L&T Finance Ltd Management Discussions

Macroeconomic Review

The global economy in 2025 navigated a landscape defined by divergent growth paths and a fundamental reordering of trade priorities. The most significant disruptor in 2025 was the implementation of tariff rates climb to levels not seen in a century, triggering a wave of global "front-loading" where businesses rushed to import goods early in the year. Nevertheless, global growth is estimated to have slowed to ~2.8-3.0% in 2025, down from the 3.3% seen in 2024. This slowdown, however, was not uniform across major economies. In the US, growth decelerated to 1.8% as policy uncertainty and the drag from higher input costs began to weigh on business environment. Chinas economic growth slipped toward 4%, hampered by a stagnant property sector and the adverse impact of trade barriers from the West. The Eurozone struggled with a meager 0.8-1.2% growth rate, particularly as Germany faced structural industrial challenges and fluctuating energy costs.

Amid the growth pangs, the disinflationary process that hit a milestone in 2024 became sticky and desynchronised in 2025. This led to divergences in monetary policy actions of major developed economies. The US Federal Reserve, after holding rates steady for much of the year due to tariff-induced inflation risks, finally initiated a series of 25 basis points cuts in late 2025 as the labor market showed signs of cooling. The European Central Bank (ECB) and Bank of

England (BoE) moved aggressively with rate cuts as their economies cooled. In a historic shift, the Bank of Japan (BoJ) continued to raise rates toward 0.5% to manage domestic price pressures and a weakening Yen, ending its era of ultra-loose policy.

Despite a global backdrop of trade fragmentation, the Indian economy demonstrated remarkable resilience and structural strength through FY26 supported by buoyant private consumption, robust manufacturing sector, and strategic government capital expenditure. It remained the worlds fastest-growing major economy for the fourth consecutive year and surpassed Japan in nominal GDP to become the worlds fourth-largest economy.

According to the second advance estimates, Indias real GDP growth for FY26 is estimated at 7.6%, surpassing previous projections. This growth is anchored in a robust manufacturing performance and resilient domestic demand despite external headwinds like geopolitical tensions in West Asia and tariff concerns. The economy showed strong momentum through the first three quarters of FY26, with a slight moderation expected in the final quarter due to the Middle East conflict and an unfavourable statistical base. The manufacturing sector maintained double-digit growth for five consecutive quarters as of Q3FY26, bolstered by inventory stocking and GST rationalisation. Services sector reached a seven-quarter high of 9.5% in Q3FY26. Growth was led by Financial, Real Estate & Professional Services and Trade, Hotels, and Transport. Growth in the Agriculture and allied sector moderated to a seven-quarter low of 1.4% in Q3FY26, partly due to unfavorable base effects and weather disruptions like unseasonal rainfall.

Headline inflation plummeted to an average of ~2.1% for FY26 (vs. 4.6% in FY25), driven by a prolonged nine-month decline in food prices and a favorable monsoon. Core inflation (excluding gold) remained stable at around 2.6%, indicating that the underlying price pressures were well-contained. The RBI delivered one of the sharpest easing cycles in recent history, cutting policy rates by a full percentage point within four months starting in February, 2025.

The RBI delivered another rate cut of 25 basis points in December, 2025, even as macroeconomic fundamentals strengthened, signalling its commitment to sustain domestic demand through 2026 amid global uncertainty.

On the fiscal front, the Central Government is set to narrow its fiscal gap to 4.4% of GDP for FY26 compared to 4.8% in FY25. During Apr-Jan FY26, fiscal deficit stood at ?9.8 lakh Cr, representing 63% of the budget estimate. Significant tax reforms in FY26 (personal income tax revisions and GST rationalisation) had a revenue-reducing effect, with an estimated tax revenue shortfall of ?1.9 lakh Cr in FY26 (RE), which was balanced by higher non-tax revenue and expenditure adjustments.

Foreign direct investment (FDI) into India grew by 18% year-on-year to US$47.87 Bn during April-December, FY26, with inflows from the US nearly doubling to US$7.8 Bn during this period. Foreign portfolio investment (FPI) outflows were about US$16.4 Bn (up to March 25, 2026), highest ever in any financial year. Such investment withdrawals contributed significantly to currency depreciation with the Indian Rupee breaching the ?94 per US dollar mark in late March 2026. Despite RBIs interventions in the forex market to contain rupee volatility, Indias foreign exchange reserves at US$710 Bn are adequate to cover for more than 11 months of imports.

In 2025, S&P upgraded Indias long-term sovereign credit rating to BBB from BBB- and its short-term rating to A-2 from A-3, with a Stable Outlook. This marked the countrys first sovereign upgrade by S&P in 18 years. The rating upgrade reflects a combination of key factors, including Indias buoyant and dynamic economic growth, the governments sustained commitment to fiscal consolidation, improved quality of public spending, particularly on capex and infrastructure, and strong corporate, financial, and external balance sheets. Credible inflation management and increasing policy predictability have also played a central role.

The GST 2.0 reform, implemented in September 2025, represents a landmark shift by aggressively streamlining Indias once-complex rate structure.

By collapsing the 12% and 28% brackets into more manageable 5% and 18% tiers, the GST Council has effectively lowered the cost of essential services, life-saving medicines, and middle-class consumer durables. While the introduction of a consolidated 40% peak rate for luxury and "sin" goods ensures revenue stability, the broader exemption of health and life insurance premiums highlights a pivot toward social welfare. Early data from 2026 suggests that this rationalisation has successfully balanced the scales: reducing the compliance burden for small businesses and cooling inflation, while simultaneously driving record-high monthly collections through increased volume.

The much-awaited Labour Code reforms finally came into force in FY26. By simplifying compliance while safeguarding worker rights, the reform is expected to improve ease of doing business, accelerate job formalisation, and attract fresh investment across manufacturing and services.

While domestic reforms progressed, FY26 was defined by a sophisticated shift in Indias external economic strategy. The year marked a pivot toward deeper global integration through the conclusion of landmark trade agreements with the US, EU, UK, New Zealand, and Oman. These trade pacts materially expand market access, diversifying Indias trade corridors and catalyzing new investment flows and export opportunities.

Outlook for FY27

The global economy had been on course for stronger-than-expected growth before the war in Iran erupted in the end of February 2026. The uncertainty surrounding the duration and magnitude of the war is testing the resilience of the global economy. The Organisation for Economic Co-operation and Development (OECD) has warned that escalating conflict in the Middle East has knocked the global economy off a stronger growth path as a near-halt in energy shipments through the Strait of Hormuz threatens to push inflation sharply higher. It projects global GDP growth to ease from 3.3% last year to 2.9% in 2026 as the unpredictable nature of the conflict offset tailwinds from strong technology-related investment, lower effective tariff rates and momentum carried over from 2025.

S&P Global Ratings projects Indias GDP to grow at 7.1% in FY27 driven by strong private consumption, modest recovery in private investment and robust export performance. However, downside risks to the outlook could emanate from the Gulf conflict. It projects inflation to rise to 4.3% in FY27 as it normalises from low levels, with the RBI likely to keep interest rates unchanged while maintaining a neutral stance.

	IMF	World Bank	RBI	Fitch	S&P
Projections for Indias GDP Growth in FY27	6.50%	6.60%	6.90%	6.70%	7.10%

Indias financial system recorded steady credit expansion, low asset quality stress and evolving regulatory measures in FY26. The incremental bank credit growth for FY26 is estimated at ~?26 Tn, ~14.5% Y-o-Y expansion.

As per the RBIs December 2025 Financial Stability Report, the Indian banking system is robust and resilient, boasting multi- decadal low Gross Non-Performing Assets (GNPA) ratios of 2.1%. Capital buffers are strong, with Commercial Banks well-positioned to handle financial shocks, though risks from surging unsecured retail loans and fintech lending require caution. Similarly, the RBI sees the NBFC sector as being stable, showing strong capital buffers, robust earnings, and improving asset quality.

While the overall health of banks and NBFCs are robust, the RBI has flagged specific areas that require constant vigilance. First, unsecured loans (personal loans, credit cards) accounted for 53.1% of all retail loan slippages. The RBI noted that private banks are particularly exposed, with 76% of their fresh slippages coming from this segment. Secondly, high impairment has been observed in borrowers who have unsecured loans from five or more lenders, a trend driven largely by rapid fintech credit expansion (36.1% Y-o-Y growth). Furthermore, while domestic fundamentals are strong, external risks such as, geopolitical tensions, trade uncertainty, and Rupee volatility remain elevated.

According to CRIF Highmark, Indias retail lending market surged to ?162.7 lakh Cr by December 2025, supported by 690 Mn active accounts. The market is undergoing a clear structural shift: secured products like gold and auto loans are now significantly outperforming unsecured segments. While rising asset values and favorable LTV ratios are boosting ticket sizes in top-tier categories, the real volume story is happening in Beyond Top 100 (BT-100) cities. Driven by robust digital infrastructure, these Tier 2 and Tier 3 markets have become the primary engines for personal loans, two-wheelers, and consumer durables.

FY26 Business Performance

Retail Finance

Farmer Finance

The Farmer Finance vertical includes offerings across the farmer lifecycle.

Farm Equipment Finance

In FY26, LTF delivered a benchmark- setting performance in the Farm Equipment Finance business, effectively leveraging a highly favourable rural macroeconomic environment. Strong monsoons, healthy reservoir levels, robust Kharif and Rabi harvests, and timely mandi arrivals significantly strengthened farmer liquidity, creating a conducive environment.

A major external catalyst was the governments strategic reduction of GST on tractors from 18% to 5%, which sharply lowered acquisition costs and accelerated mechanisation demand nationwide. The tractor industry consequently grew by 23%, expanding from ~9.4 lakh to ~11.6 lakh units. Your Company responded with agility, aligning distribution, underwriting, and digital capabilities to fully capture this upswing.

LTF financed ~1.11 lakh units in FY26 (vs. ~95,000 in FY25), delivering disbursements of ~?6,200 Cr excluding financing to existing customers which contributed a robust 22% to overall disbursements, total disbursements reached ~?7,900 Cr, resulting in 11% book growth leading to a book-size of ~?16,600 Cr. Additionally, collection efficiency enhanced by 110 bps, underlining continued strengthening of asset quality.

Project Cyclops, now fully implemented, has significantly strengthened your Companys new-age credit underwriting architecture. The platform integrates real-time land record retrieval, geospatial and hyperlocal data sets, decile- based customer profiling, video PD, account aggregator data, and seamless e-mandate registration. Together, these enhancements have sharpened risk discrimination, enabled a fully digitised employee-assisted sourcing journey, and delivered industry-leading turnaround times (TAT) across the underwriting process.

Dealer engagement and operational utility were further strengthened through the launch of PARTNER PLANET, a dedicated digital platform designed to enhance the effectiveness and efficiency of dealer interactions. The application provides real-time visibility into trade advances and incorporates comprehensive business management functionalities, enabling improved planning, tracking, and decision-making. By delivering a structured, high-utility engagement infrastructure, this initiative is expected to reinforce dealer relationships and support sustained improvements in throughput over the medium to long term.

Looking ahead to FY27, asset quality is expected to further improve as the Project Cyclops underwritten book seasons, complemented by strong demand momentum and continued digital innovation.

Warehouse Receipting Finance

In the Warehouse Receipting Finance business, your Company continued to scale its presence in the agricultural value chain through a fully digital, paperless process with API integration into collateral managers. A rule-based digital MTM mechanism further strengthened risk monitoring. The segment delivered sanctions of ~?1,700 Cr and disbursals of ~?800 Cr, establishing a strong competitive position in post-harvest financing.

Overall, FY26 marks a year of disciplined execution and digital leadership, positioning your Company strongly for sustained expansion in FY27.

Rural Business Finance

FY26 was a year of fortitude for Rural Group Loans & Microfinance franchise of LTF. Your Company was able to maintain the growth and portfolio quality despite industry wide overleveraging cycle. Due to LTFs prudent sourcing and portfolio monitoring mechanisms, your Company was able to maintain one of the lowest credit costs across the industry. Notably, LTF also effectively navigated the fallout of the Karnataka Micro Loan and Small Loan Ordinance, 2025 by Q3FY26, emerging far ahead of the competition due to resilient collection efforts coupled with on-field discipline and customer communication.

Despite a broader microfinance sector contraction where industry portfolio de-grew by 16% from ?3.8 lakh Cr to ?3.2 lakh Cr and the active customer base shrank from 8.9 Cr to 7.7 Cr, your Company defied the trend. LTF thus recorded a healthy growth to ?29,367 Cr from ?25,838 Cr in FY25 a robust 14% increase. This was backed by stringent sourcing guardrails and data backed underwriting. This disciplined approach resulted in a sustainable high- quality portfolio where 98.5% of the loan book consists of customers with less than 3 lenders, 53% of whom are exclusive to LTF. This has translated into one of the industrys best portfolios with collection efficiency of 99.8% and a 0-DPD book of 96.4%.

Heading into FY27, LTF intends to grow by expanding into under penetrated geographies. In the second half of FY27, your Company will further strengthen its portfolio monitoring with help of data analytics as it deploys Project Nostradamus, an advanced portfolio management engine. This will enable LTF to monitor early warning signals, customer location stability, customer leverage and other geo and demographic signals within the rural business finance segment.

Micro LAP:

Building a secured high margin franchise

Building on its extensive rural expertise, LTF has established Micro Loan Against

Property (Micro LAP) as a strategic high margin, secured growth engine.

Over the past two years, the product has effectively addressed the financing requirements of rural segments by leveraging localised geo expertise, robust underwriting capabilities and data led customer insights.

In FY26, Micro LAP surpassed the loan book of ?1,400 Cr milestone, a significant leap from ?482 Cr in FY25. This momentum was driven by a granular network of over 260 branches, with existing branches in Tamil Nadu, Karnataka, Maharashtra, Gujarat, Andhra Pradesh, and Telangana and foray into high-opportunity markets of Rajasthan, Madhya Pradesh, and Uttar Pradesh.

Looking towards FY27, LTF aims to accelerate this trajectory by deepening its presence in existing states and expanding into high potential geographies. This expansion will solidify Micro LAP as a cornerstone of the Rural Business Finance portfolio, leveraging localised insights to drive sustainable, secured portfolio growth.

Two-Wheeler Finance

In the Two-Wheeler sector, retail sales witnessed an annual growth of 12% from 1.9 Cr units to annual sales reaching approximately 2.1 Cr units. This growth highlights the continuing popularity of Two-Wheelers for commute and underscores the demand in the Two-Wheelers market. Two-Wheeler sales during the festive season witnessed support through government intervention of GST reduction thereby boosting sales. As a result, vehicle sales saw significant increase of about 20% growth Y-o-Y (October 2025 to November 2025) with sales of approximately 57 lakh units.

LTFs growth in FY26 continued to be driven by focus on sourcing prime customers and its deep distribution capabilities through 8,500+ sourcing points. This has resulted in the prime disbursement mix increasing to about 90% in March 2026 and the portfolio prime mix increasing from approximately 54% in FY25 to 76% in FY26. Additionally, the impetus on financing high end bikes, led to an increase in Average Ticket Size (ATS) from ?1.07 lakh to ?1.14 lakh.

Project Cyclops, the new three- dimensional underwriting engine, was implemented for 100% sourcing throughout the dealer network in FY26. The impact has resulted in drastic reduction of 0 DPD bounce rates on the portfolio by over 6% and Project Cyclops underwritten portfolio by over 12%. The Project Cyclops underwritten portfolio comprises around 76% of the overall portfolio. This is beginning to have deep structural improvement in asset quality with sustained collection efficiencies in this pool. Our AI based portfolio management engine,

Project Nostradamus saw its full-scale implementation in the Two-Wheeler business. This is expected to exhibit cutting edge early warning signals at a pin code, dealer and model level basis.

The PLANET App ecosystem saw an upward integration into the dealer ecosystem with the launch of PARTNER PLANET, a dealer engagement and retention app that provides real time trade advance and sales management. This we feel will augur well in the medium to long term to increase dealer mind space along with TAT improvement.

All these measures have resulted in a robust FY26 disbursement of ~?10,800 Cr, which is a 16% increase Y-o-Y, and a strong growth of FY26 loan book of ?14,400 Cr, which is a 17% increase Y-o-Y.

Home Loans and Loans Against Property

The mortgage market reached a milestone of ?58 lakh Cr this year, growing at 13% YoY. Despite geopolitical instabilities and rising costs, the industry saw a 16% value- wise growth in absorption, heavily driven by premiumisation and the luxury segment.

In this backdrop, LTF has achieved significant growth this year reaching disbursements of over ?11,500 Cr and a closing book of over ?30,000 Cr - YoY growth of 20% each. This has been supported by expanding its footprints to 42 main branches & 19 new spoke branches to tap the semi- urban markets.

While the Home Loans segment has seen a steady growth of 11%, crossing ~?7,600 Cr in disbursements this year, the Loan Against Property (LAP) segment growth story has continued with a 44% YoY increase to reach ~?3,900 Cr. This year also witnessed the growth of Mortgage Plus loans - specially designed for the industrial segment to tap its potential - reaching a monthly disbursement of ~ ?50 Cr and poised for even higher growth

next year. The same has given an impetus to the overall LAP segment with its share on disbursements reaching 34% vis-a-vis 28% last year.

The Complete Home loans product

THE COMPLETE

HOME LOAN

- specially designed around home decor and furnishing loans, launched last year - grew by ~66% Y-o-Y. Both products, Home Decor and Mortgage Plus, have led to increased yields with positive impact on the net interest margins.

Despite a one-time 25 bps rate cut passed to customers in July 2025 - amidst the continuous rate drops, your

Company, maintained yields through case-to-case assessments.

With regards to its asset quality LTF has continued to control its GS3 while maintaining industry standards through rigorous monitoring and legal interventions.

On the digital front your Company launched Neo2 - an upgraded version of the Sales Assisted journey, originally launched last year. With the launch of the native application called Mortgage Policy and Pricing Assistant (MoPPA), LTF has empowered its field teams to access policy details accurately and immediately helping them structure deals efficiently. Furthermore LTF has launched initiatives such as Credit Assessment Memo (CAM) automation and an AI-based Co-pilot - helping in automated triangulation of bureau & banking data and income analysis - thereby resulting in improved underwriting efficiencies and reduced TAT.

Lastly, LTF has added another feather in its cap through the launch of Spoorthi - a specialised program tailored for women entrepreneurs to live their dreams - with a higher loan amount at better rates of interest.

Personal Loans

The Personal Loan industry aggregates to a market size of ~?15.9 lakh Cr for FY26 with a Y-o-Y industry growth of 11%, led by disbursements in high ticket size segments.

During the year, LTF successfully scaled its Personal Loans portfolio across all primary channels, including cross-sell initiatives, Large Partnerships, and Direct Selling Agents (DSAs).

The strategic focus remained on driving risk-calibrated growth while engineering a tech-led, profitable consumer lending business dedicated to delivering a superior customer experience.

With data and technology-first approach to lending, the business was built through LTFs proprietary underwriting engine - Project Cyclops, partnership-led alternate data models and rigorous portfolio monitoring. In Personal Loans, all the originations are digital in nature delivering superior customer experience along with enhanced risk controls.

These initiatives resulted in disbursement of ~?12,200 Cr in FY26 with the book size crossing ?14,600 Cr with a Y-o-Y growth of 70%. As the regulatory environment evolves alongside rapid technological advancements, your Company remains well-positioned to navigate industry shifts and maintain its upward growth trajectory.

The Micro, Small, and Medium Enterprises (MSME) sector continues to be a cornerstone of Indias economy, contributing significantly to manufacturing, exports, and employment. As of January 2026, as a part of the details shared in Economic Survey 2025-2026, credit to MSMEs registered a Y-o-Y growth of 8.8%, surpassing the 6.2% growth observed in credit to large enterprises.

Among the factors that contributed to LTFs growth were comprehensive expansion in 100+ locations in addition to the existing 118 locations. Additionally, a new program variant; partially Collateralised Business Loans has been introduced to meet evolving customer needs that would enable smarter capital structuring along with expansion & scale up of Direct Sales Team.

Furthermore, Project Cyclops marked a significant milestone in transforming LTFs credit assessment framework by designing a scorecard to enable faster risk assessment, improved customer segmentation, and enhanced consistency and accuracy in decision-making. Alongside Project Cyclops was Project Helios - an AI driven underwriting co-pilot which was launched to enhance the speed, accuracy, and efficiency of SME credit decisions.

These initiatives contributed to the loan book scaling to over ?8,500 Cr in FY26 vs ~?6,500 Cr in FY25. LTF disbursed ~?6,100 Cr during the year, a 23% increase from the previous year, with the on-book customer base growing to 49,000+. The Union Budget 2025-26 has further bolstered this sector by enhancing the investment and turnover limits for MSME classification by 2.5 and 2 times, respectively, facilitating business expansion and improved efficiency.

LTF has significantly strengthened its retail portfolio by its foray into Gold Finance business - a secure high yield product. This was engineered through the acquisition of Paul Merchants Finances gold loan business. This loan book acquisition completed in June 2025, brought in over 130 branches, approximately 700 employees, and a book outstanding of ~?1,300 Cr.

A notable highlight of this transaction was that both technology and personnel integration of the business was completed within just eight weeks, displaying high operational efficiency.

The Gold Finance vertical is now a core part of LTFs diversified retail franchise, serving as a high-yield secured product. LTF intends to scale this segment into a key "fulcrum" product. LTF has since added 200 new branches - focusing on high-potential areas - bringing its total distribution network to 330 gold finance branches. Going forward, LTF is poised to further expand on this strong physical base backbone of branches and grow its franchise. By balancing its presence across both rural and urban markets, your Company aims to turn the Gold Finance business into a significant driver of long-term retail growth.

Another key aspect and analogy to the acquisition is the synergy that it brings along - Cross-Sell potential.

It is to be noted that LTFs existing customer base in Rural Group Loans (RGL) & Microfinance (MFI), Farm Equipment, and Two-Wheeler Finance indicate a high potential for availing Gold finance due to its already existing pertinent exposure to Gold Finance. LTF is expected to capitalise on this opportunity that could, over the course of time, funnel in sizeable amount of customers.

To drive lead generation and direct it towards its branches, LTF is leveraging its extensive rural network of over 15,000 field employees.

All these efforts have yielded rich results as LTF in a short period of just 10 months, has displayed strong disbursement of ?6,700 Cr with loan book increasing to over ?2,800 Cr. Going forward, the Gold Finance product is expected to emerge as the axis of RoA expansion to the LTF product propositions.

HUMAN RESOURCES

With a stronger operating foundation now in place, LTF is entering its next phase of growth. As your Company transitions from Lakshya 2026 to Lakshya 2031, it is evolving into a more data-driven, technology-led organisation, with a clear ambition to become Indias leading risk-first, technology-first, multi-product retail financier of choice.

At the heart of this evolution is a clear focus on future-proofing the organisation through conscious culture change, aligning business priorities closely with people practices. A strong HR strategy remains central to this effort, with capability building at its core, alongside a continued focus on creating a learning, caring and performance-driven organisation. Together, these efforts ensure that talent, technology and culture work in tandem to drive long-term value.

The underlying factor contributing to the significant progress achieved is the "People" of your Company, who represent the L&T Finance brand to diverse customer groups across rural and urban areas, enabling your Company to fulfil the financial aspirations of Indians as a trusted partner in every customers financial journey. As of March 31,2026, your Company employs 41,301 employees across three different categories:

The field force that comprises the sales, collections, and operations staff

The supervisory and middle management personnel at the state and zonal levels

The middle and top management located at the corporate office

The field force employees approximately form 71% of the workforce composition and are instrumental in delivering financial services to geographically dispersed customer segments. Your Company serves the rural customer segment across the Rural Business Finance and Farmer Finance verticals, largely comprising women entrepreneurs and farmers. These segments are catered to by 27,133 employees, many of whom are recruited from deep rural areas, generating sustainable employment and advancement opportunities, while strengthening your Companys connection with local communities and empowering rural India. The remaining employees cater to Urban Finance, SME Finance, and Gold Finance customers.

To serve a diversified customer franchise, your Company has adopted a focused approach to engage, develop and support its employees. With a matrix structure and empowered regional leadership enhancing accountability and execution,

LTF continues to invest in building future-ready capabilities, strengthening leadership pipelines, and embedding a growth-oriented and innovation-led culture. This ensures that the workforce remains central to translating strategic ambition into disciplined execution and long-term, sustainable growth.

LTF People Philosophy

In FY26, LTF reaffirmed its commitment to building a listening-led, employee- centric culture through its second consecutive company-wide survey conducted in partnership with Great Place to Work (GPTW). More than a feedback exercise, this survey serves as a critical barometer of employee trust, engagement, and organisational effectiveness.

Participation increased significantly from 73% to 89%, with over 34,000 employees taking part. This sharp rise reflects growing confidence in the process, a stronger culture of openness, and the organisations continued focus on acting on employee feedback.

Importantly, 84% of employees identified LTF as a Great Place to Work, improving from 82% in the previous year. This consistent upward movement stands as strong external validation of LTFs people practices and signals meaningful progress in enhancing the overall employee experience.

The organisation is systematically advancing action plans derived from survey insights, driving tangible improvements in employee experience and workplace effectiveness.

These outcomes are deeply rooted in LTFs People Philosophy, Experience the C.U.R.V.E. of Happiness (Connected, Understood, Respected, Valued, and Enabled), which guides the organisations efforts to create a workplace where employees feel heard, respected, and empowered to succeed.

Competency Framework:

To strengthen performance and leadership across the organisation,

LTF has implemented a customised Competency Framework that connects strategy to day-to-day behaviour. The framework is structured around four pillars: Strategy, Execution, Philosophy, and Culture, anchored by eight core competencies and 21 observable behaviours. These competencies are embedded into daily work through high-visibility interventions such as themed dartboards, gamified board experiences, comic strips, videos, and digital badges on the one-stop engagement platform. This approach ensures continuous reinforcement, peer recognition, and integration of expected behaviours into everyday decision-making, fostering a culture of sustained performance and leadership development.

Communicating Purpose

Your Companys leaders drive the organisations vision, mission and values - Pride, Ambition, Discipline and Integrity - through a multi-channel approach including townhalls, emails, mobile platforms and digital assets such as the HRMS portal. These channels are also used for information dissemination, strategy discussions and regular organisational updates, ensuring alignment across all levels.

Long Range Planning

An annual exercise where every vertical presents a comprehensive plan to the top leadership to support strategic priorities in an inclusive and cohesive manner. It ensures alignment, encourages collaboration and facilitates sustained growth.

Townhalls

Leadership-led townhalls are conducted and broadcast organisation-wide. In FY26, these focused on brainstorming for Lakshya 2031, with additional zonal townhalls across six cities to cascade goals and capture on-ground insights.

LTF Employee Connect

Updates and key messages are shared through mobile platforms, WhatsApp, email and org-wide announcements, enabling seamless and targeted communication.

Investing In People

LTF continues to invest in human capital through structured learning, development, and well-being programmes that enhance productivity, foster innovation, and strengthen long-term organisational capability. In FY26, Learning & Development focused heavily on AI adoption and upskilling, empowering employees with practical, bite-sized AI trainings, videos, and workshops under the Empower AI initiative, enabling workforce-wide adoption of AI in business processes and decision-making.

Employee Induction Programme (Parichay)

The Parichay programme remains the foundation for onboarding, familiarising new recruits with LTFs values, culture, business operations, and goals. Parichay is customised for different lines of business, with a dedicated module for Gold Finance employees to align new hires with product-specific operations and customer engagement strategies. Core training areas continue to include Know Your Customer,

Code of Conduct, Prevention of Sexual Harassment, Information Security Awareness, Operational Risk Management, and ESG.

Role Appreciation Programme (RAP)

Targeted at frontline employees,

RAP provides a four-day immersive experience combining field visits and interactive classroom sessions. The programme emphasises informed consent, allowing candidates to engage in experiential learning before committing to the organisation, ensuring alignment of expectations and readiness for their roles.

e-Gurukul

LTFs digital learning platform continues to provide gamified, bite-sized learning experiences with skill- and competency-based modules, integrated leaderboards, and interactive assessments. Employees across locations can access training on demand, promoting continuous learning and performance improvement.

Udaan

Udaan remains the flagship campus programme, onboarding Graduate Engineer Trainees and Management Trainees through orientation sessions by HR and senior leadership, followed by role-specific technical training.

In FY26, Udaan emphasised Tier 1 campus hiring and employer branding, ensuring a robust pipeline of future talent.

Winspire

Aimed at fostering womens leadership, Winspire empowers women employees through structured development tracks tailored to different stages of their professional journey, enhancing career growth and representation at higher levels.

STRIDE

Launched in FY25, STRIDE continues to support self-driven learning, enabling employees to pursue courses, certifications, and degrees aligned with career goals. The initiative includes financial assistance and collaborations with reputed learning institutions, fostering a culture of continuous professional growth.

Rewarding Excellence

At LTF, recognising and celebrating employee achievements is a core value that energises the workforce. In FY26, your Company continued its commitment to excellence through structured recognition initiatives that honour employees for outstanding contributions.

Star Awards - Flagship Enterprise Recognition

The Star Awards remain LTFs premier recognition platform, celebrating employees and teams who demonstrate exceptional performance and deliver meaningful business impact. At the Star Awards 2025, your Company honoured 195 outstanding employees, selected from 1,791 eligible colleagues, for their exceptional contributions and embodiment of LTFs values of Pride and Ambition. A special highlight was the introduction of the Chairmans Award, presented to the team behind Project Cyclops for its transformative impact. Awards were presented across multiple categories including Bright Spark, Exemplar of Values, Teamwork, and Transformation, recognising both individual brilliance and collaborative success.

Zonal Star Awards

During FY26, LTF strengthened recognition through the elevation of Rising Star Awards to Zonal Star Awards (ZSA), designed to recognise frontline employees and first-level managers. The revamped programme expanded the proportion of recognised employees in the frontline band from 2% to 6%. A total of 1,025 employees were honoured across six cities in four zones, celebrating high-performing employees who play a critical role in driving customer engagement and business growth.

Wall of Fame - Recognising Everyday Performance

The Wall of Fame continues to recognise employees who demonstrate strong business performance aligned with monthly and quarterly priorities. Winners are selected through a structured process led by skip-level managers and business leaders who receive certificates and monetary rewards, reinforcing a culture of accountability and consistent performance.

Long Service Awards - Honouring Loyalty and Commitment

The Long Service Awards celebrate employees whose dedication and loyalty have contributed meaningfully to your Companys journey. In FY26, 14 employees were felicitated for completing over 15 years of service, reflecting sustained commitment to organisational growth.

Champions League - Celebrating the Best of the Best

The LTF Champions League 2025 brought together the organisations top performers in Dubai for a celebration of achievement, pride, and excellence. The second edition recognised 2,076 high-performing employees from across business and enabling functions. The ceremony was attended by LTFs brand ambassador, Jasprit Bumrah, making it a memorable recognition event for your Companys top achievers. The Champions League continues to serve as a prestigious platform that celebrates outstanding performance and inspires employees across the organisation to strive for excellence.

Giving Employees A Voice

Following the launch of IdeaXpress in FY25, LTF re-introduced IdeaXpress in FY26, a structured platform enabling employees to propose AI-driven solutions to enhance business processes, customer outcomes, and operational efficiency. Selected ideas are evaluated for feasibility and impact, presented to senior leadership, recognised and rewarded, and integrated into live workflows where viable.

LTF also conducted an AI Showcase, providing visibility to innovative AI applications, celebrating employee contributions, and fostering enterprise-wide adoption of AI solutions. Through these initiatives, LTF democratises innovation, empowers employees across all levels, and accelerates the organisations AI journey at scale.

Engaging Employees

LTF follows a structured annual plan for employee engagement, aligned with organisational goals and executed collaboratively by the HR team with zonal and regional representatives.

A key milestone in FY26 was the launch of the one-stop engagement platform, designed to engage, recognise and reward employees, while bringing together our geographically diverse workforce. With over 11,000 downloads, it enables employees to seamlessly participate in initiatives, access benefits, and stay connected across the organisation. Several organisation-wide programmes, including talent showcases, wellness challenges, and creative contests, have been successfully conducted through the platform.

Sports and Wellness

The LTF Premier League (LPL) brought employees together through cricket competitions across 20 cities, featuring 281 teams with mandatory female participation in each XI. Badminton and Pickleball tournaments further promoted inclusivity, teamwork, and healthy competition. The selection of the LTF Corporate Team provided employees an opportunity to represent the organisation externally. International Yoga Day was celebrated with desk yoga sessions and a "Strike a Yoga Pose" contest, fostering mindfulness and well-being.

Celebrating Creativity and Talent

Platforms like LTF Got Talent Season, the Photography Contest "Echoes of Life," and QuizWiz enabled employees to showcase artistic and intellectual abilities. LTF Got Talent received 123 entries across singing, dancing, drama, instrumental, and emcee categories, while the photography contest recorded 1,514 submissions, reflecting strong participation and enthusiasm.

Womens Day and Festival Celebrations

International Womens Day 2026 was celebrated under the theme "Give to Gain," recognising women employees through workshops, interactive sessions, and personalised gifts. LTF also celebrated Independence Day, Ganesh Chaturthi, Navratri, Diwali, Christmas and harvest festivals ncluding Lohri, Bihu, Pongal, and Makar Sankranti, reinforcing inclusion, unity, and cultural pride across all locations. Family Connect and Pause Point zones further strengthened engagement and employee well-being.

Employee Volunteering, Boondein

The Employee Volunteering Program - Boondein has grown into a high-impact initiative. A total of 1,000+ employees, contributed 2,014 hours to social and environmental causes. Activities included recording audiobooks, creating braille books, developing teaching materials, upcycling T-shirts into tote bags, and crafting eco-friendly bangles. The program is driven by a strategic collaboration between HR and CSR teams to foster a culture of giving and community engagement.

Through these initiatives, LTF continues to foster a culture of participation, creativity, wellness, and inclusivity, connecting employees across locations and building a vibrant, people-first workplace.

Caring For Employees

A major step in strengthening employee healthcare in FY26 was the adoption of a corporate healthcare platform, marking a shift from periodic health interventions to a continuous, preventive care model. The platform enables employees to manage their health proactively by providing access to OPD consultations, concessional medicines, automated follow-ups with doctors and dieticians after health checkups, and ongoing engagement for lifestyle and preventive care. This continuous care approach ensures that health checkups translate into sustained follow-up and improved health outcomes, rather than remaining standalone events.

Employee Well-being and Support

LTF continues to prioritise holistic employee wellbeing through initiatives such as women-friendly policies offering extended leave, work-from- home options, childcare benefits, ergonomic seating, and priority facilities for expecting mothers. Healthy nutrition is promoted through mess facilities across 1,279 branches in 12 states, while frontline officers receive helmets for road safety. Additionally, through the Employee Welfare scheme, your Company provides

structured financial, educational, and employability support to families in the event of an employees death, including ex-gratia payments, continued salary for 24 months, educational assistance for children, and support for spouses employability.

Elevating Employee Experience through Workplace Infrastructure

In FY26, LTFs Facilities and Channel Management team continued to strengthen infrastructure and workplace experience through key initiatives. This included the launch of the first multi product Sampoorna Branch in Ujjain, and expansion of Gold Finance branch network.

Driving A Culture of HR Excellence

In FY26, your Company participated in the CII HR Excellence Assessment for the first time, a nationally recognised benchmark for evaluating people practices and organisational effectiveness. The assessment involved a comprehensive review of key HR processes, focusing on both execution and measurable outcomes. It enabled structured identification of improvement areas, adoption of best practices, and creation of a roadmap for continuous enhancement. Your Company was felicitated with the recognition for "Strong Commitment to HR Excellence," reinforcing its focus on building a culture of excellence in HR.

Risk Management

As we navigate the fiscal year 2026, LTF continues to fortify its position as a premier, tech-enabled Non-Banking Financial Company (NBFC). LTFs commitment to a "Right to Win" strategy is underpinned by a sophisticated Risk Management Architecture that balances aggressive growth with systemic resilience. Your Companys Risk First, Tech First approach inculcates risk culture which directly contributes to long-term value creation, capital preservation, along with the prestigious domestic AAA credit rating by all four domestic rating agencies and international rating BBB by S&P and BBB- by Fitch (at par with Sovereign rating).

The Philosophy of Resilience: Enterprise Risk Management (ERM)

LTF views Risk Management not merely as a compliance requirement, but as a systematic approach to identifying, evaluating, and mitigating potential and existing threats. Our Enterprise Risk Management (ERM) Policy, reviewed annually or as needed, serves as the structural blueprint for our risk-intelligent culture. This framework ensures that your Company proactively address risks that could impede its strategic objectives.

Governance and Oversight

The Board of Directors maintain ultimate oversight through the Risk Management Committee (RMC), which convenes quarterly to monitor the implementation of your Companys risk frameworks. This committee scrutinises risk tolerance, exposure limits, and the efficacy of our early warning systems.

In addition, there are frequent senior management meetings where all emerging and existing risks are discussed along with appropriate strategies to mitigate the same. Various internal meetings like Risk Management Committee (RMC), Operational Risk Management Committee (ORMC), Outsourcing Management Committee (OMC), Model Risk Management Committee (MRMC), Reputational Risk Working Group Committee (RRWG) and Asset Liability Committee (ALCO) are conducted on periodical intervals for assessing and reviewing various aspects of risk arising from the business operations of LTF.

Furthermore, a collaborative synergy between your Companys business units and the risk department ensures that every strategic decision is informed by real-time risk data.

The Risk Appetite Statement (RAS)

LTFs strategic boundary is defined by the Risk Appetite Statement, a comprehensive articulation of the risks your Company chooses to accept or avoid to meet its business goals. This statement integrates both qualitative and quantitative measures across four critical pillars:

To ensure these objectives are met at the granular level, LTF utilises the Earnings at Risk (EAR) approach. This forward-looking metric allows LTF to set concentration limits across all retail businesses, ensuring that any potential loss remains within a predetermined, acceptable buffer.

Credit Risk: The Vanguard of Digital Underwriting

Credit risk, comprising transaction (default) and portfolio (intrinsic and concentration) risks, remains a focal point of our management strategy.

LTF over the course of time has transitioned to a pragmatic framework that aligns every financing opportunity with our risk-return strategy.

Project Cyclops:

AI-Driven Precision

The centerpiece of LTFs credit evolution is Project Cyclops, its proprietary AI-driven digital credit engine. By leveraging advanced machine learning and big data analytics, Project Cyclops has streamlined the entire credit lifecycle from origination and underwriting to continuous monitoring. This platform integrates alternative data signals, such as account aggregator data and bureau insights, to enable:

Swift Credit Decisioning

Enabling real-time evaluations

Prime Onboarding

Facilitating faster acquisition of high-credit-quality customers

Strategic Sifting

Distinguishing between sensitive and resilient borrowers to optimise "swap-in/swap-out" rates

Project Nostradamus: Early Warning Intelligence

To complement Project Cyclops, LTF deployed Project Nostradamus, an

advanced Early Warning Signals (EWS) engine. Operating at both macro and micro levels, Project Nostradamus analyzes behavioral patterns and macroeconomic variables to predict defaults before they manifest. LTFs in-house economic affairs team tracks multiple macro variables, issuing regular bulletins to steer its portfolio away from potential headwinds. Further, your Company has established benchmark vintage thresholds based on budgeted credit costs to closely monitor the portfolio and take timely actions to navigate the portfolio towards envisaged returns.

Strategic Portfolio Reorientation

In its journey toward maximum resilience, LTF is intentionally tilting the portfolio toward secured products, such as Gold Finance and Micro LAP. This shift, combined with real-time risk dashboards, ensures that your Companys other retail products including Rural Group Loans & Microfinance, SME loans, and Farm Equipment finance are monitored with unprecedented granularity.

Operational and Model Risk: Ensuring Execution Excellence

Operational Risk is a "process and people risk" that LTF manages through rigorous internal controls. The internal controls deployed utilises a Risk and Control Matrix (RCM) approach to identify and assess risks across customer onboarding, busines operations, and collections.

Process Governance

Every new product or feature modification undergoes a strict approval process via the Product and Process Approval Group (PAG). To mitigate "People Risk"—including human error or fraud—the Operational Risk department periodically updates Standard Operating Procedures (SOPs).

Corrective Action & Resilience

When risk events occur, LTF employs Root Cause Analysis (RCA) to initiate corrective steps. Your Companys Corrective and Preventive Action (CAPA) plans are drafted with specific timelines and are monitored by senior leadership until closure. Furthermore,

LTF also has an enterprise-level non-IT Business Continuity Plan (BCP) to ensure operational stability during crises.

Model Risk Management

As LTFs reliance on algorithms grows, your Company has established a dedicated Model Risk Management framework. Models are used in areas including credit risk management, collection decisions, market risk management, and financial reporting.

To govern model risk, a Board-approved Model Risk Management policy and Model Risk Management Committee was put in place in FY24. Overseen by a specialised committee, LTF reviews models at every stage development, active use, and retirement to prevent inaccuracies in risk assessment. All models within Project Cyclops and Nostradamus are validated before implementation and monitored periodically.

Technological Fortification: Cybersecurity & Infosec

In an increasingly digital landscape, protecting LTFs IT assets is paramount. The Infosec team at LTF secures business applications through Security by Design, and Zero Trust model with ethical hacking, and 24/7 monitoring.

Governance and Compliance

The Information Technology Strategy Committee (ITSC), comprising Board members, oversees LTFs security posture through quarterly meetings. Your Company holds an ISO 27001:2022 certification, ensuring that its Information Security Management System (ISMS) meets international standards. Your Companys digital platform features a 3-tier Security Architecture with in-built disaster recovery to protect against ransomware, malware, and data leakage. Meetings discussing IT security infrastructure, applications, governance, data security, and business resiliency are held on a monthly basis.

Liquidity Risk

Heightened uncertainty fuelled by shifting global trade dynamics and evolving geopolitical conflicts has increased volatility in funding markets. Consequently, the need to proactively manage liquidity risk - defined as the risk of possessing insufficient liquid assets to meet financial obligations - has never been more critical.

Throughout FY26, LTF demonstrated robust liquidity risk management, maintaining positive cumulative gaps consistently within the structural liquidity statement for all buckets up to one year. Your Company remained in full compliance with both regulatory and Board-defined limits for its Structural Liquidity and Interest Rate Sensitivity Statements, Liquidity Coverage Ratio (LCR), and Stock Ratios. Furthermore, our Contingency Funding Plan remained highly effective; by proactively monitoring Early Warning Indicators (EWIs) on a daily basis, ensuring sufficient liquidity to navigate period-specific geopolitical events like Operation Sindoor and ongoing Middle East conflicts.

Future-Proofing:

ESG, Climate, and Geopolitical Risks

LTF is a pioneer in integrating emerging risks into its core financial strategy.

Your Company recognises that climate change can manifest as operational interruptions or altered asset values.

Climate Integration

LTF performs detailed analyses of variables like rainfall deviation and reservoir storage capacity to manage agricultural risk. Climate risk considerations are now embedded in its decision-making protocols and periodic portfolio assessments.

ESG and ICAAP

In compliance with RBI directives, LTF has established an Internal Capital Adequacy Assessment Process (ICAAP) that formally incorporates ESG risks.

Geopolitical Vigilance

LTF proactively monitors global, domestic and economic uncertainties, calibrating strategies to protect collections at risk.

Regulatory Integrity & Compliance Culture

Compliance is the bedrock of LTFs franchise. Your Companys framework utilises a Compliance Testing Programme to identify gaps and suggest corrective & preventive action plans. Your Company prepares an annual test plan covering inter-alia major new circulars, KYC/AML compliance, and Fair Practice Codes. Testing results are reported directly to the Audit Committee, ensuring a top- down culture of integrity.

Sustainability

Sustainability continues to be a core strategic priority for LTF, embedded across its business model, risk management practices, and operational processes. As a diversified retail financier, your Company recognises its role in enabling inclusive growth while managing environmental and social risks associated with its lending and operations. During the year, your Company strengthened ESG integration into lending, portfolio management, and governance frameworks encompassing enhanced assessment of environmental and social risks, expansion of sustainable finance initiatives, and continued focus on responsible lending practices. Your Company is also strengthening its data and digital capabilities, including automation of financed emissions measurement, to enable more accurate, timely, and forward-looking risk assessment and disclosures. Your Companys sustainability approach is supported by robust governance structures, including Board-level oversight and enterprise-wide integration through the Sustainability Steering Council and cross-functional working groups, ensuring continued alignment with evolving regulatory requirements and global frameworks, strengthening transparency and disclosures. As your Company enters its next phase of growth, sustainability will continue to serve as a key enabler of long-term value creation, with a sharper focus on climate risk, sustainable finance, and operational efficiency driving resilient growth while creating measurable environmental and social impact. its environmental footprint through increased adoption of renewable energy and energy-efficient infrastructure, including installation of solar rooftop panels at select strategic locations. Renewable energy share increased from 33% to 38%, with more than 62 branches transitioning to green power. Rooftop solar installations were undertaken on pilot basis in a few select leased branches, enabling on-site renewable energy generation and reducing dependence on grid- based power, contributing to a reduction in energy intensity. Digital transformation further supported low- carbon operations, with your Company achieving 100% digital disbursements and increasing digital collections to 96% in urban and 33% in rural areas, significantly reducing paper usage and physical processing. Your Company continues to strengthen its commitment to creating accessible, inclusive, and safe workplaces, with large branches being designed and upgraded to be PwD friendly, ensuring ease of access and an inclusive experience for all iy stakeholders.

Your Company maintained its water positive/surplus status for the fourth consecutive year, reinforcing its commitment to responsible water management. During the year, 265 lakh Kl of water were replenished through structured conservation initiatives. Water recycling efforts were strengthened through upgraded treatment infrastructure, enabling recycled water generation of approximately 50 KLD and reducing dependence on freshwater for non- potable use. On waste management, your Company continued to strengthen its circular resource management practices. 51 tonnes of waste were recycled through authorised recyclers, 100% of e-waste was disposed of responsibly, and waste assessments across 50 key branches improved segregation and recovery efficiency, supporting your Companys commitment to Zero Waste to Landfill.

Your Company also expanded its environmental stewardship through nature-based solutions, with over 2.68 lakh saplings planted across 500+ acres, including 68,444 native trees in degraded regions, contributing an estimated carbon sequestration potential of 1,521 tCO2e and supporting long-term climate resilience.

In FY 26, LTF expanded Occupational Health and Safety (OHS) practices across locations, supported by structured monitoring, periodic audits, and alignment with ISO 45001 standards. Hazard Identification and Risk Assessment (HIRA) exercises were conducted across 28 locations to identify and mitigate workplace risks, with 3 locations achieving ISO 45001 certification during the year. Your Company strengthened employee awareness on ethics, compliance, and sustainability through structured training programmes, with 100% of employees covered across vigilance, anti-harassment (POSH), anti-bribery, and dedicated sustainability modules on human rights, occupational health and safety, waste management, and environmental practices fostering a culture of integrity, accountability, and responsibility across the organisation. On sustainable finance and social impact, your Company continued to drive inclusive growth by supporting over 55 lakh active women borrowers and directing ?18,220 Cr towards sustainability-focused and priority sector lending. With 60% of rural group loans extended to repeat borrowers and 50% of the portfolio originating from low-income states, your Company reinforced its commitment to financial inclusion. Womens representation increased to 7.4% of the workforce, with 29% on the Board and 27% at the Group Executive Committee level. Accessibility remained a priority, with

100% PWD-friendly infrastructure across large offices, supported by inclusive policies, targeted hiring, and sensitisation initiatives. Your Company also conducted value chain assessments covering the top 75% of partners, embedding ESG across its value chain and reinforcing human rights commitments and a zero- tolerance approach to bribery and corruption through a robust third- party code of conduct.

Your Company is actively aligned with leading sustainability frameworks and institutions, including the Confederation of Indian Industry (CII), and joined as a signatory to the United Nations Global Compact (UNGC), reflecting its commitment to globally recognised principles on responsible business conduct. The various recognition and alignment collectively underscore LTFs consistent focus on responsible finance, robust governance, and sustainable value creation where strategy, governance, and on-ground action converge to deliver resilient, responsible, and inclusive growth

Corporate Social Responsibility

FY26 marked a year of deepened community engagement for LTF, with CSR efforts anchored in the 3S philosophy of Social Impact, Scalability, and Sustainability. Interventions spanned four thrust areas Digital & Financial Inclusion, Disaster Management, Climate Impact Management, and Social Inclusion.

The Digital Sakhi initiative remained a flagship programme. Across 8 states, the programme expanded digital and financial literacy to 15.80 lakh+ individuals and strengthened entrepreneurial capabilities of 8.18 lakh+ women. Over 1.10 lakh individuals were connected to government schemes, unlocking benefits worth approximately ?240 Cr. Cyber awareness campaigns reached 1,000+ villages, engaging over 1 lakh individuals. Digital Sakhi 2.0 was further expanded into Valsad, Gujarat, onboarding 50 Digital Sakhis across 50 villages and supporting 500 women in entrepreneurship.

Under Climate Impact Management, Project Prakruti recorded a sapling survival rate exceeding 94% across 500+ acres in Karnataka. Jalvaibhav 2.0 advanced water stewardship in Bandhavgarh through 3 water structures and 10 Farmer Field Schools. In Maharashtra, 11 water structures were restored across 122 villages.

In Valsad, 5 solar lift irrigation units enabled assured irrigation across 90 acres, supporting 119 marginal farmers

Disaster Management efforts ensured distribution of relief kits across 7 districts in Punjab, Uttar Pradesh,

Bihar, and Rajasthan. Social Inclusion initiatives included road safety

programmes reaching 18,000+ individuals across 20+ Mumbai schools and 100+ health camps in Nagpur. Employee volunteering through the Boondein programme grew 450%, from 448 hours in FY24 to 2,000+ hours in FY26.

Financial Ratios

Standalone

The Liquidity Coverage ratio improved by 91% increasing from 179% (for the quarter ended March 31,2025) to 342% (for the quarter ended March 31, 2026). This is primarily attributable to comparatively increase in the stock of High-Quality Liquid Assets (HQLA) and a concurrent decline in short-term cash outflows, resulting in lower net cash outflows over the next 30-days period.

Consolidated

RONW (or RoE) increased from 10.87% in FY25 to 11.25% in FY26 on the back of book growth of 25% and disbursement growth of 38% YoY