Indian Bank Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS

1. Global Economy

• The global economy in 2025 showed resilience amid trade shifts and geopolitical tensions but faced headwinds from weakening demand and rising tariff pass-through, moderating future growth. Short-term support from inventory build-up and easier financial conditions faded. Economic activities in major economies exhibited reducing demand for trade and commodities.

• Global inflation in 2025 moved closer to central banks targets, with easing core inflation but shown persistent divergence across economies. Headline inflation edged up slightly due to pressures in some advanced economies, while easing in Emerging Market and Developing Economies (EMDEs). Services inflation remained elevated relative to goods, though moderating alongside softer labor market conditions.

• In this backdrop, major central banks face difficult tradeoffs between containing inflation and supporting growth, with monetary policy normalization expected to remain gradual and data-dependent.

• Global trade in 2025 was marked by tariff-driven distortions, with front-loaded imports early in the year followed by a slowdown in trade flows and rising divergence across countries depending on tariff exposure and export diversification. The IMF projected trade growth to slow from 5.1% in 2025 to 2.8% in 2026, before improving to 3.8% in 2027.

• The global outlook has weakened amid escalating geopolitical tensions and Middle East-led supply disruptions, with the IMF projecting growth at 3.1% in 2026 and 3.2% in 2027 (down by 0.2 percentage points), while global inflation is expected to rise to 4.4% in 2026 before moderating to 3.7% in 2027. Overall, risks remained tilted to the downside, particularly for EMDEs facing higher vulnerability to debt, commodity dependence and geopolitical fragmentation.

2. Indian Economy

• Indias GDP growth for Q3 FY26 stood at 7.8%, marking the first release under the revised base year (2022-23). Festive demand and GST-related support boosted economic activities. The new series incorporates improved datasets and methodology, offering a more accurate and contemporary view of economic performance.

• Amid persistent global uncertainty, Indias economy remained broadly resilient in FY26, as reflected in high-frequency indicators, though early signs of moderation emerged towards the end of the year. Some of the high-frequency indicators pointed to continued economic resilience in FY26: e-way bill generation rose to 156 Crore (19.5%), while PMIs remained expansionary despite moderation. Core sector growth slowed to 2.6% in March 2026 amid supply disruptions.

• Inflation remained benign in FY26, despite intermittent upward pressures. Retail inflation moderated to 2.1% in FY26 from 4.6% in FY25, largely driven by food price movements, with inflation across CPI subcategories remaining within the tolerance band. Food inflation outlook remains comfortable supported by robust rabi production, adequate reservoir levels, and comfortable foodgrain buffer stocks, although possible El Nino conditions pose a risk going forward.

• On the external sector front, exports grew 0.9% while imports rose 7.7% in FY26, leading to a wider merchandise trade deficit. The current account deficit remained moderate at around 1% of GDP, supported by services exports and remittances, despite intermittent widening during the year.

• The West Asia conflict posed a key external risk, especially for energy-intensive sectors like fertilizers and chemicals, though timely policy measures helped limit immediate spillovers. Looking ahead, India enters FY27 with strong underlying fundamentals, even as geopolitical tensions and commodity price volatility cloud the near-term outlook. Real GDP growth is projected at 7.6% for FY26, reflecting broad- based strength in economic activity.

3. Union Budget FY26

• The Union Budget 2026-27 is a balance between fiscal discipline and growth. The Budget prioritized agriculture, MSMEs, investment, and exports in line with the three Kartavyas- (i.e., i. Accelerate and Sustain Economic Growth ii. Fulfil Aspirations of People and iii. Ensure Inclusive Access).

• The Budget has Total Expenditure Outlay of Rs.53.47 lakh Crore including Revenue Expenditure of Rs.41.25 lakh Crore and Capital Expenditure (Capex) of Rs.12.22 lakh Crore. In this budget the Total Receipts (Excluding Borrowings) estimated at Rs.36.52 lakh Crore and the fiscal deficit set at 4.3% of GDP, with gross borrowing kept at Rs.17.28 lakh Crore. Debt to GDP ratio pegged at 55.6%.

• The large borrowing program is expected to keep G-Sec yields elevated, affecting banks treasury portfolios, while the lower deficit reinforces fiscal credibility, supports sovereign ratings, and helps contain overseas borrowing costs for Indian banks.

• The capital expenditure outlay has been raised to Rs.12.2 lakh Crore, supplemented by Rs.2 lakh Crore in interest-free loans to states and investments in logistics infrastructure, expanding opportunities for project finance, working capital lending, and treasury investments through CPSE asset monetization via REITs.

• A High-Level Committee on Banking Reforms has been constituted to align the sector with Viksit Bharat, with potential recommendations on governance, ownership, and capital structures that could reshape competitive dynamics and require banks to scale up to global benchmarks.

• To strengthen MSME equity financing, a Rs.10,000 Crore SME Growth Fund and a Rs.2,000 Crore top-up to the Self-Reliant India Fund have been announced, reducing excessive reliance on debt and helping improve borrower balance sheets and credit quality.

4. Monetary Policy

RBI MPC in its latest April 2026 meeting, kept the repo rate unchanged at 5.25% and retained a neutral stance, amid heightened geopolitical risks from the U.S.-Iran conflict, elevated crude prices, and global supplychain uncertainties.

To support liquidity, the RBI also reduced the Cash Reserve Ratio (CRR) by 100 basis points during FY26, easing funding conditions for banks and supporting credit transmission.

• In parallel, the RBI undertook measures to ease regulatory burden and improve ease of doing business, including consolidation of supervisory instructions and simplified MSME on boarding on TReDS, reducing compliance and procedural requirements.

• The capital adequacy framework was rationalized through proposals to allow inclusion of quarterly profits in CRAR computation without linkage to NPA provisioning and the withdrawal of the Investment Fluctuation Reserve (IFR) requirement, effective April 2026.

• To strengthen MSME financing, the RBI enhanced the collateral-free loan limit from Rs.10 lakh to Rs.20 lakh, supporting credit flow to smaller enterprises and reducing reliance on informal financing.

• Money market reforms included expanded participation in the term money market and higher borrowing limits for Standalone Primary Dealers, aimed at improving market liquidity and depth.

• For foreign portfolio flows, the RBI removed the VRR cap of Rs.2.5 lakh Crore, bringing investments under the General Route, enhancing flexibility for foreign investors.

• On customer protection, the RBI introduced a framework to compensate customers up to Rs.25,000 for small-value fraudulent digital transactions, strengthening trust in digital payments.

5. Banking Sector:

The Indian banking sector closed FY26 on a strong footing, supported by robust credit and deposit growth, accommodative liquidity conditions, and a series of enabling regulatory measures by the Reserve Bank of India (RBI), as mentioned in previous section. The operating environment during the year was shaped by volatility in capital markets, rising overseas borrowing costs, currency pressures, and sustained domestic credit demand.

• Aggregate deposits of Scheduled Commercial Banks (SCBs) grew by 13.5% YoY in FY26, marking the fastest pace in nearly two years. Growth was supported by a shift towards bank deposits amid volatility in equity and other asset classes. Total deposits stood at around Rs.262 lakh Crore as on March 31,2026.

• Bank credit expanded by about 16.1% YoY, outpacing deposit growth. Credit demand was supported by a shift from market-based to bank financing amid elevated yields and currency depreciation. Retail credit remained resilient, while corporates increased reliance on bank funding for investments and delayed market issuances. Total credit stood at Rs.214 lakh Crore as on March 31,2026.

• Lending and deposit rates moved in line with evolving liquidity conditions and policy dynamics. The Weighted Average Lending Rate (WALR) on fresh rupee loans decreased by 95 bps between March 2025 and March 2026, while the Weighted Average Domestic Term Deposit Rate (WADTDR) moderated by 65 bps during the same period. The sharper decline in lending rates relative to deposit rates indicates effective transmission of policy easing, with implications for margin compression.

• Margin pressures emerged due to rapid policy rate transmission, moderation in CASA and higher reliance on wholesale funding. Banks with stronger liability franchises and liquidity buffers remained better positioned.

• Liquidity conditions remained uneven during the year, shifting from surplus to intermittent deficits due to government tax outflows and strong credit demand. Tightness intensified towards March 2026, when the system recorded its first deficit of calendar year 2026. The RBI responded through open market operations, variable rate repo auctions, and forex interventions to stabilise liquidity.

• Asset quality improved further, supported by better underwriting and resolution mechanisms. The GNPA ratio declined to 1.9% in December 2025 from 2.4% a year earlier, with broad-based improvement across sectors.

• The Insolvency and Bankruptcy Code (IBC) continued to support resolution of stressed assets. Ongoing reforms are expected to improve recovery efficiency and strengthen credit discipline.

• The near to medium-term outlook for the Indian banking sector remains positive, supported by healthy credit growth driven by regulatory easing, corporate capex revival, and sustained retail demand. Deposit growth may moderate but stay above historical trends. Margins could face near-term pressure, with improvement expected from H2 FY27. Asset quality is likely to remain stable, supported by structural reforms and steady economic conditions.

Year Ahead

Global growth is expected to remain modest, downside risks persist, particularly for emerging economies as FY27 unfolds amid a fragile global backdrop marked by geopolitical risks, volatile commodity prices, and cautious monetary policy normalization.

India enters FY27 with relatively strong macroeconomic fundamentals. Domestic demand, supported by consumption resilience, public capex, and a gradual revival in private investment, is expected to anchor growth. Nevertheless, external headwinds may weigh on industry and the external sector. Inflation is likely to remain manageable but sensitive to food and energy shocks, while the banking sector is expected to support growth with healthy credit expansion, even as near-term margin pressures persist.

6. DETAILED BUSINESS OVERVIEW

• During the year ending 31.03.26 (Mar26), the Bank recorded robust growth across key business parameters. Global Business expanded by 12.8% YoY, reaching Rs.14,94,839 Crore as on 31.03.26 as compared to Rs.13,25,294 Crore on 31.03.25. Domestic Business also demonstrated strong momentum, growing by 12.61% to Rs.14,06,768 Crore, up from Rs.12,49,249 Crore in the previous year.

• Total Global Deposits registered a 12.3% YoY increase, rising to Rs.8,27,726 Crore as on 31.03.26 from Rs.7,37,154 Crore a year earlier. Domestic Deposits grew in line with the overall trend by 12.3%, reaching Rs.7,89,283 Crore compared to Rs.7,02,966 Crore as on 31.03.25. Overseas Deposits also recorded healthy growth of 12.5%, amounting to Rs.38,443 Crore as on 31.03.26 compared to Rs.34,188 Crore as on 31.03.25.

• Savings Bank Deposits stood at Rs.2,69,098 Crore as on 31.03.26, reflecting a 10.6% YoY growth over Rs.2,43,224 Crore as on March 2025. CASA Deposits increased by 10.9% YoY to Rs.3,13,548 Crore, compared to Rs.2,82,854 Crore in the previous year. The CASA ratio remained at 37.88% at the global level and 39.67% for domestic operations.

• Total Term Deposits witnessed a growth of 13.2% YoY, reaching Rs.5,14,178 Crore as on 31.03.26 as against Rs.4,54,300 Crore as on 31.03.25.

• Global Advances grew by 13.4%, rising to Rs.6,67,113 Crore in March 2026 from Rs.5,88,140 Crore in the previous year. Domestic Credit expanded by 13.0% YoY, standing at Rs.6,17,485 Crore compared to Rs.5,46,283 Crore as on 31.03.25. Notably, Standard Advances registered a growth of 14.7% YoY, reflecting improvement in asset quality.

• The Banks Global Credit-Deposit Ratio stood at 80.60%, indicating efficient deployment of resources while maintaining a prudent liquidity position.

6(a) DOMESTIC DEPOSITS

• During FY26 domestic deposits grew by 12.28%, CASA grew by 10.88% and CASA Deposits to total Deposits Ratio stood at 39.67% as on 31.03.26.

• Domestic CASA increased by 10.88% (YoY), of which Current Account grew by 12.36% and Savings grew by 10.64% on YoY Basis.

• Under Savings Bank, Individual deposits grew by 8.58%, Govt. Deposits grew by 20.62% and Institutional deposits de-grew by 1.18%, NRI deposit grew by 11.19 %, FI SB Segment grew by 18.31% on YoY basis.

• Term Deposits grew by 14.38% of which Retail and Bulk Term Deposits grew by 12.65% and 18.91% respectively. Individual RTD segment grew by 8.68% on YoY basis.

Strategies adopted in FY26

Segmented Focus: The Liability Vertical has been remodeled for driving business on a segment basis viz., Government, Institutions, Individuals, NRI and FI.

Customer Acquisition

• In FY26, the Bank has opened 55.24 Lakh SB account with balance of Rs.16192 Crore at an average of 3.47 account per day per branch. During the same period in FY25, the Bank opened 53 Lakh account with balance of Rs.11545 Crore at an average 3.28 account per day per branch. In Q4 of FY26, alone the Bank has opened 12.74 Lakh SB accounts with balance of Rs.4703 Crore. (Account opening Growth- 4.21% YoY)

• Total current accounts opened during FY26 were 1.48 lakh with average balance improved to 2.64 lakh from 1.88 lakh during last year.

• As on Mar26, the average balance of Normal Savings Bank excluding BSBD has been improved from 0.30 lakh to 0.41 lakh.

• The Bank has opened 3.04 lakh salary accounts in FY26 witnessing a growth of over 56% as against previous year of 1.95 lakh salary accounts.

Revival of DEAF and Inoperative Accounts

• During FY26, the Bank revived 33.62 lakh accounts having balance of Rs.4,684.72 Crore from inoperative to operative status.

• Total 61,993 accounts amounting to Rs.322.14 Crore in DEA-Fund were revived during FY26.

Government Business (Resources & Government Relationship (R&GR) Cells)

The Bank has expanded R&GR cell by adding 2 new R&GR cells at Hyderabad & Amravati during FY26. Now, the Bank has 20 R&GR Cells at all important State Capitals for mobilizing resources from Government Departments offering tailored products, Payment Solutions, Dashboards etc.

• The Bank has opened 33 new SNA accounts during FY26, taking total no. of accounts to 340 with balance of Rs.14568 Crores as on 31.03.26.

• R&GR cells contributed Rs.35881 Crore (NTB Rs.8589 Crore and ETB Rs.27292 Crore) accounting for 55.45% of the total government CASA business of the bank.

• The Bank has opened 3434 NON-SNA accounts during 2025-26 with a balance of Rs.5948 Crore as on 31.03.26.

• The Bank has provided 195 customized Fintech solutions to various Government Department/ Institutions. Out of which 52 Fintech Solution were provided during FY26.

• Total CASA business of the Bank from Government Sector as on 31.03.26 stands at Rs.64397 Crore (Rs.8902 Crore in CA & Rs.55495 Crore in SB) with YoY growth of 21.98%.

NRI Vertical:

• The Bank has registered a YoY growth of 11.19 % in NR SB and 26.92 % under NR Retail Term Deposits during the year.

• Bank has launched dedicated 24*7 call centres exclusively for NRI Customers.

• Training organized for NR Centric branch employees on knowledge and customer service.

Ind-bank - Global Support Services Limited (IGSSL)

• Total 535 FOS Personnel of IGSSL were deployed across 45 zones under 9 FGMs for improving volume and value of NTB customers acquisition and mobilised Rs.1351 Crore during FY26.

6(b) RETAIL CREDIT:

				(Rs. in Cr)
Retail	31.03.25	31.12.25	31.03.26	YoY (%)
Home Loan (incl. Mortgage loans)	74480	82362	84450	13%
Mortgage Loans	10847	13131	13175	21%
Auto Loan	11536	15540	16153	40%
Educational Loan	4503	4480	4297	-5%
Personal Loan	7288	6706	6502	-11%
Jewel Loan (Non-Priority)	9706	16338	18527	91%
Other Retail Loans	11584	10766	11468	-1%
Total	119097	136192	141396	19%

During FY26, Rs.76,753 Crore Retail Loans were sanctioned vis-a-vis Rs.55,414 Crore of sanctions during FY25.

Bank has taken the following initiatives during FY26 for the growth of Retail Assets:

• Bank has organized the Thematic Retail Credit Campaign to drive demand and achieve targets from July25 to Mar26. As a result of these Credit Campaigns launched during the period, the Bank achieved Rs.47,474 Crore (92.90%) of the total target of Rs.51,100 Crore.

• Implementation of Digital Document Execution (DDE)- The Bank introduced Digital Document Execution in collaboration with NeSL across multiple loan products viz., Home Loan, Education Loan, Gold Loan, PM Surya Ghar, and other loans. The functionality is also implemented across all digital journeys of Home loan, Vehicle loan, Jewel loan, Rooftop Solar loan, Staff OD & Staff Vehicle loan, Education loan and credit facilities against Term deposits.

• This initiative has enabled seamless digital documentation with e-stamping, eliminating the need for physical branch visits, and significantly improved customer convenience and processing efficiency.

• Integration of Document e-Verification & Archival and Asset Management Centre (DAMC) Module with Digital Journeys. The DAMC module is integrated across all digital lending journeys, enabling: Automatic submission of DAMC approval requests post-sanction. Seamless linkage with document execution and loan account creation through the Digital Lending Platform.

• The NACH mandate facility is made live for Housing Loans and Vehicle Loans to ensure seamless EMI repayment to improve collection efficiency, reduce instances of SMA slippages, consequently improve borrower CIC Score in order to strengthen repayment discipline and overall portfolio quality.

6(c) AGRICULTURE

• Agricultural credit of the Bank increased by 11.28% from Rs.1,37,627 Crore as on 31.03.25 to Rs.1,53,150 Crore as on 31.03.26.

• The Bank recorded IBPC issuances of Rs.23,100 Crore in FY26. The Agri-Credit, inclusive of IBPC, achieved a YoY growth of 28.06%.

• This marked the first IBPC issuance by the Bank in the past ten years.

Agricultural Disbursement:

• Under Ground Level Credit Flow to Agriculture (GLC), farm loans to the tune of Rs.1,54,804 Crore were disbursed during FY26 as against the target of Rs.1,42,138 Crore.

• Of the above, Rs.75,529 Crore was disbursed to 39.89 Lakh Small and Marginal farmers.

Performance under RBI mandatory target under

Priority Sector Advances in FY26

• Priority Sector Advances were at Rs.2,14,943 Crore as on 31.03.26, contributing 41.46% of Adjusted Net Bank Credit (ANBC) as against the mandatory target of 40%.

• Agriculture Credit under priority sector was at Rs.96,191 Crore as on 31.03.26 and the percentage to ANBC stood at 18.55% as against the mandatory target of 18%.

• Lending to SF/MF stood at Rs.53,112 Crore as on 31.03.26 and constituted 10.24% of ANBC as against the mandatory target of 10%.

• Lending to Weaker Sections stood at Rs.71,586 Crore as on 31.03.26 and constituted 13.81% of ANBC as against the mandatory target of 12%.

• Lending to MSE-Micro Enterprises stood at Rs.58,256 Crore as on 31.03.26 and constituted 11.24% of ANBC as against the mandatory target of 7.50%.

• Lending to Non-Corporate Farmers stood at Rs.88,175 Crore as on 31.03.26 and constituted 17.01% of ANBC as against the mandatory target of 14%.

Credit flow to Self Help Groups:

• The Bank has been pioneer in SHG linkage and it was the 1^st Bank to fund SHG way back in the year 1989. The outstanding credit to SHGs stood at Rs.22,748 Crore covering 5.03 lakh SHGs as on

31.03.26. During the current financial year, the Bank disbursed Rs.17,800 Crore to 3.13 Lakh SHGs (34.43 Lakh members).

• The Bank surpassed the Target set by National Rural Livelihood Mission (NRLM) under both Disbursement Rs.14,886 Crore and Outstanding Rs.22,323 Crore for FY26 as against the targets of Rs.10,779 Crore and Rs.11,388 Crore respectively.

Lakhpati Didi

• In line with the Government initiatives, the Bank launched a specific tailor-made products under "Lakhpati Didi" for financing individual women members for taking up individual Agri / MSME business enterprises. During FY26, Bank has financed 19,527 women led enterprises amounting to Rs.280 Crore. The Bank assisted 37,458 women led enterprises and disbursed Rs.494 Crore under the scheme.

• The Bank has been adjudged as the 2^nd Best Performer among PSBs under "Lakhpati Didi Scheme" for FY26.

Microsate Branches:

• Bank has opened 2 new Microsate Branches during FY26. As on 31.03.26, total 59 Microsate Branches - Specialized branches available for focused lending under SHG and the outstanding in these branches constitutes 20% of total SHG portfolio of the Bank. These branches serve as One Stop Shop - providing credit as well as credit plus services like training, maintaining accounts/ books etc. During FY26, credit amounting to Rs.3,519 Crore was extended to 44,134 SHGs through the Microsate Branches. The total outstanding advances of these Microsate Branches stood at Rs.4,564 Crore covering 66,469 SHGs as on 31.03.26.

Weaker Section Advances:

The Bank has been continuously surpassing the mandatory advance target set for the weaker sections which includes Small and Marginal Farmers, Artisans, Village and Cottage Industries, Scheduled Castes and Scheduled Tribes, Self Help Groups, etc.

• Credit to Weaker Sections stood at Rs.71,586 Crore as on 31.03.26, which is 13.81% of ANBC as against stipulated norm of 12%.

• Observance of SC/ST and Minority Credit Campaigns: Special campaigns were conducted on quarterly basis for improving credit to Minorities and SC/STs beneficiaries.

• Credit to SC/ST and Minority beneficiaries under priority sector stood at Rs.7,178 Crore and Rs.19,223 Crore respectively as on 31.03.26.

6(d) MICRO, SMALL AND MEDIUM ENTERPRISES (MSME)

• During the year, Bank extended credit assistance to 10.95 lakh MSME units, with the MSME loan book standing at Rs.1,09,580 Crore as on 31.03.26.

• MSME loan book recorded a YoY growth of 16.39% as on 31.03.26, compared to 11.92% as on 31.03.25. This reflects a significant improvement over growth achieved during FY25.

• Lending to Micro Enterprises constitutes 11.24% of ANBC as against the mandatory target of 7.50% of ANBC as on 31.03.26.

• Asset quality in the MSME portfolio showed significant improvement with reduction of NPA% from 7.93% ( Rs.7,470 Crore) as on 31.03.25 to 4.06% ( Rs.4,450 Crore) as on 31.03.26.

New Initiatives undertaken:

• Bank has implemented the Advanced Analytics Scoring Model "SLICE" (SME Lending Integrated Credit Engine) to evaluate MSME borrowers with exposures ranging from Rs.50 lakh to Rs.5 Crore. The model leverages advanced data-driven techniques to provide more accurate ratings.

• Implementation of Propensity Model: Analytical model to identify existing current-account customers with MSME lending propensity over the next 3-12 months.

• Inked MOU with fintech M/s Perfios to generate prequalified MSME leads to branches for strengthening the credit sourcing.

Digital Journeys:

• Digital journeys have been launched for all MUDRA variants viz., Shishu, Kishore, Tarun & Tarun Plus, PMSVANidhi (both Term Loan & Credit Card)

• Revamped Auto Renewal & Enhancement Journey launched for MSME loans up to Rs.20.00 lakh.

Other Major New Initiatives taken during FY26:

• IND MSME DIGI (New Credit Assessment Model - NCAM) was extended to cover loans up to Rs.5 Crore and 12,339 accounts amounting to Rs.2,558 Crore portfolio sanctioned without delinquency.

• The Bank launched MSME Customer Application,

Iivd Rs. a one-stop solution for all banking requirements of MSMEs. Since its launch, the app saw 91,000 downloads, 9,00,466 transactions of Rs.9,934 Crore value.

Relationship Management (RM) Model:

• The Bank rolled out a dedicated RM Model across 500 high-potential centers to provide personalized, end-to-end engagement for MSME clients.

• RM App - "Ind Connect" was launched to digitally empower RMs with client profile access and management tools.

Flagship Campaign - MSME RISE:

• MSME RISE was launched with the twin objective of garnering fresh MSME business through NTB customers and expanding business through Existing- to-Bank (ETB) customers from 04.06.25-31.03.26.

• Proposals worth Rs.8,867 Crore were sanctioned during the campaign period of which Rs.4,602 Crore were sanctioned to NTB customers.

• Secured Lending has grown to 43% for FY26 from 38% in FY25.

6(e) CORPORATE CREDIT

• Corporate Credit of the Bank stood at Rs.2,13,359 Crore as of Mar26 constituting 34% of the overall domestic credit of the Bank. During FY26, Corporate Credit increased by 9% on YoY basis. 7 Large Corporate Branches & 31 Mid Corporate Branches located at different centers with high business potential cater to the needs of Corporate Customers.

• Focus is on Emerging & designated Champion sectors viz., Data Center, Chemical, Pharma, Tourism, Hospitality, Defence, Oil & Gas, Electric Vehicles, Renewable Energy, to add value to the credit portfolio and achieve growth. Special Focus is also on other infrastructure like solar module manufacturing, City Gas Distribution (CGD), smart metering, and cash flow-based lending.

6(f) OVERSEAS CREDIT

Bank has three foreign branches located at Singapore, Colombo and Jaffna and one IFSC Banking Unit (IBU) at GIFT City, Gandhi Nagar, Gujarat. Total outstanding Advances (gross) of the foreign branches (including IBU) as on 31.03.26 was Rs.49,628 Crore as against Rs.41,857 Crore a year ago with a YoY growth of 18.57%.

6(g) FOREX BUSINESS

• Merchant Foreign Exchange turnover of the Bank increased by 30.1% QoQ and 21.7% YoY amounting to Rs.1,04,375 Crore during Mar26.

• Despite global headwinds, the Banks export credit portfolio registered a 2.3% QoQ and 2.0% YoY growth, reaching Rs.2,927 Crore in Mar26.

• IND Trade NeXT - Banks Digital Customer Enterprise (CE) portal was introduced for corporate customers to initiate Trade Finance and Forex transactions online. It offers a wide range of forex services across import, export, remittances, and guarantees with 24/7 access. The platform removes the need for branch visits and provides real-time transaction tracking.

6(h) NON-RESIDENT BUSINESS

NRI deposits portfolio reached to Rs.17,687 Crore as on 31.03.26 as compared to Rs.14,463 Crore registering a YoY growth of 22.29%. The growth is one of the highest in the banking industry.

Major initiatives for NRI Business during FY26

1. The Bank introduced three NRE SB variants for HNIs, offering a host of privileges like access to lounges at domestic and international airports, accident insurance, airport pick-up and drop. Bank also launched a Recurring deposit with Flexible Monthly instalment.

2. Bank launched an API integrated Speed Remittance Platform for lightning-fast remittance from abroad and entered into tie up with 3 Exchange Houses from Middle East for the same.

3. 24 x 7 Client support centre with International Toll- free Numbers for NR customers from nine countries was launched.

4. Bank collaborated with NoRKA (Non-Resident Keralites Affairs) Roots, the NRI Welfare set-up of Govt. of Kerala and addressed would-be NRIs in the pre-departure training sessions conducted by NoRKA Roots.

5. IND NR Connect a get-together with Non-Residents held across the country with huge customer participation.

6(i) FINANCIAL INCLUSION

Pradhan Mantri Jan Dhan Yojana (PMJDY) Accounts:

• As of Mar26, Bank had a total of 246.52 lakh PMJDY Accounts. The Balance outstanding in PMJDY accounts as of Mar26 was Rs.14,471 Crore with a YoY growth of 18%. The average balance per PMJDY accounts in the Bank was Rs.5,755, which was notably higher than the industry average of Rs.5,269.

• The Bank has consistently outperformed its targets across all social security schemes.

• Under PMJDY, Bank has achieved 11.23 lakh accounts against the target of 10.85 lakh, registering 104% achievement.

• Under PMJJBY, Bank has achieved 21.01 lakh enrolments against the Mar26 target of 19.17 lakh, registering 110% achievement.

• Under PMSBY, Bank has achieved 28.12 lakh enrolments against the Mar26 target of 26.19 lakh, registering 107% achievement.

• Under APY, Bank has achieved 6.05 lakh enrolments against the target of 5.83 lakh, registering 104% achievement. The Average Account Per Branch (AAPB) was 104 against the target of 100.

Cumulative Enrolments of Key FI Parameters:

	(Numbers in Lakh)
Name of the Scheme	Mar25	Dec25	Mar26
PMJDY	235.29	245.59	246.52
PMJJBY	85.52	103.71	109.15
PMSBY	190.81	216.28	223.31
APY	44.82	49.78	51.12

Market Share in Social Security Schemes PMJJBY & PMSBY compared to industry:

Name of the Scheme	Mar25	Dec25	Mar26	Improvement in bps (YoY)
PMJJBY	3.64%	3.95%	4.02%	+38
PMSBY	3.76%	3.86%	3.88%	+12

BC Network:

• The Bank has 20 Corporate Business Correspondents (CBCs) and 17,032 BCs as of Mar26 as compared to 14,667 as on Mar25. During FY26, Bank has deployed 2,365 new BCs.

Skill Development and Financial Literacy:

• INDSETI (Indian Bank Self Employment Training

Institute): During FY26, 42,593 candidates were trained against the target of 37,600 (Achievement-113%) through 1,386 programmes.

• Financial Literacy Centers (FLC) camps were conducted on various aspects of financial literacy viz., modes of operation and benefits of bank accounts, social security schemes, digital banking, banking products, cyber-security, etc. During FY26, 44 FLCs have conducted 4,513 camps which were attended by 2,29,655 participants.

• Centre for Financial Literacy (CFL): A total of 45,657 camps have been conducted by 142 CFLs during FY26 which were attended by 15,58,592 participants.

Awards/ Accolades:

S. N.	Campaign	Period	Achiv. %	Award Qualified for
1	APY Premier League	1st May25 - 15th June25	103.86%	APL Excellence Cup
2	APY Trendsetter Campaign	16th June25 - 2nd Aug25	104.68%	APY Visionary Trendsetter
3	APY Leadership Pinnacle Campaign	3rd Oct25 - 30th Nov25	115%	Par Excellence Leadership Award

Indian bank received SKOCH award under 4 BFSI Gold category for IB SAATHI initiative-BC Management application

6(j) BANCASSURANCE & MUTUAL FUND

• The Bank earned an income of Rs.195.39 Crore through Bancassurance & Wealth Management business in FY26 as against Rs.180.58 Crore in FY25.

• Bank has tie-up with M/s FISDOM for Mutual Fund distribution and M/s IBMBS for Mutual Fund, Demat, & Trading services, both available through our mobile and net banking platforms.

• The Bank has its Board approved Policy on Bancassurance and Wealth Management that defines the manner of customer solicitation, servicing and grievance redressal for insurance and wealth management products.

• Automation of Bancassurance vertical by introduction of Digital Insurance Platform (ISNP certified) with the aim to achieve 100% digitisation of this channel. Presently, all journeys other than Life Insurance are live on Banks Digital Insurance Platform.

6(k) GOVERNMENT DEPOSIT/SAVINGS SCHEMES SUKANYA SAMRIDDHI SCHEME

14,486 new accounts were opened during FY26, taking the total number of accounts to 1,89,731. The amount collected during FY26 was Rs.40.32 Crore and the outstanding amount was Rs.2103.26 Crore.

PUBLIC PROVIDENT FUND

32,152 new accounts were opened during FY26, taking the total number of accounts to 7,16,427. The amount collected during FY26 was Rs.59.08 Crore and the outstanding amount was Rs.12,988.88 Crore.

SENIOR CITIZEN SAVINGS SCHEME (SCSS)

43,639 new accounts were opened during FY26, taking the total number of accounts to 2,86,239. The amount collected during FY26 was Rs.3,089.64 Crore and the outstanding amount was Rs.12,524.28 Crore.

KISAN SAVINGS CERTIFICATE

4,887 new accounts were opened during FY26, taking the total number of accounts to 8,213. The amount collected during FY26 was Rs.37.30 Crore and the outstanding amount was Rs.63.27 Crore. KVP was introduced on 11.08.23. NATIONAL SAVINGS CERTIFICATE VIII ISSUE (NSC) 11,071 new accounts were opened during FY26, taking the total number of accounts to 15,208. The amount collected during FY26 was Rs.148.06 Crore and the outstanding amount was Rs.186.39 Crore.

7. BRANCH NETWORK AND EXPANSION

Domestic Branch Network of the Bank stood at 6001 branches as on 31.03.26, comprising of 2011 Rural, 1605 Semi Urban, 1195 Urban and 1190 Metropolitan branches. Apart from the above, the Bank has 3 overseas branches viz., at Singapore, Colombo, Jaffna and an IFSC Banking Unit (IBU) at GIFT City Gandhi Nagar, Ahmedabad.

During FY26, the Bank has expanded its branch network by 102 branches, which included 1 Senior Konnect branch (exclusively for senior citizens), 2 Mid Corporate branches, 2 Microsate branches for SHG, 3 Specialized MSME branches, 11 branches opened in Unbanked Rural Centres, 10 branches in Left Wing Extremist districts and 4 branches in North-Eastern Region.

The Bank rationalized 2 branches during the year, towards consolidation of banking outlets.

8. DIGITAL TRANSFORMATION AND ADOPTION

• The Bank has garnered Rs.2.72 lakh Crore of Digital Business in FY26 as against Rs.1.67 lakh Crore during FY25 through 153 Digital Journeys/ utilities/processes.

• Registered more than ~1.6x times growth in Digital Business on YoY basis in FY26 over FY25.

• The Bank surpassed targets for lending under Retail, Agriculture and Digital Liability segments for FY26.

• The Digital Retail Asset business was at Rs.50656.37 Crore, Digital Agriculture business was at Rs.159049.98 Crore and Digital MSME business was at Rs.24052.52 Crore for FY26.

• Under Liability segment, Bank has achieved Rs.36332.07 Crore of digital liability business for FY26, registering ~1.2x times growth on YoY basis.

• Overall Digital Adoption rate stands at 87% (in terms of Accounts) & 78% (in terms of Amount) for FY26.

• Under Retail, Agriculture and MSME Segments, Bank has achieved 92%, 96% & 66% Digital Adoption respectively for FY26.

• Bank is focused on enhancing its mobile banking capabilities to provide customers with a seamless and secure banking experience across devices of their choice. This includes providing enhanced User Interface (UI) and User Experience (UX) UI/UX with Omni-Channel experience having integrated mobile payment solutions, such as UPI, BBPS, Digital marketplace etc. to facilitate quick and convenient transactions. The implementation extends across all channels in both Retail and Corporate Banking, including Mobile Banking, TAB Banking, Kiosks, and Internet Banking.

• Various enhancements have been made under Retail Mobile App Ind Rs. during FY26 such as Integration with Payment Aggregators, Rewards/ Scratch cards and Term Deposit enhancements. Presently, IndSMART app has been enriched with 320+ functionalities.

• The Omnichannel Corporate Mobile Banking App also witnessed various improvements such as Utility integrations, PF integrations, Payment aggregator integration along with TD enhancements for corporates. Ind-SMART mobile app ratings: Play store Rating: 4.4 (reviews: 6L+) App store rating: 4.1 (reviews: 18K+) "IND Engage Hub" - A comprehensive Customer relationship Management solution was implemented with Lead Management, Campaign management and Customer 360 (Retail) modules. The solution is aimed at enhancing customer relationships, boosts efficiency,

As the world is rapidly adopting AI/Agentic AI trends, Bank also implemented solutions (Pilot) such as Automated collections through Agentic AI Voice Bot,

AI powered HR chatbot "Ask HR".

• The Banks SME Lending Integrated Credit Engine (SLICE) is an advanced underwriting framework for MSME loans between Rs.50 lakh and Rs.5 Crore. By combining quantitative analytics with qualitative assessments, and leveraging internal data, credit lending decisions and strengthens portfolio quality in the MSME segment.

• A Generative AI powered conversational Chatbot "Employee Assist" was launched for support of field functionaries for Digital journeys.

^ The bot functionality is being scaled jT across other products and processes L including Retail, Agriculture, MSME,

NBC, Credit Policy, Forex, HR Modules, Legal, IMAGE learning, Inspection and Audit modules. The AI chatbot is also integrated with INDConnect (RM App) for solving queries of Relationship managers.

• 33^ (Virtual Banking experience) is the Banks digital-first platform via the ?=9 upgraded INDSMART App. It caters to customers, preferring minimal branch visits while driving business growth. VBX Wi ... M offers a personalized, tiered approach with four segments: Spark, Vibe, Emerge, and Basic. Major benefits include Virtual RM, Customized debit card, priority service, Robo advisory, etc.

• The Bank drives customer outreach for adoption of new digital offerings through various channels besides conducting internal outreach through employee engagement sessions. The digital adoption for FY26 is 78% with major

• The Bank implemented Cash Management Services (CMS) digital platform to cater to Corporate customers for managing their cash flows more effectively and fund management without Brick & Mortar Banking approach. Presently, 170+ MSME/ Corporate customers are live on the platform utilizing its services.

Cash Management Setvkei

• The Bank implemented Digital Pool buy-out platform to onboard pooled assets in partnership with NBFCs. Fresh pool migration from three new NBFC partners ICICI, ABHFL & Axis, completed successfully amounting to Rs. 1,700 Crore.

• The Bank incorporated various enhancements in its existing chatbot "ADYA" with advanced features. Enhancements made for UI/UX, WhatsApp integration, guided menus, automated voice, view account details, account balance, mini statement through e-mail, apply cheque book, term deposit enquiry, stop cheque payment, Debit card blocking and CIF blocking. Presently Re-KYC facility is being integrated along with CRM platform integration.

• Digital Lending journeys Rs. were successfully migrated to micro-services enabled cloud platform (SP2 to SP3) for achieving scale of operations, with a B robust and resilient system.

• Digital insurance platform is integrated with Internet Banking/Mobile Banking/Omnichannel Platform since August 2024 for sales and servicing of Bancassurance products. Credit Life insurance products through 3 insurance

• More than Rs. Rs. 15,000 Crore digital business was done through RBIHs platform integration with our DLP journeys leveraging services such as PAN validation, LSR, Penny Drop, Milk insights, etc.

BO • Received Golden Peacock Award - for Excellence in Artificial Intelligence for the year 2026. This prestigious recognition is conferred on organizations that .PEACOCK demonstrate outstanding innovation

9. ANALYTICS CENTRE OF EXCELLENCE (ACoE)

The Bank has taken the following key initiatives for improving data quality:

• Implementation of Data Governance framework

• Establishment of Data Governance Policy and SOP on various areas of Data Governance

• Development of dedicated dashboard for tracking Data Quality Index in new and legacy CIFs / accounts

• Creation of accountability and monitoring framework for Data Quality

• Implementation of validation checks in Core Banking system to arrest errors at source.

• Improvement in Data Quality Index (DQI) for new CIF/Accounts from 99.78 in March 2025 to 99.96 in March 2026

• Improvement in DQI for legacy CIF/Accounts of Platinum and Diamond segment customers from 94.94 in March 2025 to 97.34 in March 2026

• To foster a data-driven culture, regular quizzes and webinars on Data Governance are being conducted, along with rewards and recognition for data champions

Initiatives taken to drive Data-driven decision making and Business Intelligence:

• 40+ Data Analytical models developed in the areas of business growth, compliance, risk management, cost optimization, etc.

• 200+ Power BI management dashboards developed to track performance of the Bank in various matrices and KPIs.

• Data support provided to key strategic projects of the Bank such as digital journeys, RM module app, CRM.

Key achievements using data analytical models:

• During FY26, approximately 1.23 lakh accounts were identified as highly probable to become NPA using the SMA proclivity prediction model. Of these, 0.72 lakh accounts (59%) totaling Rs.7,320 Crore were successfully prevented from becoming NPAs through targeted follow up.

• Lead generation related AI/ML models such as Retail Assets Lead net, Churn Prediction, Win-back model, MSME lead generation etc. helped improve Bank business by approximately Rs.10,013 Crore during FY26

• Money Mule identifier analytical model was developed for identification of suspected money mule accounts. 13,254 mule accounts were identified using the Money Mule Identifier model (Predictive)

• Implementation of Data Lakehouse (ongoing Project): As part of Banks data centralization strategy, implementation of Data Lakehouse platform is initiated. This initiative aims to modernize our data architecture, enable unified data storage, enhance regulatory reporting and drive more informed business decisions across Bank. It will serve as foundational component for advanced analytics, AI/ ML use cases and enterprise-wide data governance.

10. CREDIT MONITORING

Credit monitoring entails rigorous oversight throughout the entire loan lifecycle, beginning with a thorough scrutiny of sanction terms and is responsible for maintaining asset quality from initial disbursement until closure. Its core mandate includes preventing fresh slippages and improving upgradation of Fresh NPAs to enhance the portfolio health.

SMA Ratio reduced from 8.06% to 4.73% on YoY basis and 5.04% to 4.73% on QoQ basis. Quality of assets is improving year on year.

• Fresh NPA during FY26 was Rs.4,819 Crore with Slippage ratio of 0.85%. The slippage ratio was brought down from 1.11% of previous year to 0.85% in FY26.

• Bank received Award for Best Data Consistency from TransUnion CIBIL.

• AI based Voice bots were engaged for follow up calls for accounts appearing in SMA-0 (DPD 0-30) up to Rs.1.00 Crore in 7 regional languages, presently Tamil, Hindi, Marathi, Telugu, Malayalam, Bengali, Kannada & English.

• New Early Warning System is implemented to generate 306 alerts derived from various data sources to enhance its robustness.

11. ASSET QUALITY MANAGEMENT

• Asset Quality of the Bank improved as reflected through GNPA & Net NPA of 1.98% & 0.15% as on Mar26 against 3.09% & 0.19% as on Mar25 respectively.

• Provision coverage ratio of the Bank improved to 98.28% as on Mar26 from 98.10% as on Mar25.

• The Bank made recovery of Rs.1,062 Crore during FY26 from NCLT admitted accounts.

• From Bad Debts Written off accounts (AUC), an amount of Rs.2,508 Crore was recovered during the year.

• Under the SARFAESI Act, during the year 5,941 properties with reserve price amounting to Rs.6381.16 Crore brought for sale and 1,292 properties were sold with sale price of Rs.918.83 Crore.

• The Bank actively participated in all National Lok Adalat and organized various Lok Adalats at Mandal level. 37, 671 accounts were settled with settlement amount of Rs.193.06 Crore.

12. CASH MANAGEMENT SERVICES (CMS)

The Banks Cash Management Services (CMS) business recorded strong growth during FY26, driven by expansion in digital transaction banking solutions and deeper engagement with Government and Corporate customers.

• Fee income under CMS grew by 25% YoY to Rs.202 Crore (FY25: Rs.162 Crore)

• CASA balances maintained by CMS customers increased by 68% to Rs.5,600 Crore (FY25: Rs.3,347 Crore).

• Supply Chain finance disbursements grew by 112% to f11,680 Crore (FY25: Rs.5,514 Crore)

• Supply Chain Finance interest income grew by 94% to Rs.134 Crore (FY25: Rs.69 Crore)

As part of Banks digital transformation journey, IND Cash Optima, a next-generation, Cash Management Platform, was launched for Government, Corporate, Institutional and MSME customers. Built on API-first, cloud-native and micro-services architecture, the Platform delivers integrated transaction banking, collections, payments, liquidity management and reconciliation solutions.

Some of the major implementations undertaken during the year include the industry-first budget allocation, utilization and payment tracking system for metro rails, state treasuries, utility companies, municipal corporations, Corporates and Government Departments. Supply Chain Finance programs increased to 32 with new mandates from large Corporates in auto, metals, consumer durables, farm equipment & FMCG sectors.

13. RISK MANAGEMENT

Risk is an integral part of the banking business, and the Bank aims to strike an appropriate trade-off between risk and returns. To ensure sustainable and consistent growth, the Bank has developed a sound Risk Management framework. The Bank undertakes business activities within the defined risk appetite limits and policies approved by the Board of the Bank.

The Board has also constituted a Risk Management Committee (RMC) which oversees the different type of risks. The Bank has put in place various policies to manage the risks, viz., Integrated Risk Management Policy, Credit Risk Management Policy, Asset Liability Management Policy, Policy on Market Risk Management, Operational Risk Management Policy, Internal Capital Adequacy Assessment Process (ICAAP) Policy, IT Risk Management Policy and Climate Risk Management Policy. All the policies are reviewed at regular intervals by Board.

The following specific committees have been constituted to facilitate focused oversight on various risks. (i) Asset Liability Committee (ALCO) (ii) Credit Risk Management Committee (CRMC) (iii) Operational Risk Management Committee (ORMC) (iv) Market Risk Management Committee (MRMC) & (v) New Product Process Approval Committee (NPPAC). These committees work within the overall guidelines and policies approved by the Board.

Credit Risk:

Credit Risk is the possibility of losses associated with diminution in the credit quality of borrowers or counterparties. Losses arises from outright default or reduction in portfolio value. Bank has a comprehensive credit risk architecture, policies, procedures, and systems for managing credit risk in its retail and corporate portfolio. Systems are in place to ensure credit quality and minimise default losses at front and back-end. The factors considered for underwriting of retail loans includes due diligence, income characteristics, banking behaviour, demographics, credit history, loan tenure, loan to Value etc. In addition, multiple credit risk score card models are developed and used to assess different segments of customers based on portfolio behaviour. Selection of borrowers with prime CIC scores at onboarding is adopted by the Bank. In Corporate loans, credit risk is managed by capping exposures and entry barriers based on borrower group, industry, rating grades, facility and country etc. Credit Risk Management is also backed by portfolio diversification, Risk rating, stringent credit approval processes, documentation check, periodic postdisbursement monitoring measures. Robust model is in place to assess industry outlook to decide the negative sector or the industry to be focused for financing.

Variety of stress scenarios beyond the regulatory prescription like macroeconomic / sectoral and other trends are being adopted for stress testing of the portfolio. Portfolio study is being conducted on regular basis to understand the built up stress in portfolio and to initiate corrective measures. Credit portfolio is well diversified in bank, with no single industry having a high concentration. Bank has a conservative and prudent policy for specific provisions on NPAs as well as additional provisions beyond the regulatory prescription for standard assets. Digital lending has emerged as a convenient and quick method for customers to secure loans with just pressing the button. Bank has implemented appropriate measures to manage these risks effectively through proper evaluation of loan eligibility. Business Rule Engines are made robust with integration of APIs to collect information from various sources to assess the risk profile of the borrower. Digital loan portfolio analysis is being conducted on quarterly basis to understand the portfolio behaviour and to introduce corrective measures in the business rule engine.

Credit Review Framework

Under PSB Reforms Agenda - Ease of Access and Service Excellence (EASE) - Banks are mandated to achieve defined action points for improving the credit risk assessment and underwriting aspect. In view of the same and considering dynamic & volatile market environment and plethora of external and internal risk factors inherent in credit proposals, Bank has adopted the Credit Review Framework to strengthen the underwriting process and to categorize risk level of the credit proposals into Low, Medium, High and No-go (Very high) categories. Under this structure, Risk is being quantified based upon matrices on risk factors embedded in seven broad parameters namely Borrower, promoter and group entities, Activity/Industry, Security Coverage, Conduct of facilities, Ratings and compliance position along with subjective parameters. The framework is applicable for loan proposals of Rs.50 Crore and above for corporates and Rs.10 Crore and above for MSME segments providing additional tool/ dimension in processing/ sanctioning.

Asset Liability Management:

Asset Liability Management framework facilitates bank to measure, monitor and control liquidity risk and interest rate risk on its balance sheet. This helps in providing suitable strategies for Asset Liability Management. The Asset Liability Management framework consists of the following key components:

• Liquidity risk management

• Interest rate risk management

• Balance sheet and Basel III liquidity ratios

• Stress Testing and scenario analysis

• Contingency funding plan

Asset - Liability Management aims to achieve two primary objectives as listed below:

Short Term Objective:

• To optimize the Net Interest Margin (NIM) of the Bank

• To provide adequate liquidity

• Managing re-pricing risk

Long Term Objective:

• To maximize the shareholders wealth

Asset Liability Management is the function of Asset Liability Committee (ALCO). It operates under the guidance and supervision of the Board and/or Sub-Committee of Board on Risk Management. It meets at regular intervals to review the interest rate scenario, review of product pricing of deposits and advances, maturity profile of the assets and liabilities, demand for Bank funds, cash flows of the Bank and overall Balance Sheet Management.

Automation of ALM reports is completed for placing the same to Funds and Investment Committee (FIC) on daily basis and also to Asset Liability Committee (ALCO). Bank has also automated the computation process of Interest Rate Risk in Banking Book (IRRBB) as per the RBI guidelines dated February 17,2023.

Market Risk Management:

Market risk is the possibility of loss caused by adverse movements in the market variables. The objective of market risk management is to assist the business units in maximizing the risk adjusted return by providing analytics driven inputs regarding market risk exposures, portfolio performance vis-a-vis risk exposures and comparable benchmarks. Following risks are managed under Market Risk.

• Interest Rate Risk

• Exchange Rate Risk

• Equity Price Risk

The market risk may also arise from changes in commodity prices and volatility. However, Bank does not have any exposure to commodity related markets. Market Risk Management (MRM) Framework includes, Risk Identification, Risk Measurement and Limits, Risk Monitoring & Risk Reporting.

Mid Office monitors treasury operations on day to day basis. A weekly summary note is placed to Chief Risk Officer and to MRMC at least quarterly.

Operational Risk:

Bank has put in place Operational Risk Management Framework (ORMF) to develop a common understanding of Operational Risks across the Bank and inculcate risk culture/awareness ensuring effective governance, identification, assessment, measurement, monitoring and risk controls/mitigation by usage of various Operational risk management tools/techniques. Operational risk is well managed by using appropriate qualitative and quantitative methods, established internal control systems in day to day management processes and adopting various risk mitigating strategies. The risk perceptions in various products/processes are critically analysed and corrective actions, if required, are initiated. Bank has put in place framework for Risk Control SelfAssessment (RCSA) and Key Risk Indicators (KRIs). Risk and control self-assessment is used to identify key operational risk areas and assess the degree of effectiveness of the internal controls. Outcome of RCSA exercise helps in identifying High residual risk areas and build controls to address control gaps. From Control deficiencies identified during the RCSA exercise, KRIs are evolved to monitor and improve the process. KRIs are early warning signals, to monitor operational risks that are reaching beyond acceptable levels.

Loss data analysis is a source of identification of key risks. The inherent risk rating & residual risk rating of operational risk would serve as an indicator in identification of KRI. Key Performance Indicators (KPIs) are also monitored to identify risk indicators that essentially tracks the potential risk drivers affecting the business objectives. Root Cause Analysis of major operational Loss events is done to find out the modus operandi, failed controls and control gaps. Based on the findings, suitable mitigation strategies are designed such as automation of process wherever possible, reiteration of guidelines & sensitization of field functionaries for being alert to avoid such recurrences from the lessons learnt out of the event etc.

Risk officers have been designated in each Zone, Field General Managers Office and Overseas to act as an extended arm of Risk Management Department to bridge between First line of defence and Second line of defence. Primary role of Risk Officers would be to coordinate with Risk Management Department to support and manage various types of risks namely Credit risk, Portfolio monitoring, operational risk, Capital conservation, Assets Liability Management emanating from business units. Suitable training and hands on workshop are arranged for the officers to enable them understand and spread Risk culture in the field.

Model Risk Management Framework is in place covering the Model life cycle such as Model Governance, Maintenance of model inventory, Model identification criteria, Model documentation, Model Risk tiering, Model validation, Model on going monitoring, Model health assessment and Model Risk assessment wherein internal and external Model validation shall be carried out periodically.

Operational Resilience Framework have been designed in line with RBI guidance note on Operational Risk and Operational resilience dated 30^th April 2024.

The objective of operational resilience policy document is to establish a comprehensive and systematic approach to enhance the banks ability to withstand and recover from disruptions, thereby ensuring the continued delivery of important business services to customers, safeguarding the Banks reputation, and fulfilling regulatory obligations.

Information Technology Risk:

Use of Information Technology and Digital Adoption in the Bank has changed the way the Bank conducts its business, carries out its operations and provides customer services. As adoption of the new emerging Information technology is increasing, risks relating to the use of IT is also growing. IT risk refers to the potential for adverse events or consequences resulting from the use, ownership, operation/management of IT systems, applications, data and infrastructures of the Bank.

To Monitor, Assess, Manage & Control IT related risks and to develop the risk culture, Bank has prepared the framework for IT risk management in line with the latest RBIs directions/guidelines. Following new initiatives & measures have been taken and also implemented for managing the IT related risks.

• Separate IT vertical created under Risk Management Department, which is now functional and working for developing/managing the IT risk management frameworks, policies and procedures and is also working for developing the risk culture for assessing & managing IT related risks.

• Bank has also created and published new Information Technology Risk Management Policy, which contains/ defined the role/responsibilities of the three lines of defense, guidelines for IT related risk assessment and methods/model to be adopted.

• New processes have been defined and implemented for Risk assessment of the critical and non-critical IT applications.

• Enhancing the monitoring of the IT related risk by introducing the new KRIs and/or evolving the existing KRIs for IT related verticals.

Climate Risk:

The Bank integrates with the Nations considerations into its product offerings to encourage adoption of environmentally and socially responsible practices by its customers. The Bank is committed to aligning its portfolio of loans and investments with the national level climate and ESG goals. The Bank has well defined Climate Risk Management Policy which defines the short, medium- and long-term strategy for climate risk management aspects in the Bank. The policy aligns implementation of sector- specific de-carbonization strategies, in line with Indias net zero target.

A dedicated green cell is established for adoption and entrenchment of environmentally sustainable business and operational practices and for focus on development of green banking products. The Bank integrates ESG aspects

in credit appraisal, the Bank has ESG scorecards for listed entities to assess the ESG aspects of the borrowers. Green finance is the focus area of the Bank. Accordingly, Renewable Energy & Electric Vehicle are the two sectors identified as Champion sector for credit focus in the Bank. The Bank is raising green deposits and deployment of the same is towards green activities/projects in line with RBI directions. In addition to the green finance eligible sectors as per RBI directions, Bank focuses on Battery Energy Storage Systems (BESS) and Green Hydrogen sector for Green Finance. Green finance portfolio of the Bank has increased by 61% during FY26.

Bank became a member of the Partnership for Carbon Accounting Financials (PCAF), gaining access to expert guidance for estimating financed emissions and aligning its portfolio with net-zero objectives. The Bank has estimated the financed emissions of corporate loan portfolio using PCAF methodology.

Bank has adopted Policy on Green Building and Sustainability Practices for sustainable management of its own operations. Bank also assessed the vulnerability of physical climate risk events to all its branches and offices.

Basel III Capital Regulations:

The Basel III Capital Regulations became effective in India since 1^st April, 2013 and fully implemented since 1^st October, 2021. Common Equity Tier I Capital of the Bank is 16.40%, Total Tier I at 16.40% and Total Capital Adequacy Ratio stands at 17.93% as on 31.03.26. Bank has adequate headroom to raise capital in all forms in case of need. The Basel III capital rules also require an enhanced set of disclosures on the components of Capital Adequacy Ratio (CAR) which are published on quarterly basis on Banks website. Bank is also disclosing leverage ratio, Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR). A holistic capital conservation module is developed by the Bank for monitoring and taking corrective action towards capital conservation.

14. HUMAN RESOURCE MANAGEMENT

1) Manpower Position (Domestic)

The position of manpower in the Bank as on 31.03.26 is as follows:

Category	Total	OBC	SC	ST	Male	Female
Officers	25997	8130	4999	1991	18458	7539
Clerks	12205	4028	2625	617	7750	4455
Sub Staff	1761	419	861	113	1531	230
Full Time Sweepers*	198	20	155	8	151	47
Total	40161	12597	8640	2729	27890	12271

(*Domestic excluding Part Time Sweeper)

2) Recruitment Drive

The Bank has inducted 1801 employees (POs - 319, Specialized officers - 268, Clerk -1208, Sub-staff - 6) during FY26.

3) Welfare measures for SC/ST/OBC/PWD employees

• As per Government of India guidelines, reservation is provided to Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs), Economically Weaker Sections (EWS), Persons with Benchmark Disabilities (PwBDs) and Ex- Servicemen (ESM) candidates in Direct Recruitment.

• Reservation in promotion is provided for SCs, STs and PwBDs employees from Sub-Staff to Clerical cadre & Clerical cadre to Officer in JMG Scale-I as per Government guidelines.

• The Bank has a Chief Liaison Officer for SC/ST/PwBD/ ESM and a Chief Liaison Officer for OBC/EWS in the rank of General Manager to redress the grievances (if any) of SC/ST/OBC/ EWS/PwBD/ESM employees. A separate dedicated Cell is functioning at Corporate Office, HRM Department to look after the grievances of SC/ST/OBC/ EWS/PwBD/ESM employees.

4) HR Initiatives during the year:

• EmoHero Initiative - First line of emotional support for employees, through digital PRACTO platform helping to create a more connected and empathetic workplace.

• Micro-Learning Unified Platform - Host Gamified quizzes for all departments, facilitates Badges, Certificates and Peer-Peer recognition dashboard. Over 2.5 Lakh participations registered.

• Health Care - Tie up with M/s Practo for free online Doctor consultation for serving and retired staff members: 44818 enrolled

• Enhancement of Staff Housing Loan Ceilings and reduction in interest rate for Staff members

• Enhancement of Residential Accommodation ceiling for officers

15. HUMAN RESOURCE DEVELOPMENT

• 1-day Rashtriya Karmayogi Training was imparted for 19778 employees of the Bank across all cadres to instill sense of Seva Bhav in line with Capacity Building Commission of India.

• 12-month long Rising Star Leadership Development Program was conducted for 419 identified Officers from Scale IV to Scale VI.

• 1964 unique officers posted in the areas outside their linguistic region were trained in local language to serve customers in their local language, thereby improving customer connect.

• APARAJITA Programme -a workshop to initiate the reintegration journey of women in the Bank upon their return from maternity / sabbatical leaves was conducted for 140 women employees.

• Advanced Credit Management training with duration of 16 weeks was conducted for 63 Officers to create a talent pool in credit. Advanced Forex Management training with duration of 7 weeks was conducted for 57 Officers to create a talent pool in forex business.

• 9502 employees underwent training in Artificial Intelligence, as part of future ready workforce development.

• IB EDGILE platform - A data driven training recommendation and monitoring portal was launched, for field leaders to gauge the capacity & competency building requirements of employees under their span.

• 6089 employees underwent training on Digital Adoption, Mobile Banking and VBX.

• 976 employees got certified in AML, KYC and Compliance certificate under Banks tie-up with IIBF.

• Workshop for Internal Complaints Committees (PoSH Act 2013) conducted covering all the ICCs of the Bank.

• 35675 unique employees attended training in the entire FY26 across all modes of training.

16. CUSTOMER SERVICE

1 Launch of Next Generation Contact Center: In line with our continuous efforts to enhance customer convenience, the Bank has launched Next Generation Contact Center on 01.09.25. The new platforms allow customers to connect with the Bank seamlessly via voice, chat, WhatsApp, email, and social media for a variety of services.

2. Launch of Easy-to-remember Toll Free Number (TFN): The Bank has introduced a new and easy-to- remember domestic toll-free number 1800 1700 for customer convenience with effect from 01.09.25.

3. Dedicated Toll Free Number for NRI Customers: The Bank has launched 24x7 International Toll Free Numbers for NRI customers in 9 countries (USA, UK, Malaysia, Singapore, Canada, UAE, Qatar, Bahrain, Saudi Arabia) with effect from 01.09.25. For other countries, customers can contact the Banks 24x7 helpline (Toll number) at +91 22 4444 2888 for assistance and support.

4. As per TRAI guidelines, the Bank has launched 140/160 series numbers (140 for Promotional calls & 160 for Transaction Monitoring calls). These numbers can only be used by verified institutions, making it easier for customers to identify genuine calls from the Bank. This helps reduce the risk of scam or phishing calls from random mobile numbers. It also builds customer trust, improves the chances of important calls being answered, and ensures compliance with regulatory standards.

5. Conducting Customers Meet on August 22,2025:

The Bank celebrated its Annual Customers Day on August 22,2025, by organizing Customers Meet at all the branches worldwide, coinciding with the Banks Foundation Day. The occasion served as a platform for customers to share their feedback and expectations, while also fostering direct interaction with the Bank officials to further enhance service delivery.

17. INFORMATION SYSTEM SECURITY

The Bank believes in providing services to its customers in a safe and secured way and prioritizes customer data security without compromising the quality of banking services. The CIA (Confidentiality, Integrity and Availability) is at the heart of architecting the comprehensive information security framework. The Bank also emphasizes and implements protection from a plethora of hacktivist attempts which spans from phishing simulation, multi-factor authentication, and awareness initiatives, and provides simple and secure solutions to the customers.

The key elements of the security strategy at the Bank include:

• Layered Defense-in-Depth strategy providing multiple lines of defense across the technology layer.

• Strong framework of governance in the technology landscape is put in place.

• Dedicated teams focusing on cybersecurity and fraud risk management are put in place.

• Working towards zero-trust architecture and state of art security systems.

• 24x7 monitoring and surveillance of systems through

cybersecurity operation centre.

• Stringent security controls at the time of inducting new applications or servers.

• Periodic external security assessments by CERT-In empaneled service provider to ensure confidence in the security controls implemented.

• The Bank is certified for ISO 27001:2022 Information Security management system.

• The Bank is a critical infrastructure as declared by NCIIPC.

• The Bank conducts extensive training and awareness programs for the employees to keep them abreast of the emerging cyber threats and mechanisms to combat with them.

• The Bank is enhancing security measures in the view of emerging risks from new AI based applications.

18. INTERNAL CONTROLS

a) INSPECTION

• Bank has launched Dynamic Risk Assessment of Branches for proactive identification, monitoring and mitigation of inherent risks on quarterly basis, based on findings of different audit tools, automated data flow from MIS and integration of various system generated alerts.

• Audit Employee Assist was launched for real-time on-demand guidance to employees for improved decision making and insights.

b) FRAUD RISK MANAGEMENT:

Enterprise Fraud Risk Management Solution (EFRMS):

The Bank has deployed an Enterprise Fraud Risk Management Solution (EFRMS) that performs realtime, preventive transaction monitoring across all digital channels, including UPI, Internet Banking, IndSMART, ATM/POS/ECOM, Credit Cards, AEPS and CMS. The system uses a combination of rulebased detection and machine learning models to identify and block suspicious transactions. Machine learning driven adaptive authentication in Internet Banking and IndSMART enhances fraud prevention by assigning risk scores and triggering stepup authentication (challenge questions/ OTP) for highrisk transactions.

IVRS Integration with EFRMS: EFRMS is integrated with IVRS, enabling realtime automated calls for transactions flagged as suspicious. Customers can confirm transaction authenticity or block all digital channels immediately. Simultaneously, realtime SMS alerts are sent with an option to block digital banking access via reply SMS.

Onboarding to the Suspect Registry:

A centralized Suspect Registry is created to compile identifiers of cybercriminals. The Bank uses this registry to assess risk during onboarding and ongoing customer due diligence. The Registry is integrated with EFRMS, enabling realtime blocking of transactions (Internet/ Mobile Banking & UPI) to suspect accounts.

Integration with DoTs MNRL and FRI Systems:

The Bank has integrated with MNRL and FRI where API-based integration allows complete straightthrough processing (STP), including data downloads, digital freezing of Customer Profiles (High/Very High risk), debit freezing, mobile number removal from CIFs, and automated reporting to DoT.

• MNRL (Mobile Number Revocation List) provides telecomverified lists of permanently disconnected mobile numbers.

• FRI (Financial Fraud Risk Indicator) uses AIbased analytics to classify mobile numbers as Medium, High, or Very High risk based on their association with cyber fraud.

Cyber Police Portal Management (CPPM) Cell:

To combat cybercrimes, the Ministry of Home Affairs has rolled out a dedicated cybercrime reporting portal (www. cybercrime.gov.in) and a helpline number 1930. CPPM Cell is working in multiple shifts on 24x7 basis to attend to the complaints reported in the cybercrime reporting portal. The process of attending alerts on Cyber Police Portal has been automated through API integration of National Cybercrime Reporting Portal (NCRP) with the Bank.

Customer Awareness Initiatives:

• Special Drive for Senior Citizens on Digital Arrest:

A Special Drive was initiated where physical meetings have been conducted with Senior Citizens to create awareness on digital arrests and cyber frauds.

• Public Awareness Campaigns: The digital media campaign "Khabar Nahi, Khabardar Bano" used short films depicting common fraud scenarios (QR scams, phishing, job scams). These were circulated across social media, the Banks website, and digital signage systems.

• Ongoing Awareness Drives: SMS, email, and customer meetings are regularly used for educating customers. Cyber Fraud Awareness through regular e-mail, SMS, educational videos on social media, Banks website, customer meets etc. was created amongst customers for safe digital transactions to prevent cyber fraud.

19. COMPLIANCE

• In accordance with the Reserve Bank of India guidelines, an independent Compliance Department headed by Chief General Manager as Chief Compliance Officer has been set up in the Bank.

• The compliance function ensures strict adherence to all regulations.

• To further strengthen compliance in the Bank, dedicated compliance officer is deployed at every Zone, Field General Manager Office, Overseas Branches and Corporate Office Departments.

• Various Compliance Awareness activities like Compliance Conference, Compliance Journal, Compliance Awareness week, Theme based monthly Compliance Quizzes, Compliance trainings are conducted during the year as part of employees awareness program.

• The Bank aims to remain a compliant Bank by disseminating good compliance culture across the Bank

20. VIGILANCE

A) Vigilance Hierarchy in the Bank

• Chief Vigilance Officer (CVO), heads the Vigilance Division of the Bank and acts as advisor to the Chief Executive in all matters pertaining to vigilance. Vigilance functions to be performed by the CVO are widely varied and include collecting information about the corrupt practices committed or likely to be committed by the employees of the Bank. CVO heading the Vigilance machinery in the Bank, helps to take appropriate preventive and punitive measures in the matters pertaining to vigilance.

• CVO receives complaints from various sources and examines the same and provide necessary directions. Wherever Vigilance overtone is observed, complaints are being taken up for detailed investigation.

• CVO is assisted by ACVO and by a team of executives/ officers at Corporate office headed by DGM & AGM.

• There are 15 Field Vigilance Units (FVUs) at each FGMO centre and is headed by Chief Manager and is having one or more Vigilance Officers for various vigilance functions.

• Two Internal Advisory Committees are constituted at Corporate Office - one headed by the CGM (For Scale IV & above officers) and the other by GM (For the officers up to scale III and award staff). These committees examine cases and forward their recommendations to CVO/ACVO. While taking final decision in each case CVO/ACVO, considers the advice of the respective committee.

• CVO/ACVO provides Case Classification Advice (CCA) either as Vigilance or Non- Vigilance by considering the facts of the case and based on the broad guidelines provided by CVC.

• CVO/ACVO, provides First Stage Advice (FSA) for vigilance cases as Vigilance - Major or Minor. Whenever the case classification is Vigilance by CVO for scale V & above officers, FSA will be taken from CVC.

• CVO presents Fraud cases with amount involving Rs.3 Crore and above before Advisory Board for Banking & Financial Frauds to examine criminality on the part of Bank Officials.

• CVO also acts as nodal officer for interaction with CBI, ED or other investigating agencies.

Three Aspects of Vigilance Administration:

• Preventive Vigilance

• Surveillance & detection

• Punitive Vigilance

B) Preventive Vigilance Visit by CVO:

The Chief Vigilance Officer (CVO) /ACVO undertook visits to 16 Zonal Offices (ZOs) / Field General Manager Offices (FGMOs) / Regional Rural Banks, during which Vigilance administration was reviewed. Also, deliberations on Preventive Vigilance measures were given during the visit in which BMs and ZO/ FGMO officials have participated. CVO/ ACVO also conducted Structured Meeting / workshops with FGMOs/ZOs for creating awareness on root cause analysis of Vigilance Complaints / DP cases and learning from those cases.

C) Vigilance Awareness Week 2025:

In accordance with Central Vigilance Commissions directions, Vigilance Awareness Week (VAW 2025) was observed from 27.10.25 (Monday) to 02.11.25 (Sunday) by the Bank.

As a prelude to Vigilance Awareness Week 2025, as per CVC directions, Bank has undertaken a three-month campaign (18.08.25 to 17.11.25) with Disposal of pending complaints, Disposal of pending cases, Capacity Building programs, Asset Management and Digital initiatives as Preventive Vigilance Measures as focus areas, with the years theme as "Vigilance: Our Shared Responsibility."

Vigilance Pledge was taken by all employees of the Bank on 27.10.25 at Corporate Office, Head Office, Training Centres, FGMOs & ZOs Pan India. Various competitions like Essay Competition, Cartoon Competitions were conducted, Debates, Seminars and Workshops were also organized, as per the years theme. Awareness programmes among Gram Sabhas were also conducted by various FGMOs under their jurisdiction. Banners & Pamphlets were displayed in all FGMOs, ZOs & Training Centres. Also for educating the rural citizens about vigilance aspects, banners were also displayed in rural areas and various BC Points through their kiosks.

Digital initiatives

The following awareness activities were undertaken by the Bank during the Vigilance Awareness Campaign (from 18.08.25 to 17.11.25).

Social Media Channels:

• Messages were posted in the official pages to create awareness regarding vigilance pledge taking, walkathon and cyberfraud awareness.

• Videos were prepared and posted in Social Media handles of the Bank to create awareness among customers, citizens etc. regarding "Mule Accounts" & "Unknown Links".

21. SECURITY

• All Branches are equipped with Electronic Burglar Alarm systems and Fire Alarm systems, High- Definition DVR / NVR based CCTV solutions. Security Inspection of Branches were undertaken by Zonal Security Officers with specific emphasis on High Jewel Loan Branches.

• Select High Jewel Loan Branches were provided with 24X7 Electronic Surveillance systems to augment the Security.

• Electronically concentrated work spaces in Branch / ATM premises and specialized offices like DR Site are installed with Automatic (Modular) Powder based Fire Extinguishers / Gas based Fire Suppression Systems to mitigate fire hazards.

• GPS based Tracking devices are installed in Banks Cash Vans. Banks own guards/ PSA guards are provided in Currency Chests.

• GSM based auto dialers are installed in all Branches to ensure timely relay of Burglar/ Fire Alarm alerts to the concerned staff.

• Bi-Annual Fire Audits were conducted in all Currency Chests, as per RBI Guidelines.

• 24 x 7 Electronic Surveillance (E-Surveillance) with centralized monitoring was implemented in Banks own ATMs, across the country.

• Portal for enabling Remote monitoring of Branches through CCTV connected via Banks Intranet implemented for ease of monitoring from Administrative Offices.

• Mock Evacuation Drill including Fire Fighting Demonstrations undertaken at Head Office and Corporate Office premises and IMAGE every year.

22. PREMISES

Green Initiatives:

1. The Bank introduced Green Policy for Banks own Building & initiated process to get Green Certification from IGBC.

2. Roof Top Solar Panel was implemented at 85 locations across India in Banks owned premises with a capacity of 1232 kWp generating 17.86 lakh units per annum which saves cost of Rs.1.42 Crore per annum. The same is extended to leased premises wherever possible.

3. Diesel generators were surrendered or replaced with inverters and UPS to reduce carbon emission

4. All Branches/Offices/ATMs were fitted with LED light fittings and Timer in signage boards.

5. Light sensors were installed at Corporate Office, Head Office and 46 Zonal Offices for energy conservation.

6. Record Management system implemented in 4318 branches to save the rental expenditure.

Other Initiatives:

1. Ramp facility was provided in 4666 ground floor branches to assist Persons with Disabilities and senior citizens.

2. Digital Sign Boards were installed at 140 prime locations for branding Banks image across country in phase-1.

3. The Bank has taken aggressive steps for making staff quarters/office available in prime cities by way of redevelopment of old own buildings and construction of new buildings on the Banks own plot.

4. The Bank is using Government e-Marketplace (GeM) digital platform for procurement of Goods and services.

23. MARKETING:

Social Media Branding Initiatives

The Bank is proactively present on its official social media platforms viz., Facebook, X, YouTube, Instagram, and LinkedIn to effectively leverage the product promotion besides engaging with users by sharing various achievements, commemorative events and customer facing activities. It helped the Bank to surpass its followers count by more than 5.40 million by the end of FY26.

Digital Marketing Campaigns

The Bank has successfully conducted digital marketing campaigns creating brand awareness, brand recall and for product promotion on various digital platforms such as IRCTC, Radio City FM, Sony Sports, Sony Liv, TrueCaller, AAJ Tak Live TV, Jiostar Platform, Thanthi TV, The New Indian Express group of portals etc.

Automated Digital Signage (ADS) Implementation

The Bank has strategically deployed 2,229 ADS across potential branches and offices to keep both internal and external audiences updated about its products, services, regulatory developments, and cyber security awareness. Additionally, 1,235 devices were procured during the year and installed Pan India.

Ind Navya Newsletter

The Bank publishes a monthly newsletter named Ind Navya. It is an informative monthly newsletter covering Banks products/services/advisories and customer-centric initiatives/ developments like launch of new products and services, features, promotion offers, campaigns, achievements, events, government directives, advisories, etc.

Cybersecurity Awareness

In light of the increasing incidents of cyber frauds, the Bank continues to raise cybersecurity awareness about the latest financial scams under our targeted advertising campaign titled Khabar Nahi Khabardar Bano.

Corporate Blog

The Bank publishes blogs on the Banks official website covering various topics related to Banking and Finance, with an aim to deliver content that is both informative and engaging for our customers, covering our products/ services, industry trends, financial strategies, banking basics and the latest market developments.

24. CORPORATE COMMUNICATION:

External Communication

• During FY26, the Bank initiated various activities to improve customer engagement by offering customer centric products and services, publicizing various welfare schemes of the Government and achievements of the Bank.

• The Bank utilized physical and virtual platforms to facilitate communication to various stakeholders through press conferences, meets and special interviews of Top Management on various occasions.

• Wide coverage was received from major national dailies and TV channels during various occasions such as declaration of Financial Results, launch of products, outreach activities, Swachhata Pakhwada, CSR activities, 119^th Foundation Day Celebrations, etc.

• Advertisement campaigns were carried out by way of Out of Home(OOH) across major cities in the country through LED Digital Screens, Hoardings, Trivision boards, Glow Ball Towers, etc

Corporate Social Responsibility (CSR):

• Banks commitment to make a positive difference in the lives of marginalized sections of the society in the country has been demonstrated through various Corporate Social Responsibility (CSR) initiatives.

• For carrying out CSR activities, the major focus areas are Inclusive Growth, Financial literacy & Enhancing Vocational Skills, Green Initiative and Environmental Sustainability reducing carbon foot-prints, Gender Equality & Women Empowerment and Health & wellness.

CSR Highlights:

• The various CSR initiatives of the Bank solidify Banks commitment towards the betterment of communities as well as natural environment. Photographs of some of the CSR activities undertaken by the Bank are shared below:

25. Compliance of Accessibility Standards Guidelines of Department of Financial Services (DFS), GoI

In Compliance with DFS, GoI guidelines on Accessibility Standards, the Bank has taken following steps/actions:

1. Ramp with handrails & lift facilities have been provided at branches (4872), offices (304), and ATMs (5220). In locations where installation is not feasible, the name of the Nodal Officer has been prominently displayed to assist differently abled and senior citizen customers.

2. All ATMs/BNAs of the Bank are enabled with braille keyboard and audio jack facility.

3. BRAILLE Debit cards has been provided for visually impaired customers.

4. Banks IndSMART Mobile App and Internet Banking platform are designed to support accessibility and usability for differently abled users, ensuring inclusive digital banking services across channels. The platforms are compatible with widely used assistive technologies such as Google TalkBack, iOS VoiceOver, and JAWS, enabling customers with visual and other accessibility needs to conveniently access banking services.

5. To improve readability and user comfort, the platforms support adjustable font sizes, allowing users to increase text size through the application settings based on their accessibility requirements. In addition, prominent quick-action icons are provided to enable instant access to commonly used banking services, improving overall user convenience and operational efficiency.

6. The applications feature a simple and intuitive user interface with descriptive labels and integrated search functionality to help users quickly locate menus, options, and banking features with ease. Separate and clearly identifiable widgets are provided for quick accessibility to essential services and frequently used functionalities, thereby enhancing navigation and reducing operational complexities.

7. The platforms also provide links to demo videos covering major functionalities, along with captions and subtitles to ensure accessibility for users with hearing impairment and to facilitate independent understanding of digital banking services without reliance on audio support.

8. Further, the IndSMART Mobile App and Internet Banking platforms has undergone accessibility audits by specialized web accessibility auditors to assess compliance with accessibility standards and to ensure continuous enhancement of inclusive digital banking experience for all users.

26. SPORTS International

1. Our Basketball Players Mr. H. Muinbek, Mr. P. Baladhaneswar, Mr. Pranav Prince, Mr. Prashant Singh Rawat, represented Senior Indian camp currently.

2. Mr. Muin Bek and Mr. Pranav Prince represented senior Indian team for the FIBA Asia Cup qualifiers, window-3, 2025-26.

3. Mr. Pranav Prince from our Indian Bank Basketball Team represented Senior Indian team for the FIBA 3x3 Asia Cup 2025-26.

27. OFFICIAL LANGUAGE DEPARTMENT

The Bank is committed to provide banking services to the masses of the country in Official Language Hindi and other Indian languages. Accordingly, the Bank has a well-established Official Language Department which ensures implementation of the provisions related to the Official Language Policy of the Government of India and Progressive Use of Official Language, Hindi, in the Bank.

The Bank has made concerted efforts to comply with the Official Language instructions received time and again from the Department of Official Language, Ministry of Home Affairs, Government of India, Committee of Parliament on Official Language and Department of Financial Services, Ministry of Finance, Government of India.

The use of Official Language Hindi and other Indian languages for promoting business as well as providing digital products to the customers is a significant part of the Banks Official Language policy, which has been well appreciated time to time by the Government of India and Regulatory Authorities from various platforms.

It is a matter of great pleasure that the Bank has adopted a well-structured Annual Action Plan for implementation of Official Language Hindi and for progressive use of Hindi in order to achieve the various targets prescribed by the Government of India under its Annual Programme 2025-26, directions issued by Department of Financial Services, Ministry of Finance and the assurances given to the Honble Committee of Parliament on Official Language during its visits to various offices of the Bank.

During the year 2025-26, the noteworthy initiatives undertaken by the Bank through the Official Language Department are given below:

• Compliance to Section 3(3) of the Official Languages Act, 1963: Circulars, Advertisements, Press Releases, Annual Report, AGM/EGM Notices, Tender Notices etc. are issued in Bilingual form (Hindi-English) by the Corporate Office in compliance of Annual Programme 2025-26 issued by Government of India.

• Replies to letters received in Hindi - Rule 5 of the Official Language Rules, 1976: The letters received in Hindi are required to be replied to invariably in Hindi. To facilitate its compliance, the letters received in Hindi are translated into English and sent to the respective departments. The English draft reply received back by the Department is translated into Hindi and in all such cases, it is thus ensured that the replies are sent in both languages in English and Hindi.

• Bank Rajbhasha Portal: Link to Leela Hindi Pravah, an online tool of the Government of India for Hindi learning, is available on the Rajbhasha portal for the benefit of the staff members. Hindi typing software and Hindi fonts, the link of "Bharati Bahubhashi Anuvad Sarthi" developed by Department of Official Language, Ministry of Home Affairs, Government of India is also available on this portal.

• Hindi Training: Non-Hindi Speaking Staff members are being imparted Hindi training invariably to the level of Pragya examination conducted by Hindi Teaching Scheme, Department of Official Language, Ministry of Home Affairs, Government of India to provide them working knowledge of Hindi as the actions undertaken in compliance to the assurances given to Honble Committee of Parliament on Official Language during its Official Language inspection of the Bank and a Roster of the staff members having working knowledge of Hindi has been prepared to provide them Parangat examination conducted by Hindi Teaching Scheme.

• Hindi Workshops: Around 5145 officers and employees were imparted training in Hindi through 266 Hindi workshops conducted during FY26.

• Hindi Desk Training: In order to dispose of the desk works in Hindi in branches, Hindi Desk Trainings were conducted for officers and employees posted in the branches during monthly mandatory inspection by the Official Language officers in compliance to the Annual Programme 2025-26 issued by the Department of Official Language, Ministry of Home Affairs, Govt. of India.

• Translation Works: Translation of all Banners, Tenders, Advertisement materials, Press Releases, Pamphlets, etc. received from various departments of Corporate Office/Head Office, was done by the Official Language Department.

• All India Official Language Conference and Annual Review Meeting: An All India Official Language Conference for Official Language Officers was organized under the chairmanship of Shri Brajesh

Kumar Singh, Executive Director at Lucknow on 12.03.26 for all the officers of Official Language Cadre. Padmashri Smt. Malini Awasthi as the Chief Guest and Padmashri Dr. Vidya Bindu Singh as the Special Guest attended the conference. Dr. Chhabil Kumar Meher, Deputy Director (Implementation), Regional Implementation Office, North-II, Government of India was also present on this occasion.

• Celebration of Hindi Fortnight 2025: Hindi Fortnight was celebrated at Corporate Office from 14^th September 2025 to 29^th September 2025. During this period, various Hindi competitions were organized at the Corporate Office for Executives and Staff members.

• Town Official Language Implementation Committee (TOLIC): The Bank is the Convenor of TOLIC set up by the Department of Official Language, Ministry of Home Affairs, Government of India in 13 towns Pan India. Meetings of all TOLICs were conducted as per Government of India guidelines in the scheduled months. The 77^th Half-yearly Meeting of the TOLIC (Bank/FIs), Chennai was conducted on 25.11.2025 under the Chairmanship of Shri Binod Kumar, MD & CEO at IMAGE. TOLICs Hindi Magazine "Chennai Bharati" was released by Shri Brajesh Kumar Singh, Executive Director during An All India Official Language Conference organized under the aegis of the TOLIC (Bank/FIs), Chennai.

• Inspection Visit of Honble Committee of Parliament on Official Language: Official Language Inspections of Zonal Offices: Guwahati, Bengaluru,

Mysore, Dehradun, Agra, Gurgaon, Mumbai (South), Kolkata (Central), Varanasi, Gonda and Meerut by the Third Sub Committee of the Honble Committee of Parliament on Official Language were successfully held. The Official Language discussion by the Drafting and Evidence Sub Committee of the Honble Committee of Parliament on Official Language with Corporate Office, ZO Moradabad, ZO Kanchipuram, ZO Puducherry, Kollam Branch, Pathanamthitta Branch and Malappuram Branch were also successfully held on various dates.

• Inspection by DFS: ZO Bhubaneshwar and ZO Pune were inspected by a team of Inspection, DFS for implementation of Official Language. The Corporate Office was inspected by Shri Dharmbir, Deputy Director (OL), Department of Financial Services on 17.03.2026 for implementation of Official Language. Post inspection, an exit meeting was organized under the Chairmanship of Ms. V.N. Maya, CGM (CDO & CLO) & Legal. The meeting was attended by several Department Heads of the Corporate Office.

• New Initiatives: As part of continued commitment to the effective implementation of the Official Language Policy, various initiatives like Rajbhasha Portal, Online Payment of Honorarium after passing out of Hindi Exam, "Learn a Word" feature on Helpdesk, Bilingual CBS Platform, Publication of Hindi Magazines, Local Language Conversational Help Book, Books Based on State Culture, Pan India Book etc. were undertaken by Official Language Department.

29. REGIONAL RURAL BANKS (RRBs):

• The Bank has two sponsored Regional Rural Banks viz., Tamil Nadu Grama Bank (TNGB) headquartered at Salem (Tamil Nadu) and Puducherry Grama Bank headquartered at Puducherry (Union Territory of Puducherry).

• Saptagiri Grameena Bank (SGB) has since been merged with Andhra Pradesh Grameena Bank sponsored by Union Bank, w.e.f. 01.05.25.

• As per the notification issued by the Central Government on 23.10.25 under the Regional Rural Banks Act, 1976, the bank formerly known as Puduvai Bharathiyar Grama Bank has been renamed as Puducherry Grama Bank.

• In respect of two RRBs, the branch network has increased by 25 from 722 (March 2025) to 747 Branches (March 2026). The total business of the two RRBs was Rs.61,968 Crore as on 31.03.26 as compared to Rs.53,924 Crore as on 31.03.25 (YoY growth of 15%).

• Both RRBs are profit making.

Business position as on 31.03.2026 (Audited) ( Rs. in Cr)

S. No.	Name of the RRB	No. of Branches	Deposits	Advances	Business	Net Profit	Net NPA %	CRAR %
1	Tamil Nadu Grama Bank	699	26232	31735	57966	623	0	13.34
2	Puducherry Grama Bank	48	1923	2079	4002	60	0	10.39
	Total	747	28155	33814	61968	683	0	-

• RRBs are actively participating in the Government of Indias financial inclusion schemes such as PMJDY, PMJJBY, PMSBY, and APY. As on 31.03.26, they have 13.76 lakh PMJDY accounts, covered 9.71 lakh beneficiaries under PMJJBY, 18.89 lakh beneficiaries under PMSBY, and 4.17 lakh beneficiaries under APY.

30. SUBSIDIARIES AND JOINT VENTURES

Universal Sompo General Insurance (P) Limited:

• The Bank has a joint venture with a Consortium of Public & Private Corporate entities from India and Sompo of Japan as promoters and was incorporated in 2007.

• Universal Sompo General Insurance Co. Ltd. is a joint venture of Indian Bank, Indian Overseas Bank, Karnataka Bank Ltd., Dabur Investment Corporation and a leading general insurer from Japan, Sompo Japan Insurance Inc. It offers a wide-range of products catering to Retail, Rural, SME & Corporate customer segments.

• As on 31.03.26, the Indian Banks shareholding was at 28.52%

• The Net Profit has been Rs.226 Crore in FY26 as against Rs.190 Crore in FY25 registering a growth of 18.95%.

Indbank Merchant Banking Services Limited:

The subsidiary functions across corporate, retail, and institutional financial segments through the following core operational wings:

• Merchant Banking: Undertakes capital market assignments as Lead Manager, Co-Manager, Advisor, or Arranger for Public Issues, Rights Issues, and Private Placements. They also manage buybacks, delistings, and corporate share takeovers under SEBI guidelines.

• Stock Broking: Corporate member of the NSE and BSE. They offer retail and institutional online trading platforms (IndFortune) spanning Equity, Derivatives (F&O), and ETFs.

• Depository Participant (DP) Services: Registered with both NSDL and CDSL to handle demat accounts and electronic holding transactions for retail and corporate clients.

• Investment Distribution: Regulated AMFI mutual fund distributor utilizing their IndWealth platform for regular and systemic investment plans (SIPs)

• The company is listed on NSE and BSE

• As on 31.03.26, the Banks shareholding was at 64.84%.

• The subsidiary witnessed Net Profit of Rs.7.09 Crore in FY26 and earned income of Rs.14.11 Crore under stock broking.

IndBank Global Support Services Limited (IGSSL):

• IGSSL is a Wholly Owned Subsidiary (WOS) of Indian Bank, incorporated on 09.02.24 with an authorized and paid-up Capital of Rs.10 Crore to offer comprehensive outsourcing solutions for various banking operations as permitted by RBI. The WOS is active in garnering deposits, sourcing mortgage, vehicle loans, improving digital penetration and recovery. The subsidiary witnessed Net Profit of Rs.28 lakh in FY26.