IndusInd Bank Ltd Management Discussions

1. MACROECONOMIC AND BANKING ENVIRONMENT

During the year 2025-26, the Indian economy faced external headwinds and shocks in the form of a sharp increase in tariffs amidst a shift in the US trade policies and geopolitical tensions with conflict in West Asia triggering an energy price surge. Supported by fiscal measures and monetary policy easing, the Indian economy remained resilient. While domestic drivers of private consumption and public capital spending steered growth, external sector contribution dropped. Adequate foreign exchange reserves and a flexible exchange rate helped the economy withstand the adverse external spillovers. That in turn allowed the domestic policies to focus on supporting growth. Rationalisation of the goods and services tax (GST) rate structure along with lower monetary policy rates and easy financial conditions helped drive private consumption, credit demand, and overall economic activity, especially during the second half of the year. Macro-economic and financial stability along with benign inflation also helped to underpin the domestic demand. National income estimates using the new base year 2022-23, placed real GDP growth at 7.7% in FY2026 compared to 7.1% in the year before. Global economic activity displayed resilience too, despite high import tariffs, elevated policy uncertainty, and geopolitical tensions. The final impact of the US tariff measures turned out to be less severe than initially anticipated. Fiscal support in advanced economies and technology-related investments and trade aided growth. A military conflict in the Middle East, which flared up in March, is going to test resilience of the global and the Indian economy.

Domestic macroeconomic policies remained focused on strengthening the short-term and long-term growth impulses. On the fiscal policy front, a comprehensive review of the GST rate structure was undertaken in September, to simplify it and to further reduce internal trade frictions while providing a boost to consumption by lowering average rate. The new labour codes were implemented in November, which will help improve labour market flexibility and attract investments in labour intensive manufacturing sectors while strengthening the social security net. Benign inflation allowed the easing of the Repo rate by 100 bps over the year. Lower interest rates helped support urban consumption and investor sentiment. Trade agreements were announced with UK, EU, Oman, and

New Zealand providing greater, and duty-free access to Indian exports while opening domestic markets to imports and investments from these regions. These wide-ranging policy measures aided in countering the adverse effects of US import tariffs on Indian exports, which were raised to 50% by August and reduced to 18% subsequently with India and US pursuing a bilateral trade agreement. Recognising Indias strong longterm growth prospects and structural improvement in public finances, rating agency S&P upgraded the countrys sovereign rating to BBB in August, marking first such upgrade in 18 years.

Macroeconomic stability was further reinforced by the government reducing its budget deficit while maintaining focus on capital expenditure. In a major shift, the Budget for FY2027 changed the fiscal anchor to Debt-to-GDP, with a target of reaching 50+/-1% by March 2031. This moves away from targeting fiscal deficit to GDP ratio and will help strengthen the countercyclical role of the fiscal policy, by balancing the growth imperative with fiscal consolidation. Otherwise, the budget retained a capex focus with spending on capital formation kept at 3% of GDP. Along with a successful fiscal consolidation, price stability through the flexible inflation targeting framework for monetary policy is providing the necessary condition for sustaining high growth. During the year, the National Statistics Office (NSO) released a new CPI series with base year 2024, which incorporated the latest consumption pattern and made methodological and data improvements. Headline CPI inflation eased to an average of 2.1% during FY2026 from 4.6% in FY2025, helped by low food inflation and benign core inflation. With inflation easing towards the lower end of the target band, reduction in the Repo rate cut was frontloaded towards the first half of the year.

Along with lower policy rates, the RBI also infused durable liquidity worth Rs13.80 trillion via open market bond purchases, a 100 bps CRR cut, and USD/INR swaps. That helped counter the impact of liquidity drain over the second half of the year, due to dollar sales by the RBI to support the Rupee and an increase in currency-in-circulation. Liquidity infusion helped create conditions conducive to meet the credit needs of the commercial sector. In the rates market, the sovereign bond yield curve steepened over the year, as short-end rates eased helped by lower Repo rate, while yields for medium and longer tenors rose. Large supply of government bonds, especially by the state governments, and with signals of a prolonged pause on monetary policy combined with a flare up in oil prices over the last quarter of the year, pushed long-term bond yields higher.

In the banking sector, credit growth continued to record strong growth, enabled by strong economic activity during the second half of the year. Growth in bank credit accelerated to 16% y-o-y as on March 31, 2026, from 11% a year ago. Personal loans and the services sector continued to drive the overall credit growth during the year. Within the services sector, NBFCs remained the largest recipient of bank credit. Industrial credit growth, at 15% y-o-y remained above its long-term average, with credit to MSME segment witnessing sustained robust expansion. Credit growth in the infrastructure sector also picked up over the year.

On the external front, headwinds increased over the year. The current account remained in deficit on the back of rising merchandise trade deficit, while net FPI equity outflows exceeding $16 billion, pushed the overall Balance of Payments (BoP) into deficit too. The CAD as a percentage of GDP stood at 0.6% for the year, same level as the year before. While the goods trade deficit widened on higher imports growth and stagnant exports, net services trade surplus helped keep the CAD well within manageable levels. The Indian Rupee depreciated by 9.9% against the US dollar on the back of imposition of punitive tariffs by the US and the BoP deficit rising to around 0.6% of GDP. The RBIs foreign exchange reserves increased by about $23 billion over the year, helped by valuation gains of $46 billion on its foreign assets and gold reserves. Indias overall external fundamentals remained healthy with adequate foreign exchange reserves buffer. Countrys net international investment position improved to -6.9% of GDP by end-December, from -8.7% at the end of March 2025.

Downside risks to growth and economic activity and upside risks to inflation have intensified following a surge in oil prices driven by the West Asia conflict, and with the closure of Strait of Hormuz.

Higher commodity and oil prices can lead to higher inflation and subdued demand, especially in commodity importing emerging economies, with currency depreciation pressures exacerbating the impact of higher energy and food prices. In response to this supply shock, the Central Government and the RBI stepped up support measures to contain the fallout on the wider economy, sectors impacted and livelihoods. Gradual normalisation of Strait of Hormuz and energy supply from the Middle East, following an MOU between US and Iran extending the ceasefire, will also help temper the headwinds. Much still depends on the duration and the intensity of the lingering energy price and supply shock. Given its domestically oriented nature along with policy support already in place and space available for more if required, the Indian economy can withstand the adverse spillovers from a short duration energy supply disruption. Still heightened uncertainty around the geopolitical and supply risk around the West Asia conflict calls for nimble policy response to ensure macroeconomic and financial stability. Measures announced by the government and the RBI in June will not only help build foreign exchange buffers and stabilise the Rupee, but will also help support the credit needs of commercial sector.

2. BUSINESS OVERVIEW

2.1 Operating Performance

The salient features of the Banks Operating Performance in FY2026 are summarised in the table below:

(Rs in crore)

Particulars	FY2026	FY2025	y-o-y Growth
Interest Earned	46,250.81	48,667.67	-4.97%
Interest Expended	28,268.49	29,636.35	-4.62%
Net Interest Income	17,982.32	19,031.32	-5.51%
Non-Interest Income	7,217.06	7,684.19	-6.08%
Revenue	25,199.38	26,715.51	-5.68%
Payment to Employees	5,391.72	4,810.83	12.07%
Other Expenses	10,089.37	10,774.71	-6.36%
Operating Expenses	15,481.09	15,585.54	-0.67%
Operating profit before Depreciation, Provisions, and Contingencies	9,718.29	11,129.97	-12.68%
Depreciation	516.08	485.11	6.38%
Operating Profit	9,202.21	10,644.86	-13.55%
Provision and Contingencies	7,933.10	7,030.14	12.84%
Profit Before Tax	1,269.11	3,614.72	-64.89%
Provision for Tax	335.78	971.82	-65.45%
Net Profit	933.33	2,642.90	-64.69%
Consolidated Performance
Operating Profit	9,179.54	10,661.40	-13.90%
Net Profit	889.34	2,575.54	-65.47%
Key Balance Sheet Parameters:
Particulars	FY2026	FY2025	y-o-y Growth
Deposits	4,00,173.75	4,11,078.14	-2.65%
Advances	3,15,871.39	3,45,018.63	-8.45%
Balance sheet size	5,43,419.06	5,54,018.43	-1.91%

2.2 Business Performance Highlights

FY2026 was a year of stabilisation, transition, and strategic recalibration for the Bank. Against a backdrop of evolving macroeconomic conditions and internal transformation, the Bank prioritised strengthening its foundations over near-term growth. The Bank focused on balance sheet recalibration, leadership succession, asset quality improvement, and stronger governance, while laying the foundation for long-term value creation through the implementation of a refreshed strategic roadmap.

Balance Sheet Recalibration with Enhanced Granularity

During the year, the Bank focused on optimising the balance sheet and improving its structural resilience. This included consciously moderating growth, rationalising lower risk-adjusted return businesses, and re-allocating capital towards granular and higher-quality segments.

On the liabilities side, the Bank made steady progress in enhancing deposit granularity through a continued focus on retailisation and customer-led deposit growth. The share of retail deposits, as per Liquidity Coverage Ratio (LCR), improved to 47.9% from 46.6% in the previous year, reflecting reduced reliance on bulk sources.

On the asset side, the Bank adopted a selective, risk-calibrated approach, leading to moderated growth. The loan book declined by 8% y-o-y, driven by a conscious run-down in microfinance amidst an adverse asset quality cycle, alongside tightening of credit underwriting, and rationalisation of select large corporate exposures with sub-optimal risk-adjusted returns. The portfolio mix shifted towards secured retail, SME, and granular corporate segments.

Overall, these actions resulted in a more granular and resilient balance sheet, positioning the Bank for sustainable growth. The Bank continues to maintain strong capital and liquidity buffers, with a CRAR of 17.48%, CET 1 of 16.20% and quarterly average LCR of 118%, providing ample capacity to support future growth.

Leadership Transition

FY2026 witnessed a significant leadership transition phase, with the Bank strengthening its senior management team and organisational structure in line with its evolving strategic priorities. The Bank onboarded key leaders across businesses and control functions, including Retail Banking, Wholesale Banking, Risk, Technology, Finance, Internal Audit, and Human Resources. With the leadership team now largely in place, the Bank benefits from their diverse experience and strong execution focus.

In parallel, the Bank undertook an organisation-wide structural realignment, including integration of retail distribution channels, enhancement of branch-led delivery, and strengthening of data and digital capabilities. Together, these initiatives ensure that the leadership architecture and operating model are closely aligned with the Banks refreshed strategic roadmap, supporting sharper execution and improved accountability.

Asset Quality

During the year, asset quality remained stable across key portfolios, excluding micro loans. Core portfolios such as vehicle finance, SME, secured retail, and wholesale banking demonstrated resilience, with slippages remaining broadly range bound. However, the adverse microfinance cycle continued to play out in FY26 as well, resulting in elevated credit costs during the year. The Bank responded through tightened underwriting standards, strengthened collection frameworks, and prudent portfolio management. Encouragingly, the microfinance portfolio has begun to show early signs of recovery, with declining slippages, reduction in early bucket delinquencies, and improving collection efficiency. These trends indicate that the portfolio is progressing towards normalisation, providing confidence that credit costs are nearing their peak, supporting a transition towards stable and calibrated growth.

Financial Outcome

Financial performance during FY2026 reflects the Banks conscious focus on strengthening the foundation before than pursuing growth. The Bank reported a consolidated pre-provision operating profit of Rs 9,180 crore and a Profit After Tax of Rs889 crore for the full year. Profitability was impacted versus prior year due to loan book moderation, adverse loan mix, and elevated credit costs, primarily driven by stress in the microfinance portfolio.

With growth gradually resuming, asset quality trends improving, and credit costs moderating, the Bank is well positioned for a meaningful improvement in profitability from FY2027 onwards.

Way Forward: P.A.C.E. Strategy to Drive Sustainable Growth

In FY2026, the Bank articulated its three-year strategic roadmap—P.A.C.E.— which provides a clear framework to drive sustainable and profitable growth:

- Protect the Endowments: Strengthen and preserve core franchises including vehicle finance, rural banking, and corporate relationships.

- Accelerate Key Priorities: Build a granular and lower-cost deposit base, scale SME and mid-market businesses, and improve efficiency.

- Customer Centricity: Deliver a unified One IndusInd experience through digital innovation and superior service delivery.

- Execution Excellence: Drive a culture of strong execution discipline, sharper accountability, and cost efficiency.

Overall

FY2026 represents a year of deliberate reset and transition, with the Bank taking decisive steps to recalibrate its balance sheet, strengthen governance and compliance frameworks, and align its organisation for the future.

With a strengthened leadership team, improving asset quality trends, and a clearly defined P.A.C.E. strategy, the Bank is well-positioned to rebuild growth momentum, enhance stakeholder confidence, and deliver sustainable long-term value.

3. CONSUMER BANKING

3.1 Consumer Liabilities

During FY2026, the Bank continued to strengthen its customercentric strategy across both premium and mass segments. The launch of the Indus Capital Gains Account Scheme marked a key step in addressing specialised customer needs with a seamless and compliant solution. The Bank further strengthened its premium portfolio, with Pioneer and Pioneer Private catering to the evolving requirements of affluent and high-net-worth customers. Simultaneously, the Bank enhanced its senior citizen offerings through the Indus Grande Care and Indus Care programs, delivering greater convenience and personalised experiences. While maintaining a strong foothold in the mass segment, the Bank strategically advanced its premiumisation agenda to support balanced and sustainable growth.

Indus StartUp Banking

Fuelling Indias next wave of innovators

Launched in FY2026, Indus StartUp Banking is a purpose-built offering designed to support the banking and beyond-banking needs of startups, as well as mid-market segment enterprises. The flagship Indus Startup Current Account offers a three-year waiver on maintenance charges, zero setup fees on collection and payment solutions, expert-led global trade advisory.

Within its first year, about 35 ecosystem partners were onboarded including the Department for Promotion of Industry and Internal Trade (DPIIT), Atal Innovation Mission, and InnovHer, reinforcing IndusInd Banks position as a trusted growth partner for startups across their lifecycle-from seed stage to unicorn status.

DIGICA 2.0: Transforming Current Account Onboarding Experience Through Digital Innovation

Launched in March 2025, DIGICA 2.0 was envisioned as a next-generation digital on boarding platform to redefine the Current Account acquisition journey. Built with a customer-first approach, the platform aimed to simplify account opening, reduce turnaround time, and deliver a seamless, secure, and hassle-free onboarding experience. In FY2026, DIGICA 2.0 has emerged as a key enabler in accelerating digital adoption, enhancing operational efficiency, and improving customer satisfaction (NPS). The success of DIGICA 2.0 highlights the Banks commitment to leveraging technology to create superior customer experiences while improving operational efficiency. The platform has not only accelerated digital onboarding but has also strengthened our capability to acquire Current Account customers at scale with speed, consistency, and convenience.

Beyond Banking Solutions

Empowering businesses beyond the balance sheet

Recognising that business clients require more than traditional banking services, IndusInd Bank has curated a suite of Beyond Banking Solutions through select B2B partnerships. Through a dedicated digital platform, business customers can access a range of partner-led services at preferential rates, browsing personalised offers and enrolling seamlessly directly via the Banks website.

3.2 SME and Merchant Acquiring

The Banks Consumer Current Account portfolio sustained its growth trajectory, underscoring our deep engagement with the Business Owner segment. With nearly the entire branch network aligned to serve micro, small, and medium enterprises, our strategic focus remains firmly rooted in delivering tailored banking experiences that scale with our clients ambitions.

Our flagship offering, Indus One Business, a unique autotier optimisation product, has emerged as a cornerstone in this journey with 60% product penetration by the year end, embodying Banks philosophy of growing alongside its customers. Complemented by a comprehensive suite of merchant, trade, and forex solutions, the proposition caters seamlessly to businesses of all scales, providing them with a single-window solution for their evolving financial needs.

Investments in digital onboarding and workflow integration have further enhanced client experience, reinforced regulatory compliance and minimised risk exposure. This digital-first approach has ensured agility and robustness, enabling the Bank to respond effectively to todays dynamic business landscape.

The year also witnessed strong traction in merchant acquiring, with POS penetration across digital collection witnessing a notable rise along with profitability. The expansion of value- added services, including NFC-enabled soundboxes with card acceptance capabilities, has enriched the merchant experience while lowering the acceptance cost. These initiatives have further positioned the Bank as a holistic partner for businesses across physical and digital commerce, including e-commerce payment gateway solutions.

Looking ahead, INDIE for Business is poised to become the unified digital platform for entrepreneurs and business owners, offering a range of features from integrated merchant servicing and bulk payments to secure transaction workflows with maker- checker controls.

Through sustained technology enhancement, sharper execution, and a focus on building high-quality portfolios, the Bank remains committed to empowering the Business Owner segment with progressive, efficient, and secure banking solutions.

3.3 Retail Payments

The Bank continued to witness growth in retail deposits during FY2026, consistent with the trend observed in the previous year. This growth was ably supported by the sustained increase in digital transaction volumes, particularly through the Unified Payments Interface (UPI). As of March 2026, UPI transactions by volume recorded strong year-on-year growth of 19%, while transaction value grew by 13%, reflecting deeper customer engagement and the rising adoption of digital payments across the Banks ecosystem.

3.4 Client Wealth Management

The Wealth Management division played a critical role in the Banks financial performance in FY2026. 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 Investment services division delivered consistent growth during the year, supported by increasing demand for comprehensive, multi-category coverage. We adhere to a rigorous investment selection process and offer a diverse range of products and solutions through partnerships with 34 Asset Management Companies. We have also enhanced our user interface for investment services, further improving the customer experience. As part of our expanding investment offerings, the Bank successfully obtained the Specialised Investment Funds (SIF) license in FY2026. This milestone strengthens our investment product suite and enhances our ability to serve the ever-evolving investor needs, particularly those of sophisticated clients seeking alternatives to conventional investment options within a robust regulatory framework.

3.5 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, witnessed a de-growth of 8.9% in disbursement y-o-y. Card spends grew by 3.8% y-o-y, resulting in a 7.4% y-o-y growth in the overall book.

3.5.1 Retail Agriculture Business

To strengthen its presence in the core sector of the Indian economy, the Bank sanctioned over Rs4,296 crore to support more than 27,000 farming households across 143 districts in Madhya Pradesh, Gujarat, Haryana, Punjab, Kerala, Rajasthan, Maharashtra, and Chhattisgarh. These funds are supporting a wide range of agricultural and agri-allied activities, contributing to rural livelihoods and agricultural development 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 platforms.

The Bank has also extended loans to small and marginal farmers, women beneficiaries, and other underserved sections of society, reaffirming its commitment to financial literacy. By actively engaging with stakeholders in the agricultural value chain, the Bank remains informed about the latest developments in the evolving sector, enabling it to deliver tailored financial solutions catering to the diverse needs of its customers.

To ensure the financial security of its customers, the Bank offers insurance solutions that help safeguard their loan liabilities in the event of death or disability. Additionally, the Bank provides crop insurance to protect farmers against losses through the Pradhan Mantri Fasal Bima Yojana (PMFBY). The Bank also facilitates the implementation of government-backed schemes, including the KCC Modified Interest Subvention Scheme (MISS) and Pashu KCC (P-KCC) for individual farmers.

3.5.2 Loan Against Property

IndusInd Banks Loan Against Property (LAP) business continued its growth momentum in FY2026, focusing on portfolio growth and maintaining asset quality. LAP gross advances increased by 6.7% y-o-y to Rs13,298 crore. The Banks branch channel saw healthy contribution to 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 FY2025 further boosted sourcing and revenue. The business continued to leverage its credit scorecards and collection capabilities to enhance asset quality and risk cost.

3.5.3 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 FY2026, leading to advances growth of 45% y-o-y to Rs6,510 crore. The Home Loans business is currently being sourced from 22 locations across 13 states. The business will continue to focus on advancing growth and asset quality.

3.5.4 Personal Loans (PL)

PL advances increased by only 1% y-o-y. The focus was on Salaried Open Market Customers, Digital Business, and crossselling Personal Loans to existing Savings account customers, contributing to 96% of disbursal volume. The product has a live portfolio size of 10,358 crore. The business will continue to grow with primary focus on robust asset quality and profitability.

3.5.5 Credit Cards

IndusInd Banks credit card business demonstrated resilience and stability during FY2026, with spends registering a 4% y-o-y growth, reflecting the Banks calibrated approach towards portfolio expansion and risk management. The overall card base remained stable at approximately 3 million cards, supported by seamless digital onboarding capabilities and continued focus on customer-centric product innovation. The business performance remained broadly aligned with industry trends, while the Bank continued to maintain healthy portfolio metrics and superior spending traction.

During the year, the Bank strengthened its credit card franchise through two strategic partnerships. The collaboration with Jio- bp was aimed at enhancing engagement within the premium customer segment, while the co-branded partnership with CRED was launched to cater to the evolving lifestyle and digital preferences of affluent customers. These initiatives are expected to further strengthen the Banks positioning in the premium cards ecosystem through differentiated value propositions and enhanced customer experience.

In FY2027, IndusInd Bank aims to build on its enhanced risk management framework and take a calibrated growth approach by scaling partnerships and aligning its product suite to the evolving consumer preferences, particularly in the co-brand and digital segments.

4. AFFLUENT BANKING

The Bank continues to strengthen its presence at the top end of the value chain through its flagship PIONEER and PIONEER Private propositions, delivering a bespoke banking and wealth management platform for High-Net-Worth Individual (HNI) and Ultra-High-Net-Worth Individual (UHNI) clients across India and global markets.

With PIONEER offerings extended across the Banks expansive network of 3,136 branches, the customer base grew by 31% in FY2026. The PIONEER Private proposition for UHNI clients, launched in FY2025, has witnessed strong traction, with the customer base doubling in FY2026.

This sustained growth momentum is anchored in robust product and service pillars:

Elevated Service experience through experienced Affluent Bankers, a holistic product suite, dedicated service teams, and exclusive PIONEER lounges Personalised Expertise enabled by a dedicated pool of specialists across banking and investment products, fostering trust and transparency in recommendations, supported by a comprehensive investment platform and curated opportunities

Exclusivity through best-in-class lifestyle benefits via differentiated Debit and Credit Card offerings, along with tailored privileges and offers

Future-Ready Technology Stack leveraging advanced analytics, machine learning, and automation to anticipate evolving client needs, while empowering relationship teams to deliver seamless, secure, and differentiated experiences with consistently superior service

The Bank remains focused on scaling its affluent franchise by extending bespoke, and holistic offerings, thereby deepening client engagement and driving growth in assets under management within this segment.

4.1 NRI banking

NRI Banking, an integral pillar of the Banks Affluent strategy, continues to deliver robust growth and deepen global client engagement.

The segment has demonstrated continuous growth. A dedicated vertical in the Bank focused on gaining market share by leveraging vast distribution network, digital channels and partnerships. The Bank is today a dominant Private sector Bank in the NRI space.

In an endeavour to further strengthen its position, the Bank is working on expanding its product suite and partnerships across the globe. 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 NRI clients to open accounts from the comfort of their overseas homes. Recognising the importance of dedicated services, IndusInd Bank has designated 198 branches as NRI-focused branches. Moreover, to service NRI clients, the Bank has a strong Virtual Service team, Digital Banking platforms, and 24/7 Toll-Free Call Center numbers in select countries to cater to NRI clients residing outside India.

4.2 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 $2.66 billion (provisional and unaudited) as of March 31,2026. The unit witnessed substantial growth in offshore business, offering a variety of services including accepting deposits mainly from Affluent Banking, Gems and Jewellery (G&J), Corporate and Commercial Banking Group (CCBG) verticals, Trade Credits, short-term and long-term loans (through syndication and Risk Participation) to overseas entities, Swaps, Derivatives, and other treasury products.

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 and 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 undertakes derivative trades at IFSC GIFT City by leveraging and strengthening its presence to trade in non-deliverable derivatives. The desk generates steady revenue through trading and offering treasury risk solutions to global counterparties. Additionally, the IBU maintains a leading position with around 46% (as of December 31,2025) market share in retail customer liabilities amongst the IBUs at IFSC GIFT City, highlighting its prominence in managing significant customer liability books.

The Bank continues to be at the forefront in its association with International Financial Services Centres Authority (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.

During Q4 FY2026, the escalation of military conflict involving Iran, Israel, and the United States disrupted global trade routes, notably the Strait of Hormuz and Red Sea, leading to higher freight costs, elevated insurance premiums, longer transit times, and volatility in energy prices. Considering the war situation, citizens of UAE and registered entities started looking to put funds at safe and regulated places which gave IFSC Banking Units a tactical advantage.

5. CONSUMER FINANCE DIVISION

The Consumer Finance Division (CFD) focuses on vehicle financing, the main domain expertise of the Bank. CFD has a healthy market share across product segments, deep customer penetration, and a well-managed business franchise.

The CFD extends funding for a wide range of Vehicles/ Equipment, which includes Heavy, Light, and Small Commercial Vehicles used for Goods and Passenger Applications, Auto loans, Two-Wheelers, Tractors, and Construction Equipment such as Excavators, Loaders, Tippers, Cranes, etc. Finance is extended for both, new and used assets in all the above segments. Low cost / Affordable Housing Loans are being offered in CFD enabling participation in the Housing for All project, a key focus area of the Government of India.

CFD handled around 3 million loans with a loan outstanding of Rs1,02,715 crore in FY2026 as against Rs97,898 crore in FY2025, 5% increase over previous year. In terms of advances growth, the Affordable Housing loan recorded 23% growth and the advance stood at Rs2,839 crore. Light Commercial vehicles recorded robust growth with 12% growth over previous year with advances of Rs13,864 crore in FY2026 as against Rs12,361 crore in FY2025 followed by Small Commercial vehicles which recorded a 9% growth over the previous year at Rs4,692 crore from Rs4,311 crores.

CFD disbursed 8.56 Lakh loans in FY2026 amounting to Rs48,127 crore as against Rs48,374 crore in the previous year. Tractor funding increased to Rs3,169 crore in FY2026 as against Rs2,682 crore in FY2025. Commercial vehicle segment encompassing Medium and Heavy Commercial Vehicles, Light Commercial Vehicles, and Small Commercial Vehicles recorded a disbursement of Rs20,650 crore in FY2026 as against Rs19,485 crore in the previous year. Auto loan disbursements were at Rs10,909 crore in FY2026 for New Vehicles and Rs3,353 crore for Used Vehicles. Construction Equipment disbursements were at Rs6,330 crore in FY2026 as against Rs6,879 crore in FY2025. Two-wheelers showed a major reduction in disbursement to Rs2,736 crore from Rs4,061 crore in FY2025 as underwriting norms were made more stringent and sourcing restricted to low delinquency branches.

In line with the Banks technology transformation agenda, the standalone payment accounting system has been integrated into the Oracle Accounts Payable platform, while the Loan Origination System has been successfully migrated to Salesforce. These strategic initiatives have significantly strengthened the technology backbone of CFD, enabling seamless system integration, improved process standardisation, and enhanced auditability.

As a result, the business is witnessing faster turnaround times, improved operational efficiency, and more robust governance and control frameworks. Additionally, CFD has enabled Bring Your Own Device (BYOD) capabilities for collections, replacing the earlier Pro Collect application. This has enhanced field productivity, enabled real-time monitoring, and improved operational flexibility for field teams.

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 a wide range of banking products and services encompassing loans to microfinance customers, loans to merchants, liability products and remittances. BFIL has built an extensive distribution network particularly in rural areas, serving over 1.62 Lakh villages, and operates in 528 districts across 23 states as of March 2026, encompassing rural, semi-urban, and urban centres. With a dedicated team of approximately 32,000 field staff, BFIL facilitates daily financial transactions for customers, including small ticket loan disbursements, instalment collections, opening savings and deposit accounts and distribution of insurance products.

6.2 Assets

As of March 31, 2026, BFIL originated portfolio stood at Rs24,496 crore, reflecting a 34% y-o-y decline, primarily driven by slowdown in the microcredit business. The active borrower base stood at ~52 Lakh through its network of 3,427 branches across 23 states. This contraction in portfolio was largely attributable to industry-wide slowdown following the implementation of MFIN guardrails, which resulted in higher borrower rejection rates and, consequently, lower disbursement volumes. Additionally, the Company adopted a prudent and calibrated lending approach during the year, further contributing to the decline in disbursements.

Microfinance

BFILs Microfinance business vertical is dedicated to empowering women entrepreneurs at the bottom of the economic pyramid, enabling them to achieve financial independence and improve their quality of life, including better health and well-being. These women engage in rural economic activities, such as livestock rearing, farming, producing agricultural products, crafting handmade goods, tailoring and other livelihood activities. BFIL operates through a hybrid model that combines a high-touch approach, where field staff actively support borrowers in conducting financial transactions with robust, technology-driven processes enabled by its in-house digital platform, facilitating seamless and paperless loan origination and servicing.

Through its Microfinance business, BFIL has presence in 1.62 Lakh villages across 445 districts and 21 states. It manages the credit requirements of ~46 Lakh women borrowers.

During FY2026, the Indian microfinance industry was impacted by elevated borrower overleveraging, weakening portfolio quality and cautious lending practices across the sector. Lenders adopted stricter guardrails and tighter underwriting standards to control multiple lending and enhance credit discipline, which resulted in calibrated disbursement growth and reduced exposure to high-risk borrowers. While these measures moderated overall portfolio expansion, the latter part of the year witnessed sequential improvements in disbursements and asset quality, indicating early signs of stabilisation and recovery in the sector.

As of March 31, 2026, BFILs Microfinance loan book stood at Rs16,439 crore, reflecting a decline of 45% from Rs29,960 crore in the previous year. This contraction was primarily driven by muted disbursements in the first half of the financial year during which the Company undertook process strengthening and implemented enhanced controls to improve the quality of originations. Disbursement momentum picked up in the second half of the financial year, along with a sharp improvement in fresh flows to arrear bucket i.e., current to 0+DPD movement. Loans originated since July 2025 have demonstrated excellent portfolio quality.

Further, the Microfinance portfolio has been brought under the Credit Guarantee Fund for Micro Units (CGFMU) scheme starting FY2026, with approximately 70% of the current (0 DPD) portfolio covered as of March 2026.

Loans to Merchants

BFIL, as a Business Correspondent of the Bank, has been offering loans catering to the needs of entrepreneurs managing micro-retail stores across the country, thereby addressing the Missing Middle through its Bharat Super Shop (BSS) program. Through this channel, BFIL provides nano entrepreneurs with a comprehensive suite of banking services, including zero-balance current accounts, recurring deposits, secured and unsecured working capital loans, and digital payment solutions such as UPI and QR codes. These offerings are further complemented by mobile and WhatsApp-based banking channels, enabling seamless and convenient access to financial services.

As of March 31,2026, BSS has been operating in 593 cities across 19 states, serving over 19.7 Lakh merchants, with an active borrower base of ~5.7 Lakh and a loan book of Rs8,042 crore, reflecting 11% year-on-year growth.

Further, the portfolio is covered under various credit guarantee schemes, including the Credit Guarantee Fund for Micro Units (CGFMU) and the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), with an aggregate coverage of 82% of the current (0 DPD) portfolio as of March 2026.

6.3 Liabilities

Consistent with its vision of being a diversified financial services provider, BFIL sourced approximately 176 Lakh active liability accounts on behalf of the Bank. The liabilities business remained largely resilient, remaining broadly stable on a year-on-year basis. As of March 2026, the total liability pool of BFIL-serviced customers with IndusInd Bank—including savings, current, recurring, and fixed deposit accounts—stood at Rs2,657 crore, remaining broadly flat year-on-year (down marginally by 0.9%).

6.4 Transaction Points and Customer Service

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

As of March 31, 2026, BMS has more than 85,000 Kirana Merchant outlets spread across 36,000+ villages, and 20 states reaching out to the remote corners of India. During the year, around 4,975 new merchants were onboarded. The merchants leverage BMS banking and transaction platform and function as banking touchpoints offering a range of banking and financial services to the customers. The liability balances through this channel stood at Rs694 crore as of March 2026.

During FY2026, the BMS outlets served around 21.7 Lakh customers and facilitated transactions aggregating to Rs2,825 crore, including Aadhaar-enabled remittances, opening of savings and deposit accounts, utility payments, and other financial services.

6.5 CSR Program

BFILs CSR strategy focuses on inclusive rural development, addressing gaps in livestock healthcare, livelihoods, watershed development, natural resource management, and community health infrastructure through technology-enabled, partnership-driven interventions.

Bharat Sanjeevani

Bharat Sanjeevani is BFILs flagship initiative delivering doorstep livestock healthcare through a technology-enabled Doctor on Call model integrated with the Emergency Response Centre (ERC) and Mobile Veterinary Units (MVUs), ensuring timely access, improved productivity, and strengthened livelihoods.

The program is implemented in collaboration with Departments of Animal Husbandry in Himachal Pradesh, Karnataka, Maharashtra, Madhya Pradesh, Rajasthan, and Tripura. Simultaneously, a dairy-sector-focused partnership was formed with milk federations in Jharkhand, Tamil Nadu, and Uttar Pradesh, and independently in Telangana.

Cow Sanctuary Program

The Cow Sanctuary Program focuses on improving animal health and strengthening institutional capacity in cow shelters across Madhya Pradesh and Uttar Pradesh through veterinary care, fodder development, and capacity building of shelter operators.

As part of the Cow Sanctuary initiative, BFIL introduced Embryo Transfer Technology (ETT) in Uttar Pradesh in collaboration with the National Dairy Development Board (NDDB) to enhance cattle genetics and dairy productivity. Embryo Transfer Technology (ETT) is an advanced reproductive technique in which embryos from a genetically superior cow (donor) are collected and transferred to other cows (recipients/surrogates) to accelerate genetic improvement in cattle and enhance dairy productivity. To date, 165 embryo transfers have resulted in 15 confirmed pregnancies and 4 calves born, showing encouraging early outcomes. The nations first diagnostic laboratory further supports timely disease detection through blood smear and fecal testing for sanctuary cattle and nearby communities.

6.6 Key Innovation: Digital Enablement through Bharat Sanjeevani

1962 WhatsApp Chatbot under Bharat Sanjeevani Rajasthan

BFIL introduced the 1962 WhatsApp Chatbot (24/7) under Bharat Sanjeevani Rajasthan to enhance farmer engagement and service accessibility through an Artificial Intelligence-driven digital platform. The solution enables farmers to access real-time livestock healthcare support, track service requests, receive information on government schemes, and connect with veterinary doctors via video teleconsultation.

Technology-Enabled Doorstep Artificial Insemination Model of Bharat Sanjeevani Karnataka

Under Bharat Sanjeevani Karnataka, BFIL implemented a technology-enabled doorstep Artificial Insemination (AI) model, anchored by the Artificial Insemination Service Response Centre (AISRC) and a digital dispatch system, enabling real-time, accessible veterinary services for rural farmers.

Bharat Sanjeevani 2.0 - NRLM

Bharat Sanjeevani 2.0 in collaboration with the Ministry of Rural Development, Government of India is a large-scale livestock- based livelihood initiative implemented under the Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY- NRLM). The program addresses structural gaps in the livestock

Awards and Recognition

During FY2026, BFILs CSR initiatives received several prestigious recognitions:

- First International Recognition: International Dairy Federation World Dairy Summit 2025 Award (Santiago, Chile) under the category Sustainable Farming Practices: Innovation in Animal Care, for Bharat Sanjeevani. The International Dairy Federation (IDF) is a global organisation dedicated to promoting the dairy sectors interests and enhancing international cooperation among dairy stakeholders. Founded in 1903 and headquartered in Brussels, Belgium, the IDF operates as a non-governmental organisation that brings together dairy producers, processors, and various stakeholders from around the world. It represents 2/3 of global milk production and provides a permanent source of authoritative scientific and technical information relevant to the dairy sector.

- Distinguished Leadership Honour for Innovation in CSR at the Times Foundation - National CSR Summit for Bharat Sanjeevani Program. ecosystem—such as limited veterinary access, low productivity, fragmented value chains, and weak institutional frameworks— through a comprehensive value-chain approach integrating livelihood enhancement for SHG members, capacity building, women-led enterprise promotion, market linkages, and technology-enabled monitoring.

- Shashakt Award for Outstanding Livelihood and Skilling Initiative at the BeVocal Summit 2025 for Bharat Sanjeevani Program.

- CSR Excellence in Healthcare at FKCCI India CSR & Sustainability Conference & Awards 2025 for Bharat PRAGAT Healthcare.

7. WHOLESALE BANKING GROUP

In FY2026, the Bank undertook a comprehensive strategic realignment of its Wholesale Banking Group (WBG) to sharpen execution, enhance accountability, and build deeper domain capabilities. The reorganisation transitioned WBG towards a more granular, domain-led structure while retaining the strength of a fully integrated wholesale banking model. This calibrated shift was driven by evolving client expectations, increasing complexity in business environments, and the Banks long-term aspiration to consolidate its position as a trusted, full-service financial partner across the wholesale ecosystem.

The Wholesale Banking Group delivers a broad, end-to-end suite of integrated financial solutions designed to support clients across their entire business lifecycle. Its offerings encompass working capital finance, supply chain finance, trade finance, and comprehensive cash management solutions, alongside capex and project financing, strategic advisory and structured financing, capital markets and global markets solutions, as well as a wide spectrum of cross-bank products and services. This integrated approach enables seamless solution delivery, deeper client engagement, and enhanced wallet share through coordinated, multi-product coverage.

FY2026 marked a phase of gradual recovery for Corporate India, underpinned by resilient domestic demand and sustained public capital expenditure, despite continued headwinds from global geopolitical developments, elevated input costs, and pressure on export-oriented sectors. Operating in this environment, WBG remained focused on franchise granularisation and calibrated consolidation of large corporate exposures, with a clear emphasis on improving risk-adjusted returns and optimising capital deployment. As of March 31, 2026, the Banks wholesale book stood at Rs1,08,525 crore. The franchise continued to deliver on its strategic priorities while further strengthening portfolio quality and balance sheet resilience.

The wholesale portfolio remains predominantly anchored in higher rated relationships, with risk density consistently maintained well within the approved risk appetite. As of end- FY2026, customers rated A and above accounted for 80%+ of the wholesale portfolio, while asset quality remained healthy and stable. To deliver sharper client engagement across the wholesale franchise, WBG operates through clearly defined primary verticals, supported by specialised domain and product overlays.

7.1 Corporate Banking Group

The Corporate Banking Group anchors the Banks engagement with large corporates and diversified conglomerates with annual turnover exceeding Rs1,500 crore, catering to clients with complex, multi-sector and multi-geography operating footprints. The Group follows a relationship-led and solution- oriented coverage model, integrating credit, transaction banking, treasury, capital markets and advisory capabilities to address consolidated group-level requirements. The group focuses on delivering bespoke financing solutions across working capital, structured credit, consortium, and capex financing, alongside advanced cash management, trade finance, risk management and global markets offerings. A key strategic priority remains deepening ecosystem penetration across upstream, downstream wallets, supply chain finance and broader group engagements.

7.2 Mid-Market Group

The Mid-Market Group caters to enterprises with annual turnover between Rs500 crore and Rs1,500 crore and represents a key growth engine for the Bank. The segment follows a relationship-led operating model, with strong emphasis on portfolio granularisation and liability-first engagement. The focus remains on supporting clients through their growth journey by offering customised working capital solutions, term finance, trade and transaction banking products, while progressively deepening wallet share. With sharper segmentation, enhanced coverage and disciplined underwriting, the Mid-Market franchise continues to deliver balanced growth, improving client profitability and long-term relationship longevity.

7.3 Institutional and Government Banking Group

This vertical serves a wide and growing institutional and government ecosystem, encompassing banks, NBFCs, insurance companies, mutual funds, capital market participants, financial sponsors, fintech entities, and multilateral agencies, as well as central and state governments, PSUs, and other statutory bodies. It plays a pivotal role in scaling the Banks universal banking franchise by deepening long-term institutional partnerships, expanding transaction-led and flow-based business, and strengthening high-quality, stable liability relationships— thereby enhancing fee income, balance-sheet efficiency, and ecosystem participation.

Public Sector Group

The Public Sector Group maintains deep and long-standing relationships with PSUs, including Maharatnas, Navratnas, and Mini Ratnas, supported by a dedicated engagement model. While growth in this segment is pursued in a highly competitive environment, PSU relationships continue to provide stable asset quality and significant operating balances. The Group delivers customised solutions across trade finance, foreign exchange, cash management and digital banking, alongside asset-side products and targeted retail offerings for PSU employees, reinforcing the Banks position as a trusted PSU banking partner.

Government Banking Group

IndusInd Banks Government Banking franchise is built around a solutions-led engagement model, anchored in Cash Management Services (CMS) and digital fund flow platforms supporting Central and State Governments, autonomous bodies, agencies and urban local bodies. The Bank has strengthened its position as a transaction partner by enabling end-to-end collection and payment solutions, integrating closely with government systems such as Public Financial Management System (PFMS) and State Integrated Financial Management System (IFMS). Leveraging its branch network and technology-enabled delivery capabilities, the Government Banking business continues to scale participation in public expenditure flows, infrastructure projects and agency mandates, positioning the Bank for sustainable, annuity-like growth in a progressively digitised government ecosystem.

Financial Services and Financial Institution Group

The Financial Services and Financial Institution Group enables engagement across the broader financial ecosystem—including Non-Banking Financial Companies (NBFCs), Housing Finance Companies (HFCs), insurance companies, mutual funds, fintechs and banks—backed by strong credit discipline and domain expertise. The group plays a critical role in transaction banking, correspondent banking, liquidity mobilisation and balance-sheet optimisation, while adhering strictly to domestic and international regulatory and compliance standards.

Financial Services

The unit serves as a key enabler within the financial services ecosystem, delivering a comprehensive suite of products and solutions to a diverse client base that includes NBFCs, housing finance companies, insurance companies, mutual funds, capital market participants, and public financial institutions. It has built deep and enduring relationships with leading industry players, supported by prudent risk selection and strong credit discipline, with a significant proportion of its portfolio rated A and above (internal rating). The unit has also established a strong transaction banking franchise, emerging as a preferred partner for cash management and escrow services among large, well-rated NBFCs.

The unit has proactively responded to the rapid evolution of the financial landscape by expanding engagement with fintechs and other emerging financial service providers. Through partnerships with well-capitalised and established fintech platforms, it supports clients across their cash management and transaction lifecycle, enabling efficient onboarding, operational scalability, and flow-based engagement. This focus on new-age business models, combined with strong execution capabilities, positions the unit to capture emerging opportunities while building sustainable, fee-accretive, and high-quality institutional partnerships.

Financial Institution Group

The Financial Institution Group (FIG) oversees and manages relationships with banks and a wide range of financial intermediaries across global financial markets. The unit engages with a diverse universe of institutions, including domestic and international banks, development financial institutions (DFIs), export credit agencies (ECAs), and multilateral financial institutions (MFIs). FIG also administers and supervises the Banks correspondent banking network, encompassing Nostro and Vostro relationships and RMA arrangements with counterparties worldwide, and plays an important role in the formulation and ongoing management of the Banks correspondent banking and risk policies.

Over the years, FIG has evolved into a specialised vertical with a multidimensional mandate spanning business origination and facilitation, policy formulation, risk oversight and balance-sheet support, in addition to its core role as channel manager for the Banks correspondent banking franchise. Despite headwinds in the global trade and payments landscape arising from geopolitical tensions and volatility in international financial markets, the unit delivered resilient performance during the year under review. FIG supported the Bank in providing efficient and uninterrupted correspondent banking services to clients, while also contributing positively to both the top and bottom line through the development of a profitable and high-quality financial institutions portfolio.

7.4 Real Estate

The unit offers a comprehensive suite of specialised financing solutions for commercial and residential real estate and Warehousing/Logistics projects, with strong execution capabilities in construction finance and lease rental discounting. These offerings are structured to efficiently address developers cash flow and capital requirements across the project lifecycle, enabling timely value realisation and liquidity optimisation while efficiently managing project profitability. The unit also plays a significant role in the Real Estate Investment Trust (REIT) ecosystem by providing advisory and syndication support, assisting clients with asset monetisation, structuring solutions, and capital-raising initiatives.

Key capabilities include Construction finance for Residential, Commercial and Warehouse/SEZ/FTZE, Industrial Parks, Data Centres, Inventory funding for near-completion residential projects, Lease Rental Discounting for Leased Commercial and Warehousing assets, and Loan against Property for completed Commercial assets. These, along with the gamut of Banking products like RERA-compliant escrow accounts, CMS/ Remittances and other trade products, Routing of Forex flows (inward & outward), non-fund limits (LC/BG), Salary accounts, and Term deposits, make the unit an end-to-end solution provider to the Banks clients.

A key differentiator of the unit is its rigorous, micromarket-driven underwriting framework, which enables precise assessment of geography-specific demand-supply dynamics, project viability, and execution risks. This granular, data-ledapproach supports well-diversified portfolio construction, strengthens risk mitigation and ensures resilience across market cycles. Backed by strong sector expertise and disciplined execution, the unit continues to build durable client partnerships while driving sustainable and risk-adjusted growth in the real estate portfolio.

7.5 Gems and Jewellery

The Gems and Jewellery sector remains a critical contributor to Indias export economy and plays a significant role in employment generation and Micro, Small, and Medium Enterprises (MSME) development. As a key focus area within Indias growth agenda, the sector continues to benefit from export-led demand, value-chain expansion, and increasing formalisation. The Banks Gems and Jewellery unit represents one of its flagship domain leadership verticals and is among the leading financiers of this sector in India and globally.

Over the years, the unit has evolved from a predominantly mid-stream financier of polished diamond manufacturers into a comprehensive value-chain partner. It now offers tailored financing solutions across rough diamond trading, polished diamond distribution, jewellery manufacturing and distribution, domestic retail jewellery, and emerging segments such as lab-grown diamonds. In addition to operations within the domestic tariff area, the unit has successfully expanded its international engagement through GIFT City, supporting clients with presence across key global hubs including Hong Kong, the UAE, Belgium, the USA, and Luxembourg.

8. SME BUSINESS - WHOLESALE

The Banks Small and Medium-Sized Enterprises (SME) business spans the Retail and Wholesale Banking Groups, with SME units forming a critical pillar of growth within Wholesale Banking. In FY2026, the Bank undertook a realignment of its SME coverage structure to better align with evolving customer requirements and improve execution efficiency. The SME unit now operates across multiple verticals, structured around customer type and product needs, enabling sharper focus and more relevant engagement.

As part of this realignment, SME customers with annual turnover above Rs50 crore have been brought under the Wholesale Banking coverage structure. In addition, Corporate Agri and Supply Chain verticals continue to cater to niche segments within the SME ecosystem, addressing sector-specific requirements and end-to-end value chain financing opportunities.

The customer remains central to the Banks SME strategy. To deliver a more holistic and seamless experience, the Bank has consolidated its SME coverage and aligned it closely with branch networks to enable One Bank, One Customer coverage. Dedicated MSME Hubs across the country now function as one-stop solutions, offering MSME customers comprehensive banking and financing services under a single, integrated framework.

A focused push in the SME and MSME segment also enhances the Banks contribution to Priority Sector Lending (PSL). With the Governments increasing emphasis on ease of doing business for MSMEs, the Bank expects healthy and sustainable growth in this portfolio over the medium term.

8.1 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 33 major different commodities, the unit has established a robust foothold in core agriculture- based markets.

The unit leads in commodity funding through its flagship Pledge Finance product and is increasingly focusing on mid-sized food and agri corporates, particularly in dairy and edible oils. To strengthen value chain financing, 7-10 agri clusters have been identified for dedicated coverage and loan processing through the branch network. This initiative aligns with the Banks strategic priority to enhance its Priority Sector Lending (PSL) performance.

Additionally, the Bank is exploring new growth avenues through corporate-linked value chain, and Farmer Producer Organisation-backed funding models to further ramp up the corporate agri book.

8.2 Supply Chain Finance (SCF)

This unit strategically supports the Banks agenda to deepen portfolio granularity by offering comprehensive financing solutions, including channel finance and vendor finance, tailored to meet the needs of dealers and vendors across diverse industries. Key sectors served include automotive and automotive 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 2,000 dealers and 3,000 suppliers through a range of comprehensive product structures.

The SCF portfolio 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 won 8 awards for Best Supply Chain Solution at the Asset Triple A Treasurise Awards 2025—one for each distinct solution designed for our clients across industries. This marks the 7th consecutive year of being honoured for delivering innovative and high-impact working capital solutions that power Indias real economy. Our supply chain franchise was also awarded Certificate of Excellence for Digital Transformation and Excellence in Supply Chain in the 4th Edition of the BW Supply Chain Management Leadership Awards 2025.

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.

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:

- Creating an efficient and profitable digital business through marketing of the Banks digital platforms and partnerships

- Drive superior customer engagement and experience

- Drive cost-efficiency and productivity through zero operations design principles

IndusInd 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 capabilities and marketing platforms to drive platform marketing, funnel management and conversions. The lending platforms are enabled with real-time decision algorithms that leverage advanced analytics and machine learning.

The direct digital business model of the Bank scaled significantly in the last three years, with the digitally acquired liabilities balance sheet growing at a CAGR of 21% and digitally acquired assets balance sheet growing at 117% over the three-year period. In FY2026 alone, digitally acquired assets grew 19% y-o-y. The Bank also acquired close to 1,85,000 new credit card relationships through digital channels and partnerships in FY2026.

The digital business model emphasises efficiency, with customer acquisition costs for digitally acquired clients significantly lower than those acquired offline. The digital marketing team focuses on multiple aspects including performance marketing, content marketing, and awareness marketing.

To enable quality, stability, and performance at scale, the Digital function has undertaken a focused strategic shift towards enhancing its existing delivery structure, based on two key tenets:

- Automation-embedded: Increase adoption of automation across the development and testing lifecycle to reduce manual dependency, increase delivery quality at scale, and improve time-to-market.

- Audit-aligned process standardisation: Establish robust, well-defined processes aligned to audit and compliance requirements, ensuring end-to-end traceability, documentation, and governance.

9.1 Scale-up of INDIE as a Platform- A Revolutionary Way to Bank

Launched in October 2023 and fully rolled out in FY2026, INDIE represents an innovative and transformative digital banking proposition. The platform is designed to redefine personal finance by transitioning from a traditional product-led approach to a customer-centric operating model, delivering best-in-class capabilities across payments, lending, wealth management, deposits, rewards/loyalty, and family banking. Anchored on the core pillars of hyper-personalisation, innovation, trust, and security, INDIE offers a differentiated suite of features, including:

1. Advanced payment capabilities with smart recurring setups and proactive reminders

2. Flexible Line of Credit offering seamless and on-demand access to funds

3. Personalised and transparent loyalty program designed to enhance customer engagement

4. Enhanced security architecture, including virtual disposable cards, numberless cards, and super-OTP for low network scenarios

5. Simplified and intuitive wealth management solutions for better financial planning

6. Unified, single-view dashboard enabling customers (domestic and NRI) to manage all banking relationships— across loans, wealth, cards, and deposits—on one platform

During the year, with the sunset of the IndusMobile banking app in December 2025, the Bank completed the migration of customers to the upgraded INDIE platform-marking a significant step in its digital transformation journey towards a unified, future-ready, and customer-centric experience.

As of March 2026, the INDIE app has a registered user base of 4.8 million, with a robust Monthly Active User (MAU) rate of 58%, reflecting strong customer adoption and sustained engagement. Over the past year, several key feature enhancements have been rolled out to further strengthen the platforms capabilities and customer experience, some of the key features are as follows:

1. User Registration and Access: Broadened user access by enabling standalone credit card customers, joint account holders and NR customers for a seamless signup experience.

2. Customer experience Improvements: Added UI/UX refinements and richer account management tools resulting in a smoother user experience.

The scale-up of the registrations on the INDIE platform has enabled larger-scale brand campaigns like IndusInd Banks festive campaign, #GiveMoreGetMore, a celebration of generosity, financial empowerment, and the joy of giving. Anchored by a heartfelt theme Account Bada Toh Dil Bada (When your account grows, so does your ability to fulfil the dreams of your loved ones), the campaign inspires customers to make their loved ones dreams come true and spread happiness this festive season. The campaign encouraged customers to celebrate the festive season while IndusInd Bank takes care of their financial needs via Personal Loan.

Today, IndusInd Banks upgraded app INDIE is ranked among the top banking apps in the country with Play Store Rating of 4.6 and an App Store Rating of 4.7. This underscores INDIEs strong market positioning, reflecting high customer satisfaction, superior user experience, and the Banks continued focus on delivering best-in-class digital banking solutions.

9.2 Scale-up of INDIE for Business-All in One Business Banking App for MSMEs

Launched in December, 2025, INDIE for Business scaled to 0.6 million registered customers—emerging as a primary MSME banking platform of the Bank.

IndusInd Bank continues to scale its MSME digital ecosystem through INDIE for Business, a comprehensive mobile- first platform designed to simplify, digitise, and streamline end-to-end business banking.

During FY2026, the platform witnessed strong growth in adoption, engagement, and transaction depth, alongside continued improvements in customer experience, service capability, and platform stability.

With INDIE for Business, clients can:

- Register instantly through a seamless 100% digital journey

- Access a 360-degree consolidated view across multiple entities and relationships

- Switch seamlessly across businesses/accounts for unified control

- Execute bulk payments for salaries and vendors

- Make tax and statutory payments through simplified flows

- Complete bill payments and recurring obligations efficiently

- Drive digital collections via QR, POS, payment links, and ledger solutions

- Raise and track service requests digitally, improving turnaround times

The platform has seen significant acceleration in transaction volumes across payments categories, indicating increasing adoption as a primary operating account for MSMEs. Growth in digital servicing through in-app service requests has further strengthened customer experience while reducing dependency on physical channels. The Bank remains focused on expanding capabilities, including cross-border payments, while continuing to enhance platform stability, service experience, and MSME relevance. The app has a rating of 4.6 on the App Store and 4.6 on the Play Store.

9.3 Migration of Customers to New Net Banking Platform

During FY2026, the Bank successfully undertook a large-scale transformation of its Internet Banking platform, migrating active clients from the legacy IndusNet system to a modern, cloud- based infrastructure. This transition was designed to enhance customer experience, strengthen security and compliance, and enable scalable, straight-through digital processing.

The new platform introduces a unified and intuitive user experience, including simplified registration and login journeys, a consolidated dashboard, and improved navigation aligned with customer feedback. Key enhancements include integrated wealth management, seamless bill payments, digital loan servicing, credit card integration, and a feature-rich service portal.

The platform also incorporates robust regulatory and security controls such as role-based access, maker-checker validations for corporates, compliant transaction frameworks, and advanced authentication mechanisms, ensuring full adherence to regulatory guidelines.

Migration was executed through a phased, risk-based approach, prioritising active client segments and progressively enabling required features. By March 2026, most of the individual clients holding accounts and credit cards, across domestic, NRI, and other customer segments had been successfully migrated, with the remaining clients scheduled for completion in a controlled manner.

Overall, this transformation marks a significant milestone in the Banks digital evolution, delivering a secure, scalable, and customer-centric Internet Banking ecosystem.

9.4 Launch of new GIFT City Retail Net Banking

In addition to the GIFT CITY mobile application launched last year, IndusInd Bank has also developed a comprehensive Net Banking platform for GIFT City IBU Retail customers, ensuring a fully integrated digital banking ecosystem. The platform is designed to cater to the diverse and evolving needs of global clients, offering secure, efficient, and easy-to-use online banking services accessible anytime, anywhere.

The key features of the GIFT City IBU Net Banking platform include:

Digital Access and Registration: Customers can conveniently access their accounts online with a secure login process, enabling quick registration and easy account activation.

Comprehensive Account Management: View account balances, transaction history, and detailed statements, with options to download and manage financial records effortlessly.

Global Fund Transfers: Customers can access Gift City accounts across multiple currencies and execute outward and inward remittances efficiently with robust cross-border payment capabilities. Customers can also add/manage beneficiaries and schedule recurring transactions.

Deposit and Investment Management: Open, manage, and renew term deposits with real-time interest rate visibility and flexible maturity instructions.

Advanced Security Framework: Equipped with multi-layer authentication including OTP, password protection, and secure encryption protocols to ensure safe and reliable transactions.

User-Friendly Dashboard: An intuitive and responsive interface offering a seamless user experience with easy navigation across various banking services.

Self-Service Capabilities: Empowering customers with tools to manage profiles, update preferences, and handle transactions independently without the need for physical branch interaction.

The Bank is working closely with IFSCA to bring new offerings to the market to continue catering to the growing needs of Gift City users.

9.5 Indus Easy Credit: Accelerating Business Transformation

Indus Easy Credit, the Banks flagship digital lending platform, continued to accelerate the business transformation agenda by delivering a seamless, end-to-end digital journey across retail loan products—including credit cards, personal loans, unsecured business loans, and working capital loans.

The platform has end-to-end digital disbursement journeys for both existing-to-bank and new-to-bank customers, including capabilities such as account aggregator, advanced risk models, e-sign, e-mandate, and e-stamp. During the year, the pre-approved personal loan journey was migrated to this platform, creating a more efficient framework with significantly enhanced risk and control checks, and strengthening overall scalability and governance. Additional features such as top-up loan functionality and readily consumable APIs for lending partners further enriched the platforms ecosystem. The above efforts were integral to the Bank maintaining momentum across asset products sourcing in FY2026.

9.6 Digital Partnerships

The Bank is strategically positioning itself as a preferred partner for fintech companies and broader ecosystem players by adopting a technology-led operating model that emphasises scalability, with over 500 APIs currently hosted on its gateway. These APIs enable external partners to integrate efficiently with the Banks systems in a secure, compliant, and standardised manner, ensuring adherence to regulatory requirements while delivering high performance and reliability.

Recognising the growing importance of partnerships in transforming the financial services landscape, the Bank has proactively expanded its collaboration efforts with a diverse range of external entities. These include fintech companies, digital marketplaces, aggregators, and other ecosystem players, with the objective of enhancing product reach, improving customer acquisition, and driving operational efficiency.

The Bank has already established a strong network of partnerships with leading fintech platforms and digital marketplaces to drive the sourcing and distribution of key retail products, such as credit cards, personal loans, and fixed deposits. As part of this strategy, the Bank has recently gone live with CRED for sourcing co-branded credit cards and maintains active partnerships with major aggregators such as Paisabazaar (for credit cards and personal loans) and BankBazaar (for credit cards). On the liabilities side, the Bank has established tie-ups with prominent platforms such as Airtel Payments Bank and Stable Money to drive deposit sourcing. Additionally, the Bank is in advanced stages of discussions with several other leading ecosystem players to further scale its liabilities franchise.

9.7 WhatsApp Banking

During the year, WhatsApp Banking further strengthened its position as a key digital servicing channel for the Bank, enabling scalable, seamless, and efficient customer engagement across key products and services, catering to nearly 6 million registered users.

The platform continues to offer a comprehensive suite of services through a mix of fully digital journeys within the channel as well as integrated flows across the Banks digital ecosystem. This ensures that customers can conveniently address a wide range of service needs with minimal reliance on assisted channels.

These enhancements have significantly improved customer convenience while streamlining service fulfilment and reducing dependency on traditional service channels.

WhatsApp Banking continues to witness strong customer engagement, with consistent repeat usage reflecting growing customer trust and preference for conversational, on-demand servicing. The platform plays an increasingly important role in resolving customer queries and enabling self-growth service, contributing meaningfully to improved turnaround times and overall service experience.

The Bank is further strengthening its WhatsApp Banking capabilities, with a continued focus on enhancing customer experience, expanding service coverage, and driving deeper adoption of digital self-service channels as part of its broader digital transformation agenda.

9.8 Digital Banking Unit

Since the Government of Indias announcement in FY2023 reaffirming its commitment to making the delivery of financial services accessible to all through Digital Banking Units (DBUs), IndusInd Bank has set up two DBUs in Jalandhar, Punjab, and Chengalpattu, Tamil Nadu.

The DBUs deliver digital banking products and services in a dual mode-via self-service kiosks as well as assisted service. The Key Performance Indicators for the DBUs in FY2026 have been as follows:

Key Performance Parameters	Number
No. of Savings Bank Accounts Opened	433
No. of Term Deposit Accounts Opened	191
Financial Transactions Facilitated	23,390
Non-financial Transactions Supported	1,165
No. of Loans	17
Service Uptime (%)	99.7%

10. GLOBAL MARKETS GROUP

The Global Markets Group (GMG) comprises three main functions: H Asset Liability Management (ALM)

- Trading (Rates, Equities, Foreign Exchange, and Derivatives)

- 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 the 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 and medium-term liquidity requirements of the Bank through appropriate funding avenues involving both Rs and foreign currency.

The Trading Desk transacts across asset classes such as interest rates, equities, foreign exchange, and commodities. It strategises and takes proprietary positions in government bonds, corporate debt, equities, interest rates (Rs 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 and market-access facilitator for client business. The desk is an active market- maker and executes various products across asset classes with established market counterparties and leading corporates.

The Equity Desk takes proprietary positions in primary offerings as well as trades in listed securities.

The Credit Sales Desk is responsible for providing solutions to corporate and institutional clients seeking to access the Debt Capital Markets for raising short-term and long-term funds through various instruments such as Bonds, Non-Convertible Debentures (NCDs), Commercial Papers (CPs), Zero-coupon Bonds (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 and 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 for managing their foreign exchange and interest rate exposures. The Bank enters into these transactions based on strict suitability, appropriateness , and credit criteria. In addition to these Over-the-Counter (OTC) products, the Bank is also a Trading-cum-clearing member of NSE and BSE, which enables the Bank to offer a web-based platform across client segments for hedging their currency exposures in the exchange-traded currency derivatives market. The Financial Markets Sales and Solutions team also offers bullion solutions to clients on a consignment basis.

During the year, GMG continued to actively undertake proprietary and client hedges across foreign exchange, interest rates, derivatives, credit markets, and equity IPOs. The Bank has a presence in offshore markets through the Global Markets Desk at its IBU in GIFT City. Further, the Bank expanded the range of products offered through the IBU as permitted under the new liberalised guidelines issued by 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 systems and trading platforms, the Bank has conducted Business Continuity Plan (BCP) 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 of the Bank. Its product offerings include Cash Management Services (CMS), Trade Services/Trade Finance solutions, and Global Remittance products. These products and services are delivered through various digital banking platforms offered by the Bank through TBG.

Under the CMS offerings, the Bank offers customised and differentiated products to its Corporate and Consumer Banking customers, facilitating their payables and receivables management. The Bank develops these solutions, both in-house as well as by partnering with external technology partners, enabling seamless payments, collections and escrow solutions. The Bank continues to focus on key CMS offerings and has achieved reasonable success in collection solutions on Cash/ Cheque, Remote Cheque Scanning, NACH/e-NACH, Direct Debit, BBPS, Virtual code-based collections, UPI-based one time/recurring collections, and Escrow services. Apart from serving as a sponsor bank for co-operative banks, the Bank continues to be one of the largest sponsor banks handling settlements for non-bank PPI issuers. It provides settlement services across a wide spectrum of products (Visa, Master, RuPay, UPI, IMPS, NFS, NETC, etc.), while also offering API-based services on merchant settlements.

The Bank strengthened its transaction banking franchise through a diversified escrow portfolio spanning PPI, lending, real estate, capital markets, and structured finance, enabling compliance- driven growth and stable fee income. Through its enhanced Escrow backend system for customer and deal management, the Bank delivers regulatory compliance and governance assurance, risk mitigation, fund security, and operational efficiency. Additionally, the Bank offers e-Stamping and e-Signing for agreements under CMS and Escrow services.

Apart from providing bespoke CMS solutions to its corporate clients, the Bank continues to grow its presence in the government/PSU segment as well. The Banks Digital Banking platform is well integrated with Government Payment System, IFMS, e-Tendering solution providers, GeM Portal, and PFMS platforms, thereby enhancing these flows vide CA and SA held with the Bank. One such mandate handled by the Bank was managing the DBT scheme of the Government of Assam for promoting entrepreneurship for skilled workers and women empowerment. Besides, the Bank is one of the two private sector banks to get integrated with Government of Tamil Nadus e-governance portal for handling all DBT schemes of the State.

During the fiscal year, the Bank enabled State Tax collection for the Government of Madhya Pradesh, facilitating the seamless collection of State tax revenues. The Bank also introduced a Bulk Tax payment facility as an enhancement to its existing Direct Tax payment capability, allowing corporates to undertake consolidated Direct Tax payments digitally through the corporate banking channel. This builds on the Banks existing capabilities that enable customers to pay Income Tax and Goods and Services Tax through their IndusInd Bank accounts, both online and through the Banks branch network, as well as Customs Duty, Central Excise, and Service Tax payments through ICEGATE via digital channels. The Bank continues to progress on integrations with additional State Treasuries for the collection of State tax and non-tax receipts.

The Bank offers an all-inclusive range of customised 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 solutions for transactions involving ODI, FDI, Project Office/Branch Office/Liaison Office, being undertaken by

The Bank was among the first banks to go live on IBDICs One Trade platform. One Trade is a +platform created by IBDIC to facilitate digital trade finance solutions. During first cohort, digital document presentation under LCs will be facilitated through the platform. This partnership positions IndusInd Bank as a first mover in trade digitisation, delivering greater efficiency, transparency, and scalability for our clients. It reflects our commitment to innovation and leadership, ensuring we stay ahead in a rapidly evolving trade ecosystem.

The Bank integrated with Invoice Hub, which provides invoice fingerprinting and verification solution. It enables de-duplication of invoices to mitigate the risk of multiple financing of the same invoice across credit-worthy buyers and sellers, while also providing risk alerts and Early Warning System (EWS) triggers.

The Bank offers robust capabilities around custom account statements (including Intraday, Swift formats) which are delivered via email/ SFTP to suit the ERP requirements of the client to give real-time balance updates.

The Bank offers customised solutions for e-Tendering (TenderPro) and land acquisition (Indus e-Gov) clients, in addition to launching a dedicated WhatsApp Banking channel for corporate client servicing.

The IndusCollect platform offers a one-stop payment gateway collection solution covering Debit/Credit Cards, Net Banking, UPI, and Wallets.

The IndusDirect Mobile App has been redesigned to provide a simple and seamless digital banking experience for corporate customers. Built using modern microservices and cloud-ready technology, the App offers a consistent experience across user interfaces. It is secure, scalable, and reliable, helping improve performance, enable quicker updates, and support future growth. its clients. The Bank continues to be one of the significant players in India linked to Cross-Border Remittances, enjoying a significant market share facilitating LRS Outward Remittances from India, apart from being a preferred India Correspondent for Overseas Banks, Exchange Houses, and Money Services Businesses/Money Transfer Operators for their India-bound flows.

The Bank continues to augment its capabilities across digital platforms, both, Web and App-based. The clients embraced the Banks platforms for initiating their Domestic as well as cross-border payments and trade transactions, with an increase in client adoption and transaction volumes across the web portals, mobile apps, H2H, SFTP and API platforms. The digital platforms offer a wide range of functionalities for clients to initiate Individual and Bulk payments, process Payroll, make Tax, EPFO, and ESIC payments, manage Bank Guarantees, issue Letters of Credit (LCs), undertake Inward and Outward Remittances, and process Import and Export collections. The platform also provides a comprehensive view of IDPMS / EDPMS Dashboards as well as allows for regularisation of such transactions. The Bank is amongst the first cohort of banks to go live with digital trade initiatives such as Automated e-Stamping, Digital Document Execution and end-to-end electronic Bank Guarantee Issuance.

The Bank has witnessed impressive growth in its Connected Banking offering, further broadening its partnership with platforms like Tally, Zoho, Marg, etc., bringing ease of payments at the clients doorstep. Furthermore, the Bank has also integrated collections services into these platforms to enable well-rounded client experience, including account updates and reconciliation.

The Bank rolled out online FX rate booking for corporate clients on Indus Direct Trade and Indus Direct Mobile app. With this launch, corporate internet banking users can now book online FX rates for Cash / Tom / SPOT and all tradable currencies online. The platform also enables corporates to select pre-booked rates within the portal if the rates have been booked offline.

12. FINANCIAL RESTRUCTURING AND RECONSTRUCTION GROUP

The Financial Restructuring and Reconstruction Group (FRRG) oversees all operations related to the recovery of non-performing loans and restructuring of corporate loans. The Group also assists in sale of NPAs/stressed accounts for the Bank and monitors security receipts issued during such sales.

The Bank has also actively utilised the Securitisation 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 of corporate cases. Additionally, the Bank is actively utilising other tools provided by the Reserve Bank of India, such as the Prudential Framework for Resolution of Stressed Assets/ Transfer of Loan Exposure/compromise settlement.

13. GENERAL BANKING OPERATIONS

The Bank continues to strengthen its policy framework on Know Your Customer (KYC) in line with regulatory requirements. A simplified KYC procedure has been implemented to promote financial inclusion, enabling individuals from lower-income groups to open accounts with minimal documentation, in accordance with RBI guidelines.

To enhance operational efficiency, the Bank has implemented an advanced workflow and imaging system across key processes, including account opening, term deposit bookings, trade finance transactions, and branch expense processing. This system facilitates real-time processing and seamless movement of transactions from branches to centralised operations units, reducing dependency on physical documentation and improving turnaround times, thereby enhancing operational efficiency and customer service standards.

As part of its digital transformation initiatives, the Bank has enabled digital account opening through a mobile-based platform, supporting end-to-end straight-through processing with online KYC verification. This has resulted in improved turnaround times, enhanced customer convenience, and strengthened control mechanisms.

In line with the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 (as amended), the Bank has adopted electronic KYC documentation. Further, pursuant to RBI guidelines permitting Video-based Customer Identification Process (V-CIP), the Bank has implemented V-CIP to facilitate remote customer onboarding in a secure and compliant manner.

The Bank participates in clearing operations through the Cheque Truncation System (CTS), with 2,690 branches covered under grid clearing, supported by CTS centres in Mumbai, Chennai, and New Delhi. The Bank also processes transactions through the National Automated Clearing House (NACH), including debit and credit transactions, and supports Aadhaar-enabled Payment System (AePS) transactions through National Payments Corporation of India (NPCI). Continuous clearing processes have been implemented in line with NPCI norms.

The Bank has established a Standard Operating Procedure (SOP) for settlement of claims pertaining to deceased depositors, covering deposits and lockers, in alignment with RBI Directions on Settlement of Claims in respect of Deceased Customers of Banks, 2025. The process has been standardised to ensure timely and efficient claim settlement. Relevant details and forms are hosted on the Banks website.

The Bank has formulated a comprehensive Deposit Policy outlining principles, terms, and conditions governing deposit products, along with depositor rights. A Fair Practices Code has also been implemented to ensure transparency and consistency in customer dealings across all branches.

To reinforce customer service standards, the Bank has adopted a Customer Compensation Policy to address losses arising from service deficiencies, in accordance with defined terms. The Bank also publishes a Citizens Charter, providing information on key customer service standards and commitments.

An Unclaimed Deposit Policy has been implemented in line with RBI guidelines, providing a framework for classification of inoperative accounts and management of unclaimed deposits, along with a structured grievance redressal mechanism. In accordance with regulatory requirements, balances in eligible accounts are periodically transferred to the Depositor Education and Awareness Fund (DEAF).

Details of unclaimed deposits transferred to DEAF are disclosed on the Banks website and updated on a monthly basis. A search facility has been provided to enable customers to identify unclaimed deposits using name-based criteria.

The Bank has adopted a Customer Rights Policy and a Customer Protection Policy in line with RBI guidelines. These policies aim to ensure fair treatment, transparency, and protection of customer interests, including mechanisms for addressing complaints related to unauthorised electronic transactions and defining customer liability.

Customer centricity remains a core principle of the Bank. The Bank is committed to fostering a fair and equitable relationship with its customers and ensures non-discriminatory treatment across all customer segments, irrespective of gender, age, religion, caste, literacy, economic status, or physical ability.

The Bank endeavours to provide seamless and efficient service delivery, with due sensitivity to the needs of vulnerable segments. Specific initiatives are undertaken to enhance accessibility without resulting in preferential or discriminatory practices.

To improve accessibility, the Bank has enabled its ATMs with talking features and Braille support, along with ramp facilities at branches and ATMs to support customers with disabilities. Additionally, doorstep banking services are offered to senior citizens and differently-abled customers.

Consumer Operations continued to strengthen operational efficiency, scalability, and process resilience through investments in automation, robotics, AI, and platform modernisation.

Robotic Process Automation (RPA) initiatives across Liabilities Operations, Contact Centre, and Consumer Finance Operations, enhanced processing efficiency, reduced turnaround time, strengthened controls, and enabled near 24/7 operational capabilities. Key interventions included automation of reconciliation processes, rollout of Gen AI based chatbot on Process and Product, Policies, and Gen AI based email management at Contact Centre resulting in streamlined and standardised operations.

Consumer Operations continues to maintain a strong and proactive risk management framework through structured Risk and Control Self-Assessment (RCSA) practices and enhanced Key Risk Indicators (KRIs) across critical processes.

The focus during the year remained on early risk identification, strengthening control effectiveness, ensuring regulatory compliance, and enabling continuous monitoring. Controls were further augmented to address increasing transaction volumes, evolving regulatory expectations, and growing operational complexity.

Digital interventions and process enhancements contributed to improved monitoring, stronger governance, and reduced manual dependencies across key operational areas. Consumer Operations remains committed to further strengthening resilience and control frameworks through continued investments in technology, automation, and process optimisation.

14. CORPORATE AND GLOBAL MARKETS OPERATIONS

14.1 Overview

Corporate and Global Markets Operations (CGMO) plays a critical role in enabling seamless operational delivery across the Banks Corporate and Retail businesses. The function supports a diverse portfolio of services, including Trade Finance, Supply Chain Finance, Cross-Border Remittances, Cash Management, Foreign Exchange, Derivatives, Bullion, Depository Services, Capital Market Operations, and Credit Administration.

During the year, CGMO continued to strengthen operational excellence through focused initiatives in process simplification, digital enablement, automation, and robust risk governance. These efforts led to measurable improvements in service quality, turnaround times, control effectiveness, and customer experience.

In an environment of evolving market dynamics and increasing customer expectations, CGMO remained focused on enhancing productivity, scalability, and operational resilience through technology-led transformation and workflow optimisation. The function also invested in capability building and crossfunctional collaboration, thereby reinforcing a strong and future-ready operational foundation to support the Banks growth agenda.

14.2 Customer Experience

Enhancing customer experience remained a key priority, with continued focus on process simplification, automation, and digital enablement.

During the year, 24/7 WhatsApp-based servicing was introduced for corporate clients, enabling instant access to account statements, balance confirmations, and fixed deposit-related services. This initiative significantly reduced dependency on manual channels and improved turnaround times.

A GenAI-enabled solution was deployed to support customer query handling and response drafting, with embedded validation checks to ensure accuracy and consistency. This has helped improve response quality, streamline communication, and enhance overall customer satisfaction.

These initiatives, along with improved cross-functional coordination and higher adoption of digital channels, contributed to faster query resolution and strengthening of customer engagement metrics, including Net Promoter Score (NPS). CGMO remains committed to building scalable, and customer-centric service capabilities.

14.3 People

People remain at the core of CGMOs transformation journey. During the fiscal year, focused investments were made in strengthening technical, behavioural, and leadership capabilities across teams.

Structured learning interventions aligned to a Skill Matrix framework were implemented across junior and midmanagement roles, enabling deeper product knowledge, stronger process understanding, and enhanced quality orientation. These initiatives have contributed to building an agile, customer-focused, and future-ready workforce.

Employee engagement continued to be a key priority, supported by regular engagement initiatives, leadership interactions, and collaborative forums across locations. Recognition platforms such as the Insta Achiever Awards were leveraged to celebrate employee contributions and reinforce a culture of performance excellence, accountability, and teamwork.

14.4 Capability Enhancement

CGMO continued to strengthen operational efficiency, scalability, and process resilience through investments in automation, robotics, and platform modernisation.

Robotic Process Automation (RPA) initiatives across Capital Market Operations and Cash Management Services enhanced processing efficiency, reduced turnaround time, strengthened controls, and enabled near 24/7 operational capabilities. Key interventions included automation of fund inflow/outflow reporting, vendor billing, and dividend reconciliation processes, resulting in streamlined and standardised operations.

System enhancements also simplified workflows and improved monitoring through advanced reporting capabilities, while reducing manual intervention in processes such as Enhanced Due Diligence (EDD) and AD-II inward remittances. These initiatives have strengthened operational governance and supported CGMOs ongoing digital transformation journey.

14.5 Risk and Control

CGMO continues to maintain a strong and proactive risk management framework through structured Risk and Control Self-Assessment (RCSA) practices and enhanced Key Risk Indicators (KRIs) across critical processes.

The focus during the year remained on early risk identification, strengthening control effectiveness, ensuring regulatory compliance, and enabling continuous monitoring. Controls were further augmented to address increasing transaction volumes, evolving regulatory expectations, and growing operational complexity.

Digital interventions and process enhancements contributed to improved monitoring, stronger governance, and reduced manual dependencies across key operational areas. CGMO remains committed to further strengthening resilience and control frameworks through continued investments in technology, automation, and process optimisation.

14.6 Awards and Recognition

During FY2026, the Bank received several recognitions for operational excellence and innovation:

- Best Innovation in User Experience of the Year at the India Banking Summit 2025 for RPA-led transformation initiatives, recognising the impact of automation in enhancing efficiency and reducing processing exceptions.

- Operational Excellence Award from leading Nostro banks for consistently high Straight-Through Processing (STP) performance in Trade and Remittance Operations.

- Recognition from the National Stock Exchange of India for strong execution capabilities and consistent performance in managing high-volume IPO transactions in the Capital Markets segment.

15. BRANCH NETWORK AND INFRASTRUCTURE

The Bank has established a robust and extensive physical distribution network comprising 3,136 banking outlets and 2,870 ATMs, ensuring a strong presence across all 28 States and seven out of the eight Union Territories in India. This wide network enables the Bank to effectively serve a diverse customer base across urban, semi-urban, and rural geographies.

To support its international banking operations, the Bank operates an International Financial Services Unit (IFSC) Banking Unit (IBU) at the Gujarat International Finance Tec-City (GIFT City). In addition, representative offices in key global financial hubs such as Dubai and Abu Dhabi facilitate international business development and customer engagement.

Further strengthening its premium banking proposition, the Bank has established 19 PIONEER branches across strategic locations, including Mumbai, Pune, Delhi, Gurugram, Chandigarh, Kolkata, Chennai, Bengaluru, Jaipur, Ahmedabad, Noida, Kochi, Surat, and Goa. These branches are designed to offer enhanced, relationship-led banking experiences tailored to affluent and emerging affluent customer segments.

The Bank also operates six Currency Chests, strategically located in Mumbai, Delhi, Chennai, Kolkata, Bengaluru, and Chandigarh, to support efficient currency management and cash distribution across its network.

16. INFORMATION TECHNOLOGY

During FY2026, the Bank made significant strides in advancing its transformation into a technology-led, AI-enabled financial institution. Anchored in a clear strategic vision and guided by the Board and senior leadership, the Information Technology function served as a key enabler of sustained business growth, resilience, and differentiated customer experience. In a rapidly evolving and highly competitive financial environment, the Bank strengthened its commitment to leveraging digital innovation as a core driver of differentiation and long-term value creation.

Throughout the year, the Banks technology strategy remained firmly focused on building scalable, secure, and intelligence- driven digital ecosystems. Key priorities included accelerating the adoption of artificial intelligence and advanced analytics across business processes, driving deeper customer engagement through personalised and intuitive digital journeys, and reinforcing risk management and cybersecurity frameworks. These efforts were complemented by ongoing investments in modernising the Banks core technology infrastructure, enabling greater agility, efficiency, and responsiveness to emerging opportunities and challenges.

The Bank progressed on strengthening its digital identity and customer access frameworks through migration initiatives aligned with evolving digital standards. The Bank also placed strong emphasis on fostering a culture of innovation and continuous improvement, ensuring that technology initiatives are closely aligned with evolving customer expectations and regulatory requirements. By embedding Al-driven insights into decision-making and optimising end-to-end operational workflows, the Bank has enhanced its ability to deliver seamless, future-ready banking services.

These initiatives collectively contributed to enhanced operating efficiency, improved cost optimisation, and scalable growth of digital revenues while collectively strengthening the Banks operational resilience and regulatory readiness.

As a result, the Information Technology function has laid a robust foundation for sustainable, scalable growth. The progress achieved during the year underscores the Banks commitment to harnessing technology as a strategic asset, driving transformation, and delivering consistent value to customers, stakeholders, and the broader financial ecosystem.

During the fiscal year, the Bank progressed its technology agenda across four strategic pillars, contributing to improved operational efficiency, scalable growth, and enhanced cost optimisation across technology-led operations:

- Digital Platforms and Customer Experience

- Payments and Emerging Technologies

- Data, AI, and Analytics

- Resilience, Risk, and Operational Efficiency

Key initiatives undertaken during the year across these pillars are outlined below:

Digital Innovation and Customer Experience

- The INDIE platform continued to evolve as a core digital ecosystem, enabling scalable, cloud-native banking experiences. The launch and expansion of INDIE for Business strengthened the Banks MSME proposition by providing an integrated platform for onboarding, payments, lending, and compliance, thereby enabling end-to-end digital engagement for enterprises in a user-friendly manner.

- The Bank enhanced its transaction processing capabilities by establishing high-throughput, scalable infrastructure capable of handling up to 500 transactions per second, thereby supporting growing transaction volumes and ensuring seamless customer experience.

- The Bank strengthened its digital onboarding capabilities through AI-driven, straight-through processing for current accounts, enabling faster turnaround times, improved compliance, and scalable customer acquisition.

- Digital currency capabilities were advanced through the adoption of innovative frameworks such as the Unspent Transaction Output (UTXO) model within its Central Bank

Digital Currency (CBDC) initiative. The Bank also strengthened its real-time payments infrastructure through the upgrade of its UPI switch to next-generation platforms, improving scalability, resilience, and transaction throughput.

- The Bank continued to invest in next-generation payment capabilities, strengthening its real-time payments infrastructure and expanding into emerging digital payment ecosystems. Key initiatives included enhancements to UPI infrastructure, enablement of National Common Mobility Card (NCMC) capabilities, and advancements in Central Bank Digital Currency (CBDC) frameworks leveraging modern blockchain-based architectures and supporting the broader vision of interoperable, and contactless digital payments.

- The Bank strengthened its data and analytics foundations through the deployment of a Lakehouse-based enterprise data platform, enabling real-time insights, improved regulatory reporting, and more personalised customer experiences. Investments in Artificial Intelligence and Generative AI have positioned the Bank to leverage data as a strategic asset, enabling more informed decision-making and differentiated customer engagement.

- Customer engagement capabilities were further strengthened through enhancements to marketing automation platforms, enabling more targeted, data-driven campaigns and improved customer lifecycle management.

- The Bank continued to invest in enterprise CRM platforms to enable a unified customer view and improve relationship management across retail and corporate segments.

Collectively, these initiatives have strengthened the Banks ability

to scale operations, enhance customer experience, improve risk

management, and build a future-ready technology architecture.

Advances in Data and Analytics

During FY2026, Data and Analytics has continued to evolve as a core strategic capability for the Bank, enabling sharper decisionmaking, deeper customer engagement, employee enablement, and enhanced operational efficiency.

- A key enabler of this transformation has been the development of AI-ready data ecosystems, supported by modern data platforms such as data lakehouses that unify structured and unstructured data into a single, governed environment. This has enabled real-time access to insights, improved data consistency, and seamless scaling of analytics use cases across business functions.

- Building on this foundation, the Bank has invested in creating reusable analytical assets and decisioning capabilities. Interactive dashboards now provide leadership and frontline teams with real-time visibility into business performance, allowing faster and more informed decision-making.

- In parallel, the Bank continues to expand its library of advanced ML models that power business growth initiatives across the customer lifecycle. Today, a suite of more than 50 machine learning models support the assessment of nearly 500,000 loan applications every month, strengthening underwriting consistency, improving portfolio quality and reducing credit decision turnaround times. The Banks ML- powered recommendation engine also helps Relationship Managers identify and deliver more relevant cross-sell and upsell opportunities to millions of customers.

- A flagship initiative in this direction is the Call Planner framework, which empowers Relationship Managers (RMs) with prioritised, insight-led client engagement opportunities. By integrating customer analytics, propensity models, and contextual triggers, the framework enables RMs to connect with customers with relevant personalised recommendations.

- The Bank has also accelerated adoption of Generative AI and automation-led analytics, which are increasingly being used to automate insight generation, reporting, and decision support. These capabilities are reducing manual effort, speeding up turnaround times, and enabling personalisation at scale— transforming how the Bank engages with its customers.

- In the risk and control space, advanced analytics continues to strengthen risk assessment and fraud detection capabilities. Machine learning models process high volumes of transactional and behavioral data in real time, enabling early identification of anomalies, improved credit risk evaluation, and more proactive fraud prevention. The Bank was one of the first to go live with the MuleHunter.ai model developed by the RBI Innovation Hub.

In summary, FY2026 has continued in its journey to embed decisioning frameworks powered by data and analytics enabling the Bank to become more agile, insight-led, and customer-centric.

Transition from Digital to an AI-Driven Enterprise

During FY2026, IndusInd Bank initiated a decisive shift from a digital-led organisation to an AI-driven enterprise, embedding artificial intelligence at the core of its business strategy, operating model, and technology architecture. With the onboarding of Leadership in this domain (Chief Data Officer) and the establishment of an AI Centre of Excellence, the Bank has moved beyond experimentation to systematically scaling

AI across key processes, guided by a structured six-pillar framework covering use-case deployment, capability build-out, technology stack, governance, and enterprise-wide adoption. The Bank has invested in a modern data and AI platform built on a petabyte-scale data lakehouse. Leveraged by the Banks data scientists, business and risk analysts, the platform enables the development and deployment of ML models, AI agents, AI applications and conversational dashboards, creating the foundation for enterprise-scale AI adoption. The focus has been on driving tangible business outcomes—enhancing customer experience, improving operational efficiency, strengthening risk management, and enabling productivity gains across the organisation.

Over the year, the Bank has progressively infused AI into customer engagement, relationship management and operations, with multiple initiatives moving from pilot to live deployment. In parallel, the Bank has invested in building a robust AI-ready data and technology foundation, enabling the development and deployment of advanced models and agentic applications in a secure and governed environment. Equally important has been the emphasis on organisational readiness, with large- scale training programs, widespread adoption of AI tools, and the development of internal AI assistants driving meaningful usage across the workforce. As a result, FY2026 represents a foundational year in IndusInd Banks journey towards becoming an AI-native bank, with clear momentum towards scaling deployment, embedding AI in core decisioning processes, and delivering sustained value through intelligent automation and data-driven insights.

Looking ahead to FY2027, the Bank will focus on accelerating enterprise-wide adoption, scaling high-impact use cases across business lines, strengthening governance and responsible AI frameworks, and driving measurable value realisation through deeper integration of AI into core business and decisioning workflows.

Innovations for Superior Operating Efficiency, Security, and Risk Management

- The Bank strengthened its credit risk monitoring capabilities by enhancing its enterprise early warning framework, enabling proactive identification of risk signals and more data-driven decision-making across the corporate lending portfolio.

- Enterprise-wide data protection capabilities were strengthened through the implementation of advanced PII masking solutions, enhancing data privacy, regulatory compliance, and secure handling of sensitive customer information.

- The Bank enhanced its fraud risk management capabilities through advanced real-time monitoring, behavioural analytics, and machine learning models that monitor transactions across millions of customer accounts every hour, strengthening fraud detection and significantly improving the detection of credit card fraud.

- The Bank continued to optimise its infrastructure strategy through selective platform migrations, enhancing control, resilience, and alignment with regulatory expectations.

- The Bank undertook a comprehensive Procure-to-Pay transformation, establishing an end-to-end digital spend management capability spanning budget initiation, procurement, invoicing, and vendor payments. This enabled enhanced financial control, real-time visibility into enterprise spends, improved governance, and strengthened auditability across procurement operations.

- The Bank further undertook loan platform consolidation for improved transparency, efficiency, and governance across operations. Select enterprise platforms were further migrated from cloud to on-premises environments to enhance control, optimise costs, and align with regulatory expectations.

- Technology operations were strengthened through modernisation of IT service management and observability capabilities, enabling improved system visibility, faster incident resolution, and enhanced operational control.

Collectively, these initiatives strengthened the Banks resilience, enhanced risk management capabilities, and reinforced regulatory compliance.

Technology Awards

The Banks technology initiatives received widespread recognition across leading industry forums, highlighting its pioneering efforts and successful translation of innovative concepts into impactful, large-scale deployments.

- IBA Banking Technology Awards

IndusInd Bank was honoured with four awards at the annual IBA awards, showcasing its versatile strength across key technological domains and reaffirming the Banks position at the forefront of banking innovation, delivering a superior, secure, and future-ready banking experience.

- Infosys Finacle Innovations Award

Induslnd Bank was awarded the Corporate Banking Innovation Award for Scaling Transaction Throughput for Corporate Banking in Finacle. It is a testament to the Banks relentless focus on purposeful innovation and leadership in advancing the future of banking.

- Finnoviti Awards

IndusInd Banks INDIE for Business has been awarded Finnoviti 2025 Award in the category of Digital Platform for Business Banking. This recognition reflects our commitment to delivering innovative and customer-centric digital banking solutions.

Looking ahead, the Bank will continue to build on its strong technology foundation by deepening its investments in Artificial Intelligence, data platforms, and cloud-native architecture.

The focus will be on further enhancing digital ecosystems, expanding partnerships, and delivering increasingly personalised and seamless customer experiences. At the same time, the Bank will continue to strengthen its cybersecurity posture and resilience frameworks to support sustainable growth.

With a clear strategic direction and continued emphasis on innovation, the Bank is strongly positioned to leverage technology as a core driver of business transformation in the years ahead.

17. HUMAN RESOURCES

Overview

IndusInd Banks Human Resources philosophy is anchored in fostering an inclusive, empowering, and performance-driven culture, enabling employees to contribute meaningfully to the Banks growth journey. The Bank emphasises a collaborative, learning-oriented environment that promotes innovation, customer-centricity, continuous capability building, and a strong sense of belonging. Key focus areas during the fiscal year included leadership development, strengthening internal talent pipelines, employee engagement, and promoting performance-driven career progression. The Bank also advanced its digital transformation by integrating technology and AI into people practices, enabling seamless and responsive employee experience.

A culture of employee care and well-being remains integral to the employee policies of the Bank. The emphasis has been on efforts to promote work-life balance and enhance employee satisfaction. The Bank has also progressed in advancing diversity and inclusion quotient, fostering a representative workforce and a diverse work environment.

Employee Headcount

IndusInd Bank remains committed to being an equal opportunity employer. Through a well-calibrated talent acquisition strategy leveraging multiple sourcing channels and internal mobility, the Bank continues to attract high-quality talent aligned with evolving business needs.

As of March 31, 2026, the Banks workforce stood at 46,694 employees, supporting business expansion, strengthening frontline capabilities, and fulfilling critical roles. This growth is aligned with the scaling of branch and digital operations, enabling the Bank to meet customer needs and capitalise on emerging opportunities, building a future-ready organisation.

Diversified Hiring Channels

The Bank continues to strengthen its talent acquisition approach through a multi-channel strategy leveraging employee referrals, job portals, recruitment partners, campus hiring, and social media platforms such as LinkedIn. Digital platforms further strengthen employer brand visibility and position the Bank as a preferred destination for both experienced professionals and emerging talent.

Structured campus-to-corporate programs further build sustainable talent pipelines aligned with long-term growth strategy. The Bank also leverages innovative models such as Hire-Train-Deploy in collaboration with industry and academic partners to strengthen frontline sales capabilities and accelerate deployment of job-ready talent.

Robust Succession Planning

The Bank maintains a forward-looking succession planning framework to ensure leadership continuity and organisational stability. Internal talent development remains a key focus, with high-potential employees prepared for leadership roles through mentoring, structured developmental interventions, and experiential learning. This is complemented by selective external hiring to bring in fresh perspectives and domain expertise, resulting in a balanced and resilient leadership pipeline aligned with strategic priorities. In FY2026, the Bank onboarded highly competent professionals to assume senior leadership positions.

Focus on Learning and Development

The Bank fosters a strong culture of continuous learning and capability building; its learning ecosystem blends digital platforms with virtual instructor-led sessions to create engaging learning journeys tailored to roles and career stages. Learning interventions incorporate gamified modules, leadership development programs, domain-specific training, and certifications to build functional and behavioral competencies. A structured learning framework, spanning capability gap identification, targeted learning interventions, and continuous feedback ensures alignment with organisational priorities.

The Bank continues to focus on future-ready skills through Al-led initiatives, including awareness programs on emerging technologies such as Microsoft Copilot, aimed at enhancing digital fluency, productivity, and responsible AI usage.

During FY2026, over 17.82 Lakh learning hours were delivered across areas such as managerial effectiveness, customer engagement, risk management, banking products, operational excellence, and induction. The Indus Evolve platform further enhances accessibility and scale, enabling anytime, anywhere learning.

Performance Management

The Bank operates a robust performance management framework aligned with strategic business objectives and anchored in clearly defined KRAs. Performance metrics are calibrated to include business outcomes, compliance, team development, and retention, ensuring clarity and accountability. Continuous feedback mechanisms enable employees to track progress, address challenges, and improve effectiveness. Performance appraisals are directly linked to the achievement of performance objectives, reinforcing a strong pay-for-performance culture. This transparent approach drives accountability, productivity, and a high-performance culture across the Bank.

Attracting, Rewarding, and Retaining Talent

The Bank adopts a performance-driven approach to attract, reward, and retain talent, recognising that a high-performing workforce is critical to business success. Its compensation philosophy is anchored in a pay-for-performance principle,

supported by role criticality and market alignment. Employees are offered a balanced mix of fixed and variable pay, along with long-term incentives such as Employee Stock Option Plans (ESOPs), aligned to new wage code principles.

The Bank emphasises holistic retention strategies, including career development, internal mobility, job rotation, and a culture of empowerment, supported by initiatives promoting work-life balance and well-being. All practices are governed by strong compliance with regulatory and governance framework ensuring transparency and fairness. Together, these efforts strengthen engagement, retain critical talent, and build a resilient workforce aligned with long-term growth.

Employee Connect and Engagement

Employee engagement continues to be a key priority, supported by structured initiatives focused on enhancing communication, well-being, and overall employee experience. During FY2026, employee experience was strengthened through structured lifecycle engagement across onboarding, tenure, statutory support, and post-exit stages, covering over 1.7 Lakh touchpoints.

Confidential listening mechanisms enabled timely identification of concerns and responsive interventions, reinforcing trust and engagement. Leadership engagement is driven through MD and CEO-led quarterly webcasts, communicating strategic priorities and reinforcing performance, compliance, integrity, and discipline, while ensuring alignment with the Banks strategic priorities. Institutionalised platforms such as We Connect and Coffee Connect facilitate dialogue, grievance resolution, recognition, and team cohesion. Celebrations of International Womens Day, regional festivals, and sports and cultural events further promote inclusivity and a strong sense of community.

Long-term contributions are recognised through service milestone awards, including Long Service Awards for over 7,300 employees since August 2022, while the Life Event Assistance Program (LEAP) supports employees across key career stages. Real-time feedback through onboarding calls, experience checkins, service anniversaries, and exit interviews helps further refine people practices and strengthen employee engagement.

Employee Welfare and Digitisation

The Bank remains firmly committed to employee wellbeing through a comprehensive suite of welfare initiatives supporting employees and their families across various life stages. Key benefits include paternity leave, career guidance for employees children, volunteering leave, and policies supporting womens advancement.

During FY2026, the Bank strengthened its employee-centric framework through initiatives such as Indus Cares, You Matter, Paternity Leave, and Dress for Success, while advancing its

Diversity and Inclusion (D&I) agenda through ELEVATE and programs including ROAR, Plus1, and Fempower. Employee well-being remained a core priority, supported by initiatives such as Health Highlights, Mettle Mindset, preventive health camps, and thematic webinars. Digitisation is a way of life at the Bank and key initiatives include digital onboarding, chatbot-enabled query resolution, online staff account opening, career platform, learning management system, and mobile app-driven processes.

Under the We Care framework, initiatives such as enhanced medical insurance cover, term insurance cover for all employees, discontinuation of mandatory bank-wide attendance log-out, free medical check-ups, hybrid work-from-home, and We Listen branch visits have further improved employee trust convenience. The Automated Branch Visit Dashboard further strengthened engagement tracking and reporting accuracy, while 48-hour full and final settlements reinforce responsiveness and employee care.

Together, these employee initiatives reflect the Banks focus on building a resilient, efficient, and future-ready organisation, supported by strong governance, regulatory compliance, and a culture of integrity, trust, and transparency.

18. 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 Securities and Exchange Board of India (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.

19. RISK MANAGEMENT

Effective and proactive management of the risks inherent in the banking business is fundamental to sustainable growth. Banks are exposed to a wide spectrum of risks that require accurate measurement, continuous monitoring, and disciplined management. A robust, Enterprise-wide Risk Management (ERM) framework enables comprehensive identification and measurement of risks and facilitates timely, effective, and forward-looking risk management, while supporting business growth. The ERM framework also contributes to maintaining the quality and stability of earnings by ensuring that the Banks risk appetite remains closely aligned with its strategic objectives.

The Bank has established an integrated Risk Management Department that operates independently of business functions and largely encompasses Credit Risk, Market Risk, Asset-Liability Management (ALM), Operational Risk Management, Business Continuity Management (BCM), Information and Cybersecurity Risk, Outsourcing Risk, and monitoring of Non-Financial Risks. The Banks risk management practices are aligned with leading industry standards and are designed to remain responsive and adaptable to evolving market conditions and a dynamic operating environment.

Credit Risk Management

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

The key objective of Credit Risk Management is to ensure that credit policies and practices remain compliant with the regulatory framework, are executed within the approved risk appetite, and support a prudent balance between risk management and portfolio growth.

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. Retail Credit is governed by robust product programs aided by scorecards for differentiating and assessing borrower risk.

- Credit Portfolio Management Analysis monitors credit quality, portfolio composition, concentration risk, yield versus 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

- Sector reviews are carried out to assess potential risks and stress within such sectors, analyse 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

- Defining and monitoring concentration risk parameters for ensuring portfolio diversification

- Stress Testing of credit portfolios is carried out periodically to assess the portfolios shock-absorbing capacity under multiple stress scenarios and evaluate the impact of potential credit losses on profitability and capital adequacy, thereby enabling the initiation of appropriate risk mitigation measures

- Independent of business and credit, the Corporate Banking Audit Domain within the Internal Audit Department tracks post-disbursement weaknesses emerging in accounts and initiates timely 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.

- Early Warning System (EWS) and Market Intelligence Unit (MIU): The Bank has instituted a robust Early Warning System (EWS) and a dedicated Market Intelligence Unit (MIU) to proactively identify emerging credit and sectoral risks, leveraging insights from market developments, public domain information, and other intelligence to strengthen forward looking risk management. The EWS framework leverages a combination of financial, operational, behavioural, and external indicators to detect early signs of stress across borrower accounts. This is supported by a structured review and escalation mechanism involving the business, credit, and risk, with appropriate oversight by senior management. Complementing this, the Market Intelligence Unit provides timely and actionable insights derived from the analysis of public domain information and through other intelligence sources. These insights support credit appraisal, portfolio monitoring, and strategic decision making, while reinforcing the effectiveness of the EWS framework. Together, the EWS and MIU enhance the Banks risk governance architecture, enabling timely interventions, prudent risk appetite management, and sustainable long term growth.

During the fiscal year, the Weighted Average Credit Rating (WACR) of the Corporate Credit Portfolio has remained stable. Asset quality for overall Consumer Finance Division (CFD) has also remained stable. While there were challenges for Microfinance portfolio, the measures undertaken have led to an improvement in portfolio quality. The Bank has always strived to maintain a balanced mix of Corporate and Retail loan books.

The Bank has a wide range of retail products and their variants to have a larger share of the wallet and to meet customers diverse financial needs. Such products are governed by structured product programmes 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.

The Bank has also introduced model-based lending for various retail products to sharpen customer underwriting and selection. These models are further tested and enhanced at periodic intervals. Retail products also have dedicated risk units with specialised skill sets to prevent frauds, risks etc.

Retail portfolios are well diversified across geographies and customer profiles to mitigate concentration risk. Portfolio analysis of retail products is carried out at regular intervals to ensure credit quality, concentration risk, yield versus risk, and business growth.

The Bank carries out the process of model validation on the basis of its Model Risk Management framework. Model validation is a set of processes and activities intended to verify that models are performing as expected, in line with their design objectives and business uses. It involves evaluating and verifying the performance of the models through various statistical and technical analyses, encompassing quantitative and qualitative methods to:

- Provide independent verification of the models outputs and performance to enhance the reliability and robustness of the model

- Thoroughly assess the models accuracy and effectiveness, and ensure compliance with applicable regulatory requirements

- Help identify whether the model is over-fitted or underfitted, which can lead to misleading predictions and unreliable results

- Help to identify any shortcomings or limitations in the model and provide a more unbiased evaluation of its performance

- Identify any potential errors or inconsistencies in the models inputs, assumptions, or calculations

Market Risk Management

Market Risk is the possibility of loss to the Bank arising from changes in market variables, such as interest rates, exchange rates, equity prices, and other 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 a SAS Market Risk Management system, complemented by 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.

Stress Testing - Market Risk

The Bank periodically carries out market risk stress tests to determine the impact of stressed market risk variables and scenarios on the trading portfolio of the Bank. These periodic stress tests are used to detect any emerging issues in Market Risk and help the Bank be better equipped to meet stressed situations.

Detailed portfolio reviews and stress tests are conducted by the Bank to evaluate the potential impact of adverse shifts from a range of internal and regulator prescribed stress scenarios. The results of these stress tests are presented to the Market Risk Management Committee (MRMC), the Risk Management Committee of the Board (RMC), and the Board of Directors. Based on these findings, the guidance and direction for proactive risk management is provided, ensuring the Bank maintains a robust approach to managing potential risks.

Asset-Liability Management

The Banks Asset-Liability Management (ALM) system covers all assets and liabilities m, 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 Funding Ratio, Liquidity Ratios analysis, and behavioural 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-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 sensitivities. 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 further 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 in a cost-effective manner.

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—eachassumed with varying degrees of severity. The results of these stress tests are presented to 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 (CFP) covers monitoring internal and external contingency triggers, categorised them into Yellow, Amber, and Red. It also mentions the available sources of funds to supplement cash flow gaps in the event of stressed scenarios. Additionally, it 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 from

(i) Re-pricing Risk,

(ii) Optionality,

(iii) Basis Risk, and

(iv) Yield Curve Risk.

From an economic value perspective, the Banks policy is to minimise sensitivity to changes in interest rates on assets and liabilities. Interest Rate Risk (IRR) is measured based on the re-pricing behaviour 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 Net Interest Income (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 Banks Operational Risk Management Policy outlines a structured and comprehensive approach to identifying, measuring, monitoring, and managing operational risks, clearly defining the roles and responsibilities of stakeholders across the organisation.

The Bank has established multiple operational risk measurement and monitoring mechanisms, supported by governance through internal committees, including the Operational Risk Management Committee (ORMC), the Fraud Risk Management Committee, and the Business Continuity Management (BCM) Steering Committee. These forums provide oversight and ensure effective implementation of the Operational Risk Management framework.

To enhance resilience and forward-looking risk assessment, the Bank has implemented an Operational Risk Stress Testing framework. covering a range of plausible operational risk scenarios, Stress tests are conducted to assess the potential impact of adverse events on the Banks profitability and capital adequacy.

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

19.1. Systems Risk

The Bank prioritises 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, while proactively ensuring that the Bank safeguards its customers data.

The adoption of the Information Technology Infrastructure Library (ITIL) framework and ISO/IEC 27001 standards by the Bank is indicative of its focus on maintaining industry-leading 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 and manage technology- related risks and ensure compliance, business continuity, security, and privacy by implementing a globally accepted framework.

The Banks data centres, IT, and support functions are certified to the ISO 27001:2022 standard, a globally recognised 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, Cybersecurity Policy, and Cyber Crisis Management Plan in place. These guide the Bank in mitigating the risks from cybersecurity incidents by providing complete coverage for response to various such incidents effectively and efficiently. This further establishes the Banks cybersecurity resilience vision. The information security framework defines consistent approaches across all stages of incident management, including detection, identification, containment, eradication, and recovery from cybersecurity incidents. The Bank has a Board-approved Privacy Policy that guides it in protecting the privacy of its customers confidential information.

The Cybersecurity 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 cybersecurity. Various other departments, divisions, and groups of the Bank assist in implementing information and cybersecurity practices.

IndusInd Bank has a robust and resilient IT network infrastructure comprising servers with a guaranteed 99.98% uptime. Additionally, it has a Disaster Recovery (DR) site and 1Gbps connectivity between the Data Center (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. It has implemented industry-leading security solutions, such as Security Information and Event Management (SIEM), anti-phishing and anti-malware solutions, DDoS protection services, web application firewalls, among others. 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. Furthermore, IndusInd Bank has an ISO 27001:2022-certified captive Security Operations Center (SOC), which works annually to ensure it monitors all security incidents in the Bank infrastructure and correlates events, identifies threats, and supports incident response in real-time.

On a monthly basis, the cybersecurity team reviews and tracks critical security metrics and KRIs based on data received from the respective departments. The data is summarised in a presentation format and shared with senior stakeholders for their visibility.

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 cybersecurity incident insurance. The Bank participates in security drills conducted by IDRBT, and has a crisis management plan in place.

Further, 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 uses Network and Endpoint Data Loss Prevention (DLP) to protect Personally Identifiable Information (PII) and sensitive data by preventing unauthorised data movement and ensuring secure handling.

The Bank also 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. It employs various practices, such as testing, auditing, and scanning, to detect and rectify potential issues, ensuring a secure environment for its operations. further, the Bank is implementing threat-hunting capabilities that verify specific hypotheses related to emerging threat scenarios. It deploys a variety of tools for fine-grained authentication and authorisations to restrict unauthorised 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. It 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.

19.2. 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 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.

Key components of BCP, such as Business Impact Analysis (BIA), BCP Recovery Plan, and BCP Testing are tracked to reinforce effective monitoring and management of Business Continuity.

20. PRIORITY SECTOR LENDING (PSL)

The Bank remains committed to the Reserve Bank of Indias Priority Sector Lending (PSL) framework, which directs credit to critical sectors such as agriculture, Micro, Small and Medium Enterprises (MSMEs), housing, export credit, and weaker sections, thereby promoting inclusive and balanced economic development. Its approach to PSL is embedded within a diversified business model spanning Wholesale, Consumer, Inclusive, and Vehicle Finance verticals, enabling a broad and well-integrated presence across priority sectors.

The Bank supports the agriculture sector through targeted financing across farm, allied, and agri-infrastructure activities. Its offerings, including crop loans, investment credit and tractor financing, are designed to enhance productivity, and strengthen rural livelihoods, particularly for small and marginal farmers.

Further, the Bank continues to strengthen its MSME franchise through streamlined processes, faster turnaround times, and data- driven credit assessment models, including scorecard-based underwriting and automated financial analysis. Supported by a network of 129 specialised MSME branches, it delivers tailored solutions and dedicated service capabilities to enhance credit access and support business growth and employment generation.

Financial inclusion remains a core pillar of the Banks PSL strategy. Through its Inclusive Finance business, the Bank extends small- ticket and livelihood-based lending across underserved and underbanked geographies, enabling individuals and small businesses to access formal credit, support income generation, and build financial resilience. Overall, the Banks approach to PSL reflects a well-balanced and diversified portfolio aligned with its business strategy and regulatory framework.

21. MARKETING AND COMMUNICATIONS

In FY2026, IndusInd Banks Marketing and Communication function played a pivotal role in enhancing the brands visibility, deepening customer engagement, and strengthening loyalty across retail and institutional segments. The Banks strategy was rooted in a customer-centric approach driven by innovative campaigns, strategic partnerships, and performance marketing, all while staying attuned to evolving consumer expectations.

Indus Care -

Indus Care is a unique program designed for senior citizens who aspire to live life to the fullest, combining financial security with exclusive wellness benefits.

The marketing plan focused on building awareness and consideration among senior citizens and their caregivers, while driving account openings. A set of digital films under the campaign Sukoon wali Banking was developed to highlight key offerings such as doorstep banking and dedicated Relationship Managers, supported by synchronised branch collaterals and a social media burst.

The campaign was well received across all popular social media platforms, generating ~9.1 Lakh interactions across platforms. Well known influencers also collaborated generating about 5.6 Mn organic views and 17K engagement.

Indus Startup Banking: Empowering Indias New-Age Founders

In FY2026, Induslnd Bank reinforced its commitment to Indias dynamic startup ecosystem with the launch of Indus Startup Banking a comprehensive, future-ready proposition designed to support ventures from inception to scale.

Tailored to the evolving needs of early-stage businesses, the program offers a 360-degree suite of solutions spanning banking, credit, and beyond-banking services. Key features include a Startup Current Account with a three-year waiver on maintenance charges, zero setup fees on payments and collections, seamless API integrations, and expert-led advisory support, collectively enabling founders to focus on innovation while the Bank streamlines their financial and operational backbone.

Positioning itself as a trusted growth partner, the Bank extends its offering beyond traditional banking through a curated ecosystem of value-added services, including legal, tax, Human Resource Management System (HRMS), and ESOP management support. Backed by strategic collaborations with leading institutions such as DPIIT, Startup India & innovation hubs, IndusInd Bank continues to drive deeper ecosystem integration.

Through Indus StartUp Banking, the Bank aims to catalyse entrepreneurial ambition, empower innovators and contribute meaningfully to shaping Indias next generation of high- growth enterprises.

Professional Golf Tour of India (PGTI) - Official Banking Partnership

IndusInd Bank partnered with the Professional Golf Tour of India (PGTI) as its official banking partner, reinforcing its focus on delivering premium, differentiated experiences to UHNIs and HNIs under the PIONEER banking proposition. The collaboration extended engagement beyond traditional banking through curated, lifestyle-led experiences, strengthening the Banks positioning in the premium lifestyle and sports ecosystem.

As part of the partnership, the Bank supported PGTIs annual calendar of 20 tournaments led by Kapil Dev, President - PGTI, contributing to the visibility and growth of professional golf in India. The tournaments were successfully conducted across multiple locations and witnessed strong participation from professional golfers and showcased high standards of competition throughout the season.

From a customer engagement perspective, the partnership offered exclusive on-ground experiences for PIONEER clients, including participation opportunities, hospitality, and curated interactions at select venues, enabling deeper relationships and enhanced loyalty.

Overall, the association effectively combined sport, lifestyle, and customer engagement, delivering differentiated experiences for premium customers while contributing to the broader sporting ecosystem and strengthening the Banks brand through high- impact engagement.

72 The League - Powered by IndusInd Bank

IndusInd Bank sponsored 72 The League, a premier pro-golf league, driving strong brand visibility, customer engagement, and premium hospitality opportunities. The League delivered strategic on-ground brand presence across all three venues, alongside two Pro-Am Invitationals hosted at Jaypee Greens and Qutab Golf Course with active participation from Bank invitees. Exclusive Masterclass sessions with Brand Ambassador Arjun Atwal further enriched the experience.

The felicitation ceremony for Season 1 was graced by Mr. Kapil Dev, President, PGTI, who acknowledged IndusInd Banks role in the successful inaugural season. The finals were broadcast live on Eurosport and streamed on YouTube, with significant airtime for the Bank, complemented by sustained social media amplification.

Consumer Finance Division: Vehicle and Affordable Home Loans

The Consumer Finance Division (CFD) at IndusInd Bank continued to strengthen customer engagement and accelerate business growth in FY2026 through strategic, insight-led communication initiatives. Leveraging WhatsApp as a primary outreach channel, the division created a diverse portfolio of visually engaging and contextually relevant creatives spanning key lending products, including two-wheeler, passenger vehicle, small and heavy commercial vehicle, and tractor and farm equipment loans.

Festive and occasion-based campaigns remained a core pillar of the communication strategy, with thoughtfully designed creatives for celebrations such as Holi, Gudi Padwa, Ram Navami, Ugadi, Raksha Bandhan, Eid, Christmas, and Womens Day. These creatives were widely adopted by sales teams across branches and geographies as WhatsApp stories, enabling hyper-localised engagement while building a strong emotional connect with customers and prospects.

In parallel, the division amplified its partnerships with leading OEMs and dealership networks by rolling out customised creatives aligned with ongoing finance schemes and cobranded offers. These were deployed across multiple on-ground touchpoints, including dealership lobbies, standees, tent cards, banners, danglers, and leaflets, significantly enhancing brand visibility and recall at the point of sale while supporting seamless customer conversion.

A strong focus was placed on empowering frontline teams with effective marketing enablers. Through a steady stream of internal communication initiatives, including more than 100 emailers and creatives, employees and partners were engaged through interactive training modules, gamified quizzes, and incentive- led contests. Recognition programs celebrating top performers across key product lines—Fixed Deposits, Bancassurance, and lending segments—further fostered a high-performance culture, with , with various recognitions boosting morale and participation boosting morale and participation.

Additionally, targeted thematic campaigns were introduced to support specific business priorities, improve product awareness, and simplify customer journeys through clear and compelling messaging. These initiatives ensured that customers and channel partners received consistent, relevant, and timely information across all touchpoints.

Launch of New Credit Cards

CRED IndusInd Bank RuPay Credit Card

IndusInd Bank and CRED launched a co-branded Credit Card in collaboration with RuPay, designed for digitally savvy consumers who prioritise smart, seamless spending. The Card offers 5% cashback on e-commerce and CRED spends, 1% rewards on all other transactions, including Scan & Pay on CRED. Cardholders can redeem rewards flexibly across flights, hotels, the CRED Store, and CRED Pay merchants.

IndusInd Bank Jio-bp Mobility + Credit Card

The IndusInd Bank Jio-bp Mobility+ Credit Card, powered by RuPay, is designed to deliver enhanced value on fuel and mobility spends. The product offers up to 4.25% value back on fuel transactions at Jio-bp Mobility outlets, complemented by 400 welcome bonus points on fuel spends within the first 30 days. Additionally, customers receive a complimentary Rs200 Wildbean Cafe voucher on their first transaction within the initial 30-day period.

Collectively, these benefits are positioned to drive early activation, encourage repeat usage, and strengthen engagement within the mobility ecosystem.

Festive Loan Utsav—Boosting Retail Assets During Festive Season

To capitalise on the festive demand cycle, IndusInd Bank sustained its flagship Loan Utsav campaign through Q3, reinforcing its focus on accelerating retail asset growth while deepening customer relationships. Running from September 2025 to October 31,2025, the campaign served as a key platform to drive scale across core retail lending products through a differentiated, proposition-led approach. Anchored in a broad- based portfolio strategy, the campaign offered targeted, high- value propositions across key segments, including Home Loans, Personal Loans, Gold Loans, Loan Against Property, and Loan Against Securities.

The Bank also rolled out festive campaign #GiveMoreGetMore, celebrating generosity, financial empowerment, and the joy of giving. Anchored in the heartfelt theme, Account Bada Toh Dil Bada (When your account grows, so does your ability to fulfil the dreams of your loved ones), the campaign encouraged customers to make their loved ones dreams come true and spread happiness during festive season, while IndusInd Bank supported their financial needs through its Personal Loan.

Credit and Debit Card Festival Offers Campaign

To capitalise on the festive consumption cycle, IndusInd Bank executed a targeted campaign aimed at driving higher card spends, increasing transaction frequency, and strengthening customer engagement across key consumption categories. Anchored in the brand platform Good Happens Here, the campaign delivered a consistent, experience-led narrative that enhanced brand salience and strengthened customer connect during high-intent periods.

At the core of this strategy was a robust ecosystem of merchant partnerships, featuring limited-period credit and debit card offers across leading brands such as Swiggy, Blinkit, Reliance Digital, Vijay Sales, MakeMyTrip, Goibibo, and Tira. Spanning high-frequency and high-value categories—including quick commerce, food delivery, travel, electronics, and entertainment—these partnerships acted as a key lever to drive incremental spends, improve share of wallet, and accelerate card usage.

Gold Loan

The gold loan visibility initiative in FY2026 focused on strengthening on-ground presence, driving branch walk-ins, and accelerating cross-sell across 545 branches. Executed through an integrated, branch-led approach, the campaign combined in-branch branding, high-impact external visibility, and targeted customer outreach, including SMS and CASA-led emailers, to maximise outreach. Metro OOH further extended reach beyond branch ecosystems.

Collectively, the initiative enhanced product visibility, improved customer engagement, and contributed to higher walk-ins and cross-sell across the Gold Loan portfolio.

Jaankaar Bano, Jagruk Raho—

Cyber Fraud Awareness Campaign

A part of the RBI mandate on fraud awareness, Jaankaar Bano, Jagruk Raho was strengthened as the Banks flagship initiative to drive customer education on safe banking practices.

Executed through a fully integrated, multi-channel approach, the campaign ensured consistent visibility across digital, physical, and assisted touchpoints—leveraging influencer-led content, short-format videos, contextual messaging, print, ATM screens, website banners, and branch collaterals to maximise reach and engagement.

The campaign delivered strong outcomes at scale, covering more than 60 fraud categories through over 75 content assets, reaching 34+ million users, generating 66+ million impressions, and driving 1.2 million+ engagements.

Wholesale Banking Marketing Initiatives

IndusInd Bank focused on driving business-aligned storytelling and thought leadership to reinforce its position within the wholesale Banking ecosystem. Key initiatives were rolled out to enhance visibility, foster engagement, and showcase the Banks commitment to delivering value to clients.

The Banks Wholesale Banking Group (WBG) strengthened its digital presence through impactful campaigns such as MSME Week at IndusInd Bank, which highlighted the resilience of Indias MSME sector. The campaign showcased tailored banking solutions and client success stories, reinforcing the Banks role as a trusted MSME partner. It was further amplified through participation in ICAIs MSME Conclave, enabling engagement with industry stakeholders, and supported by personalised emailers and a focused LinkedIn push to drive visibility and engagement.

Additionally, the launch of a dedicated WhatsApp Banking service for Corporate Banking customers enhanced client convenience through seamless, real-time access to banking services.

These initiatives, supported by a structured content strategy, positioned the Wholesale Banking LinkedIn page as a key platform for thought leadership, product insights, and campaign storytelling. The page saw 60% growth in followers from 4,711 to 7,538 and generated over 41 Lakh impressions reflecting strong engagement and content relevance.

Employee Engagement Initiatives

IndusInd Banks Employee Experience team under the Human Resources Division (HRD) continued to drive initiatives that promote holistic well-being, inclusivity, and employee engagement across the organisation. Through a series of thoughtfully curated programs and campaigns, the team focused on fostering a positive work environment while addressing physical, mental, and emotional wellness.

The Health Highlights by HRD series brought monthly virtual healthcare sessions to employees, focusing on specific illnesses and ailments to raise awareness and encourage preventive care. Complementing physical health, the Mindset Matters by HRD initiative delivered motivational mailers to help employees start the week with positivity and purpose. We also started the monthly Mettle Mindset webinar series focussing on mental health of the employees.

To mark the International Day of the Girl Child, a webinar was held in collaboration with the employee volunteering team. Employees were encouraged to create kits for girl child orphanages, spreading festive joy, and reinforcing the spirit of giving.

To further understand and enhance the workplace experience for women, a Voice of Women e-survey was conducted, inviting feedback on safety, security, hygiene, and other key areas.

A communication campaign was launched around two women- focused benefits— Indus Cares and You Matter—designed to support women employees in various life scenarios. Indus Cares extended maternity benefits, while You Matter offered tailored support for womens well-being and empowerment.

In addition, to promote inclusivity and awareness of employee rights, a communication campaign was launched around Paternity Leave benefits, ensuring all employees were informed about the Banks progressive policies.

These initiatives collectively reinforce IndusInd Banks commitment to creating a supportive, inclusive, and people-first workplace culture.

Zonal Marketing Activities (Branches)

In an effort to strengthen customer relationships and enhance on-ground visibility, IndusInd Bank executed a wide range of zonal marketing and Below the Line (BTL) activities across branches throughout the year. These initiatives were designed to drive meaningful customer engagement while fostering a strong sense of community.

Key occasions such as Makar Sankranti, Holi, Republic Day, and Independence Day were celebrated with customers, alongside focused campaigns for Womens Day, World Yoga Day, World

Environment Day, and Doctors Day. The Bank also conducted service-led initiatives including Voter ID enrolment camps, dental check-ups, blood donation drives, and senior citizen-focused activities, enabling engagement beyond transactional interactions.

All activities were localised to reflect regional preferences, reinforcing the Banks commitment to inclusivity, wellness, and community connect. On average, engagements were conducted across ~1,800+ branches every month, balancing product-led activities with topical celebrations.

Overall, during the fiscal year, 87,000+ activities were executed across formats such as joggers parks, branch inbound and outbound activations, trader/catchment connects, Resident Welfare Associations (RWAs), and festival participations.

Through these consistent efforts, IndusInd Bank continues to deepen customer relationships while strengthening its presence within the communities it serves.

Metro and Airport Branding, OOH Campaigns

To enhance brand visibility and engage a wider urban audience, IndusInd Bank executed strategic branding initiatives across key metro stations and airports. Metro station branding was deployed at high-footfall locations, including Okhla NSIC and Madhuban Chowk (Pitampura) in Delhi and Noida, as well as Chakala in Mumbai. In parallel, airport branding was sustained across Delhi, Mumbai, Bangalore, and Chandigarh, effectively reaching a premium audience while strengthening brand presence and enabling targeted product communication.

Key product campaigns such as Fixed Deposits, Indus Care, NRI Banking, Gold Loans, Personal Loans, and Savings Accounts were amplified across major metro airports, including Bangalore and Mumbai. This ensured sustained visibility among a premium, high-influence audience, strengthening the Banks presence across critical transit hubs.

Additionally, a key OOH property was leveraged to run dual communication simultaneously in Gurgaon, featuring messages such as interest rates, Indus Care, and festive FD campaigns—maximising impact within a single high-visibility location.

Strategic Events and Industry Engagements

IndusInd Bank continued to engage with the broader banking, fintech, and business ecosystem, contributing to industry dialogue, through participation in key industry forums, panel discussions, and knowledge-sharing platforms, including podcasts, during the year. Senior leadership shaped discussions at leading forums, including the Mint BFSI Conclave, Business Standards Banking leadership summit, the Bombay Chamber CEO AI Conclave, and TransUnion CIBILs CIBIL Sandesh podcast, among others, sharing perspectives on the evolving banking landscape, digital transformation, and emerging industry trends including insights on the role of data and analytics in banking. The Banks MD & CEO, Mr. Rajiv Anand, served as a key member of the Special Jury for the Global Fintech Awards 2025, announced at the Global Fintech Fest (GFF) in Mumbai, in October 2025, to recognise trailblazers and innovators across the global fintech landscape.

At the India AI Impact Summit 2026—the countrys flagship summit on artificial intelligence, IndusInd Bank hosted a dedicated session on AI in Banking: Human Expertise Meets Machine Intelligence, convening experts from banking, technology, academia, and public policy to discuss the opportunities and considerations associated with AI adoption in financial services. As a key highlight of the year, this engagement reflects the Banks focus on innovation and the responsible use of artificial intelligence to enhance customer and business outcomes.

Beyond Banking: Creating Impact beyond Financial Services

IndusInd Banks commitment to nation-building extends well beyond banking services. We focus on driving long-term, measurable outcomes through transformative interventions across rural development, education and employability, livelihoods, inclusive sports, and environmental sustainability. Our approach aligns with national development priorities and the United Nations Sustainable Development Goals (SDGs) 2030, with a clear intent to contribute to a more inclusive, equitable, and future-ready India. Across our initiatives, we continue to create sustained impact across diverse geographies, with our efforts being recognised through multiple prestigious awards, reinforcing our commitment to meaningful, scalable, and responsible development.

IndusInd Bank Championing Cricket for the Blind

India created history by winning the first Womens T20 World Cup Cricket for the Blind, showcasing exceptional teamwork, resilience, and strategic excellence. The achievement reflects the impact of sustained support, access, and belief in athlete potential.

The Bank played a pivotal role through its IndusInd Bank Cricket for the Blind initiative, empowering 700+ visually impaired cricketers with structured, long-term support to compete at national and international levels.

To amplify the victory, the Bank launched the digital campaign Suno Suno India Goongjegi Jeet, celebrating the teams inspiring journey and reinforcing the power of sport to drive inclusion and shift perceptions. Further, the Bank hosted a felicitation ceremony on December 17, 2025, at its Mumbai headquarters, attended by senior leadership including MD & CEO Mr. Rajiv Anand and CABI Chairman Dr. Mahantesh Kivadasannavar, honouring the teams achievement and perseverance.

Overall, these efforts reflect IndusInd Banks commitment to inclusive sports as a driver of confidence, opportunity, and social transformation.

Driving Change towards Viksit Bharat: Holistic Rural Development

IndusInd Banks flagship CSR program is redefining rural development by enabling deep, sustained transformation across communities. Under the Holistic Rural Development Program aligned with NITI Aayogs Aspirational Districts initiative, the Bank is transforming five districts Baran, Begusarai, Bahraich, Dharashiv, and Virudhunagar through integrated interventions designed to improve quality of life and create long-term resilience. With a focus on livelihoods, healthcare, education, water and sanitation, and environmental conservation, the program aims to strengthen household income, improve access to services, and support community-led progress. The program has enabled long-term, inclusive development across these five aspirational districts, combining locally relevant interventions with scalable impact frameworks.

The journeys emerging from these districts have been documented by Outlook, helping amplify community stories and showcasing how structured interventions can drive real progress.

Women Farmers Connect: Celebrating Womens Day through Enterprise and Dignity

On International Womens Day, IndusInd Bank celebrated Women Farmers Connect, bringing women farmers and entrepreneurs from its CSR programmes into the workplace to create visibility, dignity, and economic opportunity. Across offices in Mumbai, Delhi NCR, Chennai, Kolkata, Gurgaon, and Hyderabad, beneficiaries set up exhibition spaces showcasing their produce, crafts, and entrepreneurial offerings—transforming workplaces into hubs of meaningful exchange and enabling employees to directly engage with grassroots entrepreneurs.

The initiative was conducted across 11 offices, including both IndusInd Bank and BFIL locations, where employees interacted with 27 women farmers and entrepreneurs. These engagements expanded awareness of their products, built entrepreneurial confidence, and reinforced that empowerment extends beyond financial upliftment to include access, recognition, and growth opportunities.

Encouraged by the strong response, the Bank is continuing Women Farmers Connect across additional locations, enabling more beneficiaries to showcase their enterprises and build confidence through sustained engagement, further strengthening its commitment to gender inclusion by turning workplaces into spaces where women-led enterprises are recognised, supported, and celebrated.

World Water Day: #WalkForADrop—

A Reflection on Access and Responsibility

On World Water Day, IndusInd Bank conducted #WalkForADrop, an experiential employee initiative to build awareness on water access and conservation. Employees carried a matka for a short distance, offering a powerful glimpse into the daily effort faced by millions—particularly women and girls—while reinforcing that water, though easily accessible for some, remains a daily struggle for many and must be conserved collectively. The initiative was captured in a short digital video highlighting employee reactions, and underscoring the message that water access is unequal and every drop matters, while encouraging mindful water usage at work and at home.

National Sports Day: The Unseen CoachHonouring Mentors behind Every Champion

To mark National Sports Day, IndusInd Bank released a digital video titled The Unseen Coach, paying tribute to athletes and the mentors who shape their success. While victories often spotlight athletes, the film brought attention to the silent architects of achievement coaches and mentors who work tirelessly behind the scenes to build capability, confidence, and character. Through an emotional narrative, the film reminded audiences that greatness is rarely achieved alone, and that every medal carries the strength of unseen support systems.

This initiative reinforced the Banks commitment to building an inclusive sporting ecosystem one where every effort, whether visible or behind the curtain, is valued and celebrated.

Employee Volunteering & Sustainability Awareness

IndusInd Bank continues to strengthen its culture of responsibility through employee-led volunteering and awareness initiatives that bring sustainability to life. As part of these efforts, employees and their family members across the Bank came together for the FY2026 Tree Plantation Drive, reflecting a shared commitment to environmental stewardship. Spanning 19 cities, 1,274 volunteers dedicated over 3,940 hours to plant 8,050 trees, demonstrating the power of collective action.

A thank you video capturing moments from the plantation drive across locations, expressing gratitude to employees and their families, and reinforcing a shared sense of purpose, was shared across Banks social media platform. Complementing on-ground action, internal sustainability webinars were conducted to encourage simple, practical behavioural changes that translate sustainability intent into everyday action. Together, these initiatives reaffirm the Banks belief that lasting change is driven by people, making sustainability a shared mindset across the organisation.

22. CORPORATE SOCIAL RESPONSIBILITY (CSR)

Good Ecology is Good Economics

At IndusInd Bank, we believe that good ecology is good economics. Long-term economic prosperity, social inclusion, and community resilience are intrinsically linked to the health of natural ecosystems, the productivity of natural resources, and the strength of local institutions.

Guided by this philosophy, our Corporate Social Responsibility (CSR) strategy seeks to create sustainable and inclusive development outcomes that improve livelihoods, strengthen resilience, and enhance the quality of life among vulnerable communities across India. As a responsible financial institution, we recognise that economic empowerment, environmental stewardship, and social progress are mutually reinforcing drivers of national development.

Our CSR approach is designed around the creation of four interconnected forms of capital that underpin long-term sustainable development.

Creating Sustainable Value

Natural Capital

Water security, watershed restoration, livestock healthcare, climate resilience, afforestation, regenerative agriculture, and sustainable resource management

Human Capital

Education, skilling, employability, entrepreneurship, athlete, and coach development

Social Capital

Community institutions, SHGs, FPOs, womens leadership, social protection, and community resilience

Economic Capital

Income enhancement, enterprise creation, market access, financial inclusion, and livelihood diversification

Our CSR Strategy

IndusInd Bank delivers its CSR strategy through two complementary portfolios:

- Holistic Rural Development Program (HRDP)

The Holistic Rural Development Program, aligned with NITI Aayogs Transformation of Aspirational Districts initiative. The initiative, aims to elevate the Human Development Index while representing the immense potential that lies dormant across rural landscapes.

- Strategic Programs

- Sustainable Environment

- Livelihood Enhancement through Livestock Health Management Inclusive Sports

- Education & Employability

Together, these portfolios address multidimensional poverty, climate vulnerability, livelihood insecurity, and social exclusion while contributing to national priorities and the Sustainable Development Goals (SDGs).

Alignment with National Priorities

IndusInd Banks CSR strategy supports key national priorities, including:

- Viksit Bharat 2047 through inclusive and sustainable economic growth.

- NITI Aayogs Aspirational Districts Program through integrated rural transformation in underserved geographies.

- Jal Shakti Abhiyan through watershed development, water conservation, and water security interventions.

- Livestock Health and Disease Control Programme through free doorstep veterinary care, mass preventive vaccinations, and accessible generic medicines for livestock.

- National Rural Livelihoods Mission through women- led livelihoods, enterprise development, and producer- owned institutions.

- Digital India and Skill India Missions through employability, digital skilling, and entrepreneurship initiatives.

- National Action Plan on Climate Change through climate- resilient agriculture, natural resource management, and ecosystem restoration.

- National Education Policy through foundational learning, remediation and future-ready skills development.

- Khelo India and Inclusion in Sports through support to athletes, para-athletes, and blind cricketers.

Through these investments, the Bank seeks to create enduring value for communities while contributing to Indias journey towards inclusive and sustainable growth.

Alignment with Sustainable Development Goals (SDGs)

IndusInd Banks CSR programmes contributed towards 11 Sustainable Development Goals (SDGs) during FY2026. The most significant areas of contribution include:

Income enhancement, entrepreneurship, social protection and financial inclusion

Climate-resilient agriculture, livestock health and improved farm productivity

Health insurance access and community health interventions

Foundational literacy, remedial education, teacher training and skilling

 

Women-led enterprises, SHGs, women farmers and leadership development

Watershed development, water harvesting and WASH innovations

Livelihood enhancement, entrepreneurship and youth employability

Inclusion of vulnerable communities, PwDs, para-athletes and blind cricketers

 

Climate resilience, regenerative agriculture, carbon reduction and afforestation, solar energy

Bharat Sanjeevani, ecosystem restoration, watershed management and sustainable resource management

Collaboration with government, research institutions, NGOs and community organisations

Flagship Program

Holistic Rural Development Program (HRDP) Mission

To improve income levels and standards of living among multi-dimensionally vulnerable rural communities through an integrated and sustainable development model aligned with NITI Aayogs Aspirational Districts Program.

Geographic Footprint

HRDP is implemented across five Aspirational Districts:

- Dharashiv, Maharashtra H Bahraich, Uttar Pradesh H Begusarai, Bihar H Baran, Rajasthan H Virudhunagar, Tamil Nadu

Integrated Development Approach

The program adopts a systems-based approach focused on:

- Water and soil resource management

- Climate-resilient agriculture

- Farm and non-farm livelihoods

- Entrepreneurship development

- Womens economic empowerment

- Community institution building

- Financial inclusion

- Social protection

- Climate resilience and adaptation

Rather than addressing challenges in isolation, the program strengthens the interconnected systems that drive sustainable rural transformation.

Foundation of Sustainable Impact: The Six Strategic Pillars

The programs exceptional impact stems from its foundation on six strategic pillars that ensure depth, sustainability, and scalability of interventions.

The true measure of the Holistic Rural Development Program lies not only in quantitative achievements but also in the lasting transformation of lives and communities. Its impact extends beyond immediate interventions. Improved water security enhances agricultural productivity; higher productivity strengthens household incomes; increased incomes enable greater investments in education and healthcare; and healthier, better-educated communities are empowered to drive their own long-term growth and resilience. This integrated approach demonstrates how interconnected interventions can create enduring and self-sustaining change.

Partnerships for Scale

IndusInd Bank believes that sustainable development outcomes require collaboration, convergence, and collective action.

Partner	Outcome
UNICEF (along with IIT Gandhinagar, Gorakhpur Environmental Action Group, Mission Samruddhi, CSR Trust for SGDs in India (CTSI))	Disaster Resilience Management through Government mechanism
IIT Madras	A field action research program, Climate Resilient and Sustainable Livelihood for Communities
Administrative Staff College of India (ASCI)	WASH assessments with district administration and pilot initiatives of WASH Innovations
National Skill Development Corporation (NSDC)	Skill On Wheels Program to train youth at their doorstep with employability skills
Bharatiya Yuva Shakti Trust (BYST)	Target oriented program for building Entrepreneurship in the 5 flagship districts
Collective Good Foundation	Access to Grant/Finance with revolving grant to build entrepreneurship among women
Industree Craft Foundation	Creating a bamboo value chain among the women farmers of Dharashiv, Maharashtra

The Bank leverages partnerships with UNICEF, IIT Madras, IIT Gandhinagar, Administrative Staff College of India (ASCI), National Skill Development Corporation (NSDC), State Governments, district administrations, civil society organisations, Farmer Producer Organisations, and community institutions to create scalable development models. These partnerships bring together public systems, scientific knowledge, technology, implementation expertise, and community ownership to accelerate development outcomes.

Recognition

Recognised by the Bombay Chamber of Commerce & Industry, one of Indias oldest and most influential industry bodies, as one of a select group of CSR case studies showcasing the role of corporate India in driving social development.

The Flagship Program received national visibility through Outlook Indias The India Drive, a special CSR-focused editorial series that documents transformative initiatives being implemented by leading companies across the country.

Gained national recognition by being selected as one of only 12 CSR case studies featured in CSR: Case Studies from India - 10 Years of Impact and Nation Building, co-authored by Dr. Bhaskar Chatterjee, widely regarded as the Father of Indian CSR. The publication was developed to commemorate a decade of Indias CSR journey, and showcases exemplary flagship initiatives from leading corporations across sectors such as education, healthcare, livelihoods, womens empowerment, sports, and nutrition.

In conclusion, IndusInd Banks Holistic Rural Development Program represents more than a CSR initiative; it embodies a vision of transformed rural India where challenges become opportunities and potential is realised through systematic, science-backed interventions. The programs integrated approach, strong emphasis on partnerships, and focus on sustainability have created a model that can inspire and guide similar initiatives across the country. The ripple effects of the program represent the building blocks of a new rural India, one that is economically vibrant, environmentally sustainable, and socially inclusive.

Strategic Programs

Complementing HRDP, the Bank invests in targeted interventions that address key national development priorities.

Sustainable Environment

The Sustainable Environment portfolio addresses rural poverty through integrated interventions in watershed management, water security, climate-resilient agriculture, sustainable livelihoods, womens empowerment, and renewable energy adoption. Through this portfolio, the Bank focuses on rejuvenating fragile ecosystems and strengthening community resilience, particularly in water-stressed regions where the availability of natural resources, accessibility, and water security remain significant concerns for small and marginal farmers.

Livelihood Enhancement through Livestock Health Management—Bharat Sanjeevani

Bharat Sanjeevani is a technology-enabled livestock healthcare and livelihood program that improves livestock productivity, reduces mortality, and enhances rural incomes. Through a technology-enabled Doctor on Call model, integrated with the Emergency Response Centre (ERC) and Mobile Veterinary Units (MVUs), the programme ensures timely access to veterinary care, enhances livestock productivity, and strengthens livelihood resilience.

Bharat Sanjeevani 2.0, implemented with the Ministry of Rural Development under DAY-NRLM, is a large-scale livestock livelihood initiative that strengthens rural livestock ecosystems through community-based service providers (Pashu Sakhis), producer-owned federations, and technology-enabled monitoring. The program integrates smallholder livestock and fisheries households across 11 states into sustainable value chains, focusing on four key outcomes: strengthening livestock enterprises, building producer-owned federated institutions, developing quality-assured, and compliant animal protein supply chains, creating scalable, evidence-based models and training systems for national adoption.

Inclusive Sports

The Bank continues to champion inclusion and sporting excellence advancing equitable access to sports for women, underprivileged communities, and persons with disabilities, fostering talent development and inclusive growth.

In FY2026, the Indian Womens Blind Cricket Team won the inaugural Womens T20 World Cup. Concurrently, athletes supported by the Bank secured 286 national and international medals, including podium finishes at global wrestling championships, reinforcing its commitment to high-performance pathways and inclusivity.

Education & Employability

The Education & Employability portfolio aims to build future-ready capabilities among students, entrepreneurs, and underserved communities.

The Bank continued to invest in its Foundational Literacy and Numeracy (FLN) programs to create an enabling environment to ensure universal acquisition of FLN, so that students achieve the desired learning competencies in reading, writing, and numeracy.

By addressing structural barriers and enabling inclusive participation, the Employability & Entrepreneurship initiatives sought to drive social inclusion, create sustainable livelihoods, and support economic growth. Its approach was built on three key pillars: strengthening district-level entrepreneurial ecosystems, increasing women and youth participation in entrepreneurship, and enhancing the scale, resilience, and sustainability of rural enterprises.

Looking Ahead

As India advances towards the vision of Viksit Bharat, IndusInd Bank remains committed to creating sustainable development outcomes at scale.

By investing in resilient ecosystems, stronger institutions, inclusive livelihoods and human capability, the Bank seeks to contribute to a future where economic growth, social inclusion, and environmental stewardship reinforce one another. Guided by the principle that Good Ecology is Good Economics, we will continue to build scalable, evidence-based, and community- centred models that create enduring value for communities and the nation.

23. SUSTAINABILITY

Sustainable Banking

Strategy: In alignment with our overarching strategy, a centralised 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 Committee, the Sustainability Team, and designated Sustainability contacts within each Business Unit (BU).

The CSR and Sustainability Committee of Board

- Agrees, reviews and evaluates the sustainability strategy of the Bank H Provides Industry perspective to the sustainability agenda of the Bank Sustainability Council H Approves the sustainability strategy, goals and performance H Reviews alignment of sustainability policies with the business units H Reviews compliance and reporting

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

ESG in business:

- 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:

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 and 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, organise 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

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

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

By launching IndusWE, we aim to demonstrate our commitment to diversity & inclusion for a more equal & progressive society. The initiative aligns with our organisational values and strategic objectives, and it presents a significant opportunity to make a positive impact on the entrepreneurial ecosystem. IndusInd Bank has been invited by NITI Aayog and the Ministry of MSME to serve as a banking partner on the Women Entrepreneurship Platform (WEP), supporting women entrepreneurs across India through tailored banking and financial solutions. This collaboration further strengthens the Banks commitment to advancing women-led entrepreneurship and financial inclusion.

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

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 and Transition Bonds/Loans:

Proceeds are intended to be exclusively applied to finance or re-finance 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 re-finance a combination of green and social end-uses as defined above

• Sustainability Linked Bonds/Loans: Sustainability-linked finance is designed to incentivise issuers achievement of environmental, social, or governance ta rgets 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 utilised 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 is incentivised by way of commercial benefits.

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, to empower their growth aspirations, the Bank has introduced CGTMSE-backed Loans.

• 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 Rs500 Lakh. https://www.indusind.bank.in/in/en/business/loans/ cgtmse-backed-loans.html

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

• This initiative promotes 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 helps 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.bank.in/in/en/business/loans/ indus-solar-loan.html

• IndusInd Bank has announced a strategic partnership with Tata Power Renewable Energy Limited (TPREL), to facilitate accessible and affordable solar financing for Micro and Small Enterprises (MSEs), thereby promoting widespread solar energy adoption amongst MSEs.

- 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 FY2025, which has been independently assured, represents approximately 47.4% 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.

- 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 2026, the Bank has established risk-sharing partnerships totalling over $80 million with USAID and DFC. Throughout FY2026, the Bank continued to finance new loans under these partnerships with DFIs. Furthermore, as of March 31, 2026, the Bank continues to engage with DFIs and has an active risk sharing partnership with USAID and a trade assistance programme with ADB. The Bank remains in active discussion on any meaningful opportunities to work with them to enhance the inclusive banking lending.

ESG in Risk Management:

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. A comprehensive review of ESG risks is performed alongside credit risks before final credit approval. Credit proposals from high-risk industries undergo in-depth ESG Risk Assessment by the Sustainability Banking unit and is recommended to the ESMS Committee for approval. The sustainability banking unit provides recommendations for monitoring and reporting of ESG risks associated with lending to high-risk project/entities. https://www.indusind.bank.in/content/dam/indusind- corporate/generic/ESMS.pdf

B. Climate Risk and Disclosure

The Bank, in line with RBIs approach, is dedicated to formulating policies that align with RBIs directives. The Sustainability Banking unit is closely monitoring these developments to assess their implications for the Bank. Further, we are proactively engaging with external consultants for internal capacity building and preparing the Bank for upcoming regulatory changes. As part of its internal capacity building process, the Bank has completed a pilot project on Climate Change Risk Assessment covering both Physical and Transition risks.

ESG in Operations

The Bank aims to expand its ESG footprint in the Banks operations 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.

- GHG emission intensity: The Bank has achieved remarkable progress in reducing greenhouse gas (GHG) emissions. These significant reductions highlight the Banks strong commitment to sustainability and proactive approach in mitigating climate impact.

- Green IT is a definitive vision of the Bank, with regular software updates, utilising new technologies and streamlining other IT operations, including thin clients, virtual servers and timers for signages, to enhance energy efficiency.

B. ESG Ratings: Updated as of March 2026:

- CRISIL ESG: The Bank has received a CRISIL ESG rating of 61/100 as of September 10, 2025, which is categorised as Strong under their scoring methodology.

- SES ESG Research: SEBI approved ESG rating provider (ERP), SES ESG Research Pvt. Ltd. has assigned IndusInd Bank an ESG Score of 72 on February 2, 2026.

- S&P Global CSA: The Bank has been assigned an S&P Global ESG Score of 54, superseding Industry Mean scores on all 3 parameters of Environment (E), Social (S), and Governance (G).

- Assurances: In addition to meeting the mandatory assurance requirements, 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 fiscal year, the Bank reviewed and revised all its policies to align with the latest ESG trends and relevant regulations. The Bank has also enhanced transparency by making these policies available on its website: https://www. indusind.bank.in/in/en/sustainability/policies.html

24. 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 operationalised to attain uniformity in processes followed by branches to minimise 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 synchronised 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 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

FY2026 marked the year of strengthening mechanisms of ensuring governance discipline, and consistent regulatory alignment for the Bank, with sustained focus on compliance reliability, operational transparency, risk oversight and institutional accountability.

During the year, the Bank continued to bolster its compliance architecture through tighter monitoring frameworks, accelerated audit closure mechanisms, strengthened KYC and AML controls, cybersecurity vigilance and enterprise-wide compliance training initiatives. Particular emphasis was placed on reducing operational deviations, improving branch-level compliance consistency and deepening governance responsiveness across functional units. The Bank is focused on a culture of regulatory discipline, proactive risk management and timely corrective action mechanisms. Continued investments in digital monitoring systems, internal control frameworks and policy review processes further reinforced the institutions commitment toward maintaining high standards of governance integrity and responsible banking operations.

1. Compliance & Conduct Framework

In an increasingly interconnected and highly regulated financial ecosystem, compliance has evolved beyond a statutory obligation into a foundational pillar of institutional resilience, governance integrity, and stakeholder trust. At its core, compliance represents adherence to applicable laws, regulations, supervisory expectations, industry standards, internal policies, and ethical principles governing the conduct of banking and financial services activities.

The Bank recognises that effective compliance extends beyond technical conformity with regulatory requirements. It encompasses the broader responsibility of fostering a culture of integrity, transparency, accountability, customer fairness, prudent risk-taking, and ethical decision-making across all levels of the organisation.

Consistent with the principles articulated by the Basel Committee on Banking Supervision (BCBS), compliance risk refers to the risk of legal or regulatory sanctions, material financial loss, or reputational damage arising from failure to comply with applicable laws, regulations, codes of conduct, standards of good practice, or internal governance frameworks. This includes risks relating to conduct, customer protection, data privacy, antimoney laundering, sanctions compliance, conflict management, and fiduciary responsibilities.

As a systemically important intermediary of public trust, the banking sector occupies a uniquely sensitive position within the economy. Banks mobilise public deposits, facilitate credit creation, enable payment and settlement systems, support enterprise growth, and underpin financial stability. Consequently, the standards of governance, ethical conduct, and regulatory discipline expected from banks are materially higher than those applicable to many other industries.

The Bank therefore views compliance not merely as a defensive control function, but as an enterprise-wide strategic capability essential to sustainable growth, operational resilience, franchise protection, and long-term value creation.

2. Governance Philosophy & Compliance Culture

The Bank remains committed to maintaining a robust culture of compliance grounded in integrity, professionalism, accountability, and customer-centricity. The Board and Senior Management continue to emphasise a strong tone from the top, recognising that culture is ultimately shaped not only by policies and controls, but by leadership behaviour, incentive structures, decision-making discipline, and everyday conduct across the organisation.

The Banks compliance philosophy is aligned with globally recognised governance principles, including the Basel Committees guidance on compliance and conduct risk management, the Three Lines of Defence framework, and evolving regulatory expectations surrounding operational resilience and ethical banking practices.

Employees across all functions are expected to discharge their responsibilities with an appropriate standard of care, diligence, loyalty, and professional judgment. The Bank places particular emphasis on the avoidance of conflicts of interest, fair customer outcomes, responsible business practices, and safeguarding the integrity of financial markets and systems.

The Bank also recognises that conduct risk constitutes a critical dimension of enterprise risk management. Misconduct whether through action, omission, negligence, mis-selling, unethical practices, inadequate disclosures, or control failures can adversely impact customers, counterparties, markets, regulators, and institutional reputation. Accordingly, conduct risk management continues to remain deeply embedded within the Banks governance and supervisory architecture.

3. Compliance Function & Regulatory Oversight

The Compliance function operates as an independent second line of defence and plays a central role in strengthening the Banks governance and risk management framework. The function works closely with business units, control functions, senior management, and regulatory authorities to ensure proactive identification, assessment, monitoring, mitigation, and reporting of compliance risks.

Key responsibilities of the Compliance function include:

- Interfacing with regulatory and supervisory authorities including RBI, SEBI, IRDAI, PFRDA, UIDAI, DFS, FIU-IND, and other relevant bodies.

- Monitoring regulatory developments, issuance of guidelines/circulars and ensuring timely dissemination and implementation of regulatory guidelines across products, policies, processes, systems, and business operations.

- Providing advisory and compliance consultancy/guidance to business verticals on applicable laws, regulatory expectations, and internal governance standards.

- Reviewing products, processes, operational frameworks, and system controls to ensure alignment with regulatory and conduct requirements.

- Overseeing regulatory inspections, supervisory interactions, thematic reviews, compliance testing, and remediation tracking.

- Monitoring regulatory reporting/reply obligations, ensuring timely submissions, and validating data integrity and reporting accuracy.

- Conducting compliance surveillance, monitoring, testing, thematic assessments, and risk-based reviews across business and operational units.

- Driving awareness initiatives, mandatory training programs and behavioural compliance culture sensitisation, across the organisation.

4. Three Lines of Defence Framework

The Bank has adopted a robust Three Lines of Defence (3LOD) model to ensure clear segregation of responsibilities, effective oversight, and enterprise-wide accountability for risk management and compliance.

- First Line: Business and operational units own and manage risks arising from their activities and are responsible for maintaining effective internal controls and compliant business practices.

- Second Line: Independent Compliance and Risk Management functions provide policy oversight, challenge, advisory support, monitoring, and enterprise-wide risk governance.

- Third Line: Internal Audit provides independent assurance to the Board and senior management regarding the effectiveness of governance, risk management, and internal control systems.

This framework enables the Bank to maintain strong governance discipline while ensuring that compliance remains integrated into business decision-making rather than functioning as a standalone control activity.

5. Emergent Context: Evolving Regulatory Complexity

The regulatory landscape for financial institutions, particularly within large and rapidly digitising emerging economies such as India, continues to evolve at significant pace and complexity. Banks today operate within an environment characterised by expanding supervisory expectations, accelerated digital adoption, increasing interconnectivity of financial systems, heightened scrutiny on customer protection and conduct, evolving data privacy standards, rising cyber-security risks, and increasingly sophisticated financial crime typologies.

The growing convergence of banking, technology, payments, digital assets, third-party ecosystems, artificial intelligence, and cross-border financial flows has materially expanded the scope and velocity of compliance obligations. Simultaneously, regulators globally are increasingly emphasising operational resilience, governance accountability, fair customer outcomes, ESG-related disclosures, outsourcing oversight, model governance, and enterprise-wide risk culture.

In this environment, effective compliance management requires institutions to move beyond traditional rule-based approaches toward more integrated, risk-sensitive, technology-enabled, and forward-looking compliance architectures. The Bank therefore continues to invest in strengthening governance frameworks, surveillance capabilities, data integrity standards, compliance analytics, employee sensitisation, and enterprise-wide control maturity to ensure sustainable alignment with evolving regulatory expectations and international best practices.

6. Compliance as an Organisational Value System

The Bank believes that enduring compliance excellence cannot be achieved solely through regulations, policies, or surveillance mechanisms. Sustainable compliance is ultimately cultural in nature. It is reflected in the quality of decisions taken when circumstances are ambiguous, when commercial pressures intensify, or when actions are not externally visible.

Accordingly, the Bank continues to focus on strengthening behavioural standards, ethical accountability, customer fairness, and institutional discipline across all levels of the organisation. Compliance is treated not as a periodic exercise, but as an integral component of the Banks identity, operational philosophy, and fiduciary responsibility to customers, regulators, shareholders, and society at large.

In an environment characterised by increasing regulatory complexity, rapid technological transformation, cyber risks, heightened customer expectations, and evolving financial crime threats, the Bank remains committed to continuously enhancing its compliance architecture and governance standards in line with domestic regulatory expectations and international best practices.

The Bank firmly believes that institutional strength is measured not merely by growth metrics, but by the integrity, transparency, resilience, and discipline with which growth is pursued.

7. End note

In an increasingly regulated and technology-driven financial environment, institutional credibility is no longer defined solely by financial performance, but equally by the strength of governance systems, regulatory discipline and operational accountability.

The Bank views compliance not as a periodic obligation, but as a continuous institutional responsibility embedded within its culture, processes and decision-making architecture. The consistent strengthening of compliance mechanisms, risk controls and governance frameworks remains central to sustaining stakeholder trust, operational resilience and longterm institutional stability.

Going forward, the Bank remains committed to continuously advancing its compliance maturity through technology- enabled oversight, proactive governance practices, ethical conduct standards and rigorous regulatory alignment across all operational domains.

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 mechanisms to ensure a compliant, fraud-free and ethical work environment.

Corporate Legal Department

The mission of the Corporate Legal Department (CLD) is aligned with the Banks mission of consistently adding value to all our stakeholders by enhancing the sustainability of the organisation and emerge as Indias most convenient Bank with financial metrics amongst the best in the industry. CLD plays an important role in the day-to-day functioning of the Bank and helps the different business units in the Bank in making good decisions, and safeguarding the Bank against legal risks through authoritative, actionable, and impartial legal advice and services. CLD has also been instrumental in developing comprehensive set of standard documents for various types of credit and noncredit products and is responsible for ensuring legal compliance of applicable laws and ensuring that the documentation entered into by the Bank with the borrowers/vendors/service providers is legally valid and enforceable. In addition to this, CLD supports the business units in drafting and negotiation of all non-standard legal agreements, assists in the preparation of the Banks policies and directives, handling legal cases filed against the Bank and its employees and issues opinions on diverse range of substantive and procedural questions of law affecting the business and operations of the Bank.

Customer Service

During FY2026, the Bank continued to strengthen its commitment to building enduring customer relationships with the objective of becoming the preferred banking partner by delivering seamless, easy, fast, and transparent services across all customer touchpoints and lifecycle stages.

Aligned to this vision, the Bank maintained a strong focus on understanding evolving customer expectations, designing technology-enabled propositions, and continuously reimagining customer journeys. Significant efforts were directed towards enhancing digital capabilities, enabling self-service channels, and embedding a customer-centric culture across the organisation.

The Banks Client Experience function plays a pivotal role in capturing the Voice of the Customer (VoC) through structured feedback mechanisms across transactions and engagement touchpoints. The Bank has institutionalised the Net Promoter Score (NPS) as its key metric to measure and monitor customer experience. The NPS framework has been comprehensively embedded across customer lifecycle stages, enabling the Bank to identify improvement areas and prioritise targeted interventions.

During the year, the Bank demonstrated steady progress in enhancing customer experience, reflected in an increase in promoter scores and a reduction in detractor levels, leading to overall improvement in NPS across key journeys. Insights derived from VoC, complemented by internal service performance metrics, continue to drive improvements in service delivery standards across channels.

To ensure consistent service quality at critical touchpoints such as branches, the Bank conducts independent evaluations through external mystery audit agencies. These assessments provide actionable insights on branch infrastructure, service quality, and customer engagement, enabling focused corrective actions and continuous improvement.

The Bank follows a robust pre-launch evaluation framework for products and services to ensure readiness and seamless customer experience post-launch. Additionally, structured feedback is gathered through Branch Level Customer Service Committee (BLCSC) meetings on a monthly basis, further strengthening the feedback loop and driving continuous enhancements.

The Bank continues to invest in technology platforms and digital initiatives to enhance customer convenience and self-service capabilities. Key initiatives include:

- Upgradation of CRM platforms to enable enhanced personalisation and operational efficiency.

- Introduction of WhatsApp Banking for corporate clients, providing secure, seamless, and 24/7 assisted and selfservice capabilities.

Recognising the strong linkage between employee experience and customer experience, the Bank has reinforced its focus on employee engagement through a three-pronged approach:

- Continuous learning and capability building to ensure faster and accurate service delivery

- Empowerment of frontline teams with tools and technology to enable first-contact resolution

- Recognition and reward of employees delivering exemplary customer service, thereby strengthening a customer- first culture

Further, the Bank captures and monitors the Voice of Internal Customers (employees) to ensure alignment and collaboration across functions. Improvement in internal service metrics reflects the Banks progress in building a strong service-oriented culture.

The Bank remains committed to continuously evolving its customer experience strategy to meet changing customer expectations and deliver superior service outcomes.

Grievance Redressal Mechanism

The Bank has established a robust grievance redressal framework, governed by a Board-approved Grievance Redressal Policy, which outlines a structured escalation mechanism for addressing customer complaints in line with Reserve Bank of India (RBI) guidelines.

To ensure fairness and transparency, the Bank has appointed an Internal Ombudsman, and all cases involving rejection or partial resolution of complaints are referred for independent review.

Periodic oversight is ensured through quarterly reporting of complaints and resolution status to the:

- Standing Committee on Customer Service (SCCS)

- Customer Service Committee of the Board (CSCB)

- Board of Directors

Analysis of complaint trends enables identification of root causes, leading to corrective and preventive actions to enhance service quality.

The Bank provides multiple, accessible channels for customers to lodge grievances, including:

- Branch network H Contact Centre (toll-free)

- Dedicated email channels H Official website (www.indusind.in)

Information relating to the Nodal Officers, Regional Managers, and the RBI Integrated Ombudsman Scheme, 2021 is prominently displayed at branches and made available on the Banks website to ensure transparency and customer awareness.

Shareholder Satisfaction

At IndusInd Bank, we recognise 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 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.bank. in 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.

Saksham Niveshak - 100 Days Campaign

The Bank undertook a shareholder outreach initiative Saksham Niveshak - 100 Days Campaign in alignment with the circular issued by the Investor Education and Protection Fund Authority (IEPFA), Ministry of Corporate Affairs, dated July 16, 2025. The campaign was conducted from July 28, 2025 to November 6, 2025, targeting shareholders who have not claimed or encashed dividends for the financial years 2018-19 to 2023-24. The initiative aimed to facilitate updating of KYC and other relevant details to enable seamless credit of dividends and prevent transfer of unclaimed amounts and corresponding shares to IEPF. The Bank actively engaged with shareholders through multiple communication channels and remains committed to safeguarding investor interests and ensuring rightful claims are processed in a timely manner.

The Bank launched the second 100-Day Campaign - Saksham Niveshak from April 1, 2026 to July 9, 2026, pursuant to IEPFA (MCA) communication, to assist shareholders in updating KYC details and claiming unpaid dividends for FY 2018-19 to FY 2023-24, thereby preventing transfer to IEPF. As part of this initiative, physical letters have been sent to shareholders with incomplete KYC records to facilitate timely updates and enhance engagement.

Re-lodgement of Transfer Requests for Physical Shares

Pursuant to SEBI Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/ CIR/2025/97 dated July 2, 2025, the Bank has facilitated a special window for shareholders to re-lodge transfer requests for physical shares that were originally submitted prior to April 1, 2019 (deadline subsequently extended up to March 31, 2025) but were rejected, returned, or remained unprocessed due to deficiencies or procedural issues. This regulatory measure enables investors to regularise pending transfer cases by submitting requisite documents through the Banks Registrar and Transfer Agent. The Bank has undertaken necessary steps, including public disclosures and ongoing coordination with the RTA, to ensure awareness and smooth processing of such requests in compliance with SEBI guidelines.

Further, in line with SEBI Circular dated January 30, 2026, a special window from February 5, 2026 to February 4, 2027 has been provided for re-lodgement of transfer requests for physical shares lodged prior to April 1, 2019 but previously rejected or unprocessed, enabling shareholders to regularise such cases.

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 Rs5,00,000 (rupees five Lakhs only), 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 Rs10 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 Rs10,00,000 (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 18, 2026 in respect of the shares on which dividend for FY 2018-19 had remained unpaid or unclaimed for seven consecutive years or more, requesting them to claim such dividend on or before September 19, 2026, so as to avoid the corresponding shares from being transferred to the IEPF Authority.

A notice in this regard was also published in Financial Express (all editions) and Loksatta (Pune Region) on May 18, 2026.

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 MUFG 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.bank.in.