Indian Bank Directors Report

DIRECTORS REPORT 2025-26

To

The Members,

Your Directors have immense pleasure in presenting the Banks Annual Report along with the Audited Statement of Accounts and the Cash Flow statement for the year ended 31^st March 2026.

FINANCIAL HIGHLIGHTS

The major highlights of your Banks performance during FY26 are as follows:

A. RESOURCE MOBILIZATION & ADVANCES:

			(Rs. in Cr)
Particulars	31.03.25	31.03.26	YoY (%)
Global Deposits	737154	827726	12.29
Domestic Deposits	702966	789283	12.28
Of which Current	39236	44087	12.36
Savings	243140	269005	10.64
CASA	282376	313092	10.88
CASA Mix (%)	40.17	39.67	-
Overseas Deposits	34188	38443	12.45
Global Advances (Gross)	588140	667113	13.43
Domestic Advances (Gross)	546283	617485	13.03
Overseas Advances (Gross)	41857	49628	18.57
Total Business	1325294	1494839	12.79
Total Assets	873411	987953	13.11

1. Global Deposits grew by 12.29% YoY and stood at Rs.8.28 lakh Cr in March 2026.

2. Domestic Deposits grew by 12.28% to Rs.7.89 lakh Cr. Domestic CASA increased to Rs.3.13 Lakh Cr and CASA share was at 39.67%. In order to augment the CASA portfolio, Bank has mobilized 38.82 lakh new CASA accounts (excluding BSBD Savings account) during FY26.

3. Gross Advances of the Bank (Global) grew by 13.43% YoY and stood at Rs.6.67 lakh Cr as on March 31,2026 from f5.88 lakh Cr as on March 31,2025.

4. Priority Sector Advances were at Rs. 2.15 lakh Cr as on March 31, 2026. Priority sector as a percentage to Adjusted Net Bank Credit (ANBC) for FY26 stood at

41.46% as against the mandatory target of 40.00%.

5. Agriculture Credit (Priority Sector) was at Rs.96,191 Cr and as a percentage to ANBC the same stood at 18.55% as against the mandatory target of 18.00%.

6. All mandatory targets under priority sector stipulated by RBI have been surpassed during FY26.

7. Gross NPA and Net NPA reduced to Rs.13,190 Cr (1.98%) and Rs.965 Cr (0.15%) respectively as on March 31, 2026 from Rs.18,179 Cr (3.09%) and Rs.1,110 Cr (0.19%) respectively as on March 31,2025.

8. Total recovery of NPAs (cash recovery including recovery in AUC accounts, upgradation and Mol) during FY26 amounted to Rs.6,651 Cr as against Rs.7,651 Cr in the previous year.

9. Provision Coverage Ratio (PCR) of the Bank improved by 18 bps to 98.28% in FY26 as against 98.10% in FY25.

10. Domestic Branch network of the Bank expanded to 6001, comprising of 2011 Rural, 1605 Semi Urban, 1195 Urban and 1190 Metropolitan branches. Besides, Bank has 3 overseas branches and 1 IFSC Banking unit (GIFT City). Total number of Banks ATMs and BNAs stood at 5657 which include 645 offsite ATMs/BNAs and 3 mobile ATMs. Bank is also having 17032 Business Correspondents taking the Pan India touch points to 28691.

B. INCOME AND EXPENDITURE

				(Rs. in Cr)
Particulars	31.03.25		31.03.26	YoY (%)
Interest Earned	62002		67451	8.79
Interest Expended	36826		40536	10.07
Net Interest Income (NII)	25176		26915	6.91
Other Income	9223		9991	8.32
Of which - Fee Income	3528		3709	5.15
Operating Revenue (NII + Other income)	34399		36906	7.29
Operating Expenses	15401		16989	10.31
Of which Employee Expenses	9883		10760	8.87
Other operating Expenses	5518		6229	12.89
				(fin Cr)
Particulars		31.03.25	31.03.26	YoY (%)
Operating Profit		18998	19916	4.83
Provisions Other Than Tax		4211	3512	(16.60)
Profit before Tax		14787	16404	10.94
Provision for Tax		3869	4248	9.80
Net profit		10918	12156	11.33

1. Interest income of the Bank grew by 8.79% to f67,451 Cr in FY26 from Rs.62,002 Cr in FY25.

2. Net Interest Income grew by 6.91% to Rs.26,915 Cr in FY26 from Rs.25,176 Cr in FY25.

3. Fee based Income grew by 5.15% to Rs.3,709 Cr in FY26 from Rs.3,528 Cr in FY25.

4. Operating Profit increased by 4.83% at Rs.19,916 Cr in FY26 from Rs.18,998 Cr in FY25.

5. Profit before Tax grown by 10.94% to Rs.16,404 Cr in FY26 from f14,787 Cr in FY25.

6. Net Profit up by 11.33% YoY to Rs.12,156 Cr in FY26 from Rs.10,918 Cr in FY25.

C. KEY RATIOS FOR FY26: (in %)

Parameters	31.03.25	31.03.26
Yield on Advances	8.75	8.33
Cost of Deposits	5.12	4.97
Net Interest Margin	3.41	3.24
Net Interest Margin (Domestic)	3.51	3.36
Cost Income ratio	44.77	46.03
Return on Assets	1.32	1.31
Return on Equity	20.76	19.53
Average Business per employee (fin lakh)	2922	3336
Profit per employee (fin lakh)	27.25	30.22

1. Cost of Deposits (CoD) reduced by 15 bps to 4.97% in FY26 from 5.12% in FY25.

2. Return on Assets (RoA) stood at 1.31% in FY26.

3. Net Interest Margin (NIM) Domestic stood at 3.36% in FY26.

4. Average Business per employee increased by Rs.414 lakh to Rs.3336 lakh in FY26 from Rs.2922 lakh in FY25.

5. Profit per employee increased by Rs.2.97 lakh to Rs.30.22 lakh in FY26 from Rs.27.25 lakh in FY25.

D. NETWORTH AND CRAR

1. Networth of the Bank stood at f65,628 Cr as on March 31, 2026 as against f57,029 Cr in March 31, 2025.

2. Shareholding of Govt. of India (GoI) is 73.84% as on March 31,2026

		(in %)
	As on
CRAR as per BASEL III	31.03.2025	31.03.2026
CET- I	15.36	16.40
Tier- I Capital	15.85	16.40
Tier-II Capital	2.09	1.53
Total	17.94	17.93

1. As per Basel III norms, the CET- I ratio was at 16.40% on 31.03.2026 compared to 15.36% on 31.03.2025 as against minimum requirement of 8.00%.

2. The Tier-I Capital was at 16.40% as on March 31,2026 as against 15.85% as on March 31,2025.

3. The Capital to Risk Weighted Assets Ratio (CRAR) was at 17.93% as on March 31, 2026, compared to 17.94% in March 31, 2025 as against the regulatory requirement of 11.50%.

E. RECRUITMENT / TRAINING

As per the Government of India guidelines, Bank is providing Reservation to SC/ST/OBC/EWS/PwBD/ ExSM categories under direct recruitment wherever applicable. Further, pre-promotion trainings were conducted to the employees belonging to SC/ST/ OBC/ PwBD categories in the internal Promotion process.

F. CHANGES IN THE BOARD DURING THE FINANCIAL YEAR:

All the Directors except Shareholder Directors are appointed/nominated by the Govt. of India (GOI). During the FY26, DFS, GOI has appointed/nominated,

• Ms. Mini T M as Executive Director of the Bank with effect from 24.11.2025.

• Shri Balmukund Sahay as Part Time Non-Official Director of the Bank with effect from 11.04.2025.

• Shri Vishvesh Kumar Goel as Part Time NonOfficial Director of the Bank with effect from 11.04.2025

• Shri Bhupinder Singh Bhalla was elected as

Shareholder Director of the Bank with effect from 31.12.2025 for a period up to 08.03.2027

The details regarding the completion/ cessation of the term of appointment of Directors during FY 26 are as follows:

• Shri Mahesh Kumar Bajaj, Executive Director of the Bank demitted office on 30.06.2025 on superannuation and accordingly ceased to be Executive Director of the Bank with effect from 01.07.2025.

• Shri Pradeep Kumar Malhotra submitted his resignation vide letter dated 28.11.2025 pursuant to RBls communication dated 30.07.2025 disqualifying serving employees of Life Insurance Corporation of India being connected with para banking activities to be on the Board of PSBs as Shareholder Director in terms of para 4.3(iv)(b) of Master Direction-Reserve Bank of India (Fit & Proper Criteria for Elected Directors on the Board of PSBs) Directions, 2019 dated August 02, 2019 (updated as on June 03, 2020). Accordingly, Shri Pradeep Kumar Malhotra ceased to be a Director of the Bank w.e.f. 28.11.2025

G. DIRECTORS RESPONSIBILITY STATEMENT

The Directors confirm that in the preparation of the annual accounts for the year ended March 31, 2026: -

1. The applicable accounting standards have been followed along with proper explanation relating to material departures, if any.

2. The accounting policies framed in accordance with the guidelines of the Reserve Bank of India, were consistently applied.

3. Reasonable and prudent judgment and estimates were made so as to give a true and fair view on the state of affairs of the Bank at the end of the financial year and profit of the Bank for the year ended March 31,2026.

4. Proper and sufficient care were taken for the maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks in India; and

5. The accounts have been prepared on a going concern basis.

H. Performance evaluation of Banks Board and its Directors

To strengthen governance practices, Bank engaged a reputed External Expert to conduct the performance evaluation of the Board, its Committees and Individual Directors. The evaluation methodology was accepted by the Nomination and Remuneration Committee. Accordingly in compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the principles outlined in the SEBI Guidance Note on Board Evaluation issued vide Circular No. SEBI/HO/CFD /CMD/CIR/P/2017/004 dated January 5, 2017. External Expert has carried out the evaluation of the Board, Board-level Committees and Individual Directors for FY 2025-26.

I. ACKNOWLEDGEMENT

The Board expresses its deep sense of gratitude to the Government of India, State Governments, Reserve Bank of India and Securities & Exchange Board of India for the valuable guidance and support received from them. The Board is also grateful to the financial institutions and correspondent Banks for their co-operation and support. The Board acknowledges the unwavering support of its customers and shareholders.

The Board places on record its appreciation for the valuable contribution made by Shri Mahesh Kumar Bajaj and Shri Pradeep Kumar Malhotra who ceased to be members during the financial year.

The Board also places on record its appreciation for the dedicated services and contribution made by members of staff for the overall performance of the Bank.

For and on behalf of Board of Directors

(Binod Kumar)

MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER.