IDBI Bank Ltd Management Discussions

Management Discussion and Analysis report

BUSINESS ENVIRONMENT

The global economic growth remained resilient in 2025, albeit below historical averages, supported by accommodative financial conditions that partially aided in offsetting headwinds arising from tariff-related uncertainties and elevated geopolitical and inflationary risks. The monetary policy stance by major central banks since late 2025 shifted to a pause-and-assess mode, with most advanced economies pausing or selectively tightening their policy stance, amid persistent inflation and heightened uncertainty, and emerging market economies adopting cautious, inflation-dependent easing or steady policy stances in response to moderating inflation and slowing growth. Global financial markets, after remaining relatively buoyant through late-2025 driven by easing inflation and accommodative policies, turned volatile in early-2026 due to heightened geopolitical tensions, rising energy prices, renewed inflationary risks and shifts in monetary policy expectations.

Against this backdrop, Indias domestic activity remained upbeat, mainly driven by healthy private consumption supported by improving rural and urban demand, rationalisation in the Goods & Services Tax (GST) rates and monetary policy easing. Investment activity sustained momentum, benefiting from ongoing structural reforms, favourable financial conditions and continued public infrastructure spending.

On the supply side, the services sector remained buoyant and manufacturing activity gained traction, while agricultural growth moderated due to weather-related disruptions. At the aggregate level, strong domestic drivers more than outweighed the adverse impact of net exports, supporting overall growth resilience. Domestic financial markets witnessed intermittent episodes of volatility during H2 FY 2025-26 amid heightened global uncertainty and volatile capital flows, though the overall market condition remained broadly resilient.

Embarking on a monetary policy easing stance, the Monetary Policy Committee (MPC) of the RBI cumulatively reduced the key policy rate, i.e. Repo Rate, by 125 basis points in the calendar year 2025.

Monetary policy transmission strengthened during H2 FY 2025-26, supported by a healthy pass-through to both lending and deposit rates. This, coupled with favourable macroeconomic environment and fiscal stimulus, had a positive impact on the banking sector performance in FY 2025-26. Backed by strong capital buffers and low Non-Performing Asset ratios (NPAs), the banking sector catered to the healthy demand for bank credit in the economy during the year. The overall credit growth was broad-based, led by strong industrial lending, particularly to MSMEs and infrastructure, alongside robust growth in loans to the agricultural and services sectors as well as personal loans, underpinned by sustained buoyancy in the overall economic activity. Correspondingly, the growth in the bank deposits, while lagging the credit growth, remained healthy, largely led by growth in demand deposits.

Going forward, upside risks to inflationary pressures from higher energy prices and volatile financial markets have heightened uncertainty in the global macroeconomic and financial outlook. Amid elevated geopolitical uncertainties, Indias macroeconomic outlook remains resilient, supported by strong fundamentals, namely, sustained growth, low and stable inflation and ongoing fiscal consolidation, which is likely to provide buffers against adverse global spill-overs. However, the recent surge in global crude oil prices following the geopolitical tension, compounded by supply disruptions, poses upside risk to inflation and may adversely impact growth momentum. In navigating this challenging environment, fiscal and monetary policy actions in India are expected to remain firmly oriented towards anchoring price stability, while simultaneously providing appropriate support to economic growth.

BUSINESS REVIEW

Operating in a macroeconomic environment characterised by healthy and steady economic growth, the Bank pursued its strategic imperatives with discipline and focus, capitalising on emerging opportunities and delivering sustained improvement in its business growth and profitability. The strategic measures and initiatives undertaken by the Bank across various functional areas have been delineated under the respective segments of this section of the Annual Report.

Consistent with its objective of expanding its outreach and enhancing service delivery, your Bank continued to focus on strengthening its physical as well as digital network through targeted branch expansion across the length and breadth of the country, deeper penetration in rural areas through Business Correspondent (BC)-led models and continued investments in digital banking platforms. As a part of its ongoing efforts to expand outreach, the Bank further strengthened its distribution network in FY 2025-26 by opening 115 new banking outlets, comprising physical branches and fixed Business Correspondent (BC) outlets operating under the IDBI SAMEEP model. The Banks network of banking outlets serves as the cornerstone of a comprehensive ecosystem focussed on delivering customer convenience. Understanding the evolving expectations of customers, the Bank offers flexibility through multiple alternate and digital delivery channels, that is, a nationwide network of Automated Teller Machines (ATMs) and a comprehensive suite of digital banking services, including internet banking, mobile banking and WhatsApp banking. This multi-channel approach simplifies access and strengthens engagement with the Banks customers, reinforcing a customer-friendly banking experience while maintaining high standards of security and trust.

Guided by a customer-first philosophy, your Bank continued to offer a comprehensive suite of deposit, loan and investment products and services tailored to the varied requirements of its diverse customer base. In response to evolving market trends and customer behaviour, existing products and services are reviewed from time-to-time and new variants are introduced to ensure continued relevance and competitiveness. Your Banks deposit strategy focussed on deepening customer relationships and enhancing deposit stickiness through differentiated, segment-specific offerings. Offering tailored deposit solutions across various customer segments and complementing these offerings with state-of-the-art digital capabilities, your Bank focussed on being a partner to its customers in catering to their varied financial needs across lifecycle stages and business requirements. The Banks advances strategy is defined by a strategic shift towards granular loan portfolio through a balanced mix of retail, Micro, Small, and Medium Enterprises (MSME) and corporate lending, while maintaining strong asset quality and risk discipline. Retail advances and MSME financing continued to remain key focus areas, offering stable yields and lower credit concentration. Complementing this, your Bank pursued corporate lending selectively to ensure optimised returns while prudentially managing the associated risks. Apart from enhanced due diligence during the credit appraisal stage, the Bank has put in place credit monitoring process to ensure timely identification and mitigation of stress in its loan portfolio, in line with its objective of building and maintaining a quality loan portfolio.

Adopting a robust and proactive approach to compliance, corporate governance and risk management, the Bank continued to strengthen its internal systems, controls and processes, in consonance with the defined regulatory and statutory guidelines. To ensure that the established norms are effectively adhered to, the Bank places strong emphasis on continuously educating and sensitising its workforce through regular training, workshops and internal communications to help them clearly understand their roles, responsibilities and expected standards of conduct. Further, transparent and clear accountability norms, along with well-defined reporting structures and robust monitoring mechanisms, have been defined to ensure strict adherence to internal policies as well as regulatory and statutory requirements on a bank-wide level.

As the Bank charts its future course, customer-centricity shall continue to be a core pillar of its business strategy, reinforcing trust through enhanced customer experiences and nurturing enduring customer relationships. Emphasis shall continue to be placed on stable and sustained business growth through focussed expansion of deposit base and lending portfolio, underpinned by prudent risk management and portfolio diversification. By leveraging evolving technological capabilities, the Bank shall continue to promote increased adoption of digital solutions and process automation to further improve operational efficiency, enhance service delivery and support the development of innovative banking solutions. The Bank will also further strengthen its compliance and governance frameworks, with a continued focus on maintaining stakeholder confidence and preserving the integrity and reputation of its brand.

RETAIL BANKING

Retail Liability Products

Your Bank offers a comprehensive range of deposit products, specifically designed to cater to the diverse banking needs of customers across all segments of the society. These deposit products are tailored to suit both individual customers, including general citizens, senior citizens, super senior citizens, pensioners, students, Non-Resident Indians (NRIs) as well as non-individual customers, including proprietorships, partnership firms, corporates, Government Institutions, Trusts, Associations, Societies, Clubs and other banks (including Co-operative Banks).

Your Bank pursued its endeavour of refining and improving upon existing products and processes, in tandem with rapidly evolving customer needs and dynamic market conditions. The Banks efforts were directed towards enhancing the share of retail depositors and augmenting its low-cost deposit base.

During the year, your Bank introduced a new product in the payroll segment, viz. the Government Sector Salary Package, to attract salary accounts of the Central and the State Governments, Public Sector Units (PSUs) and large corporate entities. The Bank introduced a new product for High Net Income (HNI) customers in the personal banking segment, viz. IDBI Opulentia Savings Account. Your Bank introduced two special variants of fixed deposits, viz. Tender Fixed Deposits designed for customers participating in tenders and bids and Aarogya Fixed Deposits, offering the dual benefit of deposit safety and health insurance coverage. The Bank introduced Real Estate (Regulation and Development) Act, 2016 (RERA) online platform to facilitate seamless user experience. The Bank has developed Application Programming Interface (API) models for National Electronic Funds Transfer (NEFT) and Real-Time Gross Settlement (RTGS) to offer access to Centralised Payment System (CPS) to sub-member banks. The Bank also reduced Monthly Average Balance (MAB) requirements in the Current Accounts to remain competitive in the market.

With a view to enhancing customer convenience during on-boarding, the Bank leverages state-of-the-art technology under the Video Account Opening (VAO) platform, enabling individuals to open new accounts digitally. Your Bank has been driving customer engagement through extensive usage of data analytics and adoption of Customer Relationship Management (CRM) tools, so as to foster enhanced business penetration.

During the year, the Bank ensured that the revisions in the interest rates were meticulously calibrated across select deposit buckets to mitigate potential impact on funding costs as also to ensure continued market competitiveness.

As part of its growth strategy, the Bank continued to expand its geographical footprint through the opening of new branches. Concurrently, the Bank leveraged its capital light and scalable hybrid delivery model, comprising brick-and-mortar branches and digital platform such as kiosks, to expand its reach and to further strengthen its deposit base.

NRI Services

Your Bank offers Non-Resident (External) (NRE) Deposits, Non-Resident Ordinary (NRO) Deposits and Foreign Currency Non-Resident (FCNR) Deposits for its Non-Resident Indian (NRI) customers. Further, the Bank facilitates investments by NRI customers, including equity market investments through Portfolio Investment Scheme (PIS), remittances through Society for Worldwide Interbank Financial Telecommunications (SWIFT) and other modes as well as loans to meet the banking and financial needs of the Indian diaspora across the globe.

Your Bank continues to undertake product and process improvements for augmenting customer experience, enhancing service delivery and ensuring convenient banking for its NRI customers.

Retail Assets

In line with its retail-focussed strategy, the Bank further strengthened its presence in the structured retail asset segment during the year, driven by calibrated growth across a range of retail loan products, including Housing Loans, Loans against Property, Auto Loans, Personal Loans, Education Loans, Solar Rooftop Financing and Loans against Securities. The Bank periodically reviewed product features and internal processes to ensure alignment with evolving market conditions, regulatory expectations and the changing preferences of customer segments, including emerging Gen Z borrowers.

@ - Others includes Staff home loan, Loan against securities, Merchant Establishment Overdraft, Housing Loan - Co-lending, Solar Roof Top finance.

During the year, your Bank crossed Rs.1 lakh crore milestone for its Structured Retail Asset (SRA) book, registering an annualised growth of 12.02% with 11.40% annualised growth in the housing loan book and sustained double-digit growth across all major product categories. The quality of the SRA portfolio remained stable, with minimal slippages and Gross NPA level for the portfolio being below 1.42% as on March 31, 2026, reflecting the Banks continued emphasis on prudent underwriting and portfolio monitoring.

Responding to the evolving needs of its retail customers, the Bank sustained its emphasis on home loans and strengthening acquisition momentum through the introduction of new variants such as the Elite Home Loan Balance Transfer scheme for self-employed professionals and self-employed non-professionals with established repayment behaviour. At the same time, the Bank deepened its engagement with Government-linked green energy initiatives by scaling up Solar Rooftop Financing, expanding its footprint in the electric two-wheeler segment and enhanced digital outreach through the increased adoption of pre-approved personal loans on online platforms. The education loan portfolio was further supported through offerings under the Prime Minister Vidya Lakshmi Scheme, facilitating financing for students pursuing higher studies at select premier institutions within India and overseas.

With a focus on enhancing operational efficiency and customer experience, the Bank upgraded its Automated Loan Processing System to improve decision-making quality, reduce turn-around-time and strengthen fraud- detection capabilities. These efforts were complemented by continued migration of manual workflows to digital platforms, in alignment with the Banks broader digitisation agenda. Alongside these initiatives, the Bank remained committed to advancing financial inclusion by extending benefits under various subsidy schemes of the government, including the Central Sector Interest Subsidy Scheme (CSIS) while also processing renewal claims under discontinued schemes such as the Dr. Ambedkar CSIS and the Padho Pardesh Scheme. The Bank further supported socio-economic development by providing financial assistance to differently-abled individuals under the National Divyangjan Finance and Development Corporation Scheme at subsidised interest rates. Under Pradhan Mantri Awas Yojana -Urban 2.0, the Bank facilitated housing credit to eligible customers across the Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Group (MIG) categories, thereby contributing meaningfully to the national objective of promoting affordable housing.

Credit Cards

Your Bank offers diverse range of credit card variants such as RuPay - Winnings Select, Visa - Royale Signature, Aspire Platinum, Imperium Platinum and Mastercard - Euphoria World, across multiple network schemes, designed to meet the varied needs and preferences of its diverse customer segments. As part of its efforts to strengthen its credit card offerings, the Bank partnered with LIC Cards Services Ltd. (LICCSL) to offer co-branded credit cards on the RuPay scheme, namely Eclat and Lumine. To enhance customer service and improve ease of use, key credit card functionalities were seamlessly integrated into credit card internet banking and the GO Mobile+ app, enabling customers to make realtime bill payments, request card replacement, view payment history and access other essential services. Additionally, the integration of Bharat Bill Payment System (BBPS) across all mobile-based platforms provided customers with greater flexibility managing credit card bill payments. In addition, the Bank introduced a range of offers and discounts for credit card holders to encourage higher spend levels and support improved profitability.

PRIORITY SECTOR BANKING

The Bank continued to play a significant role in advancing Priority Sector Lending (PSL) in line with the mandate of the RBI. During the year, your Banks lending efforts were primarily directed towards the agriculture and Micro, Small and Medium Enterprises (MSME) sectors, in accordance with regulatory requirements. To deepen financial inclusion and extend credit access to underserved regions, the Bank continued to service un-serviced and under banked areas through its Corporate Business Correspondent and Business Facilitator network. In this regard, the Bank further strengthened its outreach through dedicated BC outlets branded as IDBI SAMEEP, which provide specified banking services permitted by RBI at locations identified by the Bank. The Bank successfully achieved all prescribed targets for PSL, including sub-targets, on an average basis as on March 31,2026.

In alignment with Government of India initiatives, the Bank extends loans under various Central Government and State Government sponsored schemes such as Pradhan Mantri Mudra Yojana (PMMY), Prime Minister Street Vendor Atmanirbhar Nidhi (PMSVANidhi), Prime Minister Employment Generation Programme (PMEGP), Agriculture Infrastructure Fund (AIF), PM Formalisation of Micro Food Enterprises (PMFME), Pradhan Mantri Vishwakarma Kaushal Samman (PM Vishwakarma), among other schemes. The Bank also remained committed towards supporting minority communities and weaker sections, including Scheduled Castes (SCs) and Scheduled Tribes (STs).

To further strengthen its PSL portfolio, the Bank undertook several strategic initiatives during FY 2025-26. To meet growing demand from the MSME sector, the Bank identified additional 100 branches with high potential of MSME business, taking the total number of specialised MSME branches to 200. The network of agri-focussed branches was also substantially expanded, increasing the count from 80 to 243 branches to generate and support agricultural business opportunities. In line with government initiatives to strengthen MSME financing, the Bank launched Mutual Credit Guarantee Scheme for MSMEs (MCGS - MSME) in line with Department of Finance, Ministry of Finance, to provide guarantee coverage for eligible term loan of up to Rs.100 crore for projects involving purchase of equipment and machinery. To enable branches to attract incremental business and support the food and agro-processing ecosystem, the Bank has introduced special pricing concession for loans extended to food and agro-processing units. The Bank introduced a digital platform ‘Property Power Xpress for processing of existing ‘Property Power loans through web-based interfaces. The platform leverages GST registration and transaction data to provide MSMEs with faster and more convenient access to credit, while significantly reducing manual intervention in loan processing.

The Bank has undertaken end-to-end digitalisation of its Supply Chain Finance offering by transforming Channel Finance for Dealers of Corporate and Standalone Dealer Finance into an Electronic Supply Chain Finance (eSCF) platform. In order to drive focussed growth and streamline execution under this product, a dedicated eSCF cell has been established for channelising business and overseeing operational coordination.

The eSCF portfolio of the Bank continued to exhibit consistent and robust growth during the year, while maintaining strong asset quality with nil non-performing assets during the year. The Bank crossed cumulative dealer sanctions of Rs.741.75 crore and processed over 23,597 transactions during the year, achieving a total throughput of Rs.2,406.21 crore under the eSCF platform.

In order to further enhance efficiency and scalability, the Bank is continuously pursuing product and process innovations through digital solutions aimed at reducing turnaround time and strengthening operational effectiveness. A key milestone in this journey has been the introduction of technological advancement for digital processing of MSME loans, minimising manual intervention and enabling faster, more seamless digital approvals. The eSCF platform represents a key technological advancement introduced by the Bank for digitalisation of funding operations, enabling faster credit delivery with minimal manual intervention.

Further, collaborative partnerships with select fintech players are being explored to extend reach and fast-track digitalisation initiatives. The Bank has forged partnership with 18 corporates across diverse industry segments, extending channel finance support to dealers of corporates.

These initiatives reinforce the Banks commitment to advancing Priority Sector Lending, strengthening MSME financing and supporting inclusive and sustainable economic growth by combining scale with innovation to deliver smarter, more efficient financial solutions.

THIRD PARTY PRODUCTS AND CAPITAL MARKET PRODUCTS

The Banks Third-Party Distribution (TPD) segment continues to play a pivotal role in offering a diversified suite of value-added products and services to its customers suitability, risk profiles, financial goals and investment objectives. Anchored in a strong customer-centric philosophy, the Bank has steadily transitioned its approach from transactional sales to value-based engagement, while ensuring strict adherence to complaint business practices. The strategic shift has enabled creation of a continuous and sustained source of fee income for the Bank.

During the year, the Bank undertook several initiatives to foster value-driven sales through enhanced customer understanding and personalised advisory support. These efforts were complemented by partnerships with some of Indias most trusted and reputed institutions. In the life insurance segment, the Bank offers products of Life Insurance Corporation of India (LIC) and Ageas Federal Life Insurance Company Ltd. (AFLI). In the general and standalone health insurance space, the Bank has tied up with New India Assurance Co. Ltd. (NIACL), TATA AIG General Insurance Co. Ltd. (TAGIC) and Niva Bupa Health Insurance Co. Ltd. (Niva Bupa), enabling customers to access a comprehensive range of insurance solutions.

Your Bank has also expanded its presence in the investment segment by entering into Mutual Fund (MF) distribution agreements with multiple Asset Management Companies (AMCs), thereby offering customers a wide choice of schemes across asset classes. In addition, customers are provided access to other investment avenues such as National Pension System (NPS) and Government of India (GoI) Bonds, including Floating Rate Savings Bonds, Sovereign Gold Bonds and Capital Gains Bonds. Under the capital market segment, your Bank offers products such as Application Supported by Blocked Amount (ASBA) and Syndicate ASBA (SASBA), supporting customers in participating seamlessly in primary market issuance. Further, the Bank was in the process of transitioning its Demat account business to IDBI

Capital Market Services (ICMS) as on March 31, 2026, which has since been completed, with a view to extending the reach of its Demat services through enhanced digital channels.

To keep pace with the rapidly evolving digital business practices, your Bank has undertaken multiple initiatives for digitalising the end-to-end third-party product distribution journey. These measures are aimed at improving customer convenience, strengthening process efficiency and reinforcing the Banks commitment to delivering a secure, transparent and technology-enabled investment experience.

STRATEGIC COLLABORATION WITH LIC

Following the acquisition of a majority stake in the Bank by Life Insurance Corporation of India (LIC) in January 2019, a strong foundation was laid to unlock and realise meaningful business synergies between the two institutions. Over the past seven years, several well-defined initiatives have been successfully implemented to harness these business synergies, contributing to enhanced value creation for both entities.

Your Bank has adopted a structured and strategic approach to deepen collaboration with LIC, with clearly defined action points aimed at leveraging revenue, cost synergies and financial synergies. These initiatives have been supported by the Banks best-in-class products and services, particularly through effective utilisation of its low-cost deposit base, including the current account portfolio.

As part of convenience banking offerings, the Bank has extended comprehensive transaction banking solutions to address both collection and payments-related requirements of various offices of the LIC. These services are delivered seamlessly though the Banks extensive branch network as well as digital channels, enabling efficient banking operations and improved service experience.

The sustained collaboration under the LIC synergy framework has contributed to the creation of combined value and strengthened operational performance for both the organisations. In addition, the Bank has been able to further augment its retail franchise and enhance fee-based income through deeper engagement and cross-selling opportunities arising from this strategic partnership.

FINANCIAL INCLUSION

The Financial Inclusion (FI) Department of the Bank continued to anchor the Banks mission of bringing affordable, accessible and technology-enabled financial services to underserved and unbanked populations across the country. Your Bank remained focussed on strengthening last-mile delivery by expanding the Business Correspondent (BC) network, deepening digital penetration and strengthening outreach under key Government of India initiatives such as Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY).

The Banks approach to financial inclusion remains holistic and balanced, encompassing the expansion of physical touchpoints, enhancement of digital infrastructure, capacity-building across channels and sustained customer awareness initiatives. These efforts were aligned with regulatory expectations as also closely integrated with the Banks broader strategic mandate to widen its customer base, improve service usage and strengthen its presence in rural and semi urban regions.

A key area of focus during the year was improving the quality of financial inclusion by encouraging meaningful engagement beyond account opening. Emphasis was placed on promoting active account usage, adoption of digital banking channels and participation in the formal financial ecosystem, thereby enhancing the long-term impact of inclusion initiatives.

Performance under Social Security Schemes

The Bank continued to actively support the Government of Indias flagship financial inclusion programme, viz. Pradhan Mantri Jan Dhan Yojana (PMJDY) and the Jan Suraksha suite of social security schemes, playing a significant role in extending financial protection and social security coverage to vulnerable sections of society.

Enrolments under social security schemes remained robust, with 8.30 lakh customers covered under PMJJBY, 20.73 lakh customers enrolled under Pradhan Mantri Suraksha Bima Yojana (PMSBY) and 8.95 lakh customers subscribed to Atal Pension Yojana (APY) as on March 31,2026, reinforcing insurance penetration and retirement savings among the unorganised sector.

During FY 2025-26, the Bank achieved notable milestones under these initiatives. A total of 1.83 lakh PMJDY Savings Bank Accounts were opened, providing basic banking access to first-time customers and low-income households. Enrolment under social security schemes remained robust, with 3.47 lakh customers covered under PMJJBY, 7.04 lakh enrolled under PMSBY and 2.23 lakh enrolled under APY, reinforcing insurance penetration and retirement savings among the unorganised sector.

The achievement of 100% of assigned PMJDY and Jan Suraksha targets during the year reflects the effectiveness of the Banks outreach strategy, the strong performance of the BC network and a sustained focus on customer empowerment through essential financial and social security solutions. This performance further underscores the confidence and trust reposed in the Bank by customers as well as Government agencies.

Strengthening Business Sourcing Through the Business Correspondent (BC) Network Expansion

Recognising the BC network as a cornerstone of financial inclusion framework, the Bank undertook focussed initiatives during the year to strengthen and scale this critical delivery channel. Branches across regions played a proactive role in identifying suitable BC partners, supporting their on-boarding and set-up and closely monitoring performance to ensure service quality and compliance.

The expanded BC architecture significantly enhanced the Banks outreach capabilities by extending coverage to high-potential yet previously underserved geographies. This expansion facilitated faster customer acquisition across basic banking and social security schemes, while enabling reliable delivery of services such as micro-ATMs, Aadhaar Enabled Payment System (AePS) transactions, and Direct Benefit Transfers (DBT). The strengthened BC network has also emerged as an effective sourcing channel for future cross-selling opportunities and credit linkage, supporting the Banks broader growth objectives.

The emphasis placed on improving both the capacity and quality of BC operations has translated into more consistent customer service standards, higher transaction reliability and deeper engagement with rural households. These efforts have reinforced the Banks role as a trusted financial partner at the grassroots level, while strengthening the sustainability and effectiveness of its financial inclusion initiatives.

Saturation Campaign Launched by Department of Financial Services

The Department of Financial Services (DFS), Government of India launched a nationwide campaign aimed at achieving saturation of its Financial Inclusion (FI) schemes at the Gram Panchayat level. The campaign was carried out over a four-month period from July 1, 2025 till October 31, 2025, during which a total of 4,480 camps were organised. The initiative focused on creating widespread awareness and improving access to key financial security and inclusion schemes. As a direct outcome of these efforts, the Bank recorded significant enrolments during the campaign period, with 80,422 enrolments under PMJJBY, 2,77,394 under PMSBY, 77,271 under APY and 49,362 under PMJDY.

Launch and Expansion of SAMEEP Outlets

A key highlight of the year was the rapid scaling-up of IDBI SAMEEP, the state-of-the-art modern extended e-banking outlets designed to enhance last-mile banking outreach. The IDBI SAMEEP outlets represent the next-generation, capital light outreach model, designed to effectively bridge the service gap between full-service branches and conventional BC points.

Operating as BC-managed outlets with a branch-like ambience, the SAMEEP outlets provide customers with access to essential banking services such as account opening, cash transactions, fund transfers, remittances and basic servicing requirements. This model enables the Bank to enhance brand visibility and customer trust in rural and semi urban markets, while ensuring quicker deployment compared to full-service branches and expanding reach at significantly lower operational cost.

During the year, the SAMEEP network expanded steadily and the Bank operated 69 SAMEEP outlets across the country as on March 31,2026. These outlets are increasingly emerging as trusted, community-level banking touchpoints, facilitating convenient access to banking services in remote underbanked areas. The SAMEEP model has strengthened the Banks last-mile delivery capabilities, supported deeper financial inclusion and enabled sustainable and scalable expansion of the Banks outreach.

Enhanced Reach through BC Network and Contribution to PSL

The Banks BC network continues to serve as a critical enabler of inclusive financial growth and last-mile delivery. During the year, the BCs played a pivotal role in advancing key financial inclusion initiatives by supporting PMJDY enrolments, facilitating Direct Benefit Transfer (DBT) transactions and delivering essential services such as Aadhaar Enabled Payment System (AePS) and micro-ATM services. In addition, the BC channel also contributed to customer mobilisation for social security schemes, thereby strengthening outreach across underserved segments.

Beyond transactional services, the BC footprint has also been increasing contributing to the Banks Priority Sector Lending (PSL) objectives. Through deeper engagement at the grassroots level, the BC network has enabled improved access to small and marginal farmers, extended support for micro entrepreneurs and rural enterprises and enhanced identification of creditworthy rural borrowers in rural and semi-urban markets. This has resulted in improved credit penetration and strengthened the Banks presence in priority geographies.

The strong alignment between BC-led outreach and PSL expansion underscore the Banks integrated approach to financial inclusion and sustained credit growth, reinforcing its commitment to fostering inclusive development while supporting balanced portfolio expansion.

Capacity Building and Skill Development of BCs

A structured capacity-building approach was adopted, supported by multiple training programmes, workshops and refresher sessions conducted across regions.

Recognising the central role played by the BCs in customer engagement and last mile service delivery, the Bank placed strong emphasis on enhancing their skills, efficiency and service quality. A structured capacity-building approach was adopted, supported by multiple training programmes, workshops and refresher sessions conducted across regions.

These programmes focussed on strengthening operational capabilities and compliance awareness, improving customer service and grievance redressal, building proficiency in the use of micro-ATM devices and Aadhaar Enabled Payment System (AePS). Special emphasis was also placed on social security schemes, including PMJDY, digital on-boarding processes and awareness relating to financial fraud prevention and cybersecurity. Specialised training programmes on money mules risks and cybersecurity laid a strong foundation, equipping BCs with the knowledge to safeguard transactions and protect customers. Your Bank also imparted on-the-job mentoring to guide BCs in navigating technology platforms and building their operational confidence. A blend of structured training and on-the-job mentoring enabled BCs to gain confidence with technology and strengthen their skills, creating a resilient network of BCs. At the last mile, customers benefitted from smoother, safer and more reliable service, reflecting the Banks steadfast commitment to security and customer centricity.

Financial Literacy and Customer Awareness Initiatives

Financial literacy has long been recognised as the cornerstone for meaningful financial inclusion. During the year, your Bank reached out to the communities by conducting financial literacy camps, doorstep awareness drives and local community meetings. This engagement became a platform where customers were educated on the benefits of savings and responsible borrowing, discovered the convenience of digital banking and safe transaction practices and explored Government-backed insurance and pension schemes. These sessions also placed emphasis on fraud prevention and digital etiquette, while encouraging customers to maintain active and updated bank accounts. These efforts empowered customers to make informed financial decisions, to ensure that they fully benefit from PMJDY and related schemes.

IDBI RSETI - Empowering Rural Youth through Skills and Livelihoods

The Banks Rural Self Employment Training Institute (IDBI RSETI) at Satara continued to make a meaningful impact as a centre of skill development for rural youth. Guided by the Ministry of Rural Development (MoRD) and aligned with the National Skill Qualification Framework (NSQF), the Institute delivered livelihood-oriented training to equip participants with practical skills for self-employment or wage employment.

Since its inception, the RSETI has trained 11,132 candidates, of whom, 8,273 candidates, constituting 73.67% of the total candidates were successfully settled into sustainable employment. The RSETIs consistent quality in training, infrastructure and monitoring has been recognised in the year 2025 with an AA grading from the Ministry of Rural Development (MoRD), Government of India, which is a testament to its excellence and outstanding performance.

By fostering entrepreneurship and employability, the RSETI continues to create sustainable livelihood opportunities for rural youth, advancing the national agenda of skill development and financial inclusion while transforming the aspirations of rural communities into reality.

DIGITAL BANKING

Your Banks digital journey is guided by a clear vision of delivering superior digital experience, driving sustainable growth and nurturing an innovation-first culture. At its core lies a commitment to building a secure, seamless and convenient banking platform where customer convenience and security remains paramount.

The pioneering initiatives undertaken by the Bank, which has been recognised and honoured at the industry level, have led to a surge in overall digital transaction by 16.21% and a growth of 19.10% in UPI transactions during the year. Customers experienced this transformation first-hand through the Banks Go Mobile+ application, which has revamped bill payments, a streamlined fixed deposit journey and the facility to manage multiple nominations. The continuous enhancements aided in providing an elevated user experience, resulting in an improvement in the user rating for its Go Mobile+ application to 4.6 on the Play Store, reflecting customer delight.

Your Bank also launched new premium segment debit card variants such as the VISA Infinite Debit Card and Mastercard Platinum, designed for elite customers seeking enhanced privileges. Further, your Bank also launched Braille Debit Card, an inclusion-focussed product with tactile markers, empowering visually impaired customers with independence and dignity.

On the digital currency front, your Bank upgraded the Central Bank Digital Currency (CBDC) platform from a fixed-denomination system to a value-based token model, aligning with the evolving ecosystem. The implementation of the Programmable CBDC (P-CBDC) opened up new possibilities for purpose-bound digital currency, enabling applications like Direct Benefit Transfer (DBT), subsidy disbursements, etc.

The spirit of collaboration was showcased at the Banks Fintech Fusion event, where diverse group of fintechs innovators were brought together to exchange ideas, capabilities and opportunities. These collaborative engagements strengthened partnership and reinforced the Banks role as a catalyst in the fintech ecosystem.

Furthering its digital-first approach, the Bank introduced i-MSME Express - an end-to-end digital lending product powered by automated validation processes. Alongside, a new customer engagement solution with website integration for enhanced accessibility and responsiveness, ensuring customer banking experience that is both intuitive and personalised.

Your Bank has consistently invested in resilient networks, IT infrastructure updates, advanced payments systems, data driven analytics, dashboards, intelligent automation and robust security solutions. These investments ensured that every digital interaction is not only efficient but also trustworthy.

CORPORATE BANKING

Within the corporate banking business, your Banks Large Corporate Group (LCG) and Mid Corporate Group (MCG) together form the backbone of its corporate lending and service portfolio, catering to enterprises across diverse sectors such as engineering, basic metals and steel, construction, paper and paper products, textiles, electronics and electrical equipment, infrastructure, energy, sugar, chemicals, automobiles, services sector, Non-Banking Financial Companies (NBFCs), among other sectors. Both groups provide comprehensive suite of fund-based and nonfund-based credit facilities, including project and non-project term loans, packing credit, post-shipment credit to exporters, receivables buyout, bill discounting, intra-day limits, among others. Working in close collaboration with other specialised business verticals such as Retail Banking, Transaction Banking, Treasury, among others, the Banks corporate banking group ensures that the distinct and complex needs of its corporate customers are met with tailored solutions.

During the year, the Banks LCG achieved a significant milestone with the rollout of Pro-Fin Application, which digitised the complete lifecycle of project loans, from design and construction to operations. This end-to-end workflow streamlined project finance while enabling seamless extraction of regulatory data and MIS, thereby strengthening compliance and operational agility.

Complementing this, the Mid Corporate Group (MCG) plays a pivotal role in supporting mid-sized enterprises with a wide spectrum of fund-based and non-fund-based credit facilities. Reflecting the Banks digital-first vision, the Bank introduced Document Management System for Corporate Verticals (iDMS4C). The centralised secure repository streamlines digital storage and retrieval of official records, reduces duplications, ensures version control and enhances transparency and operational efficiency.

The Bank continues to pursue calibrated growth in its corporate loan book, maintaining a capital-light portfolio and a balanced business mix. The focus remained on acquiring better-rated corporate accounts, enhancing utilisation of sanctioned credit facilities by existing clients and driving growth in interest and fee income through optimal utilisation of fund-based and non-fund-based limits. Additionally, the Bank also focussed on expanding its liabilities and services products reinforcing holistic support to its corporate customers.

The LCG and MCG together exemplify the Banks commitment to innovation, efficiency and sustained growth in corporate banking. By combining sectoral expertise with digital transformation initiatives, the Bank has been working towards enhancing its corporate portfolio and also redefining its corporate banking experience, making it more transparent, efficient and future-ready.

CORPORATE RELATIONSHIPS AND NEW BUSINESS ACQUISITION GROUP (CRBAG) & PROJECT APPRAISAL CELL (PAC)

Your Bank established the Corporate Relationships and New Business Acquisition Group (CRBAG), a specialised team designed to drive new business opportunities and to strengthen corporate relationships, thereby augmenting 360? approach towards business. With a focussed approach, the CRBAG actively engages with potential sources, namely, corporates, peer banks, rating agencies, financial institutions, investment banking community, Public Sector Undertakings (PSUs), thereby capitalising on emerging market opportunities. This initiative reflects the Banks commitment to expand its corporate footprints and to build long-term, value driven partnerships.

Complementing this efforts, the Bank has set up a dedicated Project Appraisal Cell (PAC) to evaluate and validate specific project term loan exposures within the corporate vertical. By rigorously vetting proposals and establishing viability, the PAC ensures that the Banks lending decisions are both prudent and sustainable, thereby reinforcing its focus on quality growth and management.

CREDIT MONITORING GROUP

Considering the critical importance of maintaining asset quality, the Banks Credit Monitoring Group (CMG) conducts structured Loan Review Mechanism (LRM), tracks early signs of stress in its corporate and retail loan portfolio and monitors Credit Administration Parameters (CAP).

Your Bank uses structured Loan Review Mechanism (LRM) to provide timely feedback on the effectiveness of credit sanction and undertakes regular follow-up to ensure compliance of policy guidelines, tracking of early warning signals and timely compliance of the CAP. All these initiatives have helped in identifying and managing the incipient stress of the accounts, compliance of the CAP and thereby, improving the credit quality of borrowers of your Bank.

Your Bank has operationalised the Early Warning Signal (EWS) application since December 2019 to support its credit monitoring function. The tool leverages data from internal and external sources to detect stress and incipient weakness and generates alerts on regular basis. All corporate and retail accounts are classified as High Risk, Medium Risk or Low Risk in the EWS application based on predefined threshold limit. This supports your Banks capability to identify high-risk accounts and accounts showing early signs of stress in pre-Special Mention Account (SMA) stage, thereby ensuring that timely and pre-emptive corrective actions are taken. In line with the continuously evolving regulatory requirement and best practices, your Bank undertakes periodic review of the EWS application to add new features and parameters.

The asset monitoring tool SAJAG forms an integral part of your Banks credit monitoring function as it ensures compliances of various credit administration parameters in order to improve and to strengthen credit culture. The tool also helps to identify incipient weaknesses in the loan portfolio and to prevent slippages. Your Bank upgrades the functionalities of the tool in accordance with the rapidly changing macroeconomic environment and regulatory guidelines.

RETAIL COLLECTIONS

Maintaining a healthy and profitable asset portfolio remains one of the Banks important strategic objectives. With a predominantly retail-centric loan book, characterised by narrow interest margins and intense competition, even minor slippages in asset quality may quickly erode the profitability. In such an environment, strict containment of delinquencies within the budgeted thresholds is imperative to safeguard financial stability.

A well-maintained asset portfolio is fundamental to the long-term sustainability of any financial institution and your Bank is committed to upholding the highest standards of asset quality. Recognising that slippages in asset performance have cascading effects on profitability, operational resilience and overall financial health, the Bank has adopted proactive measures to minimise Non-Performing Assets (NPAs), write-offs and provisions. Central to this effort is a strong and efficient collection mechanism that mitigates credit risks and ensures timely recovery.

To strengthen its collection strategy, the Bank has established a dedicated Retail Collection Department tasked with preventing slippages and ensuring timely recovery of dues from retail loan portfolio. This department plays a pivotal role in minimising the risk of accounts transitioning into Special Mention Accounts (SMAs) and Non-Performing Assets (NPAs). The collection efforts are focussed on SMAs and probable and marked First-Time Non-Performing Assets (FTNPA) to maintain a robust retail asset portfolio. By focussing on early and timely intervention, the Bank enhances recovery rates and reduces the financial burden of overdue loans.

The collection activities are driven by a structured network of Collection Officers across Zones and Regions, supported by call centres, collection agencies, Business Correspondents (BCs), Business Facilitators (BFs) and also branches or Retail Asset Centres (RACs) for branch-centric products. This integrated approach ensures higher resolution rate and strengthens the Banks retail asset portfolio.

In line with its digital transformation agenda, the Bank has implemented the Integrated Collection and Recovery Module (ICnRM) application. The application enables effective management of stressed accounts by optimising resource deployment, whether in-house or through external agencies. It provides a convenient platform for online collection and recovery of dues from delinquent borrowers, while delivering a seamless Management Information System (MIS) for monitoring and reporting collection activities. By digitising the collection mechanism, ICnRM enhances efficiency, transparency and responsiveness in managing retail credit risks.

RETAIL RECOVERY

In order to expedite recovery and improve upgrades from retail NPAs, the Bank intensified its efforts in taking timely recovery actions. These included enforcement of securities through fresh or repeated auctions under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act as well as sales through the Honble Courts and other legal fora, supported by wide publicity to attract potential buyers. During the year, your Bank conducted ten mega auctions of properties in its possession and continued rigorous follow-up to ensure upgradation of fresh NPAs.

As a part of its resolution strategy, the Bank launched a non-discretionary and non-discriminatory special One Time Settlement (OTS) Scheme for retail Non-Performing Assets (NPAs) and Technically Written Off (TWO) accounts with Gross Principal Outstanding (GPO) of Rs. 5 lakh and above and up to Rs. 5 crore viz. Sugam Rinn Bhugtan Yojana (SUGAM) - II Scheme, to facilitate settlement of old NPAs.

In addition, certain cases were resolved through normal OTS or Negotiated Settlement (NS) in line with the Banks NPA Management Policy.

To further accelerate its recovery process, a large number of small-ticket cases were referred to the National Lok Adalats, which offer a cost-effective and faster resolution mechanism. Recovery camps were organised at the top 20 branches with highest concentration of small-ticket loans to encourage borrowers to settle their cases through Lok Adalats.

The Bank also adopted a proactive outreach strategy to connect with the NPA borrowers. The call centre executives of the Bank engaged with the borrowers regularly to encourage account upgrade, closure or settlements through Lok Adalats. Complementing these efforts, the Bank leveraged digital communication by sending bulk SMSes and WhatsApp messages in regional languages twice a month to all borrowers concerned to improve its recover efforts.

ASSET QUALITY

Over the past decades, the Banks NPA Management Group (NMG) played a pivotal role in driving resolution of and recovery from stressed assets. Your Banks strategic approach has been instrumental in its turnaround, particularly during the challenging period when it was placed under the RBIs Prompt Corrective Action (PCA) framework in May 2017. Through sustained efforts, your Bank maximised recovery from NPA and Technically Written-Off (TWO) accounts during the last 10 years, enabling it to navigate successfully through challenging times. As a result, Gross Non-Performing Asset (GNPA) ratio of your Bank registered a marked improvement from 21.25% to 2.32% of its Gross Advances, declining steadily between March 31,2017 and March 31,2026.

The Banks journey of improving its asset quality coincided with the introduction of a number of new legislations and regulatory guidelines such as Insolvency & Bankruptcy Code (IBC) 2016, revamped guidelines on Wilful Default declaration, establishment of National Asset Reconstruction Company Limited (NARCL) for transfer and assignment of bad loans, etc. The Bank adapted swiftly to these changes, leveraging new frameworks to boost recoveries. At the same time, the Bank automated its process flow and reporting framework of information in areas such as One Time Settlement, Corporate Insolvency Resolution Process (CIRP) & liquidation under IBC, Wilful Default Declaration, strengthening monitoring and internal control.

Your Bank has consistently prioritised containment of fresh NPAs and maximising recovery from impaired assets. As at end-March 2026, 97.68% of your Banks Total Assets were Performing Assets, whereas 2.32% were NPAs. The Banks fresh slippages were at 0.63% of its standard advances in FY 2025-26. During the year, the Banks recovery from impaired assets and upgrade of NPAs to Performing Assets amounted to Rs.1,484 crore. Adequate provisions were made in conformity with the extant regulatory guidelines, resulting in a strong Provision Coverage Ratio (PCR) of 99.39% as on March 31,2026.

A centralised desk for handling Corporate Insolvency Resolution Process (CIRP) cases under the IBC, 2016 has further enhanced efficiency. By internalising learning from the field and disseminating these learnings across teams, the Bank successfully navigated complex CIRP cases. As of March 31,2026, a total of 230 cases with an aggregate Gross Principal Outstanding (GPO) of Rs.34,368 crore (including NPAs/ TWO assets) were undergoing CIRP within the ambit of IBC, 2016. Your Bank was able to resolve many cases under CIRP and recovered a sum of Rs.458.20 crore from these cases under IBC during FY 2025-26. Additional recoveries of Rs.14.61 crore were also achieved during the year through Personal Insolvency Resolution Proceedings (PIRP) and bankruptcy proceedings under the IBC from personal guarantors to corporate debtors.

To strengthen settlement mechanism, the Bank operates a digital ‘One Time Settlement (OTS) Management System which facilitates submission of an OTS application through its website and also enables end-to-end processing of an OTS proposal, including tracking of recovery. Your Bank continued to focus on recovery of dues through settlement in all categories of NPA and TWO accounts. Under the Sugam Rinn Bhugtan Yojna-II and normal OTS your Bank made a recovery of Rs.604.79 crore through One Time Settlement in FY 2025-26.

During the year, your Bank also transferred eight accounts (six TWO accounts and two NPA accounts) with the GPO amounting to Rs.1,507.50 crore for consideration of Rs.188.98 crore on a cash-cum-Security Receipts basis to the permitted entities including NARCL by way of transfer of stressed loan exposures.

Your Bank actively pursued legal action under the applicable laws including enforcement actions under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002. In this connection, the Bank tied-up with Bank Asset Auction Network (BAANKNET), formed under the aegis of the Department of Financial Services (DFS), Ministry of Finance, Government of India for auction of properties charged to the Bank. During FY 2025-26, the Bank auctioned 1,150 number of properties and made a recovery of Rs.75.37 crore through the BAANKNET platform. Your Bank signed MOU with one of its channel partners for obtaining insights about NPA Borrowers presence on various social media platforms and their activities reflecting hidden economic affluence in order to maximise recovery leveraging the information and the insights gathered. The Bank continued co-ordination with the Debt Recovery Tribunals (DRTs) and Courts on a continuous basis and identified nodal cross-functional team of officers from the Banks NMG, Legal and Retail Recovery departments for work relating to the DRTs so as to expedite obtaining recovery certificates or decrees and execution processes.

As on March 31, 2026, your Bank classified 373 cases as wilful defaulters or fraud with punitive actions initiated against such borrowers, promoters and directors. The Bank also made a recovery of Rs.53.02 crore during FY 2025-26 from the office of Official Liquidator (OL) by way of sale of securities and distribution of pending amounts.

TRADE FINANCE

Your Bank has a dedicated Trade Finance (TF) Department that delivers a comprehensive suite of products and services to support customers in both domestic and international trade. The offerings span from widely used products such as inward and outward remittances, Letters of Credit (LCs), Bank Guarantees (BGs), Standby Letters of Credit (SBLCs), to more complex solutions, covering domestic and cross-border trade products involving import and export of goods and services, pre-shipment and post-shipment export finance, short-term trade credits (buyers credit and suppliers credit), merchanting trade, capital account transactions, among others.

As an Authorised Dealer (AD) Category-I bank, your Bank operates through 38 dedicated Trade Finance Centres (TFCs) and 31 corporate branches, which are authorised to handle all types of foreign exchange transactions. These products and services are processed through Centralised Trade Processing Centres (CTPCs) located at three major metro centres, viz. Mumbai, Chennai and Delhi, functioning on a hub-and-spoke model. This structure ensures standardised processing, efficient communication and faster turnaround time across the Banks network.

Your Bank has been constantly improving its core banking platform and has been offering digitised trade processing to enhance customer engagement and to ensure seamless and convenient trade operation processes. Your Bank has undertaken various IT initiatives to make transaction executions faster, error-free and seamless. The IDBI GoTrade+, an internet-based trade finance solution, allows customers to transact on a 24x7 basis. The Bank has also adopted SWIFT GPI capabilities, enabling real-time tracking of cross-border payments, thereby enhancing customer experience. Your Bank has also partnered with SWIFT India and implemented Message Queue Host Adaptor (MQHA) for advanced queue management with encryption that strengthens existing security around the message flow for domestic transactions. The transitioned from SWIFT MT (Message Type) to the XML based structure complying with ISO 20022 Standards for all payment messages has further enhanced transparency, data capacity, potential for straight-through processing. All SWIFT operations of the Bank are managed through a Centralised SWIFT Cell (CSC) under stringent validation and security protocol. Further, your Bank has also laid down policies, processes, Standard Operating Procedures (SoPs), operating manuals, robust monitoring mechanisms, among other measures, in compliance with regulatory and statutory norms as well as international trade practice guidelines.

Your Bank has enabled online initiation of foreign outward remittances under the Liberalised Remittances Scheme (LRS) of the RBI via its retail internet banking portal, while foreign inward remittances up to a threshold are processed centrally for faster credit to its customers. To strengthen its service delivery, your Bank has an online Bank Guarantee (BG) Confirmation Module, which enables beneficiaries of the BGs issued by it to obtain online confirmation of issuance of guarantees.

Your Bank has instituted appropriate operational and compliance alerts enabled with round-the-clock fraud monitoring. Your Bank has instituted effective system control mechanisms in the form of Payment Controls System & Transaction Screening processes in its endeavour to mitigate cyber fraud risks and also to build effective control mechanism to address the issues of Anti-Money Laundering (AML) and Combating of Financing of Terrorism (CFT) in cross-border payments. In order to ensure additional control, your Bank has put in place several system validations to ensure compliance. Your Bank diligently follows Anti-Money Laundering (AML), Know Your Customer (KYC), Combating of Financing of Terrorism (CFT) guidelines, robust Trade-based Money Laundering (TBML) red-flagging procedures and the US/ EU sanctions screening for international payments. Your Bank, as a matter of principle, verifies international cargo movement in merchanting trade through the International Maritime Bureau (IMB). The Bank also verifies credentials, core activities and scale of business and payment velocity of overseas parties through Business Information Reports from reputed agencies to ensure creditability and protect stakeholders.

Your Banks bill finance policy covers purchase, discount and negotiation of genuine trade bills in both Indian Rupee (INR) and Foreign Currency (FCY). Your Bank has stipulated coverage of eligible export credit accounts under borrower specific individual cover, preferably from ECGC Ltd.

Strengthening its global reach, the Bank has built a robust correspondent banking network with around 561 banks worldwide through bilateral Relationship Management Application (RMA) and consequently it is able to render trade and non-trade services across the world. The Bank has Nostro arrangement for remitting funds in 11 currencies directly and facilitates remittances in 135 currencies across the globe through correspondent bank arrangement, enabling seamless trade and non-trade services across the globe.

GOVERNMENT BUSINESS

Your Bank serves as an agency bank to the Reserve Bank of India (RBI), authorised to handle receipt and payment transactions for both the Central and State Governments through its branches and 24x7 internet banking facility. In addition to collecting central government taxes, which includes all Income Taxes, Customs Duty and Goods & Services Tax, your Bank also has the mandate to collect receipts on behalf of 14 State Governments and two Union Territories.

In the state of Maharashtra, the Bank also collects stamp duty through electronic Secured Bank and Treasury Receipt (e-SBTR) and Simple Receipt. Your Bank is an accredited bank to the Department of Printing under the Ministry of Housing and Urban Affairs. Your Bank is authorised by the Government of India to offer Small Savings Schemes such as Public Provident Fund (PPF), Senior Citizens Savings Scheme (SCSS) and Sukanya Samriddhi Account Scheme (SSA). Additionally, the Bank is also authorised to disburse Central Civil, Defence and Railway Pension. Your Bank has enabled online collection of dues for Employees Provident Fund Organisation (EPFO) and Employees State Insurance Corporation (ESIC).

During the year, your Bank introduced Passbook Facility for account holders of Senior Citizens Savings Scheme, enhancing convenience for senior citizens. The Bank has also integrated for collection of taxes and land revenue under the digital initiative by State Government of Maharashtra, known as, e-Chavadi Scheme or Aapli Chavadi, which is a digitised platform designed to modernise village-level land records, specifically the 7/12 (Satbara) extracts and mutation records. This system allows citizens to access land records and pay agricultural land revenue (Shet-sara) and property taxes online, while the lenders benefit from easier verification of land documents for loans processing.

CASH MANAGEMENT SERVICES

Your Bank continues to strengthen its position in the Cash Management Services (CMS) space by delivering comprehensive, technology-driven solutions to corporates, institutions and government entities. The focus remains on empowering its clients to manage collections effectively, streamline bulk payments and optimise liquidity through secure, scalable and digitally integrated platforms.

During the year, the Bank further enhanced its CMS capabilities by upgrading the CMS platform with advanced technological features. The enhanced system offers superior transaction processing capabilities, robust security architecture, improved reconciliation features and superior reporting tools. These enhancements were aimed at delivering efficient and seamless cash management services to clients while ensuring operational reliability and scalability.

In line with the evolving corporate demands and market requirements, the Bank introduced innovative solutions such as Digital RERA and Escrow Solutions, providing compliant and technology-enabled project account management solutions for real estate developers in line with regulatory requirements. The Bank also integrated with Multi Commodity Exchange (MCX) for Suvidha e-FD, enabling efficient placement of margin money requirements by market participants through digital channels.

Through these initiatives, the Bank has reinforced its CMS franchise, leveraging technology to expand its product suite and deepen customer engagement. This strategic approach underscores the Banks commitment to delivering efficient, innovative and future-ready cash management solutions that caters to the dynamic needs of its customers.

TREASURY OPERATIONS

Your Bank has integrated its treasury operations across diverse market segments such as money market, fixed income, foreign exchange, derivatives and equities. Your Banks Treasury operations involve active role in balance sheet management, liquidity management, maintaining Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR), investments and trading in market instruments, forex transactions and derivatives.

Your Banks Treasury is also responsible for ensuring compliance to regulatory requirement such as CRR, SLR and other stipulated liquidity ratios. During the year, the Bank remained fully compliant with the stipulated regulatory requirement in maintaining CRR, SLR, Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR), underscoring its disciplined approach to liquidity management.

To actively manage liquidity on an on-going basis, the Banks Treasury deploys a range of instruments such as Liquidity Adjustment Facility (LAF), Marginal Standing Facility (MSF) and Standing Deposit Facility (SDF) of the RBI, alongside other market instruments or platforms such as Triparty Repo (TREPS), Clearcorp Repo Order Matching System (CROMS) and Call and Notice Money. The surplus liquidity is prudently invested in various short-term instruments like Certificates of Deposits, Liquid Money Market Mutual Funds and lending in Call, Notice, Term Money markets, Forex Depo placements, SDF, among others. Your Bank also mobilises funds through CD issuances and refinance arrangements, aligned with short to medium term liquidity requirements.

Your Banks Treasury remains an active participant in auctions of Government Securities (G-Sec), State Development Loans (SDL) and Treasury Bills (T-Bills), for its investment and trading purpose. Your Bank also actively participates in the RBIs measures by way of Open Market Operations (OMOs), Switch, Buyback and USD/ INR Swaps.

As a Primary Dealer (PD), your Bank fulfils all regulatory obligations including underwriting of Government of India dated securities (G-sec) in primary auction, meeting bidding commitment, maintaining turnover ratio for G-sec and adhering to success ratio for T-bill auctions. In addition, the Bank provides Constituent Subsidiary General Ledger (CSGL) service to Gilt Account Holders (GAHs). Further, your Bank also undertakes market making by providing buy and sell quotes to the retail investors on the Negotiated Dealing System- Order Matching (NDS-OM) platform (odd-lot and Request for Quotes segment) in order to provide liquidity in the secondary market for retail investors under the ‘RBI Retail Direct facility. Retail investors are further empowered through the IDBI Samriddhi platform, which is a web-based portal for seamless online trading of G-Sec.

On the foreign exchange front, your Banks Treasury operates active forex interbank and derivatives desks, offering competitive forex rates to the clients. The introduction of Two-Way Market Making/ Trading in Cross Currencies with domestic banks through automated trading system has aided in enhancing volumes, profitability and market presence of your Bank in forex business. The Banks Derivatives desk provides tailored interest rates and exchange rate hedging solutions, helping clients to manage their exposure effectively.

The Treasury sales team, strategically located across major centres, works closely with relationship managers to serve corporates of all sizes as well as retail clients. By proactively engaging with customers, the team offers solutions for effectively managing their exposures in currencies, rates and also advises them with investment solutions in debt instruments such as G-Sec and Non-SLR bonds. The Bank has established a centralised forex desk at its Head Office to streamline the rate covering process and to improve efficiency in the handling of forex transactions.

CROSS-BORDER BRANCH

Your Banks International Banking Unit (IBU) at the Gujarat International Finance Tec-City (GIFT City) commenced its operations on May 6, 2016. Functioning under the Kandla Special Economic Zone (SEZ) and regulated by the provisions and guidelines of the International Financial Services Centres Authority (IFSCA), the IBU has steadily expanded its role in supporting international banking activities. In addition to a broad suite of offering, the IBU focusses on funding solutions such as Standby Letter of Credit (SBLC), Foreign Currency Loan and External Commercial Borrowings (ECBs) for eligible retail and corporates customers. Your Banks GIFT City branch also offers deposit services such as savings account, current accounts and IBU term deposit and Trade Credits (Buyers Credit and Reimbursement Authorisation (RA) Financing).

CREDIT RATING

Your Bank obtains credit ratings for both its domestic and foreign currency borrowings. The rating action during FY 2025-26, along with the current ratings for Rupee resources as on March 31,2026 are as follows:

	Ratings for Rupee Borrowings
Rated Instruments	CRISIL	ICRA	India Rating	CARE
Rating action in	August 2025	September 2025	September 2025	September 2025
Fixed Deposit	CRISIL AA+/ Stable	[ICRA] AA/Stable	IND AA/ Stable
Short Term Borrowings (Certificate of Deposit)	CRISIL A1 +	[ICRA] A1 +	IND A1 +	CARE A1 +
Long Term Rupee Bond	CRISIL AA/ Stable	[ICRA] AA/ Stable	IND AA/ Stable
Tier II Bonds (Basel III)	CRISIL AA/Stable	[ICRA] AA/ Stable	IND AA/ Stable	Withdrawn

Note: The Medium Term Note (MTN) Bonds rated by foreign rating agencies, viz. S&P Global Ratings (S&P) and Fitch Ratings (Fitch), were fully repaid on November 30, 2020. Hence, the Bank had terminated the rating engagements or agreement with them on May 21, 2021, for various issues made under the MTN Bond Programme. Accordingly rating for Foreign Currency Borrowings stands withdrawn.

RISK MANAGEMENT

Your Banks risk management strategy is anchored on a fundamental tripod, viz. identification, measurement, and monitoring. While identification enables the Bank to further analyse and assess associated risks, measurement empowers the Bank to manage risks effectively. Together, these processes strengthen decision-making and instill confidence across operations. A well-defined policy framework outlining appropriate limits and processes enables the Bank to mitigate and manage risks within its overall risk appetite. Policies are periodically updated to reflect business dynamics, banking innovations, emerging risk scenarios and regulatory changes, thereby keeping the framework agile and responsive. Your Bank continues to foster a strong risk management culture by embedding risk awareness across all its verticals and making it integral to decision-making. While the Risk Management Committee (RMC) of the Board is responsible for overall risk management, the day-to-day activities are conducted at various levels based on the risk governance structure. The risk management systems and processes are continuously upgraded in alignment with the regulatory requirements and evolving best practices.

To build a more robust and technologically advanced risk management system, your Bank has implemented Integrated Risk Management Architecture (IRMA) comprising software solutions, viz. Credit Risk Assessment Module (ICON), Capital Assessment Model (CAM) and Comprehensive Operational Risk Evaluator (CORE). The IRMA helps to identify and measure credit and operational risks which in turn facilitates formulation of suitable risk management strategies. In addition, the Bank has established a comprehensive Financial Analytical Application to support Asset Liability Management (ALM), Fund Transfer Pricing (FTP), Profitability Management and Liquidity Risk Management. Together, these systems provide a holistic view of risks and financial performance, ensuring that the Bank remains resilient, compliant and well-prepared to navigate an evolving risk landscape.

Risk Management Processes

The Bank documents its risk review process through a comprehensive set of policies and established practices, ensuring transparency, accountability and consistency in evaluating and managing risks across all operations and portfolios. A well-defined policy framework integrates risk management processes at multiple levels. In line with the regulatory requirement, the Bank has rolled out a robust framework for assessing operational risk capital requirements as proposed by the RBI. This includes the deployment of a comprehensive set of Key Risk Indicators (KRIs) and Risk & Control Self-Assessment (RCSA) framework across different business segments, thereby strengthening risk culture and embedding effective control mechanism. For Market Risk, your Bank adopts the Standardised Measurement Method (SMM) to compute regulatory capital requirements, ensuring compliances with prescribed norms while maintaining a prudent and structured approach to risk evaluation.

Implementation of Basel Norms

In adherence to the Pillar 1 guidelines of the RBI under Basel III framework, your Bank computes regulatory capital requirement for credit, market and operational risks on a monthly basis. Banks in India are also mandated to maintain the Capital Conservation Buffer (CCB) of 2.50%. Your Bank also closely monitors the movement of Capital to Risk (Weighted) Assets Ratio (CRAR) at monthly periodicity. Your Banks Total Capital + CCB ratio was 26.65% as on March 31, 2026 against the regulatory requirement of 11.50%. Similarly, your Banks Common Equity Tier 1 (CET1) + CCB ratio was 25.56% as against the regulatory requirement of 8.00%. Your Banks Tier 1 + CCB ratio stood at 25.56% as on March 31,2026 as against the regulatory requirement of 9.50%. Your Banks Leverage Ratio as on March 31, 2026, was 10.51%, comfortably exceeding the minimum regulatory requirement of 3.50%.

Your Bank has a Board-approved policy on Internal Capital Adequacy Assessment Process (ICAAP) in line with the Pillar 2 norms of the Basel III framework. This policy enables your Bank to internally assess and quantify risks not adequately covered under Pillar 1, while developing appropriate strategies to manage and mitigate risks under normal and stressed conditions. Your Bank has also put in place a comprehensive stress testing framework in line with the RBI guidelines. Complementing the ICAAP, the Bank has instituted a comprehensive stress testing framework in line with the RBI guidelines. This framework evaluates performance under exceptional but plausible events or scenarios and facilitates in framing appropriate proactive strategies to meet unforeseen contingencies. The stress testing framework also includes scenario analysis, multifactor sensitivity analysis and reverse stress testing. Scenario analysis examines the impact of further increase in Gross NPAs, crystallisation of non-fund facilities in Non-Performing Assets (NPAs) and Technically Written-Off (TWO) accounts and impact of illiquid securities on capital and profitability of the Bank. The Bank uses the mechanism of reverse stress testing to ascertain the level of stress which may adversely impact its capital and profitability to take it to a pre-determined floor level.

Your Bank has adopted a Disclosure Policy in accordance with the Pillar 3 requirements under the Basel norms under which quarterly disclosures are hosted on its website, reinforcing transparency and accountability. Your Bank has also laid down a Reputational Risk Assessment and Management Policy to proactively identify risks to its reputation and the related consequences, along with the measures to contain them. Your Bank has also put in place Group Risk Assessment Policy to monitor and minimise the overall risk profile at the group level.

For computation of capital charge, your Bank follows the Standardised Approach under Credit Risk. Your Bank follows Basic Indicator Approach (BIA) to compute regulatory capital charge for Operational Risk. Your Bank is also in readiness to implement new standardised approach for assessment of operational risk capital requirement as proposed by the RBI, reflecting its preparedness to adapt to evolving regulatory frameworks.

Credit Risk

The Bank has established a comprehensive Credit Risk Management system designed to strengthen risk evaluation and ensure prudent lending practices. Central to this framework are advanced tools such as the Credit Risk Assessment Model (ICON), which facilitates internal credit rating of proposals and the Capital Assessment Model (CAM), which automates capital adequacy assessment. The Banks Credit Policy is reviewed periodically in line with changing business objectives and economic environment and forms the guiding tool for the business verticals. As per the Board-approved structure, the Credit Risk Management Committee (CRMC), inter alia, ensures implementation of

Credit Policy strategies and monitors credit risk on bank-wide basis. Your Bank uses ICON (Intelligent Credit Origination System) application for credit risk assessment of borrowers. The ICON application, built on cutting-edge technology, offers flexibility and efficiency, enabling smooth internal rating process and informed credit decision making.

In addition, your Bank has revamped its Model Risk Management Framework (MRMF) to manage Model Risk of the Bank. Developed in alignment with the Indian regulatory expectations and benchmarked against global regulatory practices, the MRMF provides a comprehensive structure covering the entire lifecycle of model management. This ensures that model risks are systematically identified, assessed and mitigated, thereby reinforcing the Banks commitment towards robust risk management.

Expected Credit Loss Framework

The Bank is in the final stages of implementing one of the most advanced applications for Expected Credit Loss (ECL) computation, which has been procured from a leading player in the industry. This solution will enable the Bank to compute ECL in accordance with the regulatory guidelines effective from April 1, 2027. The implementation aims to strengthen data processing capabilities, automate complex calculations and reduce reliance on manual, spreadsheet-based methodologies. Thus overall, the Bank is fully geared for the upcoming ECL guidelines, underscoring its preparedness and commitment to robust risk management standards.

Market Risk

The Market Risk Management in your Bank is anchored in well-defined policies, including the Market Risk & Derivatives Policy and the Investment Policy, which set out the overall risk appetite and governance framework. These policies provide clear guidance on the identification, measurement, monitoring and reporting of market risks, supported by established escalation mechanisms to ensure timely and effective response.

The effectiveness of this framework is further enhanced with the implementation of the Integrated Treasury Management System (ITMS), which enables closer oversight and real-time monitoring of risks across treasury activities. The risk limits and operating procedures are independently monitored by the Treasury Mid Office, which operates separately from both the dealing and settlement functions, ensuring strong internal controls and transparency.

Trading activities are conducted within approved limits and are regularly monitored at both the portfolio and individual dealer levels. Investments in Non-Statutory Liquidity Ratio (NSLR) bonds are evaluated using an internally developed rating-based framework, ensuring the creation of a well-diversified and prudent investment portfolio.

The Bank employs a range of indicators to monitor market risk, including exposure limits, interest rate sensitivity measures and intraday and overnight position controls. In addition, advanced risk measurement techniques such as Value at Risk (VaR) and periodic stress testing, are used to assess the potential impact of adverse market movements and to ensure that your Bank remains resilient under challenging market conditions.

Liquidity Management

The Bank has in place a well-established liquidity risk management structure as enumerated in the Board-approved Asset Liability Management (ALM) Policy. The Asset Liability Management Committee (ALCO) of the Bank monitors and manages liquidity and interest rate risk in alignment with the business strategy. The Bank continuously ensures efficient and effective liquidity management through proactive monitoring and prudent balance sheet management strategies. The Asset Liability Management (ALM) activities, including liquidity analysis and management, are carried out in close co-ordination amongst various Asset Liability Management Committee (ALCO) support groups in the functional areas such as Finance and Accounts, Treasury Front Office and Budget and Planning. The directives issued by the Asset Liability Management Committee (ALCO) and Asset Liability Management (ALM) Policy are implemented diligently by the respective business groups and verticals, ensuring consistency and discipline in liquidity management practices.

As per the regulatory guidelines, the Bank computes and monitors Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) on an ongoing basis. The average Liquidity Coverage Ratio (LCR) of the Bank remained at 122.25% for the quarter ended March 31, 2026 and Net Stable Funding Ratio (NSFR) as on March 31, 2026 was 118.58%.

Operational Risk

Your Bank has established a robust Operational Risk Management Framework (ORMF), which includes an organisational set-up comprising the Board of Directors, Risk Management Committee (RMC) of the Board, Operational Risk Management Committee (ORMC), Operational Risk Management (ORM) section in the Risk Management Department and nodal officers from various functions and departments. The operating procedures for operational risk are guided by the Board-approved Operational Risk Management Policy which aims at identifying, monitoring, measuring and managing operational risks associated with banking activities. Your Bank has put in place robust internal systems and procedures for mitigation of inherent risks

spread across various business activities and operations. The operational risks are managed through Key Risk Indicators (KRIs) and Risk Control Self-Assessment (RCSA) exercises, with outcomes periodically reported to the Operational Risk Management Committee (ORMC) and the Risk Management Committee (RMC) of the Board. Operational risk loss events are collated from across the Bank, analysed for root causes and presented to the Operational Risk Management Committee (ORMC), ensuring that corrective measures are embedded into processes.

To further strengthen resilience, your Bank conducts stress testing exercises on a quarterly basis to study the impact of stressed operational risk losses on its earnings and capital. These measures are complemented by measurement and reporting of any breach in the Board-approved Risk Appetite limits for operational risk. At present, the Bank has adopted the Basic Indicator Approach (BIA) for computation of Operational Risk Regulatory Capital and Risk Weighted Assets. At the same time, the Bank is fully prepared for transition to the Operational Risk Regulatory Capital Computation under Basel III Standardised approach as proposed by the RBI, which shall replace the existing BIA.

Your Bank also has a comprehensive governance framework for managing third party outsourcing risk. The Bank has established a Board-approved Policy for Third Party Risk Management and created a digital platform for identifying, assessing, measuring and monitoring risk associated with Third Party Vendors, to ensure that the outsourcing arrangements remain secure, transparent and aligned with regulatory expectations.

Business Continuity Management

Your Bank has a robust Business Continuity Management (BCM) process to safeguard operations against business disruptions and life-threatening events. The strength of this process is reflected in the Bank being awarded ISO 22301:2019 certification for its bank-wide coverage of Business Continuity Management. At its core, the Bank has put in place a well-defined Business Continuity Plan (BCP) for both core and support functions, ensuring uninterrupted services to customers even in the face of unforeseen disruption or disaster. Complementing this, a comprehensive Disaster Management Plan (DMP) has been deployed for its major establishments to protect human lives and minimise damage to critical assets during disaster. The resilience of the Business Continuity Plan (BCP) and Disaster Management Plan (DMP) is tested periodically through BCP testing exercises, disaster recovery including holistic drill and mock evacuation drills to ensure preparedness at all times. The Banks BCM system is further strengthened by the Integrated Disaster and Business Continuity Management System (i-DaB), an automated incident reporting tool that enables uninterrupted delivery of critical services. Further, the Bank has also developed a mobile-based application, viz. ion BCP, which enables disrupted branches to instantly invoke and execute the Business Continuity Plan (BCP) with ease.

Information Technology Risk

Your Bank has taken significant steps to strengthen its Information Technology (IT) risk management and control in order to ensure resilience against cyber threats and compliance with regulatory standards. Your Bank has set up a state-of-the-art Security Operation Centre (SOC) at its Data Centre (DC) at Navi Mumbai and at Disaster Recovery (DR) site in Chennai to ensure high availability of its security systems. The 24x7 SOC serves as the Central Command hub for countering cyber threats and ensuring compliance with the Banks Information Security Policy and Cyber Security Policy, besides upholding the Banks objective of providing safe and secure banking to its customers. Further, through the SOC, your Bank centrally monitors its security infrastructure, including firewalls, routers, Intrusion Detection System (IDS) devices/ Intrusion Prevention System (IPS) devices, Privileged Identity Management (PIM), antivirus and detects phishing and malware attempts, enabling timely corrective actions.

Your Bank regularly conducts Vulnerability Assessment & Penetration Testing (VAPT) of all internet facing applications, such as Finacle E-Banking Application (FEBA), mobile banking, mail messaging, etc. to proactively identify and remediate security weaknesses. Your Bank has successfully implemented the RBIs and other regulatory recommendations pertaining to information security, electronic banking, technology risk management and cyber frauds and the RBIs Cyber Security framework for banks. Your Bank has put in place an appropriate organisational framework, as recommended in the guidelines, which includes an exclusive Information Security Group (ISG) headed by the Chief Information Security Officer (CISO), reporting to the Chief Risk Officer (CRO) of the Bank. Complementing these structures are distinct polices, such as Information Security Policy (ISP), Cyber Security Policy (CSP) and Cyber Crisis Management Plan (CCMP), which articulate the managements intent and direction in addressing cyber security risks.

Your Bank regularly conducts and participates in various types of breach readiness exercises, table-top exercises and phishing simulation exercises to check and maintain the health of its information security setup. Information Security Awareness has been included as a mandatory session in the induction programme for new recruits of the Bank, while senior management have participated in specialised IT Risk Management programme at the Institute for Development & Research in Banking Technology (IDRBT). The awareness initiatives extend to the customers as well, with security precautions communicated through mailers, SMSes, ATMs and posters, to minimise and thwart the attempts of any security breach.

The Banks IT infrastructure and systems have been safeguarded by a robust information security framework, incorporating perimeter and end-point protection solutions. Your Banks Data Centre (DC), Disaster Recovery Centre (DR) as well as Near DR Centre (NDR) are certified under the latest ISO/ IEC 27001:2022 information security standards. The Banks Near DR site ensures zero data loss capability for critical transaction systems. The Information Security Steering Committee (ISSC) of the Bank provides directions and guidance for mitigating IT risk in the information systems and provides direction on the status of observations identified through Vulnerability Assessment and Penetration Testing (VAPT) and Application Security Testing (AppSec) process. The cyber security posture, various security incidents and the policies are placed before the IT Strategy Committee of the Board (ITSCB) for necessary directions. The policies are reviewed and recommended by the ITSCB to the Board for approval.

Recognising the criticality of its payment systems, the Banks payment infrastructure has been designated as Critical Information Infrastructure (CII) by the National Critical Information Infrastructure Protection Centre (NCIIPC) under Section 70A of the IT Act. Based on directions from MeitY, the Bank has constituted a dedicated Information Security Steering Committee for Protected Systems (ISSC-PS), which provides focussed oversight of the Banks designated Protected Systems, ensuring continuous monitoring, enhanced governance and strengthening of their cybersecurity posture. The ISSC-PS reviews risks, controls and resilience measures specific to these critical systems, ensuring that the Banks security framework remains robust, compliant and aligned with regulatory expectations.

To address low-probability but high-impact cyber risks, your Bank has obtained a comprehensive Cyber Risk Insurance policy, offering protection against potential financial losses arising from cyber-attacks, including those linked to residual risks that may persist despite robust security controls. The Bank has also deployed advanced security solutions such as Privileged Identity Access Management, Next-Generation- Firewall Solution, Antivirus, Patch Management Solution, Active Directory, Web and Mail Gateways, Data Leakage Prevention (DLP) solution, Anti-Advanced Persistent Threat (APT), Network Access Control (NAC), Web Application Firewall (WAF), Extended Detection & Response (XDR), User Entity & Behaviour Analysis (UEBA), Identity & Access Management (IDAM), among others to protect customer data, prevent external attacks as well as strengthen internal controls. Your Bank has further strengthened its infrastructure posture by enhancing cloud security controls and adopting Zero Trust Network Access (ZTNA) for secure remote connectivity across critical functions.

These efforts have been recognised externally, underscoring the Banks leadership in building a resilient, technology-driven security ecosystem.

Fraud Risk Management

Your Bank has instituted a robust and integrated framework for fraud risk oversight through the establishment of the Fraud Risk Management Group (FRMG), which serves as the overarching structure encompassing critical functions of fraud monitoring, fraud examination, regulatory reporting and the Enterprise-wide Fraud Risk Management Solution (EFRMS). This centralised framework ensures a cohesive and proactive approach to identifying, managing and mitigating fraud risks across the Bank.

The Fraud Monitoring and Examination team functions as a nodal authority for the assessment, classification and reporting of frauds in accordance with regulatory prescriptions and the Banks internal policies. In addition to ensuring timely and accurate reporting, the team oversees the implementation of corrective and preventive measures to avoid recurrence of similar events. To reinforce internal controls and ensure regulatory compliance, the Bank regularly issues internal advisories and circulars aimed at strengthening control mechanisms, instituting targeted remedial actions and enabling prompt and accurate reporting of frauds to the RBI.

The Board-approved Fraud Risk Management (FRM) Policy forms the cornerstone of the Banks fraud governance framework. It lays down comprehensive guidelines covering the monitoring, detection, prevention, reporting and systematic follow-up of fraud incidents.

During the year, the Bank further enhanced its governance and reporting capabilities through implementation of the bank-level Central Payments Fraud Information Registry (CPFIR). This system enables timely and streamlined regulatory reporting of attempted, suspected, disputed and actual fraudulent transactions, thereby strengthening the Banks overall fraud risk management architecture.

The Enterprise-wise Fraud Risk Management System (EFRMS) team plays a pivotal role in safeguarding the Banks digital ecosystem and protecting its customers from emerging threats through risk-based monitoring of suspicious transactions across diverse digital banking platforms and applications. Leveraging advanced detection rules and predictive analytical models, the system provides round-the-clock monitoring, enabling proactive identification and mitigation of emerging risks. During FY 2025-26, the Bank further strengthened its defences by progressively deploying new detection rules aligned with evolving digital payment fraud patterns. Furthermore, the Bank continues to educate its customers through awareness campaigns by disseminating timely information on new fraud patterns and preventive measures through targeted email communications and awareness posts on social media and other communication channels. These combined initiatives empower customers to transact with greater confidence, fostering a safer and more secure digital payments environment.

Offsite Monitoring System

Your Bank has Offsite Monitoring System (OMS) tool to detect errors and omissions arising out of day-to-day operations in Finacle and generate alert for monitoring and undertaking necessary corrective action. The OMS rules identify exceptions that may expose the Bank to regulatory, financial and operational risks. Existing rules and turnaround time for closure of OMS alerts are recalibrated on an annual basis in line with changing guidelines.

Climate Risk Management

The Bank continues to embed climate risk considerations into its broader risk management architecture by systematically evaluating how climate related factors could affect its portfolio. This approach involves identifying potential exposures across key sectors, analysing their vulnerability to climate-driven impacts and maintaining ongoing oversight of the portfolio.

During the year, the Bank strengthened its understanding of climate-related risks by building on the groundwork laid in the previous cycle. Last years assessment of financed emissions for a selected portion of the fund-based industrial portfolio, undertaken in accordance with the Partnership for Carbon Accounting Financials (PCAF) methodology, provided valuable insights into the carbon intensity and transition-linked vulnerabilities. Building on these learnings, the Bank is progressing toward a more comprehensive evaluation of climate risk across its broader lending portfolio. As part of this effort, the Bank is exploring the computation of financed emissions for the entire portfolio, initiating climate-related stress tests for select segments and analysing both physical and transition risks within the corporate portfolio. These initiatives are currently under active discussion, with scope and methodology are being refined to ensure alignment with best practices.

Looking ahead, the Bank intends to deepen the integration of ESG considerations within its Integrated Risk Management Framework (RMF) through active collaboration with internal stakeholders. This enhanced framework will enable more structured identification and management of ESG risks, supporting improved resilience and transparency. Aligned with its sustainability commitments, the Banks Credit Policy outlines restrictions on financing activities linked to environmentally harmful practices, including industries involving ozone depleting substances. Complementing these efforts, the Bank has put in place a Board-approved Green Deposit Policy and a dedicated financing framework to promote financial flow to environmentally sustainable sectors.

Your Bank continues to extend funding support to renewable and clean energy segments such as solar and wind power projects, residential solar installations and electric mobility. Environmental considerations are incorporated into the Banks internal rating models, ensuring that climate-related risks form an integral part of borrower credit assessments. Furthermore, the Banks ICAAP Policy recognises climate risk as an important area requiring continuous evaluation, underscoring the Banks commitment to sustainability and resilience.

Emerging Risk

The Bank continues to identify and monitor a broad spectrum of emerging risks that may influence its operations, financial performance and long-term strategic objectives. Among the most pressing challenges are climate-related risks, rising cybersecurity threats, shifting geopolitical dynamics, among others, that are likely to shape the operating environment. By adopting a forward looking approach, the Bank ensures that these risks are understood, anticipated and managed comprehensively.

Climate risks remain a key area of focus due to their potential impact on sectors financed by the Bank as well as on its own operational footprint. Growing expectations from global regulators and stakeholders to evaluate ESG-related exposures further elevate the importance of this risk class. The Banks concerted efforts toward strengthening climate risk assessment, promoting responsible financing and pursuing environmentally sustainable practices, support its broader aim of long-term resilience.

With the rapid expansion of digital ecosystems and increasing adoption of Artificial Intelligence, cybersecurity has emerged as another critical risk. The Bank maintains a proactive stance by enhancing its cyber defence capabilities, improving resilience across channels and adopting robust controls to safeguard customer information. Regular upgrades to security systems enables the Bank to navigate an environment characterised by heightened uncertainty and technological complexity.

Geopolitical risks, ranging from global tensions and trade realignments to supply chain disruptions, are closely monitored for their potential influence on market stability and cross-border financial flows. The Bank regularly monitors geopolitical developments and access their implications for its business operations, counterparties and investment decisions. Through prudent portfolio management and scenario-based planning, the Bank aims to minimise adverse impacts and preserve operational stability.

In addition to these key themes, the Bank remains vigilant to other emerging risks such as evolving regulatory expectations, macro-economic volatility and fast-paced technological innovations. By maintaining agility and collaborating with regulators, industry bodies and expert groups, the Bank ensures continuous alignment with best practices and upcoming requirements.

Through ongoing monitoring, proactive mitigation and sustained stakeholder engagement, the Bank strives to strengthen its resilience, protect customer confidence and support sustainable growth amid an evolving risk landscape.

Data Protection and Privacy Policy

The Digital Personal Data Protection Act, 2023 (DPDPA 2023), enacted by the Parliament of India, represents a landmark step in regulating the processing of digital personal data. The Act seeks to balance an individuals right to privacy with the legitimate need to process personal data for lawful purposes, along with matters connected or incidental thereto. The final Rules came into effect on November 13, 2025, prescribing multiple compliance timelines, with full implementation scheduled for May 13, 2027.

In accordance with the provisions of the Digital Personal Data Protection Act, 2023 (DPDPA) and considering the Banks probable classification as a Significant Data Fiduciary (SDF), the Bank has institutionalised its data protection governance framework. As a part of its compliance roadmap, the Bank has undertaken a series of strategic and operational initiatives. The Bank has established a dedicated Data Protection Office with effect from April 15, 2025. The Office, led by a designated Data Protection Officer (DPO) and a supporting team, ensures clear accountability, oversight and operational capability for compliance with the Act.

A comprehensive DPDPA Gap Assessment was conducted to evaluate the Banks existing compliance posture against statutory requirements, forming the basis for a structured remediation plan. Based on the findings, the Bank formulated a Digital Personal Data Protection Policy, aligned with DPDPA principles and applicable regulatory expectations. Further, to address the gaps identified during the assessment phase, the Bank has empanelled a specialised consultant to support remediation and implementation of a comprehensive data privacy framework, covering governance, processes and technology controls.

To embed a culture of data protection across the organisation, the Bank conducted awareness and sensitisation programmes covering all levels, ranging from junior officers to senior management and Board-level executives. In addition,

Privacy Champions have been identified across key business and support units and training has been provided to them through the Data Security Council of India (DSCI) Certified Data Protection Officer (DCDPO) certification programme, thus, ensuring and strengthening decentralised ownership of privacy obligations.

The Bank, in close coordination with its Legal Department, has strengthened contractual controls by requiring all vendors and service providers processing personal data on behalf of the Bank to incorporate a Data Protection Addendum in their agreements. Additionally, all Request for Proposal (RFP) and Limited Request for Proposal (LRFP) documents have been updated to include robust data protection and privacy clauses, thereby ensuring that third-party engagements are aligned with the Banks obligations under the DPDPA.

On the technology front, the Bank has leveraged existing applications to complete data discovery for critical applications, providing visibility into personal data elements, data flows and processing activities. This exercise forms the foundational layer for data cataloguing and classification, which will support further compliance activities such as risk assessment, consent management and data lifecycle governance.

To further enhance its capabilities, the Bank has floated an RFP for a Privacy Automation Solution to institutionalise compliance, enable monitoring and support scalability of privacy operations. Also, recognising the growing use of personal data in Artificial Intelligence (AI) and advanced analytics, the Bank has also initiated the development of a dedicated AI Policy, with the assistance of a reputed consultant. This initiative focuses on responsible AI usage, data protection, and regulatory compliance, ensuring that emerging technologies are harnessed ethically and securely.

Human Capital: Empowering Employees & Strengthening a Future Ready Workforce

Your Bank firmly believes that its employees are the foundation of long term, sustainable growth. As a trust-based institution, the Bank recognises that its ability to deliver consistent performance, meet stakeholder expectations and navigate a rapidly evolving financial landscape is directly linked to the capability, integrity and engagement of its workforce.

During FY 2025-26, the Bank continued to align its people strategy with business priorities, statutory developments and ongoing digital transformation, ensuring that the workforce remains resilient, customer-centric and future-ready. Enhancing employee experience, building capability and promoting a culture of ethical, responsible conduct remained at the core of the Banks human capital agenda as enumerated below.

Future Ready Talent Acquisition

Your Bank continued to strengthen its talent pipeline by attracting individuals with relevant skills and growth potential. Recruitment efforts were focussed on business expansion needs, technological transformation and critical functional requirements.

During the year, the Bank recruited individuals across various grades as follows:

Grade	Total
ED (Executive Director)	-
Grade F (Chief General Manager)	1
Grade E (General Manager)	2
Grade D (Deputy General Manager)	-
Grade C (Assistant General Manager)	18
Grade B (Manager)	58
Grade A (Assistant Manager)@	303
Grade O (Junior Assistant Manager)@	1,788
Executive - Sales and Operations	621
Clerical#	1
Total	2,792

Note:

@ - Excludes Executives appointed as Assistant Managers and Junior Assistant Managers

As on March 31,2026, your Bank had total staff strength of 20,693:

Class	Total*
Officers	18,551
Executives	1,572
Clerical	281
Subordinate	289
Total	20,693

Note: The count includes employees on contract

Talent Management

Your Bank continued to place strong emphasis on talent management as a critical enabler of its growth and transformation objectives. Recognising the importance of a skilled and motivated workforce in a dynamic banking environment, your Bank focussed on systematic talent acquisition, structured succession planning and continuous capability building across roles and functions. Your Bank remains committed to building a future-ready, agile and value-driven workforce aligned with its long-term strategic objectives. Your Bank has deployed the following strategic interventions to ensure all-round development of its employees:

a) Optimising Workforce Efficiency: Your Bank

has adopted a structured approach to manpower deployment to ensure optimal utilisation of human resources across business, operational and support functions. Deployment decisions are aligned with business priorities, branch requirement and skill availability, enabling enhanced productivity and service delivery. Periodic job rotation, redeployment of manpower and placement of employees based on competencies have strengthened operational efficiency while providing employees with diverse exposure and developmental opportunities.

b) Performance Management - Driving Excellence and Growth:

The Banks Performance Management System (PMS), that is, i-PACE is designed to foster a culture of accountability, excellence and continuous improvement. The system aligns individual performance goals with the Banks strategic objectives and business plans. Objective goal setting, periodic performance reviews and transparent appraisal mechanisms ensure fair assessment and recognition of performance. Performance outcomes are linked to rewards, career progression and development interventions, thereby motivating employees to deliver sustained high performance and contribute effectively to organisational success.

c) Professional Growth - Enabling Career

Advancement: The Bank has continued to focus on enabling professional growth through structured career development and continuous learning initiatives. Employees are encouraged to enhance their functional, managerial and leadership competencies through learning courses, certifications, workshops and other learning opportunities. Opportunities in varied aspect of banking namely, retail, corporate, trade finance, treasury, government business, sales, operations and support functions provides ample scope to have a rounded professional growth.

d) Succession Planning: Succession planning remains a key element of the Banks talent management framework, aimed at ensuring leadership continuity and sustained organisational stability. Critical positions at Executive Director and Chief General Manager levels have been identified and a pipeline of high-potential employees has been identified to ensure business steadiness. An annual review of succession plans ensures readiness to meet future leadership requirements and mitigates risks arising from vacancies in key roles.

Holistic Well-being

Your Bank has adopted a comprehensive and integrated approach to employee well-being, premised on the belief that sustained organisational success is driven by employees who are healthy, engaged and supported across all stages of their professional and personal lives. The Banks well-being framework is designed to create a positive employee experience that enhances productivity, sharpens focus and fosters a sense of belonging and fulfilment at work.

a. Health and Well-being: Your Bank provides a wide range of healthcare benefits aimed at safeguarding the physical and mental well-being of its employees and their dependents. These include in-house medical reimbursement policy, medical insurance covering hospitalisation, reimbursement of domiciliary treatment expenses, periodic comprehensive health check-ups and access to the Bank Medical Officers at major centres. Recognising the importance of emotional and psychological wellness, the Bank offers an Employee Well-being and Assistance Programme, viz. iCare, through which employees and their dependents can confidentially access professional counselling support. To promote a healthy lifestyle and encourage social bonding, the Bank organises annual sports and cultural events at its Head Office in Mumbai and the zonal levels and has also introduced a scheme for one-time reimbursement of registration fees for participation in major marathons.

b. Employee Recognition and Engagement: Your Bank recognises the value of long-term commitment and dedicated service rendered by its employees. As part of its employee engagement and recognition initiatives, the Bank has introduced the grant of milestone service year mementos to employees on completion of milestone years of service such as 15 years, 25 years and 30 years.

c. Housing and Personal Finance Support: Your Bank extends loans and advances at concessional rates of interest with flexible repayment terms to employees. These facilities enable employees to fulfil aspirations such as owning a home, purchasing a vehicle, and their childrens higher education.

d. Scholarship for Wards of Employees: Your Bank remains committed to supporting the educational aspirations of employees families. Under the i-Shiksha Scheme, meritorious wards of employees are recognised and rewarded for outstanding academic performance in Class X and XII Board examinations. Your Bank also granted the Dr. B. R. Ambedkar Scholarship to the children of workmen employees and officers in Grades A and B belonging to the Scheduled Castes (SCs) and Scheduled Tribes (STs), reinforcing its commitment to inclusive growth and social empowerment.

e. Compassionate Schemes: In order to provide timely support to families of employees who pass away while in service, the Bank has instituted compassionate schemes aimed at mitigating financial hardship. These include compassionate appointment to eligible dependents or payment of ex-gratia amounts, along with other forms of financial assistance. Additionally, life insurance cover is provided to all employees and outstanding staff loans are protected under insurance schemes, ensuring financial stability for bereaved families.

f. Legal and Financial Assistance: Your Bank has also put in place a comprehensive scheme for extending financial and legal assistance to its Directors, Officers, and Employees, helping them address professional exigencies with confidence. Complementing this, the Bank has a Directors and Officers Liability Insurance Policy, strengthening risk mitigation and institutional governance.

Diversity and Inclusion

Your Bank has continued its efforts in promoting diversity and inclusion in the workforce. Your Bank has implemented inclusive hiring practices, promoting equal opportunity across all levels of the organisation. Your Bank continues to recruit persons with disabilities and applicable guidelines on reservation are followed. As on March 31, 2026, the representation of Scheduled Castes (SCs)/ Scheduled Tribes (STs)/ Other Backward Classes (OBCs)/ Economically Weaker Sections (EWSs) in the Banks total manpower was as follows:

CLASS	SC	ST	OBC	EWS
Officers	2,701	1,106	4,968	570
Executives	253	70	540	235
Clerical	40	18	35	-
Subordinate	76	20	61	-
Total	3,070	1,214	5,604	805

Industrial Relations

The industrial relations climate in your Bank has generally been cordial, during the year, with most of the issues having been resolved amicably. The Bank has been holding meetings with the Associations and Unions in its endeavour to have constructive dialogue for understanding and addressing grievances of officers or employees. The Associations and Unions have also been responsive and proactive while addressing various issues.

Prevention of Sexual Harassment at Workplace (POSH)

With the aim of providing quick assistance and the much desired immediate support to the aggrieved women on account of occurrence of an untoward incident, an e-mail based grievance mechanism has been put in place by the Bank to enable them to lodge complaints of sexual harassment faced by them at the Banks workplace, directly to the members of Internal Committees at its Head Office in Mumbai and at all its Zonal Offices.

Disclosures under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

With the objective of creating a safe and friendly work environment and ensuring prevention of sexual harassment at workplace, the Bank, in line with the requirements of The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, has set up Eighteen Internal Committees (16 at Zonal Level and two at its Head Office in Mumbai) to redress the complaints received regarding sexual harassment of women at workplace. During FY 2025-26, the Bank received 14 (fourteen) complaints which were attended by the respective Internal Committees. As on March 31, 2026, five complaints were under process.

Ethics and Compliance

Your Bank has instituted the roles of Chief Ethics Officer and Zonal Ethics Officers to promote and reinforce a culture of ethical conduct and regulatory compliance across the organisation.

LEARNING AND EMPLOYEE ENGAGEMENT (L&ED)

IDBI Learning Ecosystem: Invest in learning and make a difference

Learning and Employee Engagement plays a pivotal role in developing a capable and confident workforce, which is crucial for achieving excellence in both business performance and compliance. Your Bank remains dedicated to ensure that every employee participates in relevant learning initiatives, carefully aligned with the Banks vision of fostering employee growth and empowerment. These programmes are tailored to address the specific learning needs identified by zones, verticals and individuals, thereby supporting a strategic approach to skill development.

The year in learning focussed on developing and sustaining a culture of learning across workplaces, strengthening compliance, control and ethics as daily discipline and digitalisation of learning by leveraging technology and AI.

Learning - Aiming for Growth and Excellence

Your Bank considers learning not merely as a mandatory activity, but as a strategic enabler to identify and bridge knowledge and skill gaps through tailored programmes and workshops. The approach focuses on individual learning requirements, addressing them through a balanced blend of online and offline initiatives. The employee participation in learning programmes during the year is as follows:

Out of total 20,693 employees, 20,433 have attended either online or offline learning programmes.

Man-Days Targeted and Achieved Across

Employee Categories

As per the Learning & Employee Engagement (L&ED) policy, a minimum number of man-days has been defined for the development of employees across various categories. Your Bank has not only met but exceeded these targets (116%), refecting a strong commitment to continuous learning and capability building.

Designing the Mapping of Various Learning

Programmes

A structured approach has been followed to design and align learning programmes with the specific roles, responsibilities and development requirements of employees. This alignment ensures consistency with organisational objectives as well as individual career growth. The programmes are classified into functional, behavioural, regulatory and leadership competencies, facilitating focussed learning interventions for each category of employees:

Behavioural Programs

a. Aarohan: WeRise IDBI: Your Banks flagship behavioural science programme Aarohan, remained a critical enabler of cultural transformation. This years programme ‘Aarohan: WeRise IDBIhas been designed for employees up to Grade E and is centered on the theme "When we rise in our personal and professional life, our Bank rises with us". The sessions covered the following key areas:

Programmes Conducted	Participants Covered	% Participants Covered
675	16,030	97.01%

b. Aarohan-cum-LEAD (Leadership Excellence and Development Program): The LEAD programme was conducted for the General Managers in collaboration with Indian Institute of Management, Lucknow. The program aimed at strengthening high impact communication with emotional intelligence, managing stakeholders with self-awareness and enhancing peoples management skills to drive superior business and service outcomes. A total of 214 General Managers (91%) participated in the programme held at Mumbai and Hyderabad.

c. Management Development Program: Your Bank conducted customised Management Development Programs for Executive Directors and Chief General Managers in collaboration with IIM Bangalore and IIM Lucknow respectively. The programme focussed on strengthening leadership, strategic thinking, decision making, governance, technology awareness and future readiness.

d. Aarohan-cum-Wellness Program for Workmen

Staff: The Bank extended the Aarohan programme to the workmen employees as a behaviour and wellness initiative. This boosted their confidence and motivated them to support Bank in its growth trajectory. A total number of 24 programmes were conducted, covering 468 employees.

e. Unnati: Rising to Success: The Unnati programme is being conducted by your Bank to support the empowerment and development of women officers. During the year, a total number of 32 programmes were conducted, covering 535 women employees.

f. Soft Skills Customised Sessions: Exclusive sessions have been integrated into the programmes to facilitate experiential and situational learning, customised to specific requirements. These sessions aims to deepen understanding and enhance practical application of key concepts through real-world scenarios.

Capacity Building

a. Role-Based Workshops: Your Bank conducted role-based workshops for various positions in the branches, including Branch Heads, Asset Officers, Service and Operation Managers, Relationship Managers, Customer Service Executives and Teller Service Executives. These workshops comprehensively covered functional aspects while emphasising compliance, control and ethical practices, thereby empowering employees in their day-to-day roles. The aim is to bridge knowledge and skill gaps and build confidence among employees.

b. Advanced Role-Based Workshops: Your Bank has initiated the Advanced Role-Based Workshop for officers who completed the basic role-based workshops in the previous cycle, to deepen job-specific expertise and equip employees to manage complex situations with greater proficiency and assurance. Coverage status for Role-based and Advanced Role-based Workshops is as follows:

c. Online Capsule Programmes: Your Bank has taken steps to support employees in specialised domains through Online Capsule Programmes. These programmes are conducted after business hours via Teams meeting, enabling ‘Learning at Employee Desk. The emphasis is on covering the entire branch team rather than only individual participants, thereby ensuring wider and more effective branch-level participation. The Online Capsule Programmes conducted this year are as follows, (i) Daily Discipline: Compliance, Control & Ethics (CCE), (ii) MSME Gyanshala and Agri Gyanshala, (iii) Trade Finance - A Simplified Guide, (iv) KYC Excellence Drive, (v) Treasury Programme for Relationship Managers, (vi) Retail Recovery Made Simple and (vii) Essentials of Negotiable Instrument Act.

The status of these programmes are as follows:

Treasury Programme for Relationship Managers (RM), Retail Recovery Made Simple and Essentials of Negotiable Instrument Act have been introduced in FY 2025-26.

d. Mentorship to Branches: Your Banks L&ED team provides mentoring to unlock the potential of the identified branches, guide & inspire them to perform, to grow and to excel. Structured, data-driven mentorship was provided by IDBI Learning Centre facilitators to 195 branches on the topics, namely, Low Audit Rating Branches, Low Performing Branches and Loss Making Branches.

e. Location Convenience Programme (LCP): Your Bank has worked on a new approach of Location Convenience Programme (LCP). These programmes are conducted in the evenings at branch locations for clusters of nearby branches. Faculty members visit these locations and provide hands-on support to address common concerns. This approach facilitates practical solutions to branch-level challenges. A total of 16 LCPs were conducted across zones during the period. The following topics were covered under LCPs, namely, (i) Low growth MSME/ Agri/ CASA, (ii) Low fee-based income, (iii) Higher compliance pendency, and (iv) Low account opening through branch channel.

f. Vertical Programmes: Based on the specific learning requirements of various Verticals, both in-house and external training programmes have been organised.

For specialised skill development, officers have been nominated for external programmes and collaborative sessions have been conducted with the support of external experts. These initiatives have particularly focussed on key functional areas such as Treasury, Credit, Trade Finance, Audit, Compliance, Vigilance, Operations, IT and other critical domains.

Customised Programmes: Major programmes

customised for the vertical are as follows:

• Sensitisation programme on Provisions of the Prevention of Corruption Act, 1988 for Executive Directors and CGM & Branch Heads of Large Corporate Group and Mid Corporate Group

• Programme on New Labour Code and its impact

• Programme on Loan Documentation and Business prospective for Corporate Banking

• DSCI Certified Data Protection Officer (DCDPO) Programme

• Training Programme on Project Management

• Programme on NPA Recovery

• Programme on the Occupational Safety & Health Administration (OSHA) Policy for Security Officers of the Bank

• Training for Chief Liaison Officers of the Bank

• Capacity Building and Training programme for Vigilance Officers

External Programmes: 932 Officers from various Verticals were nominated in 107 programmes conducted by specialised institutes, viz. Administrative Staff College of India (ASCI), State Bank Institute of Rural Development (SBIRD), College of Agricultural Banking (CAB), Centre for Advanced Financial Research and Learning (CAFRAL), CRISIL Ltd., Foreign Exchange Dealers Association of India (FEDAI), Federation of Indian Chambers of Commerce & Industry (FICCI), etc.

g. First-Time Branch Head: The programme equipped new leaders with operational, managerial and peoplehandling capabilities essential for branch stewardship. A total of 13 programmes were conducted covering 238 officers First-Time Branch Heads.

h. First-Time Managers: Your Bank conducted the programme for Executives-On Contract appointed as Assistant Managers in the Bank. The programme is for six days covering functional and behavioural learning sessions. During the year, 16 programmes were conducted at ICBF covering 490 Assistant Managers.

i. Programmes on Compliance: Compliance, Control and Ethics (CCE) remains the central theme for all the learning programmes of your Bank. The sessions on CCE have been included in all the learning programmes to spread awareness about its importance among employees at every level. E-Learning modules on Know Your Customer and Anti Money Laundering, Money Mules, Cyber Security, Preventive Vigilance, Prevention of Sexual Harassment (POSH), Code of Ethics, Customer Service, etc. are being assigned to the employees as part of the mandatory certifications in OJAS. The circulars issued by the RBI are also assigned to the employees as part of the quarterly Mandatory Certifications in OJAS. In FY 2025-26, participant coverage in regulatory compliance module has been 99.14% of the eligible employees.

Nurturing Young Talent

a. Induction Programmes: To nurture young talent and ensure smooth integration, Induction Programmes-cum-Role-based workshops were conducted for the new recruits to enhance their

onboarding experience, competencies, familiarising them with the Banks work culture, growth opportunities, their roles & expectations. The programmes included, ‘Crafting The Future for Junior Assistant Managers, AgriEdge for the newly joined Agriculture officers and Induction Programme for Lateral recruits, Assistant Managers and Executives. A total of 112 Induction Programmes were conducted covering 2,792 employees.

b. Talent Development Programmes: Your Bank continued to enhance its internal talent pipeline through focussed development programmes aimed at deepening domain expertise. The following programmes were conducted by your Bank during the year:

• Intensive Credit Management Programme (ICMP) for developing credit skills among officers in Large & Mid Corporate Group

• Information Systems & Technology Excellence Programme (INFOSTEP) for newly recruited IT officers

• DSCI Certified Data Protection Officer (DCDPO) - Programme conducted in collaboration with Data Security Council of India (DSCI). The participants on qualifying an assessment post the training were certified as ‘DSCI Certified Data Protection Officer (DCDPO).

• Programme on Credit Appraisal Level 1 and Level 2 for officers posted in Credit Solution Centres

• Role Based Programme for newly recruited legal officers

• Role Based Programme for Officers working in Compliance Department

• Training and Refresher programme for staff posted in Internal Audit Department

c. Post Graduate Diploma in Banking & Finance (PGDBF): IDBI PGDBF is a one-year diploma to provide learning to prospective candidates for recruiting as Junior Assistant Managers (JAMS) in your Bank. The programme includes six months of classroom learning, two month internship and four months of On-Job-Training at the Banks branches/ offices/ centres. Your Bank has tie-up with U-next Manipal Global Education Services Pvt. Ltd., Bengaluru and NITTE Educational International Pvt. Ltd., Greater Noida for the six months classroom learning. This channel provides the Bank with trained resources at the entry level.

Digitisation of Learning - Leveraging Technology & AI

a. OJAS (e-learning): Your Bank aims for the digitisation of learning aligned with the industry-best practices and providing convenience to the participants, saving time and cost. Mandatory programmes as per the regulatory guidelines have been developed into e-learning modules to provide easy access to employees. This approach has yielded good results with a higher completion percentage by all the employees. Participant coverage in regulatory compliance module has been 99.14% of the eligible employees.

Updation of OJAS (e-learning) Modules: To facilitate convenient access to the latest developments, guidelines of the Bank, products and processes to the employees, your Bank has undertaken efforts to update e-learning modules with support of subject matter experts. These modules are accessible online including on mobile.

b. Virtual Programmes through Microsoft Teams:

Virtual programmes have been thoughtfully designed and conducted both internally and in collaboration with external institutes. These initiatives have been well-received, providing participants with valuable learning experiences.

c. Online Capsule Programmes: To promote digitisation, specialised topics have been covered under ‘Online Capsule Programmes. This initiative has significantly enhanced accessibility and engagement among employees.

Exclusive programmes for Board Members & Senior Management:

Your Bank has organised programmes to current industry relevance for Board and Senior Management in collaboration with reputed institutes, as under:

• Indian Institute of Corporate Affairs (IICA) - Programme on Corporate Governance for the Directors of IDBI Bank.

• Design Thinking: Sustainable Business Impact Outcome.

• Program on Strategic Insights.

• Virtual Programme on KYC and AML for Board of Directors of Banks, NBFCs and Financial Institutions.

Retirement Programme: An exclusive quarterly programmes is designed for employees scheduled to retire in the upcoming quarters, focussing on financial planning, emotional readiness, and lifestyle adjustments and exploring post-retirement opportunities to ensure a smooth and fulfilling transition.

Impact Analysis - Qualitative Improvement Index (QII)

The QII is being measured in a systematic manner for Role-based workshops and Online Capsule programmes to assess employees understanding, knowledge enhancement and the value they create at the workplace after a certain period post-programme. The QII is derived based on the following parameters:

• Exit Test Assessment - Measures knowledge retention post-programme.

• Employee Feedback - Captures the participants perception about the programme and its applicability at the workplace.

• Feedback from Reporting Authority - Taken after a defined period to evaluate functional and behavioural improvements and changes in the employee.

• Business Growth - Evaluation is conducted in every functional programme to assess improvement in branch business performance after a certain period. This evaluation is based on the parameters of the business ranking of the branches, encouraging employees to stay focussed and drive improvement.

• Reduction in Operational Pendency - CCE sessions are included in every programme to reinforce compliance, control and ethics in daily work. Their effectiveness is assessed through improvements in operational efficiency and reduction in compliance pendency, based on branch compliance ranking parameters.

Organising Learning Programmes for other Banks and NBFCs

Your Bank conducted 14 learning programmes for other banks, financial and management institutions, co-operative banks, covering 938 participants in various areas, leveraging internal and external expertise. This initiative strengthens connect with other institutes and helps exploring future collaborations for mutual benefit.

Faculty Development Programmes

To ensure effectiveness of the learning programmes, your Bank has made significant investments in this area. Faculty members undergo dedicated workshops to refine delivery skills, align with updated programme frameworks and ensure consistent, high quality learning experiences across all centres.

Learning Activities for Employee Engagement

• Learning Club - A group of volunteers, willing to learn, to share and to empower each other. Conducted on every 1^st Wednesday of the month, it is called ‘Power Wednesday. Sessions were conducted by experts through Microsoft Teams on topics selected by the Learning Club members.

• Theme-Based Learning Wednesdays - It is an initiative to foster continuous learning habits among Team IDBI. ‘Learning Wednesday - A Day of SelfEmpowerment has been religiously conducted by the officers at branches, departments, verticals, processing cells across country, every Wednesday for an hour in the evening.

• IDBI Knowledge Cup:- A Bank-wide quiz competition designed to strengthen knowledge and teamwork. It builds a healthy competitive spirit while promoting continuous learning.

• Rapid Fire Knowledge Checks at Learning

Centres - Quick end-of-programme quizzes that reinforce key learning takeaways boosting retention, engagement and immediate application of concepts.

• E-Publications - QBank - Your Bank has developed and regularly updated Question Bank for knowledge updation on products, processes, guidelines and general awareness.

ADMINISTRATION AND INFRASTRUCTURE MANAGEMENT

Your Bank has continued to strengthen its physical and operational infrastructure through a series of strategic initiatives. During the year, the Bank acquired 1,618.74 square metre of land on 60-year leasehold basis at Amaravati, the capital city of Andhra Pradesh State, with plans to construct a facility including a retail branch, back office functions, training centre and provision for a future Zonal Office. During FY 2025-26, the Banks infrastructure expansion efforts contributed to an increase of 70 new branches in the Banks network across the country and has completed relocation, major renovation of about 101 branches and offices across various Zones.

To celebrate its legacy, the Bank created ‘Smriti Path - A journey of Milestones at its Head Office in Mumbai, a museum to showcase the organisations rich history and significant contribution to the financial landscape of the country.

Your Bank launched a campaign ‘MY OFFICE MY PRIDE, undertaking a large-scale weeding out exercise of old records and files. This initiative resulted in the disposal of 14,550 kg of outdated papers and files, fostering cleaner, more sustainable working environment. To further reduce paper usage, digital information panels have been installed at strategic locations at its Head Office in Mumbai.

During the year, the Bank undertook various civil works and infrastructure projects, including redevelopment and renovation of residential staff quarters and construction of additional housing and training infrastructure, aimed at improving quality of life and overall well-being of its employees as well as supporting the capacity-building endeavours. Major projects included structural repairs, renovation as well as re-development and construction of additional infrastructural facilities across the Banks official and residential premises located at Mumbai, Chennai, Hyderabad, Ahmedabad Raipur, Bhopal and Satara. Further, strengthening its regional presence, the Bank inaugurated new Regional Offices at Alwar, Ujjain and Thiruvananthapuram. On the technology front, the Bank has undertaken electrical upgradation of Data Centre, including procurement of 2 units of 600 KVA Modular UPS at its office at CBD - Belapur, Navi Mumbai.

Under its CSR efforts, the Bank has assisted in constructing barracks for the police personnel posted at the Cuffe Parade Police Station, Mumbai, to improve their living conditions and contribute to their overall welfare and thereby, contributing to enhancing their morale and efficiency in discharging their duties.

On the safety front, the Bank has implemented the Occupational Safety and Health Administration (OSHA) policy during the year, as part of responsible and safe business environment within the broader ESG framework. The policy emphasises proactive identification of risks and the prevention of workplace hazards through continuous monitoring and improvement of safety practices, in alignment with applicable occupational safety and health regulations, to ensure a safe, healthy, and secure working environment for all employees and off-roll staff operating within its premises. Further, the policy incorporates regular training sessions, awareness programmes, and structured incident reporting mechanisms as integral components.

To improve efficiency and turnaround time, your Bank has automated several procedures, including the online submission of life certificate by retired employees, reflecting its commitment to digital transformation and employee convenience.

INTERNAL AUDIT

Your Bank has a dedicated Internal Audit department that provides independent and objective assurance on the adequacy and effectiveness of internal controls, risk management and governance processes within the organisation. The department also evaluates the adherence to internal policies and procedures as well as applicable regulatory guidelines, while also offering constructive recommendations for process improvements.

The Audit function has adopted the Risk-Based Audit approach, ensuring that audit coverage is aligned with the Banks risk profile and business priorities. The audit activities of the Bank cover the entire spectrum of the Banks business and support verticals spread across Zonal Offices, Regional Offices, branches and non-branch segments. The Risk-based Internal Audit framework is periodically reviewed and revised to remain responsive to evolving business environment and to promote a strict culture of compliance. The Audit Department functions under the overall guidance and supervision of the Audit Committee of the Board (ACB).

The governance of the audit function is anchored in a comprehensive policy framework comprising the Risk-based Internal Audit Policy, the Concurrent Audit Policy and the Information Systems Audit Policy. Under the Risk-based Internal Audit Programme, the Audit Department conducts a wide-range of audits, including Branch Audit, Management Audit of Zones and Regions, Credit Audit, Information Systems Audit, Concurrent Audit. In addition to these routine audits, the Audit Department also undertakes Surprise Audit, Dynamic Audit, Snap Audit, Thematic Audit etc. to ensure robustness of the internal control mechanism.

To ensure focussed oversight and effective follow-up of audit observations, a Zonal Audit Office (ZAO) structure has been created, with particular emphasis on Branch Audits. The entire audit lifecycle is undertaken through a web-based application, viz. i-Netra (Integrated Audit Management Solution), which facilitates real-time access for officers of auditee units and enables continuous monitoring of compliance status.

In addition, the Audit Department is also entrusted with key governance-related responsibilities, including staff accountability examination, Long Form Audit Report, Internal Financial Controls over Financial Reporting and Whistle Blower Mechanism in accordance with the Whistle Blower Policy.

The Audit function is supported by a team of suitably qualified and skilled professionals, who play a proactive role in identifying risks and recommending enhancements in processes and service delivery. Through timely feedback and structured reporting to management, the department contributes to effective corrective action, thereby mitigating operational, financial and regulatory risks and strengthening the Banks overall control framework.

Long Form Audit Report (LFAR)

The Internal Audit Department plays a facilitative and coordinating role in the finalisation of Long Form Audit Report (LFAR) by the Statutory Central Auditors (SCAs). Acting as the nodal point for LFAR-related activities, the department liaises closely with the Banks various business verticals, functional departments and branches to comply, validate and furnish the requisite information to the SCAs in a timely and structured manner. The Internal Audit department as the nodal department for coordinating the LFAR activity in the Bank, proactively follow-up with the concerned verticals and departments and ensures timely and effective compliance with the observations made in the LFAR. This coordinated approach enables timely closure of audit observations and supports the strengthening of internal controls across the Bank.

To further strengthen a culture of continuous compliance, the Audit department regularly issues advisories to the dealing groups (DG) to encourage adoption of proactive measures to address controls gaps, expedite reconciliations and rectify identified anomalies. These initiatives are complemented by regular inter-vertical meetings including structured interactions with Zones aimed at strengthening controls frameworks, enhancing efficiency and improving overall governance standards across the Bank.

Internal Financial Control over Financial Reporting (IFCO-FR)

The Bank has established a robust framework for implementation of Internal Financial Controls over Financial Reporting, under which the internal controls are embedded across all the business processes, aligned with associated risks. These controls are mapped through well-defined Risk Control Matrices (RCMs), which are periodically reviewed and independently evaluated on quarterly basis to ensure their continued adequacy and effectiveness.

An external consultant engaged for this purpose carries out independent assessments, including both onsite and offsite testing of control effectiveness at administrative offices as well as branch locations. The evaluation process assesses the design and operating effectiveness of internal controls and includes recommendations for strengthening the control environment, wherever necessary.

As a part of the Integrated Audit Management Solution, your Bank implemented the IFCO-FR module in i-Netra to further enhance efficiency, transparency and traceability. This automated solution enables end-to-end management of the periodic evaluation process, encompassing data collection, control testing and the testing and maintenance of a standardised repository of evidences, thereby ensuring consistency and audit readiness.

The Internal Audit department is working as the nodal department for coordinating the activity between the external consultants and the business verticals and departments in the Bank. Through this structured coordination, the department ensures independent and objective assessment of internal controls for reporting to the Audit Committee of the Board. The Audit department works closely with all the business owners to progressively shift controls from detective to preventive in nature and to promote automation over manual processes. Further, the Audit department also issues regular advisories to sensitise the business process owners for regular assessment of risks and periodic review of associated controls. This ongoing engagement fosters a strong control consciousness across the organisation, ensuring that control mechanisms remain efficient, effective and aligned with the Banks governance and financial reporting objectives.

Information Systems (IS) Audit

Information Systems (IS) Audit forms an integral component of the Banks Internal Audit function and plays a critical role in providing ongoing assurance over technology risks and their business impacts. Given the extensive adoption of information technology across banking operations, the Bank recognises the importance of frequent and comprehensive review of IT systems to ensure that robust controls, security frameworks and best practices are consistently embedded across all information systems.

The Banks IS Audit function is designed to safeguard confidentiality, integrity, and availability of its IT assets. It encompasses a broad audit scope covering IT systems and Applications, IT Infrastructure, IT-related policies and processes, branches and outsourced IT service providers. Through this comprehensive coverage, the IS Audit function ensures effective oversight of technology risks across the Banks digital ecosystem.

Adhering to the RBIs guidelines on ‘Independent Assurance of the Audit function, the Banks IS Audit provides assurance to both management and regulators on the adequacy and effectiveness of the Banks information systems controls. The effectiveness and efficiency of the Banks Internal Audit function are further validated through periodic quality assurance reviews, reaffirming the Banks commitment to strong governance and regulatory compliance. In line with evolving regulatory expectations and emerging cyber and technology threats, the Bank has updated its comprehensive IS Audit Policy to ensure continued relevance and resilience.

To maintain high levels of technical competence, the Bank places significant emphasis on capacity building within the IS Audit team. Regular internal and external training programmes are regularly conducted to apprise IS auditors of emerging technologies, information security best practices and the RBIs master directions, advisories and circulars. As a result, the IS Audit team remains well-versed in in terms of technological developments and evolving business areas.

The Bank continues to strengthen its IS Audit governance framework through a culture of continuous improvement. Regular audits, reviews, assessments and feedback mechanisms enable timely identification of areas requiring enhancement and facilitating implementation of corrective measures.

Concurrent Audit

The Concurrent Audit (CA) system forms a critical part of the Banks Early-Warning System for timely identification of irregularities, operational lapses, and procedural deviations. By providing continuous oversight, the CA framework aids in detecting violations of internal policies and regulatory guidelines, thereby mitigating risks and preventing fraudulent transactions. The CA system serves as an essential control process, underpinning the Banks internal accounting systems and strengthening the overall control environment.

In compliance with the RBI guidelines and the Board-approved Concurrent Audit Policy, the Bank has implemented the CA framework across a wide range of business units based on risk assessment and the volume of business handled. Concurrent Audit coverage extends to Retail Banking Group (RBG) branches based on risk perception and volume of business handled, specialised or non-RBG units such as Large Corporate Group (LCG), Mid Corporate Group (MCG), Trade Finance Centres (TFCs), Retail Asset Centres (RACs), Currency Chests, Treasury operations, as well as Centralised Processing Centres like Credit Solutions Centre, centralised account opening divisions such as Regional Processing Units (RPUs).

As stipulated in the Board-approved CA Policy of the Bank, the CA is required to cover 70% of deposits and 70% of advances of the Bank. Accordingly, as per ACB approved Concurrent Audit Plan for FY 2025-26, the CA achieved a coverage of 76.75% of deposits and 82.50% of advances, encompassing a total of 1,211 auditee units across the Bank.

The performance and quality of Concurrent Auditors are subject to continuous monitoring by the Zonal Audit Offices and the Head Office of the Bank located in Mumbai to ensure adherence to audit standards and timely submission of reports. To further mitigate risks, ad-hoc audits are also conducted on quarterly basis by the respective Zonal Audit Offices for the Rural (Financial Inclusion) branches and Rural branches categorised as ‘High Risk or above. Such audits are also undertaken at locations where appointment of Concurrent Auditors is constrained due to non-availability. As a supervisory control, the Bank conducts regular meetings with Concurrent Auditors to address audit findings and enhance audit effectiveness. In addition, formal meetings are convened once in every three months by the General Manager or Deputy General Manager - Zonal Audit Office (ZAO) with the Concurrent Auditors and the auditee units.

Credit Audit

The Bank has instituted a structured Credit Audit mechanism to facilitate a comprehensive and in-depth review of selected borrower accounts, with the objective of strengthening credit quality and enhancing the overall robustness of the loan portfolio. The Credit Audit process provides independent assurance regarding the effectiveness of credit risk management practices and supports early identification of potential weaknesses in credit appraisal and monitoring.

Credit Audit encompass a detailed examination of key aspects of lending, including the adequacy and quality of credit appraisal, compliance with internal policies and regulatory guidelines, adequacy of documentation and security creation, examining conduct of account, etc. Borrower accounts selected for Credit Audit are identified on the basis of well-defined risk-based criteria. These include all new, takeover and enhancement proposals and proposals for renewal as well as renewal-cum-enhancement of limits and corporate renewal cases which are rated BBB and below, with sanction limits beyond defined threshold limits. In addition, accounts that have migrated to Below Investment Grade during the review period are also brought under the audit purview. This targeted approach ensures that higher-risk exposures receive enhanced scrutiny, thereby supporting proactive risk mitigation and sustained improvement in portfolio quality.

Investigative Audits or Special Investigative Audits (IAs/ SIAs)

Your Banks Audit department undertakes Special Investigative Audits/ Investigative Audits (SIAs/ IAs) across branches and offices based on various risk-based triggers. These investigations play a vital role in strengthening the Banks control environment by enabling timely identification of gaps in systems, policies, product guidelines, processes and procedures, thereby helping in strengthening controls and better overall monitoring of the branches. Early triggers provided by SIAs/ IAs have assisted the Zonal Offices in initiating timely recovery or legal actions, helping to prevent slippage of accounts into Non-Performing Assets (NPAs). Significant observations emerging out of these SIAs are placed before an Executive Director (ED) level Committee for SIA/ IA for appropriate guidance and directions and the status of corrective actions thereon is periodically reported to the Audit Committee of the Board (ACB). Key lapses and control deficiencies identified through SIAs/ IAs are systematically communicated to the concerned branches and offices as well as to the controlling offices, with a view to preventing recurrence. These efforts reinforce a strong compliance culture across the Bank, encompassing not only branch-level and office-level operations but also supervisory oversight, thereby enhancing overall governance and monitoring mechanisms.

Staff Accountability

Your Bank has a dedicated team for examining Staff Accountability issues under Board-approved Staff Accountability (SA) Policy, which is reviewed every year. The SA exercise is aimed at safeguarding the larger interests of the Bank by identifying the areas where the rules and procedures designed to protect the interests of the Bank are not followed by the staff, resulting in loss to the Bank. This exercise helps the Bank to undertake timely and appropriate corrective steps by way of improvement in systems and procedures, strengthening any knowledge gaps by way of training and mentoring, or by any other action to create an environment which could be conducive for better compliance of the guidelines and processes.

VIGILANCE MECHANISM

Your Bank has established a well-defined vigilance framework through a dedicated Vigilance Department (VgD), headed by a Chief Vigilance Officer (CVO), at its Head Office in Mumbai. To strengthen oversight and enhance effectiveness at the field level, the Vigilance teams have been set up at all its Zonal Offices (ZOs), enabling closer monitoring and improved control of vigilance-related activities across the Bank.

The CVO is responsible for overseesing the vigilance function in the Bank, with a comprehensive scope encompassing both preventive and investigative aspects. This includes gathering intelligence about corrupt practices, whether committed or likely to be committed by the employees; examining complaints with vigilance overtones supported by verifiable allegations; processing vigilance and Investigation Reports for further consideration of the Disciplinary Authority; referring the matters, wherever necessary, to the Central Vigilance Commission (CVC) for their consideration and advice; initiating measures to prevent commission of malpractices or misconducts and co-ordinating and liaising with various law enforcement agencies, among other activities.

To strengthen awareness and facilitate access to vigilance-related information, your Banks Intranet hosts a dedicated webpage of the Vigilance Department. This platform provides an overview of its functions, format of Standard Notice prescribed by the CVC for display at the Banks branches and offices, important circulars and guidelines issued from time-to-time by the CVC, the Chief Technical Examiners Organisation (CTEO) of CVC, the Department of Expenditure, Government of India, as well as internal directives of the Bank. It also highlights preventive vigilance initiatives, including Dos and Donts of preventive vigilance. These initiatives have contributed to enhancing the level of vigilance awareness amongst your Banks officers.

The vigilance function comprises elements of both ‘Preventive Vigilance and ‘Punitive Vigilance. Preventive Vigilance is a continuous process, which strives to review the existing guidelines to ensure that set systems and procedures are being followed, to reduce use of discretion and to ensure sensitisation of and to create awareness amongst the employees as well as the stakeholders of the Bank on vigilance matters.

As part of its preventive vigilance efforts, the Bank undertakes Onsite Monitoring, Surprise Vigilance Visits (SVVs) and inspections on suo-moto basis conducted both as a part of planned basis as well as based on specific source information relating to suspected wrongdoing by staff or external elements. These measures help in detecting malpractices, if any, and in assessing compliance with laid-down systems and procedures. Apart from this, the Vigilance department carry out scrutiny of One Time Settlement (OTS)/ First Time Non-Performing Assets (FTNPAs), Annual Return of Assets & Liabilities (ARAL) of the officers of the Bank, Audit Reports of the Bank and issuance of advisories to curb irregularities found for systemic improvements, wherever necessary as also imparting training to employees on vigilance matters to reinforce vigilance principles across the organisation. Your Bank has also implemented a Vigilance Complaints Management Module (VCMM) to enable effective monitoring and expeditious disposal of complaints relating to the vigilance matters.

In line with the directives of the CVC and as a part of its continued commitment to promoting integrity and transparency, your Bank observed Vigilance Awareness Week (VAW) 2025 from October 27, 2025, to November 02, 2025, with the theme as TRf^TTT - SHIGhisu (Vigilance - Our Shared Responsibility). On this occasion, a special e-journal was released for the benefit of all its employees. Various online and offline competitions, including quizzes, essay writing, cartoon and caricature, coin-a-caption, memory games, were organised on a pan-India basis for staff members and their children. Further, during the VAW 2025 week, senior officials from Central Vigilance Commission (CVC) and Law Enforcement Agency (LEA) addressed the employees at the Head Office of your Bank in Mumbai.

As a part of the observance of the VAW 2025, employees of the Bank took the Integrity Pledge through online mode and a link for the same was also shared with customers along with their account statements, encouraging broader participation in the fight against corruption. Seminars and workshops were organised at various locations for the field functionaries, customers and members of the public. To enhance outreach, banners and posters were displayed at prominent locations across your Banks Zonal Offices (ZOs), Regional Offices (ROs), branches and also at other places with public interface. Your Bank also organised Gram Sabhas and awareness campaigns at various locations.

In accordance with directives of the CVC, information regarding VAW-2025 was disseminated through your Banks website as well as its social media platforms, further reinforcing the Banks commitment to integrity, transparency and ethical conduct.

REGULATORY COMPLIANCE

Your Bank ensures compliance of the statutory and regulatory guidelines issued by the Gol, RBI, Securities and Exchange Board of India (SEBI) and other regulatory/ statutory bodies through a structured system of internal controls and tiered reviews. The compliance function is anchored by the Compliance Department at the Banks Head Office in Mumbai, headed by a senior official in the rank of Executive Director designated as Chief Compliance Officer (CCO) who oversees the dissemination, implementation and internalisation of all regulatory and statutory guidelines across the Bank.

Your Bank operates under a Board-approved Compliance Policy, formulated in line with the RBI guidelines and reviewed annually. The Policy delineates the roles and responsibilities of various stakeholders in relation to the compliance function, ensuring accountability and consistency in implementation. Supported by this framework, the Bank has established a robust and effective compliance architecture, with a continuous focus on strengthening the framework in response to the evolving regulatory landscape, emerging technologies, internal capabilities enhancements and findings from periodic external audits or reviews of compliance function.

The Board is kept apprised, on a monthly basis, of significant regulatory communications, directives and guidelines received from the RBI and other regulators or agencies. In addition, the Bank undertakes risk-based compliance testing in accordance with an approved compliance testing plan to validate adherence to regulatory requirements and identify gaps, if any, on a timely basis.

To reinforce compliance at a granular level, your Bank has leveraged advanced technology-enabled solutions, including Cermo+ NXT, workflow-based compliance systems, CaseWare IDEA, a Knowledge Management Tool (KMT) and various monitoring trackers. These digital tools facilitate enterprise-wide compliance monitoring, timely submission of regulatory returns and effective data management, thereby enhancing compliance culture in the Bank.

RIGHT TO INFORMATION (RTI) ACT

Your Bank has put in place a comprehensive institutional mechanism to ensure timely and effective implementation of the Right to Information (RTI) Act, 2005. Your Bank has designated Central Public Information Officers (CPIOs) for responding promptly to requests for information pertaining to various functional areas. In addition, all Branch Heads have been designated as Central Assistant Public Information Officers (CAPIOs) to receive and forward applications under the Right to Information (RTI) Act to CPIOs. Your Bank has designated a senior officer in the rank of Chief General Manager as First Appellate Authority (FAA) for dealing with appeals of aggrieved applicants. A Transparency Officer, in the rank of Executive Director, has been designated for effective implementation of provisions of Section 4 of the RTI Act. A separate link for the RTI Act has been provided on the Banks website (https://www.idbi.bank.in/). Your Bank has also aligned with the Government of Indias RTI online portal, whereby citizens can seek the information and raise appeals under RTI Act through the portal (https://rtionline.gov.in). These measures enable your Bank in efficiently handling and disposal of RTI requests in accordance with statutory requirements.

PROGRESSIVE USE OF HINDI

During the financial year, your Bank made concerted efforts to promote usage of Official Language, Hindi, in accordance with the provisions of the Official Language Act and Rules of the Government of India. All the verticals, departments, Zonal and Regional Offices as well as other offices and branches of your Bank undertook focussed efforts on regular basis to achieve the targets prescribed in the Annual Programme and other directives issued by Department of Official Language, Ministry of Home Affairs, GoI.

As part of its commitment to the progressive use of Rajbhasha in customer engagement, your Bank implemented several initiatives for the progressive use of Rajbhasha in customer communications such as issuance of ATM receipts and sending of SMSes in Rajbhasha. During the year, efforts were undertaken to provide in-depth information about the Banks products and schemes in Rajbhasha on its website. The Banks mobile application, GO Mobile+, is enabled with the facility of Rajbhasha, further enhancing accessibility for customers. Additionally, posters, banners and other publicity materials were displayed in Rajbhasha as well as in regional languages at customer touchpoints for the benefit of customers. Rajbhasha and regional languages were used in various advertising campaigns including governments social security schemes.

To facilitate official work in Rajbhasha, your Bank uploaded template letters, forms, formats, Annual Reports, press release advertisements, dictionaries, noting and other relevant reference materials in bilingual form on its Intranet. Various incentive schemes were implemented and many competitions were organised to encourage staff members to use Rajbhasha in their day-to-day official work. In order to progressively increase the usage of Rajbhasha in different departments and verticals of Bank, workshops were organised in all the regions of the Bank to familiarise the employees with the various requirements of Official Language implementation and use of Rajbhasha Unicode.

In line with statutory requirements, your Bank observed Rajbhasha fortnight during September 2025. Quarterly meetings of Official Language Implementation Committee (OLIC) were held to review and monitor the progress of implementation of Rajbhasha in the branches and departments and quarterly reports were forwarded to the Department of Official Language, Ministry of Home Affairs, GoI. Inspection of branches and departments were also carried out to ensure implementation of Rajbhasha.

Through these sustained initiatives, your Bank endeavoured to promote use of Rajbhasha in the day-to-day official work and received due recognition at various forums and was also conferred with awards during the year.

CUSTOMER SERVICE AND COMPLAINTS MANAGEMENT

Reflecting the spirit of its mission to be the most preferred and trusted bank for all its stakeholders, your Bank adopted a customer-centric approach focussed on delivering service excellence and ensuring customer delight.

The Customer Care Centre (CCC) is central to the Banks commitment to timely and effective complaint resolution, strengthening customer trust and satisfaction through positive experience.

To remain responsive to evolving customer expectations and regulatory norms, your Bank undertakes annual review of its Customer Care Policy, Grievance Redressal Policy and Customer Rights Policy. These policies are designed to empower customers by ensuring a structured, transparent and time-bound grievance redressal framework. All complaints received across various channels are handled in accordance with these policies, which stipulate a defined time-bound inbuilt escalation matrix and an internal alert mechanism. As per these policies, in case a complaint is not resolved within the pre-defined turnaround time, it is escalated to the next level of authority to ensure effective complaint resolution. Your Bank has designated Grievance Redressal Officers (GROs) at each of its 16 Zonal Offices and a Principal Nodal Officer (PNO) at the Head Office. Further, in compliance with the Reserve Bank of India (Commercial Banks - Internal Ombudsman) Directions, 2026, all complaints proposed to be rejected or provided with partial resolution by the Bank are referred to the Internal Ombudsman (IO) for independent review before responding to the customers.

Your Bank has put in place a centralised complaint management system for recording, monitoring and timely resolution of complaints received from various channels. All complaints received are lodged in the system and an SMS acknowledgment is sent to the customers upon complaint registration, which allows them to track the progress of their complaints through the Banks website, nearest branch, or Contact Centre.

Your Bank has two dedicated Customer Contact Centres, located at CBD Belapur in Navi Mumbai and Hyderabad, to address customer queries on a 24x7 basis and swiftly redress customer grievances received from multiple channels. Respecting and acknowledging diversity of the Banks customers and striving to personalise their interactions, apart from Hindi and English, the Customer Contact Centre offers services in 10 regional languages.

Your Bank conducts a depositor satisfaction survey on an annual basis and findings are evaluated and the insights derived are incorporated to improve products, processes and systems. Meetings of the Branch Level Customer Service committee (BLCSC) are conducted on 15^th of every month in order to encourage a structured communication between the customers and the branch, thereby enhancing the service levels at branch.

Your Bank has established two senior level customer service committees, i.e. Standing Committee on Customer Service (SCCS) and Customer Service Committee of the Board (CSCB), for assessing the quality of customer service. These Committees, which are convened on a quarterly basis, are entrusted with the task of assessment of quality of customer service rendered by the various touch points of the Bank. Further, the Committees also evaluates complaints and feedback received from customers and provides necessary directions to improve the efficiency of grievance resolution and necessary changes in the extant norms or processes to facilitate improvement in customer service.

The Bank has undertaken key initiatives to enhance customer service and experience, including establishing a dedicated "Green Corridor" for expedited resolution of HNI and NRI complaints. An automated communication system via iTouch CRM ensures timely email updates on complaint status, supported by an online tracking feature for transparency. An instant SMS-based feedback mechanism has been introduced post call centre interactions to monitor service quality. Additionally, credit card customer call centre services have been integrated with the Banks in-house setup, enabling streamlined operations and improved service delivery.

CORPORATE COMMUNICATIONS

During FY 2025-26, the Banks advertising and communication initiatives were focussed on strengthening brand recall and enhancing consideration for its flagship products through sustained brand awareness and product and service promotion. The campaigns during the year were designed to reinforce the Banks brand positioning while highlighting the key differentiators of its offerings. Communication efforts were largely deployed through Out-of-Home (OOH), print, and digital media, supplemented by calibrated usage of television and radio to achieve optimal reach and frequency.

Concurrently, the Bank pursued focussed initiatives in the Public Relations (PR) domain aimed at maintaining positive media tonality and enhancing visibility across print, electronic, and digital media platforms. These efforts contributed to favourable coverage of the Banks initiatives, supporting improved stakeholder perception and stronger media presence during the year.

The Bank also actively engaged with its stakeholders through its official handles on social media platforms including Facebook, Instagram, LinkedIn, X and YouTube. Serving as important communication channels, these platforms enabled the Bank to communicate its products and services and showcase customer-focussed initiatives to a wider audience while also strengthening stakeholder engagement through innovative and interactive content. Recognising that informed customers are empowered customers and in line with its commitment to customer well-being, a series of customer education initiatives were implemented across multiple media channels, particularly focussing on topics such as cyber security, fraud awareness and safe banking practices in view of rapid growth in digital adoption, coupled with associated rise in incidences of digital frauds.

INFORMATION TECHNOLOGY

During FY 2025-26, your Bank continued to advance its technology transformation agenda, with a strong focus on digital modernisation, operational efficiency, customer centricity, regulatory compliance, innovation, all closely aligned with the Banks overarching business strategy.

Over the course of the year, the Bank rolled out more than 540 IT developments, custom isations and enhancements, including the launch of 26 new applications and several major system upgrades. These initiatives reflect the Banks sustained commitment to innovation and enterprise wide digital maturity, ensuring that technology remains a key growth driver of growth, resilience and customer experience.

Customer Experience and Digital Engagement

Your Bank has continued to expand its digital footprint by rolling out an Omni Channel platform, designed to deliver consistent customer experience across web and mobile channels with additional new journeys introduced during the year. For retail customers, the Bank launched SWIFT GPI based FX remittance tracking on mobile and net banking channels, providing real time visibility of inward and outward foreign remittances and enhancing transparency in cross-border transactions. Digital customer engagement was further strengthened through WhatsApp-based enrolment for PMJJBY and PMSBY, simplifying access to social security schemes and improving outreach to underserved segments. To further financial inclusion, the Bank enabled eKYC-based savings account opening enabled via Business Correspondents, facilitating paperless customer onboarding and extending banking services to remote areas. Field operations were also digitised through multiple Android- based KBS applications, covering lead generation, passbook printing, and AEPS enablement or disablement, ensuring real time processing, improved service delivery and enhanced operational control, underscoring the Banks commitment to efficient, accessible and customer-centric innovation.

Automation and Process Transformation

During the year, the Bank advanced its digital transformation journey by implementing several enterprise-wide technology solutions designed to strengthen governance, efficiency and operational resilience. A comprehensive Identity and Access Management (IDAM) solution was deployed during the year to centrally manage user identities and enforce secure, role-based access across applications and IT systems, ensuring robust security and compliance. To enhance transaction efficiency, the Bank introduced API-based integration between the CTS application and Core Banking System, enabling continuous cheque clearing and significantly reducing clearing cycles while adhering to regulatory turnaround time. Audit processes were digitised through the rollout of an advanced Integrated Audit Management Solution (AMS), supporting the complete audit lifecycle. Employee support systems were also modernised with the launch of a new Payroll System, ensuring improved accuracy and efficiency in employee compensation processing. The Bank also implemented the Integrated Procurement Management System (IPMS), a centralised platform managing the end-to-end procurement lifecycle while ensuring compliance with internal and regulatory requirements. Collectively, these initiatives reflect the Banks commitment towards building a secure, efficient and digitally mature organisational environment, aligned with its broader strategy of operational excellence and customercentric innovation.

Risk Management and Regulatory Compliance

During the year, the Bank further strengthened its risk management and regulatory reporting capabilities through a series of technology-led initiatives. Fraud monitoring and reporting capabilities were strengthened through automation and integration of the Centralised Payment Fraud Information Registry (CPFIR) with multiple payment channels, enabling streamlined detection and timely reporting of fraudulent transactions. In alignment with the RBI Project Finance Directions, 2025, the Bank deployed a comprehensive application to manage the entire lifecycle of project loans, including CRILC reporting, provisioning and regulatory disclosures, to ensure compliance and transparency in project finance operations. The Bank also upgraded its Oracle Financial Services Analytical Application (OFSSA) platform, implementing advanced modules such as Interest Rate Risk in the Banking Books (IRRBB), Basel Capital Adequacy and Analytics and International Financial Reporting Standards (IFRS), significantly enhancing risk analytics and regulatory reporting capabilities. Further, the integration of Credit Information Company (CIC) data with CRM has aided in further strengthening credit assessment and customer relationship management, providing meaningful insights and enabling more informed decision-making.

Innovation and Transparency

The Bank launched the I-CATAL(Y)ISTS platform during the year, which is a secure digital forum for employees to submit innovative ideas and suggestions for organisational improvement. Further, transparency and institutional governance were strengthened through the implementation of the Online Vigilance Complaint Portal (OVCP), enabling efficient electronic receipt, registration and tracking of vigilance related complaints.

Key IT Infrastructure Initiatives

During FY 2025-26, your Bank continued its focus on technology-led innovation by undertaking a comprehensive hardware modernisation programme across critical IT infrastructure. The initiatives were aimed at strengthening system resilience, enhancing performance and creating a scalable infrastructure to support the Banks growing digital and business requirements. Your Bank upgraded its hardware supporting the Core Banking System (CBS) to improve processing capacity, system availability and transaction throughput. The enhanced infrastructure has enabled faster real-time transaction processing, improved batch performance and seamless service delivery across branches, ATMs, digital banking channels and payment systems. Your Bank has also upgraded its network infrastructure to support higher bandwidth requirements with more than 98% of the branches having at least 4 Mbps dual links, low latency connectivity and secure data transmission across the Banks distributed environment. Your Bank has also set up landing zones in two public clouds for cloud adoption and completed migration testing of two applications in each of them. Subsequently, the Bank shall be migrating to identified applications to the public cloud with an intent to leverage on the benefits of manageability and scalability of public cloud.

To improve employee productivity and operational efficiency, your Bank also upgraded end user computing infrastructure across branches and offices by replacing the legacy desktops and laptops with modern, energy efficient and secure devices. This resulted in improved system performance, reduced downtime and lower maintenance overhead.

Your Bank also upgraded its security posture. A major cyber security initiative implemented by your Bank has been the deployment of an enterprise-wide Extended Detection and Response (XDR) platform integrated with Endpoint Detection and Response (EDR). The main objective was to address the challenge arising from fragmented security monitoring, delayed threat detection and rising advanced malware/ Zero-day attempts targeting endpoints and servers. The XDR-EDR solution unified telemetry from endpoints, networks, identities and cloud workloads, enabling real-time threat visibility and automated containment. Key technologies included behaviour-based EDR agents, central XDR correlation engine, Security Orchestration, Automation and Response (SOAR) based automated playbooks and threat intelligence driven analytics. Further, your Bank has also implemented Identity and Access Management (IdAM) solution, to undertake user review and management centrally.

Enterprise Analytics and Data Visualisation Initiative

Your Bank has also initiated building in-house capability for data-driven dashboards and recommendations using Tableau. This transformative technology introduced live, interactive dashboards to strengthen decision-making across the Bank.

CENTRALISED OPERATIONS

The Bank has established a dedicated Centralised Operations vertical, encompassing key functional units such as Central Processing Unit (CPU), Regional Processing Unit (RPU), Retail Asset Operations (RAO), Anti Money Laundering Cell (AML), Money Mule Cell, Cyber Crime Cell, Domestic Payments and Remittance Services, Cash Management services (CMS), Government Business Group (GBG), Internet and Mobile Banking operations, Card Issuance and Management section, Data Clean up and Compliance Team (DCCT) and GST Operations. This centralised structure enables standardisation, enhanced control and operational efficiency across a wide range of service and support functions.

During the year, the Centralised Operations vertical undertook several customer-centric initiatives supported by process automation to enhance service delivery and turnaround time. These initiatives included same day account opening, real-time processing of miscellaneous requests, online updation or validation of KYC documents, automation of allotment of Unique Customer Identification Number (UCIC) to customers, near real-time monitoring of transactions and blocking of suspicious alternate channels, successful implementation of phase I continuous clearing, updation of repayment mode for servicing EMI electronically for retail loan customers, returning of property documents within stipulated turnaround time, National Automated Clearing House (NACH) registration through Aadhaar authentication, among others.

The Bank has further enhanced its scan-based account opening processes by on-boarding additional account types such as Individual Current Accounts, Proprietorship Current Account, NRI Accounts and Capital Gain Tax Accounts. This enhancement enabled end-to-end digital validation and significantly reduced turnaround time from T+2 to same-day account opening, thereby improving customer on-boarding experience.

To address emerging financial crime risks, the Bank established a dedicated Money Mule Cell to identify, to monitor and to mitigate risks associated with money mule accounts through a structured and technology-driven approach. An in-house rule-based application, viz. ‘i-Satark was developed and launched in July 2025, to analyse transaction patterns and detect anomalies indicative of money mule activity. This capability was strengthened with integration of the RBIs ‘Mulehunter.AI, an advanced Artifical Intelligence (AI)/ Machine Learning (ML) powered detection engine in October 2025 and integrated with i-Satark application. This has enabled the Bank to detect more complex mule networks and also enhance the Banks capability of money mule detection.

In payments and settlement domain, the Bank implemented API-based Cheque Truncation System (CTS) Clearing in Continuous Clearing environment, enabling near real-time cheque processing and settlement efficiency.

Further, to enhance fraud prevention and response capabilities, the Cyber Crime Cell was automated using API integration with Ministry of Home Affairs (MHA)/ National Cybercrime Reporting Portal (NCRP), improving alert monitoring, case management, and response timelines.

During FY 2025-26, through continuous process automation and development of query tools, Centralised Operations had facilitated the Bank to stay true to its commitment of adding value to customers relationship and improving operational efficiency by reducing the turnaround time for processing of service request from customers, ensuring uninterrupted support services to various business units and thereby reducing operational costs.

BRANCH OPERATIONS SUPPORT AND POLICY

Your Bank continues to place strong emphasis on strengthening staff capabilities by ensuring that employees remained well-informed on banking operations and services, thereby ensuring efficient service delivery to all stakeholders. In this regard, an exclusive training programme was conducted during FY 2025-26, covering all employees of the Bank. In addition, role-based training programmes were imparted to further enhance service quality and operational effectiveness.

In compliance with the applicable regulatory guidelines, your Bank has instituted comprehensive Policy on Unauthorised Electronic Banking Transactions (UEBT) and the Customer Compensation Policy with the aim of safeguarding customer interests as well as ensuring timely resolution and fair and transparent compensation to the customers. Both the Policies, viz. Policy on UEBT (https://www.idbi.bank.in/pdf/ policv/Unauthorised-Electronic-Banking-Transactions-Policv. pdf) and the Customer Compensation Policy (https://www. idbi.bank.in/pdf/policv/Compensation-Policv-Upload.pdf). are made available on the Banks website for convenient access.

In order to facilitate customers in searching and claiming their unclaimed deposits, the Bank has actively registered itself on the RBIs Unclaimed Deposits - Gateway to Access Information (UDGAM) portal and has uploaded details of unclaimed deposits lying with the Bank. Further, Bank has actively participated in the RBIs campaign "YourMoney, Your Right" (launched from October 2025 onwards) for identification and settlement of unclaimed deposits. During FY 2025-26, the Bank has settled a total of 7,320 unclaimed deposit claims involving an aggregate amount of Rs.39.46 crore. This comprises settlement of 1,970 cases amounting to Rs.10.04 crore during the period from April 2025 to September 2025 and 5,350 cases amounting to Rs.29.42 crore under the "Your Money, Your Right" campaign during the period from October 2025 to March 2026 (up to 31.03.26). Simultaneously, the Bank continued to proactively identify and reach out to customers through its branch network and controlling offices to settle unclaimed deposits upfront, thereby avoiding transfer of funds to the Depositor Education and Awareness (DEA) Fund.

Your Bank operates 25 Currency Chests (CCs) across the country, which cater to cash processing for all linked branches and ensure the availability of clean notes for ATMs and branch dispensing. During FY 2025-26, a total of 1,332 Coin Distribution Melas and Note Exchange Melas were conducted through these CCs in co-ordination with branches, facilitating improved public access to currency services.

Your Bank has also undertaken several technological initiatives, systemic checks and process improvisations towards achieving fraud risk mitigation and control, effective operational controls and efficient customer service like, automation in deceased claim settlement, automation of Safe Deposit Locker (end-to-end), and automation in nomination facility in alignment with the RBI directions. The Bank implemented proactive customer communication measures such as alerts form non-operations accounts to prevent accounts from becoming inoperative and subsequent freeze of the account, periodic transactional alerts and advance notification, i.e. six months prior, for accounts due for Re- KYC submission. To further enhance customer convenience, over and above existing digital modes, the Bank introduced a simplified Re-KYC process through Aadhaar-enabled e-KYC authentication.

Collectively, these initiatives reflect the Banks sustained commitment to strengthening internal capabilities, enhancing customer service delivery, improving regulatory compliance and fostering trust through transparent and efficient processes.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

Your Banks Corporate Social Responsibility (CSR) initiatives are rooted in its aim to create material, visible and lasting difference in the lives of underprivileged and marginalised sections of the society. The Bank aims to address identified socio-economic and developmental gaps for such sections of the society through structured and need-based CSR interventions. Guided by its developmental mandate and responsibility towards inclusive growth, the Bank, through its CSR initiatives, seeks to create multidimensional impact over the long-term by implementing focussed direct interventions, while simultaneously playing a catalytic role in fostering socio-economic development of the beneficiaries.

During FY 2025-26, your Bank scaled up its CSR activities in terms of both funding and initiatives, both through direct initiatives as well as in collaboration with accredited implementation agencies, in order to enhance its outreach and the effectiveness of the CSR interventions. The CSR interventions included, but were not limited to, collaborative long-term funding for projects designed to promote income generating activities for tribal and the underprivileged, particularly women, across various states; contributed towards providing improved access to health services; promoting education for children, youth & women; promotion and installation of renewable energy systems; enhancement of livelihood opportunities; advancement of vocational & employable skills and holistic development of villages by undertaking planned interventions.

In FY 2025-26, your Bank sanctioned Rs.145 crore towards select CSR interventions in the Board-approved focus areas such as Education (Skill Development for Sustainable Livelihoods (including entrepreneurship development) and Financial Literacy and Financial Inclusion), Healthcare, water management and Rural Development.

Under the flagship schemes of HOPE (Healthcare Outreach Programme for Everyone) and SEED (Supporting Education for Empowerment and Development), the Bank provided CSR assistance to over 2,000 Government schools and hospitals all over the country.

ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG)

The Environmental, Social, and Governance (ESG) landscape in India is evolving rapidly with increasing regulatory focus on ESG disclosures, higher awareness and changing expectations among stakeholders. This has led to growing importance among organisations to incorporate ESG dimensions in their day-to-day decision-making and activities.

Your Bank has adopted a structured and integrated approach to ESG practices, reflecting its commitment to responsible banking and sustainable value creation. Recognising the importance of adopting sustainable and responsible business practices, your Bank has also been taking several initiatives to improve its ESG performance. The Banks approach to ESG-related aspects of its operational conduct is enshrined in its ESG policy, which is also available on its website (https://www.idbi.bank.in/pdf/ESG-Policy.pdf). The Banks ESG Policy acts as an overarching framework for guiding the business activities of the Bank and has been designed in consonance with the applicable national laws/ regulations with the aim of positioning the Bank as an ESG-compliant entity through its activities.

The Bank has been working towards incorporating environmental considerations into its operations by adopting energy efficient lighting solutions and digital and paper-light processes and encouraging adoption of energy-saving measures across its premises, among other measures. Further, the Bank has been promoting sustainable financing by focussing on lending to green projects such as renewable energy projects. The Banks social responsibility agenda focuses on advancing financial inclusion through small savings accounts, micro insurance and micro pension products, priority sector lending to MSME and agriculture sectors, support to Self-Help Groups (SHGs), and targeted initiatives for underserved and vulnerable communities. The Bank also undertakes impactful Corporate Social

Responsibility (CSR) programmes in the areas of education, healthcare, skill development and community infrastructure, among other areas, thereby contributing to inclusive socio-economic development. The Bank is also committed to ensuring a diverse and inclusive workforce and has been taking concerted efforts to ensure a safe, healthy work and harassment-free environment. From a governance perspective, your Bank follows robust policies and practices relating to risk management, ethical conduct, regulatory compliance, transparency and accountability. To reinforce its long-term focus on sustainability, your Bank engages with its stakeholders on an ongoing basis through various channels to align with their expectations and the evolving operating environment.

The Bank has made measurable progress in strengthening its ESG performance as evidenced by transparent and enhanced reporting and disclosures that have been reasonably assured by independent third party. In compliance with the extant regulatory norms, the Bank has been publishing its Business Responsibility & Sustainability Report (BRSR) since FY 2022-23 as a part of its Annual Report to disclose its performance against the nine principles under the National Guidelines on Responsible Business Conduct (NGRBC) developed by the Ministry of Corporate Affairs, GoI. The Bank has obtained reasonable assurance for its BRSR Core disclosures since FY 2024-25 in compliance with the extant regulatory norms. The Bank also publishes an ESG Databook on an annual basis on its website (https://www.idbi.bank.in/ pdf/ESG-databook.pdf), which provides granular information on ESG-related aspects to a wider group of stakeholders in a transparent and easily comprehensible manner.

Your Bank has also been voluntarily participating in the Corporate Sustainability Assessment (CSA) conducted by the global agency, viz. S&P Global, since 2023. The initiatives implemented by the Bank in recent years have contributed to a consistent improvement in its ESG score.

In view of the growing focus around ESG-related matters, your Bank continues to remain committed towards improving its ESG performance as also imbibing an ESG-centric culture across its various functional areas.