indusind bank ltd share price Management discussions

1. Macroeconomic and banking environment

The Indian economy showed resilience despite multiple global shocks during FY2023, facilitated by its domestic orientation. India emerged as the fastest-growing large economy globally, after fully recovering from the COVID-19 pandemic. However, the global economic challenges intensiRs. ed throughout the year, particularly with the Russia-Ukraine conflict, which drove up commodity prices, especially energy and food, leading to increased inflationary pressures. In major advanced economies, inflation reached multi-decade highs.

According to the International Monetary Fund (IMF), global inflation rose to 8.7% in 2022 from an average of 3.7% in the previous five-year period. This increase was driven by strong demand, supply chain bottlenecks and a rise in energy prices. Chinas Zero-Covid policy put pressure on global supply chains, prompting interest in the ‘China Plus One strategy to secure critical inputs and products. In the United States, consumer price index (CPI) inflation reached a 40-year high of 9.1% in June 2022, significantly exceeding the US Federal Reserves target of 2%. In response, the US Fed raised the Fed funds rate by 450 basis points over the year, resulting in a 20-year high for the US dollar. Other major central banks, including the Reserve Bank of India (RBI), also raised rates to control inflation, leading to a synchronized global monetary tightening. This tightening of global financial conditions resulted in significant capital outflows from emerging markets and exchange rate depreciation as a result. Higher commodity prices widened Indias current account deficit (CAD), adding to the exchange rate pressure.

Despite these challenges, the Indian economy experienced 7.2% real GDP growth in FY2023, driven by domestic growth drivers of private consumption and public investments. The normalization of contact-intensive services and a resilient agricultural sector supported private consumption. The capital formation rate increased, supported by public sector capital spending. However, the manufacturing sector faced challenges due to higher input costs. The external sector, had a large negative impact on growth, with imports surpassing exports, particularly in the first half of the year. Goods and services exports reached $750 billion, with strong growth in IT services helping to counter the drag from commodity prices and increased demand for merchandise imports. India is expected to contribute 15% of global growth in 2023. The International Monetary Fund (IMF) predicts global growth to slow down to 2.8% in 2023 from 3.4% in 2022.

Macroeconomic policy focused on supporting recovery and sustaining growth. The fiscal policy aimed to bolster public investments to create a favorable environment for private capital expenditure. Monetary policy shifted its focus to curbing inflation and withdrawing pandemic era stimulus. The Monetary Policy Committee (MPC) raised the Repo rate by 250 basis points over the year to 6.50% as Consumer Price Index (CPI) inflation rose to an average of 6.7% in FY2023 from 5.5% in the previous year. Infiation remained above the upper end of the target band for the first seven months, driven by higher food and core inflation. Surplus liquidity in the banking system decreased significantly due a balance of payments deficit, higher currency-in-circulation and government cash balance buildup. Higher policy rates and tighter liquidity conditions led to an increase in sovereign yields across the curve, particularly in the shorter tenors.

On the fiscal front, buoyant tax collections, except excise duties, supported the central governments capital expenditure despite an increase in subsidies, on food and fertilizers. The government cut excise duties on retail fuels in May 2022 to curb fuel inflation. Capital expenditure by the central government increased by over 20%, focusing on railway and road development. The Union budget for FY2023-2024 prioritizes capital expenditure as a key driver for growth and commits to credible fiscal consolidation. Capital expenditure is projected to grow by 37.4%, reaching 3.3% of Gross Domestic Product (GDP), up from an average of 1.7% during 2010-2020. The fiscal deficit target is set at 5.9% of GDP, down from 6.45% in FY2023. The government aims to consolidate its fiscal position by controlling subsidies and other revenue expenditures. However, gross borrowings would increase, which would put pressure on sovereign bond yields. The budget proposals focus on infrastructure development, digitization, and transitioning to green energy.

In the banking sector, credit growth accelerated to 15% from 9.6% in FY2022, surpassing deposit growth of 9.6%. Non-food credit growth was widespread across sectors, regions, population groups, organizations, account types, and Bank groups. Compared to the previous fiscal year, incremental non-food credit flow nearly doubled. While retail loans and loans to the services sector led the surge, industrial credit also gained momentum. Going forward, sustaining the current pace of credit growth may prove challenging due to slower deposit growth and significantly higher lending rates. Repo rate increases were effectively transmitted to deposit and lending rates, especially in the second half of the year, aided by the moderation of surplus liquidity and the External Benchmark Lending Rate (EBLR) regime for loans.

On the external front, the Indian Rupee depreciated by 8.4% against the US dollar over the year. A larger Current Account Deficit (CAD) due to a surge in the merchandise trade deficit, net portfolio capital outflows, and repayment of external commercial borrowings, led to an overall Balance of Payments (BoP) deficit. As a result, the RBIs foreign exchange reserves declined by $29 billion, ending the year at $578.4 billion, still providing a comfortable buRs. er for adverse external shocks, equivalent to 9.8 months of imports.

Looking ahead, the Indian economy faces strong headwinds from tighter global financial conditions, persistently high global inflation, uncertainty surrounding oil prices due to the Russia-Ukraine conflict and OPEC+ production cuts, the reopening of the Chinese economy, and new financial stability concerns. The IMF now estimates a 15% chance of a global recession in FY2023, assuming higher rates and tighter lending conditions with investors adopting a risk-averse approach. Indias growth is expected to slow down due to the withdrawal of monetary stimulus and weak external demand and will continue to be driven by private consumption and investments. The Union budget FY2023-2024 aims to boost capital expenditure in transport, logistics, and renewable energy in order to crowd-in private investments. Public investments are expected to have a multiplier effect on private sector investments over the next three years. A recovery in private investment activity is anticipated, marking a long-awaited upturn in the investment cycle. The focus on developing the domestic manufacturing sector through policies like the production-linked incentive (PLI) scheme, investment in physical infrastructure, and a robust public digital infrastructure bodes well for investment activity and sustainable credit growth.

1.1. Outlook

Financial stability concerns with sharply higher policy rates in advanced economies came to the fore, in the backdrop of regional bank failures in the US in March 2023 and the resultant contagion risks. Financial stability risks in India are contained as the RBI has focused on macro and micro-prudential measures in recent years to prevent the build-up of financial vulnerabilities. The Indian banking system remains sound and healthy, with strong capital and liquidity positions, improving asset quality, better provision coverage and improved profitability.

Moodys Investor Service shares a similar perspective, as this renowned global credit rating agency believes that the banking sector in India maintains a stable outlook. This positive outlook is underpinned by the countrys economic growth and improved financial performance. Moody also anticipates that rising inflationary pressures will prompt companies to rely on domestic banks to fulfill their financing needs at more affordable rates. This trend is expected to contribute to the sustained recovery in credit growth, which commenced in FY2023 and is projected to be around 15%.

2. Business Overview

During FY2023, the macroeconomic environment remained challenging, marked by geopolitical uncertainties, inflationary pressuresandliquiditytightening.AmidstthesetheBankremained steadfast in executing and delivering on strategic objectives. The Bank saw consistent improvement across business parameters while maintaining robust position across sustainability metrics. Deposits growth was healthy at 15% Y-o-Y driven by granular retail deposits as defined by Liquidity Coverage Ratio (LCR) which grew by 19% Y-o-Y. Loan growth accelerated to 21% Y-o-Y with broad-based contribution across business units. Profit After Tax (PAT) for the year increased by 60% Y-o-Y at Rs. 7,389.72 crores with Return on Assets (ROA) and Return on Equity (ROE) of 1.81% & 14.53%, respectively.

2.1. Planning Cycle 5 Outcome

The Bank completed final year of our Planning Cycle 5 (PC-5) in March 2023 and final outcomes are broadly in line with the stated objectives:

1. Retail Liabilities Surge: The Bank progressed towards building robust retail deposit franchise with 74% of incremental deposits during the last three years coming from granular retail LCR deposits and CASA. The share of retail deposits is now at 43% compared to 31% at the beginning of PC-5 and concentration of top-20 depositors reduced to 16% from 23%.

2. Fine-tuning Corporate Banking Approach: This was one of the key focus area for the Bank at the start of PC-5 and the Bank has realigned the corporate bank approach towards granular annuity driven business and steadily pivoted towards growth. Share of A & above rated portfolio increased to 73% from 63% in March 2020.

3. Holistic Rural Banking: The Bank continued to leverage its deep rural distribution network with holistic offerings via Bharat Financial Inclusion Ltd. (BFIL) and rural branches. The share of rural loans now stands at 19% of the Banks loan book.

4. Scaling Up Domains: Our domains have delivered strong risk adjusted returns across credit cycles and this period was no different amidst multiple macro challenges. The Bank saw recovery in growth following asset quality outperformance and domains now contribute 42% of our loan book.

5. New Growth Boosters: We continued scaling-up our PC-4 and PC-5 initiatives including ARs. uent Banking, NRI Banking, Tractor Finance, Affordable Housing & Merchant Loans etc. Overall, the Bank has strengthened its position across sustainability metrics and closed the PC-5 a capital adequacy ratio of 17.86%, Provisioning Coverage Ratio (PCR) at 71% with contingent provisions of Rs. 1,900 crores, Credit Deposit ratio at ~86%, Liquidity Coverage ratio at ~123%, Operating profit margin in excess of 5.5% of loans.

2.2. Planning Cycle 6 Strategy

The Bank finalized its Planning Cycle 6 strategy for the next three years period till FY26. The focus is clear towards Growth, building Granularity with relentless focus on Governance i.e. 3G in short. The strategy for PC-6 is ‘Market Share with Diversification where the Bank will maintain or gain market share in key businesses building diversification in certain areas to improve risk adjusted return profile of the Bank. We have outlined key themes driving our strategy:

1. Continuing Retailization Journey: The Bank believes this as a work in progress agenda while we have come a long way in the last 2-3 years. The Bank will continue its sharp focus on retailization of deposits and aim to increase share of retail deposits to 45%-50% by the end of PC-6.

2. Diversifying Domains: Domains have delivered strong risk adjusted return for the Bank across cycles and the Bank will continue to grow these domains while diversifying via launch/ scale-up of new initiatives. The Bank will continue to build on its leadership position across vehicle categories while diversifying the portfolio with scale-up of used vehicle & affordable housing portfolio. The Bank aims to transition from microfinance to micro-banking with aim to become banker of choice for rural India. For Gems & Jewellery, the Bank is going with community banking approach with focus on capturing the entire ecosystem.

3. Scaling Sub-Scale Businesses: Building scale in current sub-scale businesses is a key focus area for PC-6. The Bank has multiple initiatives in place including comprehensive mortgage backed loans with launch of home loan, driving MSME penetration with broad-based offering, scaling-up PC-5 Initiatives like ARs. uent Banking, NRI banking, Merchant offering. 4. Accelerating Digital 2.0: Digital bank has been carved out as distinct business unit focused on delivering innovative customer centric solutions across Individual & MSMSE segments with a goal to build a profitable digital bank.

5. Imbibing ESG into Business: Sustainability continues to be core to the Banks philosophy and the Bank continues to take various initiatives with focus on incorporating Environmental, Social and Governance (ESG) into overall business.

Overall, the PC-6 strategy is aligned towards Banks long term goal of delivering ‘Sustainable Growth and with multiple initiatives in place the Bank is well equipped to progress towards its strategy of delivering ‘Market Share with Diversification.

2.3. Operating Performance

The salient features of the Banks Operating Performance during FY2022-23 are summarized in the table below: (Rs. in crores)

Particulars	FY22-23	FY21-22	Y-o-Y
			Growth
Interest Earned	36,367.92	30,822.44	17.99%
Interest Expended	18,775.80	15,821.60	18.67%
Net Interest Income	17,592.12	15,000.84	17.27%
Non-Interest Income	8,166.37	7,334.20	11.35%
Revenue	25,758.49	22,335.04	15.33%
Payment to Employees	3,030.52	2,488.34	21.79%
Other Expenses	8,008.05	6,749.74	18.64%
Operating Expenses	11,038.57	9,238.08	19.49%
Operating profit before Depreciation, Provisions and Contingencies	14,719.92	13,096.96	12.39%
Depreciation	373.44	321.21	16.26%
Operating Profit	14,346.48	12,775.75	12.29%
Provision and Contingencies	4,486.83	6,602.10	(32.04)%
Profit Before Tax	9,859.65	6,173.65	59.71%
Provision for Tax	2,469.93	1,562.53	58.07%
Net Profit	7,389.72	4,611.12	60.26%
Net Profit (Consolidated)	7,443.49	4,805.03	54.91%

Key Balance Sheet Parameters:

(Rs. in crores)

Particulars	FY22-23	FY21-22	Y-o-Y
			Growth
Deposits	3,36,438.14	2,93,681.35	14.56%
Advances	2,89,923.68	2,39,051.53	21.28%
Balance sheet size	4,57,804.05	4,01,974.58	13.89%

2.4. Business Performance highlights

LCR Retail deposits for the current year recorded a year-on-year growth of 19%, with the share of LCR Retail deposits increasing to 43% from 41% compared to the previous year. The Net Interest Margin (NIM) for the current year rose from 4.11% to 4.27%. This increase can be attributed to several factors, including improved disbursements, higher yields, a higher proportion of loans in the total balance sheet, and an enhancement in the share of retail loans to 54%.

The Banks Net Interest Income experienced a growth of 17.27%, amounting to Rs. 17,592.12 crores, compared to Rs. 15,000.84 crore in the previous year. The Yield on Advances also improved to 11.68% from 11.56% in the previous year, while the Cost of Deposits increased to 5.32% from 4.78% a year ago.

Non-Interest Income witnessed a growth of 11.35%, reaching Rs. 8,166.37 crores from Rs. 7,334.20 crores. The increase in economic activities played a role in the rise of Core Fee Income, including commission, exchange, loan processing and account management fees, distribution of third-party products, and earnings from foreign exchange business, which grew by 30.64% to Rs. 7,685.33 crores compared to Rs. 5,882.89 crores in the previous year.

As of March 31, 2023, the Bank held Loan Related Provisions, which included a Specific provision of Rs. 4,041 crores for non-performing accounts (towards PCR), Floating provisions of Rs. 70 crores (towards PCR), Standard contingent provisions of Rs. 1,900 crores surplus outside PCR, and Standard asset provisions of Rs. 1,313 crores, excluding contingent provisions. The proportion of restructured loans to the total loan book was as low as 0.84% as of March 31, 2023.

Driven by improved Operating Profit and asset quality, the Net Profit of the Bank for the year increased by 60.26% to Rs. 7,389.72 crores compared to Rs. 4,611.12 crores in the previous year. The Banks Net Non-Performing Assets Ratio improved to 0.59% as of March 31, 2023, and the Return on Assets for the year stood at 1.81%.

During the current year, the Bank did not raise any non-equity Tier 1 capital and Tier 2 capital. However, it redeemed unsecured, redeemable, subordinated Tier 1 Basel III compliant non-convertible taxable Bonds worth Rs. 1,000 crores by exercising the call option on April 18, 2022.

In terms of expansion, the Bank increased its branch network to 2,606 branches/banking outlets from 2,265 branches/banking outlets at the beginning of the year. Additionally, the extended network includes 2,878 ATMs, 3,303 branches of BFIL, and 582 outlets of IndusInd Marketing and Financial Services Private Limited, an associate entity.

3. Consumer Banking

3.1. Consumer liabilities

The Consumer Bank business sustained its growth trajectory, experiencing robust expansion on the liabilities front across all client segments. A key element of the Banks strategy is the realization of deposits and the Consumer Bank made significant progress in this area. Consumer Liabilities witnessed an impressive Y-o-Y growth, primarily fueled by the acquisition of new customers, branch expansion, strengthened client relationships and effective cross-selling across various business units. These achievements were made possible through concerted efforts across client segments, employing a comprehensive approach to attract retail deposits by leveraging the potential of digital technology and analytics. The Bank successfully launched an omnichannel advertising campaign highlighting its outstanding savings product, IndusInds Savings, which was recognized as the industrys best by Financial Express in the previous year. Additionally, the Bank conducted an extensive campaign promoting its Merchant Payment solution and Current Account offering for retailers. As a result of these initiatives, the Bank achieved the highest-ever new Current Account and Savings Account (CASA) acquisition in FY2023, with market beating 21% Y-o-Y growth in retail deposits, solidifying the Banks position as a market leader and enhancing its liabilities profile.

3.2. NRI banking

The NRI segment has demonstrated continuous growth, with IndusInd Banks market share in NRI liabilities doubling since March 2019. This achievement has established the Bank as a vital player in the NRI banking landscape. In a bid to further strengthen its position, the Bank relaunched its Indus Fast Remit platform in specific corridors, enabling NRI clients to send money to India using a multi-partner platform. In the years ahead, the Bank will continue enhancing this platform by expanding partner options and currencies. Underscoring its commitment to the NRI community, IndusInd Bank introduced a global offering through its IFSC GIFT City branch - International Banking Unit (IBU). To provide NRI clients with a seamless onboarding experience, the Bank offers a robust NRI Non-Face to Face Digital Account Opening platform, allowing clients to open accounts from the comfort of their overseas homes. Recognizing the importance of dedicated services, IndusInd Bank has designated 203 branches as NRI-focused branches. Moreover, the Bank has established a strong Virtual Service team, digital banking platforms and 24x7 Toll-Free Call Center numbers in select countries to cater to NRI clients residing outside India.

3.3. SME and Merchant acquiring

The Bank focused on strengthening its Merchant Acquisition business by making notable improvements to the Indus Merchant Solutions (IMS) App and enhancing its digital payment collection capabilities. As part of its commitment to providing comprehensive payment solutions, the Bank introduced a 4G soundbox to its range of offerings for merchant communities. This addition contributed to a threefold increase in the Banks merchant base as of March 2023, compared to the previous year. The expansion of the Banks geographic reach, coupled with the enhanced productivity facilitated by the IMS App, was instrumental in achieving this growth. Furthermore, the Indus Merchant Solutions App received recognition at the 10th edition payment industry awards in 2023, winning the esteemed title of Best Merchant Acquirer of the Year.

3.4. Retail Payments

The retail deposit growth surpassed market expectations, attributable to the higher-than-market Y-o-Y growth in UPI transactions leading to best-in-class digital payments throughput per customer. The transaction velocity per debit card user stood at an impressive 10 transactions per month, exceeding the industry average of 9 transactions per month. This achievement was made possible through persona-based campaigns designed to encourage digital payment activation across various channels and merchant categories. To further incentivize card usage, the Bank introduced the market-leading Delights Debit card, offering esteemed customers up to 5% cashback on transactions across merchant categories, thus driving card spending. Additionally, the Bank upgraded its IndusMobile app to enhance user experience, introducing auto-pay facilities for bills and offering the convenience of making recharge payments through Bank accounts or cards as payment options.

3.5. Client Wealth Management

The Bank is dedicated to providing its customers with a diverse range of wealth and risk solution services that enable them to achieve their financial goals and secure their future. With a focus on customization, the Bank offers a comprehensive suite of products and services tailored to meet the specific needs of each client. To ensure convenience and accessibility, the Bank is committed to investing in digital solutions for the seamless delivery of wealth and risk products through various channels. The Bank has established a wide network of partners to offer a robust selection of Wealth and Risk Solutions. These solutions are made available through two life insurers, three general insurers, one standalone health insurer and more than 25 Asset Management Companies (AMCs).

As of March 31, 2023, the Bank managed substantial Assets Under Management (AUM) of Rs. 1,82,208 crores on behalf of its customers. These assets include investments in Mutual Funds, Portfolio Management Services (PMS), Alternate Investment Funds (AIF) and Demat accounts.

3.6. RACC – Retail Assets and Cards

RACC continued to scale up its asset franchise which inter alia includes Retail Agriculture, Loan Against Property, Credit Cards, Personal Loans, Business Loans, Loan Against Card Receivable, Gold Loans, Healthcare Finance, ODFD, and Loan Against Securities. Additionally, the RACC team also soft launched Prime Home Loans in select geographies. Overall, in RACC FY2023, Retail Assets disbursements grew by 83% Y-o-Y and Cards Spends grew by 61% Y-o-Y, as a result, the book grew by 26% Y-o-Y. Debt Management teams delivered superior performance across all key vectors, leading to significant improvement in risk cost. FY2023 risk costs were <2% of ANR (Average Net Receivables) and overall delinquencies closed at a record low for all key products.

3.6.1 Retail Agriculture business

The Bank has sanctioned an impressive amount of over Rs. 2,600 crores to support more than 17,000 farming households across 105 districts in Madhya Pradesh, Gujarat, Haryana, Punjab, Kerala, Rajasthan, Maharashtra and Chhattisgarh. These funds are intended to aid Agricultural and Agri-allied activities in these regions.

In line with its commitment to enhancing digital literacy, the Bank continues to empower its customers by promoting and educating them about the benefits of cashless transactions through RuPay Debit Card and Net/Mobile Banking.

The Bank has extended loans to small and marginal farmers, women beneficiaries and other economically disadvantaged sections of society, reafirming its dedication to serving these segments. By actively engaging with stakeholders in the Agri Value chain, the Bank remains informed about the latest developments in the agricultural sector, enabling it to provide the best-suited products to its customers.

To ensure the financial security of its customers, the Bank offers a unique insurance facility that safeguards their loan liabilities in the event of death or disability. Additionally, through the Pradhan Mantri Fasal Bima Yojana (PMFBY) crop insurance scheme, the Bank provides crop insurance to protect farmers against losses. The Bank also facilitates the implementation of government subsidy schemes such as Kisan Credit Card (KCC) Interest subvention and Pashu KCC for individual farmers.

3.6.2 Loan Against Property

IndusInd Banks Loan Against Property (LAP) business gathered momentum in FY2023, with annual disbursals and books exceeding the previous fiscal year. LAP disbursements grew by 39% Y-o-Y along with 30% Y-o-Y growth in Fee income. The book grew by 9.3% Y-o-Y to Rs. 9,640 crores. The growth was driven by branch channel, thereby reducing the cost of acquisition of loans. Internal credit score was introduced in FY2023 which has provided a tool to assess the overall risk of new customers availing LAP. New product variants were introduced in FY2023 which will further help increase sourcing and revenue.

3.6.3 Personal Loans

Personal loan disbursements grew by 106% Y-o-Y in net value and 62% Y-o-Y in volume along with 46% Y-o-Y growth in Fee income. The focus was on cross-selling Personal Loans to existing Savings account customers and other clients of the Bank using analytics tools. The product has a live portfolio size of Rs. 5,351 crores with 1.87 lakh accounts being onboarded in FY2023 itself.

3.6.4 Credit Cards

The Bank continues to build a strong Credit card franchisee and has made rapid strides in FY2023. With the adoption of the new digital platform: EasyCredit by large channels, customer acquisition through the digital platform has grown from 85-95%+ and the business is confident to achieve 100% digital customer onboarding in the coming year. Credit Cards has over 2.2 million Cards in Force (CIF) as of FY2023. Spends growth continued its upward trajectory for the overall industry and IndusInd Bank continued to increase its throughput faster than the industry which has helped the Bank improve its market share in overall spending volumes. Total Spends in the financial year grew by 61% Y-o-Y. Portfolio metrics have shown a robust growth in numbers. ENR (End Net Receivable) grew by 52% compared to the last fiscal. To cater to changing customer behaviour with best-in-class offerings, Bank launched the Cobranded EazyDiner IndusInd Credit Card. EazyDiner is an integrated app offering the most enjoyable, authentic and friction-free table booking experience with great discounts at top hotels and restaurants in India & Dubai. The EazyDiner IndusInd Bank was awarded the Co-branded Credit Card of 2023 in the recently concluded 10th Edition Payment Industry Awards.

3.6.5 Business Banking Group

With the Governments and the financial sectors efforts to create all around support mechanisms for MSMEs, the demand for MSME credit increased in FY23. Growing digital infrastructure for the MSME sector eased credit availability for this segment. The Banks MSME Book under business banking grew by 16% Y-o-Y. The asset growth has bounced back, as NTB acquisition has been scaled up leveraging digital products like ‘GST and ‘Banking Secured Overdraft launched during the last financial year. The Business Banking unit is the major contributor to retail deposits from MSME franchise, and FY23 has been a phenomenal year with liability growth surpassing asset growth, reflecting increasing focus on liabilities. In terms of asset quality, the quality of the book which was earlier impacted by COVID, has stabilized. Further, this segment being a MSME-focused segment, furthers the Banks presence in Priority Sector Lending. Going into PC-6, the Bank continues its strong focus on the Micro, Small, and Medium Enterprises (MSME) segment business, and considers them as one of the core growth engines, augmenting the Banks asset book and granularity. Further, considering the growing focus of the Government for providing ease of doing business for MSMEs, the Bank anticipates significant growth in the portfolio in the coming years.

Digital is one of the core growth levers to achieve the scale in this segment, and the Bank aims at strengthen its digital capabilities with investment in digital infrastructure. Digital transformation is aimed across clients as well as other internal/external stakeholders.

With continuous enhancement of client experience and addressing clients financial needs across business and personal wallet, the Bank also aims at providing highest quality servicing to clients and continually invests in revamping processes and new products towards this direction.

4. ARs. uent Banking

The ARs. uent banking business offers a unique personalized banking experience to the aRs. uent client segment across India and International markets, via its flagship brand PIONEER Banking and Wealth Management. Built on the bedrock of trust, transparency, simplicity and service, reinforced by the strength of technology and innovation, IndusInd PIONEER is uniquely poised to leverage this rapidly growing client segment. The ARs. uent business is a key focus area of the Bank and continues to demonstrate robust growth across key metrics. The liability balance sheet showed sustained growth in FY2023 driven by granular CASA. The Fee delivery grew by 30% over the previous year, which was well diversified with secular growth across products. The ARs. uent business operates with a strong focus on client-centricity, offering a personalized approach to wealth creation, management, and preservation. Their dedicated team of experts guides clients throughout the entire wealth cycle, ensuring a seamless experience. The hallmark of the ARs. uent Banking Unit lies in delivering superior client service, which has not only set them apart from the competition but also fueled their business growth. The state-of-the-art PIONEER lobbies, managed by a dedicated team of Service RMs, provide a unique and personalized experience unparalleled in the industry. Customers are pampered in these lobbies, where they can discuss their banking requirements in the comfort of a private meeting lounge or even book a conference room to conduct their private business meetings.

The service proposition is designed for seamless delivery through options like a one-touch Relationship Manager (RM) call button in the mobile app, video calling, doorstep banking, priority processing and queue jump both at the front and back-end systems.

With superior credit and wealth solutions, holistic trade and forex products, and GIFT City offerings, the ARs. uent Business offers best-in-classuniversalbankingservicestoclientsfortheirindividual and Business Banking requirements. Customers benefit from timely insights and customized offers provided by the business using data analytics and a nuanced understanding of various sub-segments within ARs. uent. PIONEER continues to offer best-in-class lifestyle benefits for aRs. uent clientele. With segment-first metal credit and debit cards, unlimited rounds of Golf games and lessons, unlimited international airport lounge access, premium movie vouchers and invites to VIP events, PIONEER has increasingly become the brand of choice for this client segment.

5. Consumer Finance Division

The Consumer Finance Division (CFD) focusing on vehicle financing is one of the three areas of domain expertise of the Bank, with healthy market share across product segments, deep customer penetration and a well-managed business franchise. The CFD extends funding for a wide range of Vehicles/ Equipment, which includes Heavy, Light and Small Commercial Vehicles used for goods and Passenger Applications, Passenger Cars, Utility Vehicles, Two-Wheelers, Tractors, and Construction Equipment such as Excavators, Loaders, Tippers, Cranes, etc. Finance is extended for both, new and used assets in all the above segments. Housing loans for the low cost/ affordable housing segment has been launched a couple of years ago participating in the Housing for All project, a key focus area of the Government of India. Customers recouped their business and returned to normalcy. The revival was quick and the disbursements for year FY2022-23 was Rs. 46,309 crores as against Rs. 32,580 crores in FY 2021-22, an increase of 42% over FY2021-22. During FY2022 the disbursement towards new vehicles was Rs. 36,219 crores (43% increase), and used vehicles was at Rs. 9,751 crores, (48% increase). During the year, 10.73 lakh new loans have been sourced. Tractor funding, a major initiative towards Priority Sector Lending and Financial Inclusion, performed well during the year with the disbursement of Rs. 4,826 crores in FY2023 as against Rs. 4,084 crores in FY2022, an 18% growth over the previous year. Besides lending, CFD also earned a commission Income of Rs. 53.65 crores through the distribution of various third-party insurance products in the General Insurance segment.

The operations of CFD are well supported by a deep back office and the Document Storage and Retrieval Facility at the Banks Karapakkam Unit in Chennai. During the year, this Unit handled nearly 5 million transactions including loan bookings closure. CFD sources applications for all products through Android Tablets which has enabled a seamless credit and business approval process and has improved efficiency. All the field collection executives of the Division have been provided with Android mobile-based Collection App on the Bank-owned mobile devices, and the 12,000+ units in use is one of the largest deployment in the banking industry. It is integrated within the Airwatch MDM Container Model for data security and operates with data and access-controlled APN SIMS.

6. Bharat Financial Inclusion Limited

Bharat Financial Inclusion Limited (BFIL) serves as a wholly-owned subsidiary of the Bank, acts as a business correspondent for promoting financial inclusion and offers various banking services such as microfinance loans, merchant acquisition, liability products, remittances, and more. Over a decade ago, IndusInd Bank entered the microfinance lending sector through partnerships with microfinance lenders, and the acquisition of Bharat Financial Inclusion Limited (BFIL) in 2019 positioned the Bank as one of Indias leading microfinance providers. BFIL has an extensive distribution network in rural areas, serving over 1,37,000 villages, and operates in 535 districts across 23 states as of March 2023, encompassing rural, semi-urban, and urban centers. With a dedicated team of approximately 33,000 field staff, BFIL facilitates daily financial transactions for customers, including small loan disbursements, installment repayments, opening savings and deposit accounts, insurance services, and fulfilling aspirations like owning a two-wheeler or consumer durable items. Having started as a micro-financier 25 years ago, BFIL currently caters to around 7.7 million borrowers under the Joint Liability Group (JLG) model. Its focus lies in supporting women entrepreneurs at the bottom of the economic pyramid, enabling them to achieve financial independence, good health, well-being, and quality education. Despite their rural backgrounds and limited technological proRs. ciency, BFIL assists these women in conducting financial transactions digitally. Most of these women engage in rural economic activities, such as livestock rearing, farming, producing agricultural products, crafting handmade goods, tailoring, and providing rural services. Under the JLG model, these women form groups of five members, and regular meetings are held at designated centers for the transparent processing of financial transactions. BFILs in-house technology platform facilitates real-time interaction between field personnel and microfinance customers during these meetings, covering everything from onboarding customers and forming groups to loan disbursements and collections. All processes are recorded digitally, eliminating the need for paperwork. The systems in place handle a large volume of transactions, with loan disbursals reaching speeds of up to 1.2 loans per second.

The Banks market standing and reputation are built upon responsible lending practices, respect for bottom-of-the-pyramid entrepreneurs, and prompt service delivery on the ground. Women are at the forefront of BFILs microfinance operations, and the loan, deposit, and insurance products offered to them promote their financial independence and entrepreneurial aspirations. As of the end of FY 2022-23, the Banks JLG-based loan book managed through BFIL, amounted to Rs. 32,215 crores. With BFILs assistance, the Bank aims to extend its reach to more women borrowers and their families, providing a wider range of banking services, such as individual loans, affordable housing loans, and micro-insurance products for comprehensive coverage.

Addressing the "Missing Middle," which comprises a significant entrepreneurial population managing small retail outlets across the country, BFILs Bharat Super Shop (BSS) vertical offers comprehensive banking services to this nano/micro-entrepreneur segment. Aligned with BFILs mission to serve the underserved, BSS provides merchants with a range of banking services, including zero-balance current accounts, recurring deposits, secured and unsecured working capital loans, payment services like UPI/QR codes, and Mobile/WhatsApp banking channels. BFILs Bharat Super Shop (BSS) field staff, totalling over 6,000, employ a paperless, digital, and technology-based approach to assist customers throughout their journey, right at their doorstep. This unique offering strikes the right balance between technology and human touch, enabling rapid resolution of customer queries while ensuring consistent and quality service whenever needed. As of March 2023, BSS operates in 500+ cities across 19 states, serving over 1 million retailers, around 6 lakh active borrowers and a loan book of Rs. 4,033 crores.

To bridge the last-mile gap and enhance financial inclusion in India, BFIL, in collaboration with IndusInd Bank, developed Bharat Money Store (BMS), a banking and transaction platform for Kirana Merchants. BMS aims to provide financial services to the general public, particularly in rural and remote areas. Equipped with basic smartphones and software, merchants serve as hyper-localized banking service providers, empowering the unbanked and underbanked populations and revolutionizing rural landscapes. BMS has a presence in 628 districts, covering over 48,000 villages across 11 states. During FY 2022-23, BMS enrolled over 1,00,000 merchants and served more than 10 million rural customers through essential banking and financial services, including Aadhaar-enabled remittances, opening savings and deposit accounts, utility payments, and more. In October 2022, IndusInd Bank entered an MOU with the State Government of Uttarakhand to extend banking services through BMS to over 600 Nyaya Panchayats. This pilot program can be expanded to include all Gram Panchayats, facilitating easy access to banking and financial services for the deep rural citizens of Uttarakhand. Since 2017, the BMS outlets, acting as sub-BC agents of the Bank, have facilitated transactions for over 58 million individual customers, with a total transaction value exceeding Rs. 13,200 crores. Additionally, BFIL provides working capital loans to merchants, supporting the growth of their businesses. As of FY 2022-23, the Asset POS for BMS reached Rs. 96 crores. In the non-MFI open-market segment, the BMS network allows access to a large customer base for liability products, positioning BFIL to acquire, serve, and transform the lives of rural customers.

As of March 2023, BFIL, with its motivated team of over 36,000 employees, serves approximately 10 million, customers maintaining an outstanding loan book of over Rs. 36,297 crores. During the year, disbursements exceeded Rs. 43,500 crores. Approximately 9,70,000 Bank customers serviced by BFIL hold over 14.2 million active accounts with IndusInd Bank, and the liability pool for all BFIL-serviced customers, including savings, current, recurring, and fixed deposit accounts, amounts to Rs. 2,344 crores as of March 2023.

CSR Initiatives

At BFIL, we firmly believe that sustainable growth involves uplifting communities. Through our Corporate Social Responsibility (CSR) initiatives, we strive to collaborate with communities and governments to improve the lives of people in the regions where we operate. Our CSR programs focus on livelihood enhancement, watershed development, education, healthcare, and safe drinking water availability in remote areas. One of our flagship programs, Bharat Sanjeevani, facilitates doorstep veterinary services for livestock owners, utilizing appropriate technology. This program received the National CSR Award from the Ministry of Corporate Affairs, Government of India, in 2019. Several state governments and cooperative milk federations have expressed interest in collaborating under the Bharat Sanjeevani program. In FY 2022-23, the program expanded its scope to include projects in Artificial Insemination in Himachal Pradesh, Karnataka, and Maharashtra in collaboration with respective state governments. The objective is to increase per capita milk availability and farmers income in the long run. The program benefited over 3,80,000 people, preventing economic losses of approximately Rs. 447 crores for farmers.

Under the "Pragat" program, a holistic village-level development initiative launched in collaboration with the Government of Karnataka in 2019, we implemented projects in 12 villages in the Kalburgi District. The program focuses on watershed management, healthcare, education, and safe drinking water. The Pragat Watershed model involves a joint community-led approach to sustainable resource management. It successfully restored and treated 17,157 hectares of watershed, conserving over 30,649 million liters of water, benefiting more than 13,750 farming families and enhancing their livelihoods. The project achieved a Social Return on Investment (SROI) of Rs. 46 in social value for every rupee invested over three years.

Pragat Health Care integrates a world-class healthcare delivery mechanism with the governments primary healthcare system. The program has provided healthcare services to over 48,953 individuals.

Pragat Education aims to improve foundation skills, numeracy, and literacy among children in 35 adopted schools. Post-implementation of the program, 95% of the children who were lagging in their studies reached proRs. ciency levels. The project achieved an SROI of Rs. 66 in social value for every rupee invested over three years.

Pragat Safe Drinking Water is a sustainable model that revives defunct RO water plants by integrating the financial and infrastructural resources of government departments and village-level Panchayats. The program has significantly increased access to safe drinking water, benefiting 65% of households (up from 4%), with approximately 2.01 lakh beneficiaries. The project achieved an SROI of Rs. 58 in social value for every rupee invested over three years.

BFILs CSR initiatives align with eleven of the seventeen Sustainable Development Goals set by the UN Conference on Sustainable Development.

7. Global Diamonds and Jewellery Group (GDJG)

The Gems and Jewellery Industry has been an important component of Indias export. The sector is one of the focused areas in Indias growth story, especially for promoting exports of goods and services. Apart from contributing to merchandise exports, the sector also provides massive employment in India and also promotes the growth of MSMEs. GDJG is the biggest player in financing this industry segment not only in India but also globally. This is one of the banks major domain leadership verticals. The Bank has been recognized by the Trade Council as a Center of Excellence through many awards and accolades, the latest award being, the Gems and Jewellery Export Promotion Council (GJEPC) sponsored by the Commerce Ministry of the Government of India, awarding the Bank as the Best Bank financing the industry in the category of ‘Highest Growth of limit sanctioned with Minimum base of Rs. 500 crores. GDJG, from predominantly being a mid-stream player for financing manufacturers of polished diamonds, has evolved to financing rough trading activities, polished distribution, Jewellery manufacturing and distribution, domestic retail jewellery and lab-grown Diamonds. Apart from financing through the domestic tariRs. area, GDJG has reached out to clients in Hong Kong, UAE, Belgium, USA and Luxembourg, etc. through GIFT City. The total client base comprises 41% MSME and the portfolio had zero delinquency during FY2023. The coverage model is based on relationship banking capturing the entire wallet of the client. It provides a huge cross-sell opportunity to the Bank for incremental assets, liabilities and revenue. The Bank is embarking upon community banking during this year.

8. Corporate and Commercial Banking Group (CCBG)

The Corporate and Commercial Banking Group of the Bank serves a wide range of corporates, starting from emerging mid-large Indian companies with an annual turnover of over Rs. 150 crores to large conglomerates, public sector undertakings, NBFCs, financial institutions and Indian branches of multinational corporations. The CCBG franchise offers a comprehensive corporate product suite to support the financial and strategical banking needs of the client during their entire business lifecycle including working capital finance, supply chain solutions, trade solutions, cash management services, capex and project financing, strategic advisory & financing, capital markets solutions, global market solutions, in addition to varied cross-bank products and services. In the last three-year planning exercise (PC-5) concluded in FY2023, the organization achieved success in Rs. ne-tuning their corporate book with normalized slippages, even while navigating the challenges posed by Covid-19. Through the structural reorganization of the business over the past 12 months to align its coverage model with strategic priorities, the unit was able to get back on track for growth.

Despite facing global headwinds, Indias economy performed well in FY2023. The credit expansion across various sectors, including the corporate sector, was supported by government-led initiatives and investments in infrastructure and manufacturing. There was also an increasing demand for credit from MSMEs, primarily driven by higher working capital requirements. The corporate sector also observed a shift in preferred financing avenues, with a reduction in offshore issuances and investments by Private Equity (PE)/Venture Capital (VC). The corporate sectors funding requirements were largely fulfilled through domestic resources, resulting in increased reliance on Bank borrowing for operational and capital expenditure financing. The growth in deposits over the past few years enabled banks to meet the rising loan demand. Indias corporate credit profile in FY2023 was one of the healthiest in over a decade, characterized by ongoing deleveraging, steady revenue and profitability growth. As of March 31, 2023, the organizations corporate book stood at Rs. 1,34,150 crores, experiencing Y-o-Y growth of 19-20% for the sixth consecutive quarter, with slippages remaining within an expected range. The credit expansion showed widespread growth across large, mid-sized, and small corporates in FY2023, with small corporates growing at a faster pace, aligning with the banks strategic focus on developing its small and emerging mid-corporate book. Looking ahead to FY2024, the organization anticipates the momentum in credit growth to continue, at least during the initial quarters, as the overall capital expenditure cycle strengthens. In the upcoming Planning Cycle (PC-6), the units focus is on achieving growth with improved profitability. The Bank has identified four strategic priorities to guide its efforts: a) Deepening corporate franchise across segments with a focus on small and mid-corporates. b) Sharpening client profitability through continued focus on annuity income and new revenue streams. c) Enhancing a sustainable and cost-eRs. ective liability franchise d) Institutionalizing client experience for differentiated service. The MSME segment, present across their corporate and consumer franchises, remains a focal point for the organization. With the units 3D (Distribution; Data; Digital) strategy, aimed at scaling productivity, this segment will continue to be the growth frontier for the banks corporate franchise.

8.1 Client Coverage groups

Global Corporates and Institutional Banking Group

This unit was carved out in March 2022 to focus strategically on conglomerates and to strengthen the Banks position in serving multinational corporations (MNC), given the competitive nature of this segment. Corporates in this segment are sought after and have evolved, complicated financing requirements and high service delivery standards and require customized product solutions owing to the clients group structure and presence across geographies and sectors. The unit aims to be a strategic partner to the banks clients within this segment by providing dedicated & bespoke coverage, a strong panel of embedded product partners and differentiated client & service delivery. During FY2023, the unit has deepened the Banks wallet of shares in many new and existing credit relationships and is witnessing strong momentum in onboarding new conglomerates. As the Bank steps into the next financial year, the focus would be to further diversify the book by deepening underpenetrated regions and strengthening MNC franchise.

Corporate Banking Group covering Large & Mid-corporates

Operating in 14 cities, the Banks Large and Mid-Corporates Group caters to a wide range of businesses across diverse industries and sectors, offering comprehensive financial products and services. The unit specializes in meeting the ever-changing needs of the Banks clients and operates with an objective to expand the Banks franchise presence especially in the mid-corporate segment. Additionally, the unit aims to foster strong partnerships with large corporates, supporting them throughout their growth journeys. The unit is guided by the Banks ‘relationship-lending approach which provides a strong foothold with the banks clients and enhances product penetration in this segment. Focusing on client relationships at all levels has enabled the unit to detect and act on early warning signals, maintaining low stress in the book. The unit also has a significant liability book spread across customers providing granularity in deposits as well.

FY2023 showed a healthy growth trajectory for the unit across the asset and liabilities book. In the upcoming Planning Cycle (PC-6), the focus of the unit is to further diversify the portfolio by onboarding new clients from industries that are sunrise industries and offer high growth potential. The unit aims to increase the share of mid-corporates through strong promoter connections and be able to capture the entire ecosystems opportunities.

SME Business Group

SME Business Group, carved out in FY2022, aims to cater to the banking requirements of emerging mid-corporate enterprises. In FY2023, the unit has shown strong growth of 40%+ Y-o-Y (albeit on a small base).

Granular businesses have been a key focus for the corporate franchise and this unit coupled with existing units focused on small businesses, has resulted in small businesses as a percentage of corporate business to increase from 8% in March 2022 to 10% in March 2023. The Banks small businesses have exhibited continued business momentum for the last four consecutive quarters. Going into FY2024 and PC-6, the unit continues to focus on the Banks strategic initiatives to scale up these small business units. One of the main focuses in the upcoming years is to improve distribution through the Phygital channel strategy, which involves utilizing both physical and digital channels. This includes leveraging the banks branch network, integrating digital solutions at every stage of the clients onboarding journey and providing seamless servicing and engagement.

8.2 Specialized Business Verticals

Through dedicated coverage in the identified specialized sectors, the Corporate and Commercial Banking Group (CCBG) group aims to provide a customized product & services suite backed by in-house domain expertise:

Education

The unit provides a consultative approach to banking solutions for clients operating in the Education Segment with a suite of financial products and services ranging from project financing, Cash Management, virtual account solutions, Escrow services and Digital services for end-to-end fee collection & reconciliation.

Healthcare

The unit services the healthcare businesses ecosystem, majorly hospitals (Primary, Secondary and Tertiary care units) and Large Diagnostics chains. The unit is complemented by the Banks presence in the Banks consumer franchise, wherein it provides medical equipment loans to doctors. Under Education & Healthcare, the unit aims to further strengthen the Banks franchise in this segment by leveraging on the ‘ONE Bank approach and catering to the diverse requirements of all players in the ecosystem across retail products, corporate lending products, cash management & advisory.

Financial Services

The unit provides financial products and services to a wide range of players in the financial services sector, including NBFCs, HFCs, insurance companies, mutual funds and public financial institutions. The unit has developed strong relationships with key players, with over 90% of its portfolio rated ‘A or higher. The unit has established itself as a preferred transaction banking partner and has a leading market share in cash management and escrow services for top NBFCs. With fintech and other new-age financial services providers becoming mainstream, the unit aims to focus on tapping this opportunity through a partnership & program-based approach. The unit has already made in-roads into well-capitalized and proven Rs. n-techs across their cash management journey.

Real Estate

The unit provides product offerings for commercial and residential projects including LRD and construction finance. It also offers advisory for REITs and syndication. The unit follows a targeted underwriting strategy with a micro-market approach, resulting in a resilient and robust portfolio.

Agriculture Business Group

Following a value chain financing approach, the banks unit provides comprehensive coverage of the entire Agri Value Chain, from High Networth Individuals (HNI) farmers to agri corporates. With a strong presence in 17 states, operating across 60 locations and catering to 45 different commodities, the unit has established a robust foothold in core agriculture-based markets. The Banks innovative Agri Project Finance, Agri Trade Finance and Agri Infrastructure Finance products and services have received acclaim in the industry.

Currently, the banks unit leads the way in commodity funding through the banks flagship Pledge Finance product. The unit is progressively focusing on mid-size corporates in the food and agriculture sectors, positioning the Bank as a significant player in the dairy financing segment. Leveraging the banks subject matter expertise in the agriculture domain and the success the unit has achieved in the dairy sector, it aims to expand the Banks presence into selected sub-sectors such as commodities and edible oils. Furthermore, the unit has played a pivotal role in boosting the Banks liability business and is a major contributor to the Priority Sector Lending (PSL) targets of the Bank.

8.3 Supply Chain Finance (SCF)

The unit provides comprehensive financing solutions including channel finance and vendor finance catering to the financing needs of dealers/vendors of large and mid-corporates across industries, of which the key ones are Auto and Auto Original Equipment Manufacturers (OEMs), Steel and Consumer Durables. The Supply Chain Finance product offered by the unit has facilitated the development of strong relationships with large corporations, with the support of a dedicated and experienced relationship team, strong product propositions and seamless services. Using a hub and spoke model, the unit covers more than 250 business locations, serving around 2000 dealers and 3000 suppliers through a range of comprehensive product structures. Our portfolio under supply chain financing has been one of the key contributors to the initiative of portfolio granularity for corporate franchises. SCF unit clocked a Y-o-Y growth of over 40% the banks comprehensive product solutions are one of the best-in-class which is further validated by various accolades received. The unit received several recognitions at International and Domestic platforms for SCF solutions/business.

The Bank has entered a partial guarantee program with the Asian Development Bank with an initial outlay of $70 million exclusively towards promoting supply chain finance solutions in India. With supply chain finance (SCF) being a focus area, the Bank has initiated a host of strategic efforts including the launch of new ESG/ Green finance product structures in SCF.

In addition to this, the Bank has recently launched a state-of-the-art digital portal for SCF products – ‘Early Credit enabling 24*7 seamless processing of SCF transactions for corporates, suppliers and dealers. Digitization has been one of the key contributors to the unit growth story and the Bank will continue to invest in the end-to-end digitization of the customer journey.

The Bank has been able to maintain a high-quality portfolio in its SCF book and achieve significant growth in the portfolio during the current planning cycle, owing to its strict governance processes and comprehensive portfolio monitoring tools.

8.4 Project Finance

The Project Finance unit provides financial solutions for projects in various sectors, including Wind Energy, Solar Energy, Hybrid Projects, Roads, Logistics, Water and Power Transmission & Distribution. With strong expertise in project financing, the unit has successfully underwritten and syndicated projects for renowned infrastructure players in the country.

In line with the Banks sustainability strategy, the unit has expanded the Banks focus on Project Finance to include sectors that support Sustainable Development Goals (SDGs). Over the years, the Bank has extended financing to projects in sectors such as Renewables, Water Treatment, E-mobility, Energy Efficiency and City Gas Distribution. By investing in these sectors, the Bank contributes to sustainable development while meeting the evolving needs of the Banks clients.

The unit has been the Banks pillar of strength in creating value for the clients and the Bank. It has developed significant underwriting and syndication abilities and showcased its structuring capabilities through its deep understanding of the Transportation, Energy and Water sector. With the increased focus of the Government on Infrastructure development, the Unit is well poised to take advantage of the opportunities that would come by.

8.5 Investment Banking

The Banks Investment Banking unit specializes in providing corporate finance advisory services, encompassing equity and debt solutions, to Indian business conglomerates across an array of sectors. The Bank caters to a wide range of industries, including but not limited to, BFSI, Renewable Energy EV - mobility solutions, Fintech/Digital Tech, Healthcare, Hospitality Logistics, Education, Real Estate and the entire spectrum of Industrials and Manufacturing.

The Investment Banking unit provides strategic solutions across M&A Advisory, Private Equity Advisory and Debt Capital Markets (DCM) to aid growth, capitalization or consolidation initiatives for the banks clients. This is facilitated by the banks expertise across various investment banking products and well-entrenched relationships with the investor community, market intermediaries & Indian and International corporates enabling the Bank to act as a one-stop solution provider for both equity and debt.

The Investment Banking team is currently handling client requirements across sectors and products including M&A, Private Equity/VC fundraising, & Financing (INR & USD)/Mezzanine capital raise.

The well-established DCM team given their sector-agnostic expertise continues to partner with other units in the Bank to provide exclusive debt solutions for the Banks clients across project finance, structured finance, foreign currency, working capital, securitization, off-balance sheet, mezzanine, acquisition financing etc. In addition to employing a debt underwriting and sell-down strategy, the DCM team has been highly engaged in providing debt advisory and fundraising services for corporate clients. This involves syndicating the debt with reputable institutions that align with the clients specific end-use requirements, all while adhering to the local regulatory framework. This is enabled by leveraging the banks excellent distribution reach in Banks (Private, Public & Foreign), NBFCs, asset management companies (mutual funds, credit funds, impact funds, infra debt funds etc.), FPIs, insurance companies, multilateral institutions, etc. With a remarkable track record, the Bank has established itself as one of the leading Mandated Lead Arrangers (INR Loan Borrowings by Refinitiv) in India. In CY2022, the Bank secured an impressive 2nd rank in both deal count and deal volumes. This consistent upward trajectory is evident in the banks league table position, climbing from 6th place in CY2016 to 4th place in CY2019 and maintaining the 2nd position ever since. The Banks strong performance is a testament to its expertise and commitment to delivering exceptional financial solutions to its clients.

8.6 Public Sector Group

The Public Sector Group cultivates close ties with a variety of Public Sector Undertakings (PSUs), including illustrious Maharatnas, Navratnas and Mini Ratnas controlled by the Central Government and certain State Governments. Because of the banks singular focus, we can comprehend and meet the specific needs and goals of these prestigious PSUs.

The PSU Assets are preferred by many lenders considering the lower delinquencies and hence the Assets portfolio growth is achieved under stiRs. competition from all banks and at competitive pricing. PSUs also act as a source of large Liability books and Current Account floats for the Bank which has been growing over the years. The group extends tailored solutions to PSU clients across various domains, encompassing Trade, Forex, Cash management and an array of digital products. Moreover, a comprehensive range of Asset products, including Term Loans, Working Capital Finance, Bonds and NCDs, among others, are also available to these esteemed clients, meticulously customized to meet their specific requirements. The Bank offers targeted Retail Banking products to the employees of its PSU clients, such as Salary Accounts, Credit Cards and Retail loans amongst junior and middle-level managers and a PIONEER range of products amongst the senior management team. The Bank is keen to garner increased market share in this space and be a sizable banking partner to strategic large PSUs, which until recently, was the exclusive domain of large banks.

8.7 Financial Institution Group

Within the Bank, the Financial Institution Group (FIG) stands as a pivotal business unit, entrusted with the crucial task of overseeing and nurturing relationships with diverse categories of Financial Intermediaries in the global financial landscape. This unit manages relationships with a wide spectrum of financial Institutions, including Domestic Banks, International Banks, Development Financial Institutions (DFIs), Export Credit Agencies (ECAs) and Multilateral Financial Institutions (MFIs), ensuring seamless collaboration and mutual growth. The unit also manages and supervises the Correspondent Banking network of the Bank comprising the banks network of Nostro and Vostro Accounts and RMA arrangements with multiple banks across the globe. FIG also plays a crucial role in framing and managing the Correspondent Banking Policy and Bank Risk Policy of the Bank. Over the years, FIG has evolved into a specialized sectoral vertical of the Bank, managing diverse roles from business origination and facilitation to policymaking and risk management, along with their primary role as the Channel Manager of the Banks correspondent banking network. Despite the headwinds in the global trade and payments landscape due to the ongoing geopolitical tensions and turbulence in the global financial market, FIG has acquitted itself very well in the year under review, helping the Bank to offer superior correspondent banking services to the clients. FIG also contributed significantly to the Banks overall top line and bottom line by building a profitable and high-quality FI Book. The unit has also contributed actively in areas like resource raising and balance sheet management, working side by side with the Global Markets Group. During the year FIG helped in generating liquidity from global and domestic financial institutions to the tune of $ 5 billion through market borrowings, syndicated/bilateral loans, inter-bank deposits, refinance, etc. The Bank conducts its FI Business in strict conformity with applicable domestic and international laws and abides by various global sanctions as applicable to Indian banks from time to time.

8.8 International Financial Services Center Banking Unit (IBU)

The International Financial Services Center Banking Unit (IBU), which had a balance sheet size of US$2.36 billion as of March 31, 2023, has seen extraordinary growth. International Retail Offerings, External Commercial Borrowings (ECBs), Trade Credits, Loans to Overseas Entities, Non-Funded Products, Swaps and Derivatives for Proprietary and Client portfolios are just a few of the wide variety of goods and services provided by the IBU. The IBU serves as a gateway to both established and untapped clients and product segments, making substantial contributions to the Banks Balance Sheet and profitability. With its comprehensive range of products in global currencies, the IBU plays a pivotal role in catering to the diverse needs of the large Indian diaspora. Additionally, the unit offers end-to-end solutions to large corporates with an international presence, leveraging its presence by participation in the global syndicated loan market and strengthening the Banks brand globally. Through these endeavors, the IBU enhances the Banks global reach and establishes itself as a trusted partner for clients worldwide. The Global Markets desk at IBU is leveraging its presence and strengthening the Banks ability to trade in non-deliverable derivatives contracts and other offshore products, enabling the Bank to serve the clients round-the-clock and creating a steady revenue stream. The Bank has also been at the forefront in formulating regulatory guidelines for IFSC Banking Units on FX and derivatives as a special invitee to the working committees formed by the IFSCA.

9. Digital Banking

The bank undertook several digital initiatives across all its lines of business and recorded strong growth in key metrics.

9.1 SME

IndusInd Bank has maintained its commitment to facilitating credit accessibility for micro, small, and medium enterprises (MSMEs) in the small and medium enterprise (SME) sector. The bank has actively implemented multiple digitalization initiatives across its asset products to achieve this goal. Its digital lending platform, IndusEasyCredit for Business, now offers a comprehensive range of lending products, including secured and unsecured loans, with loan limits extending up to Rs. 2 crores. Leveraging its advanced underwriting engine, powered by cutting-edge analytics and extensive data from various public and proprietary sources, IndusInd Bank can disburse loans of up to 20 Lakhs in less than 10 minutes. The banks efforts in this area were recognized when the IndusEasyCredit platform won the "SME connect" category at the 5th India BFSI Conclave & Awards held in Mumbai.

On the liabilities side, IndusInd Bank introduced a convenient digital journey for individuals and proprietors called "Do-it-yourself (DIY) Video KYC current account." This initiative enables customers to digitally open a current account within 15 minutes from anywhere, eliminating the need to visit a physical bank branch.

Throughout the year, IndusInd Bank witnessed significant growth and engagement on its digital platform for merchants, known as Indus Merchant Solutions. The monthly active user base on the platform increased sevenfold year-on-year, with approximately 7% of the banks active merchant base now onboarded digitally through this platform. To enhance the merchant experience, the bank introduced real-time event-based engagement capabilities. IndusInd Bank remains committed to serving merchants better and plans to make the platform available in Hindi and eight other vernacular languages, including Marathi, Bengali, Gujarati, Telugu, Tamil, Kannada, Malayalam, and Punjabi. This move aims to promote wider adoption among merchants across India. Indus Merchant Solutions received the prestigious "Best Merchant Acquirer" award at the 10th Industry Payments Awards held in Mumbai.

In the realm of payments, IndusInd Bank was among the early adopters to offer sound boxes to its merchants, enhancing their confidence in accepting digital payments. Merchants can now request sound boxes digitally through the Indus Merchant Solutions platform. Additionally, following the RBIs approval to collect UPI payments via Rupay credit cards, IndusInd Banks QR codes are now equipped to facilitate payment collection through this mode for merchants.

9.2 Individual

IndusInd Bank played a vital role in fuelling growth within the individual segment through digitalization. The Bank delivered an exceptional, tailored, and readily accessible banking experience to its customers while enhancing operational efficiency. In the previous fiscal year, a remarkable 93% of all retail transactions were conducted digitally, and 76% of service requests were processed through digital channels. The Bank witnessed a noteworthy Y-o-Y growth of 30% in the monthly active user base of its mobile app, accompanied by a significant 60% increase in mobile transaction volume. Furthermore, the Bank experienced a substantial expansion in its alternative channels, with a 33% rise in the user base for WhatsApp Banking and a remarkable 66% surge in monthly active users for ChatBot.

IndusMobile

As part of IndusInd Banks strategic approach to foster personalized interactions and engagement across multiple channels, the Bank introduced real-time events-based engagement capabilities within the IndusMobile app. This empowers the Bank to send tailored communications and prompts to its customers based on specific events. Furthermore, the Bank implemented several enhancements to improve user experience and functionality within its mobile app, resulting in a significant boost in the app ratings on both PlayStore (4.5) and AppStore (4.2).

To strengthen app security and protect customers, IndusInd Bank integrated One Span and LookOut SDK, effectively thwarting fraudsters and attackers from exploiting the app and ensuring a secure banking experience. In the Banks ongoing commitment to providing the best services, customers are enabled to openly share their feedback on PlayStore and AppStore directly from within the app. Additionally, customer NPS surveys were launched for both the Mobile and Net Banking platforms.

As a result, the Banks mobile app has witnessed remarkable growth, with mobile app transactions experiencing an astonishing 149% year-on-year increase and a 53% rise in FD sales value. These figures not only showcase the expanding customer base but also highlight the trust placed in the Banks digital channels.

Looking ahead, the Banks pipeline includes an overall revamp of the UI/UX, offering an enhanced experience for its PIONEER customers, as well as improving the existing UPI and investment journeys. The Bank is also working on the seamless integration of various cross-selling journeys, such as insurance, loans, and credit cards.

With an ever-improving user interface and innovative features, the Banks app remains committed to providing its esteemed customers with enhanced financial control and convenience.

IndusNet

The IndusNet platform, the popular Net-Banking service of the bank, achieved significant milestones in the FY2023, with a remarkable 20% increase in monthly active users (MAU). This application offers users a comprehensive view of their accounts (CASA), loans, cards, and investments, and facilitates transactions, placing great emphasis on enhancing the customer experience. IndusInd Bank, in its commitment to introducing new features, seamlessly integrated with the CBDT portal for direct tax payments and the GST portal for GST payments, enabling its customers to conveniently pay their taxes. In 2023 alone, the Banks IndusNet platform processed over 1 lakh tax payments, totalling an amount exceeding Rs. 400 Cr+. Furthermore, the Banks future plans involve expanding its tax payment capabilities by integrating with the tax platforms of various state governments to accommodate state tax payments.

In addition to its existing partnerships with esteemed organizations like Razorpay, BillDesk, Paytm, and PayU, the Bank has continued to forge alliances with partners such as Cashfree, EaseBuzz, JioPay, Xsilica, among others. These collaborations play a crucial role in fortifying the Banks digital payment ecosystem, promoting a seamless and secure payment experience for its customers.

Moreover, beyond serving as an on-demand servicing channel for customers, the Banks IndusNet platform has evolved into a pivotal cross-selling platform. The Bank witnessed a remarkable 50% year-on-year growth in fixed deposit (FD) sales through the platform. Furthermore, the Bank integrated its remittances platform, IndusFastRemit, to enhance its value proposition and further stimulate cross-selling opportunities.

The Bank prioritizes compliance and accords the utmost importance to adhering to multiple mandates issued by regulatory authorities such as the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI). By implementing these mandates, the Bank strives to provide a safe and secure banking environment for its customers.

Central Bank Digital Currency

IndusInd Bank proudly participated in the Reserve Bank of Indias (RBI)s Central Bank Digital Currency (CBDC) pilot, making it one of the select few banks to be involved in this ground-breaking initiative. The Bank played a pivotal role in launching and expanding the Digital Rupee, the latest form of sovereign currency introduced by the RBI. The Digital Rupee aims to fortify the countrys financial services and digital payments network, harnessing the advantages of blockchain technology to facilitate faster, more secure, and cost-eRs. ective transactions.

In April 2023, IndusInd Bank successfully launched its own Digital Rupee application, achieving the distinction of being the fastest among its peers to onboard the first 1,000 registered users. To encourage widespread adoption of the digital rupee, the Bank is conducting multiple campaigns to educate and onboard customers in 26 pilot cities, empowering them to transact using this digital currency.

In recognition of its expertise and commitment, the Bank has been designated as the lead bank for the cities of Indore and Hyderabad. In this capacity, the Bank provides extensive support to other institutions in expanding the digital rupee network, thereby contributing to its growth and development.

The Banks dedication to advancing the CBDC network is deeply ingrained in its core values. The Bank actively engages in upcoming initiatives, with a notable focus on CBDC-UPI QR interoperability, offine CBDC, and programmable CBDC. By participating in these initiatives, the Bank strives to enhance the functionality and accessibility of the CBDC ecosystem, ensuring its widespread benefits.

IndusInd Bank is proud to be at the forefront of this transformative digital currency initiative, revolutionizing the way financial transactions are conducted in the nation.

Digital GIFT CITY App

IndusInd Bank proudly maintains an active branch within Gujarat International Finance-Tec City (GIFT City), placing the Bank among a select group of organizations with a presence in this thriving location.

GIFT City is a visionary project of the Government of India, aimed at positioning the country as a global hub for international trade and enticing businesses worldwide to establish their operations within India. The city encompasses an International Financial Services Center (IFSC), which functions as a distinct economic zone. To attract global firms to the IFSC, the Government has established frameworks offering special benefits and concessions. These include, but are not limited to, tax advantages, streamlined regulations facilitating business operations, support for real estate, state-of-the-art physical infrastructure, and much more. Adhering to the Banks "Digital-First" approach for operations within GIFT City, IndusInd Bank is diligently working on launching a ground-breaking mobile application specifically tailored for GIFT City customers. Supported by efficient backend operations, technology-driven processes, and streamlined workflows, this industry-first app aims to significantly enhance the customer experience for remittance transactions.

By embracing the unique opportunities presented by GIFT City, IndusInd Bank is poised to provide exceptional financial services to customers operating within this dynamic ecosystem. The Bank is committed to leveraging cutting-edge technology and efficient operations to deliver seamless banking experiences that meet the evolving needs of customers in GIFT City.

Indus Easy Credit (for Individuals)

IndusInd Bank has achieved significant milestones over the past year with the successful launch of its digital platform, ‘Indus Easy Credit. This end-to-end digital sourcing platform has improved the Banks scalability and enabled it to effectively meet the increasing demands of customers. The Banks strategic focus on digital interventions has played a crucial role in driving its growth, streamlining processes, reducing turnaround times, and providing unparalleled convenience to customers.

The DIY (Do-It-Yourself) segment of the platform has experienced remarkable growth, with the overall value of assets in personal loans and credit cards increasing sixfold Y-o-Y. In terms of volumes, the growth has been even more impressive, with DIY Credit Cards growing by 10.2 times and DIY Personal Loans growing by 5.6 times.

To further strengthen its digital offerings and support its tech stack, the Bank has implemented several enhancements for credit cards and personal loans. These include the introduction of assisted Video KYC and co-browsing to improve conversion rates, enhance the customer experience, and increase the efficiency of tele support staff. The Bank has also revamped the user interface and user experience of the platform, making it more intuitive and user-friendly for customers.

In the realm of credit cards, the Bank has expanded its portfolio by launching various co-branded cards in addition to Easy Diner. These include Aura Edge credit cards for government sector employees and Nexxt Credit Card, Indias first interactive credit card with buttons. Furthermore, the Bank is on track to launch co-branded cards with two different international airlines, in addition to Club Vistara, to provide enhanced value and rewards to customers.

Aligned with its commitment to technological advancement, the Bank has successfully upgraded its loan origination capabilities by migrating to a modern, flexible Loan Origination System (LOS). This transition has allowed the Bank to streamline processes, enhance operational efficiency, and reduce the time for loan approvals to less than 5 minutes, meeting the evolving demands of customers.

Moreover, the Banks Indus Easy Credit digital stack and APIs have facilitated remarkable scalability and growth through strategic partnerships with fintech companies. These partnerships have enabled the Bank to expand its reach and offer innovative solutions to a wider customer base.

The Bank has prioritized industry-leading security practices and diligently complied with the Digital Lending Guidelines published by the Reserve Bank of India (RBI). This commitment to transparency and accountability has fostered trust among customers and solidiRs. ed the Banks reputation as a reliable financial institution.

Looking ahead, the Bank remains fully dedicated to continuous innovation, proactively anticipating customer needs, and delivering cutting-edge digital solutions that enhance the banking experience.

Savings Account and Fixed Deposits Online Platform

IndusInd Bank has achieved remarkable progress in enhancing the customer experience of its Online Account Opening process for Savings Accounts and Fixed Deposits over the previous year. Through a comprehensive revamp, the Bank has successfully optimized the process to be more user-friendly and intuitive, ensuring a seamless journey for customers. To further facilitate engagement and scalability, the Bank has also implemented Mo-engage, enabling it to engage with customers in a timely and relevant manner and reconnect with prospects who may have dropped off. These enhancements have not only improved operational efficiency but have also resulted in a notable 40% year-on-year increase in the number of savings accounts opened through the portal in DIY mode.

Looking ahead, the Banks primary focus remains on creating long-term value. It has strategically refined its campaigns to target customers who are genuinely interested and actively contribute to adding value to its liability book. By honing targeting strategies, the Bank aims to attract customers who align with its core business objectives, fostering sustainable growth and profitability.

Overall, these initiatives have significantly enhanced the customer experience and positioned IndusInd Bank for future success. The Bank remains steadfast in its commitment to continuous improvement and innovation as it strives to provide customers with the finest banking solutions and establish a robust foundation for long-term value creation.

Marketing

IndusInd Bank has implemented a comprehensive digital marketing strategy that encompasses all stages of the user funnel, from driving awareness to acquiring users, increasing activation, fostering engagement, and winning back at-risk customers. The banks plan is designed to effectively reach relevant customers at appropriate stages and intervals.

As a result of the Banks efforts to enhance campaign efficiency, the traRs. c to its product lead pages has significantly increased over the past financial year. The Savings Account lead page witnessed a growth of approximately 130%, Personal Loan saw a growth of about 120%, and the Credit Card page experienced a growth of around 70%. Additionally, the banks brand search volumes have seen an increase across all its digital product offerings.

The Banks social media endeavors to increase visibility and drive brand recall through moment marketing, thought leadership-based content and product feature promotions have successfully increased conversation currencies across all social platforms. A notable campaign for the bank was the Siddharth Malhotra campaign, which involved creating three short digital Rs. lms to promote specific features of the Savings Account.

IndusInd Bank has brought the performance marketing function entirely in-house, resulting in a significant reduction in customer acquisition cost (CAC) across channels for the individual segment. In the self-serve channels, the bank has effectively scaled Meta and Google campaigns across products, achieving a CAC reduction of approximately 60% on Meta platforms (Facebook and Instagram) and around 50% reduction in Google for asset products (credit cards and personal loans).

Starting from the first quarter of the year, the bank has expanded its advertising efforts to direct partner platforms such as Amazon, Flipkart, and PhonePe, leveraging its high-intent audience to acquire quality customers for the credit card business. The bank has optimized its CAC by approximately 60% over the next three quarters, enabling it to leverage these platforms at scale.

The Banks commitment to running experiments and growing the partner pool is evident through initiatives such as native advertising platforms like Outbrain, Taboola, and other ad networks like Airtel. Affiliate marketing has also witnessed significant growth over the last financial year, with a reduction of around 60% in CAC and an increase in the number of quality partners.

Furthermore, IndusInd Bank has successfully launched MSME app campaigns in-house, achieving a 50% reduction in overall CAC while scaling the top funnel.

In terms of recognition, the banks IndusEasyCredit platform received the award in the "SME connect" category at the 5th India BFSI Conclave & Awards held in Mumbai. Additionally, the Indus Merchant Solutions App was honoured with the "Best Merchant Acquirer" award at the 10th Industry Payments Awards held in Mumbai.

10. Global Markets Group

The Global Markets Group (GMG) comprises three main functions:

1. Asset Liability Management (ALM)

2. Trading (Rates, Equities, Foreign Exchange and Derivatives);

3. Client Sales, comprising, Financial Markets Sales and Solutions team, which provides hedging strategies to clients for their exposures across foreign exchange and interest rates, and the Credit Sales Team, which provides clients access to Debt Capital Markets.

The Asset Liability Management Unit manages various regulatory requirements including Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Liquidity Coverage Ratio (LCR), Intra-day Liquidity (IDL), Net Stable Funding Ratio (NSFR), as prescribed by the Reserve Bank of India and other regulating bodies. In addition, the Desk manages the day-to-day liquidity requirements of the Bank through appropriate funding avenues involving both, INR (Rs. ) and Foreign Currency. The liquidity and resource mobilisation strategy achieved significant efficiency in the Banks sourcing of funds across tenors with an optimal mix of Term Deposits, Market Borrowings and Refinance. The Trading Desk transacts across asset classes like Interest Rates. Equities, Foreign Exchange and Commodities. It strategizes and takes proprietary positions in Government Bonds, Corporate Debt, Equities, Interest Rates (INR and Foreign Currency), Interest Rate Futures and Currencies.

The Foreign Exchange and Derivatives Trading Desk focuses on Currency and Interest Rate Derivative products for proprietary positions and also acts as a liquidity provider – cum- market access in respect of client business. The desk is an active market-maker in the interbank market and has executed various products across asset classes with established market counterparties and valued corporates. The Equity Desk takes proprietary positions in both primary offerings as well as trades in listed securities. The Credit Sales desk is responsible for providing solutions to Corporate & Institutional clients looking to tap the Debt Capital Market for raising short term/long term funds through various instruments such as Bonds/Non-Convertible Debentures (NCDs)/ CPs, ZCBs, Tax free bonds, NCD cum warrants and other Non SLR instruments by acting as Arranger and/or investor for Primary NCD issuances. The team is also responsible for placement of such securities across various institutional clients / investors segments such as mutual funds, insurance companies, pension and provident fund, banks, NBFCs, Wealth Managers, Foreign Portfolio Investors (FPIs), Corporates, Alternate Investment Funds (AIFs), Family offices, etc. The team undertakes products as permitted in the board approved Funds & Investment Policy of the Bank. The Financial Markets Sales and Solutions team provides hedging solutions to clients across Large Corporates, Financial Institutions and Mid-market corporates and Consumer clients on their foreign exchange and interest rate exposures. The Bank enters into these transactions based on strict suitability, appropriateness and credit criteria. Besides the above Over-the-Counter (OTC) products, the Bank is also a Trading-cum-Clearing Member of NSE and BSE, which enables the Bank to offer a web-based platform across client segments for hedging their currency exposures in the exchange-traded currency derivatives market.

During the year, GMG continued to actively undertake proprietary and client hedges across FX, Interest Rates, Derivatives, Credit markets, besides Equity IPOs. The Bank has expanded its reach in offshore markets through the Global Markets Desk at its IBU in GIFT City and will further widen the range of products to be offered from IBU as permitted under the new liberalized guidelines of IFSCA.

The Bank has well laid-out Board-approved Funds & Investment and Risk Management Policies, Client Suitability and Appropriateness Policy, and appropriate systems support to monitor transactions and risk on a real-time basis. Given the dependency on System and Trading platforms, the Bank has been conducting Business Continuity Plan drills at regular intervals. The Bank has an Integrated Treasury application interfaced with the Risk Monitoring System that covers all Client and Trading products of the Global Markets business and provides seamless straight-through flow of transactions.

11. Transaction Banking Group

The Banks Transaction Banking Group (TBG) provides a complete range of products and services for Cash Management, Trade Services, Trade Finance and Global Remittances to Customers of all Business Units. These services are delivered through market-leading Digital Banking platforms.

Under the Cash Management Services (CMS) umbrella, the Bank offers customized and differentiated products to its Corporate and Consumer Banking customers, designed to improve efficiencies in their Payables and Receivables Management. The Bank has partnered with fintech players and integrated them with its digital banking platforms to enable seamless payment, collection and reconciliation solutions for its Customers. Anchor CMS solutions like Escrow and Nodal services, API-based e-Payments and e-Collections and structured solutions around UPI, NACH and BBPS provide large corporate clients with the ability to manage their fund flows and liquidity more efficiently. A strong product stack has enabled the bank in building scale to process large volumes of PPI, BBPS and NACH transactions for its customers. The Bank has also been a frontrunner in providing customized solutions for its Customers in the City Gas Distribution and Renewable Energy segments and is a dominant player in the NBFC sector. The Bank has launched a unique program with Raipur Municipal Corporation which is a QR based smart address system (Digital Door Number) to enable online payments for various municipal services availed by house owners. In addition to the above, the Bank has strengthened its presence in the Government segment by providing bespoke CMS solutions through multiple Digital platforms for e-Tendering, e-Procurement, GeM, PFMS and Subsidy management, improving efficiency for customers and increasing sustainable CASA flows for the Bank.

The Bank, under its Agency Bank license, has further deepened its strategic partnerships with the Central Government and enabled the Banks Customers to pay their Direct & indirect Taxes through their IndusInd Bank accounts – online or through the Banks branches. This will be further extended to enable collections of Customs Duty and Railway Freight payments. The Bank is also in the process of integrating with the State treasuries of two states for collection of the States Tax and non-Tax receipts.

The Banks Trade product is designed to address the requirements of Large, Medium and MSME customers, by providing short to medium-term Trade Financing complemented by a full suite of Trade services for Domestic and International Trade flows.

The Banks Exporter and Importer clients avail of various Trade Services related to Pre-shipment and Post-shipment financing, Export and Import Letters of Credit, Shipping Guarantees, Bank line discounting and Direct and Advance remittances. The Bank also offers Bank Guarantee services and caters to clients trade finance requirements for their offshore business units through its GIFT City branch.

The Bank continued to be one of the leading players facilitating India-linked Cross Border Remittances, enjoying a significant market share in LRS Outward Remittances from India and being a preferred India Correspondent for Overseas Banks, Exchange Houses and Money Services Business/Money Transfer Operators. Digital platforms are the foundation of all Transaction Banking products and the Bank continued to enhance its capabilities in this domain. Clients embraced the Banks platforms for initiating their Payments & Trade transactions and managing their Collections Digitally, with an increase in client adoption and transaction volumes across the Portals, Mobile Apps and API platforms. The platforms offer rich functionality for clients to initiate individual and bulk payments, payroll processing, Tax, EPFO and ESIC payments, Bank Guarantee and LC issuance, Inward and Outward Remittances and Import and Export collections. The platform also provides a comprehensive view of IDPMS/EDPMS Dashboards and allows for regularization thereof.

Digitizing Bank Guarantee issuance through initiatives such as eBG and Templated BGs is one of the marquee engagements undertaken by the Bank this year. This initiative involves automated issuance and processing of Bank guarantees leveraging the Banks Digital platform alongwith the recently launched NeSL platform. The success of this initiative has enabled theBanktoprovideendtoenddigitalexperiencetoclientsavailingits Bank Guarantee services. The Bank is also in the forefront in other Central Bank initiatives, including the launch of its Central Bank Digital Currency (CBDC) App for its customers.

12. Pan Bank Liabilities Group

To improve the Banks liability franchise and encourage the retailization and diversification of its liability base, the Pan Bank Liabilities Group (PBLG) was founded in FY2021. Supporting the Business Unit in mobilizing suitable liabilities, co-creating the Liability strategy and coordinating it with the Product and Operations teams are among the duties of the Group.

The PBLG was crucial in enabling 53% of additional deposits from granular sources throughout the course of the year, increasing the share of retail deposits in the Banks total deposit base. The Bank had strong growth across a variety of liability metrics, outpacing the sectors average growth rate.

The Unit has also been entrusted with the task of enhancing focus on diversification and accelerating demand liability generation from existing and new customers. The Group uses internal and external market data and best practices to progressively facilitate the delivery of a robust and sustainable liability portfolio meeting various regulatory parameters. The share of low-cost CASA deposits has grown in line with the plan. As a way to improve the sourcing of liabilities business and increase product penetration, PBLG has aggressively promoted inter-segment synergy projects. We have seen greater adoption of liability products among the Banks current clients because of this strategic approach, which has produced sustainable deposits and enhanced customer loyalty. The coordinated efforts within the

Bank has allowed the expansion of a varied and detailed liability book, demonstrating a good growth trend. Additionally, in line with the Banks goals in this area, its emphasis on retailization has led to an increase in deposits from retail and small company clients.

13. Financial Restructuring and Reconstruction Group

The Financial Restructuring and Reconstruction Group (FRRG) oversees all operations about the recovery of non-performing loans, restructuring of stressed assets and the sale of Non-performing Assets (NPA)/ stressed accounts. Additionally, the FRRG is entrusted with the responsibility of managing NCLT activities, including timely and centralized claim filing. To efficiently handle and monitor IBC-related activities, the FRRG has established a dedicated NCLT desk. The Bank has also actively utilized the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) and The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDB Act) for recovery of dues. In addition to this, the Bank is also actively utilizing other tools provided by the Reserve Bank of India such as Prudential Framework for Resolution of Stressed Assets / Transfer of Loan Exposure. The Gross NPA as a percentage of Gross Advances is 1.98% while the Net NPAs of the Bank stand at 0.59% of Net Advances.

14. General Banking Operations

The Bank has continually strengthened its policy framework regarding Know Your Customer (KYC) norms, in compliance with regulations. It has implemented a simpliRs. ed KYC procedure, benefiting individuals from the Lower Income Group who can now open accounts with minimal documentation, aligning with RBI policy guidelines.

To enhance operational efficiency, the Bank has introduced a state-of-the-art Workflow and Imaging System for various banking processes, including account opening, term deposit bookings, trade finance transactions and branch expenses processing. This system enables faster turnaround times and real-time movement of work from branches to the Central Operations Unit, eliminating the delays associated with physical forms sent through couriers. The implementation has resulted in improved branch efficiency and elevated client service standards.

With a focus on digitalization and e-KYC, the Bank has introduced Digital Account Opening through a mobile application. This seamless process allows for straight-through account opening and online verification of KYC, reducing turnaround time and providing customers with greater convenience, along with enhanced controls and compliance measures.

The Bank has embraced the use of electronic KYC documents in accordance with the third amendment to the Prevention of Money-laundering Rules, 2005. Additionally, to facilitate Customer Identification Process (CIP), the RBI has permitted a Video-based Customer Identification Process (V-CIP) as an alternate method for establishing customer identity during onboarding. As a result, the Bank has introduced a Video-Based Customer Identification Process, allowing customers to complete their KYC verification and account opening procedures remotely, without the need for paperwork.

Participating in the Clearing through Cheque Truncation System (CTS), the Bank has 2,298 branches covered under the Grid Clearing, with CTS Centers in Mumbai, Chennai and New Delhi.

It also engages in National Automated Clearing House (NACH) transactions, including Debit and Credit (ECS) transactions in Mumbai, as well as Aadhaar-based Payment System (ABPS) transactions through NPCI.

To ensure efficient settlement of claims for deceased depositors, the Bank has established a comprehensive policy that covers all types of deposits and lockers. The policy simpliRs. es the settlement process and the necessary forms are available on the Banks website.

The Bank has formulated a Deposit Policy outlining the guiding principles and terms and conditions governing various banking products, as well as the rights of depositors. It has also developed a voluntary Fair Practice Code, setting standards for customer interactions across all branches.

To promote fair banking practices and provide information on customer service activities, the Bank has introduced the Citizens Charter. Additionally, it has implemented a Customer Compensation Policy, which compensates customers for any direct and actual loss resulting from service deRs. ciencies as mentioned in the policy.

The Bank has adopted an Unclaimed Deposit Policy based on RBI guidelines, facilitating the classification of unclaimed deposits and establishing a Grievance Redressal Mechanism for prompt complaint resolution and record-keeping. Balances from unclaimed deposits and other accounts are periodically transferred to the Depositor Education and Awareness Fund (DEAF) in accordance with RBI directives. Customer details related to unclaimed deposits are regularly uploaded on the Banks website.

The Bank has developed a Customer Rights Policy, which can be accessed on its website. Additionally, it has implemented a Customer Protection Policy based on RBI guidelines to provide a safe, reliable, transparent and superior service experience. This policy addresses customer complaints regarding unauthorized transactions conducted through electronic channels, defines criteria for determining customer liability in different circumstances and enhances customer awareness.

15. Corporate and Global Markets Operations

The Corporate and Global Market Operations (CGMO) department takes responsibility for delivering a wide range of products to customers in both the Corporate and Retail segments. These products encompass various areas such as Trade Services, Supply Chain Finance, Cross Border Remittances, Cash Management, Foreign exchange, Derivatives, Bullion and Depository Services, Portfolio Investment Schemes, and Exchange Clearing.

CGMO teams are dedicated to maintaining high standards of operational delivery, ensuring that customers receive exceptional service. In pursuit of this goal, we have made significant progress in key focus areas. Firstly, we have focused on enhancing the customer experience by providing seamless delivery and embracing digital enablement. Secondly, we prioritize strong employee engagement and development, recognizing that the Banks talented workforce is crucial to the Banks success. Thirdly, we have implemented process simpliRs. cation and automation initiatives to improve efficiency. Fourthly, we take a proactive approach to risk management, mitigating potential issues before they arise. Finally, we are committed to ensuring compliance with regulatory guidelines and upholding the highest standards of integrity and accountability.

Customer experience

During the year, CGMO implemented a cutting-edge ‘EarlyCredit system for Supply Chain Finance customers, enabling 24/7 customer access and transaction processing. This, along with the establishment of a dedicated service desk, has significantly improved the Banks ability to provide best-in-class service. Additionally, we expanded the coverage of the state-of-the-art iTRAC system, introduced last year, to include Outward remittance products. This seamless transaction flow, with automated checks and approvals, has streamlined processing time andelevatedtheoverallcustomerexperience.Moreover,dedicated teams were established to support the current and future growth of business at GIFT City, ensuring specialized handling of transactions in that area.

People management

The exemplary service delivery of CGMO teams earned them numerous appreciations and accolades from customers across all segments. The unit further strengthened the Banks training initiatives, covering both technical and soft skills, resulting in significant progress in building a Centre of Excellence. Staff engagement initiatives, including well-received staff Town Halls, continued to foster a positive work environment at all levels and locations.

Capability enhancements

CGMO made substantial strides in enhancing delivery capability through major system upgrades and automation initiatives, leading to superior customer experience and operational efficiency. In retail remittances operations, we implemented the state-of-the-art Digi Bureau system which is scalable and has improved operational efficiencies by handling higher volumes with built-in checks and controls. As one of the early adopters, the Bank is on the NeSL platform, enabling the issuance of electronic Bank Guarantees. This paperless process reduces turnaround time, provides clients with a digital repository of all their BGs in one place, and enhances fraud prevention while eliminating manual documentation and authentication processes.

Risk

CGMO maintains a proactive focus on identifying risks and implementing controls and mitigations through a robust Risk and Control Self-Assessment framework. All key processes across CGMO are now covered by RCSA, and Key Risk Indicators (KRIs) have been established to ensure comprehensive risk management.

16. Branch Network and Infrastructure

The Bank has established a comprehensive network with a total of 2,606 banking outlets and 2,878 ATMs, ensuring a presence in all 28 States and 7 out of the 9 Union Territories. To cater to offshore banking operations, the Bank has an International Financial Services Unit (IFSC) Banking Unit (IBU) located at the Gujarat International Finance Tec-City IFSC (GIFT City). Furthermore, Representative Offices are operational in key international locations such as London, Dubai and Abu Dhabi.

In addition to expanding its network across India, the Bank has introduced 13 PIONEER branches in prominent locations. These branches are situated in Mumbai (Juhu, Pedder Road and Lower Parel), Pune (Koregaon Park and Ghole Road), Delhi (Defence Colony and Punjabi Bagh), Gurugram (Palm Springs), Chandigarh (Sector-9), Kolkata (AJC Bose Road), Chennai (R. K. Salai Road), Bangalore (Church Street) and Jaipur (Malviya Marg).

To facilitate efficient currency management, the Bank operates six currency chests strategically located in Mumbai, Delhi, Chennai, Kolkata, Bengaluru and Chandigarh.

ESG in Operations

IndusInd Bank is actively expanding its ESG footprint within its operations, particularly through initiatives such as the Green Branch Initiative. It is worth noting that two of the Banks large offices, namely IBL House Andheri in Mumbai and Karapakkam in Chennai, have already achieved Leadership in Energy and Environmental Design (LEED) certification.

Furthermore, in the current financial year, the Bank has successfully obtained LEED certification for 10 PIONEER Branches, bringing the total number of LEED-certified PIONEER Branches across the country to 13. These accomplishments exemplify IndusInd Banks commitment to meeting the rigorous standards set by the United States Green Building Council (USGBC) and underline its ongoing dedication to sustainable building practices.

17. Information Technology

IndusInd Banks information technology division remains committed to its strategic objectives and continues to collaborate with business functions to reimagine the next-generation bank. By leveraging innovative business models, products, and partnerships, IT consistently delivers compliant, secure, resilient, and high-performing solutions to both employees and customers. The IT strategy and execution, guided by the board and executive management, are rooted in the following fundamental principles:

1. Leapfrog Digital 2.0: Embracing advanced digital technologies to stay ahead of the curve.

2. Building and servicing resilient products with superior performance.

3. Enhancing customer service to provide an exceptional experience.

4. Improving risk management practices to ensure robust control measures.

5. Aligning business strategy with sustainability goals.

IT actively collaborates with business units to support the Banks strategic objectives, modernizing the entire technology stack from infrastructure to applications, with a strong focus on customer experience and convenience. The Bank has strategically worked on its digital Infrastructure revamp to support ever increasing digitization of the processes. Key initiatives were to break the solutions into microserviceshostedonself-healingandscalingKubernetesinstances, ‘Hollow the core systems by building data pipelines through CDC technology, centralized authentication and authorization systems through uniRs. ed customer management and API standardization across bank with highly resilient and scalable API platform. The API platform serves as the foundation for the banks digital initiatives, with APIs powering all channels and partnerships. The API banking platform is highly resilient, supported by centralized governance and enhanced security standards.

To ensure stable and resilient IT systems, the Bank has invested in tools that provide early warning mechanisms, enabling proactive identification of potential issues, effective root cause analysis, and predictive analytics. This framework promotes collaboration among teams, leading to greater predictability, improved reliability, and stable applications. Additionally, the Bank has implemented a stack of APM tools to automate observability, root cause analysis and remediation.

To enhance client experience, the Bank established a centralized customer communication platform to streamline interactions with customers. It provides customers with a uniRs. ed view, standardized template management, a consistent omni-channel experience, personalized multi-lingual communication, and support for various communication formats. The platform also enables the Bank to send static and interactive communications such as print, email, and WhatsApp messages to customers.

The Bank has undertaken multiple Payment modernization initiatives and is amongst the few banks in India which runs its payments technology stack for products like NEFT RTGS IMPS AePS UPI on an architecture which is a microservices container stack which runs on an uniRs. ed platform to build, modernize, and deploy applications at scale, implemented on a leading virtual private cloud platform and also on an on- premise model. The architecture ensures higher standards of stability, resiliency and scalability to meet client demand. IndusInd Bank was also one of the first few banks to adopt and implement the CBDC initiative using on-premises model for the Distributed Ledger Technology Platform which was the vision of RBI and NPCI. We also are glad to share that IndusInd bank was ranked #1 in the grading of peer banks in managing fast growing UPI Volumes and need to maintain scale and stability as per MeITY (Ministry of Information Technology) score published periodically.

During the year, IndusInd Bank embarked on a journey to transition to a modern Data center (DC). This state-of-the-art facility not only enhances safety measures for fire and security but also supports a sustainable future by reducing the carbon footprint. The hyper-scaled DC ensures scalability, resource optimization through modular design, and economies of scale, enabling the Bank to meet its evolving technology needs.

During the FY2022-2023, several significant transformation themes and initiatives were introduced, aiming to drive progress and innovation. These key areas of transformation include:

Enhanced Customer Experience Initiatives

• API Open Banking with omnichannel experience

The Bank introduced API Open Banking, a comprehensive initiative to extend banking services across channels and partners. This solution enables customers to have a seamless and efficient banking experience by interacting with various service providers. It also offers an omnichannel experience and promotes innovation through single sign-on, ensuring secure transactions without sharing credentials with third parties.

• Digital currency (CBDC eRs. )

As part of the pilot for Cohort-3, the Bank launched the capability for CBDC eRs. (Digital Rupee), which is the Central Bank Digital Currency introduced by the RBI in India. This initiative provides customers with an additional option for digital transactions while mitigating credit and liquidity risks.

• Indus Merchant Solutions App for microfinance users

The Bank implemented the IndusMerchant App, a comprehensive paperless solution that combines the digital, paperless, and omni-flow experience of various payment companies with banking features. This all-in-one ‘Merchant in a Box solution is specifically designed for microfinance users, allowing Bharat Super Shop merchants to access UPI collections in real-time and utilize their banking facilities.

• Indus Fast Remit

The Bank introduced IndusFastRemit, an online marketplace for remittances accessible across different geographical locations. Customers now have the flexibility to choose remittance services based on their preferences and partner offerings, presenting significant potential for the Bank to expand its Non-Resident liability book.

• Agency Banking

IndusInd Bank was authorized to act as an agency Bank on behalf of the Government of India for the collection of various direct and indirect taxes, including income tax, goods and services tax, and customs duty. The Bank facilitated these collections through multiple channels, such as IndusNet, IndusDirect, and its branch network, ensuring timely remittance of collected taxes to the RBI on the next business day.

Innovations for Superior Operating Efficiency

• Finacle Digital Accelerator

The Bank has upgraded its API foundation by leveraging Finacles Digital Accelerator. This microservices-based architecture empowers the Bank to easily scale up and manage high volumes and surges in services across traditional, modern, and emerging channels. As a result, the Bank is now processing significantly higher composite channel transactions with improved transaction throughput.

• Vehicle Finance Loan Origination

The Bank has implemented a revamped loan origination platform specifically designed for the passenger vehicle and two-wheeler segments. This platform utilizes best-in-class products and enables the Bank to provide customers with in-principle loan sanctions within 15 minutes and same-day disbursals. The platform leverages Business Rule Engines (BREs) and incorporates risk-based pricing. Additionally, it allows for seamless integration with government and regulatory agencies. Comprehensive API integrations capture vehicle prices and enable geo-tagging for field investigations, ensuring an end-to-end digitized customer journey.

• Project Pragati

The Bank has enhanced its Loan Management System to strengthen the backbone of its microfinance business. With a robust architecture and real-time sync capabilities, Project Pragati brings centralized instantaneous reporting, timely data reconciliation, 100% same-day branch sync, and compliance with the latest regulatory norms. This project significantly improves operational efficiency and supports the Bank in meeting regulatory requirements effectively.

Security, Risk & Internal Efficiency Initiatives

• Digital Centre of Excellence

Recognizing the importance of early adoption of cloud-native journeys, artificial intelligence (AI), machine learning, DevOps optimization, and cloud strategies, the Bank established a Digital Centre of Excellence (CoE). This CoE brings together a core team of product experts, solution delivery professionals, and engineering teams to work collaboratively. The purpose of the CoE is to drive continuous improvement, facilitate digital transformation, and ensure alignment between business requirements and system design.

• Managing Technical Debt

The Bank has taken proactive steps to manage technical debt by identifying assets that are EOS / EOL and prioritizing remediation efforts based on criticality and risk. By investing in top-of-the-line security measures and state-of-the-art hardware, we have ensured longevity and stability of our systems, resulting in improved security profile, efficiency and reduced downtime.

Technology Awards

• IBA Banking Technology Awards 2022

IndusInd Bank achieved remarkable success at the 18th IBA Banking Technology Awards, securing awards in all five categories it was nominated for. The Bank emerged as the winner in the categories of Best Technology Bank, Best Digital Engagement, and Best IT Risk Management. It was also the runner-up in the Best Technology Talent category and received a special prize for Best Financial Inclusion.

• Technology Senate Awards 2022

IndusInd Bank received recognition in two categories at the Technology Senate Awards 2022. The Bank was honored for its Cloud Initiative, which involved the deployment of new-age cloud-native applications on a hybrid multi-cloud architecture. Additionally, the Bank was acknowledged for its innovative use of Artificial Intelligence in IndusInd WhatsApp Banking.

• Finnoviti Awards 2022

At the 10th edition of the Finnoviti Awards 2022, IndusInd Bank was bestowed with awards for its Open Banking Initiatives, namely IndusQode (developer portal) and Account Aggregator. These initiatives demonstrated the Banks commitment to innovation and delivering distinct benefits to stakeholders.

18. Human Resources

At IndusInd Bank, the organization recognizes the immense value of its human capital as the foundation of its business success. The Bank strives to cultivate an enabling culture that empowers employees to work, perform, and achieve their professional goals. The core values and guiding principles of the Bank revolve around client-centricity, entrepreneurship, agility, excellence, execution, trust, compliance, and governance.

As a strategic business partner, the Human Resources agenda at IndusInd Bank focuses on providing employees with a positive work experience. The Bank aims to acquire the right talent, retain them in the long term, create growth opportunities, foster strong employee connections, and prioritize employee welfare and wellness. Over the years, the Bank has implemented employee policies and processes that are benchmarked against the market to enhance the Employee Value Proposition.

IndusInd Bank takes pride in being recognized as a ‘Great Place to Work by the Great Place to Work? Institute, a global authority on high-trust and high-performance cultures in workplaces. This certification serves as a testament to the Banks organizational climate and culture, which prioritize credibility, respect, fairness, pride, and camaraderie. The Bank is committed to creating an exceptional work environment, resulting in improved business performance, enhanced employee productivity, positive word of mouth from employees, increased diversity and inclusion, and stability in the strategic business leadership layers. IndusInd Bank is acknowledged as a preferred employer brand in the industry.

Key Highlights

1. Employee Headcount

As of March 31, 2023, the banks employee headcount reached 38,179. The Bank pursued strategic resourcing and achieved net hiring of 4,597 resources in FY2023 to support new business initiatives, fulfill critical and specialized roles, and expand the branch network. The Bank also focuses on improving diversity by increasing female participation in the workforce and has launched 10 all-women branches across the country.

2. Diversified Hiring Channels

The Bank invests in diversified hiring channels, including employee referral schemes, job portals, consultants, campus hiring, and social media platforms such as LinkedIn and Facebook. Social media platforms are leveraged to attract domain experts and senior leaders. The Bank emphasizes employee referral schemes as a strong brand endorsement. The Bank also utilizes the ‘Hire-Train-Deploy approach through industry and academia partnerships to hire frontline sales personnel. Additionally, the Bank conducts campus-to-corporate programs to onboard fresh talent and provide career opportunities across corporate and retail verticals.

3. Robust Succession Planning

The Bank places significant importance on robust succession planning guided by the board. The Bank aims to ensure business continuity for critical roles, facilitate smooth leadership transitions, and identify and develop internal talent for future leadership positions. As part of this exercise, the Bank has on boarded several external and internal candidates for leadership positions and actively nurtures potential successors to build a strong leadership pipeline.

4. Focus on Learning and Development

The banks learning process emphasizes capacity building through business unit-specific learning roadmaps, gamiRs. ed e-learning programs, leadership development programs, domain-specific programs, and certifications mandated by regulators and the bank. The Bank follows a well-defined learning process that includes identifying learning needs, disseminating learning plans, delivering digital learning sessions, and implementing a structured feedback mechanism to improve learning design and effectiveness. In FY2023, the Bank conducted over 1,445,000 virtual learning man-hours, focusing on areas such as managerial effectiveness, customer focus, banking products, risk management, operational processes, and orientation programs. The banks e-learning app, ‘Indus Evolve, contributes to the ease of learning and provides scalable and cost-eRs. ective learning solutions.

5. Performance Management

The Bank adheres to a robust performance management process that includes setting Key Result Areas (KRAs) and SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals linked to the banks business objectives. Compliance is integrated as a goal within employees SMARTs. The annual performance appraisal for FY2022 was based on the tangible achievement of performance objectives, which influenced compensation decisions. The Bank conducts periodic performance feedback conversations to address performance issues, mentor employees, and enhance performance and productivity.

6. Attracting, rewarding, and retaining talent

The banks strategic intent is to attract, reward, and retain critical talent. The Bank believes in rewarding employees based on performance and follows a compensation philosophy of ‘Pay for Performance and role criticality. The Bank aims to be a competitive paymaster by offering market-linked, performance-based compensation. Additionally, the Bank provides long-term incentives such as ESOPs (Employee Stock Ownership Plans) and implements retention plans. The Bank focuses on job enhancement, accelerated career paths, work-life balance, job rotations, empowerment, and autonomy as drivers for employee retention.

7. Employee Engagement and Welfare

The Bank prioritizes employee engagement through various initiatives, including quarterly webcasts by the MD & CEO to communicate the banks direction, performance and emphasize compliance, governance, integrity, and discipline. Programs like We Connect, Lets Connect, CoRs. ee Connect, and Employee Appreciation programs facilitate grievance resolution, employee retention, and development. The Bank celebrates occasions such as International Womens Day, regional festivals, and sports events, fostering a sense of community across locations. It also acknowledges employees long-term association with the Bank through service awards. The Bank continuously tracks employee experience through various processes like welcome calls, extended experience calls, service anniversary processes and exit processes, to gather real-time employee feedback and improve employee processes.

8. Employee Welfare and Digitization

The Bank implements employee welfare schemes to support and motivate its workforce. It introduced measures such as paternity leave, career guidance programs for employees children, and women-centric policies. The Bank leverages the Employee Welfare Fund to provide financial assistance to families of deceased employees. Digitization is a key focus to improve employee lifecycle processes, enhance efficiency, and drive productivity. The Bank has launched several digital initiatives for employees, including HR Mobile application, AI assisted Chatbot, automated Ticketing system, online staff account opening, career portal, IJP / employee referral portal, digitisation of offine processes and new learning management system platform. The Bank ensures compliance with all regulatory and statutory norms in its employee processes and promotes employee adherence to the banks Code of Conduct through education and awareness programs.

19. Employees Stock Option Scheme

On September 25, 2020, the shareholders of the Bank approved the IndusInd Bank Employee Stock Option Scheme 2020 (ESOS 2020), which comprehensively replaced the erstwhile Employee Stock Option Scheme 2007 (ESOS 2007) that was approved by the shareholders earlier on September 18, 2007. ESOS 2020 enables the Board and the Compensation Committee to grant a number of stock options of the Bank not exceeding 7% of the aggregate number of paid-up equity shares of the Bank, in line with the guidelines issued by the SEBI. The options vest at one time or at various points of time as stipulated in the Award Confirmation issued by the Compensation Committee, and there shall be a minimum period of one year between the grant of option and vesting of the option. The unvested options shall expire by such period as stipulated in the Award Confirmation or five years from the grant of options whichever is earlier, or such further or other period as the Compensation Committee may determine. The exercise price for each grant is decided by the Compensation Committee, which is normally based on the latest available closing price and shall not be lower than the face value of the shares. Upon vesting, the options have to be exercised within a maximum period of five years or such period as may be determined by the Compensation Committee from time to time. The stock options are equity-settled where the employees will receive one equity share per stock option. Pursuant to a Composite Scheme of Arrangement with the erstwhile Bharat Financial Inclusion Limited, the shareholders of the Bank approved the IBL Special Incentive ESOS for BFIL Merger 2018 (ESOS 2018) on December 11, 2018. ESOS 2018 was approved with a pool of 57,50,000 Options which are equity settled. 50% of the options vest over a period of three years from the grant date and the remaining options vest over a period of three years from the first anniversary of the grant date. Upon vesting, the options have to be exercised within a maximum period of five years.

20. Risk Management

Management of risks inherent in the Banking business effectively and proactively is critical to sustainable growth. Banking is exposed to a wide range of risks and such risks must be measured precisely, monitored on an ongoing basis and managed effectively. A robust Enterprise-wide Risk Management (ERM) framework enables precise measurement of respective risks, along with effective and proactive management of various risks while supporting business growth. ERM framework helps to maintain earnings quality and stability while aligning risk appetites with business strategies. The Bank has an integrated Risk Management Department, independent of business functions, covering Credit Risk, Market Risk, Assets-Liabilities Management (ALM), Operational Risk Management and Business Continuity Management (BCM). Risk Management practices in the Bank have been aligned with the best industry practices and are adaptable to a dynamic operating environment and market conditions.

Credit Risk Management

Credit Risk is managed both at the transactions level as well as at the portfolio level. The key objective of Credit Risk management is to maintain credit quality within the defined risk appetite while achieving appropriate returns in relation to risks assumed. Various measures adopted for the management of Credit Risk are mentioned hereunder:

• Credit Risk policies are aligned with business strategies with defined risk appetite. The policies are maintained in alignment with changes in RBI guidelines and economic environment;

• Credit Risk at the time of credit assessment is gauged by means of risk-rating models, implemented for different business segments;

• Credit Portfolio Management Analysis monitors credit quality, the composition of portfolios, concentration risk, yield v/s risk and business growth;

• Measurement and monitoring of credit quality regularly by means of Weighted Average Credit Rating (WACR) of the credit portfolio;

• Prudential internal exposure limits prescribed for assuming exposures on counterparties (linked to the internal rating of borrowers), industries, sectors, etc.;

• Measurement of the credit quality of Vehicle Finance portfolios by means of Behavior Models;

• Sector reviews are carried out to assess and evaluate potential risks and stress within such sectors for analyzing the impact of stress on portfolio health and taking proactive actions to mitigate such risks;

• Management of exposures to counterparty banks and the countries by setting exposure limits basis their risk profiles and monitoring such exposures regularly;

• Stress Testing of Credit Portfolios is carried out periodically to measure the shock-absorbing capacity under multiple stressed scenarios and assessment of the impact of potential credit losses on profitability and capital adequacy, thus enabling initiation of appropriate risk mitigation measures;

• Early Warning Signals (EWS) system implementation for tracking risks and alerts in borrowers accounts as a post disbursement monitoring mechanism;

• Credit Quality Assurance, which is independent of businessandcredit,fortrackingpostdisbursementweaknesses developing in the account for initiating corrective measures in time.

Further, the Bank is working on Modernization of SAS Platform which supports in computation of Credit Risk Capital charge to manage regulatory evolution and high-volume growth within optimal processing timeframes.

Despite the challenging environment posed by the COVID-19 impact, the Bank has maintained the asset quality of its portfolio, with its NPA being one of the lowest in the industry. The Bank has been proactively assessing the impact of COVID-19 on its asset quality, profitability and capital adequacy. Such an assessment facilitated the Bank in making a strong provision buRs. er and managing risks in a better manner. During the year, the Weighted Average Credit Rating (WACR) of the Credit Portfolio has remained stable. The Bank has always strived towards maintaining a balanced mix of Corporate: Retail loan book.

The Bank has been introducing a wider range of Retail products and their variants, to have a larger share of the wallet and to meet customers needs. Such products are governed by structured product programmes specific to the business, which details out the criteria on customer selection and underwriting standards.

Market Risk Management

Market Risk is the possibility of loss to the Bank caused by changes in market variables, such as interest rates, exchange rates, equity prices and risk-related factors such as market volatilities.

The Bank manages market risk in trading portfolios through a robust Market Risk Management Framework prescribed in its Market Risk Management Policy.

The Bank has implemented a state-of-the-art Market Risk Management System (SAS) complemented with Treasury system "Calypso", which supports the monitoring of risk parameters and risk sensitivities including computation of Market Risk capital charge. The Market Risk Management system supports advanced risk measurement functionalities for the proactive management of risks. The system supports monitoring of Value-at-Risk (VaR) limits including Back Testing, Risk Sensitivity limits such as PV01, Greeks (Delta , Gamma, Vega) for Forex, Investments, Equity and Derivatives portfolios, besides Stop-Loss limits, Exposure limits, Deal-size limits, etc. Valuation of all portfolios are undertaken daily and the risk sensitivities are also monitored on a daily basis.

Asset-Liability Management

The Banks Asset-Liability Management (ALM) system supports effective management of liquidity risk and interest rate risk, covering all assets and liabilities.

• Liquidity Risk is managed through Liquidity Coverage Ratio (LCR), Structural Liquidity Gaps, Liquidity Simulation, Dynamic Liquidity monitoring, Net Stable Funding Ratio, Liquidity Ratios analysis, behavioral Analysis of liabilities and assets using advanced measurement measures. Risk values, mismatches under various time buckets and liquidity ratios are monitored against regulatory and prudential limits prescribed under Asset and Liability Management Policy.

• Interest Rate Sensitivity is monitored through prudential limits for Rate Sensitive Gaps, Earning at Risk, ModiRs. ed Duration of Equity and other risk parameters.

• Interest Rate Risk on Trading Portfolios is monitored through Market Risk Measurement tools such as VaR, PV01 and other Risk Sensitivities on a daily basis. Optimum risk is assumed through the Market Risk Measurement parameters, to balance between risk containment and profit generation from market movements. Detailed analysis of liquidity position, interest rate risks, product mix, business growth versus budgets, interest rate outlook, etc., is presented to Asset-Liability Management Committee (ALCO) which meets frequently and deliberates on liquidity position and interest rate risk and reviews business strategies.

ALCO provides directional guidance to Business Units towards effective management of liquidity position while achieving business goals. The Bank assesses its structural liquidity position, Liquidity Coverage Ratio (LCR), Liquidity measures, on a daily basis for managing liquidity in a cost-eRs. ective manner.

Stress Testing – Liquidity Risk

The Bank carries out stress tests on liquidity position periodically, to assess the impact of stressed liquidity scenarios on funding and liquidity position. Periodic Stress tests help to be better equipped to meet stressed situations and have contingency funding plans in place. The Bank regularly conducts stress tests to assess the potential impact of adverse movement in various internal and external factors on the liquidity position of the Bank under stress scenarios, assumed with varying severity. Results of such Stress tests are presented to ALCO and discussed, and the Committee provides guidance / direction for pro-active management.

Contingency Funding Plan

The Bank has put in place Contingency Funding Plan (CFP) to respond swiftly to any anticipated or actual stressed market conditions. The Contingency Funding Plan is reviewed periodically. The Bank reviews its contingency plans considering evolving market conditions. Contingency Funding Plan covers monitoring of internal as well as external contingency triggers, categorized into Yellow, Amber and Red. The CFP mentions the available sources of funds to supplement cash flow gaps in the event of stressed scenarios. CFP prescribes the conditions basis contingency triggers for assessment of liquidity position and invocation of contingency plan if deemed appropriate.

Roles and responsibilities of the Contingency Management Group constituted under the CFP have been defined to facilitate effective execution of contingency plans in the event of invocation of contingency plan. The Bank carries out CFP testing to assess the effectiveness of the plan.

Interest Rate Risk on Banking Book

Interest Rate Risk on Banking Book (IRRBB) largely arises on account of (i) Re-pricing Risk; (ii) Optionality; (iii) Basis Risk; and (iv) Yield Curve Risk.

From an economic value perspective, it is the Banks policy to minimize sensitivity to changes in interest rates on assets and liabilities. Interest Rate Risk is measured based on the re-pricing behavior of each item under asset, liability and off-Balance Sheet products. The Banks Assets and Liabilities Management Policy has laid down tolerance limits based on the risk appetite and the impact on NII and the Economic Value of Equity (EVE) for a given change in Interest Rate.

The Bank has put in place the necessary framework to measure and monitor Interest Rate Risk in Banking Book using the Duration Gap Approach as well as the Traditional Gap Approach.

Operational Risk Management

Operational Risk is the risk of loss resulting from inadequate or failed internal processes, people, systems or external events. The Operational Risk Management Policy documents the Banks approach towards management of Operational Risk and defines roles and responsibilities of various stakeholders within the Bank. The Bank has put in place several operational risk measurement and monitoring frameworks for the management of Operational Risk. Besides the above, the Operational Risk Management framework effectively manages operational risk through several internal committees, viz., Operational Risk Management Committee (ORMC), Fraud Risk Management Committee and BCM Steering Committee.

With the objective to reinforce the Operational Risk Management Framework in the Bank, an Enterprise Governance Risk and Compliance (EGRC) system has been implemented. This system has the following key components:

• Incident Management Module enables reporting and management of incidents (i.e., operational risks and fraud incidents), Root Cause Analysis (RCA), internal escalations, action plans, resolutions, etc., which ensures appropriate actions towards mitigation of such risks.

• Issue and Action Module enables tracking and monitoring issues emanating from Root Cause Analysis, Risk Assessment, Actionable relating to various operational risk issues, products/processes approvals, etc.

• Key Risk Indicator (KRI) Module enables reporting, monitoring, tracking, and trend analysis of Key Risk Indicators. It has been designed to generate periodic reports for respective units and provide the KRIs to Function-Heads, Department-Heads, and Business-Heads for necessary actions towards mitigation of such identified risks.

• Risk and Control Self-Assessment (RCSA) module provides a single platform enabling the identification of operational risks, recording of such risks, assessment of residual risks and effectiveness/adequacy of corresponding controls, etc. RCSA module shall progressively reinforce the assessment ofoperational risks and their mitigation. Status of operational risks, associated controls, Heat Map and Risk Index are generated by the system for concerned stakeholders (Operation Heads, Department Heads, Business Heads) to take appropriate action towards risk mitigation.

Product and Process Approval (PPAC) Framework:

The Bank assesses a Products and Processes Approval Framework for approval. The concerned system has been implemented to reinforce the identification of risks associated with new products/ processes and assign necessary controls before the launch of the products.

Operational Risk Stress Testing Framework:

In order to strengthen the existing Operational Risk Framework and make it more forward-looking and assess resilience under stressed scenarios. In addition the Bank has also created an Operational Risk Stress Testing Framework that covers different operational risk scenarios. Stress tests are carried out to gauge the impact of stressed events on the Profitability and Capital Adequacy of the Bank.

As per RBI guidelines, the Bank has been following the Basic Indicator Approach for the computation of capital charges for Operational Risk.

20.1. Systems Risk

The Bank places a high priority on maintaining a secure technology infrastructure. Protecting its underlying applications and information. The Bank employs the best Information Security capabilities available to ensure the confidentiality, integrity and availability of its data. It continuously seeks to improve its security posture and keep up with evolving treats to proactively ensure that the Bank safeguards its customers data.

The adoption of the ITIL framework and ISO/IEC27001 standards by the Bank are indicative of its focus on maintaining the best-in-industry standards of information security. These are globally accepted and proven standards which provide guidance for implementing the best practices and tools for managing and monitoring technology functions. This has helped the Bank to identify & manage Technology related risks, ensure compliance, business continuity, security and privacy by implementing a globally accepted framework.

The Banks data centers, IT and support functions are certified to the ISO 27001:2013 standard which is a globally recognized Information Security Management System (ISMS). The Banks commitment to these standards is an assurance to its customers that it values their data privacy and is taking appropriate measures to protect their sensitive information. These standards help the technology teams to align themselves with the business needs which in turn helps to map the processes correctly with clear roles and responsibilities.

The Bank has a board-approved Information Security Policy and Cyber Security Policy and a board-approved Cyber Crisis Management Plan in place. These guide the Bank in mitigating the risks from cyber security incidents by providing complete coverage for response to various cybersecurity incidents, effectively and efficiently. This establishes the cyber security resilience vision of the Bank. The ISO 27001:2013 framework defines consistent approaches during various stages of detection, identification, containment, eradication and recovery from specific cyber security incidents. Additionally, the Bank has a Board-approved Privacy Policy which guides the Bank in protecting the privacy of its customers confidential information.

The Cyber Security Department identifies risks, vulnerabilities across various applications and solutions implemented in the Bank, which helps in securing critical information and enforcement activities related to information and cyber security. Various other departments, divisions and groups of the Bank assist in the implementation of information & cyber security practices.

IndusInd Bank has a robust and resilient IT network infrastructure comprising servers with a guaranteed 99.98% uptime. The Bank also has a DR site and connectivity of 1Gbps between the DC and DR Center. This enables IndusInd Bank to handle a huge volume of transactions.

IndusInd Bank and its branches within India and across the globe are very highly dependent on Information and Communication Technology (ICT) to deliver various services to its customers, members, corporates, governments, etc.

The Banks security services are a blend of on-site and off-site resources to provide security services. The Bank has implemented industry leading security solutions such as SIEM, Anti-phishing, Anti-malware, DDoS protection services, Web application firewall, etc. The Bank has also implemented tools such as NAC and End point detection and response tools for reduction of internal malware threats. The remote security team is responsible for monitoring alerts and responding to them 24x7. IndusInd Bank has ISO 27001:2013 certified captive Security Operations Center (SOC), which works across the year to ensure it monitors all security incidents that occur in the IndusInd Bank infrastructure and correlate events, identify threats and support incident response in real-time.

The Bank has partnered with external specialists for managing Cyber Security Incidents. Their Incident Response Plan outlines various categories of incidents and the corresponding procedures to handle them. For severe Cyber Security incidents, the Bank has arrangements with retained external experts to provide vital expertise during the response. Additionally, the Bank has secured cyber security incident insurance.

The Bank employs various channels, including the Surveillance Unit, to monitor and mitigate insider threats and internal fraud. Through digital channels, e-learning, classroom training and workshops, the Bank disseminates awareness messages and tips to increase awareness of cyber frauds, safe internet and online banking practices, identification and avoidance of phishing/ vishing attempts, secure use of credit/debit cards, protection from malware and malicious websites and other related topics. This program is designed to educate and raise awareness among internal users, customers and partners.

Furthermore, the Bank has introduced a dedicated service to monitor Dark Web feeds through its Threat Intelligence Services, enhancing its ability to identify potential threats.

The Bank has a comprehensive and regularly updated Disaster Recovery Strategy in place to mitigate the risks of loss or damage caused by unexpected events such as ransomware attacks, natural disasters, or potential vulnerabilities. The Bank has implemented Disaster Recovery (DR) Plan for their technology staff and for the underlying technology stack, which has been tested against the DR plan. The strategy focuses on recovering critical information, restoring systems, and swiftly resuming operations. These measures are part of the Banks broader Business Continuity Management (BCM) plan, which aims to ensure uninterrupted operations with minimal downtime.

The Bank has established a well-defined Vulnerability Management Plan to proactively mitigate risks associated with applications and systems. This plan aims to identify and address vulnerabilities before they can be exploited or cause any harm. The Bank employs various practices such as testing, auditing and scanning to detect and rectify potential issues, ensuring a secure environment for its operations.

The Bank is implementing threat-hunting capabilities that involve verifying specific hypotheses related to emerging threat scenarios. The Bank deploys a variety of tools for Rs. ne-grained authentication and authorizations to restrict unauthorized users from accessing information. These measures help the Bank to prevent harm related to information theft, modification, or loss. The Bank is using public cloud infrastructure for faster go-to-market and has maintained similar protection levels for application and infrastructure. The Bank religiously performs risk assessment of its cloud infrastructure and ensures that the identified risks are being fixed.

These various capabilities deployed by the Bank provide confidence to all the stakeholders that the Bank is striving hard to provide a safe and secure banking experience which drives trust in the digital properties of the Bank.

20.2. Business Continuity Management

The Bank has implemented a Business Continuity Policy (BCP) wherein critical processes and other enablers have been identified and appropriate recovery plans have been put in place. This is particularly useful for such critical processes to ensure timely recovery of the Banks critical operations and services in the event of a crisis.

BCP Framework ensures continuity of critical processes to extend essential services to the customers. Regular mock tests are carried out to ascertain BCP preparedness. With the implementation of the EGRC system, key components of BCP such as, Business Impact Analysis (BIA), BCP Recovery Plan, BCP Testing, BCP Risk Assessment, are monitored through the system, which reinforces effective monitoring and management of Business Continuity.

21. Priority Sector Lending (PSL)

The Reserve Bank of India, with its comprehensive guidelines on ‘Priority Sector Lending (PSL) - Targets and Classification, has set forth a compelling mandate for banks. These guidelines, initially issued on September 4, 2020, and last updated on October 20, 2022, require banks to allocate 40% of their net Bank credit (ANBC) towards financing specific activities across various sectors. In response to the mandate, the Bank has taken proactive measures to cater to the diverse sectors and activities covered under PSL. The Banks Corporate, Commercial, Consumer, Inclusive, Agriculture, and Rural Banking units have aligned themselves to effectively meet the specialized needs of clients within the priority segments. This comprehensive presence across all PSL categories demonstrates the banks commitment to meeting the PSL targets and sub-targets set by the regulator. The Bank has surpassed expectations, with a quarterly average achievement of 46.51% in FY2023, exceeding the required 40% target. The current business model, supported by strategic PSL contributing divisions, has not only met the overall 40% requirement but has also fulfilled all sub-targets for the fiscal year 2023.

To drive the achievement of PSL sub-targets, the Bank has placed increased emphasis on developing products tailored for the agricultural sector, MSMEs, and weaker sections of society. Leveragingtechnology,innovativesolutionshavebeenintroduced to facilitate credit flow and improve accessibility. Enhancements to the digital channel ensure quick turnaround times for loan sanction and disbursement, particularly benefiting MSME borrowers who can now access micro and small loans digitally. Additionally, the Bank is actively developing new platforms and products to streamline loan disbursement processes and reach potential borrowers. The Bank remains committed to empowering underprivileged women and continues to focus on providing small, competitively featured tailor-made loans through various channels and Business Correspondents.

Through digital innovations and ongoing process improvements, the Bank aims to provide low-cost, prompt, on-demand, and hassle-free loans. The ambition is to expand the banks presence in rural and semi-urban areas across India, where there is currently limited penetration in agriculture advances and MSME lending. Special emphasis is placed on raising awareness about banking services, ensuring that the underprivileged segments are included and benefit from the PSL drive.

22. Marketing and Communications

IndusInd Bank is committed to providing a seamless and convenient banking experience to customers. The Bank remains at the forefront of innovation by leveraging technology to provide top-tier services and growing its large customer base. As the Bank works towards becoming the most preferred Bank in India, the Marketing and Communications strategy is playing a pivotal role in realizing this vision. In FY2023, the Marketing & Communications strategy focused on all customer segments, creating brand awareness, engaging with customers and building customer loyalty.

Savings Account Ho Toh Aisa – Featuring Rs. lm actor Siddharth Malhotra:

The Bank launched a 3600 campaign featuring notable Indian Film Actor – Siddharth Malhotra, which showcased the value proposition of its Savings Accounts offering in a way that resonates with customers evolving banking needs and lifestyles. Siddharths popularity, garnered from his decade-long tenure in the Rs. lm industry, extends to all customer demographics, making him an excellent choice as the Banks brand ambassador.

The partnership with the actor was opportune, given his recent success in Rs. lms and his appeal to the Banks target audience and brand persona. It is worth mentioning that IndusInd Banks Savings Account offering was awarded as ‘Best Savings Product in FE Best Bank Awards 2020-21. With the tagline ‘Savings Account ho toh aisa, the campaign highlighted the Banks attractive and exciting offers like:

1. Attractive Interest rates of up to 7.75% on Fixed Deposits and up to 6% on Savings Account

2. Free Airport lounge access

3. Autopay for utility bills, subscriptions and SIPs using UPI, cards and mobile

4. Upto 20% off on food and groceries on Swiggy and BigBasket

5. Buy one get one free movie ticket on BookMyShow

6. Indias first Debit cum Credit Card - DUO Card

7. My Account-My Number with the freedom to choose your account number

8. Instant personal loans and much more, that conveniently fits into the fast-paced lifestyle of its customers.

9. Choice Money- Denominations of your choice at IndusInd Bank ATMs

To ensure maximum reach, the campaign had both digital and print legs, with ads published in the Times of India and Economic Times, TVCs released in prime-time slots on English news channels, general English channels, business news channels English movie channels, as well as vernacular TVCs in 4 languages (Tamil, Telugu, Kannada and Malayalam). The campaign also released on digital platforms like YouTube, Facebook Instagram, garnering over 40 million views within just three weeks and targeting select OTT platforms like Sony LIV HotStar. With the buzz around the Indian nominations, the Oscars were also targeted to showcase the campaign. The Bank leveraged marquee sites at airports like Mumbai, Delhi, Bangalore and Bhubaneswar and metro stations in Delhi and Mumbai ensure increased visibility for the campaign. The campaign also implemented at branches in key cities across the country.

EazyDiner Credit Card

With the pandemic-related restrictions easing out, there been a rise in customers choosing to dine out. This presented a favorable opportunity to launch a credit card in partnership with EazyDiner. Again, targeting the mass aRs. uent segment, the EazyDiner Credit Card is the first co-branded credit catering to the premium dining space. It rewards customers every time they dine out, making it an attractive proposition frequent diners.

A 360-degree marketing approach was used to promote the product, which included joint press releases, press advertisements in leading financial dailies, social media buzz, airport and metro branding across Tier 1 cities, branch posters, standees, ATM screens, app notifications, email and WhatsApp communication. Social media platforms such as YouTube, Instagram, Twitter and LinkedIn were utilized for product launch posts and videos. To capture the authentic user experience and delight of the card and its features, an influencer campaign was conducted. Around 200 influencers and Ultra HNI customers, including celebrity chefs, high-profile restaurant owners, food bloggers and prominent media personalities, were invited to try out the card and share their experiences. Their videos were published and promoted on various social media channels, leading to increased interest and uptake of the card. Restaurant visibility was also ensured by branding across over 100+ restaurants in 8 major cities across India, particularly during peak dining times like Christmas and New Year. The marketing campaign highlighted the key features of the IndusInd Bank EazyDiner card, which included complimentary membership, dining benefits, more rewards with instant redemption and entertainment and travel benefits.

Home Loans

IndusInd Bank introduced a new product in FY2023, known as ‘Prime Home Loans, to their already extensive line of offerings. This launch was crucial to cater to the growing demand of customers who desire independent living.

During the launch, the product was marketed in 11 top residential housing markets in India and has now expanded to 23 key markets across the country. Initially, home loans were available for ready properties, but the Bank later opened offerings for under-construction properties, focusing on CAT A+/A developers in select 6 cities with certain risk ring-fencing.

To ensure maximum reach, the Bank organized Loan Mela campaigns at select target markets during the Diwali festival, along with branding visibility at metro covers, ATM screens and social media-led campaigns, posts and customer engagement through emailers. The marketing campaign highlighted the loans key features, including quick processing, tenure of up to 30 years, prompt and personalized service and attractive interest rates. The efforts of the Bank have resulted in an impressive book of Rs. 385 Cr in just the first seven months since the launch.

Launch of New PIONEER Branches

During the year, IndusInd Bank launched three new PIONEER branches in Bengaluru, Chennai and Jaipur. The launch was a strategic move by the Bank, capturing key aRs. uent markets and enhancing coverage for the program.

With PIONEER, the Bank offers a whole new world of banking and beyond, which provides full-stack Banking and Wealth Management solutions for high-net-worth individuals, C Suite corporate executives, business owners, NRIs, SME businesses and upwardly mobile aRs. uent Individuals.

As a part of the launch plan and to build awareness about the opening, full front-page ads were released in city editions of The Times of India and The Economic Times respectively. The ads focused on showcasing the unique benefits of the PIONEER Program and invited readers to visit the unique, state-of-the-art PIONEER lobby to experience a one-of-a-kind Premium Banking and Wealth Management Program.

Partnership with British Airways and Qatar Airways

IndusInd Bank joined hands with British Airways Executive Club and Qatar Airways Privilege Club to provide customers with a unique and elevated travel experience. In a first-of-its-kind initiative, the Bank announced a partnership with the international airlines to introduce a unique multi-branded credit card, powered by Visa. The launch is scheduled to take place in Q1 of FY2024.

The announcement was made through a pan India press release, covering various media channels, including financials, mainlines, wires, and electronic and online media. The press release aimed to publicize the partnership to the key target constituents of

IndusInd Bank. With this multi-branded credit card, customers can earn best-in-class rewards and benefits to enhance their international travel experience with British Airways or Qatar Airways and redeem them for exclusive benefits.

Bank On Happiness Campaign

In its perpetual endeavor to engage with the customers and to bring to life the customer-centric approach of the Bank, IndusInd Bank commemorated the festive season of Diwali by launching the #BankOnHappiness marketing campaign. Through the Banks different products, services and offers, this campaign focused on the critical role that IndusInd Bank plays in spreading happiness in the lives of its customers. Be it attractive interest rates, offers on CC & DC, or loan products, the objective of the campaign was to bring happiness to the lives of customers in the first-big-post-pandemic festive season.

This campaign included a plethora of offers, discounts and cashback on purchases and spending across leading brands and e-commerce platforms through a wide range of Banks debit and credit cards. The campaign theme was also extended to loan products and other business segments of the Bank. These festive offers were made available across online, offine, national, regional and hyperlocal merchants covering the widest range of categories including electronics and gadgets, lifestyle, grocery, bill payments, travel and dining category.

In order to achieve maximum visibility for the campaign, a multi-faceted approach was adopted, encompassing a wide range of activities. These included customer and employee emailers, captivating short videos, engaging digital banners, and social media assets, as well as appealing branch collaterals and activation activities. To sustain the campaigns impact, compelling digital videos featuring influencer Soha Ali Khan were produced. A press release was strategically crafted, with a focus on Advertising & Marketing media, to capture the essence of this campaign.

Customer awareness campaign

#DamnTheScam

As a Bank, we are committed to the online safety and security of the banks customers. So, to create general awareness among the masses about safe banking practices, the Bank rolled out a differentiated awareness campaign called #DamnTheScam. The awareness campaign aimed at getting the attention of youngsters and senior citizens alike with a Call to Action against fraudsters new and upcoming tactics. With this campaign, we aimed at enhancing customers safety and trust in the Bank by informing them about what to do when suspicious activity occurs. The campaign focused on highlighting simple things which can help prevent individuals from getting scammed.

To resonate with the audience visually, the campaign was based on comic characters and creatives were published on all social media platforms (Facebook, LinkedIn, Instagram, Twitter) with short animated videos as well to better comprehend the messaging in a way that reaches the target audience.

Mumbai Metro & Chennai Metro:

Train Wraps and Branding/ Naming rights of the Mumbai Metro (Red and Yellow Line) and Chennai Metro (Blue Line)

IndusInd Bank has a very strong brand presence at the Metro Stations at New Delhis Okhla, Noida and Mumbais Chakala. This year, the Bank also procured transit branding rights for the newly opened Mumbai Metro lines (Red and Yellow Line), in the form of Train Wraps. Additionally, the Bank also gained naming and branding rights for the Chennai Metro (Blue Line).

The Mumbai Metros Red and Yellow Line seamlessly connect commuters from Western, Central and Northern Suburban Mumbai, with an estimated daily ridership of 9 lakh. 44 branded trains traverse more than 35 km across suburban Mumbai, each comprising six coaches with various media formats for added creativity and impact, including internal branding. Similarly, the Chennai Metro Line covers 54.41 km, with 41 stations providing maximum visibility to capture larger audiences. With the inclusion of nine new stations on Corridor-1 - from Washermanpet to Wimco Nagar - the visibility has increased for passengers on both Corridors 1 and 2.

IndusInd ForSports

Under IndusInd ForSports, the Bank uses sports to promote the culture of fitness and well-being among employees and motivate them to draw important lessons for life.

We have supported the ForSports Team in this endeavor through various weekly campaigns like ‘Life Lessons through Sports and ‘Deskercise. While the former is about the key lessons one can take from the life and journey of some champion athletes, the latter was about simple exercises employees could do at their desks to stay fit.

Get Set Run

The ‘Get Set Run is the key Employee Engagement initiative of the ForSports team that encourages employees to participate in marathons while providing support with things like participation fees and a t-shirt. The Marketing and Communications team has supported the ForSports team with Communications and Branding for these activities that saw 4195 employees participating in 30 cities, covering over 21,000 km in FY 2022-23.

Box Cricket Tournament

Additionally, the ForSports Team organized the IndusInd Bank Box Cricket Tournament in Mumbai and Kolkata which saw 880 employees participating. We supported them with the communication for the events.

Furthermore, we supported the ForSports team by creating one-oRs. communication for key announcements and days of National Importance. We also designed an entire campaign aimed at internal and external audiences for the T20 World Cup for the Blind, which has been detailed separately in this section of the report.

Other BTL and Zonal Customer Engagement activities

During the year, a host of BTL and customer engagement-related activities were conducted including during important occasions, festivals and international days of prominence. A range of activities that were conducted includes Senior Citizen activity, Health check-up, Traders Connect, Independence Day activities, Drawing competition, Blood donation camp, Teachers Day and International Womens Day amongst others. These activities ensured consistent connections with customers and emphasized their banking relationship with the Bank.

Along with customer-centric initiatives, the Bank also focused on enriching the lives of employees with employee-centric initiatives during the year, supported by marketing & communications.

Human Resources

Along with customer-centric initiatives, the Bank also focused on enriching the lives of employees with employee-centric initiatives during the year, supported by marketing & communications.

Making strides towards ‘Employer of Choice

IndusInd Bank strives to inculcate a performance-driven and result-oriented culture. The Bank partnered with the Great Place to Work organization and conducted an employee survey to assess the organizational culture and climate. Positive employee participation resulted in the Bank receiving the Great Place to Work certification, bringing us closer to the banks objective of becoming the ‘Employer of Choice. Even more impressive is the fact, that the Bank achieved this certification on its very first attempt. This is a testament to the banks outstanding company culture, great people and exceptional management.

HR-employee experience lifecycle process

In FY2022-2023, the HR-Employee Experience (HR-EX) team significantly contributed to enhancing the employee experience, engagement and retention at the Bank. The team celebrated a milestone achievement of over 55,000 employee connections, which reflects the positive impact of these programs.

The HR-EX lifecycle process focused on different stages of the employee journey, connecting with employees at each stage, like onboarding new joiners, conducting employee satisfaction surveys, celebrating service anniversaries, long service awards etc. The team conducted welcome calls to assist new joiners, extended experience calls to gather feedback from employees on completing six months in the system and first-service anniversary calls to congratulate employees. The team also congratulated employees who completed five years with the Bank and multiples thereof and conducted exit interventions to understand the reasons for resignation and discuss retention.

Employee-centric initiatives

The HR-EX team introduced several initiatives to support the employees needs and priorities. Indus Cares, a flexible maternity benefits program, provided extended maternity benefits to new mothers, while You Matter, a flexible work arrangement program, allowed women employees to work from home or change their profile or location if their parents were critically ill or upon transfer of their spouses office location. The Paternity Leave initiative provided fathers with 14 days of leave on the birth or adoption of a child. The Long Service Award recognized employees contributions on completion of five years and multiples thereof. The Welcome Kit provided personalized kits to new joiners in grades VP and above. Indus1, HRs Mobile App with an AI Chatbot was launched and supported by an end-to-end employee engagement marketing campaign.

Commemorating important days

The Bank celebrated various festivals and events during the year, to foster employee engagement on Independence Day, Diwali, Christmas, International Womens Day, World Mental Health Day etc. The Bank rolled out theme-based contests and traditional days and conducted multiple Pan-India virtual programs. The Women Leaders Mentorship Program supported women in leadership roles. The Bank also launched the Positive Moves program, to assist employees children in making the right education and career decisions.

CSR-related activities

Campaign for the 3rd T20 World Cup for the Blind:

Through the IndusInd Blind Cricket Program (under CSR), in partnership with the Cricket Association for the Blind in India (CABI), the cricketing arm of Samarthanam Trust for the Disabled, the Bank proudly supports the Indian Blind Cricket Team as a part of the banks support for 700 visually impaired cricketers (men and women) to excel at this sport on a larger scale.

In December 2022, the Indian Blind Cricket Team, for the third consecutive time, was crowned the champions of the T20 Cricket World Cup for the Blind. To garner support for the team, the Bank ran an internal and external campaign (on social media) with the hashtag.

#CheerForThemToHear

• The campaign consisted of ten employee mailers and nine social media posts (including five video posts).

• The Social Media campaign garnered about 1.25 Cr impressions, which pertains to the number of people that saw the digital assets of the campaigns across platforms.

• T five videos he received almost 50 lakh views across Face-book, Instagram, Twitter and YouTube.

Felicitation of the Indian Blind Cricket Team

IndusInd Bank proudly felicitated the Indian Blind Cricket Team in February 2023 for their historic win at the 3rd T20 World Cup for the Blind, played in India, in the month of December 2022. The felicitation took place at the Banks Head Office in the presence of the Managing Director & CEO of IndusInd Bank, Mr. Sumant Kathpalia, along with CABI President Mr. Mahantesh G Kivadasannavar and other senior Bank offcials. As a token of appreciation, the Bank awarded the team with a cash prize for their consistency, unwavering spirit and dedication to the sport.

• The felicitation ceremony was communicated externally on Social Media and through PR.

• The total number of impressions that the post received across Facebook, Instagram and Twitter was about 16 lakhs.

• The story was covered by 10 online portals and 13 print publications.

Recognitions for ESG

IndusInd Bank was honored with the prestigious ‘Best Bank for ESG - India award at the Asiamoney Best Bank Awards 2023, marking its second consecutive win. Furthermore, the Bank was elated to secure the title of Market Leader for ESG in India, according to Euromoneys 2022 rankings.

The Bank had published a half-page ad on the front page of The Economic Times. Furthermore, a social media post about both recognitions received 7.7 lakh impressions across Facebook, Instagram, Twitter and LinkedIn.

Sustainability and CSR

The communication and branding for the sustainability team included:

• Creating a series of employee communication about ESG risks and best practices.

• Revamping the sustainability pages on the Banks Website.

23. Sports

The non-banking sports vertical ‘IndusInd For Sports, which we introduced in 2016, aims to harness the incredible power of sports to motivate both the banks internal and external populations. We have launched several activities across several platforms under the name IndusInd For Sports to offer athletes unwavering support through the banks focused program. Recognizing the significance of physical well-being and its beneficial effects on people and the workplace, we have also aggressively promoted health and fitness inside the banks company.

Programs

A. Para champions program

We assist 45 para-athletes competing in 10 different sports through the banks cooperation with the Go Sports Foundation. We take care of all their requirements, including high-performance training, travel, injury management, rehabilitation, strength training and medical care.

These extraordinary para-athletes have excelled since the programs inception, winning a total of 892 medals, including 485 Gold, 234 Silver and 173 Bronze medals.

These committed athletes demonstrated their amazing skills by winning a total of 167 medals throughout FY2023, including 82 Gold, 45 Silver and 40 Bronze medals, via their great achievements in numerous championships and competitions.

In addition, we are proud to announce that three para-athletes from the elite Para Champions Programme received the privilege of representing India in the prestigious Commonwealth Games in Birmingham, England, in 2022.

In FY2023, 2 Para athletes from the banks program were conferred with the Arjuna Award.

B. Cricket for the Blind program

Through a valuable partnership with the Cricket Association for the Blind in India (CABI), which is the sporting wing of the esteemed Samarthanam Trust, the banks program extends support to the Indian Blind Cricket Team as well as over 700 blind cricketers at the state and district level.

The Indian Blind Cricket team won their 3rd consecutive T-20 World Cup 2022, hosted by India where 6 Nations - Sri Lanka, Nepal, South Africa, Australia, Bangladesh and India participated. Team India, supported by the bank, won all the matches they played in the tournament.

#CheerForThemToHear – An inspiring campaign was created around the 3rd T-20 World Cup for the Blind to showcase the banks support of the cause and to motivate the Indian Blind cricket team for their unwavering spirit.

IndusInd Bank felicitated the Indian Blind Cricket Team for their historic three-peat win at the 3rd T-20 World Cup for the Blind 2022 at IndusInd Banks corporate office in Mumbai. The Womens National Tournament for Blind was concluded in Bangalore. 24 States participated in a tournament consisting of more than 400 Female blind cricketers.

C. Girl power program

We assist 31 gifted female athletes who compete in the sport of judo through the banks partnership with the Inspire Institute of Sports (IIS). We want to help these young athletes grow and develop by providing them with excellent coaching, personalized academic and life skills programs. To help these athletes achieve their Olympic dreams, it is the banks mission.

These judokas have won 107 Medals – 59 Gold, 15 Silver and 33 Bronze since the inception of this program.

Sushila Devi from this program was the sole judoka to represent India at the Commonwealth Games 2022 in Birmingham, England, won a silver medal for India and her victory also made her the first women judoka to win a medal in CWG 2022.

Linthoi Chanambam from this program became the first and only Indian to win a gold medal in Judo at the world championship across any age category.

In FY2023, 1 Judoka from the Banks program was conferred with the Arjuna Award.

D. Elite athlete program

The Banks backing for a program that helps 60 athletes from backward castes and nomadic tribes in the Satara region of Maharashtra demonstrates its dedication to both sports excellence and diversity. Three sports—wrestling, wrestling and field hockey—are the emphasis of the program, which is run in collaboration with the Mann Deshi Foundation. The program uses sports as a means of enhancing rural childrens leadership, motor and life skills as well as their quality of life.

The athletes have bagged a total of 275 medals - 138 Gold, 90 Silver and 47 Bronze since the inception of this program. 2 athletes were inducted into the U-23 Indian Womens hockey team

E. Hockey for her excellence program

The program offers assistance to 40 gifted female players, aged 13 to 16, who practice and are supported at the Odisha Naval Tata Hockey High-Performance Academy in Bhubaneswar, Odisha. The program contains actual video analysis of practice matches to improve training methods and raise the caliber of talents and playing approaches. Artificial intelligence (AI) is used in this ground-breaking method to pinpoint problem areas and come up with workable fixes.

10 Girl athletes from the programme, participated in the Khelo India Youth Games 2022 and secured the second position. 4 athletes were inducted into the U-23 Indian Womens hockey team.

Employee Engagement

A. Get Set Run

‘Get Set Run is the Banks flagship employee engagement initiative that has been running successfully since its establishment in 2016. This initiative aims to promote a happy and healthy workforce by encouraging employees to participate in running activities. Even in a year when the pandemic presented difficulties, IndusInd ForSports was able to maintain the spirit of sportsmanship. Employees have been able to take part in running activities while complying with COVID-19 regulations owing to virtual engagement platforms and GPS-enabled tracking. With the help of this novel strategy, staff well-being and engagement have been maintained, promoting harmony and well-being inside the company.

In FY2023, the Get Set Run initiative kick-started with the return of on-ground running events.

• Running events held in 30 cities across the country.

• 4,200 employees participated

• A cumulative distance of 21,000 Km was covered.

B. IndusInd Box Cricket League

In Mumbai, an exciting inter-department box cricket competition was organized to promote friendship and collaboration among the workforce. This league was created to encourage cooperation and a sense of community inside the company.

There were 600 employees in the competition, divided into 60 teams and 78 exciting matches were played. Employees were given a platform to demonstrate their cricketing prowess and forge close relationships with co-workers from all areas.

Additionally, the event supported virtual participation, enabling over 10,000 employees to take part remotely and cheer on their preferred teams and players.

C. Deskercise

A specially curated informative campaign. involving a set of exercises designed for the employees to practice at the comfort of their desks to improve their physical abilities like agility, balance, posture and speed thus reducing stress.

D. Life lesson through sports

An innovative storytelling campaign, touching upon various attributes that sports teach us like sportsmanship, determination, willpower, perseverance and teamwork using real-life sporting events and incidences of legendary athletes. The life lessons were portrayed in a way that helped the employees implement the attribute in their daily lives to better their personal and professional lives.

24. Corporate Social Responsibility

SATTVAM - Our Country. Our Commitment.

In accordance with our pledge to promote social progress and environmental sustainability, IndusInd Bank has embarked on a significant Corporate Social Responsibility (CSR) initiative. Under SATTVAM (the umbrella brand under which the Bank conducts its CSR ativities), our endeavors now span across India, bolstered by our close collaboration with grassroots-level, non-governmental organizations (NGOs) and community-based groups operating on the ground. Our CSR strategy has been meticulously designed to seamlessly align with national development priorities and the United Nations Sustainable Development Goals for 2030.

Throughout the years, the Bank has focused on key areas such as education, sports, and the environment. In the FY2022, we introduced our Flagship CSR Programme, focused on holistic rural development, closely aligned with the ‘Transformation of Aspirational Districts initiatives of the Government of Indias NITI Aayog. By integrating this Flagship CSR Programme with our existing Strategic CSR Programme, the Bank has adopted a comprehensive approach towards holistic rural development and the economic empowerment of rural communities.

A significant portion of our CSR initiatives has been aligned with the objectives of the Aspirational Districts Programme by Government of Indias NITI Aayog. Our initiatives aim to make a tangible impact in the areas of education, healthcare, and livelihoods for underprivileged and marginalized communities in the most disadvantaged districts.

SATTVAMs alignment with the Aspirational Districts Programme exempliRs. es our commitment to inclusive and sustainable development. It reinforces our belief that development should extend to the farthest corners of the country, benefiting every Indian. During FY 2022-23, the Bank has positively impacted the lives of over 15 lakh individuals.

Flagship CSR Programme

Five Aspirational Districts

Bahraich, Uttar Pradesh Baran, Rajasthan Begusarai, Bihar

Osmanabad, Maharashtra

Virudhunagar, Tamil Nadu

During FY2022, IndusInd Bank successfully designed and launched its first phase of the Flagship CSR Programme aimed at Holistic Rural Development in two Aspirational Districts identified by NITI Aayog, namely Osmanabad in Maharashtra and Begusarai in Bihar.

FY2023 witnessed notable accomplishments in the Flagship Program, achieved through the Banks advocacy efforts with both central and state governments. These achievements include:

- Expanding interventions to three additional aspirational districts, namely Baran in Rajasthan, Bahraich in Uttar Pradesh, and Virudhunagar in Tamil Nadu, bringing the total count to five.

- Signing Memorandums of Understanding (MoUs) with the District Administration to ensure shared responsibilities and ownership from the programs inception.

- Establishing a Statement of Intent (SOI) with the NITI Aayogs Atal Innovation Mission.

- Signing a Non-Disclosure Agreement (NDA) and MoU with the National Skills Development Corporation (NSDC).

- Securing commitments for partnerships from public sector undertakings (PSUs) and from other companies Corporate Social Responsibility (CSR) initiatives.

- Collaborating with partners such as ASCI (Administrative College of India) and Haqdarshak for sector-specific interventions related to WASH (Water, Sanitation, and Hygiene) and social entitlements.

The Bank has made a 10-year commitment to "Make a Sustainable Impact Among Marginalized Communities Through an Integrated Holistic Approach." Accordingly, the interventions planned under the Flagship CSR Programme aim to enhance and create livelihood opportunities in agriculture, water management, allied and non-farm value chains, farmer producer organizations (FPOs), skilling initiatives, as well as collaborative efforts in health, education, and basic infrastructure.

Climate resilience and womens socio-economic development are central to the objectives of the Flagship CSR Programme. By empowering communities economically and improving natural resource management efficiency, the program strives to uplift income levels and foster sustainable impact.

In FY 2022-23, in the initial phase of flagship interventions, the Bank has been able to create following impact:

Villages Covered in 31 Aspirational District Blocks	872
Beneficiaries impacted	5.4 Lakh
Benefitted under improved livestock management	4,949 HH
Cub Litre Water Harvesting Capacity Created	39.18 lakhs
Land Treated	5,266 Ha
SHGs have supported more than 94,000 women through the programme	4,729
Students tinkered from 76 schools for building an innovative mindset and entrepreneurial skills	42,000
Women and adolescent girls benefitted through health camps	1 lakh+
Community members trained via capacity building sessions	37,000+
Water harvesting structures created	619
Convergence worth	45 Cr.
Benefitted through social security schemes unlocking Rs. 1.45 crores	5,288 HH

STRATEGIC PROJECTS:

The Banks strategic projects aim to empower and benefit marginalized groups, vulnerable populations, and weaker sections of society. These projects primarily focus on the Environment, Education, and Sports, with the goal of bringing about positive changes in the short to medium term.

ENVIRONMENT

IndusInd Bank holds the belief that a robust economy is intricately connected to a healthy planet, which forms the fundamental basis of our sustainability philosophy encapsulated in the phrase ‘Good Ecology is Good Economics.

As we fortify our business model, we recognize that it is not merely an option but imperative to proactively adopt measures aimed at safeguarding the environment and advancing towards healthier, low-carbon societies. The Bank has undertaken various initiatives to ensure environmental sustainability, preserve ecological balance, protect Rs. ora and fauna, promote agroforestry, conserve natural resources, and uphold the quality of soil and water.

Our projects pertaining to Water Stewardship are implemented in rural areas facing water scarcity, emphasizing collective responsibility and action to ensure responsible, sustainable, and equitable management of water resources. These endeavors not only contribute to water security but also translate into enhanced crop productivity, increased income, soil conservation, strengthening of community institutions, and bolstering climate resilience.

Additionally, we engage in activities such as spring water conservation, rooftop rainwater harvesting and river water harvesting, restoration and revitalization of traditional water bodies such as lakes and drains, aRs. orestation (both traditional and Miyawaki methods), as well as the deployment of renewable energy solutions in educational and healthcare institutions. Through these initiatives, we strive to create sustainable value for all stakeholders.

Villages	467
Beneficiaries	5.12 lakh+
Ha Land Treated	9,815+
Cub Mtr Water Harvesting Capacity	70.47 lakh+
Trees planted	1.14 lakh+
MTCO2 sequestration/ emission saving potential over 25 years	6,300+

EDUCATION

Education initiatives under CSR are crucial to the Banks aim for social upliftment, with a primary emphasis on enhancing the learning outcomes of students in the primary section. The focus lies on improving skills related to reading, writing, and comprehension. We have partnered with implementing agencies to introduce enhanced pedagogical approaches and ensure effective implementation. Another key aspect involves capacity building and skill development initiatives aimed at empowering teachers in government schools.

Furthermore, our interventions extend to providing scholarship support for academically accomplished yet economically disadvantaged students, facilitating their pursuit of higher education. Additionally, we offer technical education and skilling programs targeting youth who have discontinued mainstream education, enabling them to acquire meaningful employment opportunities.

Students	2,27,000+
Schools	2,900+
Teachers	8,100+
No of youth employed	1,000+

SPORTS

The sports programs implemented by IndusInd Bank prioritize both inclusion (regarding gender, differently-abled individuals, and the underprivileged) and sporting excellence. These initiatives actively seek out aspiring athletes from rural and urban areas of India, equipping them with the necessary resources to unlock their full potential. The Bank supports these athletes as they participate in national and international sports tournaments, aiming to achieve success and bring honor to the nation.

Sportspersons	960+
Tournaments	1,115+
Medals/Wins	275+

OTHER AREAS OF SPECIAL INTEREST

Under the umbrella of "Other areas of special interest," the interventions encompass a range of projects conducted in collaboration with the Armed Forces, healthcare initiatives, and support for doorstep veterinary services.

In the realm of healthcare, our efforts encompass various aspects such as supporting screening, diagnosis, treatment, surgeries, and infrastructure development (including equipment) for critical and financially demanding ailments. This includes pediatric and general cancer, pediatric congenital heart diseases, and mother and child healthcare. These initiatives have positively impacted the lives of over one lakh beneficiaries.

In support of the Armed Forces, we extend assistance to the families of soldiers who have either lost their lives or sustained injuries/disabilities. This aid takes the for of grants utilized for educational support, including scholarships, vocational training to empower widows and educational assistance for differently-abled children.

Through the Bharat Sanjeevani project in collaboration with BFIL, the Banks aim is to enhance the accessibility of quality livestock care for farmers. This initiative reaches farmers at their doorsteps, ensuring steady and increased livelihood opportunities.

Beneficiaries	2.20 lakh+
Livestock treated	2.18 lakh+

25. Sustainability

Sustainable Banking

Strategy: Aligned with the overall approach, a centralized Sustainability Unit collaborates closely with diverse stakeholders to develop the ESG strategy for each department. This contributes to shaping the Banks comprehensive ESG strategy.

The Bank formulates its strategic objectives within three-year planning cycles, which are further divided into yearly and quarterly ambitions. Sustainability lies at the core of all the Banks endeavors and plays a pivotal role in the Planning Cycles.

Under the strategic framework of Planning Cycle 6 (PC-6), which will be effective from FY2024 to FY2026, ESG represents one of the key pillars. ESG targets are incorporated into the business targets of the various Business Units (BUs), demonstrating the Banks commitment to promoting sustainability-oriented initiatives in its business and banking operations. These business targets are discussed and approved by the Banks board and then integrated into the Key Performance Indicators (KPIs) of the BUs and Key Managerial Persons (KMPs).

Governance Mechanism: The implementation of the Banks ESG strategy is driven by a range of internal stakeholders. At the highest level, the CSR and Sustainability Committee of the Board oversees the process, followed by the Sustainability Council, the Sustainability Team, and Sustainability Single Points of Contact (SPOCs) at the Business Units (BUs).

The CSR and Sustainability Committee of the Board

• Agrees, reviews and evaluates the sustainability strategy of the Bank

• Provides Industry perspective to the sustainability agenda of the Bank Sustainability Council

• Approves the sustainability strategy, goals and performance

• Reviews the alignment of sustainability policies with the business units

• Review compliance and reporting

The Sustainable Banking Unit is focussed on embedding ESG in three specialized areas, viz. Risk underwriting, Business and Operations:

1. ESG in Risk underwriting:

As a prominent private sector bank in India, the Banks business decisions and the clients play a dynamic role in shaping the economic and entrepreneurial landscape at the national and global levels. While the Bank prioritizes the sustainability of its own operations, it also recognizes the importance of comprehending the broader social, environmental, and ethical risks associated with the services it offers to its diverse range of clients.

To fulfill this responsibility, the Bank has established an Environmental and Social Management System (ESMS) that ensures its investment activities have a positive impact and adhere to well-established international and national ESG lending principles. Through the ESMS, the Bank aims to ensure that the

broader effects of its investments contribute positively to the environment and society while upholding recognized standards in environmental, social, and governance considerations.

A. Environment & Social Management System (ESMS):

The Bank has implemented a comprehensive and integrated ESMS system that mandates the evaluation of wholesale banking loan proposals above a certain threshold for physical and transitional risks associated with ESG factors.

This system ensures that environmental and social considerations are integrated into all business activities, safeguarding the

Banks investments from credit risk, reputational risk, and risks associated with ESG-related factors that could impact credit or asset values. The loan proposals are categorized as High, Medium, or Low risk based on a thorough evaluation and scoring matrix. High-risk proposals are escalated to the Sustainability team for focused review and approval by the ESMS Committee. In some cases, third-party due diligence on clients is also conducted. In FY2023, the Bank introduced an updated ESMS policy and monitoring framework that identifies and assesses industries with severe risks. This includes implementing greater due diligence measures and defining specific actions to be taken, such as client engagement and required evaluation outcomes. A monitoring unit has been established to ensure compliance and provide actionable advice for high-risk cases. The ESMS coverage has also been expanded to include additional Business Units, such as supply chain finance and microfinance. The updated policy has a broader scope and a stronger focus on addressing climate change risks. It incorporates a dedicated checklist for industries classified as severe risk, enhancing assessment standards uniformly. As of March 31, 2023, exposure to severe risk industries accounts for less than 5% of the Banks total advances.

The updated ESMS policy can be accessed at: https://www.indusind.com/content/dam/indusind-corporate/ generic/ESMS.pdf

The Governance Mechanism of the ESMS system is shown in the below diagram:

Enhancement of Assessment Standards for Severe Risk Industries:

The Bank has achieved remarkable strides in elevating its assessment standards for industries associated with severe risk. Through close collaboration with esteemed subject matter experts, the Bank has meticulously crafted industry-specific checklists tailored to nine high-risk sectors. These carefully devised checklists provide a robust framework for conducting consistent and well-informed evaluations of environmental, social, and governance (ESG) risks. Effectively disseminated to the relevant business units, these checklists are accompanied by comprehensive knowledge-sharing sessions, fostering a profound understanding and widespread adoption of these exemplary practices. This unwavering commitment to fortifying assessment standards exempliRs. es the Banks resolute dedication to effectively managing ESG risks across diverse sectors while propelling the adoption of responsible business practices.

C. Selected for TNFD Pilot – Developing Comprehensive Nature-related Risk Management Framework in India:

The Bank has been chosen by (Taskforce on Nature-related Financial Disclosures) TNFD to serve as a pilot partner in India for the development of a comprehensive risk management and disclosure framework related to nature. This collaboration aims to address dependencies, risks, impacts, and opportunities associated with nature and biodiversity.

TNFD is a globally supported initiative backed by the United Nations, focusing on the financial sectors role in safeguarding nature and biodiversity. Similar to the Task Force on Climate-related Financial Disclosures (TCFD), TNFD aims to establish a global framework that enables financial institutions to assess and disclose nature-related risks and opportunities.

By participating in this pilot program, the Bank will have the opportunity to contribute valuable insights and provide on-the-ground feedback to TNFD. This contribution will help refine and strengthen the global framework, ensuring its effectiveness and relevance to financial institutions worldwide. The Banks involvement demonstrates its commitment to responsible and sustainable practices in relation to nature and biodiversity.

2. ESG in business:

The Bank seeks opportunities for expanding its ESG-linked business across the various Business Units (Retail & Corporate) through deal origination, structuring as well as new product launches.

A. Highlights of ESG Products: Various products were developed which promote and embed ESG principles:

Platform to Support Women Entrepreneurs ("WE"):

WE is a pioneering and comprehensive digital solution designed specifically to empower women entrepreneurs and facilitate the scaling up of their businesses. This all-in-one platform offers a holistic ecosystem that addresses women entrepreneurs diverse financial and professional needs. The Bank has partnered with esteemed organizations to provide various forms of support to women entrepreneurs, including mentoring, training, online workshops, industry connections, and access to service providers such as legal, tax, and HR experts. Additionally, the platform helps in equity funding, grants, and government schemes.

The offering is built on three core pillars:

1. Learn: Providing mentoring, training, and online workshops to enhance skills and knowledge.

2. Connect: Facilitating industry connections, fostering peer networks, and building communities to share success stories. Collaborating with service providers such as legal, accounting, taxation, and HR experts. Supporting through incubators. 3. Grow: Offering bank finance options for debt, access to accelerators, equity funding, loans from NBFCs, grants from government and foundations, and access to various government schemes tailored for women entrepreneurs.

The Bank has strategically developed this scalable model, allocating dedicated capital resources in alignment with its overall business plan. This model emphasizes a partnership-focused approach that combines banking and non-banking solutions to empower and support women entrepreneurs throughout their growth journey. As part of this initiative, the Bank organized a ‘Shark Tank style event where women entrepreneurs had the opportunity to raise equity. Facilitated by the Bank, the event garnered significant interest from investors, highlighting the strong potential and attractiveness of the participating women entrepreneurs ventures.

Green Fixed Deposits:

The Banks Green Fixed Deposits scheme, launched in December 2021, received a positive market response. This scheme offered customers the opportunity to invest in deposits that would be utilized to finance assets aligned with the United Nations Sustainable Development Goals (UNSDGs).

To ensure transparency and build trust, the Bank engaged the services of an independent third party, EY, to verify and assure the utilization of funds. The results of this verification process are published on the Banks website, adding credibility to the scheme. For more details, please refer to the following link: https://www.indusind.com/content/dam/indusind-corporate/ generic/Green-Fixed-Deposits-FY22-Assurance-Statement.pdf

Electric Vehicle (EV) Finance Program:

The Bank has also introduced an Electric Vehicle (EV) Finance Program in collaboration with Tata Motors, a leading EV manufacturer in India. This program aims to make electric vehicles more accessible and affordable for consumers. Additionally, the Bank has provided channel financing to dealers and corporates for stocking EV cars from Tata Motors. This initiative was recognized with the prestigious Asset AAA Treasury Awards at the Asia Pacific level for 2023, where the Bank received the Best Solution Supply Chain India award.

B. Partnership with Development Finance Institutions:

The Bank has actively pursued collaborations with funds, foundations, and Development Financial Institutions (DFIs) to provide support to entities and projects in sectors such as Water, Sanitation, and Hygiene (WASH), Healthcare, Agriculture, and Microfinance.

As of March 2023, the Bank has established risk-sharing partnerships totaling over USD 130 million with USAID and DFC. Throughout FY2023, the Bank continued to finance new loans under these partnerships with DFIs.

Furthermore, the Bank has secured direct funding of USD 475 million from DFC to expand support for ‘MSME and ‘microfinance lending for women borrowers in rural communities. Of these funds, USD 150 million was raised during FY2023 to enhance the Banks microfinance lending portfolio for women borrowers in rural communities in Jharkhand, Uttar Pradesh, and Bihar.

C. Sustainable Finance Portfolio:

The Bank has established various sustainable financing initiatives and frameworks, leading to the successful completion of numerous financial deals. Ongoing discussions are focused on further advancing sustainable finance initiatives. The Banks sustainable finance portfolio for FY2023, currently undergoing assurance, represents approximately 46% of the Banks total advances. This reflects a significant increase compared to the 33% reported in FY2018. Aligned with its commitment to sustainability, the Bank aims to double its climate and transition finance portfolio by FY2026.

3. ESG in Operations

Demonstrating a strong commitment to sustainable and responsible finance, the Bank is actively working to expand its ESG impact within its operations. The following progressive initiatives showcase the Banks dedication to integrating ESG considerations throughout its banking practices:

A. Greening the Bank

• Carbon Neutrality Target 2032: The Bank has made a firm commitment to achieve carbon neutrality by 2032. This commitment aligns with the Banks efforts to reduce its carbon footprint and contribute to the Rs. ght against climate change. The Bank has implemented various measures to reach this target, including investments in renewable energy, energy-eRs. cient technologies, and sustainable practices. By embracing sustainability, the Bank upholds its values and strives to create a greener and more sustainable future.

• GHG Emission Intensity: The Bank has achieved remarkable progress in reducing greenhouse gas (GHG) emissions. The Banks emission intensity, measured in Metric Tons of CO2 (MTCO2) per number of branches, has significantly declined from 45.41 in FY2018 to 29.5 in FY2022. Additionally, the Banks emission intensity per full-time equivalent employee has also seen notable improvement, decreasing from 2.5 in FY2018 to 1.9 in FY2022. These significant reductions highlight the Banks strong commitment to sustainability and proactive approach in mitigating climate impact. Continuously enhancing its emission performance, the Bank is making substantial strides toward achieving its carbon neutrality goal by 2032.

• Greening of Bank Branches and Offices: The Bank is deeply committed to supporting Sustainable Development Goal 13, which addresses climate action. In line with this commitment, the Bank has undertaken numerous initiatives to promote sustainability within its own operations and facilitate the transition to a sustainable future.

During FY2023, the Bank reached a remarkable milestone as all its PIONEER branches received offcial recognition from the United States Green Building Council (USGBC) through their esteemed LEED program. Among these branches, nine have been awarded Platinum certification.

In addition to the Banks PIONEER branches, its noteworthy that two of its offices are also LEED certified.

Furthermore, the Bank has taken a proactive stance in promoting electric mobility by installing "Electric Vehicle Charging Stations for Four-Wheelers" at two of its branches. This initiative exempliRs. es the Banks readiness to embrace electric vehicles and encourages the adoption of clean transportation options.

By implementing these initiatives, the Bank actively contributes to the greening of its operations, nurtures sustainability, and plays a significant role in addressing climate change.

• ESG Integration with Technology:

The Bank has demonstrated its innovative use of emerging technologies to develop transformative solutions that address ESG challenges. These solutions offer clients superior digital experiences.

The Bank continuously explores ways to conduct business effectively and efficiently, with technology playing a key enabling role. It has embraced a new-age architecture and transitioned to a multi-cloud environment, aiming to achieve a balanced presence in a hybrid cloud. To enhance the customer experience, the Bank has implemented multiple solutions that focus on providing paperless, presence-less, and cashless options, supported by its new data center. These initiatives align with the Datacenter Evaluation Framework (DEF) and adhere to the latest international guidelines from IEEE.

B. Ratings and Reporting:

• CDP and S&P Global Rankings: The Bank has maintained its leadership position in the FY2022 rankings by CDP and S&P Global, placing it among the top five private sector banks in India.

• S&P Global Yearbook: For three consecutive years, IndusInd Bank has been the only bank featured in the S&P Global Yearbook.

C. Assurances:

In addition to meeting mandatory assurance requirements, the Bank has obtained assurance on ESG initiatives and disclosures from reputable third-party firms for:

• Sustainable Finance Portfolio

• Green Fixed Deposits

• Integrated Report

• GHG Emissions

These assurances have been made available on the Banks website.

D. Policies:

During the year, the Bank reviewed and revised all its policies to align with the latest ESG trends and relevant regulations. The Bank has also enhanced transparency by making these policies accessible on its website at: https://www.indusind.com/in/en/sustainability/policies.html

E. Diversity and Inclusion:

The Bank recognizes that diversity and inclusion extend beyond its internal operations. It extends its commitment to diversity to its customers, partners, and the communities it serves. Key highlights of Diversity and Inclusion at the Bank include:

• 10 Exclusive All-Women Branches: The Bank has launched all-women branches across India in cities such as Jalandhar, Chandigarh, Delhi, Jaipur, Pune, Bhubaneswar, Kolkata, Bengaluru, Chennai, and Thiruvananthapuram.

• Hiring of Neurologically Diverse Employees: In FY2023, the Bank hired 10 neurologically diverse employees, and it currently has 25 specially-abled permanent employees.

• Board of Directors: Out of a total of 10 directors, the Bank has 2 women directors on its board.

• Plus 1 Initiative: All department heads have been directed to add female resources to their existing teams.

F. Capacity Building:

• Training and Awareness: The Sustainable Banking team disseminates information to all employees of the Bank using engaging infographics to communicate key ESG topics.

Infographics enhance accessibility and understanding of complex sustainability concepts, empowering employees to contribute to the Banks sustainable objectives.

• Upskilling of Staff: The Bank is committed to upskilling its staff. Four team members have obtained a certificate in ESG investing from the CFA Institute, while three members hold the UNEP FI Environmental & Social Risk Analyses certification. These accomplishments reflect the Banks dedication to staying at the forefront of sustainable finance and promoting responsible banking practices.

G. Employee Volunteering:

In November 2022, the Bank introduced its inaugural employee volunteering policy, highlighting its commitment to fostering a vibrant and uniRs. ed approach to volunteering across the organization. By encouraging employees to contribute their time and expertise to support communities in need, the Bank promotes a culture of giving back and making a positive difference. To facilitate employee volunteering, the Bank launched a dedicated portal in January 2023, providing a platform for employees to choose volunteering activities aligned with their interests and skills. In FY2023, the Banks employees collectively dedicated approximately 4,000 hours to volunteering, demonstrating their passion for making meaningful contributions to society.

The Bank strives to align its strategic focus areas with its sustainability commitments. In line with its commitment to transparency and accountability, the Bank has been publishing an Integrated Report for six years. This report serves as a comprehensive communication tool, illustrating how the Banks strategy, governance, performance, and prospects generate long-term value. Prepared voluntarily in adherence to SEBI Circular No. SEBI/HO/CFD/CMD/CIR/P/2017/10 dated February 6, 2017, the Integrated Report showcases the Banks value creation story. The latest Integrated Report, highlighting the Banks green initiatives, is available on its website: https://www.indusind.com/in/en/sustainability.html

26. Internal control systems and their adequacy

Operational controls

The Bank has sharpened internal controls and compliance through the following:

• Standard Operating Procedures have been defined for processes at branches to ensure consistency of delivery with the expanding branch network;

• Branch Monitoring Unit is entrusted with regular monitoring of branch operations;

• The Process Adherence and Quality function has beenoperationalized for attaining uniformity in processes followed by branches, to minimize operational risk; and

• Expenses Management Software has been deployed at all branches for facilitating cost control.

Internal Audit

The Bank has a robust, distinct and dedicated Internal Audit function performing an independent and objective evaluation of the adequacy and effectiveness of internal controls, information security controls, risk management and governance systems and processes on an ongoing basis to assure that the policies, regulations and internal standards defined for management of the various risks in the Bank are operating effectively. The Internal Audit Group is manned by appropriately skilled, experienced and qualified personnel.

In congruence with the Reserve Bank of Indias Guidelines on Risk-based Internal Audit (RBIA), the Bank has adopted a comprehensive Internal Audit Policy and the Internal Audit function undertakes a risk-based audit of the Banks businesses. An Audit Plan is drawn up based on risk proRs. ling of auditee units and the audit is undertaken at a frequency synchronized to the risk profile of each unit in line with the guidelines relating to risk-based internal audit. The audit function also serves as an advisory by recommending improvements in processes and service quality, wherever deemed fit.

To strengthen the Internal Audit function and to achieve incessant real-time supervision and control, critical units of the Bank are subjected to independent Concurrent Audits by reputed audit firms.

The Head - Internal Audit functionally reports to the Audit Committee of the Board (ACB), ensuring his independence and for administrative purposes, reports to the Managing Director

& CEO. The ACB reviews the efficacy of the Internal Audit Department, the effectiveness of controls laid down by the Bank and compliance with internal and regulatory guidelines, thus ensuring alignment with the global best practices on corporate governance.

Compliance

Compliance Risk is defined by the Basel Committee as "the risk of legal or regulatory sanctions, financial loss, or loss to the reputation that a bank may suRs. er as a result of its failure to comply with all applicable laws, regulations, codes of conduct and standards of good practice". It includes the conduct of banking and financial business (including conflicts of interest), privacy and data protection, and in particular, provisions on the prevention of money laundering and combating financing of terrorism.

Compliance is an integral part of the culture at IndusInd Bank. The Bank accords the highest priority to compliance with laws, regulations and internal rules for all of its businesses and operations. It is the responsibility of every staff member to perform their functions within the framework of the statutory and regulatory regime.

The tone of the compliance culture within the Bank starts from the top. The Banks Board of Directors is responsible for overseeing the management of the Banks compliance risk. The Bank has formulated a Compliance Policy enumerating the Compliance Philosophy of the Bank and establishing an independent compliance function in the Bank.

The strong compliance culture is ensured through detailed policies and guidelines, strong procedures, mechanism of regular reviews, monitoring and testing, regular messages from the Top Management on the importance of compliance and zero-tolerance towards non-compliance, and compliance awareness programmes.

The Compliance function plays a vital role in ensuring that the overall business of the Bank is conducted within the ambit of rules, regulations, laws and internal guidelines. The function assists the Board and Top Management in efficiently managing the compliance risk. The Compliance function works as a nodal link between the Bank and the Regulatory Authorities, namely RBI, SEBI, DFS, UIDAI, IBA, IRDAI, PFRDA, etc., and provides guidance to all verticals in the Bank on applicable regulatory framework, i.e., regulatory guidelines, statutes and advisories issued by the Regulatory Authorities.

The Bank has adopted three lines of defense approach with (a) operations and business controls as the first line of defense; (b) internal governance including Compliance Risk Management as the second line; and (c) Internal Audit being the third line of defense to ensure a strong compliance culture at all levels.

Vigilance function

The Vigilance Department has been functional in the Bank since October 2008 and its objective is to enhance the level of managerial and operational efficiency and effectiveness. The aim is to prevent, detect and analyze corruption/wrongdoing/ misdemeanors on the part of the employees and follow it up by deterrent/ preventive action to ensure the highest standards of integrity, governance and ethical practices.

The Whistle Blower Policy was adopted by the Bank in 2009, to provide a channel to various stakeholders, viz., employees, customers, suppliers, shareholders, etc., to bring to the notice of the Bank any issue involving compromise/violation of ethical norms, legal or regulatory provisions, etc., without any fear of reprisal, retaliation, discrimination or harassment of any kind. The Banks policy and processes in this regard are in complete sync with all statutory and regulatory guidelines on Vigil Mechanism to ensure a compliant, fraud-free and ethical work environment.

Submission of financial information to information utilities

In accordance with the regulations under the Insolvency and Bankruptcy Code (IBC), 2016 and of the Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017, which has come into force with effect from April 1, 2017, financial creditors are required to submit information to Information Utilities (IU). The Insolvency and Bankruptcy Board of India (IBBI) registered National E-Governance Services Limited (NeSL) as the first IU under the IBBI (IUs) Regulations, 2017 on September 25, 2017. As per the directives of the Reserve Bank of India, all financial creditors regulated by RBI were advised to adhere to the relevant provisions and immediately put in place appropriate systems and procedures to ensure compliance with the provisions of the Code and Regulations.

In accordance with the same, we are happy to share that the Bank has executed the necessary agreement with NeSL and submitted the required data as per their guidelines.

Customer Service

Over the years, IndusInd Bank has been continuously evolving its Customer Service strategy to improve efficiency and enhance the client experience in line with its vision of being the ‘Most Convenient Bank. The CEX strategy for FY2023 aimed at building strong and lasting customer relationships by providing exceptional services to clients across all touchpoints including online and offine channels. This includes identifying experienced drivers, quantifying their impact and prioritizing action for superior customer Experience.

The Bank has invested in setting up a dedicated Client Experience unit that continuously measures the Voice of Customers through transaction and engagement feedback, in a digital mode. During the year, the Bank adopted the Net Promoter Score (NPS) as a key metric to measure Customer Loyalty and Satisfaction and to drive improvement actions across its various customer channels and journeys.

The Bank is making steady progress in its commitment to deliver superior customer service experience as exhibited by the increase in the Promoters trends, resulting in improved Net Promoter Score across journeys. During the year, the overall Net Promoter score showed a healthy increase of 16 points since the launch of the NPS program. The Voice of the customer along with the feedback from the relationship managers helps to assess customer satisfaction and enhance the existing client experience and service delivery standards for every channel.

Client Experience often reflects how the organizations employees feel about their work. The Bank believes there is a direct connection between employee experience and customer experience and happy and supported employees are more likely to deliver enhanced customer experiences. Considering the employee as one of the critical stakeholders, the Bank has continuously placed renewed thrust on increasing employee engagement and ensuring mployee satisfaction. Moreover, to ensure a positive client experience, it is imperative to have synergies across all teams to bridge gaps. With this objective, the Bank captures and measures the voice of internal customers (i.e. Employees). This not only allows employees to share their feedback but also allows driving improvement through benchmarks for internal departments.

Providing an exceptional client experience is an ongoing process and IndusInd Bank is committed to the continuous process of understanding its customers and devising its client experience strategy to meet their changing requirements.

Grievance Redressal Mechanism

The Bank follows the Board-approved ‘Grievance Redressal Policy, which lays down a defined escalation process for all customer complaints received at branches and Corporate Offices, within the overall framework of RBI guidelines.

The Bank has also appointed an Internal Ombudsman and complaints which are rejected and/or partial relief is being provided to the Complainant, are referred to him for an independent review.

A Quarterly Report related to complaints received and redressed is placed before the Standing Committee on Customer Service (SCCS), Customer Service Committee of the Board (CSCB) and Board of Directors (BOD). Based on the recurrence of complaints in specific areas, causative factors are identified and remedial measures are initiated.

Customers can contact their respective Branch Manager or call the Banks Contact center on the toll-free number or email the dedicated email IDs or access the Banks website, www.indusind.com to lodge their grievances in a simpliRs. ed way and get their complaints redressed promptly.

Details of the Nodal Officer/ Regional Managers and Integrated Ombudsman Scheme, 2021 of the Reserve Bank of India are displayed at branches and hosted on the Banks website.

Shareholder Satisfaction

At IndusInd Bank, we understand the significance of regular and transparent communication with our shareholders. We are committed to providing our shareholders with best-in-class services and promptly informing them of any developments within the Bank.

To facilitate effective communication, we collect contact details such as email addresses, mobile numbers, and telephone numbers from our shareholders. This enables us to directly communicate with them regarding Bank updates. In addition to these direct communications, we also disseminate information through various channels, including Stock Exchanges, Press releases, the Banks website, and the Registrar & Transfer Agents (RTA) website. Our practice of sending SMS/ email messages to shareholders continues, keeping them informed about Board meetings for Quarterly/ Annual Financial Results and providing snapshots of the results.

As part of our commitment to "Green Initiatives," we strive to transition to paperless disclosures and compliance. With the implementation of the Companies Act, 2013, we are now permitted to send Annual Reports and other communications electronically to shareholders who have registered their email addresses with the Bank or provided them through the Depository.

We kindly request shareholders to furnish their email IDs to investor@indusind.com or submit a written request to the Secretarial & Investor Services Office. This will help us accelerate the migration to paperless communication.

The complete text of the Annual Report is readily available in an easily navigable format on our website at www.indusind. com under the link "Investors/Reports and Presentation/Annual Reports." Shareholders are also informed about the process for claiming any unclaimed dividend amounts held by the Bank.

Regarding the transmission of securities, in the case of physical mode securities (held in a single name without nomination), SEBI has prescribed simpliRs. ed documentation for a threshold limit of up to Rs. 5,00,000 (Rupees Five lakhs only) as per Circular No. SEBI/HO/MIRSD/RTAMB/P/CIR/2022/65 dated May 18, 2022.

However, the Bank has discretion to increase this threshold limit up to Rs. 10,00,000 (Rupees Ten lakhs only) for shares held in physical mode, as decided at the Board Meeting held on October 13, 2014. To ease the difficulties faced by legal heirs of deceased shareholders in obtaining Succession Certificates/Probates/ Letters of Administration, the Board of Directors has delegated authority to the Share Transfer Committee. This authority approves the transmission of securities held in physical mode with a market value of up to Rs. 10,00,000 (Rupees Ten lakhs only), subject to compliance with the simpliRs. ed documentation procedure prescribed by SEBI.

Shareholders should note that as per Section 124 of the Companies Act, 2013, any unpaid or unclaimed dividends remaining for a period of 7 years from the date of transfer to the Banks Unpaid Dividend Accounts are required to be transferred to the Investor Education and Protection Fund (IEPF) established by the Central Government.

Furthermore, the Ministry of Corporate Affairs has enforced Section 124(6) of the Companies Act, 2013, which mandates the transfer of all shares on which dividends have not been paid or claimed for seven consecutive years or more to the IEPF Authority. On April 28, 2023, the Bank sent intimation to shareholders regarding unpaid or unclaimed dividends for FY 2015-16 that have remained unclaimed for seven consecutive years or more. Shareholders were requested to claim the dividend on or before July 31, 2023, to avoid the corresponding shares being transferred to the IEPF Authority. Notice of this matter was also published in Financial Express (all editions) and Loksatta (Pune Region) on April 29, 2023.

For detailed procedures on claiming shares/dividend amounts transferred to the IEPF Authority, shareholders are encouraged to visit the website of the IEPF Authority at: http://www.iepf.gov.in/IEPFA/refund.html.

Shareholders can contact Link Intime India Pvt. Ltd., the Registrar

& Share Transfer Agent of the Bank (contact details and office address provided in the Notice), or the Secretarial and Investor Services Department of the Bank to claim any unclaimed dividends in their name.

Information regarding unpaid or unclaimed dividends, details of affected shareholders, and shares due for transfer to the IEPF Authority can also be found on the Banks website at www.indusind.com.