IndusInd Bank Ltd Management Discussions

• Statutory Reports

1. Macroeconomic and banking environment

The Indian economy grew at a robust pace in the year 2023-24, taking the annual average growth over the last three years to 8.3%. India continued to be the fastest-growing major economy in the world, further cementing its post-pandemic recovery. Official estimates placed real GDP growth at 8.2% for the year. Encouragingly, this phase of growth is supported by an upturn in the investment cycle backed by persistent and robust public sector capital expenditure, households real estate investments and private corporate sector capacity additions gradually improving. Private consumption became a soft spot. Uneven monsoon rains affected farm production and rural demand, while urban consumption levels remained strong, supported by the services sectors continued rapid growth. A revival in the manufacturing sector saw the non-farm economy register over 8.5% growth, while farm sector growth declined to its lowest in eight years. The external sector dragged on growth eased, as exports of goods and services picked up supported by resilient global growth and a turnaround in global trade. The Global economic and financial outlook improved over the second half of the year, with activity holding steady and inflation reverting to targets in many countries. According to the IMF, in 2023 headline inflation neared its pre-pandemic levels in most economies and is expected to ease further over over CY2024 and - CY2025. Economic activity was resilient despite higher central bank rates, helped by steady growth in employment and incomes. The US and several large emerging markets, including India, outperformed the estimates made at the start of the year. While stronger- than-expected private consumption and larger-than-expected government spending propelled growth in many economies, Indias growth surprise was driven by strong investment activity. Along with that, macro-economic stability parameters improved. Headline CPI inflation eased despite multiple food price shocks, the current account deficit (CAD) narrowed, the pace of fiscal consolidation was accelerated and foreign exchange reserves reached a record high. Reflecting these improving fundamentals, the Rupee exchange rate remained largely stable.

Growth during the year predominantly came from fixed assets investments. GDP estimates showed that gross capital formation is expected to clock 9.2% growth in FY2024 over 9.0% growth in FY2023. Of the 8.2% headline growth, 4.3% is due to capital formation, which is powered by public sector capital expenditure. Central government capex recorded 30.5% y-o-y growth for the year. State capex also saw a pick-up, to 2.9% of GDP in FY2024 from 2.5% in FY2023. Household sector investment activity in physical assets continued to show strong growth, on top of 17% growth in FY2023. In contrast, private corporate sector capex continued to lag. Private consumption, which contributes

over half of the GDP, remained a soft spot for overall growth and is estimated to have registered 4% y-o-y growth during the year. External sector drag eased over the second half, with export growth holding steady and import growth slowing down compared to the first half.

Macroeconomic policy focus remained on supporting growth while maintaining price and financial stability. Fiscal policy aimed to shore up public investments to create a more conducive environment for private capex. Monetary policy levers were left unchanged after a 250 bps increase in the Repo rate in FY2023 in order to guide inflation towards the 4% target over the medium- term. The monetary policy committee (MPC) left the Repo rate unchanged at 6.5% throughout the year and maintained a policy stance of withdrawal of accommodation. While the headline CPI inflation eased to an annual average of 5.4% compared to 6.7% in the previous fiscal, it remained above the target. Liquidity conditions in the banking system turned into a persistent deficit mode from September, after four and a half years of surplus, on the back of an increase in currency-in-circulation and a buildup in governments cash balances. Prior to that, withdrawal of currency notes of ^2000 denomination from circulation shored up system liquidity. The RBI imposed an incremental CRR in August to avoid a surplus liquidity build-up. Stable policy rates, anchored inflation expectations, lower government borrowing needs and proposed inclusion of Indian government bonds in the JP Morgan and Bloomberg emerging markets bond indices, helped pull down sovereign yields across the curve, especially for the longer tenors. Over the year, yield on 1-year G-sec eased by 5 bps, while the yield for the 5-year and 10-year tenors eased by 11 and 26 bps respectively.

On the fiscal front, the FY2025 budget maintained policy continuity, accelerated the pace of fiscal consolidation and retained focus on capex. A reduced budget size as a percentage of GDP with a largely unchanged tax-to-GDP ratio, which reached a 16-year high in FY2024, and a non-tax revenue boost from the RBI dividend, will help reduce budget deficit. For FY2025, the fiscal deficit is estimated at 4.9% of GDP versus 5.6% for FY2024. Capital expenditure at 3.4% of GDP versus 3.2% last year, is slated to grow by 17% over the year, with railways, roads and national highways

continuing to receive a majority of allocation. For financing the fiscal gap, net market borrowings at ^11.63 trillion, are placed at nearly same level for the last two years, though gross borrowings at ?14 trillion are lower than ^15.43 trillion in FY2024. The budget has thus used the positive economic backdrop to strengthen long-term potential growth through investments and build back fiscal buffers to counter future shocks and free up space for productive spending.

Bank credit growth remained strong during the period, with improving economic activity. Growth in non-food bank credit increased to 16.3% y-o-y as at the end of March 2024 from 15.4% as at the end of March 2023. From a sectoral perspective, credit growth was driven by services and retail sectors. Credit growth to the services sector at 21.2% y-o-y, remained resilient during FY2024, while personal loans growth moderated to 18.1%, especially after the regulatory measures taken by the RBI in November. Industrial credit growth, which was tepid during the first half, improved over the second half due to higher offtake by large as well micro and small industries. Credit growth to the agriculture sector clocked 20.1% growth. The asset quality of banks improved, with the overall Gross Non-Performing Assets (GNPA) ratio declining to 2.8% in March 2024 from 3.9% a year ago. A combination of tight liquidity conditions and robust credit demand prompted banks to increase their term deposit rates to raise fresh deposits. Transmission of the cumulative 250 bps repo rate hike to lending and deposit rates continued, with banks increasing rates on the back of persistent credit demand. In the current tightening cycle, the extent of transmission to term deposit rates has remained higher than the lending rates.

On the external side, the Indian Rupee remained largely range- bound supported by strong macroeconomic fundamentals and improvements in Indias external position with a moderation in the Current Account Deficit (CAD), revival of capital inflows, and rising foreign exchange reserves. The Rupee depreciated by 1.4% against the US dollar, although it outperformed other emerging market currencies.

Going forward, the outlook for growth remains promising. Domestic conditions are supporting a trend upshift in real GDP growth. Private consumption is expected to recover, aided by ongoing - pick-up in rural demand, IMD forecast of abovenormal monsoon in 2024, and improving consumer confidence. A sustained momentum in manufacturing and services and improving employment conditions will help support urban demand and overall private consumption. Investment activity prospects remain bright. Private corporate capex is becoming steadily broad-based. This, combined with robust government capital expenditure, healthy balance sheets of banks and corporates, rising capacity utilization levels, and positive business

• Statutory Reports

Sentiment, supports a strong pace of capital formation. Improving global growth and trade prospects also bode well for exports. However, risks to growth are numerous, including protracted geo-political tensions, extreme weather conditions, heightened financial market volatility as systemically important global central banks carefully navigate the last mile of disinflation, geoeconomic fragmentation and rising trade tensions, particularly with concerns around Chinas manufacturing exports. The year 2024 is also the biggest ever election year. A record number of countries are holding elections. Global flow of capital and goods can be impacted by their outcomes, especially of the U.S. presidential election. Indias strong external buffers, flexible exchange rate and overall macro-economic stability will help mitigate any adverse global developments and sustain growth.

2. BUSINESS OVERVIEW

The global economy remained resilient, witnessing a synchronous rebound that stabilized outlooks. This recovery enhanced exports and improved capital flows, leading to recalibrated spending that drove higher private investment and consumption.

Consumer spending has grown post-pandemic, reflecting the rise of the middle-income class and a shift in consumption patterns. Demand for luxury and high-end products and services is growing faster than for basic goods. The number of middle- to high-income households is expected to rise with increasing disposable income, likely amplifying this trend and driving overall private consumer expenditure growth.

IndusInd Bank continues to participate in this robust economic progress with healthy and granular business growth . We are proud that the Bank has achieved two important milestones this financial year: completing 30 years of operations and exceeding ^5,00,000 crores on its balance sheet. The Bank showed consistent performance across all vectors. Deposits grew by 14% y-o-y with improved share of retail deposits. Overall loan growth for the year at 18% y-o-y was driven by granular business segments. Profit After Tax for the year increased by 21% y-o-y to ^8,949.78 crore, with a ROA of 1.90% and an ROE of 15.32%.

2.1 Planning Cycle 6 Progress

The Bank completed the first year of the planning cycle and the progress was broadly in line with the stated objectives. Below is a demonstration of the performance in the identified 5 key focus areas of the PC-6 strategy.

1) Continuing the Retailization Journey — Retailization of deposits was one of the major focus areas for the Bank during the last 4 years and the bank has made significant progress. The share of retail deposits as defined by LCR increased to 44% in Mar-24 from 31% in Mar-20. The Bank however believes this is a work in-progress agenda and will continue its sharp focus on realization of deposits and aim to increase the share of retail deposits to 45%-50% by end of PC-6 (FY26).

2) Diversifying Domains - The Bank carries domain expertise in livelihood financing including Vehicle Finance, Microfinance and Gems & Jewellery. These domains have delivered strong risk adjusted returns across cycles. The Bank continues to grow these domains while diversifying via launch/ scale-up of new initiatives.

• Vehicle Finance: Over the period, the Bank has diversified its vehicle finance book with addition & scale-up of new vehicle categories like Light Commercial Vehicles, Cars, Utility Vehicles, Construction Equipment & Tractor portfolios. The Bank has built leadership positions across vehicle categories and reduced its dependence on the MHCV segment. The Bank has ramped up its LCV business by carving out a dedicated business unit. Banks LCV market share has now crossed 10% from sub 5% a few years back. The Bank also scaled up its passenger vehicle book improving balance between passenger and commercial vehicles. Overall, the vehicle portfolio is now diversified across product categories and the Bank is well positioned for sustainable growth across different product cycles.

• Micro Finance/ Inclusive Banking via BFIL: The Bank is transitioning BFILs rural business from microfinance to micro banking via merchant offering, two-wheeler loans, individual loans, liabilities build-up. With scale- up of merchant business, the share of non-microfinance loans is now close to 13% of overall loan sourced via BFIL as on Mar-24. Going forward, the Bank aims to increase the share of the non-microfinance portfolio to 30%-35% in the next couple of years. The deposits sourced via BFIL are also now more than ? 2,900 crores as on Mar-24.

• Gems & Jewelry: The Bank is adopting the One Bank approach to capture the entire echo-system via community banking and scale-up of non-diamond loan book. The Bank has launched Indus Solitaire a community focused relationship programme offering a gamut of tailored banking services for the Diamond Industry.

3) Scaling Sub-scale Businesses - The Bank is scaling its new and existing initiatives across assets and liabilities. This is one of the key focus areas for PC-6. On the asset side, the loan book under home loan product, which was launched last year, stands at ?1,792 crores while merchant advances via BFIL are at ?5,565 crores growing at 38% YoY. MSME initiatives have shown strong traction driven by sharp focus via dedicated business units & best in class digital offerings. Overall, loan book via our MSME focused business units grew at 26% YoY in FY2024. The Bank continues to scale existing liabilities initiatives of Affluent and NRI Banking. The Bank will further expand affluent and NRI offerings with the launch of Private Banking focused on HNI/ UHNI customers.

4) Accelerating Digital 2.0- The Bank has laid a strong digital foundation with progress on its Digital 2.0 strategy and Digital Bank has been carved out as a distinct business unit focused on delivering innovative customer centric solutions across Individual & MSME segments with a goal to build a profitable Digital Bank. The INDIE app launched in the last financial year is seeing healthy early trends & user adoption with 5mn+ downloads, 1.2mn accounts opened and around 10mn transactions per month. Overall the Bank will continue to Integrate digital across our businesses with scale up of existing initiatives and plan launches

5) Imbibing ESG into Business - The Bank prioritizes delivering long-term value to our stakeholders by embedding sustainability principles deeply in our business. The Bank has deepened its impact on the society through responsible lending, mitigating climate change, and promoting social behavioral changes.

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.

2.2 Operating Performance

The salient features of the Banks Operating Performance during FY2024 are summarized in the table below:

(? in crore)

Particulars	FY2024	FY2023	y-o-y Growth
Interest Earned	45,748.21	36,367.92	25.79%
Interest Expended	25,132.30	18,775.80	33.85%
Net Interest Income	20,615.91	17,592.12	17.19%
Non-Interest Income	9,387.85	8,166.37	14.96%
Revenue	30,003.76	25,758.49	16.48%
Payment to Employees	3,895.28	3,030.52	28.54%
Other Expenses	9,943.53	8,008.05	24.17%
Operating Expenses	13,838.81	11,038.57	25.37%
Operating profit before Depreciation, Provisions and Contingencies	16,164.95	14,719.92	9.82%
Depreciation	424.68	373.44	13.72%
Operating Profit	15,740.27	14,346.48	9.72%
Provision and Contingencies	3,798.24	4,486.83	-15.35%
Profit Before Tax	11,941.53	9,859.65	21.12%
Provision for Tax	2,991.75	2,469.93	21.13%
Net Profit	8,949.78	7,389.72	21.11%
Consolidated Performance
Operating Profit	15,864.06	14,419.02	10.02%
Net Profit	8,977.30	7,443.49	20.61%

Key Balance Sheet Parameters:

			(? in crore)
Particulars	FY2024	FY2023	y-o-y Growth
Deposits	3,84,792.92	3,36,438.14	14.37%
Advances	3,43,298.27	2,89,923.68	18.41%
Balance sheet size	5,14,935.15	4,57,804.05	12.48%

2.3 Business Performance Highlights

FY2024 was a year of consistent growth and healthy profitability for the Bank. While the operating environment saw challenges in terms of heightened liquidity, sticky inflation, adverse geopolitical developments etc., the Bank exhibited healthy traction across key metrics executing on strategic objectives.

During FY2024, the Bank further strengthened its liability profile with sharp focus on realization of deposits. The share of retail deposits as per LCR improved by 151 bps to 44.1% vs 42.6% YoY. The Bank scaled-up new segments like Affluent Banking with deposits at ? 53,445 crores growing 24% YoY and NRI Banking with deposits at ? 45,628 crores growing 33% YoY.

Loan growth at 18% YoY has been healthy driven by granular businesses with retail loans growing at 23% YoY and Corporate at 13% YoY. The share of retail loans improved to 56% vs 54% YoY.

Asset quality remained steady, with Gross NPA and Net NPA down at 1.92% & 0.57%, respectively vs 1.98% & 0.59% YoY. The Provision Coverage Ratio (PCR) remains healthy at 71% with contingent provisions of ?1,000 crores outside PCR.

Net Interest Income grew by 17.19% YoY, totalling ^20,615.91 crore, compared to ?17,592.12 crore in the previous year. The Cost of Deposits increased to 6.34% from 5.32% a year ago amidst the heightened rates and tight liquidity. The Bank however maintained steady and healthy Net Interest Margin (NIM) at 4.28% supported by improved portfolio yield and mix.

Other Income witnessed a growth of 14.96%, reaching ^9,387.85 crores from ?8,166.37 crore. The fee income continues to be driven by granular retail sources with consumer banking fee contributing more than 70% of overall other income.

The Bank persisted with investing in the Banks branch infrastructure, digital initiatives, human capital, and brand building efforts. In FY2024, the Bank added 378 branches, bringing the total to 2,984 branches widely spread across geographies and regions. Additionally, the Bank has bolstered its rural presence through its subsidiary BFIL, which now operates 3,620 branches covering 1.57 lakh villages.

Overall, Banks Net Profit for the year increased by 21.11% to ^8,949.78 crore compared to ^7,389.72 crore in the previous year. The Bank has consistently delivered Return on Assets (RoA) and Return on Equity (RoE) close to 1.9% and 15% respectively during FY2024.

The Bank is making efficient utilization of capital with improved risk density and robust internal accruals. During the current year, the Bank has not raised any equity or non-equity Tier 1 or Tier 2 capital. Banks CRAR remains healthy at 17.23% with total capital of ^66,115 crores. The Bank exercised call option on AT1 bonds of ^1,489.90 during the year, resulting in the outstanding AT1 Bonds standing at Nil.

3. Consumer Banking

3.1 Consumer Liabilities

The Consumer Banking division has demonstrated an impressive growth trajectory in its liabilities business across various client segments, underscoring its resilience amid fluctuating market conditions. A critical factor in this success has been the strategic focus on deposit mobilization, which resulted in a remarkable 21% y-o-y increase in the Consumer Liabilities Book. This growth is attributed to a multifaceted approach, which includes acquiring new customers, strategic branch expansion, enhancing the lifetime value of existing customers, and effective cross-selling efforts.

By leveraging the power of digital technology and analytics, the Bank has skilfully capitalized on opportunities to attract retail deposits through an Omni-channel campaign strategy, with a particular focus on its exceptional product suite. The Introduction of the Indus GRANDE program, characterized by its commitment to convenience, modern offerings, and personalized experiences, has further bolstered The Banks appeal to discerning customers. Additionally, the Bank has pioneered community banking with the launch of the Indus Solitaire program, focussing on diamond merchants & their employees. This innovative program offers 0% cross-currency markup for business travelers across the globe on metal cards, dedicated Solitaire branches for support during nonbusiness hours, and a lifetime free locker facility for customers.

In line with its consumer-focused initiatives, the Bank has continued investing in merchant payment solutions and current account offerings for retailers, diversifying its portfolio and enhancing its market presence. These comprehensive efforts have resulted in significant growth in the new CASA (Current Account Savings Account) Acquisition Value in FY2024.

3.2 NRI Banking

The NRI segment has demonstrated continuous growth with a 33% growth in FY2024 on NRI Liabilities. The Banks market share on NRI liabilities has grown 2.2x since March 2019 and the Bank is now a vital player in the NRI banking landscape.

In an endeavor to further strengthen its position, the Bank is working on expanding its product suite and partnerships across the globe. The online multi-partner remittance platform, Indus Fast Remit, which is currently live for USD and SGD, will soon be expanded to add more partners and currencies. IndusInd Bank remains committed to the NRI community and soon will be offering a gamut of FCY products in addition to Savings and Term Deposits from 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 198 branches as NRI-focused branches. Moreover, to service NRI clients, the Bank has established a strong Virtual Service team, digital banking platforms and 24x7 Toll-Free Call Centre numbers in select countries to cater to NRI clients residing outside India.

3.3 SME and Merchant acquiring

As of March 31, 2024, the Consumers current account book continued to grow over the previous year. Through our wide network of branches, we engaged with the Business Owners segment, which resulted in 99% of branches contributing to Current Account Business, led by digital client onboarding and the addition of payment products like POS, Soundbox, and QR stickers/Standees.

The Bank continued to invest in providing a seamless client journey by integrating digital interfaces like Indus Merchant Solution. The Bank also added Current accounts for self-employed and new- age small businesses, which allow them to open accounts 24/7 with the help of DIY—CA, a platform focussed on digital KYC for current accounts.

The Bank has maintained its strategic focus to bolster its Merchant Acquisition business by implementing substantial enhancements to the Indus Merchant Solutions (IMS) App and augmenting its digital payment collection capabilities. In line with the Banks commitment to offering comprehensive digital payment solutions, the Bank has seamlessly integrated VKYC-based CA opening and merchant on-boarding for new to bank clients, complemented by an array of innovative features in IMS App tailored to address the evolving needs of SMEs / MSMEs.

This has led to a significant increase in the Banks active merchant base as of March 2024 compared to the previous year. This impressive growth trajectory can be attributed to the expansion of the Banks geographic footprint along with the enhanced productivity facilitated by the IMS App.

3.4 Retail Payments

Our retail deposit growth has been robust, and similar to the previous year, it was supported by higher-than-average growth in UPI transactions. UPI transactions achieved a growth of 70% over the previous year, while the Industry grew by 57%. We are the first in the Industry to launch Payment Wearable - Indus PayWear, the most convenient payment form factor that offers flexibility to the customers to use either debit or credit card through DIY App. It is available in the form of rings, watch clasps & mobile stickers.

The Bank is also strengthening its position in the transit space with a focus on FASTag customers. Our persona-based campaigns and customer engagement matrix are designed to encourage digital payment activation across various channels and merchant categories. Post the success of the Delights Debit Card, the Bank this year has introduced the World Delights Debit Card, offering esteemed customers up to 5% cashback on transactions across merchant categories, thus driving card spending.

3.5 Client Wealth Management

The Wealth Management division played a pivotal role in the Banks financial performance in FY2024. Throughout the year, we remained committed to delivering tailored solutions to meet our clients evolving insurance and investment needs while ensuring prudent risk management practices.

The Banks insurance services segment experienced steady growth, driven by increased demand for comprehensive coverage across various sectors. We expanded our innovative product offerings by adding two new life insurance partners, taking the partnerships to four life insurers, three general insurers, and one stand-alone health insurer. Furthermore, our focus on customer- centricity and excellence in claims management contributed to high customer satisfaction and retention levels.

Our investment management division delivered robust results, demonstrating resilience and adaptability in navigating challenging market conditions. We maintained a disciplined approach to investment selection. These solutions are made available through more than 25 Asset Management Company partners. Additionally, we continued to enhance our digital capabilities to provide clients with seamless access to a wide range of investment solutions.

As of March 31, 2024, the Bank managed substantial Assets Under Management (AUM) of ^2,50,540 crore on behalf of its customers. These assets include investments in Mutual Funds, Portfolio Management Services (PMS), Alternate Investment Funds (AIF), and demat accounts. Additionally, the Bank has successfully mobilized insurance premiums of almost ?3,000 crore for Life and Non-Life insurance products during FY 2023-24.

3.6 RACC - Retail Assets and Cards

The RACC franchise, which encompasses retail agriculture, loans against property, credit cards, personal loans, business loans, loans against card receivable, gold loans, loans against securities, health care finance, prime home loans, and overdraft against fixed deposits, saw disbursements grow by 35.3% y-o-y. Cards spending also increased by 24.7% y-o-y, resulting in a 29.9% y-o-y growth in the overall book.

On the Risk Cost front, RACC closed the fiscal year FY2024 at 2.36% of Average Net Receivables.

3.6.1 Retail Agriculture Business

To expand its reach in the core sector of the Indian Economy, the Bank has sanctioned an impressive amount of over ?3,250 crore to support more than 21,000 farming households across 135 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, reaffirming 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 KCC Interest Subvention and Pashu KCC for individual farmers.

3.6.2 Loan Against Property

IndusInd Banks Loan Against Property (LAP) business continued its growth momentum in FY2024, focusing on portfolio growth and maintaining asset quality. LAP disbursements grew by 15% y-o-y, and advances increased by 12% y-o-y to ^10,811 crore. The Banks branch channel contributed to 37% of overall disbursements, effectively reducing the cost of acquisition of loans. An increase in advances and fee income has ensured profitable growth for the business. New product variants introduced in FY2024 further boosted sourcing and revenue. The business continued to leverage its credit scorecards and collections efficiency to enhance asset quality and risk cost.

3.6.3 Prime Home Loans

IndusInd Banks Prime Home Loans business was launched in September 2022 to offer loans to individuals for the purchase & construction of residential housing units. The business gathered momentum in FY2024, leading to advances growth of 368% y-o-y to ?1,792 crores. The Home Loans business is currently being sourced from 22 locations across 13 states. The business will continue to focus on advanced growth and asset quality.

3.6.4 Personal Loans

The Personal Loan disbursements grew by 42% y-o-y in net value, and the portfolio grew by 49% y-o-y, along with 14% y-o-y growth in Fee income. The focus was on Salaried Open Market Customers, Digital Business, and cross-selling Personal Loans to existing Savings account customers, contributing to 80% of disbursals. Moreover, an impressive 42% of the disbursals were sourced and fulfilled completely using digital platforms, helping improve efficiencies and customer experience. The product has a live portfolio size of ?7,950 crore (4.64 lakh accounts), with 2.04 lakh accounts being on-boarded in FY2024 itself.

3.6.5 Credit Cards

The Bank continues strengthening its credit card franchise and has made rapid strides in FY2024.

New customer account acquisition for Credit Cards surpassed the 1 million mark in the last fiscal year, with customer onboarding through digital platforms contributing to an increase of over 98%. As of FY2024, there are now over 2.86 million Cards in Force (CIF).

The credit card spending 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 maintain its market share in overall spending volumes. Total Spending in the financial year grew by 24.7% year over year. Portfolio metrics have shown robust growth in numbers. ENR (End Net Receivable) grew by 28% compared to the last fiscal year.

During the year, the Bank launched the IndusInd Bank Platinum RuPay Credit Card, the first credit card on the RuPay Network that seamlessly combines the convenience of UPI with the rewarding experience of credit cards. The card offers accelerated 2X rewards on UPI transactions with a high redemption rate of Re. 0.35 per reward point, with the flexibility to convert reward points into air miles or opt for multiple redemption options.

The Bank launched the Avios Visa Infinite Credit Card to cater to ultra-HNI frequent flier customers with best-in-class offerings. It is an ultra-premium metal card with an innovative, sleek design which is the countrys first credit card to offer the benefits of two leading international airlines— Qatar Airways and British Airways— on a single card. The card allows customers to select their preferred airline loyalty program, meet & greet services at leading international airports worldwide, earn accelerated rewards on chosen international destinations, and enjoy unparalleled joining and milestone benefits.

In line with our vision to cater to diverse segments, the Bank launched the IndusInd Bank Samman RuPay Credit Card exclusively for the government sector employees. This card offers a comprehensive range of features including Scan N Pay with UPI, 1% Cashback on all Retail spends, Movie tickets, and Fuel Surcharge benefit.

3.6.6 Business Banking Group

With the Governments and the financial sectors efforts to bolster support mechanisms for MSMEs, the demand for MSME credit increased in FY2024. Growing digital infrastructure for the MSME sector has facilitated easier credit availability for this segment.

The Banks MSME Book under business banking grew by 21% y-o-y. Last year, we launched the MSME Branch Operating Model 2.0, which redefined our distribution strategy for MSMEs. We have identified 128 MSME Hubs across India to intensify our penetration into products targeting the MSME segment.

The customer remains at the core of our business strategy. In our continuous effort to evolve our product offerings, we introduced new products to broaden our coverage and meet customer needs—the IndusWE program for Women Entrepreneurs, CGTMSE- backed loans to Micro and Small Enterprises, Rooftop Financing products, and Loan Protect Insurance are just a few examples.

Over the year, new acquisitions have reached an all-time high, and the updated branch operating model has significantly boosted growth. MSME Hubs across the country now serve as one-stop solutions for MSME customers for all their banking and financing needs.

In terms of asset quality, the books quality, which was previously impacted by COVID-19, has stabilized. Further, this segments focus on MSMEs enhances the Banks involvement in Priority Sector Lending.

As a critical pillar of our PC 6 strategy, the Bank maintains a strong focus on the MSME segment, recognizing it as one of the core growth engines that augment the Banks asset book and granularity. With the governments increasing emphasis on providing ease of doing business for MSMEs, the Bank anticipates healthy growth in the portfolio in the coming years.

Digital infrastructure is a key lever for achieving scale in this segment. The Bank is committed to strengthening its digital capabilities, aiming for a Digital transformation that encompasses both clients and other internal/external stakeholders. Currently, 70-80% of our new acquisitions are digitally enabled, giving customers best-in-class sanction turnaround times.

The Banks endeavor is to continue to enhance client experience and address clients financial needs across both business and personal wallets. It also strives to provide best-in class service. This commitment is demonstrated by ongoing investments in revamping processes and developing new products to meet these goals.

4. Affluent Banking

Through its flagship brand, PIONEER, the Affluent Banking Business offers a bespoke Banking and Wealth Management program to the HNI and UHNI client segment across India and International markets. Over the last five years, Affluent Business has achieved robust growth and delivered a CAGR of 20% on NRV, 34% on Liabilities, and 30% on Fee Income, touching an NRV of over ^82,000 crore in March 2024. It has rapidly consolidated its position amongst the top wealth management franchises in the country.

Affluent Business has achieved this rapid growth through the relentless execution of its three-pronged approach:

• Exceptional value and experience to clients across all financial products and services. We leverage the power of One Bank to offer universal banking and wealth solutions customized to clients risk profiles and financial goals.

• Widespread distribution with seasoned Banking Partners, Service Relationship Managers and domain specialists offering services via a large network of Bank branches, dedicated PIONEER lobbies and banking outlets. The frontline team is groomed to handhold clients over the long term and act as the one-stop window for all their financial requirements.

• Use of technology and a superior tech stack across all categories to enable seamless, prioritized, proactive service delivery, advanced analytics tools, data mining, and ML (Machine Learning) for providing cogent insights and realtime alerts.

The Bank unveiled "PIONEER Private" in the first half of FY25, delivering remarkably greater value and benefits to the top end of the Affluent segment. Building upon the PIONEER brand, PIONEER Private will offer an elevated and exclusive basket of financial products, backed by a team of highly experienced Private Bankers. This strategic launch aims to attract clients in the top tier of the value chain, significantly boosting our NRV and profit margins. With the introduction of PIONEER Private, IndusInd Bank will provide a comprehensive spectrum of financial services, ranging from Microfinance to Private Banking, solidifying its position at the forefront of the financial industry.

5. Consumer Finance Division

The Consumer Finance Division (CFD), focusing on vehicle financing, is one of the Banks three areas of domain expertise, boasting a healthy market share across product segments, deep customer penetration, and a well-managed business franchise.

The CFD extends funding for a wide range ofVehicles/ Equipment, including Heavy, Light, and Small Commercial Vehicles for l both 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 across all these segments.

Additionally, the CFD offers low-cost/affordable housing loans, actively supporting the Housing for All initiative, which is a key focus area for the government of India.

CFD managed approximately 3 million loans with an outstanding of ^90,383 crore as against ^77,115 crore in 2022-23, a 17% increase over the previous year. In terms of advances growth, passenger vehicles recorded the highest growth, with 31% growth over the previous year and advances of ^25,658 crore as against ^19,600 crore in the previous year. This was followed by Light Commercial vehicles, which recorded a 22% growth over PY at ^10,923 crore.

Disbursement in 2023-24 was at an all-time high of ^50,804 crore, as against disbursement in 2022-23 ^46,309 crore, a 10% increase over the previous year. CFD disbursed loans of 10.46 lakh in 2023-24. New car disbursement has increased to ^11,318 crore in 2023-24 from ?9,279 crore in 2022-23, an increase of 22%, and Used cars to ?3,622 in 2023-24 crore from ?2,857 crore in 2022-23, a 27% increase. The commercial vehicle segment encompassing Medium and Heavy Commercial vehicles, Light Commercial Vehicles, and Small Commercial Vehicles recorded a disbursement of ^20,726 crore, an 8.7% growth over previous year, and Construction Equipment recorded a 17% growth over 2022-23 at ^6763 crore disbursement as against ?5,703 crore in 2022-23. Tractor funding showed a de-growth for the year at a disbursement of ?3,875 crore, consequent to a de-growth in the Tractor industry sales. Two-wheeler disbursement was stable around ?4,100 crore in FY2024.

The operations of CFD are well supported by a back office and the Document Storage and Retrieval Facility at the Banks Karapakkam Unit in Chennai. During the year, this Unit handled nearly 50 million transactions. CFD sources applications for all products through Android Tablets, which has enabled a seamless credit and business approval process

6. Bharat Financial Inclusion Limited

6.1 Bharat Financial Inclusion Limited (BFIL)

Bharat Financial Inclusion Limited (BFIL), a wholly owned subsidiary of IndusInd Bank, is a business correspondent of the Bank for promoting financial inclusion and offers various banking services such as microfinance loans, loans to merchants, 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 157,000 villages, and operates in 549 districts across 23 states as of March 2024, encompassing rural, semi-urban, and urban centers. With a dedicated team of more than 36,000 field staff, BFIL facilitates daily financial transactions for customers, including small loan disbursements, installment repayments collection, opening savings and deposit accounts, insurance services, and fulfilling aspirations such as owning a two-wheeler or consumer durable items.

6.2 Macro Economy & Sector Outlook

The Indian economy has showcased robust growth backed by increasing private consumption expenditure. A recently released Household Consumption expenditure survey showed a more than doubling of consumption per rural household (?3,773 in 2022-23 vs ?1,430 in 2011-12).

Also evident is an increase in non-food expenditure (transport, consumer durables & medical expenses), presenting an opportunity for BFIL with its Consumer Durable Finance, Hospicash (Hospital Cash Insurance Benefit) & Rural Mobility loans.

6.3 Assets

As of 31 March 2024, BFIL managed an asset portfolio of over ^44,000 crore, growing 22% y-o-y, and an active borrower base of 95 lakhs through its 3,620 branches across 23 states. Disbursements for the year 2023-24 exceeded ^53,500 crore, growing 23% y-o-y. BFIL is serving an overall client base of around 160 lakhs across Assets and Liabilities, out of which 77 lakhs hold asset and liability products of the Bank.

Microfinance

BFILs Joint Liability Group (JLG) model is focused on supporting women entrepreneurs at the bottom of the economic pyramid, enabling them to achieve financial independence, good health, well-being, and quality education. Most of these women engage in rural economic activities, such as livestock rearing, farming, producing agricultural products, crafting handmade goods, tailoring, and many more. BFIL operates through a blend of high touch (BFIL field staff assisting the borrowers in conducting financial transactions) and technology-driven (inhouse technology platform enabling paperless processing of loans) models that have enabled it to gain market leadership in this space.

Through its JLG model, BFIL exists in 1.51 lakh villages across 453 districts and 21 states. It handles the credit requirements of 88 lakh women borrowers and receives deposits from 104 lakh clients.

During FY2024, BFIL added 23.5 lakh "New To Bank" loan clients to its Joint Liability Groups.

As of 31 March 2024, BFILs JLG-based loan book amounted to ^38,562 crore, registering a ~20% y-o-y growth.

Loans to Retailers

BFIL has been offering loans catering to the needs of entrepreneurs managing small retail stores across the country, thereby addressing the "Missing Middle" through its Bharat Super Shop (BSS) and Bharat Money Stores (BMS) programs. BFIL provides these nano entrepreneurs 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.

As of 31 March, 2024, BSS operates in over 500 cities across 19 states, serving over 14 lakh retailers, and has an active borrower base of nearly 7 lakhs and a loan book of ?5,565 crore, growing at 38% y-o-y. The loan book of the BMS merchants was ?139 crore as of March 31,2024.

6.4 Liabilities

True to its vision of being a diversified financial services provider to its serviced Banks customers, BFILs liability book has shown robust y-o-y growth. Customers serviced by BFIL hold more than 179 lakhs active accounts with IndusInd Bank, and the liability pool for all BFIL-serviced customers, including savings, current, recurring, and fixed deposit accounts, amounts to ?2,912 crore (+24% y-o-y) as of March 2024. The growth in liability balances was driven by a 30% increase in CASA deposits.

6.5 Transaction points and customer service

BFIL continuously endeavors to bridge the last-mile gap and enhance financial inclusion in India. In 2017, BFIL developed Bharat Money Store (BMS) in collaboration with IndusInd Bank, creating a banking and transaction platform for Kirana Merchants to achieve this objective.

As of 31 March, 2024, BMS has about 83,400 Kirana merchant outlets spread across 34,860 villages, 326 districts and 12 states reaching out to the remote corners of India. During the year, more than 19,000 new merchants were onboarded. The merchants leverage BMSs banking and transaction platform and act as banking touchpoints providing a range of banking and financial services to the public.

During FY2023-24, the BMS outlets served more than 54.4 lakh rural customers and facilitated transactions worth ?4,994 crore, including Aadhaar-enabled remittances, opening savings and deposit accounts, utility payments, and more.

6.6 CSR Program

Bharat Sanjeevani is the flagship CSR program of BFIL, designed to offer emergency response services to livestock farmers at their doorsteps. Utilizing advanced technology, the program effectively reduces mortality rates and health issues, enhances productivity and promotes better livestock management practices. By alleviating challenges such as the shortage of qualified doctors and transport costs for cattle, Bharat Sanjeevani lightens the burden on farmers and enhances their livelihoods.

The program operates on a Doctor on Call model, where farmers can avail services by calling a toll-free number and receive timely assistance based on the severity of the situation. Along with treatment, essential medicines are provided to farmers, guaranteeing prompt and focused treatment for their livestock.

Currently, the Doctor on Call model is operational in eight states: Jharkhand, Madhya Pradesh, Maharashtra, Himachal Pradesh, Telangana, Karnataka, Rajasthan, and Uttar Pradesh.

In FY2024, the Bharat Sanjeevani Program has achieved remarkable milestones, impacting the lives of over 4 lakh livestock farmers and providing crucial treatment to more than 6.34 lakh livestock. Notably, this initiative has been pivotal in saving the lives of 4.42 lakh critical animals. Moreover, it has significantly lightened the financial burden on 90% of farmers by reducing out-of-pocket expenses previously incurred for animal treatments, transportation, and medicines while achieving a 66% reduction in livestock morbidity. An impact assessment conducted by a reputable external agency has found that since its inception, the Bharat Sanjeevani program has helped avert economic losses amounting to ^19,715 crore across three states: Jharkhand, Madhya Pradesh, and Maharashtra.

The Bharat Sanjeevani Programs notable contributions have been well recognized. During the year, the program won the inaugural IIT Madras CSR Awards Building India 2047—Technologies for a Better Tomorrow for its impactful work and technological innovation and research to bring change in society.

Bharat Pragat, another BFIL CSR initiative launched in 2019 in Kalaburagi District, Karnataka, is making strides in holistic village- level development.

Having served over 24,000 beneficiaries through 58,366 general physician consultations and 4,801 specialist consultations, Bharat Pragat exemplifies a commendable impact on healthcare provision and community well-being.

6.6 Sustainable Development Goals (SDGs).

Initiatives taken at BFIL align with 12 of the 17 Sustainable Development Goals (SDGs).

Bharat Pragat, a CSR initiative, envisions holistic village development to enhance the availability of basic needs—water and health. The initiative adopts a collaborative approach with the local government and communities and leverages the existing public infrastructure to meet the villagers basic requirements.

By providing comprehensive primary healthcare services, including preventive and curative treatments, through government health facilities and working towards water conservation and increasing water levels in reservoirs.

BFIL supports members by providing financial assistance for purchasing products that contribute to sustainable development goals.

No Poverty and Zero Hunger: BFIL offers IndusInd Bank products to the underbanked segments of the population, promoting financial inclusion and offering income-generating loans that address poverty. CSR initiatives directly help livestock health and sustain income generation through livestock. Under CSR Initiatives Bharat Sanjeevani, emergency response centers offer precision- driven service through technology, guaranteeing farmers prompt and accurate treatment for their livestock and ensuring income levels are sustained. Artificial insemination helps improve income generation through the creation of livestock assets.

Good Health and Wellbeing: Bharat Sanjeevani and Bharat Pragats CSR initiatives offer comprehensive healthcare services, contributing significantly to community health and well-being.

Gender Equality: By providing microfinance loans exclusively to women, BFIL supports female entrepreneurship and boosts womens participation in the workforce.

Clean Water and Sanitation: The Bharat Pragat initiative focuses on water conservation, enhancing water table levels in reservoirs, and ensuring the availability of clean water. Financial assistance is provided to purchase water filters, ensuring the availability of clean water in the hinterlands.

Affordable and Clean Energy and Climate Action: Several clean energy products such as solar lights and energy-efficient home appliances, contribute to reduced carbon footprints and promote clean energy usage.

Industry, Innovation, and Infrastructure : Through the loan products of the Bank, BFIL facilitates easy access to financing, enhances mobile penetration, connects remote corners of the country to the Internet, and promotes seamless communication.

Reduced Inequalities and Sustainable Cities and Communities: BFIL promotes financial inclusion and credit facilities for the underbanked, empowered communities by providing livelihood opportunities and reducing inequalities.

Partnerships for the Goals : The Bharat Pragat initiative adopts a collaborative approach with the local governments and communities, forging reliable partnerships to achieve sustainable goals.

7. Global Diamonds and Jewellery Group (GDJG)

The Gems and Jewellery Industry has long been important to Indias exports. This sector is one of the areas focused on in Indias growth story, particularly in boosting exports of goods and services. Apart from contributing to merchandise exports, the sector provides substantial employment opportunities in India and fosters the growth of MSMEs. GDJG is the biggest player in financing this industry segment in India and globally. This sector is one of the Banks major domain leadership verticals. The Banks excellence in this field has been recognized repeatedly by the Trade Council. Recently, the Gems and Jewellery Export Promotion Council (GJEPC), sponsored by the Commerce Ministry of the Government of India, awarded the Bank as the Best Bank Financing the Industry in the category of Highest Growth of Limit Sanctioned with Minimum Base of ?500 Crore.

GDJG, from predominantly being a mid-stream player for financing manufacturers of polished diamonds, has evolved to financing rough trading activities, polished distribution, jewelry manufacturing and distribution, domestic retail jewelry, and lab- grown diamonds. Apart from financing through the domestic tariff area, GDJG has contacted clients in Hong Kong, UAE, Belgium, USA, and Luxembourg through GIFT City. The total client base is 40% MSME, and the portfolio quality was maintained during FY2024. The coverage model is based on relationship banking, which captures the clients entire wallet. It provides a huge crosssell opportunity for the Bank.

8. Corporate and Commercial Banking Group (CCBG)

The Banks Corporate and Commercial Banking Group serves a wide range of corporates, from emerging mid-large Indian companies with an annual turnover of over ?150 crore to large conglomerates, public sector undertakings, NBFCs, financial institutions, and multinational multi-corporations.

The CCBG franchise offers a comprehensive corporate product suite to support the financial and strategic banking needs of clients throughout their entire business lifecycle. This includes working capital finance, supply chain solutions, trade solutions, cash management services, capex and project financing, strategic advisory and financing, capital markets solutions, global market solutions, and varied cross-bank products and services.

Corporate Indias performance in FY2024 aligned with the credit growth expectation. Corporate credit profiles improved in FY2024 as a result of deleveraged balance sheets, healthy domestic consumption demand, and the governments continued focus on capex.

As of March 31,2024, the Banks corporate book stood at ^1,52,053 crore, experiencing y-o-y growth of 13%. The credit expansion was wide-based across large, mid, and small corporates in FY2024. Small corporates grew at a faster pace, aligning with the Banks strategic focus on developing its small and emerging midcorporate book.

Since the onset of PC 6, there has been a conscious effort to focus on small businesses within the corporate book, with an aim to granulate the book. This has resulted in a steady increase in the share of small corporations in the overall corporate franchise— from 8% in March 2022 to ~12% in March 2024.

The asset quality of our corporate book remains steady as we focus on balancing our risk profile with large corporates - our proportion of A-rated customers has increased from last years level; the risk density of the corporate book has improved from last year, and the slippage ratio has reduced in FY2024. Our corporate franchise remains healthy and fundamentally well-placed to leverage economic tailwinds and have desired segmental growth.

Looking ahead to FY2025, the units focus will be on achieving growth with improved profitability and deepening its presence in small & mid corporates. The Bank will continue to focus on identified strategic priorities:

a) Deepening corporate franchise across segments and building a dominant position in Mid & Small corporates.

b) Sharper focus on ecosystem & transaction banking to drive client profitability, cross-sell and client engagement.

c) Continued sustainable and cost-effective liability franchise build-up by leveraging the ONE BANK approach.

d) Maintaining underwriting excellence to maintain credit costs at desired levels.

8.1 Client Coverage Groups

As a client-facing franchise, it is important to continuously evolve our coverage model to ensure optimal coverage across client segments while focusing on our strategic priorities. In light of this, our bank has undertaken a comprehensive review of client coverage units and re-aligned corporate coverage in line with customer segmentation.

This strategic realignment underscores our dedication to adapting to our clients evolving needs, positioning us for sustained growth and success in the future.

Corporate & Institutional Banking Group

This unit is strategically focused on conglomerates/ Institutional groups and large corporations across India, taking into account their geographical and sectoral complexities. The unit aims to provide dedicated and bespoke coverage, a strong panel , of embedded product partners, and differentiated client and service delivery with the aim of strengthening the Banks position

Commercial Banking Group

Commercial Banking Group is focused on expanding the Banks franchise presence in the mid-corporate segment. 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. The unit also has a significant liability book spread across customers, providing granularity in deposits.

The unit focuses on accelerating on-boarding of new clients by focusing more deeply in under-penetrated regions and activating new markets. It aims to leverage strong promoter connections and capture the entire ecosystems opportunities.

Emerging Local Corporates

Previously known as the SME Business Group and carved out in FY2022, this unit is dedicated to meeting the banking requirements of emerging mid-corporate enterprises. In FY2024, the unit has experienced robust growth, with a 35%+ y-o-y increase in assets.

8.2 Specialized Business Verticals

Through dedicated coverage in the identified specialized sectors, the CCBG group focuses on providing a customized product & services suite backed by in-house domain expertise:

Education & Healthcare:

The unit adopts a consultative approach to banking, specifically tailored for clients operating in the Education and healthcare segments. It offers a suite of financial products and services, including project financing, cash management, virtual account solutions, escrow services, and digital services for end-to-end fee collection and reconciliation.

Healthcare Services:

The Healthcare unit primarily serves the healthcare business ecosystem, primarily hospitals (Primary, Secondary, and Tertiary care units) and large diagnostics chains. The Banks consumer franchise complements the unit, which provides medical equipment loans to doctors.

Education Services:

The Education Unit provides specialized solutions to public and private educational institutions and online players to help them achieve their business goals.

Under the combined umbrella of Education & Healthcare, the unit aims to further strengthen the Banks presence in these sectors by leveraging the ONE Bank approach. The strategy involves catering to the diverse requirements of all stakeholders in the ecosystem across retail products, corporate lending products, cash management & advisory services.

Financial Services

The unit provides financial products and services to various players in the financial services sector, including NBFCs, HFCs, insurance companies, mutual funds, capital market clients and public financial institutions. The unit has developed strong relationships with key players, with the majority of its portfolio rated A or higher (Internal rating). The unit has established itself as a preferred transaction banking partner with 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. The unit has made in-roads into well-capitalized and proven fin-techs across their cash management journey.

Real Estate

The unit offers products for commercial and residential projects, including lease rental discounting and construction finance. It also offers advisory & syndication for REIT. 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 covers the entire Agri Value Chain, from 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.

Currently, the Banks unit leads the way in commodity funding through the Banks flagship Pledge Finance product against Agri commodities. The unit progressively focuses on mid-size corporates in the food and agriculture sectors, positioning the Bank as a significant player in the dairy financing & edible oils 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 Banks Priority Sector Lending (PSL) targets.

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 across industries, including large and mid-corporates. The key ones are Auto and Auto OEMs, Steel and Consumer Durables.

The supply chain finance product offered by the unit has significantly strengthened relationships with large corporations, and it is supported by a dedicated and experienced relationship team, robust 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.

The SCF portfolio under supply chain financing has been one of the key contributors to the initiative of portfolio granularity for the Banks corporate franchise. The Bank continues to invest and build its capabilities in small businesses.

The Banks comprehensive SCF product solutions are among the best-in class, further validated by various accolades. The unit received several recognitions at International and Domestic platforms for SCF solutions/business. Our supply chain finance team was awarded Excellence in Supply Chain Innovation and Creativity and Outstanding Customer-Centric Supply Chain by BW Business World in the 2nd Edition of Supply Chain Competitiveness Awards 2023.

The Bank has consistently demonstrated excellence, winning six awards for the sixth consecutive year at The Asset Triple A Treasuries Awards, 2024. These accolades underscore the Banks commitment to offering best-in-class, industry-leading solutions.

Additionally, the Bank has maintained a high-quality portfolio in its SCF book and achieved significant growth, owing to its strict governance processes and comprehensive portfolio monitoring tools.

8.4 Project Finance

The Project Finance unit excels in providing 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 clients evolving needs.

The unit has been the Banks pillar of strength in creating value for both 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 governments increased focus on Infrastructure development, the unit is well poised to capitalize on the forthcoming opportunities.

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 various sectors. The unit caters to a diverse array of industries, such as Financial Services, Renewable Energy EV - mobility solutions, Fintech/Digital Tech, Healthcare, Hospitality Logistics, Education, Real Estate and the entire spectrum of Industrials and Manufacturing. The unit provides strategic solutions across M&A Advisory, Private Equity Advisory, Structured Finance 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 well-established DCM team, given their sector-agnostic expertise, continues to partner with other units within the Bank to offer bespoke debt solutions for clients. Their services span a wide array, including project finance, structured finance, foreign currency, working capital, securitization, off-balance sheet financing, mezzanine, and acquisition financing.

In addition to employing a debt underwriting and sell-down strategy, the DCM team is actively engaged in providing debt advisory and fundraising services for corporate clients. This involves syndicating the debt with reputable institutions that meet the clients specific end-use requirements, while adhering to the local regulatory framework. The teams effectiveness is amplified by leveraging the Banks excellent distribution reach across a network of banks (Private, Public & Foreign), NBFCs, asset management companies (including mutual funds, credit funds, impact funds, infra debt funds), FPIs, insurance companies, multilateral institutions, and more.

With a remarkable track record, the Bank has established itself as one of the leading Mandated Lead Arrangers in India. The Banks strong performance isatestamenttoitsexpertiseand commitment to delivering exceptional financial solutions to clients.

8.6 Public Sector Group

The Public Sector Group cultivates close ties with various Public Sector Undertakings (PSUs), including illustrious Maharatnas, Navratnasand 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 ofthese prestigious PSUs.

The PSU Assets are preferred by many lenders considering the lower delinquencies and hence the Assets portfolio growth is achieved under stiff 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, including Trade, Forex, Cash Management and a suite of digital products. Furthermore, a comprehensive range of Asset products, including term loans, working capital finance, bonds and NCDs 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 for the senior management team. The Bank is keen to garner increased market share and be a sizable banking partner to strategic large PSUs.

8.7 Financial Institution Group

Financial Institution Group (FIG) is responsible forthe management and administration of relationships with Banks and various types of Financial Intermediaries in the global financial market. The unit manages relationships across Financial Institutions ranging from Domestic Banks, International Banks, Development Financial Institutions (DFIs), Export Credit Agencies (ECAs) and Multilateral Financial Institutions (MFIs). The Unit also manages and supervises the Correspondent Banking Network of the Bank, which comprises the 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. 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 to the Banks top and bottom line by building a profitable and high-quality FI Book. FIG works closely with the ALM desk in areas such as resource raising and balance sheet management, adding value to these endeavours by virtue of their domain knowledge and client coverage. During the year FIG helped to generate liquidity from global and domestic financial institutions to the tune of US$ 5 billion through market borrowings, syndicated / bilateral loans, inter-bank deposits and refinance. 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 Centre Banking Unit (IBU) at GIFT City

The Banks offshore branch, IBU at GIFT City, concluded the year with a balance sheet size of USD 2.88 billion as of March 31, 2024.The unit witnessed substantial growth in offshore business, offering a variety of services including International Retail, External Commercial Borrowings (ECBs), Trade Credits, loans to overseas entities, Swaps and Derivatives. The IBU caters to both client and proprietary portfolios.

The IBU is instrumental in serving both existing and new clients, contributing to the overall 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 IBU GIFT based entities & Indian diaspora offshore. The Unit has extended the Banks brand globally, as it offers end-to- end solutions to large corporates with international presence, engaging in the global syndicated loan and financial markets. Through these endeavors, the IBU has enhanced the Banks global reach and established itself as a trusted global financial partner.

Furthermore, IBUs Global Markets desk leads commands over a third of the derivative trades at IFSC GIFT City by leveraging and strengthening the presence to trade in non-deliverable derivatives contracts and other offshore products. This strategic position has enabled the desk to generate steady revenue through trading and offering treasury risk solutions globally. Additionally, the IBU maintains a leading position with around 13% market share in customer liabilities amongst the IBUs at IFSC GIFT City, highlighting prominence in managing significant customer liability books.

The Bank continues to be at the forefront in its association with IFSCA in formulating guidelines on financial markets derivatives as a member of the Advisory Committee on Exchange Traded Currency Derivatives and on sustainable finance as a member of the Expert Committee on Climate Finance.

9. Digital Banking

During the year, the Bank continued to drive its Digital 2.0 agenda - accelerating the shift from being tech-enabled to tech- led. Overall, the digital strategy of the Bank strives to achieve 3 objectives: (a) create a differentiated and superior customer experience across digital platforms and applications to enhance customer engagement and advocacy, (b) transform existing lines of businesses to drive operational efficiency and unlock productivity gains and (c) to create new business models on the backof digital platform marketing and open banking

The IndusMobile application continued to experience robust growth, with a 19%y-o-y increase in monthly active users.The app now has a customer base of 8.4 million registered users. Ongoing enhancements to the platform have led to improved ratings of 4.5 stars on the App Store and 4.3 stars on Play Store. Similarly, the Indus Merchant Solutions app has also seen significant expansion, with the registered user base growing to nearly 60,000 users. The monthly active user base for this app increased by 38%y-o-y.

The Banks WhatsApp banking platform continues to register robust growth with conversions increasing by 202% y-o-y, supported by an 8.5 million registered user base. Additionally, the Bank successfully scaled up the Central Bank Digital Currency (CBDC) pilot, now has a base of 1.2 lakh registered users on the CBDC app.

The EasyCredit stack continued to see enhancements during the year with support for more facilities such as LCBD, buyers credit in small business banking. The platform supports commercial cards, business cardsand secured credit cards.The complete retail unsecured business is now fully transitioned to the EasyCredit stack, and the Bank processes more than one million personal loan and credit card applications through the stack every month across DIY, branch, asset sales, and partnership-driven models.

Induslnd Bank now has one of the most comprehensive digital stacks for new customer acquisition with end-to-end digital journeys for multiple products - savings accounts, term deposits, current accounts, personal loans, credit cards and small-ticket business loans. These are integrated with Video KYC and mar- tech stack capabilities to drive platform marketing and funnel management and conversions.The lending platforms are enabled with real-time decision algorithms that leverage advanced analytics and machine learning.

Consequently, the direct digital business model of the Bank scaled during the year, with the digitally acquired liabilities balance sheet growing by 41% y-o-y and digitally acquired assets surging by 139% y-o-y. The Bank acquired nearly 2 million clients digitally, during the year, disbursed over ?1000 crore in personal loans to new-to-bank clients acquired digitally, and acquired more than 250,000 new credit cards relationships digitally.

The digital business model emphasizes efficiency, with customer acquisition costs for digitally acquired clients significantly lowerthan those foroffline models. During the year, there was a 25-30% improvement in customer acquisition costs for digitally acquired clients. The digital marketing team focuses not only on performance marketing, content marketing and awareness marketing. As a result, the brand search volumes for Induslnd Bank across major keywords increased 2X during the year, leading to an increase in the organic mix across digital lines of businesses.

9.1 Launch of INDIE - a revolutionary way to Bank

During the year, the Bank launched INDIE - a revolutionary new way to Bank!

Launched in October 2023, INDIE is possibly the most innovative and transformative product ever launched by any major bank in the country. INDIE aims to revolutionize personal finance with several industry firsts, shifting from a product-led to a customer-led operating model delivering the best of breed in all financial services, including payments, lending, wealth I management, deposits, rewards/loyalty or family banking. Hyper personalization, trust, security as its core tenets. Differentiated features of INDIE include:

Advanced Payments Capability: INDIE offers best-in-class payment capabilities, enhanced with advanced analytics to learn from customer behavior. The app provides smart reminders for bill payments and other recurring payments, ensuring you never miss a due date.

Flexible Line of Credit: INDIE offers a flexible line of credit - unlike traditional personal loans, customers get a line of credit on the app, and they can simply drawdown as needed, manage repayment according to their preference and adjust tenor for each drawdown.

Customizable Loyalty Program: INDIE allows customers to choose their loyalty programs actively. Instead of a rigid loyalty program, CUSTOMERS can select brands where they desire 6X rewards and receive accelerated rewards for spending on these selections. Brand or category selections can be changed monthly. Rewards are clean, simple and simply redeemable as cash via the app (1 Reward Point = 1 Rupee).

• INDIE offers security like none other. With INDIE, you can get a numberless debit card so that your card details are never exposed when using your card at a POS. Instead of a Static PIN that most debit cards work with which is more fraud prone, INDIE offers the ability to users to use their debit cards via Dynamic PIN which is generated only in the app and valid only for a few minutes. Users can even single-use a single use virtual disposable card from the app so that they can use their card comfortably on lesser known websites / apps that they dont trust. The single-use plastic is a virtual plastic that is generated instantly on the app and self-destructs itself once the transaction is done.

• To enhance convenience in payments, INDIE also offers Super OTP for low network zones so that customers can generate an OTP from the app to do transactions whenever they are in low mobile network zones.

On INDIE, you benefit from smart deposit products that blend the liquidity of a savings account, allowing transactions to automatically utilize funds from the term deposit when the savings balance is low. You can even set up auto-sweep right from the app and ensure you get high returns on excess funds by automatically sweeping them to a term deposit.

Moreover, INDIE provides comprehensive management of your IndusInd Bank Credit Cards. You get a complete overview of your credit card details, allowing you to view recent, unbilled and billed transactions. You can have full control over your card transaction limits and the app enables you to temporarily or permanently block your credit card if needed. Setting or resetting the PIN is also streamlined for enhanced security and convenience.

Plus, an exciting line-up of products in wealth management, NRI banking, and family banking will soon be launched on the app. The app garnered five million installed base and one million new customers within 6 months of the launch and is already processing almost 10 million transactions every month. Bank is now in the process of migrating its existing customers on the platform.

9.2 EasyCredit: Accelerating Business Transformation

EasyCredit - the Banks flagship digital lending stack that offers an end-to-end digital journey for all retail loan products - credit cards, personal loans, unsecured business loans and working capital loans for up to crore exposure continued to drive the business transformation agenda forward. During the year, the platform was enhanced to offer new products such as buyers credit, LCBD, commercial cards, business cards and secured credit cards. Through this platform, the Bank witnessed good uptake of the newly launched IndusInd Bank Rupay Credit Card.

9.3 Enhanced customer experience on existing platforms

a. IndusMobile

IndusMobile is the mobile banking application for all IndusInd retail customers, with a large base of 8.5 million registered customers.The application provides a convenient and secure way for customers to manage their banking activities on-the-go using their smartphones.

To bring ourselves to best market practices, we have implemented several new features to improve user experience. Some of the key enhancements include

• In-app ratings, allow customers to rate the Bank on the Play Store from within the app.

• One span & Lookout (Cybersecurity technologies) integrations for all DPSC and RBI guidelines and providing robust security features for mobile transactions.

• MoEngage (Customer engagement platform) was integrated to provide targeted experiences tailored to your preferences.

• UI revamp for the platform for a more intuitive and visually appealing navigation.

• Real-time account statement downloads to allow users to stay on top of their financial activities.

• OTP to NR Customers via email enabled NR customers to transact even when they are traveling abroad without cellular access.

• Rupay credit card integrations enabled the new growing product line users to access the platform

• Empowered contact center for Mobile - App-related service.

b. IndusNet

The Banks net banking platform, more popularly known as IndusNet, continued to achieve significant milestones throughout the year. Around 0.25 million challans were booked as part of direct tax payments on CBDT portal & around 0.1 million challans were booked as part of GST payments on GST portal via IndusNet.

Throughout the year, significant product updates were made to meet NPCI requirements. These included the enablement of Simplified IMPS, allowing transactions based on just a mobile number and bank name, which streamlined the process significantly. Additionally, comprehensive eNACH Mandate Management features were implemented, including options to amend, cancel, revoke, suspend and perform custom cancellations of mandates. These enhancements have improved the flexibility and efficiency of managing recurring transactions.

With a key focus on client experience & engagement, important product enhancements were made during the year, which includes:

• Enhancement of daily default & maximum fund transaction limits for individual & non-individual clients.

• Introduction of an Aadhaar-based registration process allowing clients to register their account, reset password & unblock user id on net banking platform.

• System performance improvement to improve the Net Promoter Score of clients.

• Introduction of a new alert mechanism providing upfront alerts to clients like password expiry.

The spirit of reinforcing the tax-payment ecosystem is set to be pursued further, with facilities for customs and alliances with multiple State Governments for State Taxes on the cards. FinTech partnerships have been given a special emphasis. Alliances with partners such as Cashfree, EaseBuzz, JioPay, Xsilica, who have played a major role in strengthening Digital Payments being formed in addition to partnerships with the likes of Razorpay, BillDesk, Paytm, PayU.

With a vision to provide an improved & seamless experience of enjoying a plethora of advanced features to clients, the Bank is also in the process of revamping the existing net banking platform. The new platform is currently under development & has been targeted to go live in FY2025 with features including but not limited to:

• Revamped wealth management journeys.

• Customer 360 view across all loans, deposits, cards, and wealth products that the client has with the Bank.

• Revised access management to access all features & flexibility to define their access (view/transact) as per authentication modes & preferences.

• Revamped payment experience with smart alerts and reminders

• Enabling net banking onboarding & servicing for products such as vehicle loans and home loans, allowing them to view their details, download statements of accounts and pay their EMI overdue amounts.

• Revised credit card integration using advanced API stack for improved performance of credit card-related functionalities.

c. Central Bank Digital Currency - Retail and Merchant

CBDC (also referred to as Digital Rupee or e?) represents the latest form of sovereign currency introduced by the RBI, aiming to bolster Indias financial services and digital payments infrastructure. Utilizing blockchain technology, the objective is to facilitate faster, more secure, and cost-efficient transactions.

IndusInd Bank was among the selected organizations involved in the RBIs Central Bank Digital Currency (CBDC) initiative, playing a crucial role in introducing and advancing the Digital Rupee initiative. IndusInd bank has a total user base of 1.2 lakh as of April24 on CBDC. Additionally, IndusInd Bank has successfully concluded the execution of RBIs programmable CBDC disbursement to 50 farmers in Ratnagiri district of Maharashtra, which will cover 1000 farmers going ahead. Programmable CBDC that allows banks to have the option of programming the money by tying it to a specific end use, in this case, funds being disbursed to farmers in lieu of the generation of carbon credits

In the upcoming phase, we will focus on Safai Karmacharis, aiming to increase their income by leveraging revenues generated from plastic waste collection, recycling, and repurposing. The Bank also plans to include features such as using UPI to load money to CBDC wallet, UPI QR Interoperability, UPI Intent Call, Pin-less journey.

Indus Merchant Solutions also integrated the Digital Rupee (e?) wallet for Merchants. Digital Rupee is a sovereign currency launched by the RBI, that serves as a legal tender for financial transactions within India. Merchants can use the IMS app to display the static and dynamic (e?) QR to receive payments in the form of (e?) tokens into their wallet.

d. Indus Merchant Solutions

IMS, the all-in-one digital mobile platform for merchants, released a critical feature which leverages the DIY current account opening journey via video-KYC and also allows merchants to open a current account within 15 minutes through the app.

The IMS app has been significantly fortified by integrating security solutions such as OneSpan and Lookout, enhancing protection against a wide array of mobile threats. These enhancements help safeguard users from devise and network threats, including jailbreak attempts, trojanized versions of legitimate apps, zero-day threats, tampering, debugging, code injection, code modification and data theft.

IMS upgraded its mar-tech stack for enhanced customer experience by seamlessly redirecting merchants to specific in-app pages via interactive marketing campaigns, saving them time and energy in locating particular in-app features.

e. WhatsApp Banking and ChatBot

ChatBot and WhatsApp banking allow the Bank to increase its digital footprint and serve as additional channels for customer engagement. IndusInd Bank aims to leverage the vast user base of WhatsApp to deliver banking services to its deposit and loan customers. This offering enables the Bank to use WhatsApp and ChatBot, where the customer is engaged through AI driven conversational flow that covers queries and provides services such as balance inquiry, mini statement and transaction history.

During the last year, efforts have been made to enhance user experience and security features, including a revamp of the WhatsApp menu to include a next action button, which displays the next best 3 recommended action steps to users. The number of active users on WhatsApp surged by 107% in FY2024 compared to FY2023, whereas the growth rate for ChatBot stands at approximately 20%.

In the coming year, we plan to revamp the entire ChatBot experience to include features such as voice command, vernacular support, and user- feedback-based learning, along with integration into the Banks customer-facing applications. We also plan to incorporate new features in Chabot, including service requests journeys such as ReKYC, Credit Card/Debit card block- unblock, update PAN, Aadhaar, Email, Address, Manage Nominee (CASA, Term deposits), request cheque book, guide pre qualified customers through the loan application process, schedule upcoming bill payments.

f. GIFT CITY App

Gujarat International Finance Tech City, Indias first International Financial Services Centre (IFSC), is a visionary initiative by the Government of India to establish a global financial hub within the country. The IBUs established in the Gift City provide a conducive environment for conducting international financial transactions, offering various banking and financial services to both domestic and international clients.

IndusInd Bank is honored to be amongst the selected banks granted approval to operate within the Gift City IBU. As one of the 14 banks authorized to operate in this prestigious financial center, we are committed to delivering cutting-edge banking solutions and unparalleled service to our esteemed customers. To serve this commitment and enhance the banking experience of our international clientele, IndusInd Bank takes pride in introducing the Gift City International Banking Unit (IBU) Mobile Application, making the Bank one of the first banks to offer a dedicated mobile application for Gift City banking. The Gift City IBU mobile Application will provide a comprehensive range of banking services, including but not limited to the following:

• Inward and Outward Remittances: Facilitating swift and secure fund transfers across borders.

• Fixed Deposits: Offering attractive investment opportunities with competitive interest rates.

• Account Details Viewing: Enabling customers to conveniently access and manage their accounts.

• Transaction Details Download and Email: Providing seamless access to transaction histories for record-keeping and reconciliation.

The application is envisaged to be launched in FY2025.

g. Savings Account and Fixed Deposits Online Platform

Savings Account & Fixed Deposits Online Platform is an important product for the Bank which has streamlined the process of customers opening their accounts digitally seamlessly. In the last year, the bank doubled the number of funded savings accounts and improved conversion by 3.75 times for savings account openings. Some of the major enhancements made to the platform are as follows:

• Ease of account opening for returning users: Easing the customers experience by allowing customer to start their journey from the last dropped stage rather than starting a new journey and filling all details again.

• Co-browsing solution implementation via GTM - Enable the telesales team to check customer steps on their screen, resolve customer queries and guide the customer during the account opening process.

• Making the journey more user-friendly by offering the option to choose between a virtual or physical debit card, showing a product feature comparison table, improving the UI/UX of the landing page, and improving the funding page.

• Enabling Savings Account Co-bundling along with Fixed Deposits to improve the cross-sell and retention for the Bank.

9.4 Digital Marketing

a. INDIE Marketing and Campaigns

During the year, the Bank adopted an Integrated Marketing Strategy. The INDIE campaign blended various marketing efforts, including TV, PR, digital marketing, Out-of-Home (OOH) advertising, and robust social media engagement. This included:

• Press Release & Media Interviews

The campaigns effectiveness was evidenced by its extensive outreach. Notably, INDIE registered remarkable customer growth rates, with a customer base expanding to over 1.2 million within five months and monthly transaction volumes showcasing significant growth. This multifaceted approach highlighted the innovative aspects of INDIE but also positioned it as a transformative force in digital banking, making its launch a landmark event in the industry.

App store ratings:

The apps ratings, 4.6 on the App Store and 4.4 on the Play Store indicated high user satisfaction. These ratings reflected the apps quality, user-friendliness, and successful alignment of the campaign with customer expectations.

Brand visibility:

The campaign garnered 509 million Digital Impressions on Hotstar CTV, Social media and OTT platforms. The TV Campaign resulted in 200 million viewership (70 million households). 2,552 TV Spots were executed against 1,920 planned. With these numbers, INDIE successfully captivated a wide audience, enhancing brand visibility.

9.5 Digital Partnerships

The Bank aims to become a preferred partner for fintechs and ecosystem players by focusing on its tech-led approach and now has 240+ APIs hosted on its gateway, which such partners can integrate in a compliant and secured manner. Recognizing the potential of partnerships to revolutionize financial services, the Bank has increasingly sought to collaborate with external partners to enhance its offerings and reach out to a broader audience.

The Bank has partnered with various fintechs, including leading marketplaces for acquisition of credit cards and personal loans. The Bank targets to strengthen its book by leveraging the delivery and digital capabilities of such partners. The Bank aims to expand its customer base and product propositions for both assets and Liabilities through these partnerships.

9.6 Analytics-Driven Decisioning

Analytics has been at the forefront of customer acquisition, portfolio strategy, fraud and risk management for the Bank. We have deployed 30+ machine learning models to drive seamless and faster decisions across various retail lending portfolios. These models are at the core of all digital lending platforms of the Bank and enable real-time decision-making across retail lending portfolios - personal loans, credit cards, working capital exposures up to ?5 crore, mortgages and personal vehicles. Not just acquisition, the models also support driving portfolio strategy as well as collections

Cutting-edge cloud infrastructure has been leveraged to support large data storage and compute capabilities, introducing efficiency and scalability.

The Bank is poised to leverage GenAI and other innovative solutions to unlock growth and enhance customer experience.

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 the 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 Rupee and Foreign Currency. The liquidity and resource mobilization 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 such as interest rates, equities, foreign exchange and commodities. It strategizes and takes proprietary positions in government bonds, corporate debt, equities, interest rates (? 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 and executes 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 the placement of such securities across various institutional clients/investor segments such as mutual funds, insurance companies, pension and provident funds, banks, NBFCs, wealth managers, Foreign Portfolio Investors (FPIs), Corporates, Alternate Investment Funds (AIFs) and Family offices. 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 large corporations, financial institutions, mid-market corporations, 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 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 actively undertaking proprietary and client hedges across FX, Interest Rates, Derivatives, Credit markets, and Equity IPOs. The Bank has expanded its reach in offshore markets through the Global Markets Desk at its IBU in GIFT City. Further, widen the range of products to be offered by 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 conducted Business Continuity Plan drills regularly. 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 a seamless transaction flow.

11. Transaction Banking Group

The Banks Transaction Banking Group (TBG) provides customers with a comprehensive range of products and services across all business units, including cash management, trade services, trade finance, and global remittances. These services are delivered through various Digital Banking platforms offered by the Bank.

Under the Cash Management Services (CMS), the Bank offers customized and differentiated products to its Corporate and Consumer Banking customers to improve their Payables and Receivables Management efficiencies. The Bank develops these solutions in-house as well by partnering with technology partners, to enable seamless payments, collections and custom solutions. It continues its focus on key new-age CMS offerings such NACH, BBPS, UPI, Escrow services, API-based e-Payments and e-Collections, providing large corporate clients the ability to manage their fund flows and liquidity efficiently. Customer segments such as NBFCs, Real Estate, Education and Renewable Energy have witnessed consistent growth on CMS solutions in the years gone by.

Further to the success seen in the QR-based smart address system (Digital Door Number) for a leading Municipal Corporation. It has made roads with various Panchayati Raj and Gram Panchayats with integrated payment solutions aided the Panchyati Raj departments with smooth disbursement and monitoring of funds, seamless integration with multiple satellite systems viz. attendance module, project monitoring and ease in managing budgets. The Bank continues to grow its presence in the Government segment by providing bespoke CMS solutions through multiple Digital platforms such as the Government Payment System, e-Tendering, GeM, PFMS and subsidy management, improving customer efficiency and increasing sustainable CASA flows for the Bank.

Subsequent to its Agency Bank authorization, the Bank has enabled its customers to pay their Income Taxes and GST through their IndusInd Bank accounts - online as well as via Banks branches. This will be further extended to enable the collection of customs duty and excise duty payments. The Bank is also in the process of integrating with State treasuries for collection of the States Tax and non-Tax receipts.

The Bank offers an all-inclusive range of customized Trade Services and Trade Finance products designed to meet the requirements of Large, Medium and MSME customers based in India and Gift City. Its Trade Product Suite includes Trade Services (A1, A2 transactions, Collections), Trade Finance (Factoring, LC Bill Discounting, Bill/ Invoice Discounting, Buyers/Suppliers Credit, Pre/Post Shipment Export Finance) and other ancillary trade products such as (ODI, FDI, Project Office, Branch/Project/Liaison Office). Its competitive structured trade solutions, alignment to regulations and aided by dedicated sales team help it stand out as one of the top Trade Service and Trade Finance solutions providers in the industry

The Bank continues to be one of the significant players in India-linked Cross-Border Remittances, enjoying a significant market share facilitating LRS Outward Remittances from India and being a preferred India Correspondent for Overseas Banks, Exchange Houses, and Money Services Businesses / Money Transfer Operators.

Digital platforms are the foundation of all Transaction Banking products, and the Bank continues to augment its capabilities in this domain. Clients embraced the Banks platforms forinitiating 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 digital platforms offer rich functionality for clients to initiate individual and bulk payments, payroll processing, Tax, EPFO, ESIC payments, Bank Guarantee, 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. The Bank is amongst the first cohort of banks to go live on digital trade initiatives such as Automated E-Stamping, Digital Document Execution and end- to-end Electronic Bank Guarantee Issuance.

The Bank is one of the founding members of IBDIC (Indian Banks Digital Infrastructure Company) a company formed by 18 Banks to promote digitization of trade transactions using digital Infrastructure.

The Bank is among the front runners in implementing the Central Bank Initiatives — Central Bank Digital Currency (CBDC) App, and the first bank to go live with Programmable CBDC for its customers. The Bank is a pioneer in implementing P-CBDC in collaboration with Circularity Innovation Hub (CIH), an alternate form of CBDC wherein the Bank can program the end use of funds, to disburse funds to farmers.

12. Pan Bank Liabilities Group

In line with the Banks vision of fostering sustainable liability growth and encouraging the diversification & realization of its liability franchise, the Pan Bank Liabilities Group (PBLG) was founded in FY2021. With a strategic eye on the horizon, PBLG meticulously oversees the Banks liability strategy, ensuring seamless alignment with overarching financial objectives. Championing Granularization and retailization, PBLG pioneered targeted initiatives and enabled ~55% of additional deposits during the year from granular sources, increasing the share of retail deposits in the Banks total deposit base and bolstering deposit stability.

Serving as a trusted ally to business units, PBLG provides invaluable support in mobilizing sustainable deposits through collaborative partnerships and valuable insights. By harnessing internal and external market dynamics, PBLG supports business units in sharper decision-making in building a strong liability franchise for the Bank.

In addition to its core functions, the Pan Bank Liability Group (PBLG) catalyzes promoting inter-segment synergy within the Bank. Recognizing the symbiotic relationship between liabilities and assets, PBLG spearheads initiatives to bridge the gap, fostering a holistic approach to customer engagement. By facilitating collaboration and knowledge sharing between segments, PBLG effectively broadens the Banks liabilities customer base from its existing assets customer pool. This proactive approach has not only enhanced the higher adoption of liability products among the assets customer base but also has helped in increasing customer loyalty. Through its commitment to foster synergy, PBLG reinforces Pan Banks position as a dynamic and customer-centric institution poised for sustainable and granular growth.

13. Financial Restructuring and Reconstruction Group

The Financial Restructuring and Reconstruction Group (FRRG) oversees all operations related to the recovery of non-performing loans, restructuring of stressed assets and selling of NPA/stressed accounts for corporates. Additionally, the FRRG is entrusted with 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) to recover dues. Additionally, the Bank is actively utilizing other tools provided by the Reserve Bank of India such as Prudential Framework for Resolution of Stressed Assets / Transfer of Loan Exposure.

14. General Banking Operations

The central GBO teams prompt action on notices/requests has earned appreciation from various Law Enforcement Authorities (LEA) across the country.

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

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 to enhance operational efficiency. 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 by 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 the Cheque Truncation System (CTS), the Bank has 2,562 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 claims settlement for deceased depositors, the Bank has established a comprehensive policy covering all types of deposits and lockers. The policy simplifies 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 and depositors rights. It has also developed a voluntary Fair Practice Code, setting standards for customer interactions across all branches.

The Bank promotes fair banking practices and provides information on customer service activities, the Bank has also introduced the Citizens Charter. Additionally, it has implemented a Customer Compensation Policy, which compensates customers for any direct and actual loss resulting from service deficiencies, as mentioned in the policy.

The Bank has adopted an Unclaimed Deposit Policy based on RBI guidelines. This policy facilitates the classification of unclaimed deposits and establishes 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) following RBI directives. The Banks website regularly uploads customer details related to unclaimed deposits.

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

15.1 Corporate and Global Market Operations (CGMO)

Corporate and Global Market Operations (CGMO) provides a diverse range of products to both Corporate and Retail clients. These offerings comprise Trade Services, Supply Chain Finance, Cross-Border Remittances, Cash Management Services & payments, Global Markets (including foreign exchange and derivatives), Depository and Capital Markets services, and Bullion operations. Throughout the year, CGMO has diligently focused on enhancing operational efficiency, improving customer experience, proactive risk management, and nurturing personnel capabilities.

Amidst evolving market dynamics, CGMO has consistently strived to deliver seamless service and innovative solutions to meet client needs. By fostering a culture of continuous improvement, the department has successfully streamlined processes, leveraged automation initiatives, and reinforced strong internal controls. Additionally, CGMO remains committed to upholding regulatory compliance standards and ensuring the highest levels of integrity in all operations.

15.2 Customer experience

During the year, CGMO has spearheaded the adoption of cutting-edge digital agreement execution methods, leveraging e-stamping and e-signing technologies across 22 states and Union Territories. This initiative has revolutionized our clients digital experience, significantly reducing onboarding turnaround time from days to hours, enhancing operational efficiency, and yielding cost savings for both our clients and the Bank. Furthermore, CGMO has made strides in implementing Robotic Process Automation (RPAs) and supporting 24/7 client services for Nodal account transactions, thus augmenting the business capacity to cater to its clients needs.

Additionally, the Bank made a notable entry into the Capital Market space as a Sponsor Bank, managing three IPOs and garnering over ?1,011 crore within a month. This was complemented by our seamless adaptation to the SEBI change in the settlement period from T+5 to T+3 days, demonstrating our commitment to maintaining exceptional service standards amidst regulatory changes.

15.3 People

The outstanding service delivery by CGMO teams earned them numerous accolades and appreciation from customers across all segments. We further strengthened the Banks training initiatives, covering both technical and soft skills, resulting in significant progress in moving towards building a Centre of Excellence. Notably, our specialized training programs, such as Ownership and Accountability - The A factor training, have fostered a culture of responsibility and empowerment among our employees. Our staff engagement initiatives fostered a positive work environment at all levels and locations, leading to better engagement and connection. Employees are rewarded and recognized through the Insta Achiever program.

15.4 Capability enhancement

CGMO achieved significant progress in enhancing delivery capabilities through extensive system upgrades and automation initiatives, resulting in a superior customer experience and greater operational efficiency. Major initiatives included automating client onboarding for FX business, enabling receipt of ISO SWIFT formats, and enhancing the FX platform to facilitate STP with CCIL. Critical regulatory requirements across capital markets and trade were also met well within the established timelines.

15.5 Risk

CGMO remains committed to proactively identifying risks and implementing controls and mitigations through a robust Risk and Control Self-Assessment (RCSA) framework. This framework ensures that all key processes across CGMO are comprehensively covered, with Key Risk Indicators (KRIs) established to facilitate thorough risk management. Changes in regulations and market environments are continuously reviewed, leading to enhanced controls, particularly around FX payments and customer onboarding.

15.6 Awards:

CGMO was honored with prestigious awards acknowledging its exceptional operational excellence:

1. Top Five Performers in the Primary Market Segment (Debt - Banks) for FY2023:

The Bombay Stock Exchange (BSE) recognized the Bank as one of the Top Five Performers in the Primary Market Segment (Debt - Banks) for FY2023. This award highlights the significant contribution made by the Capital Market Operations team to BSEs milestones in the capital market.

2. Operational Excellence Award from Nostro Banks:

IndusInd Bank received the "Operational Excellence Award" from Nostro Banks, recognizing the outstanding transaction processing quality of the Trade and Remittance Operations team. The award acknowledges the teams high Straight Through Processing (STP) rate for all payment messages sent

16. Branch Network and Infrastructure

The Bank has established a comprehensive network with 2,984 banking outlets and 2,956 ATMs, ensuring a presence in all 28 States and six out of the eight Union Territories. To cater to offshore banking operations, the bank has an International Financial Services Unit (IFSC), or 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 / Lobbies in prominent locations. These branches are situated in Mumbai (Juhu, Pedder Road and Lower Parel), Pune (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), Jaipur (Malviya Marg) and Ahmedabad (Corporate Road).

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

17. Information Technology

The IT strategy and execution of the Bank continues to be guided by the board and executive management, underscored by the fundamental principles of:

• Innovation and embracing digital technologies

• Enhancing systems and processes for exceptional customer experience

• Robust risk mitigation strategies and cyber-resilient data protection

• Sustainable and scalable growth

IndusInd Bank (IBL) has continued to focus on strengthening its IT department through investments in cutting-edge technologies to elevate customer experience through safe, convenient and reliable platforms while enhancing its service and product delivery.

The Bank has transformed its data and analytics platform by modernizing it into a lake house architecture based on the latest cloud technologies. This would enable real-time data analytics powering hyper-personalization for customers, and with seamless data-driven intelligence for faster business decision-making and accurate regulatory reporting.

From INDIE, a fully digital offering for the discerning customer, to interoperable cardless cash withdrawals and Indus Paywear, an industry-first tap-and-pay solution, the Bank has been at the forefront of ensuring customer delight through innovative products and services, new product launches, and pioneering industry firsts.

Bank has also enhanced its API Developer portal as a full lifecycle of API management and sandbox solution, to leverage third-party partnership and to enable quick and efficient onboarding of partners. This portal uses an intuitive experience to help consistently create, manage, secure, socialize and monetize APIs, helping power digital transformation on premises and on cloud.

Continuing its focus on security and data privacy, the Banks cybersecurity posture has been enhanced with specialized units and advanced technology stack. Algorithms continue to be refined through data analysis, allowing the Bank to identify and adjust per new attack vectors.

To enumerate some of the key initiatives during the year:

Innovations in delivering best-in-class products and enhanced customer experience

• INDIE

IndusInd Bank has launched an innovative digital bank, INDIE, simplifying money management for the digital-native customer. Introducing a paradigm shift in digital customer engagement and smart banking, INDIE is powered by an innovative cloud-native technology stack. This transformative initiative, backed by high availability architecture and innovations in digital engineering, offers customers ease of access with self-paced journeys. Customers can get started with an online account in just 3 minutes, withdraw funds immediately, sweep money out of deposits and access instant funds with INDIEs personalized Line of Credit with a few taps.

• Digital Currency (CBDC e?)

IndusInd Bank has launched e? (digital Rupee) capability on its platform. Innovations around this facility would pave way for greater transactional choices for customers while mitigating credit and liquidity risks.

• IndusInsure

IndusInsure provides customers with an integrated digital mechanism to purchase insurance and ease of access to an assisted journey. IndusInsure assists the sales team in sourcing insurance customers, initiating onboarding with all their details, and helping to track the applications until insurance is issued. Customers have a choice of insurance partners from which they want to purchase services. This feature is embellished with a completely unassisted process in the immediate future.

• Interoperable Cardless Cash Withdrawal

IndusInd Bank has launched UPI ATM for customers. The UPI ATM is an Interoperable Cardless Cash Withdrawal (ICCW) service that allows IndusInd Banks customers with UPI, to withdraw cash from any participating banks ATMs (enabled for UPI-ATM). This convenience is provided without using their card making the transaction seamless and secure. A dynamic QR code is generated for each individual user.

• Digital Loan Origination Platform

A digital Loan origination platform for passenger vehicles was launched to provide an in-principle real-time sanction to and same-day disbursal using Business Rule Engines (BREs) and built-in risk-based pricing. The platform allows integration with government and regulatory agencies. Comprehensive API integrations ensure the capturing of vehicle price and geo-tagging for an end-to-end digitized journey.

• Indus PayWear

IndusInd Bank introduced Indus PayWear as the countrys first unique all-in-one tokenized wearable solution for debit and credit cards. The PayWear facilitates tap-and-pay transactions globally at any contactless Point-of-Sale (PoS) terminal, eliminating the need for physical cards or payment apps. Users can easily make purchases by enabling them to transact using tokenization on debit cards onto a chip- enabled wearable device.

Innovations for Superior Operating Efficiency & Sustainability

• Transition to state-of-the-art energy-efficient data center

With a focus on its core philosophy to integrate sustainability into all aspects of business, the Bank is committed to propagating the global 2030 Agenda for Sustainable Development. IndusInd Bank has embraced a new-age architecture and transitioned to a modern Data Centre (DC). The hyper-scaled DC ensures scalability and resource optimization enabling the Bank to meet its evolving technology needs. 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. These initiatives align with the Data Centre Evaluation Framework (DEF) and adhere to the latest international guidelines from IEEE.

• Finacle - Core Banking revamp

The finacle core revamp was successfully completed during the year, and all the bank branches were migrated to the newer version. The upgrade helps simplify the Banks offering through native application features, some of which were offered through customizations earlier. Additionally, the upgrade helped the Bank achieve higher throughput for GL and client transactions. The key to this upgrade is the implementation of a Digital Accelerator (DA), which has enabled the Bank to tackle the high growth in transaction volumes and significantly improve the transaction capability of our core systems.

• Consolidation of the vehicle loan portfolio in Finacle

The Bank consolidated its lending products in a single system - Finacle. The Bank has migrated its loan portfolio to strengthen the backbone of its assets business. Migration of assets data helped the Bank to build uniform data sources for all loan portfolios and better control for regulatory reporting. With a robust architecture and real-time sync capabilities, the endeavor brings centralized reporting, timely data reconciliation, and compliance with the latest regulatory norms. This project significantly improves operational efficiency and helps the Bank meet regulatory requirements effectively.

Technology Awards

The Banks initiatives in technology have been widely recognized at various industry events underscoring the pioneering industry initiatives translating to impactful deployments.

• IBA Banking Technology Awards 2023

IndusInd Bank achieved remarkable success at the 19th IBA Banking Technology Awards, securing awards in all the six categories for which the Bank was nominated. The Bank emerged as the winner in the categories of Best Technology Bank of the Year and Best Digital Sales Payments & Engagement. It was also the runner-up in Best IT Risk Management and in AI/ ML Adoption and received special prizes for the Best Technology Talent and the Best FinTech Collaboration categories.

• Infosys Finacle Innovations Award 2023

IndusInd Bank received recognition in three categories at the Infosys Finacle Innovation Awards 2023. The Bank was honored with a Platinum badge for its Digital Centre of Excellence in the Modern Technology-led Innovations category. The Bank also secured two Gold recognitions in the Maximizing Customer Engagement and in the Ecosystem- led Innovation categories through its Centralised Customer Experience Program and Open Banking and Omni-channel Experience programs, respectively.

• CII / Tata Digital CIO Excellence Summit 2023

IndusInd Bank won two awards at the CII/Tata Digital CIO Excellence Summit 2023. The Bank bagged the award for the leading CIO of the year and was recognized as the winner for excellence in Cloud Computing.

• Finnoviti Awards 2023

At the 11th edition of the Finnoviti Awards 2023, IndusInd Bank was bestowed recognition for its Open Banking with Omni-channel Experience. The Bank was commended for architecting the API management to reflect integration with cloud-native apps, Micro services-based Service integration flows, scalable gateways and event-driven architecture.

18. Human Resources

At IndusInd Bank, we believe that our employees are the cornerstone of our success. Our Human Resources strategy is centred around attracting, retaining and nurturing top talent to drive innovation and excellence. In the past year, we have implemented a range of initiatives to enhance employee engagement, professional development and overall well-being.

Our commitment to create an inclusive and supportive work environment, is reflected in our diverse workforce and our ongoing efforts to promote equality and opportunities for all.

Human Capital, has been the key focus area of the Bank. The Bank always tries to facilitate a performance-driven culture based on its guiding principles: respect towards employees & customers, customer delight, compliance and governance. By anchoring strategic priorities like succession planning, talent development, engagement & retention, digitization, employee welfare and wellness, the Human Resources function, continually drives a positive impact to support business performance and growth. The results are manifested in terms of higher business performance, enhanced employee productivity, improved diversity & inclusion quotient and stability in the strategic business leadership layers.

IndusInd Bank has been re-certified as a Great Place To Work by the Great Place To Work? Institute, a global authority on high-trust and high-performance workplace cultures. The Bank not only qualified for the Great Place to Work certification for a second year in a row, but the scores also moved up significantly by 500 bps. This certification serves as a testimony to the Banks working environment and culture, which emphasizes credibility, respect, fairness, pride and camaraderie.

With a focus on continuous learning, we have expanded our training programs to equip our staff with the skills needed to thrive in an ever-evolving Banking landscape. Additionally, we have strengthened our employee wellness programs, emphasizing both physical and mental health. We believe that a happy and healthy workforce is crucial for delivering superior service to our customers and achieving our strategic objectives. As we look forward, we remain dedicated to fostering a culture of collaboration, innovation and excellence, ensuring that IndusInd Bank continues to be an Employer of Choice in the Banking industry.

Key Highlights

1. Employee Headcount

IndusInd Bank remains committed to being an Equal-Opportunity Employer. The Bank pursued strategic resourcing through diverse sourcing channels to attract talent, remain competitive, and align with the market trends, while being cognizant of diversity & inclusion initiatives.

As of March 31, 2024, the Banks employee headcount reached 45,637 with a net hiring of 7,458 employees in FY2024 to support new business initiatives, fulfil critical and specialized roles, and expand the branch network.

2. Diversified Hiring Channels

The Bank invests in various hiring channels to attract a diverse talent pool, including employee referrals, job portals, consultants, campus recruitment, and social media platforms like LinkedIn and Facebook. Social media engages and appeals to desired target audiences, showcasing the employer brand to attract domain experts and senior leaders. Employee referral programs serve as a brand endorsement. The Bank also employs the Hire-Train-Deploy strategy through partnerships with industry and academia, for frontline sales hiring. Campus-to-Corporate programs are conducted to induct fresh talent and offer career paths across the corporate landscape.

3. Robust Succession Planning

The Bank places significant importance on robust Succession Planning exercise. The Bank continually aims to ensure business continuity, associated with leadership transitions by identifying and developing internal talent for future leadership positions. As a part of the 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 Bank fosters continuous learning to achieve business objectives by offering a mix of e-learning and virtual classroom learning initiatives. The Banks learning process prioritizes capacity building with tailored learning roadmaps, gamified e-learning, leadership programs, domain-specific courses and mandatory certifications. The Bank follows a learning process that encompasses identifying learning needs, devising learning plans, conducting digital classroom sessions and providing periodic feedback to improve learning effectiveness.

In FY2024, the Bank conducted over 17.9 lakh virtual learning man hours, focusing on areas about managerial effectiveness, customer focus, banking products, risk management, operational processes, and orientation programs. The Bank is actively promoting learning and development initiatives through its Mobile learning app Indus Evolve which contributes to learning conveniently and provides scalable and cost-effective learning solutions.

5. Performance Management

The Bank adheres to a robust performance management process, ensuring alignment with the Banks strategic objectives through Key Result Areas (KRAs) and Specific, Measurable, Achievable, Relevant, Time-bound objectives (SMARTs). Compliance, Team development, and Retention goals are integrated into the employees SMARTs, with goal weightages depending on the employees roles. Ongoing performance feedback sessions are conducted throughout the financial year to address performance issues, mentor employees and enhance performance and productivity. Employee communication involves setting performance expectations, tangible performance objectives and performance measures, providing performance feedback, and reviewing results and outcomes. FY2023 performance appraisal was based on the tangible achievement of performance objectives, which were then aligned to the compensation actions.

6. Attracting, rewarding, and retaining talent

The Bank believes in the compensation philosophy of rewarding employees based on performance and adheres to a Pay-for- Performance policy and role criticality. The Bank aims to be a competitive paymaster and offers market-linked and performance- based compensation and long-term incentives like Employee Stock Ownership Plans (ESOPs). The Bank implements retention plans and emphasizes job enhancement, accelerated career paths, work-life balance, job rotations, empowerment and autonomy as key tenets for employee retention. The Bank also ensures complete adherence to the regulatory guidelines on compensation.

7. Employee Connect & Engagement

The Bank is committed to enhancing employee engagement and welfare, to create a cohesive workplace where diverse perspectives drive synergy and innovation. The Bank prioritizes employee connection and engagement through various initiatives, including Quarterly webcasts by the MD and CEO that drive strategic direction, performance, compliance, governance, integrity and discipline. Programs like We Connect, Coffee Connect and Appreciation Day promote grievance resolution, recognition, appreciation and retention. International Womens Day celebrations, regional festivals, and sports events, build a strong employee community across locations. Long-term employees are recognized with service awards upon completion of service milestones. Employee Experience is continuously monitored through the Life Event Assistance Program (LEAP), at different stages of employee lifecycle to ensure satisfaction and growth. In FY2024, the Bank connected with over 1.10 lakh employees on notable occasions. 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 remains committed to employee welfare and continues to support them through various curated benefits, such as paternity leave, education & career guidance programs for employees children, and women-centric benefits & facilities. The Bank leverages the Employee Welfare Fund to provide financial assistance to the families of deceased employees. The Bank also continues to pursue digitization to create a best-in-class model to improve employee lifecycle processes, enhance efficiency, and drive productivity through technology adoption in a culture of continuous innovation and improvement. The Bank has launched several digital initiatives, including digital on-boarding, internet- based processes, online staff account opening, a career platform, a new learning management system platform, and mobile app- based employee lifecycle processes. 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. Today, IndusInd Bank is acknowledged as a preferred employer brand in the industry. The Bank is committed to continually enhancing employee equity through its market-benchmarked employee policies and continues to be a Great Place To Work.

Voice of Employee

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) approved by the shareholders earlier on September 18, 2007. ESOS 2020 enables the Board and the Compensation Committee to grant several stock options of the Bank that do not exceed 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 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 the option and the 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 any 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 as may be determined by the Compensation Committee from time to time. The stock options are equity-settled, with the employees receiving one equity share per stock option.

Under 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 established with a pool of 57,50,000 equity-settled options. Half of the options vest over three years from the grant date, while the remaining options begin to vest over a three-year period starting from the first anniversary of the grant date. Once vested, the options must 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 various risks, which must be measured precisely, monitored continuously and managed effectively. A robust Enterprise-wide Risk Management (ERM) framework enables precise measurement of respective risks and 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). The banks Risk Management practices are aligned with best industry practices and are adaptable to a dynamic operating environment and market conditions.

Credit Risk Management

Credit Risk is managed both at the transaction and portfolio levels.

The key objective of Credit Risk management is to maintain credit quality within the defined risk appetite while achieving appropriate returns for risks assumed. Various measures adopted for the management of Credit Risk are mentioned hereunder:

• Credit risk policies are aligned with business strategies and defined risk appetites. They are maintained in alignment with changes in RBI guidelines and the economic environment.

• Credit Risk at the time of credit assessment is gauged using risk-rating models implemented for different business segments.

• Credit Portfolio Management Analysis monitors credit quality, portfolio composition, concentration risk, yield v/s risk and business growth.

• Credit quality is measured and monitored regularly using the portfolios Weighted Average Credit Rating (WACR).

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

• Monitoring of the credit quality of Vehicle Finance portfolios using Behavior Scorecards.

• Sector reviews are carried out to assess and evaluate potential risks and stress within such sectors, analyze the impact of stress on portfolio health, and take proactive actions to mitigate such risks.

• Management of exposures to counterparty banks and countries by setting exposure limits based on 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 assess the impact of potential credit losses on profitability and capital adequacy, thus enabling the initiation of appropriate risk mitigation measures.

• Implement an Early Warning Signals (EWS) system to track risks and alerts in borrowersaccounts as a post-disbursement monitoring mechanism.

• Independent of business and credit, the Corporate Banking Audit Domain within the Internal Audit Department tracks post-disbursement weaknesses developing in the account and initiates corrective measures in time.

The Bank has a system-based platform that supports the computation of Credit Risk Capital charges, allowing it to manage regulatory evolution and high-volume growth within optimal processing timeframes.

The Bank has maintained the asset quality of its portfolio. During the year, the Weighted Average Credit Rating (WACR) of the Credit

Portfolio improved. The Bank has always strived to maintain a balanced mix of Corporate and Retail loan books.

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 programs specific to the business duly approved by designated committees, which detail the criteria for customer selection and underwriting standards. Further, key metrics of respective portfolios are monitored at regular intervals.

Market Risk Management

Market Riskisthe possibility of losstothe Bankcaused by changes in market variables, such as interest rates, exchange rates, equity prices, and risk-related factors, such as market volatility.

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 the Treasury system "Calypso" which supports monitoring risk parameters and sensitivities, including computation of Market Risk capital charge. The Market Risk Management system supports advanced risk measurement functionalities for proactively managing 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 is undertaken daily, and the risk sensitivities are also monitored daily.

Asset-Liability Management

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

• Liquidity Risk is managed through Liquidity Coverage Ratio (LCR), Structural Liquidity Gaps, Liquidity Simulation, Dynamic Liquidity monitoring, Net Stable Lunding Ratio, Liquidity Ratios analysis, and 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 the Asset and Liability Management Policy.

• Interest rate sensitivity is monitored through prudential limits for Rate-Sensitive Gaps, Earnings at Risk, Modified Duration of Equity, and other risk parameters.

• Interest Rate Risk on Trading Portfolios is monitored daily through Market Risk Measurement tools such as VaR, PV01, and other Risk Sensitivity. The market Risk Measurement parameters assume optimal risk to balance risk containment and profit generation from market movements.

The Asset-Liability Management Committee (ALCO) receives detailed analyses on various financial metrics, including liquidity position, interest rate risks, product mix, business growth compared to budgets, and interest rate outlooks. ALCO meets regularly to deliberate on these topics, assessing the liquidity position and interest rate risks while reviewing business strategies.

ALCO provides directional guidance to Business Units to effectively manage liquidity while pursuing business goals. The Bank assesses its structural liquidity position, Liquidity Coverage Ratio (LCR), and other liquidity measures on a daily basis to manage liquidity cost-effectively.

Stress Testing - Liquidity Risk

The Bank periodically carries out liquidity position stress tests to assess the impact of stressed liquidity scenarios on funding and liquidity position. Periodic Stress tests help the Bank be better equipped to meet stressed situations and have contingency funding plans in place.

The Bank routinely conducts stress tests to evaluate the potential impact of adverse shifts in various internal and external factors on the liquidity position under different stress scenarios, each assumed with varying degrees of severity. The results of these stress tests are presented to the Asset-Liability Management Committee (ALCO) for discussion. Based on these findings, ALCO provides guidance and direction for proactive management, ensuring that the Bank maintains a robust approach to managing potential risks.

Contingency Funding Plan

The Bank has implemented a Contingency Funding Plan (CFP) to respond swiftly to any anticipated or actual stressed market conditions. The Plan is reviewed periodically.

The Bank reviews its contingency plans considering evolving market conditions. The Contingency Funding Plan covers monitoring internal and 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. The CFP prescribes the conditions- based contingency triggers for assessing liquidity position and invoking the contingency plan if deemed appropriate.

Roles and responsibilities of the Contingency Management Group constituted under the CFP have been defined to facilitate the effective execution of contingency plans in the event of invocation of a 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) Repricing Risk,

(ii) Optionality,

(iii) Basis Risk, and

(iv) Yield Curve Risk.

From an economic value perspective, the Banks policy is 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 Books 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 to managing operational risk and defines the roles and responsibilities of various stakeholders within the Bank.

The Bank has implemented several operational risk measurement and monitoring frameworks for managing Operational Risk. In addition to the above, the Operational Risk Management framework effectively manages operational risk through several internal committees, viz., the Operational Risk Management Committee (ORMC), the Fraud Risk Management Committee, and the BCM Steering Committee.

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

• Incident Management Module enables reporting and managing incidents (i.e., operational risks and fraud incidents), Root Cause Analysis (RCA), internal escalations, action plans and resolutions, which helps appropriate actions towards mitigating such risks.

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

• 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 that identifies operational risks, records such risks, and assesses residual risks effectiveness/adequacy of corresponding controls. RCSA modules shall progressively reinforce the assessment of operational risks and their mitigation. The system generates the status of operational risks, associated controls, and a Heat Map and Risk Index for concerned stakeholders (Operation Heads, Department Heads, Business Heads) to take appropriate action towards risk mitigation.

Operational Risk Stress Testing Framework:

To strengthen the existing Operational Risk Framework, make it more forward-looking and assess resilience under stressed scenarios, the Bank has created an Operational Risk Stress Testing Framework covering 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 the 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 prioritizes maintaining a secure technology infrastructure and 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 threats. 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 globally accepted and proven standards guide the implementation of best practices and tools for managing and monitoring technology functions. This has helped the Bank to identify & manage Technology- related risks and 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, a globally recognized Information Security Management System (ISMS). The Banks commitment to these standards assures its customers that it values their data privacy and takes appropriate measures to protect their sensitive information. These standards help the technology teams align themselves with the business needs, which helps map the processes correctly with clear roles and responsibilities.

The Bank has a board-approved Information Security Policy and Cyber Security Policy. The Bank has 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 Banks cybersecurity resilience vision. The ISO 27001:2013 framework defines consistent approaches during various stages of detection, identification, containment, eradication and recovery from specific cyber security incidents. The Bank has a Board-approved Privacy Policy that guides It in protecting the privacy of Its customers confidential information.

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

IndusInd Bank has a robust and resilient IT network infrastructure comprising servers with a guaranteed 99.98% uptime. IndusInd Bank has a DR site and 1 Gbps1Gbps connectivity between the DC and DR Centre. This enables the 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 blend on-site and off-site resources to provide security services. The Bank has implemented industryleading security solutions such as SIEM, Anti-phishing, Antimalware, DDoS protection services, Web application firewalls and more. The Bank has also implemented NAC and Endpoint detection and response tools to reduce internal malware threats. The remote security team is responsible for monitoring alerts and responding to them 24/7. IndusInd Bank has an ISO 27001:2013 certified captive Security Operations Centre (SOC), which works annually to ensure it monitors all security incidents in the IndusInd Bank infrastructure and correlates events, identifies threats and supports incident response in real-time.

The Bank has partnered with external specialists to manage cybersecurity incidents. Their Incident Response Plan outlines various categories of incidents and the corresponding procedures to handle them. For severe cybersecurity 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. To bolster awareness of cyber frauds and promote safe online banking practices, the Bank leverages digital channels, e-learning platforms, classroom training and workshops. These educational efforts cover various topics, including identifying and avoiding phishing and vishing attempts, secure use of credit and debit cards, and protection from malware and malicious websites. This comprehensive awareness is designed to educate and enhance the cybersecurity knowledge of 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 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 a Disaster Recovery (DR) Plan for their technology staff and 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 mitigate risks associated with applications and systems proactively. 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 verify specific hypotheses related to emerging threat scenarios. The Bank deploys a variety of tools for fine-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 stakeholders that the Bank is striving hard to provide a safe and secure banking experience, which drives trust in the Banks digital properties.

20.2. Business Continuity Management

The Bank has a Business Continuity Policy, which documents the Banks approach to Business Continuity Management (BCM) and provides a consistent, overarching structure to develop, implement, maintain and continually improve the Banks Business Continuity Management. The Policy document frames guidelines for developing a resilient management framework to achieve effective and functional business continuity and critical processes for the Bank. The Bank has implemented robust business continuity strategies and recovery plans to ensure the timely restoration of critical operations during significant disruption. Regular mock drills are conducted to guarantee preparedness and validate the recovery strategies effectiveness. These drills engage recovery teams extensively, testing their readiness and the efficacy of the recovery protocols under simulated emergency scenarios.

With the implementation of the EGRC system, key components of BCP, such as Business Impact Analysis (BIA), BCP Recovery Plan, BCP Testing, and 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 Indias comprehensive guidelines on Priority Sector Lending (PSL)- Targets and Classification issued on September 4, 2020, and last updated on June 21, 2024 mandate banks to allocate 40% of their Adjusted Net Bank Credit (ANBC) to specific sectors, including agriculture, micro, small and medium enterprises (MSME), housing, education, social infrastructure, renewable energy, export credit and support for weaker sections of society.

Recognizing the wide array of sectors covered under PSL, the Bank has strategically oriented its various business units, such as Corporate, Commercial, Consumer, Inclusive, Agriculture and Rural Banking, to meet the specialized needs of clients within these priority segments. This strategic focus has enabled the Bank to build a significant footprint across nearly all PSL categories, ensuring that lending to the priority sector is thoroughly institutionalized. During FY2024, the Bank achieved a quarterly average of 39.56% PSL lending, nearly reaching the target of 40%. While the Bank succeeded in meeting sub-targets for microenterprises, it has marginal shortfalls in the overall target and subtargets for agriculture, small and marginal farmers (SMF), weaker sections and agriculture credit to non-corporate farmers.

To achieve PSL sub-targets, the Bank has increased its focus on developing and promoting products designed for the agricultural sector, MSMEs, and weaker sections. By leveraging technology, the Bank has introduced innovative solutions to increase credit flow and enhance financial access. The Bank has significantly upgraded its digital channels to expedite the loan sanctioning and disbursement processes for MSME borrowers, allowing them to digitally access micro and small loans. The Bank is actively rolling out new platforms and products to reach potential borrowers and facilitate seamless loan disbursement more effectively. Committed to serving underprivileged women, the Bank continues to offer small, customized loans through its own channels and the networks of business correspondents. This initiative ensures broader access to financial services, empowering women to achieve greater economic stability.

Through ongoing digital innovation and continuous process improvements, the Bank aims to provide low-cost, quick, on- demand, and hassle-free loans, particularly targeting rural and semi-urban areas where its presence in agricultural and MSME lending has been historically lower. The Bank remains committed to increasing awareness of its banking services among these underprivileged segments, ensuring they are fully included in its PSL efforts. To further bolster its MSME performance, the Bank has established specialized branches dedicated to catering to the needs of this client segment, ensuring that clients receive focused and expert services. By focusing on these strategic areas, the Bank aims to meet but exceed its PSL targets, ensuring that vital sectors of the economy receive the financial support they need to thrive.

22. Marketing and Communications

As one of Indias leading financial institutions, IndusInd Bank has constantly endeavored to redefine the banking landscape with innovative and customer-centric initiatives, delivering a seamless and convenient customer experience. Throughout FY2024, the Banks marketing and communication has strategically focused on all customer segments, elevating brand visibility, fostering meaningful customer engagement, and cultivating lasting loyalty among our diverse clientele.

Launch of INDIE Mobile App: A Revolutionary Way to Bank

Launched to blend traditional banking values with cutting- edge technology, INDIE is a revolutionary all-in-one money app poised to enhance customer experience significantly and set new benchmarks in the banking industry. To mark the apps launch, the marketing campaign highlighted INDIEs exciting proposition, which includes high-yield savings accounts, investments, credit, UPI payments, a spend tracker, a numberless and single-use virtual debit card, and much more.

Amplifying INDIEs state-of-the-art features that redefine the banking experience called for a 360? campaign to reach out to different audience groups, starting with employees. Internal email marketing efforts were rolled out with a Bollywood twist and humor to build awareness, and subsequently drive installations among employees.

Brand film campaign, conveying how everyday banking shouldnt feel like a battle, depicted peoples day-to-day struggles humorously with the use of ancient warriors. This was anchored by TV advertisements, which leveraged the cricket frenzy in India during the ICC Mens Cricket World Cup 2023, garnering viewership of over 200 million and reaching over 70 million households. The digital films as a part of this campaign were aired during the ICC Mens Cricket World Cup 2023, garnering impressions of over 245 million on Hotstar CTV, 64 million on Meta platforms, and 180 million on YouTube.

To highlight the apps distinctive features and engage with the target audience, INDIE collaborated with broadcaster and cricket commentator Jatin Sapru and used Aston Band advertisements during the World Cup, which were well received.

INDIEs OOH campaigns combined topicality and wit to intrigue the audience, targeting high-traffic areas like metros and airports. For example, users were urged to "leave the baggage of unnecessary financial apps" near the baggage collection belt.

On social media, a multifaceted approach was leveraged using topical content pieces, quizzes, and educational reels and blogs.

Association with ICC as a Global Partner

At IndusInd Bank, we see sports as a powerful catalyst for bringing people together. With the ICC World Cup being one of the worlds most iconic sporting events, captivating millions of cricket fans globally, it was a natural choice for us to create a unique platform to engage with our customers, both domestically and internationally.

And so, in a first-of-its-kind initiative for the Bank, we announced our multi-year partnership with the International Cricket Council (ICC) on September 26, 2023, as a Global Partner for the ICC Mens Cricket World Cup 2023, ICC Mens U19 World Cup 2024 and ICC Mens T20 World Cup 2024. This collaboration provided IndusInd Bank customers, employees, and cricket enthusiasts with an opportunity to engage in many exciting activities and promotions.

Anthem Companion Program

Under the Anthem Companion program, IndusInd Banks customers, employees and stakeholders were allowed to get their children to participate in the teams walk out onto the field before the start of the match and pay respect to the national anthems, creating a memorable experience during the ICC Mens Cricket World Cup 2023. More than just a series of events, the program enriched the overall experience with exclusive on-field access, engaging brand activations and the chance to witness some of the best cricketing action. The Anthem Companion program witnessed participation from around 1440 kids throughout the tournament.

On-Ground Campaign

The On-Ground Campaign witnessed significant engagement. Over 6600 people participated in an on-ground activity, the Virtual Reality Cricket Stall - with an estimated 100,000+ spectators at the stall, across all matches, at all 10 venues. Additionally, 96 individuals were upgraded to VIP hospitality seats, while influencer-generated content garnered close to 2 million views. The stadium branding strategy ensured enhanced visibility throughout matches, both on TV and in the stadium, along with a strategic focus on visibility at key airports and branch collaterals being deployed nationwide.

Digital Campaign

During the ICC Mens Cricket World Cup 2023, a digital campaign was launched by the Bank with the #CheerForGreatness campaign. A war room comprising a dedicated team of 16 individuals actively managed real-time content and engagement on the brands social media platforms. This facilitated remarkable outcomes, generating 1.5 billion impressions, 238 million video views, and a cumulative reach of 199 million, with 6.8 million engagements. Brand sentiment saw a remarkable increase from 44% to 80%, positioning IndusInd Bank as the brand with the highest Share of Voice (SOV) among Tier 1 sponsors of the ICC Mens Cricket World Cup 2023. Moreover, there was a substantial increase in IndusInd Banks follower base across social media platforms. Instagram led with a growth rate of 205% compared to the average monthly growth of the last six months. Overall, brand communication reached out to 108 million users on social media, further solidifying IndusInd Banks impactful presence in the digital space.

The Bank also launched the #WishForGreatness Diwali campaign, combining festive cheer with cricketing fervor. Partnering with ESPN Cricinfo, an exclusive show featuring cricket legends was crafted. Leveraging moment marketing, match moments were captured and amplified within seconds, engaging cricket fans and increasing brand sentiment.

Overall, digital brand communication reached 107 million users on social media cumulatively.

• Reached 45 million unique users on Instagram

• Reached 38 million unique users on Facebook

• Reached 18 million unique users on YT

• Reach 6 million unique users on X (Twitter)

Employee Engagement Campaign

Our employee-focused campaigns during ICC included engaging contests like Cricket Trivia, Predict & Win, and Spot & Share, garnering over 21,000 responses. Over 260 employees won match tickets and 4000+ received exclusive merchandise, making it a highly successful engagement campaign. Moreover, our Anthem Companion program saw over 100 employees children standing with cricket legends on the field, enhancing the excitement further. With over 100 emailers and comprehensive engagement metrics, the efforts underlined our commitment to employee satisfaction and participation.

Indus Solitaire: Exclusive Banking for Diamond Industry

Drawing references and inspiration from the brilliance of a solitaire diamond, IndusInd Banks Indus Solitaire Program offers a blend of luxury and functionality with flagship branches, wealth management services and a dedicated relationship management team. The Bank implemented a multipronged launch approach to promote and amplify this unique proposition, including services such as family banking, free lockers with 24/7 access, Club Marriott membership, complimentary airport lounge, and much more. Indus Solitaire Credit Card was introduced, along with the branding revamp of flagship branches and a media announcement.

Offering handpicked experiences, invaluable rewards, and a sleek design, the Indus Solitaire Credit Card boasts Taj Epicure Preferred Membership, EazyDiner Prime Membership, concierge services, and zero foreign currency mark-up, amongst a host of other benefits.

A press release was disseminated to leverage this offering, covering various news mediums, including financial, mainline, wire, electronic, and online news outlets. On-ground marketing and branding in flagship branches at key locations across Surat and Mumbai helped build resonance amongst the target audience.

An advertisement was also published in ICC (Indian Coastal Conference) Shipping Association Souvenir Magazine illustrating IndusInd Bank PIONEERs specialized banking solutions for maritime ventures, including port handling equipment, vessel finance, and foreign currency term loans.

Indus Grande: Prime banking services

IndusInd Bank unveiled a premium offering, Indus Grande, tailored for the mass affluent segment, anchored in convenience, modernity, and bespoke experiences. This comprehensive program offers a seamless banking experience, combining diverse services with attractive rewards. Branding materials were strategically placed across 1,170 branches and numerous ATMs to promote this initiative, featuring posters, standees, digital screens, and tent cards.

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Complementing the physical branding, a digital campaign was launched, garnering over 200,000 impressions across Meta, YouTube, and LinkedIn. Additionally, the social media outreach achieved a cumulative reach exceeding 81,000.

In Mumbai and Chennai, internal branding and external train wraps were applied to four metro trains in each city, effectively communicating the products distinctive features.

IndusInd Bank PIONEER: Best-In-Class Privilege Banking

PIONEER caters to HNIs and upwardly mobile affluent individuals through its full-stack banking and wealth management solutions. To mark the launch of a new PIONEER branch inaugurated in Ahmedabad, Gujarat, advertisements were published in The Times of India and The Economic Times newspapers to garner widespread visibility and reach the target consumers.

A high-impact Q&A advertorial by Mr. Samir Dewan, Head—of Affluent Banking & International Business, was placed in The Economic Times, Mumbai and Delhi editions. The objective was to highlight and showcase the uniqueness of the PIONEER program and how it caters to the diverse financial and banking needs of HNIs, C-suite corporate executives, business owners, NRIs, and SME businesses.

Consumer Finance Division: Vehicle and Affordable Home Loans

IndusInd Banks Consumer Finance Division (CFD), renowned for its wide array of services in personal and commercial vehicle loans and affordable home loans, adopted a multifaceted approach towards its marketing initiatives. This encompassed flier distribution in key cities, strategic placement of standees and other branding elements in select branches and car dealerships,

A dynamic blend of Google Ads, social media advertisements, email communications, and website banners drive traffic to the Indus EasyWheels auction. The platforms users, active and inactive, were targeted, and the emphasis was on quality vehicles at unmatched prices.

The Indus EasyWheels Flash Auction was introduced, offering time-sensitive bidding opportunities on select vehicles. To maximize engagement and facilitate vehicle purchases, Google Ads, social media, WhatsApp, and SMS campaigns were deployed within the time-constrained auction framework.

The Bank introduced Indus Easydrive, a ground-breaking direct- to-customer loan application journey for two-wheeler and car loans, offering attractive interest rates, quick approvals, an intuitive online application process, flexible repayment options, and the convenience of applying from anywhere. These remarkable features were highlighted through targeted social media promotions and website banners.

Capitalizing on the momentum of the ICC Mens Cricket World Cup 2023, the Bank launched a thematic banner campaign titled Unlock the Road to Possibilities on the ICC website, strategically targeting users visiting the site for online ticket booking, score updates, or match venue information.

During the ICC Mens Cricket World Cup 2023, as a global partner of the ICC, IndusInd Bank aimed to fortify its ties with dealership partners and OEMs while elevating employee engagement to new heights. The campaign ingeniously involved the children of dealership employees in the anthem, thereby deepening the bond between dealerships and the Bank, ultimately catalyzing an uptick in loan sales. Harnessing the power of its partnership, the Bank extended exclusive VIP ticket access to important stakeholders, forging stronger and more enduring relationships with construction OEMs. Employee morale and engagement were accentuated through the distribution of premium ICC merchandise and by bestowing recognition upon the top performers.

In a bid to amplify and improve the visibility of the consumer finance divisions offerings, the Bank strategically utilized both the exterior and interior spaces of Chennai metro trains. The Bank used user-friendly inclusions such as missed call numbers and QR code scanning in the advertisements to streamline and simplify the loan application process and make it more accessible.

A comprehensive press release was disseminated to pertinent media outlets, spotlighting the loan mela for passenger vehicles, two-wheeler and construction equipment. This proactive approach significantly increased awareness and increased product visibility within local networks, facilitating a deeper penetration into target markets.

Launch of IndusInd Bank Avios Visa Infinite Credit Card

During the year, we launched IndusInd Bank Avios Visa Infinite Credit Card in partnership with British Airways Executive Club and Qatar Airways Privilege Club. This card is designed to offer unparalleled rewards and benefits spanning travel, wellness and lifestyle. Elevating the cards appeal, it is crafted from sleek metal. It boasts many enticing features such as discounted foreign currency mark-up at selected preferred international destinations, complimentary meet-and-greet service at leading international airports, emergency international health insurance coverage, exclusive airport lounge access and much more.

To promote the card, leaflets were distributed, and standees were strategically placed in key branches nationwide. A comprehensive digital campaign was rolled out to announce the cards launch. This campaign encompassed email marketing initiatives to greet new cardholders and a launch video spotlighting the myriad choices and benefits of the card, which was prominently featured and amplified across social media platforms. A press release was also issued to various media outlets across the country.

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Launch of Induslnd Bank Tiger Credit Card

Induslnd Bank and Tiger Fintech, a Bajaj Capital Group company, launched the Induslnd BankTiger Credit Card, a co-branded Visa credit card. The card offers various lifestyle benefits, including a tier-based reward points structure, golf games and lessons, entertainment benefits, discounted foreign currency markup, airport lounge access, movie tickets, and a concierge facility.

A holistic digital outreach strategy supported the cards launch, including an email marketing campaign and a promotional video highlighting its unique features. This was supplemented by leaflet distribution, standee placement in branches, and press release dissemination.

Launch of Induslnd Bank Platinum RuPay Credit Card

IndusInd Bank Platinum RuPay Credit Card, developed in collaboration with the National Payments Corporation of India (NPCI), empowers customers to make effortless payments to merchants and initiate UPI payments through their credit cards. This card facilitates seamless online and offline transactions, with accelerated rewards on UPI transactions.

The launch was accompanied by a digital campaign, encompassing email marketing and a social media video to showcase the cards benefits. On-ground activations included leaflet distribution, ATM screen branding, and standee placements in branches across India. A press release further amplified the announcement.

Launch of IndusInd Bank Samman RuPay Credit Card

The UPl-enabled IndusInd Bank Samman RuPay Credit Card, in collaboration with the National Payments Corporation of India (NPCI), targets government sector employees and provides exclusive benefits to enhance their overall banking experience. The unique card combines the benefits of a traditional credit card with the advanced features of UPI, reflecting the Banks commitment towards innovation and customer-centricity. With benefits such as cashbacks, complimentary movie tickets, no cash advance fees, and surcharge waivers, the card enhances the day- to-day banking experience for government employees.

Marketing efforts included leaflet distribution, banner and standee placements in prominent locations, an email marketing campaign, a social media launch video, and a press release, which was shared with leading news publications nationwide.

Launch of ‘eSvarna; Corporate Credit Card

The launch of IndusInd Bank eSvarna, Indias first Corporate Credit Card on the RuPay network, positioned the Bank as a pioneer by integrating UPI functionality with a Corporate Credit Card. The card facilitates smooth transactions at merchant outlets and allows users the flexibility to make UPI payments by linking the card to UPI-enabled apps. Additional benefits include complimentary lounge access, fuel surcharge waivers, comprehensive travel insurance coverage, and an exclusive rewards program for corporate customers.

A grand launch event was held in the scenic foothills of Mussoorie to introduce the eSvarna Corporate Card. Additionally, a multi-card launch event in Mumbai celebrated the launch of the Platinum RuPay Credit Card, Samman Credit Card, and eSvarna Corporate Card. The launch was supported by a digital campaign, including email marketing and an engaging sustenance video highlighting the cards features, leaflet distribution, standee placements, and a press release dissemination.

Launch of EazyDiner IndusInd Bank Platinum Credit Card:

EazyDiner IndusInd Bank Platinum Credit Card was launched in partnership with EazyDiner to redefine the dining experience for customers. With no joining fees and a range of benefits, this card offers additional discounts at select restaurants through the EazyDiner App, complimentary EazyDiner Prime membership for 3 months, and free renewal upon spending ^30,000 every 90 days.

The launch was supported by a comprehensive digital campaign, including email marketing and social media videos to engage and educate customers. Physical marketing efforts included leaflet distribution, standee placements, and a press release to enhance customer resonance.

Consumer awareness campaign on cyber security - Jaankaar Bano, Jaagruk Raho

To raise awareness about cybersecurity, IndusInd Bank initiated the Jaankaar Bano, Jaagruk Raho campaign, aiming to educate and empower customers with knowledge to protect themselves from financial fraud. Inspired by RBIs campaign, RBI Kehta Hai... Jaankar Baniye, Satark Rahiye! The campaign utilized creative visuals to share essential tips and safe banking practices. The primary channels used were social media and internal employee- focused emails.

Launch of Digital Rupee by IndusInd Bank

Launched in April 2023, IndusInd Banks Digital Rupee App was at the forefront of the Reserve Bank of Indias CBDC initiative, driving Indias digital revolution. An internal employee engagement campaign was rolled out to ensure collective contribution to this digital transformation. The internal campaign featured daily mailers sent to all employees, each containing a clear call to action to drive app downloads and increase transactional usage. This targeted approach ensured widespread awareness and active participation among our team members, fostering a culture of digital innovation and adoption within the Bank.

Facilitating the collection of Income Tax and other Direct Taxes:

Authorized by the RBI and the Office of Controller General of Accounts, Ministry of Finance, Government of India and IndusInd Bank, facilitates the collection of Income Tax and other Direct Taxes on behalf of the Central Board of Direct Taxes (CBDT). Through user journey videos and proactive communication, we educated customers about the convenience of paying taxes via our banking channels, including the newly integrated e-filing portal (CBDT TIN 2.0). The Bank also rolled out reminders to customers and social media posts closer to due dates for timely tax compliance.

2. CGTMSE-backed loans: Providing zero collateral loans to MSEs, partnering with their ambition to scale up their business.

Corporate and Commercial Banking LinkedIn page:

To foster CXO-level discussions and establish our thought leadership in the corporate banking space, we launched the Banks corporate and commercial banking LinkedIn page in May 2023.

Over the past year, weve seen an encouraging engagement rate of 11.47%, indicating that our content resonates with our audience. On average, our posts receive 1,569 reactions, over 25 comments, and 62 reposts, demonstrating the value that our audience finds in our content.

Additionally, our page has garnered around 75,000 organic impressions, showcasing our thought leadership initiatives growing reach and impact on LinkedIn.

As we continue to nurture connections and share valuable insights, the showcase page remains dedicated to fostering engagement and reinforcing our position as a trusted partner in corporate banking.

Employee Engagement

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

Our dedication to employee engagement was evident during the ICC Mens Cricket World Cup 2023, as part of the Banks association with ICC as a Global Partner for ICC Mens Cricket World Cup 2023 and future ICC events. IndusInd Banks employees were allowed to get their children to participate in the teams walk out onto the field before the start of the match and pay respect to the national anthems, creating a memorable experience during the ICC Mens Cricket World Cup 2023. More than just a series of events, the program enriched the overall experience with exclusive on-field access, engaging brand activations and the chance to witness some of the best cricketing action.

Furthermore, to highlight some of the other employee-focused initiatives, the Bank conducted a successful collection drive by its employees for Goonj NGO and organized eye care camps across 13 locations, benefiting over 2,000 employees.

In addition to priotitizing employee well-being and community outreach, the Bank has continued to focus on initiatives to empower women and support their career growth. Programs such as Here for Her demonstrate IndusInd Banks commitment to creating a supportive environment for women employees. Additionally, IndusInd Bank has introduced the Positive Moves Career Guidance program tailored to employees who are parents, offering support for their childrens career journeys. The Bank has also conducted comprehensive surveys and organized celebratory events on special occasions, fostering a sense of inclusivity and camaraderie across the organization.

IndusInd Bank is proud to announce that, for the second consecutive year, the Bank has been certified by Great Place to Work (GPTW). The organizational scores have shown a remarkable improvement of 500 basis points, a reflection of numerous achievements and initiatives undertaken by the Bank, aimed at fostering a great workplace culture. Additionally, IndusInd Bank has been recognized as one of the Top Leadership Factories in India, highlighting the Banks commitment to nurturing leaders and implementing best practices in leadership development.

Looking ahead, IndusInd Bank remains dedicated to upholding its values of inclusivity, employee empowerment, and community impact.

Zonal Marketing Activities (Branches)

With an aim to engage customers, the Bank executed BTL and zonal activities for customers throughout the year. The Bank celebrated special occasions like Womens Day, World Yoga Day, Environment Day with customers, while also creating significant

brand awareness and visibility. Tailored to resonate with local audiences, these activities celebrated cultural diversity while showcasing the Banks commitment to inclusivity, wellness, and community engagement. The marketing activities executed include Voter ID enrolment camp, dental check-up camps, blood donation camps, and senior citizen activity. Through these initiatives, the Bank demonstrated its dedication to enriching lives beyond traditional banking services, fostering meaningful relationships, and leaving a lasting impact on communities across the country.

IndusInd ForSports

The Bank had organized the You Too Can Win series, an internal campaign to inspire employees with the remarkable stories of athletes partnered with IndusInd Bank. Through mailers and athlete interviews, the campaign highlighted our collaborations with diverse sports organizations, emphasizing inclusivity and impact in the sports realm. Notable highlights featured narratives from five athletes representing the Banks Para athlete program, which is associated with Inspire Institute of Sport and the IndusInd Blind Cricket Program.

FY2024 saw stellar performances from athletes supported by IndusInd Bank. The Bank actively promoted these athletes through social media posts and mailers, especially during significant tournaments such as the IBSA World Games, Hangzhou 2022 Asian Para Games, and events where the Indian Blind Cricket Team was felicitated at the UK High Commission. The social media campaign for the Hangzhou 2022- Asian Para Games generated over 1,55,541 impressions, with 600+ reposts and 2000+ likes and comments.

Get Set Run

The Marketing and Communications team supported the IndusInd Bank ForSports team with Communications and Branding for Get Set Run activities, a key employment engagement initiative of the ForSports team. The activities were promoted for various marathons across the country.

CSR-Related Activities

We commemorated World Water Day with a campaign, the theme of which was Water for Peace—Sustaining Life and Livelihoods. The objective was to raise awareness about Indias water crisis and showcase IndusInd Banks commitment to water stewardship, supported by internal mailers and informative social media posts.

Further, the Bank commemorated World Nature Conservation Day with a video that encapsulated its CSR initiatives regarding water and soil conservation.

In September 2023, IndusInd Bank, in partnership with the National Skill Development Corporation (NSDC), launched the Skills on Wheels initiative. The event was graced with the presence of Honble Lok Sabha Speaker Shri Om Birla and Honble Minister of Skill Development and Entrepreneurship, Shri Dharmendra Pradhan, who officiated the flag-off for the event. The Banks commitment to promoting skill development and entrepreneurship across the country.

Sustainability and CSR:

The communication and branding for the sustainability team included a series of employee communications about ESG risks and best practices, designing the brochure that celebrated 10 years of excellence in CSR, a social awareness post on World Day Against Child Labor and releasing a report on Green Steel.

Recognition for ESG

Yet again, the Bank secured the title of Market Leader for ESG in India, according to Euromoneys 2023 rankings. For the second consecutive year, the Bank won the Best Bank for ESG - India award at the Asiamoney Best Bank Awards 2023. To leverage media visibility around this achievement, the Bank placed a halfpage ad in key publications such as Economic Times, Mint and Business Standard.

23. IndusInd for Sports

The non-banking sports vertical IndusInd ForSports, aims to harness the incredible power of sports to motivate the Banks internal and external populations.

The Bank has launched several activities across various platforms under the name IndusInd ForSports to offer athletes support through the Banks focused program. Recognizing the significance of physical well-being and its beneficial effects on people and the workplace, the Bank has also aggressively promoted health and fitness.

Programs

Para champions program

The Para Champions program is designed to strategically enhance the Indian Paralympic movement. In order to support Indian Para athletes on their Paralympic journeys and beyond, the program provides comprehensive assistance, including sports science support, financial backing elite-level training and competition and connecting them with the best network of experts in India and abroad. The program emphasizes haring athlete success stories across public platforms to inspire and engage wider audiences.

The Bank supports 42 para-athletes competing in 10 different sports in association with the GoSports Foundation.

These extraordinary para-athletes have excelled since the programs inception, winning 1154 medals, including 611 Gold,306 Silver, and 237 Bronze medals, until March 2024. These committed athletes demonstrated their amazing skills by winning 161 medals throughout FY2024, including 85 Gold, 43 Silver, and 33 Bronze medals, via their great achievements in numerous championships and competitions.

Athletes are currently undergoing Qualification tournaments for the Paris Olympics.

Cricket for the Blind program

The program, in partnership with CABI, the cricketing arm of Samarthanam Trust, aims to facilitate effective and meaningful inclusion, empowerment, and development through cricket, and this program Cricket for the Blind enables improvement in infrastructure, skills, and nutrition access.

Sensitization workshops are conducted through the Cricket Association for the Blind in India to create awareness among players and the masses. The program also enhances livelihood and provides other socio-political opportunities.

Through the program, the Bank supports the Indian Blind Cricket Team and over 700 blind cricketers at the state and district levels.

In FY2024, IndusInd Bank Nagesh Trophy (equivalent to the Ranji Trophy) was conducted where 28 teams participated in 9 cities with Team Karnataka emerging as winner of the tournament.

Girl power program

Girl Power program approach is 360-degree holistic development, leading to the overall growth, sustainability, and empowerment of female athletes. The various components include coaching, sports science, sports medicine, sports psychology & tailor-made academic curriculum.

The Bank supports 31 female athletes who compete in judo through its partnership with the Inspire Institute of Sports (IIS).

These judokas have won 113 Medals since the inception of this program of which 48 were Gold, 28 Silver and 28 Bronze till March 2024

IndusInd Athlete & Mentor Program

The IndusInd Athlete & Mentor program supports rural children from nomadic tribes and backward castes in the Satara district in Maharashtra. The program supports 30 Female Athletes and 20 PE Teachers to demonstrate their dedication to sports excellence and diversity. Three sports—wrestling, wrestling, and field hockey— are the programs emphasis, which is run in collaboration with the Mann Deshi Foundation. The program uses sports to enhance rural childrens leadership, motor and life skills, and quality of life.

Since inception, the athletes have won a total of 547 Medals across state and district levels and a few international events.

IndusInd TT for Her Program

IndusInd TT for Her program aims to support 20 women players selected through stringent parameters in Table Tennis. This initiative aims to nurture young talent and create future champions who will make the nation proud in Table Tennis at the National and International levels.

The program seeks support in various components related to training, competition, equipment and nutrition to help the players reach their full potential.

IndusInd Inclusive Squash Program

IndusInd Inclusive Squash Program aims to work at the grassroots level and helps kids from different backgrounds. The academy is located in Kalote Mokashi Village in the state of Maharashtra.

The local tribes are economically and historically disadvantaged communities. The Bank supports 25 Tribal girls in the sport of Squash, where the support will be for nutrition, skills development and help to participate in various tournaments.

The Empowering the Champions - Wrestling

The Empowering the Champions - Wrestling, an initiative by the Physical Education Foundation of India (PEFI), is poised to revolutionize the approach to training and development for athletes participating from Haryana. The program supports 48 wrestlers with the primary objective of providing opportunities for athletes to pursue their sporting aspirations and proudly represent India. The athletes benefit from comprehensive assistance, including access to state-of-the-art sports science, cutting-edge technology, dietary and nutritional supplements, and personalized support.

The Empowering the Champions - Athletics

Empowering the champions - Athletics, an initiative by the Physical Education Foundation of India (PEFI), is poised to revolutionize the training and development approach for athletes from Kerala. The program supports 30 athletes with a primary objective for athletes to pursue their sporting aspirations and proudly represent India. The athlete benefits from comprehensive assistance, including access to state-of-the-art sports science, cutting-edge technology, dietary and nutritional supplements, and personalized support.

Wrestle for Glory

Launched in association with the Inspire Institute of Sport, the wrestling program supports 36 female athletes.

Employee Engagement Get Set Run

Get Set Run is the Banks flagship employee engagement initiative, launched in 2016. This initiative aims to promote a happy and healthy workforce by encouraging employees to participate in running activities. To date, over 10,000 employees have participated, and 42% have graduated to running competitive marathons.

Cheer For Greatness

As a Global Partner of the ICC Mens Cricket World Cup 2023, U19 Cricket World Cup 2024 and T20 Cricket World Cup 2024 IndusInd Bank designed and cascaded a series of employee engagement content and contests under the Cheer for Greatness campaign.

The goal was to foster camaraderie, boost morale and create an enjoyable atmosphere during the Cricket World Cup campaign.

You Too Can Win

A captivating storytelling campaign using shining examples of the Banks supported athletes who embraced sports to bring positive change in their lives. The campaign drove the core philosophy to educate and inspire.

24. Corporate Social Responsibility

SATTVAM - Our Country. Our Commitment.

At IndusInd Bank, our commitment to social progress and environmental sustainability transcends traditional corporate responsibility. It is a pledge to catalyze profound change through transformative interventions driven by inclusivity, sustainability, and empowerment. Under the comprehensive framework of SATTVAM, our programs span India, enriched by collaborations with grassroots NGOs and community groups. Our CSR strategy aligns with national development priorities and the United Nations Sustainable Development Goals for 2030, aiming to elevate the Human Development Index and ensure a brighter, inclusive future for all.

In the fiscal year 2021-22, we introduced the flagship Holistic Rural Transformation Development Program, closely aligned with the Government of Indias (GOIs) Transformation of Aspirational Districtsinitiative. In FY2024, the program has positively impacted over 16 lakhs lives.

The Bank has also built its Strategic programs in key areas such as education, inclusive sports, and the sustainable environment with a focus on water stewardship. By integrating this flagship program with our existing strategic projects, the Bank has adopted a comprehensive approach towards holistic rural development and the empowerment of communities in the urban setup. This multifaceted approach enables the Bank to swiftly achieve important milestones in our nation-building efforts.

Holistic Rural Development Flagship Program

This program aims to increase income levels and improve the quality of life for the rural population in selected districts. Based on need assessments, the interventions enhance primary sources of livelihood, build resilience to climate change, and empower women. The GOIs welfare schemes are optimized to aid beneficiaries, substantiated by innovations and entrepreneurial approaches.

Our project focuses on agriculture, water, livelihood, health, and education, addressing key challenges faced by rural communities. Since inception, the Flagship Program has significantly impacted 20.70 lakh persons from 4.14 lakh households across 1,809 villages in 56 blocks, with specific achievements in rainwater storage, increased net sown area, reduced chemical fertilizers, and more.

In FY2024, the programs advocacy with Central and State Governments and District Authorities benefited marginalized communities. Collaborations with sectoral experts, including UN Agencies (UNICEF), IIT Madras, IIT Gandhinagar, Bhartiya Yuva Shakti Trust, Collective Good Foundation, and Industree Crafts Foundation, have brought synergies and knowledge footprints and will bring in estimated ?100 crore of convergence.

Innovation and Technology

Through our WASH innovation and solution program, in partnership with the Administrative Staff College of India (ASCI), we showcased 27 innovations across 5 districts. Five innovations were selected for piloting and further scaling up in our project districts, including groundwater mapping, water treatment, and innovative sanitation models.

Through the Atal Tinkering Lab program of NITI Atal Innovation Mission, 310 prototypes have been developed by the young children addressing the solution to local problem statements around agriculture, water, and livelihood.

Strategic Projects

Our Strategic Projects empower marginalized groups and vulnerable populations through initiatives in Sustainable Environment, Education, and Inclusive Sports. These projects focus on short to medium-term positive changes.

Sustainable Environment

We believe that a robust economy is intrinsically linked to a healthy ecology. Our climate-resilient interventions ensure environmental sustainability, optimal utilization of water resources, afforestation, and conservation of natural resources. Our efforts have impacted 2.40 lakh+ beneficiaries across 14 states.

Key areas of impact include:

• Water Stewardship: Installation of rainwater harvesting systems, revival of village ponds, and enhanced agri-productivity and income.

• Renewable Energy: Installation of solar systems in schools and community centres, promoting clean energy and reducing dependency on non-renewable sources.

• Waste Management: Promoting responsible waste disposal with over 70% of rural households segregating waste.

• Afforestation and Biodiversity Conservation: Supporting plantation drives and organic farming methods to promote biodiversity and ecological balance.

Education

Our education projects provide holistic care, life skills, nutrition, and extracurricular activities to children. We aim to prepare them for employability and lift marginalized families out of poverty. In alignment with the NIPUN Bharat program, we reached over 2.15 lakh+ students through our education programs in FY2024.

Key initiatives include:

• Remedial Education: Enhanced pedagogical approaches and capacity building for teachers in government schools.

• Skill Development: Training in sectors like hospitality, retail, and IT, bridging the gap between skills and employment opportunities.

• Scholarships: Providing scholarships to over 200 students for world-class education.

Inclusive Sports

Our Inclusive Sports programs focus on inclusion across gender, differently-abled individuals, and the underprivileged, enhancing their talents and achieving sporting excellence. These programs benefitted over 1,000+ individuals in FY2024, with many winning national and international medals.

Key initiatives include:

• Sports for Women - Supporting women athletes, mostly hailing from less-privileged backgrounds, in the fields of Wrestling, Athletics, Judo, TT, Squash, other sports with state-of-the-art training facilities, coaching, sports science assistance and a comprehensive support system that addresses their skills, financial support, rehab support and academic needs.

• Sports for PWDs - Empowering Indian Para-athletes & Blind Cricketers on their sporting journeys, with support towards world-class training, financial support and connect with the best network of experts in India to help reach their potential.

• Sports for Underprivileged - Providing athletes from less- privileged backgrounds comprehensive assistance, including access to cutting-edge technology, stipends, competition costs, and personalized support.

Other Areas

Other special interventions supported during FY2024 include Armed Forces Welfare to dependents of veterans and widows and Healthcare supporting a cancer patients program and a healthcare delivery program with the governments primary healthcare system.

Through these initiatives, IndusInd Bank remains dedicated to transforming lives and fostering sustainable development across India.

Recognitions and Awards

Our flagship project has received several recognitions and awards:

• CSR Journal Award for FY2024 under the category of Child Welfare for the Flagship Aspirational District Program.

• Participation in a CSR conclave organized by the Ministry of Public Sector Enterprise.

• The Manak Inspire Awards recognized 36 outstanding projects from our ATL program.

• The "Skill On Wheels" program in partnership with NSDC was launched, reaching remote rural youth in need of skill training.

Our Strategic Programs won at the 6th ICC awards for our Education Program (Road to School- Remedial Education in Odisha) and Sustainable Environment Program (River water harvesting in West Bengal).

25. Sustainability

Sustainable Banking

Strategy: In alignment with our overarching strategy, a centralized Sustainability Unit collaborates closely with diverse stakeholders to develop the ESG strategy for each department. This consolidates into the Banks comprehensive ESG strategy. The Bank formulates its strategic objectives in three-year planning cycles, which are further broken down into annual and quarterly goals. Sustainability is integral to all the Banks initiatives and is a crucial element of the Planning Cycles.

For the Planning Cycle 6, which spans from FY2024 to FY2026, ESG objectives have been incorporated into the targets of the Business Units (BUs), underscoring the Banks dedication to advancing sustainability-linked initiatives in business and banking operations.

Governance Mechanism: The implementation of the Banks ESG strategy is overseen by multiple internal stakeholders. At the highest level, the CSR and Sustainability Committee of the Board takes the lead, followed by the Sustainability Team, and designated Sustainability contacts within each Business Unit (BU).

The CSR & Sustainability Committee of Board

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

• Provides Industry perspective to the sustainability agenda

• Approves the sustainability strategy, goals and performance

• Reviews alignment of sustainability policies with the business units

• Reviews compliance and reporting

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

Operations:

1. ESG in business:

a. Highlights of ESG products: 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. Highlights of ESG Products launched during the year:

i. IndusWE: With significant committed capital and resources towards ESG, the Bank has launched a holistic offering for helping women entrepreneurs scale up their businesses. IndusWE is exclusively targeted at the Women Entrepreneur Community. A solution designed to empower women entrepreneurs, IndusWE, besides offering all Banking products like Loans, Fixed Deposits, Current & Savings Account and Transaction Banking services, also provides a wide range of non- financial services through partners.

• This is a unique, first in industry offering based on three pillars:

a. Learn: Mentoring/Training/Online workshops for upskilling.

b. Connect: Facilitate industry connects, service providers such as legal, accounting, taxation and HR, organize peer group meets and share success stories, find Incubator support.

c. Grow: Bank Finance, Accelerator funding, Equity, NBFC loans, grants from GOI and other foundations and support on GOI Schemes for WE.

• Scalable model with committed capital outlay for the Bank as per business plan.

• Partnership-focused model brings financing and non-finance solutions together to enable WEs grow.

• During the year a IndusWE-Spotlight virtual awards event was conducted to recognize the top WE relationships in the Bank. In addition to engaging the sales teams and the large community of WE customers, the 2 best nominations from the Spotlight event were also awarded in a grand event at the Financial Express WE Awards.

By launching IndusWE, we aim to demonstrate our commitment to diversity & inclusion for a more equal & progressive society. The initiative aligns with our organizational values and strategic objectives, and it presents a significant opportunity to make a positive impact on the entrepreneurial ecosystem. We have been invited by Niti Aayog and Ministry of MSME for a country wide tie up on their platform https://wep.gov.in/ as banker to the WEs registered there.

https://www.indusind.com/in/en/business/induswe/about-induswe.html

ii. Sustainability/ Green/ Social Loans/Bonds: To provide impetus to the Corporate Sector in supporting Indias Net Zero goals and addressing the challenges arising due to Climate Change, the Bank introduced a range of partnership- based debt solutions, which will assist corporate clients in raising climate and socially impactful finance, including Green and transition finance instruments. The offering of ESG oriented debt solutions comprise of following products:

• Green Bonds / Loans & Transition Bonds/Loans:

Proceeds are intended to be exclusively applied to finance or refinance the climate positive projects/ end-uses.

• Social Bonds / Loans: Proceeds are intended to be exclusively applied to finance projects that directly aim to address or mitigate a specific social issue(s) and/or seek to achieve positive social outcomes.

• Sustainability Bonds / Loans: Proceeds are intended to be applied to finance or refinance a combination of green and social end-uses as defined above.

• Sustainability Linked Bonds / Loans: Sustainability- linked finance is designed to incentivize issuers achievement of environmental, social, or governance targets through pricing incentives; performance- based debt instruments are issued with clear links to Sustainability Performance Targets (SPTs) and associated Key Performance Indicators (KPIs). Unlike Green/Social finance - (1) the end-use is not restricted (proceeds can be utilized for general corporate purposes) and (2) issuers commit to future improvement in sustainability outcomes at the entire entity level (and not some specific project); achievement of such targets are incentivized by way of commercial benefits.

Deal Highlight: The Bank is bolstering NLC Indias decarbonization efforts by supporting their 300 MW solar initiative with a ?1,000 Crore facility, providing debt finance for constructing the ^1,810 Crore greenfield solar project. This ground-breaking project aims to generate 7.5 lakh MWH of solar energy annually and offset an estimated 6.9 lakh tons of CO2 emissions.

iii. Credit Guarantee Trust for Micro and Small Enterprises: At IndusInd Bank, we acknowledge the crucial role that Micro and Small Enterprises (MSEs) play in the economy, contributing to innovation, trade, and employment. Therefore, the Bank has introduced CGTMSE-backed Loans to empower their growth aspirations.

• Typically, small businesses face challenges in obtaining business loans due to the lack of collateral. CGTMSE acts as a guarantee, enabling MSEs to access credit without offering physical collateral up to ?500 lakhs. As part of sustainable banking, CGTMSE boosts MSEs lending by enhancing the credit guarantee portfolio for banks/FIs.

https://www.indusind.com/in/en/business/loans/cgtmse-backed-loans.html

iv. Indus Solar: The Bank has developed the Rooftop Solar Loan Finance program, catering to MSE clients.

• This initiative will promote sustainable energy practices and also envisions a future where small-scale businesses can harness the power of solar energy linked innovation to enhance their operations and contribute to a greener and more sustainable economy.

• This will help MSE clients get significant cost savings on energy bills, leading to higher profits, and also give an opportunity to demonstrate dedication to reducing environmental impact.

https://www.indusind.com/in/en/business/loans/indus-solar-loan.html

b. Sustainable finance portfolio:

The Bank has launched a range of sustainable finance initiatives and frameworks, leading to the successful completion of numerous financial deals. These efforts reflect the Banks commitment to integrating sustainability into its core business. Ongoing discussions are focused on further advancing these initiatives, aiming to drive even greater impact.

The Banks sustainable finance portfolio for FY2024, currently undergoing assurance, represents approximately 48% of the Banks total advances. This marks a significant increase from the 33% reported in FY2018, highlighting the Banks rapid progress in embedding sustainable practices into its financial activities. This growth underscores the Banks strategic focus on sustainability and its role in fostering a more sustainable economy.

c. 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 Healthcare, Agriculture, and Microfinance.

As of March 2024, the Bank has established risk-sharing partnerships totalling over USD 80 million with USAID and DFC. Throughout FY2024, the Bank continued to finance new loans under these partnerships with DFIs. Furthermore, as on 31st March 2024 the Bank has direct funding from various DFIs to expand support for microfinance, developing women entrepreneurship and financial inclusion, up to the tune of over USD 425 million.

2. ESG in Risk Underwriting:

The Bank understands its responsibility toward enabling positive environmental and social impact in its investment decisions.

Sustainability

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 credit threshold for environment, social and governance (ESG) risks including physical and transition risks associated with climate change. A comprehensive review of ESG risks is performed alongside credit risks before final credit approval. High-risk projects/entities are evaluated by business units and recommended to the ESMS Committee for approval. The sustainability unit provides recommendations for monitoring, reporting and mitigation of ESG risks associated with lending to high risk projects/entities. Total credit exposure approved under ESMS policy in FY2024 was over 70% of the total wholesale banking exposure

During FY2024, the Bank released an updated ESMS policy that identifies and assesses severe risk industries, focusing on greater due diligence and articulating actions to be taken, including client engagements and specific evaluation outcomes/actions required.

The key updates in the policy includes, reorganisation of the ESMS Committee which will now include the following members: The Head of Business Units, the Head of Sustainability, and the Chief Risk Officer/

Head of the Risk Management Department, replacing the previously included Head of Credit Risk. The Bank understands the growing importance of climate related risks to the Banking sector and therefore, a new chapter titled "Climate Risk Portfolio Monitoring & Reporting" has been added to the ESMS Policy. Lastly, there has been a change in the ESG risk rating methodology for the Cement, Fertilizers, and Steel sector to align with ESG risks inherent in these industries. All ESMS proposals undergo an annual review process that includes both an ESG risk assessment and a review of credit facilities.

https://www.indusind.com/content/dam/indusind-

corporate/generic/ESMS.pdf

B. Enhancement assessment standards severe risk industries:

The Bank has developed industry-specific checklists in collaboration with a leading consulting firm to facilitate detailed assessments of ESG risks in six high-risk industries. These checklists have been shared with the relevant business units and knowledge-sharing sessions have been conducted to ensure better understanding and adoption of the aforementioned practices.

C. Climate Risk and Disclosure

The Bank, in line with RBIs approach, is dedicated to formulating policies that align with RBIs directives. i

Sustainability team is closely monitoring these developments and assess their implications for the Bank. Further, we are taking proactively engaging with I external consultants for internal capacity building and preparing the Bank for upcoming regulatory changes.

RBIs Climate Risk Disclosure guidelines draw on TCFD framework in its approch around 4 thematic pillars of disclosure

Governance	Board oversight on climate org. roles & responsibilities control and process governance competency assessment	Enhanced Disclosures: Deep integration of Climate Impact into Board and C-suite decisions and governance oversight
Strategy	Business Impact of Climate Integration with planning horizon understanding of key Impacts Financial Risks and Opportunities	Enhanced Disclosures: Integration of Climate Impact into financial planning and dynamically adapting the business model
Risk Management	Board oversight on climate org. roles & responsibilities control and process governance competency assessment	Enhanced Disclosures: Deep integration of Climate Impact into Board and C-suite decisions and governance oversight
Metrics &Targets	Climate risk adaption & mitigation targets and metrics Alignment with frameworks (e.g. SBTi) and external verification scope boundaries and disclosures	Enhanced Disclosures: Detailed Scope 1,2 and 3 GHG accounting incl. financed emissions, risks, opportunities & capital

D. Taskforce on Nature-related Financial Disclosures

Successfully completed the United Nations supported Task Force on Nature-related Financial Disclosures (TNFD) Pilot Programme. IndusInd Bank is the only bank in India selected for this Pilot exercise which largely focussed on assessing the Banks agricultural portfolio. This comprehensive assessment involved analyzing the environmental impact, resource dependency, and resilience of agricultural assets to biodiversity loss and ecosystem degradation.

By aligning with TNFD guidelines, the Bank has enhanced its understanding of how natural capital affects financial performance, enabling informed decision-making and fostering greater transparency with stakeholders. This proactive approach not only enhances the Banks risk management practices but also positions it as a leader in promoting environmental stewardship and sustainable agricultural practices in the financial sector.

The outcome of the study can be accessed at:

https://globalcanopy.org/wp-content/up-loads/2024/01/IndusInd-TNFD-case-study.pdf

3. ESG in Operations

The Bank aims to expand its ESG footprint in the Banksoperations through initiatives such as:

A. Greening the Bank

• Carbon Neutrality Target 2032: The Bank has publicly announced its board approved pursuit of carbon neutrality goal by 2032 and has developed a comprehensive strategy to achieve this target. As part of this strategy, specific interventions have been identified for implementation in the coming year. Additionally, the Bank has partnered with a domain expert technology vendor to implement an automated platform designed to measure Scope 1, 2, and 3 emissions, including financed emissions, along with other ESG metrics.

This advanced platform will continuously monitor emissions, significantly reducing the need for manual intervention, promoting scalability, and ensuring audit readiness. It will also support tracking progress against targets and facilitate informed decision-making.

• Green IT is definitive vision of the Bank with regular software updates; utilising new technologies and streamlining other IT operations including thin clients, virtual serves and timers for signages for enhancing energy efficiency

B. Awards and Ratings:

• IndusInd Bank was honoured with the prestigious Best Bank for ESG - India award at the Asiamoney Best Bank Awards 2023, marking its second consecutive win.

• Euromoney: Ranked as a Market Leader-FY2023 for ESG in India for the second consecutive year

• ESG Ratings:

• Carbon Disclosure Project (CDP): For the fiscal year 2023, the Bank received a rating of B, maintaining its leadership status among the top five private sector banks in India.

• S&P Global: The Bank has achieved a score of 55 out of 100 for FY2023 securing the second position among the top five private sector banks in India.

• LSEG ESG Score (formerly Refinitiv): With an impressive score of 85 out of 100 for FY2022, the Bank holds the leading position among the top five private sector banks in India.

• Morgan Stanley Capital International (MSCI): The MSCI has upgraded the ESG rating of IndusInd Bank from BBB to A in the fiscal year 2024.

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

• Sustainable Finance portfolio

• Green Fixed Deposits

• Integrated Report

• GHG emissions

The assurances have been uploaded on the Banks website.

• Policies: During the year, 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 available on its website:

https://www.indusind.com/in/en/sustainability/policies.html

• Capacity-Building

• Training and Awareness: The Sustainable Banking team disseminates information to all employees of the Bank via engaging infographics to communicate key ESG topics. The use of infographics enhances the accessibility and understanding of complex sustainability concepts, making it easier for employees to contribute towards the Banks sustainable objectives.

• Upskilling: A global expert advisory firm, facilitated training programs on global sustainable development and climate transition at the intersection of sustainability and finance. It organized in-depth sessions on the same over two months, for the entire Sustainability Unit and relevant BUs.

• Employee Volunteering

FY2024 was the second year of IndusInd Banks Employee Volunteering Programme. While continuing to build a culture of volunteering across the Bank, the program made significant strides, with the number of activities organized (46) increasing by 200% y-o-y, while the number volunteers that participated (3,629) increasing by 300% and the number of volunteering hours contributed (8,956) increasing by 230%.

In order to draw the focus of employees on volunteering and to get more employees to volunteer their time and skills, in Q3, the Employee Volunteering Team organized the inaugural edition of the IndusInd Bank Volunteering Week from 9th to 17th December 2023. The Bank organized 11 activities (9 in-person across 6 cities, and 2 virtual), which saw a participation of 1,189 volunteers, who contributed 3,436 volunteering hours.

In addition, to increase the reach of the Employee Volunteering Program, the team introduced Virtual Volunteering activities. It gave employees an opportunity to volunteer their time and skills irrespective of their geographical location, and without diluting the essence and the Banks definition of volunteering. In the last three quarters of the financial year, 411 volunteers participated in 12 virtual volunteering activities like creating learning aids and recording motivating stories with moral values for underprivileged children. The volunteers collectively contributed almost 1000 volunteering hours.

Another initiative launched in the second half of the financial year was Team Volunteering Activities - encouraging teams to leverage volunteering for team bonding. Seven activities (benefitting underprivileged children and children living in shelter homes) were organized for different teams, wherein 162 volunteers contributed 457 Volunteering hours. These activities received positive feedback from business leaders and volunteers.

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

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

• The Process Adherence and Quality function has been operationalized to attain uniformity in processes followed by branches to minimize operational risk.

• Expenses Management Software has been deployed at all branches to facilitate cost control.

Internal Audit

The Bank has a robust, distinct and dedicated Internal Audit function performing an independent evaluation of the adequacy and effectiveness of internal controls, information security controls, risk management and governance systems and processes on an ongoing basis and providing a reasonable assurance 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 a calculation of the total inherent risk of a Unit and the Control Risk Score. Accordingly, the audits are 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 controls in the Bank and to achieve continuous 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 suffer 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 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 these authorities.

The Bank has adopted three lines of defence: operations and business; internal governance, including Compliance Risk Management; and internal audit—to ensure a strong compliance culture at all levels.

Vigilance

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 curb opportunities for corruption, malpractice or misconduct on the part of the employees and take deterrent/preventive action to ensure 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, 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.

Customer Service

In FY2024, The Bank continued its focus on understanding the evolving needs of the customers, designing product & technology enabled propositions and building customer at the core philosophy within the organization, in line with its vision of being the Most Convenient Bank. The principles of Simple, Easy, Fast, and Transparent were leveraged in reimagining customer journeys, improving efficiency and client experience in interactions across touchpoints, to enable strong and lasting customer relationships.

The Bank has invested in setting up a dedicated Client Experience unit which continuously measures the Voice of Customers through transaction and engagement feedback, via digital mode. The Bank has adopted the Net Promoter Score (NPS) as a key metric to measure Customer Satisfaction and to drive improvement actions across its various customer channels and journeys. NPS program has been embedded across the bank and helps us to understand better whats working well & what needs improvement and to prioritize our improvement efforts accordingly.

The Bank is making a steady progress in its commitment to deliver superior customer service experience as exhibited by increase in the Promoters trends, resulting in improved Net Promoter Score across journeys. 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.

To gauge and assure the service superiority of a very important touchpoint i.e. our branch network, bank conducts independent evaluations through external mystery audit firm. These outside assessments offer insights on branch hygiene, upkeep and service experience and guides the leadership towards focussed actions to improve experience.

The Bank has also laid diligent process of reviewing products & services before they are launched for the customers to ensure seamless experience post launch. Further, to support the product and service improvement journey, Customer feedback is also collected through Branch Level Customer Service Committee (BLCSC) meetings on a monthly basis.

Client Experience often reflects how the organizations employees feel about their work. The Bank believes that there is a direct connection between Employee Experience and Customer Experience and that 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 support and engagement by following a three pronged approach:

• Continuous knowledge enrichment and skill enhancement through learning and development initiatives to enable faster and first time right service delivery

• Empowering its frontline employees to facilitate speedy resolution of customer issues at the first point of contact

• Recognizing Employees delivering exemplary service to the customers and duly appreciating them to elevate customer centric culture within the bank

Moreover, to ensure a positive client experience, it is imperative to have synergies across all teams in order to bridge gaps. With this objective, the Bank captures and measures Voice of Internal Customers (i.e. Employees). This not only allows employees to share their feedback but also gives an opportunity to drive improvement through benchmarks for internal departments. During the year, the overall voice of internal customer ratings showed a healthy improvement which is a testimony of the efforts being taken to build positive internal service culture

Providing an exceptional client experience is an on-going process and IndusInd Bank is committed to the continuous process of understanding its customers and evolving its Client experience strategy to meet the changing requirements of the clients.

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, call the Banks Contact Centre on the toll-free number, email the dedicated email IDs or access the Banks website, www.indusind. com to lodge their grievances in a simplified way and get their complaints redressed without delay.

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 recognize the importance of regular and transparent communication with our shareholders. Shareholders shall continue to receive best-of-class services and be promptly informed of the developments in the Bank.

Contact details of shareholders such as e-mail IDs, mobile numbers and telephone numbers are obtained, to communicate to them about developments of the Bank. This direct communication is in addition to the regular dissemination of information through usual channels such as the stock exchanges, press, the Banks website, RTAs website, etc.

The practice of sending SMS / e-mail messages to shareholders continues, informing about Board meetings for Quarterly / Annual Financial Results, and forwarding snapshots of the results.

The Bank has been at the forefront of Green Initiatives and aspires to graduate to paperless disclosures and compliances continually.

With the implementation of the Companies Act, 2013, companies are permitted to send Annual Reports and other communications electronically to shareholders who have registered their email addresses with the Bank or made them available by the Depository.

Shareholders are requested to furnish their e-mail IDs at investor? indusind.com or by sending a request in writing to the Secretarial & Investor Services Office to help accelerate the migration to paperless communication.

The full text of the Annual Report is also made available in an easily navigable format on the website www.indusind.com under the link Investors/Reports and Presentation/Annual Reports.

Shareholders are also informed about the process for claiming the dividend amounts lying unclaimed with the Bank.

As regards the transmission of securities, in the case of securities held in physical mode (in a single name, without nomination), SEBI vide Circular No. SEBI/HO/MIRSD/RTAMB/P/CIR/2022/65 dated, May 18, 2022 has prescribed a threshold limit of up to ^5,00,000 (rupees five lakhs only) in case of securities held in physical mode, i.e., market value of securities per folio, as on the date of the application for transmission, for following simplified documentation.

SEBI has, however, empowered issuer companies to enhance the value of such securities at their discretion. The Bank already increased the threshold limit for shares held in physical mode up to ?10 lakh at its Board Meeting held on October 13, 2014.

Considering the difficulties faced by legal heirs of deceased shareholder(s), in obtaining of Succession Certificate / Probate / Letters of Administration, the Board of Directors of the Bank has, for the convenience of shareholders, delegated the authority to the Share Transfer Committee for approving transmission of securities held in physical mode of market value of securities of up to ^10,00,000 (Rupees Ten lakhs only) subject to compliance with the simplified documentation procedure prescribed by SEBI.

Shareholders are requested to note that pursuant to provisions of Section 124 of the Companies Act, 2013, the amounts of dividend remaining unpaid or unclaimed for a period of 7 years from the date of their 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.

Further, the Ministry of Corporate Affairs has made effective the provisions of Section 124(6) of the Companies Act 2013, which requires that all shares in respect of which dividend has not been paid or claimed for seven consecutive years or more be transferred to the IEPF Authority.

The Bank has sent intimation to shareholders on May 31,2024, in respect of the shares on which dividend for FY2017 had remained unpaid or unclaimed for seven consecutive years or more, requesting them to claim such dividend on or before August 30, 2024, so as to avoid the corresponding shares from being transferred to the IEPF Authority.

Notice in this regard was also published in Financial Express (all editions) and Loksatta (Pune Region) on May 29, 2024.

The detailed procedure for claiming the shares / Dividend amounts which have been transferred to IEPF Authority is available on the website of the IEPF Authority at: http:/www.iepf.gov.in/IEPFA/refund.html.

Shareholders are requested to contact Link Intime India Pvt. Ltd., Registrar & Share Transfer Agent of The Bank (contact details and office address given in the Notice) / Secretarial and Investor Services Department of the Bank, for claiming unclaimed dividends standing in their name.

The information pertaining to unpaid or unclaimed dividends, the details of such shareholders and the shares due for transfer to the IEPF Authority is also available on the Banks website at www.indusind.com.