authorities/ industry bodies, supplemented by a manual of instructions to each department for process mapping, gap identification and periodic confirmation of compliance through self- testing, monitoring, concurrent and internal audits. Periodic compliance confirmation to the Board and the Regulator by your Bank are based on actual testing and affirmations carried out on all transactions from time to time. Additionally, the Compliance Department ensures that all major policies are reviewed to align with regulatory requirements before approval by the Board. With these concerted efforts, your Bank proudly presents its Compliance Model as a benchmark for the industry, steadfast in our commitment to regulatory adherence and ethical business practices.

In recent times, the legal environment in the country has become increasingly dynamic, with new laws and amendments to the existing laws being enacted at a very brisk pace. In order to cope with this change and to ensure legal compliance, it is imperative that a robust legal risk management process be laid down that helps your Bank to mitigate the legal risk which falls under the larger umbrella of operational risk. Your Bank has a healthy compliance and legal risk management culture. The processes are designed to ensure legal and regulatory compliance and to enable the detection and prevention of any breaches. The Legal Department of your Bank frames processes and controls that can efficiently manage and mitigate the legal risks originating from the daily business transactions of your Bank. Further, your Bank has a well-laid system, which ensures that the documentation process is contemporary and in tune with industry standards, thus minimising the menace of legal risk, and in the meantime enhancing customer experience. New products, processes and schemes introduced by your Bank invariably undergo legal vetting by the Legal Department to ensure legal compliance and proper analysis of the legal risks involved. Moreover, Legal Department renders professional and expert advice on various legal issues associated with your Bank. With the strong objective of making your Bank a Zero Customer Complaint Bank, strenuous efforts are being made to reduce the number of suits/ complaints filed against your Bank before different courts/ consumer forums. Legal Department keeps all teams well informed on legal challenges/ issues. The Legal Department also updates the teams/ offices/ branches of the relevant amendments/ modifications to statutes from time to time. Through various concerted efforts, the Department aspires to be the best in house legal team in the industry.

The Tax Policy of your Bank is approved by the Board of Directors and the same is disclosed in Website of the bank. Implementation of the Tax Policy is monitored by Board of Directors or Audit Committee. In some cases, this responsibility may be delegated to an executive-level position, such as the Managing Director (MD). Managing Director may further delegate the responsibility to Chief Financial Officer (CFO) or the Head of Taxation Department based on merit. The review of the tax policy should be conducted at least annually. If there are significant changes in your Banks operations or tax laws, the same may also be reviewed. Following are your Banks approach to regulatory compliance. a) Understanding the regulatory environment b) Developing tax-related policies and procedures c) Training and awareness d) Monitoring and auditing e) Collaboration with tax regulators. Your Banks approach to tax is embedded within its overall business strategy and operations. This includes Tax Transparency, Tax Risk Management and Tax Compliance, which cover risk identification, risk management and risk monitoring. To ensure effective tax governance and control, your Bank has established a comprehensive tax policy that addresses tax risk management and compliance with tax laws and regulations. This policy includes tax planning, internal controls and procedures for managing tax risks, as well as your Banks approach to resolving tax disputes and handling audits. Your Bank is committed to complying with all applicable tax laws and regulations and expects employees to act with integrity in accordance with these laws.

Additionally, your Bank has established a whistle-blower reporting system that allows employees to report concerns related to tax compliance anonymously, without fear of retaliation. Details of the whistle-blower policy can be accessed on Banks website. Your Bank is committed to addressing any generic concerns relating to tax in a transparent manner. It will ensure that such concerns are appropriately handled and if necessary, will take them up with bodies such as the Indian Bank Association to seek guidance and support. To ensure the effective implementation of your Banks tax policy, stakeholders are encouraged to direct any inquiries related to its implementation to their respective tax team line managers. If queries are not resolved within a reasonable timeframe, stakeholders may escalate the matter to the Head of the Taxation Department or the Chief Financial Officer of the Bank for further assistance. Compliance with the tax governance and control framework shall be evaluated through a combination of internal and external assessments by the Taxation Department/Internal Audit. External assessments may include (1) tax audits performed by statutory auditors under the provisions of the Income Tax Act, and (2) assessments by tax authorities as per the provisions of various applicable Acts.

Although your Bank is not currently subject to country-to-country reporting requirements, it maintains transparent communication with tax authorities and provides them with the information they request in a timely and accurate manner. Your Banks operations and tax strategies shall be transparent and align with the economic activities and value creation within the jurisdictions in which it operates.

In line with the Banks commitment to upholding high standards of integrity and compliance, the Anti-Money Laundering (AML) Monitoring Department plays a crucial role in protecting the institution from financial crime. In the past year, the department has strengthened its frameworks, enhanced its monitoring capabilities, and aligned itself more closely with both local and international regulatory requirements.

The AML transaction monitoring system was improved to enhance detection capabilities and reduce false positives. Your Bank received the Special Jury Award in August 2024 for its effective implementation of AML measures and recognition of women in Financial Crime Compliance (FCC). This accolade, awarded by Fincrime Expert, is based on an independent jurys assessment comprising experts from the FCC sector.

Participation in the working group formed by FIU-IND to develop red flags for virtual currencies and human trafficking has improved coordination and effectiveness in managing financial crime risk. Your Bank also participated as a member of the sub- working group on API based fraud constituted by FIU and the working group on Rupee Drawing arrangement. Your Bank contributed to development of guidelines to streamline the remittances processes of inward remittances through intermediary banks thereby fostering a more secure financial environment.

Your Bank pioneered the use of an independent screening solution (Firco Compliance Link) for trade remittances for secure and transparent screening. This improved the traceability and audit of transactions undertaken, reducing the risk of sanctions, fraud and increased compliance with regulatory requirements.

Machine learning tools and advanced analytics were deployed on a pilot basis to enhance the efficiency and accuracy of monitoring processes.

The department reviews customer transactions using a risk-based approach system. An external audit conducted by EY validated the processes and ensured accuracy in the system configuration and reporting.

System enhancements were undertaken to ensure the timely submission of regulatory reports through the FIU-INDs new portal, FinGate.

Your Bank developed and deployed a risk assessment framework tailored to the banks profile which resulted in identifying and mitigating risks proactively. The results of the risk assessment provide an insight into the ML/TF risk the Bank is exposed to, given the nature and complexity of its business, its customers, products and services and exposure to countries known as risk areas. This in-turn is a factor in the formulation or calibration of AML/CFT policies and action plans including the customer identification procedure. The Internal risk assessment inter alia depicts the customer risk matrix, and this is considered to review the level of due diligence and information collated.

Your Bank implemented a comprehensive training program for all team members in partnership with M/s Fintelekt and intense training focussed on AML risks and compliances was provided for newly inducted resources. This helped to increase staff awareness and competency in AML practices, contributing to a culture of compliance and vigilance throughout the organization.

In the upcoming year, the AML Monitoring Department plans to further enhance its operations by incorporating artificial intelligence tools, increasing data analytics capabilities, and improving customer risk scoring models. Additionally, there will be a focus on aligning with forthcoming regulatory changes and strengthening the monitoring of cross-border transactions. Your Banks achievements in implementing effective AML measures and contributing to the broader industry landscape validates its hard work and dedication and also inspires the organisation to continue pushing boundaries of AML excellence

The banking industry has continued to evolve rapidly, driven by technological advancements and changing customer expectations. The rise of digital banking, fintech innovations and increased regulatory requirements have reshaped the overall landscape. Federal Bank has embraced these changes, leveraging technology to enhance customer experiences and streamline operations. FY 2024-25 has been marked by significant achievements and milestones. The strategic vision of the 3S framework—Segment, Scale and Sustain—continued to guide our approach in an ever-evolving business ecosystem. By integrating these pillars with product, programme and pulse, the Bank has created a holistic and dynamic strategy that drives brand success and deepens customer engagement.

Read more about Federal Banks marketing initiatives in FY 2024-25 on page 38 of the Integrated Annual Report

As the demand for banking services continues to rise, it is essential for banks to adopt a customer-centric approach to meet the evolving needs and expectations of their customers. This approach involves prioritizing customer satisfaction and tailoring services to enhance the overall customer experience. Your Bank thus, initiated a Quality movement in 2012 with the following objectives:

Ensure standardization in the look and feel of branches, as well as uniformity and predictability across all the Banks touchpoints.

Create, systems, processes, and procedures, inherently capable of continuous improvement.

Ensure standardisation in customer communication.

Monitor customer feedback through surveys, thus capturing insights into customer satisfaction and areas for improvement.

Your Bank has established a dedicated team to identify and implement process improvements that are crucial from a customer perspective. This team is devoted to enhancing the overall customer experience by streamlining operations, reducing inefficiencies, and ensuring that customer needs are met promptly and effectively. In FY 2024-25, your Bank successfully rolled out over 80+ projects, demonstrating its commitment to continuous improvement and customer satisfaction.

Your Bank has an efficient customer service team who are trained to assist the customer with inquires and concerns related to the banking services. Addressing the customer queries on time demonstrates our commitment to service excellence, contributing to your Banks success and profitability.

Your Bank is dedicated to building strong relationships, ensuring customer convenience, and delighting its customers. To enhance customer experience and brand trust, the Bank has increased capacity in call centers, strengthened the grievance mechanisms, upgraded web-based portal services, and introduced various initiatives to simplify customers lives. Additionally, the Bank observes Customer Day on the 15^th of every month, fostering deeper connections at the branches. Your Bank implemented a robust feedback mechanism to collect customer feedback. By actively listening to customers through these surveys, the Bank tailors its offerings to meet customer expectations, enhance loyalty, and maintain a competitive edge.

To continue enhancing customer experience and building strong relationships, your Bank will leverage AI to identify recurring issues and implement proactive solutions, ultimately enhancing customer trust and loyalty. These measures focus on ensuring operational excellence and service delivery with minimal gaps, based on customer feedback. The Bank strives to maintain high customer satisfaction and reduce the number of complaints through an efficient redressal mechanism. By prioritizing these initiatives, your Bank is committed to delivering exceptional service and fostering long-lasting customer relationships.

Corporate Planning Department plays a pivotal role in shaping the long-term vision of your Bank, steering the organization along its chosen path while upholding the ethos of CARES. It oversees a wide range of critical functions, including Strategic Planning, Budgeting,

Business Performance Monitoring, Analytics, Cost Management and the Management Information Systems. By closely tracking the financial, economic and regulatory environment and conducting regular benchmarking exercises, the department ensures that your Bank remains agile in its pursuit of excellence. The long-term vision of your Bank is crystallised by distilling learnings from the various exercises and incorporating the views of diverse stakeholders. Progress against set goals is also tracked regularly to ensure that the vision is translated into reality.

Building on firm foundations established over decades, your Bank embarked on the next leg of its evolutionary journey during the year. With renewed vigour under a new leadership, your Bank set out on its ‘Breakthrough phase to create Federal 4.0 by focusing on 12 major themes which are: 1. NIM Improvement, 2. Expanding Product Portfolio, 3. Fee Enhancement; 4. Branch Strategy for Scalable Growth, 5. Branch Transformation, 6. Brand Transformation,

7. Digital at the Fore, Human at the Core, 8. Renewed Digital Distribution Strategy, 9. People & Culture, 10. Cost Optimization, 11. Strengthening Assurance Functions and 12. Journey towards a Universal Bank. In line with the strategy of expanding presence for scalable growth, your Bank opened 85 new outlets in FY25 in select geographies. As on 31^st March 2025, your Bank had 1589 banking outlets and 2080 ATMs/ Cash Recyclers. Your Bank also set the bar higher for scale and profitability by crossing the milestones of Rs 5 Lakh Crore of Total Business and Rs 4000 Crore of Annual Net Profit for the first time during the year, all while maintaining decadal best asset quality. Despite some volatility in the near-term macro environment, the strategic repositioning initiated by your Bank promises to elevate it to a higher league in the future.

The Analytics and Data Science industry has witnessed significant advancements in recent years, driven by exponential data growth and the integration of AI and machine learning into data science workflows. The demand for data science skills has surged, with organizations leveraging data for strategic advantage and innovation. Key trends include the rise of real-time analytics, generative AI, augmented analytics, and cloud-native solutions, which are transforming how businesses operate and make decisions. In line with these developments, Data Science team of your Bank has made remarkable strides over the past year, having successfully implemented advanced machine learning models and AI-driven solutions to enhance customer experience and operational efficiency. The team has been instrumental in optimizing costs and uncovering strategic opportunities through data-driven insights. Notable achievements include the development of state-of-the-art analytical frameworks and the establishment of a Centre of Excellence for efficient delivery.

Looking ahead, your Banks Data Science team is poised for a breakthrough in the domain focussed on leveraging AI and Machine Learning. The team aims to enhance the capabilities in real-time analytics and cloud-native solutions to ensure speed, scalability, and security; with the principal objective to foster deeper customer relationships through personalized solutions and next-best actions. The future holds immense opportunities to drive innovation and strategic thinking. Exploration of new avenues to expand the data science driven initiatives to create additional revenue centres, optimise the costs and enhance portfolio quality. By staying abreast of the latest developments in the field, the team will ensure that your Bank remains at the forefront of the Analytics and Data Science industry.

The MIS team, operating within the Corporate Planning Department, plays a pivotal role in coordinating comprehensive report generation and reports automation. Their primary objectives include ensuring data quality, accuracy, and timeliness of information for management decision-making. The agile reporting of MIS enables branches and offices to align and organise themselves to the set goals. The automated reports/ insights to individual business units, by making use of cutting-edge business intelligence tools, enable the users to slice and dice data, helping them to derive meaningful insights and empowering them to take informed business decisions. The major activities handled by the team are - Critical Data Extraction Cell: which works on generation of critical reports (including regulatory) and allied processes, automation and centralized generation of regulatory returns, maintaining SOPs for these returns, and ensuring periodic review of the processes/ SOPs; - Quality Assurance Cell: which works on putting in place various quality checks for critical reports handled by MIS, identifying system/ process gaps which result in data errors and coordinating with different stakeholders for resolution of the issues; -Regulatory Reporting Unit: which is involved in submission of regulatory returns; - Automation and Projects team which explores possibilities in automating reports to different, creation and maintenance of analytical dashboards/ drill-down reporting, improving the efficiency of processes adapted by MIS. Supply of data to different applications and processes including SFTP, CX, Credit Card system,

Customer communication system etc; MIS Operations team: which is responsible for handling the adhoc data requests from branches/ offices, development and deployment of standard reports (‘CBS Reports), managing the scheduled activities and other day to day processes of MIS, and maintaining and ensuring completion of calendar list of activities performed regularly (daily/ monthly/ quarterly etc.).

Implementation of Enterprise Data Dictionary facilitating centralized repository that provides a unified overview of an organizations data assets, including definitions, metadata, relationships, and usage.

Implementation of Mobile Based Dashboard facilitating better data analysis and deriving actionable for business improvements/ monitoring.

TheCorporateSocialResponsibility(CSR)initiativesofyourBankspan a wide footprint, encompassing areas such as Skilling, Education, Healthcare, Women Empowerment, Environmental Sustainability and more. Through its sustainable practices, philanthropic efforts and deep-rooted community engagement, your Bank continues to make meaningful contributions towards societal betterment and creating a lasting positive impact. These projects are implemented through the Federal Bank Hormis Memorial Foundation, a dedicated special purpose vehicle for implementing and executing the Banks CSR activities.

K70.89 Cr 42,12,025

Investment in CSR initiatives Total beneficiaries of these initiatives (FY 25) Read more about the key CSR projects undertaken during FY 2024–25 by your Bank on page 88 of the Integrated Annual Report.

FedServ is a wholly owned subsidiary company of Federal Bank, established in 2018, that is fully dedicated to providing operational and technology-oriented services to your Bank. Since its inception, FedServ has played a crucial role in reengineering various operational activities and implementing process improvements, contributing to your Banks overall efficiency and effectiveness. During the financial year ended March 31, 2025, FedServ has provided support on 235+ operational activities, demonstrating its wide-ranging capabilities and expertise. Account opening Services, Contact Centre, Support activities of Trade Finance, Support works on Loan Collection, Loan Collections, Support on Legality process (execution of agreements), CASA and Credit Cards Sales, ATM monitoring and IT Software Development, are the major processes handled by FedServ. During the FY, FedServ has grown in volume by around 50% and expected to have a similar growth in upcoming years thereby generating higher reduction in cost for the Bank. FedServs primary objective is to enhance the customer experience by focusing on standardisation, process efficiency, error reduction, and continuous improvement. This ensures that customers receive consistent and high-quality services while minimising risks associated with operational activities. FedServ also places a strong emphasis on mitigating perceived risks through robust risk management practices, ensuring compliance with regulatory guidelines and best practices. FedServs unwavering commitment to excellence, innovation, and customer-centricity has been instrumental in driving positive outcomes for your Bank. By leveraging its operational and technological expertise, FedServ continues to contribute to the Banks overall operational efficiency, effectiveness, and customer satisfaction.

Established in 1995 and promoted by the Federal Bank, Fedbank Financial Services Limited or Fedfina (‘the Company) is a publicly listed company, in India. Fedfina is registered with the Reserve Bank of India as a Systemically Important Non-Deposit taking Non-Banking Financial company (NBFC-ND-SI). As on March 31, 2025, Federal Bank holds 61.0% stake.

The company operates with a vision to "Empower Emerging India with Easy Access to Loans". The Company focusses on the working capital requirements of the emerging self-employed segment of the MSMEs, through its product suite. The company offers Mortgage loans & Gold loans to its customer base. The company has its registered headquarters situated in Mumbai. The company has 694 branches, spread across 18 states and union territories with an employee base of 4,568.

The company focusses on the secured granular retail lending segment, particularly among self-employed individuals, underserved by traditional lenders, creating a substantial opportunity for growth. The company prioritises working capital loans with collateral. The company also offers tailored solutions for gold loan customers by understanding their needs.

Fedfina with its array of products across the mortgage and gold loans has seen industry leading growth.

For FY 2024-25, Fedfina sourced loans to the tune of C18,788 Cr (PY C13,579 Cr), registering a growth of 38.4% during the year. The total AUM growth for the year came in at 29.7% to C15,812 Cr (PY C 12,192 Cr). The company continued to increase its concentration towards the secured segment.

The company, in order to ensure efficient utilization of capital, has been advancing on the off-book path, employing a combination of co-lending and direct assignment strategies. As of 31^st March, 2025, 25.1% of the overall AUM was off-book.

The Net Interest Income improved 31.9% to C1,070.8 Cr (PY C812.1 Cr), on the back of improving yields, which rose 118 bps YoY to 17.4% (PY 16.2%) The Net total income for FY 2024-25 grew by 30.0% to C1,2226 Cr (PY C943.4 Cr), on the back of healthy NII growth.

The Operating profit grew 32.0% YoY to C520.1 Cr (PY C393.9 Cr). The Net profit de-grew 8.0% to C225.2 Cr (PY C244.7 Cr), impacted by a one-time inch-up in credit provisions done during the year. The Gross NPA increased 36 bps YoY to 2.02% (PY 1.66%).

The Net NPA declined 10 bps YoY to 1.23% (PY 1.33%).

The company is rated AA+/Stable by CARE, India Ratings & CRISIL, highlighting the increased confidence of its stakeholders.

The company has received a ‘Great Place to Work rating for the sixth consecutive year. With 4,568 employees across India, the Company is guided by four core values encapsulated in the acronym EPIC. The company aspires to epitomise these values: Execution Excellence, People Centricity, Integrity, and Customer Centricity. These principles are the foundation of its organisational culture and guide its actions. It also realises its responsibilities and recognises the importance of CSR activities in creating a social impact on its customers and society at large.

Ageas Federal Life Insurance Company Limited (AFLI) continued its steady growth in FY 2024-25 focusing on expanding its distribution network, enhancing digital capabilities, and improving customer experience. It made meaningful progress on its transformation journey through investments in technology, operational efficiency, and product innovation. AFLI maintained a strong balance across its product portfolio while delivering healthy business performance. Sustainability remained a key focus, with ESG principles integrated into Companys strategies. The Company is well-positioned for continued growth in FY 2025-26. AFLI achieved 11% growth in New Business Premium (NBP) for FY 2024–25. The Company also maintained a well-balanced distribution in Individual New Business Premium, with 77% from Regular Premium and 23% from Single Premium.

In FY 2024-25, there was a continued focus on customers seeking financial solutions to strengthen their future and achieve their desired lifestyle. AFLI remains dedicated to its strategic objectives, working to support customers in this process while contributing to the broader goal of building a healthier and more sustainable society.

In todays interconnected world, the role of digitalisation is more important than ever. Ageas Federal Life Insurance (AFLI) has made significant strides in its journey, prioritising people at the core of its operations. The Company has equipped its workforce with the necessary digital tools to effectively perform their roles. To simplify the insurance process for customers, AFLI has reimagined the customer experience through innovative digital solutions. By investing in advanced technology and focusing on digital channels and online platforms, the Company has streamlined the process, ensuring a seamless and efficient experience at every stage of the customer journey.

AFLI has demonstrated strong adaptability to macroeconomic changes, including shifts in interest rates and market conditions. The Company adjusted its product mix accordingly to offer improved terms to customers while maintaining a balanced portfolio. Through close collaboration with its distribution partners, AFLI has strengthened its position in the market, achieving a 31% growth in New Business APE. Despite the ongoing competitive pressures in the life insurance industry, AFLI remains well-positioned for continued growth. The

Companys Operating Cost Ratio stands at 19%, and it recorded a profit before tax of C 90 Crore for the year.

The organisations commitment to creating an exceptional employee experience has earned it the distinction of being recognised as a Great Place to Work? for the sixth consecutive year and Indias Best Workplaces in BFSI Top 50.

The organizations dedication to corporate governance was recognized with a Certificate of Appreciation at the 24^th Annual National Awards for Excellence in Corporate Governance.

Ageas Federal Life Insurance has been recognized as the Runner-Up in the Emerging Insurers Highest Growth - Life Insurance category at the ASSOCHAM 16^th Global Insurance Summit & Awards. In recognition of our consistent efforts, creative execution, and positive approach to brand-building. AFLI was also awarded with the prestigious The Corporate Titan Award for Excellence in Brand Storytelling.

Ageas Federal Life Insurance embarked on its Transformation Journey "Reimagine Tomorrow". The company transformation Journey is led by 8 Pillars i.e. Unlock potential of Bancassurance, Rebuild Proprietary Channels, Strategic Partnerships, Create Digital Distribution Capabilities, Harnessing the Power of Data and Digital, Enhancing Customer Centricity, Building Team spirit and a Collaborative Culture and putting Sustainability at heart of our Business. The strategy is driven by the set of core values at its foundation: Care, Dare, Deliver and Share.

Over the last three years, we have made significant progress on the identified 8 pillars of our Transformation Journey. In line with these objectives, AFLI further strengthened its relationship with Federal Bank, its Promoter and largest Bancassurance partner. To deliver a seamless experience to customers AFLI and Federal Bank have integrated the customer journeys across Digital platforms, Loan Platforms and Relationship Manager assisted journeys. As a step forward in providing customized solutions, AFLI and Federal Bank are jointly developing analytic models to provide pre-approved cover to meet the needs of Banks customers.

AFLI implemented an automated underwriting system in partnership with Indias leading Reinsurer. This has led to high straight through processing and steep reduction in turnaround times. This has improved customer satisfaction, increased operational efficiency, and built scalability to process higher business volumes.

Customer centricity has been a key focus area and we are making continuous efforts to make our customer onboarding and service journeys as effortless as possible. We have made significant progress in reducing on boarding turnaround time, improving persistency, customer retention and reduction in customer complaints.

AFLI successfully implemented ‘Plug n Play digital Infrastructure for Group Policies. This provides us with the capability to integrate seamlessly with large digital partners and provide best-in-class experience. ‘Sprout our digital group onboarding platform has enabled us to partner with large sized digital distributors, which has led to exponential growth in our digital distribution. Another ‘plug n play solution which went live was ‘Credit Life Connect. It enables the co-orgination of group policies against the loans offered by the bank, in a seamless digitally enabled journey for a great distributor and customer experience.

AFLI also focused on growing its proprietary channels - Agency, Group and DST in a smart, calibrated manner. All the above channels have shown growth in FY 2024-25. We revamped our website for an improved look and feel, reflecting the vibe of Transformation within the company.

Upgrading our core IT systems to enhance reliability and scalability was a significant milestone in this journey; we have completed the migration of our policy administration systems and workflow. Additionally, we initiated the roadmap to modernize our data architecture, laying the foundation for a data driven organization with growth and innovation.

As we embarked on this transformation journey, sustainability remains at the forefront of our priorities. Committed to the UN Sustainable Development Goals (SDGs), we are integrating sustainability into all aspects of our strategy and core business decisions. We have developed an actionable plan with measurable targets to ensure that sustainability is not just a goal but a fundamental principle guiding our operations.

Ageas Federal Life Insurance is excited to usher in a new era of transformation, dedicated to building a future steeped in sustainability and excellence. We are confident that our strategic initiatives and commitment to sustainability will drive continued success and value creation for all stakeholders.

In todays dynamic business environment, keeping pace with evolving customer expectations and regulatory developments remains central to our product strategy. During the year, a strong emphasis was placed on portfolio expansion and product refinement to ensure relevance, simplicity, and value for our customers. We now offer a comprehensive suite of 29 products catering to the protection, savings, investment, and retirement needs of a wide range of customer segments. This year, we successfully launched Super Cash Supreme Plan under the Par category, which has seen encouraging traction owing to its unique benefits and flexible income options. In the Group business segment, we strengthened our credit life portfolio with the launch of the Group Home Secure Plan - a new Mortgage Reducing Term Assurance (MRTA) product. In response to the growing demand for retirement solutions, we launched the Golden Years Pension Plan, offering customers a dependable source of income in their post-retirement years. Additionally, we introduced three new riders - Group Accidental Rider on the group platform, and Critical Shield Rider and Accident Care Rider on the individual platform, to enhance protection coverage.

To support the evolving investment preferences of our policyholders, two new fund options were added to our Life and Pension fund suite

- Bluechip Fund Pension and Momentum Growth Fund, offering opportunities for long-term capital growth. In line with regulatory updates, the entire product suite was comprehensively revamped to ensure compliance, improve operational efficiency, and deliver a superior customer experience. Furthermore, nine existing products were enhanced through feature upgrades or repricing to improve alignment with market needs and movements. Our continued focus on innovation and responsiveness has enabled us to deliver a strong and future-ready product proposition, reinforcing our commitment to meeting the diverse financial goals of our customers.

Based on Consolidated Financials, the total gross revenue generated by the Company during the financial year ended March 31, 2025, was C 383 Crore as compared to C 236 Crore during the previous financial year. Profit before tax posted by the Company for the financial year ended March 31, 2025, was C 130 Crore as against C 60 Crore reported in the previous financial year ended March 31, 2024. Profit after tax was C 98 Crore for the financial year ended March 31, 2025, as against C 44 Crore in the previous financial year. Net worth increased to C 264 Crore from C 157 Crore in the previous year. Also, during the FY 2024-25, Equirus was honoured as a "Great Place to Work" for the Third consecutive year.

As on March 31, 2025, below are the subsidiaries of ECPL along with their key businesses:

Equirus Securities Private Limited (ESPL) - Institutional broking business in the cash and derivative segment and is also registered as Research Analysts and Depository Participant.

Equirus Wealth Private Limited (EWPL) – Distribution of wealth products, Portfolio Management Services, Stock Broking, Depository Participant and Investment manager to SEBI registered category – I AIF. EWPL (IFSC Branch) is investment manager to IFSC registered category – III AIF.

Equirus Finance Private Limited (EFPL)– Incorporated to carry out NBFC activity subject to receipt of approval of RBI license.

Equirus Raghnall Insurance Broking Private Limited (Associate Company)- Insurance Broking (Direct- Life & General). The company has observed strong growth during the year in all businesses, including the businesses of subsidiaries. Some of the highlights of the performance are as under:

In FY 2024-25, Equirus delivered 30 transactions with 24 Capital market transactions comprising 8 IPOs/ Pre-IPOs, 5 QIPs, 11 Blocks and 6 advisory (M&A/ PE/ Structured Finance) transactions. The pipeline of transactions is robust and now gearing towards larger transactions.

The Institutional Equities division of Equirus demonstrated robust performance in FY 2024-25, achieving a total revenue of C124 Crore, up from C 76.9 Crore in FY 2023-24, reflecting substantial year-on-year growth. Turnover in the cash segment rose significantly to C 1,52,779 Crore from C 1,09,996 Crore in the previous year, while the F&O turnover also saw a notable increase from C 2,20,828 Crore to C 4,19,630 Crore. The revenue contribution from domestic institutional investors (DIIs) remained dominant, comprising 82% of the total revenue, although foreign institutional investor (FII) share improved to 16%, up from 12% in FY 2023-24. Equirus maintained a stable market share in DII cash turnover at 2.2%, with FII market share steady at 0.1%.

Equirus Wealth enters FY 2025-26 with strong momentum across all business verticals, underpinned by robust revenue growth, strategic acquisitions, and an expanding client base. The company surpassed a key milestone in FY 2024-25 by crossing C 18,000 Crore in AUM, a growth significantly accelerated by the acquisition of Credence Family Office. This strategic acquisition deepens Equirus reach in the HNI and UHNWI segments, reinforcing its wealth and distribution platform while setting the stage for infrastructure and product integration in Q1 FY 2025-26.

The distribution vertical reported a 30% YoY revenue growth, coupled with a 47% increase in AUM, highlighting its strong client traction.

The AMC business remains strategically focused, with upcoming launches such as a Pre-IPO/PE fund and an ELHF offshore product through GIFT City. While AUM saw some moderation, continued investments in expanding the sales force, enhancing operations, and strengthening distributor engagement are expected to drive positive inflow momentum in FY 2025-26.

Equirus Raghnall Insurance Broking enters FY 2025-26 on a strong footing, having recorded a 23% increase in revenue, rising from C2,404.3 Lakh in FY 2023-24 to C2,964.7 Lakh in FY 2024-25. Premium collections showed consistent quarterly momentum, culminating in an annual total of C11,777.6 Lakh, with notable contributions from the Fire, Health, and Miscellaneous segments. EBITDA rose significantly to C376.6 Lakh from C99.3 Lakh, reflecting enhanced operational efficiency and disciplined cost management, despite moderate increases in total expenditure.