RBL Bank Ltd Management Discussions

Evolving Geopolitical Scenario

Geopolitical developments continue to influence the global economic environment. Governments and businesses are

strengthening resilience while adapting to evolving trade and investment dynamics. Although heightened tensions have increased uncertainty and caused periodic market volatility, the global economy remains supported. Resilient domestic demand, technology-led investment, accommodative financial conditions in several economies, and policy support continue to sustain growth.

Meanwhile, countries are diversifying supply chains, expanding regional trade agreements, and broadening trading partner networks. These efforts reduce concentration risks and improve economic flexibility. At the same time, investments in digital technologies, energy security, and critical minerals are strengthening long-term resilience. Although geopolitical risks remain significant, these structural adjustments should support a more diversified, adaptable, and resilient global economy over the medium term.

Advanced Economies

Advanced economies are expected to maintain moderate growth despite heightened geopolitical uncertainty and the Middle East conflict. Under the IMFs reference forecast, growth is projected at 1.7% in CY 2026 and 1.8% in CY 2027. This reflects the resilience in major economies. Positive terms-of-trade gains in the United States, stronger productivity growth, and policy measures in Japan support this outlook. However, net energy importers, particularly the euro area and the United Kingdom, face greater headwinds. Higher energy prices, weaker manufacturing activity, and tighter financial conditions are expected to soften growth prospects.

Emerging Market and Developing Economies (EMEs)

Emerging market and developing economies are projected to experience a sharper slowdown. Growth is expected at 3.8% in CY 2026 before recovering to 4.5% in CY 2027. Compared with advanced economies, EMEs remain more exposed to the Middle East conflict. Greater dependence on imported energy, stronger remittance and financial links, and weaker macroeconomic buffers increase their vulnerability. Economies relying heavily on commodity imports or facing fiscal and external vulnerabilities are likely to bear greater costs. This highlights the need for prudent macroeconomic policies and stronger resilience against external shocks.

Outlook

The global economic outlook remains cautiously optimistic. Resilient economic fundamentals, continued technology investment, and improving financial conditions support growth.

However, geopolitical developments and elevated uncertainty are expected to moderate expansion. Even so, economies continue adapting through stronger policy coordination, diversified trade relationships, and structural reforms. Inflationary pressures are also expected to ease over time, creating greater room for policy normalisation.

Indian Economy

India continued to reinforce its position as one of the worlds fastest-growing major economies in FY 2025-26, supported by resilient domestic demand, sustained investment activity, and a stable macroeconomic policy environment. This momentum translated into provisional real GDP growth of 7.7% in FY 2025-26, reflecting the strength of the countrys economic fundamentals and structural reforms. Moderating inflation, improving labour market conditions, stronger external sector indicators, and a well-capitalised financial system further enhanced the economys resilience. Backed by prudent fiscal management and a calibrated monetary policy approach, India maintained macroeconomic stability, strengthened investor confidence, and remained well positioned to sustain broad-based and inclusive growth over the medium term.

P: Provisional

*As per revised estimates (FY 2023-24 onwards is the new series and previous GDP estimates are as per the old series)

Indias economy recorded broad-based growth in FY 2025-26, with all major sectors contributing to overall expansion, although

growth momentum varied across industries. The agriculture sector continued to play a vital role in supporting rural incomes and ensuring food security, despite a moderation in growth. Agriculture, Livestock, Forestry and Fishing expanded by 3% during FY 2025-26, compared with 4.2% in FY 2024-25.

Industrial performance remained resilient, with manufacturing and construction driving growth. Manufacturing expanded 10.7%, improving from 9.3% in the previous year. Construction grew 7.4%, marginally above 7.3% in FY 2024-25. Sustained infrastructure investment and real estate activity supported this growth. However, Mining and Quarrying grew 5.2%, below 11.7% recorded a year earlier. Similarly, Electricity, Gas, Water Supply and Other Utility Services slowed to 1.7% from 2.9% in FY 2024-25.

The services sector remained the largest contributor to economic growth, supported by strong performance across several segments. Trade, Hotels, Transport, Communication, Broadcasting and Storage emerged as the fastest-growing category. It expanded by 11% in FY 2025-26, compared with 6.6% in the previous year. Financial, Real Estate, Information Technology, Professional Services and Ownership of Dwellings also maintained strong growth. Together, they grew by 10.4%, slightly above 10% in FY 2024-25. This reflected sustained demand for financial, technology and professional services. Meanwhile, Public Administration, Defence and Other Services grew by 5%, matching the previous years performance.

Monetary policy also supported economic activity by creating favourable financing conditions for businesses and consumers. Throughout FY 2025-26, the Reserve Bank of India (RBI) adopted a growth-oriented policy approach. It reduced the repo rate by a cumulative 125 basis points, from 6.50% to 5.25%. The cuts aimed to encourage credit expansion, support investment and strengthen domestic demand. They also responded to an evolving macroeconomic landscape. However, at its June 2026 Monetary Policy Committee (MPC) meeting, the RBI paused further action. It retained the repo rate at 5.25% and maintained a neutral policy stance. This signalled confidence in the balance between growth prospects and inflation dynamics.

Inflation trends during the year reflected a changing macroeconomic environment, with price pressures re-emerging after a prolonged period of moderation. Consumer Price Index (CPI) inflation stood at 4.38% in June 2026, crossing the Reserve Bank of Indias medium-term target of 4% for the first time in over a year. The increase was primarily driven by higher food prices, with Consumer Food Price Index (CFPI) inflation at 5.32%, while rural inflation rose to 4.74%, contributing to the overall increase in consumer prices.

Producer prices also recorded a notable increase during the period. Wholesale Price Index (WPI) inflation rose to 9.68% in May 2026. This reflected higher input costs, particularly for crude petroleum, natural gas and other fuel-related products. The gap between wholesale and consumer inflation highlighted persistent cost-side pressures. It also underscored the importance of maintaining macroeconomic stability while supporting sustained economic growth.

Indias external sector remained well supported by robust foreign exchange reserves, providing a strong buffer against external vulnerabilities. As of 19^th June, 2026, reserves stood at US$ 672.6 Billion. This was sufficient to finance approximately 10.3 months of imports. It underscored Indias comfortable external liquidity position. The reserves also covered 90.6% of external debt, remaining adequate by other standard measures.

The RBI attributed this resilience to policy initiatives that strengthened the balance of payments. These included expanded trade partnerships and permitting 100% foreign direct investment (FDI) in the insurance sector. Continued progress under the ethanol blending programme also supported resilience. Other measures included support for the energy transition, relaxed FDI norms for neighbouring countries, and liberalisation of the External Commercial Borrowing (ECB) framework. Meanwhile, the Government fast-tracked FTAs and renewed trade agreements with several key nations. The landmark FTA with the EU, signed in January 2026, is likely to transform Indias medium-term external trade landscape.

Although foreign exchange reserves moderated from a record US$ 728.5 Billion in February 2026, they remained strong. As of 19^th June, 2026, reserves stood at US$ 672.6 Billion. The decline mainly reflected RBI interventions to manage exchange rate volatility amid geopolitical tensions in West Asia. Nevertheless,

the reserve position continued to provide significant protection against external shocks. The RBI also reaffirmed its commitment to orderly market conditions. It will continue using appropriate liquidity management and both regulatory and market-based measures.

Looking ahead, the RBI expects Indias external sector to remain resilient despite global trade uncertainties and elevated energy prices. These factors could pressure the current account balance. However, healthy services exports and sustained inward remittance inflows are expected to offset these risks. Together, they should support overall external stability.

INDIAN BANKING SECTOR

The banking sector is one of the countrys core pillars of economic development. It supports growth by mobilising savings, expanding credit access, and strengthening financial inclusion. The industry faces evolving regulations, rising operational costs, and intensifying competition from fintech firms. However, it also benefits from rapid digital adoption, policy reforms, and changing customer expectations. Innovations such as UPIs global expansion, rising fintech investments, and initiatives like the Jan Dhan Yojana are reshaping the sector. Together, they are fostering a more technology-driven, inclusive, and resilient banking ecosystem.

According to the RBI, the Indian banking sector remains well- capitalised under a robust regulatory framework. The countrys financial system has demonstrated strong stability and resilience. Credit, market, and liquidity risk assessments indicate banks can withstand global economic uncertainties. Meanwhile, the sector has embraced innovative banking models, including payments banks and small finance banks. These developments have further expanded financial access and strengthened competition across the industry.

Key Performance Indicators

Capital Markets

Indias capital markets demonstrated remarkable depth and resilience during FY 2025-26. This was supported by a stable macroeconomic environment, sustained corporate profitability, and growing investor confidence. The primary market remained highly active. Consequently, India retained its leadership in global initial public offering (IPO) activity. Strong fundraising momentum throughout 2025 enabled companies across sectors to access capital efficiently. Total equity issuances are projected between ^ 1.80 lakh Crore and ^ 1.90 lakh Crore. This reflects robust investor appetite and healthy market liquidity.

Retail investor participation emerged as a key growth driver. The widespread adoption of digital investment platforms improved

financial accessibility. As a result, first-time investors entered capital markets at an accelerated pace. During FY 2025-26 (up to December 2025), over 235 lakh new demat accounts were opened. This increased the total beyond 21.6 Crore. Meanwhile, the number of unique investors surpassed 12 Crore. Women accounted for nearly one-fourth of the investor base. This highlights the growing inclusiveness of Indias financial ecosystem.

The mutual fund industry also attracted a wider investor base. The number of unique mutual fund investors increased to 5.9 Crore. Meanwhile, household savings continued shifting towards financial assets. This reflects rising financial awareness, deeper market penetration beyond metropolitan centres, and continued progress in digitalisation and financial inclusion.

Asset Quality

Indias banking sector strengthened its financial position during FY 2025-26. This reflected sustained improvements in asset quality, capital adequacy, and balance sheet resilience. Scheduled Commercial Banks (SCBs) recorded their strongest asset quality in over two decades. The Gross Non-Performing Asset (GNPA) ratio declined to 2.1% in March 2026 from 11.2% in 2018. Meanwhile, the Net NPA ratio fell to a historic low of 0.47%.

This highlighted the success of the sectors ongoing clean-up efforts.

This improvement stemmed from regulatory reforms, prudent risk management, stronger corporate balance sheets, and sustained credit growth. Measures introduced through the Reserve Bank of Indias Asset Quality Review played a key role. In addition, the Governments 4R strategy, comprising Recognition, Resolution, Recapitalisation and Reforms, strengthened the banking system. Higher provisioning also enhanced loss absorption capacity. Consequently, the Provision Coverage Ratio (PCR) rose to 93.23%. Meanwhile, the Capital to Risk-Weighted Assets Ratio (CRAR) remained strong at 17.24%. This provided banks with a solid buffer against economic and financial shocks.

However, the microfinance sector followed a different trajectory during FY 2025-26. Lenders prioritised portfolio quality over rapid expansion. Elevated stress had emerged from borrower overleveraging, adverse climatic events, and operational challenges. Consequently, institutions adopted stricter underwriting standards and strengthened credit monitoring. Regulatory initiatives, including MFIN Guardrails, also promoted disciplined lending. These measures tightened borrower eligibility norms and limited excessive household credit exposure.

These corrective measures supported a gradual recovery in portfolio quality despite slower business growth. By March 2026, the Portfolio at Risk (PAR) for the 31-180-day bucket improved to 2%. This compared with levels above 6% a year earlier. Additionally, the sector recorded a 30.9% year-on-year increase in debt funding. Commercial bank borrowings primarily drove this growth. As a result, liquidity and lending operations remained well supported.

Credit and Deposit Growth

Indias banking sector maintained healthy balance sheet expansion during FY 2025-26. This was supported by steady deposit mobilisation and sustained credit demand across retail, MSME, and corporate segments. As of 31st May, 2026, aggregate bank deposits stood at Rs. 260.02 Trillion. This reflected a 12.21% year-on-year increase. Deposit growth also coincided with shifting customer preferences. Depositors increasingly favoured fixed deposits over Current Account and Savings Account (CASA) balances. Attractive interest rates drove this shift and altered banks funding mix.

Meanwhile, credit growth continued to outpace deposit mobilisation. Outstanding bank credit rose 17.65% year-on-year to Rs. 215.15 Trillion as of 31st May, 2026. Growth reflected strong retail loan demand and continued MSME financing requirements. Higher corporate borrowing through the banking system also supported lending growth. In addition, lower corporate bond issuances encouraged greater reliance on bank credit.

Consequently, credit expansion outpaced deposit growth, widening the gap between fund mobilisation and lending. As a result, the banking systems Credit-Deposit (C-D) ratio exceeded 82.75% as of 31st May, 2026. This trend underscores the growing intensity of credit deployment. It also highlights the need to maintain adequate funding for future lending. The C-D ratio has remained above 80% since December 2024.

In response, banks continued to diversify their liability profiles beyond conventional retail deposits. They also strengthened deposit mobilisation efforts. Meanwhile, lenders increasingly accessed wholesale funding markets, issued certificates of deposit, and introduced competitive term deposit products. These measures helped augment liquidity. As a result, banks sustained robust credit growth while preserving liquidity buffers and maintaining financial stability.

Net Interest Margin

Profitability across the banking sector came under pressure during FY 2025-26 as rising funding costs offset strong loan growth. Although credit demand remained healthy, Net Interest Margins (NIMs) gradually moderated. As a result, the industry average declined from around 3.5% to approximately 3.1-3.2% by the end of the fiscal year.

The margin declines largely reflected higher liability costs. Intense competition for deposits prompted banks to offer more attractive term deposit rates. Meanwhile, customers shifted savings from low-cost CASA accounts to higher-yielding fixed

deposits. This change in deposit mix increased the overall cost of funds. However, lending yields remained relatively stable due to competitive pricing and a stronger preference for secured lending over higher-yield unsecured credit.

REVIEW OF BUSINESS SEGMENTS AND OPERATIONS

RBL Bank operates across multiple business verticals, which include:

1. Wholesale Banking

• Corporate and Institutional Banking (C&IB)

• Commercial Banking (CB)

2. Branch Banking and Retail Liabilities (BBRL)

3. Retail Assets

4. Treasury and Financial Markets Operations Wholesale Banking

This business segment serves corporates and other institutional clients across industries with comprehensive financial solutions across sectors and geographies. To meet diverse client needs, the Wholesale Banking business is organised into specialised relationship verticals based on client segments. Dedicated teams support these verticals by delivering Trade, Cash Management, and Treasury solutions. The focus is to become the preferred banking partner for clients. It facilitates daily financial transactions while extending retail banking products, including deposit accounts, investments, and cards, to employees of corporate clients. Client segments are detailed below:

Government Banking Group

The Government Banking Group is a specialised division providing end-to-end banking solutions to Public Sector Units, government bodies, and local authorities. It also manages relationships with key government stakeholders. The group facilitates revenue collection by enabling payments for direct and indirect taxes, including GST and income tax. It also supports stamp duty and utility collections on behalf of government treasuries.

Additionally, the group drives digital integration by connecting the Banks systems with platforms such as e-Kuber, e-Procurement, NCMC, and the Public Financial Management System. This enhances operational efficiency and ease of doing business. It also supports the implementation and distribution of government-sponsored schemes, including Ayushman Bharat and other social welfare initiatives. Furthermore, it provides corporate banking services to central and state PSUs, including

term deposits, fund management, and foreign exchange facilities.

Corporate Banking

This segment serves corporates with an annual turnover exceeding Rs. 1,500 Crore, or Rs. 2,000 Crore in Mumbai and Delhi. Its core offerings include working capital financing, supply chain finance, cash management, transaction banking, project finance, loan syndication, term loans, and forex. The bank also leverages its GIFT City presence to offer customised financing solutions for the offshore requirements of Indian companies.

The strategy focuses on de-risking the balance sheet through a diverse portfolio with robust asset quality. Lending primarily supports cross-selling of capital market services, trade, forex, in addition to cross-sell of retail banking products. The segment also prioritises digital adoption through API Banking and the online TradeX platform. These solutions help corporates streamline transaction banking, approve transactions online, and manage bulk payments and collections efficiently.

MNC Banking

MNC Banking is structured around two distinct client segments: Conventional MNC Banking and Digital Business. Conventional MNC Banking serves multinational corporates in India, including newly incorporated entities. It has no minimum turnover requirement for onboarding. Core offerings include working capital, transaction banking, treasury, and surplus funds management. Transaction banking covers trade, CMS, and Host- to-Host payments. The Bank also leverages GIFT City products to strengthen its value proposition. Assets remain the relationship anchor. Most MNCs seek a local partner for comprehensive banking services.

Digital Business focuses on digital and payment infrastructure through API Banking Solutions. The Bank has emerged as a leading player in Rupee Drawing Arrangement (RDA). It facilitates cross-border remittances through Vostro Accounts. In addition, the business offers Merchant Acquiring Services for Payment Aggregators (PAs). These services support domestic and international card settlements under escrow account mandates. They also enable UPI settlements for global payment companies. Consequently, the Bank occupies a key position in Indias digital payment ecosystem for international customers.

Commercial Banking

The Commercial Banking division provides integrated financial solutions to Small and Medium Enterprises (SMEs) and MidMarket Enterprises (MMEs). It serves companies with annual revenues between Rs. 50 Crore and Rs. 2,000 Crore. The business follows a relationship-led approach. It supports growth through

customised financing, transaction banking, and advisory services. During FY 2025-26, Commercial Banking remained a key growth engine. It also strengthened the Banks reimagined wholesale banking strategy. This was driven by sustained credit growth, strong transaction-led revenues, and disciplined risk management.

A key strategic priority for this business is to become clients preferred transaction banking partner. The division delivers differentiated solutions across transaction-intensive industries. It also aims to generate superior returns on capital. Meanwhile, revenue streams continued to diversify. Transaction-led income increased through trade finance, foreign exchange, cash management, capital market services, and processing fees.

Supply Chain Financing

The Supply Chain Finance franchise provides comprehensive working capital solutions across the supply chain ecosystem. It serves corporates, suppliers, dealers, distributors, and channel partners. The offering includes Sales Bill Discounting and Dealer Finance under Corporate Sales. These solutions improve liquidity and support sales growth. It also includes Purchase Bill Discounting and Vendor Finance under Corporate Purchase. These offerings enable efficient supplier payments and stronger vendor relationships.

Through the Trade Receivables Discounting System (TReDS) platform, MSMEs receive timely financing against approved invoices. This promotes financial inclusion and faster access to funds. The division also offers tailored financing solutions for channel partners. These address both short-term and long-term working capital requirements. As a result, they support business expansion and operational continuity.

Additionally, the portfolio contributes to the Banks Priority Sector Lending (PSL) objectives. It extends credit to eligible MSMEs and supply chain participants. By leveraging technology-driven processes, robust risk assessment, and ecosystem-based financing, the segment optimises cash flows. It also strengthens supply chain resilience and supports sustainable growth.

New Economy Group

This specialised division provides end-to-end banking solutions to high-growth businesses. These include private equity and venture capital-backed start-ups, cross-border companies, and entities with GIFT City requirements. The group also supports start-up clients throughout their entrepreneurial journey. The offerings include:

• Tailored Solutions: These encompass operating accounts, including global accounts through the GIFT City Branch covering liquidity management, transaction banking, digital solutions, payments and collections, FX advisory, investment banking, strategic advisory services, and bespoke banking solutions. The Bank partners with clients throughout their growth journey. Consequently, it enables seamless domestic and international banking.

• Integrated Financing: The Bank helps meet the growth needs of venture-funded companies with debt financing, reporting and reconciliation tools, and services to help with complex placements and international expansion.

Financial Institutions Group

The group serves a broad spectrum of financial institutions. These include NBFCs, mutual funds, capital markets, alternative investment funds (AIFs), insurance companies, fintechs, and domestic and international banks. It offers customised financial solutions across corporate lending, transaction banking, treasury products, and capital market services.

The Wholesale Banking segment provides a comprehensive range of products and services, including:

Funding Solutions: These include working capital finance, term loans, supply chain financing, and export financing. These are offered in Indian Rupees and foreign currencies through RBL Bank branches and its GIFT City unit. The segment also provides specialised funding solutions for capital markets, gems and jewellery, real estate, and infrastructure.

Transaction Banking

The Bank continued to strengthen its Transaction Banking franchise during FY 2025-26. Fee revenue grew by 32%, while the non-fund book increased by 28%. This reflected sustained growth across its trade and cash management businesses. The comprehensive suite of products offered under Trade Finance is as follows:

Trade Finance

• Export Credit (Pre and Post)

• Invoice Financing

• Bill Discounting

• Factoring (including TReDS)

• LCBD (Discounting of Bills under Letter of Credit)

Trade and Supply Chain Services

• Cross Border Remittances (Trade and Non-Trade)

• Bank Guarantees, including Electronic Bank Guarantees

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• Letters of Credit

• Standby Letters of Credit for Buyers Credit

• Gold Card Scheme for Exporters (Regulatory Offering)

GIFT City Offerings

• Buyers Credit Loans

• Letters of Credit

Cash Management Services (CMS): Solutions like customised escrow services, dividend payment services, CSR accounts, share application accounts, and Qualified Institutional Placement (QIP) monitoring accounts:

Solutions under CMS are as follows -

A. Receivables Management

• Physical Collections of Cash and Cheques under CMS framework

• Electronic Collections using Collection Identifiers (Virtual Accounts)

• Electronic Collections as a Sponsor Bank through NACH

• Currency Chest management

B. Payables Management

• Dividend Payout and Account Management

• Bulk Electronic Payments

• CMS platform (BIB/Finnaxia)

• Integrated Offering through ERP (SAP among others)

• H2H and SFTP-based bulk processing.

• Collections and Payments through API Government Banking Solutions: This includes:

a. Agency Bank Tax Collection

• Central Direct Taxes

• Central Indirect Taxes (GST and Customs)

• State Taxes

b. PFMS-Linked Payment Services

Treasury Solutions: Foreign exchange hedging and risk management solutions that help clients manage currency and market risks. Covered in detail under the Treasury & Market section.

Deposit Products: A range of deposit offerings, including term deposits, savings accounts, current accounts and Vostro accounts for international banks.

Digital Banking Services: Digital platforms that enable efficient payment processing and collections. Built on a partnership-led model, the Banks Digital Banking Business leverages API Banking Solutions to integrate with a diverse Fintech ecosystem. As a result, it enables efficient domestic and cross-border payments for corporate and institutional clients. The Bank positions itself as an enabling banking partner, combining its regulatory licence,

balance sheet strength and compliance infrastructure with the agility and innovation of its Fintech partners.

Investment Banking Services: Advisory and execution services for mergers and acquisitions (M&A) and private equity transactions.

Insurance and Investment Solutions: Tailored insurance and investment offerings designed to meet corporate client requirements.

Salary Account Solutions: Customised salary account

programmes and related banking services for employees of corporate clients.

Authorised Dealer Services: Foreign exchange and crossborder transaction services to facilitate international trade and payments.

Key Highlights

• Strong Credit Momentum: Wholesale Banking remained one of the Banks primary growth engines. It delivered 27% year- on-year growth in advances during FY 2025-26.

• Growth in Deposits and Fee Income: Contributed to the Banks overall deposit growth, achieving 40% year-on-year growth through transaction-intensive corporate relationships. The business also remained self-funded.

• Cluster Strategy: The Commercial Banking segment now operates across 20 clusters under the SME cluster strategy. This expansion supports the Banks growth agenda by tapping emerging commercial hubs and high-potential regional markets.

• Investment in Distribution: Expanded relationship management and credit teams across existing markets. It also selectively entered new geographies to support sustained business growth. ^•

• Technology-led Client Experience: Enabled large-scale

acquisition and onboarding of trade and cash flows through industry value chain-focused integrated solutions (API, H2H).

• Enhanced Tax Payment Infrastructure: Further strengthened the State tax payment ecosystem in Karnataka and Telangana. This enabled seamless, automated tax payment processing for corporate customers.

Branch Banking and Retail Liabilities

The Branch Banking and Retail Liabilities (BBRL) segment offers a comprehensive suite of banking products and services. These are delivered through an integrated omnichannel network comprising branches, ATMs, Relationship Managers, Contact Centre, Virtual Relationship Managers, WhatsApp Banking, Mobile Banking, Internet Banking, ChatBot and the Business Banking App. The Banks branches have evolved into universal banking centres. They offer liability products, retail assets, wealth solutions and digital banking services under one roof.

During the year, the Bank continued to optimise its branch network. It also introduced focused initiatives to enhance customer experience through differentiated target segment propositions. These initiatives were supported by strong digital capabilities. The Bank crossed the milestone of 600 branches, expanding its network to 627 by June 2026.

Deposit Franchise

Branch Banking remained the cornerstone of the Banks deposit franchise. It supported low-cost granular deposit growth. Total deposits increased 25% year-on-year to T 1,39,018 Crore. Deposits below T 3 Crore grew to T 63,943 Crore, representing 46% of total deposits. Within this portfolio, granular term deposits grew 24% year-on-year. This further strengthened funding diversification and stability.

Asset and Liabilities Cross-Sell

The BBRL segment continued to drive retail asset growth. It achieved this through high-engagement cross-selling across the branch network.

Digital Engagement Channels

Digital banking remains central to the Banks transformation strategy. It leverages technology to deliver seamless, secure and intuitive customer experiences. Continued investments in digital capabilities strengthened customer engagement. They also increased the adoption of self-service banking.

MyBank

In July 2025, RBL Bank marked a significant digital transformation milestone with the launch of MyBank. This unified mobile banking application combines the earlier MoBank and MyCard platforms. It delivers a seamless and secure banking experience. The app

provides retail customers access to over 200 banking products and services. These include savings accounts, deposits, credit cards, loans, investments and payments through a single interface.

During FY 2025-26, the Bank further enhanced the platform with new features and capabilities. Customers can now initiate Positive Pay for cheque transactions. They can also enable Tap & Pay on debit cards. Additionally, they can make payments to over 21,000 billers through the app. The platform now serves customers with asset-only relationships. These include Home Loans, Loan Against Property (LAP), Personal Loans, Used Car Loans and Two-Wheeler Loans, allowing them to register and access a wider suite of banking services digitally.

RBL Diplomat App

The RBL Diplomat App is integral to the Banks digital banking ecosystem. It delivers a secure and tailored banking experience for diplomatic customers. Designed for diplomats and foreign nationals with embassies, consulates, UN and international organisations, the platform meets their unique banking needs. It also complements the Banks relationship-led service model by providing seamless access to specialised banking services through a dedicated digital interface.

BizBank: Corporate Mobile Banking

The RBL BizBank mobile application provides a secure and convenient banking platform for corporate and MSME customers. It enables them to initiate, authorise and monitor transactions anytime, anywhere. During FY 2025-26, the Bank launched BizBank 2.0. The upgraded platform introduced an enhanced interface and expanded functionality. As a result, it delivered a more intuitive and feature-rich mobile banking experience for corporate customers.

The platform also evolved alongside the Banks broader corporate digital ecosystem. It complemented Corporate Internet Banking (CIB) and supported key initiatives. These included the Unified Presentment and Management System (UPMS) for automated recurring bill payments. They also included a digitised Fixed Deposit (FD) closure journey with a secure maker-checker workflow. Additionally, accessibility features for Persons with Disabilities (PwDs) were introduced. This made digital banking more accessible to a wider customer base.

Retail Internet Banking (RIB)

RBL Banks web-based Retail Internet Banking (RIB) platform offers a secure and seamless digital banking experience. During FY 2025-26, the Bank enhanced the platform with integrations

for government tax payments, access to social schemes and advanced fund transfer capabilities. Consequently, customers benefited from greater convenience and a broader range of services.

Corporate Internet Banking (CIB)

The Banks Corporate Internet Banking (CIB) platform provides corporate and business customers with a secure web-based banking interface. It supports payments, collections, liquidity management and account services. Robust authorisation controls, including a maker-checker framework, ensure secure transaction processing. The platform also enables efficient fund transfers, tax payments and other corporate banking activities. During FY 2025-26, the Bank further strengthened CIB with enhanced automation, expanded self-service capabilities and improved regulatory compliance.

WhatsApp Banking

The Banks WhatsApp Banking service offers a secure and convenient conversational banking experience through registered mobile numbers. Customers can quickly access account information, credit card details, branch and ATM locators, and other self-service requests. For NRI customers, the platform also delivers internet banking OTPs securely. This enhances both convenience and account security. During FY 2025-26, the Bank further expanded the channel with new self-service capabilities and customer engagement features.

Key Enhancements in FY 2025-26

• Credit Card Block and Reissue: Introduced a self-service journey enabling customers to instantly block and request the reissue of their credit cards through WhatsApp, providing a faster and more convenient response to lost or compromised cards.

• Digital Credit Card Activation: Launched an end-to-end Credit Card Activation journey, allowing customers to activate newly issued cards directly through WhatsApp and simplifying the onboarding experience.

• Retail Asset Document Services: Enabled retail loan customers to download their Statement of Account and Interest Certificate through WhatsApp, providing instant access to important loan documents without visiting a branch. ^•

• Customer Feedback (NPS) Integration: Integrated the Net Promoter Score (NPS) journey into WhatsApp Banking, allowing customers to share real-time feedback on their

banking experience and helping the Bank strengthen customer satisfaction initiatives.

Additional Digital Banking Services

During FY 2025-26, the Bank continued to strengthen its digital banking ecosystem by expanding payment capabilities, enhancing capital market services, and broadening government payment infrastructure across its digital channels.

NPCI-led Digital Payment Innovations

RBL Bank introduced several advanced digital payment capabilities in collaboration with the National Payments Corporation of India (NPCI), reinforcing its focus on innovation and customer convenience. Key initiatives included:

• OS-native biometric authentication for UPI transactions, enabling secure PIN-less payments using a devices built-in biometric authentication.

• IoT-enabled UPI payments, allowing customers to initiate transactions through compatible wearable and connected devices such as smartwatches.

• UIDAI-based face authentication for secure UPI PIN reset journeys, simplifying customer onboarding and authentication.

• Deployment of a Small Language Model (SLM)-powered chatbot on the Banks website to provide real-time support for UPI-related queries and grievance resolution.

• Implementation of the Unified Presentment and Management System (UPMS) on the Corporate Internet Banking platform to automate recurring bill presentment and payments for utility services.

eASBA and Capital Market Services

The Bank continued enhancing its digital capital market offerings through its Electronic Application Supported by Blocked Amount (eASBA) platform. The platform enables customers to apply seamlessly for IPOs and NFOs through digital channels. Digital adoption remained strong. Over 80% of new savings accounts and approximately 65% of term deposits were opened digitally. Over FY 2025-26, the application value processed through the RBL Bank ASBA platform grew by 73%. This growth reflected stronger customer engagement and wider adoption.

Government Tax Payment Services

RBL Bank further expanded its digital government banking offerings. It extended state tax payment services across its Retail and Corporate Internet Banking platforms. During FY 2025-26, the Bank enabled digital collection of Karnataka and Telangana state taxes. Customers could conveniently pay Excise Duty, Profession Tax, Luxury Tax and Entry Tax through online banking channels. The Bank also introduced the CBTD Bulk Tax Upload feature on Corporate Internet Banking. This enabled corporate customers to process high-volume tax payments more efficiently. It also ensured compliance with regulatory requirements. RBL Bank processed 21% more tax payments during the year. This reflected stronger adoption of digital tax payment services.

Segments and Servicing

The Bank has segmented its affluent customer base into three relationship banking segments: Insignia, Signature and Aspire. Each segment addresses personal banking, wealth management and business banking needs. Dedicated Relationship Managers and product specialists support these offerings. This relationship- led approach provides customers with tailored Banking, Wealth Management and Lending solutions.

As of FY 2025-26, dedicated Relationship Managers managed 44% of the Branch Banking portfolio by value. This reflected the Banks strong focus on consultative and high-touch customer engagement.

During FY 2025-26, the Bank launched Insignia Business Banking for HNI business clients. The proposition combines bespoke business banking solutions with enhanced personal banking and lifestyle privileges. It also includes corporate salary solutions with employee benefits. Together, these offerings deliver a comprehensive banking ecosystem for business owners and their workforce.

Key Enhancements over FY 2025-26:

• Money Max Auto Sweep Enhancement: Introduced segment- based Money Max sweep-out thresholds to optimise idle balances. Limits were Rs. 10 lakh for Insignia, Rs. 5 lakh for Signature, and Rs. 2 lakh for Aspire customers.

• Nucleus: It is an integrated, relationship-based product construct centred on a Current or Savings Account. It deepens customer engagement by seamlessly bundling multiple banking products and services. Customers maintaining active relationships across loans, deposits, cards, investments, or payment solutions receive enhanced value propositions. These include waivers of non-maintenance charges and other benefits. Consequently, the framework strengthens customer primacy, improves stickiness, and promotes cross-selling. It also enhances relationship profitability and the overall customer experience through a lifecycle-based banking approach.

• Virtual Relationship Management: Expanded digital

relationship banking through Virtual Relationship Manager (VRM) services. This enables customers to receive personalised advisory and banking support remotely. At the same time, it preserves the high-touch service experience traditionally offered through branches.

Debit Cards

RBL Bank offers a comprehensive portfolio of Debit Cards to meet the diverse banking and lifestyle needs of retail, affluent, and business customers. The portfolio serves a broad customer base, including High-Net-Worth Individuals (HNIs), salaried professionals, woman entrepreneurs, startup founders, and SME owners. Each product is tailored to specific financial needs and spending preferences. The Banks debit card portfolio includes Insignia Preferred Banking, Signature Banking, Aspire Banking, Enterprise, Signature+, Pinnacle, Crest, VISA Platinum, VISA Classic, Business First, Platinum First, Womans First, India Startup Club, GO, Next, Titanium, and RuPay Debit Cards.

Key Enhancements in FY 2025-26

• Insignia Preferred Banking Business Debit Card: A premium offering for Insignia business banking customers. It enhances transaction convenience, control, and security. The product strengthens the Banks proposition in the high-value business segment by delivering curated privileges and a superior banking experience.

• Insignia Preferred Banking Debit Card: Enhanced to deliver a best-in-class value proposition. The refresh maintains competitiveness against leading market offerings. It improves benefits, customer experience, and premium positioning.

• NEXT and Elevate Debit Cards: Introduced for higher-income salaried customers. These cards offer cashback, lounge access, and lifestyle benefits. Exclusive welcome offers and higher transaction limits encourage activation, spending, and customer loyalty.

• Revelio Debit Card: A travel-focused card for young, aspirational customers. It offers curated travel benefits and exclusive offers. As a result, it aligns with evolving preferences and strengthens its lifestyle appeal.

• Finja Debit Card: Designed for customers below 18 years. It promotes early financial inclusion and responsible money management. Furthermore, it supports the Banks objective of engaging customers early in their financial journey.

• PMJDY Debit Card: A financial inclusion initiative for underserved segments. It enables access to basic banking services. Consequently, it reinforces the Banks commitment to inclusive growth and formal banking access.

• Signature and Aspire Banking Credit Card: Card designed exclusively for Signature & Aspire segment, offering multiple benefits across movie offers, travel lounges, fuel benefits along with a strong cashback benefits for customers on cards spend.

New Debit Card Management System (DCMS): Following the switch migration, the Bank onboarded a new Debit Card Management System (DCMS). The platform enhances frontline servicing capabilities. As a result, service teams process customer requests faster and improve the overall card management experience.

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Specialised Online Digital Remittance Platform under LRS

RBL Bank offers a comprehensive digital remittance platform under the Liberalised Remittance Scheme (LRS). It enables customers to remit funds overseas quickly, securely and conveniently across 16 international currencies. The platform delivers a seamless digital experience through simplified documentation, competitive foreign exchange rates and some of the markets lowest remittance charges. Additionally, the Bank charges no processing fees for education-related remittances. It also offers Nil Tax Collected at Source (TCS) on eligible education loan-funded remittances, subject to applicable regulatory guidelines.

Key Enhancements in FY 2025-26

• International Remittances on MyBank: Enabled International Money Transfer (LRS) services on the unified MyBank mobile application. Retail customers can now initiate and manage overseas remittances alongside savings accounts and credit cards on one platform.

• GIFT City Outward Remittance Journey: Expanded the Banks International Banking Unit (IBU) capabilities through outward remittance journeys for GIFT City customers. These services are available on both the MyBank app and Retail Internet Banking (RIB). Consequently, customers enjoy improved digital access to international banking services.

• In-house Technology Transformation: Transitioned

development of Do-It-Yourself (DIY) digital remittance journeys to in-house technology teams. This increased operational

agility, reduced external dependencies and enabled higher Straight-Through Processing (STP).

• Enhanced Compliance and Risk Controls: Upgraded the remittance platform through the RAMP enhancement. This strengthened negative customer validation across all remittance channels. Consequently, it improved fraud prevention, strengthened operational controls and ensured regulatory compliance.

Insurance

RBL Bank offers a comprehensive portfolio of life, health, and general insurance products through partnerships with eight leading insurers. These include HDFC Life Insurance, Bajaj Allianz Life Insurance, ICICI Prudential Life Insurance, Life Insurance Corporation of India, Bajaj General Insurance, ICICI Lombard General Insurance, Aditya Birla Health Insurance, and Care Health Insurance. The Bank also continues strengthening its Digital Bancassurance Platform. It is evolving from assisted sales journeys into a comprehensive 360-degree platform. The platform supports the entire customer lifecycle, from product discovery and purchase to servicing and post-sales support.

Key Enhancements in FY 2025-26

• Digital Enrolment for Government Insurance Schemes: Enabled end-to-end digital enrolment for the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) through Retail Internet Banking (RIB). Customers can now enrol for life and personal accident insurance through a simplified, paperless digital process.

• Expanded Financial Inclusion through Ayushman Bharat: Supported the Governments financial inclusion and healthcare initiatives by facilitating 20,000 Ayushman Bharat Cards for eligible priority families. This initiative improved access to healthcare while reducing the financial burden of medical emergencies.

• Enhanced Insurance Claim Experience: Introduced streamlined claim settlement processes for Primario prepaid cards.

Consequently, turnaround times (TATs) improved, delivering a more efficient insurance claims experience.

Investments

The Bank strengthened its investment and wealth management franchise during FY 2025-26. It expanded digital capabilities and enhanced investment solutions through the Invest First++ platform. A key offering is the integrated 3-in-1 account. It combines an RBL Bank savings account, an IIFL Securities Limited trading account, and an RBL Bank Demat account. This enables customers to manage banking and investment activities through one ecosystem. Meanwhile, the Banks digital- first strategy gained strong traction. Around 88% to 89% of Mutual Fund Systematic Investment Plans (SIPs) were initiated through the MyBank app and Retail Internet Banking (RIB). Digital adoption also remained strong across deposit products. Approximately 95% of Smart Deposits were opened through digital channels.

During the year, the Bank identified wealth management and investments as strategic growth areas. Accordingly, it expanded its distribution network and branch presence to strengthen advisory-led services for premium customer segments. To support this strategy, the Bank completed the migration of its Wealth Management System (WMS) across all branches. This improved operational efficiency and strengthened data- driven advisory capabilities for Relationship Managers serving the Insignia, Signature, and Aspire segments. Together, these initiatives strengthened the Banks investment ecosystem. They combined digital convenience with relationship-led advisory services. They also expanded access to mutual funds, Smart Deposits, Portfolio Management Services (PMS), Alternative Investment Funds (AIFs), and Structured Products.

Important Channels and Client Segments Non-Resident Indians (NRI) Segment

RBL Bank strengthened its Non-Resident Indian (NRI) banking franchise during FY 2025-26. It achieved this through digital innovation, strategic partnerships, and expansion across key remittance corridors. Supported by a dedicated relationship management model and digital-first offerings, the Banks NR granular deposit book grew by 18% during the year. To further enhance customer experience, the Bank introduced several digital initiatives:

• GIFT City Savings Accounts: Launched GIFT City Savings Accounts for Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), and Foreign Nationals (FNs). These accounts offer multi-currency capabilities across six major global currencies. The initiative strengthens the Banks international

banking proposition. It also enables seamless access to global investment opportunities through RBL Banks GIFT City platform.

• Digital Enablement in GIFT City: Enhanced digital banking infrastructure by enabling end-to-end digital journeys. These include intra-bank fund transfers, outward remittances, and fixed deposit bookings through Mobile Banking and Net Banking. As a result, customers enjoy a seamless and efficient banking experience.

• FCY FDs: Through its International Banking Unit (IBU) at GIFT City, the Bank enabled digital booking of Foreign Currency Fixed Deposits (FCY FDs).

• Enhanced Remittance Services: Implemented IMPS-to-NEFT auto-routing for inward RDA transactions. It also enabled international money transfers from NRE accounts through the MyBank mobile application. Additionally, the Bank offers SWIFT payments, outward and inward remittances, and competitive forex rates.

• WhatsApp Banking for NRIs: Enabled secure delivery of Internet Banking OTPs through WhatsApp. This improved convenience and authentication for overseas customers.

Additionally, the Bank strengthened its market presence by

expanding its remittance network and physical footprint across

key NRI markets.

Complementing these initiatives, the Bank continued to offer attractive Foreign Currency Non-Resident (FCNR) deposit rates, including returns of up to 5.85% p.a. on US$ deposits and 4.20% p.a. on GBP deposits, further strengthening its value proposition for overseas customers.

Diplomatic Banking

RBL Bank operates a dedicated Diplomatic Banking vertical, making it one of the few banks in India with an experienced and specialised relationship and service team. Operating across India, the team focuses exclusively on the banking needs of diplomatic missions, UN agencies, and international organisations. The Bank is the proud official partner of 124 of the 166 countries represented in India.

The segment serves 99 diplomatic missions and 97 divisions in Delhi. It also caters to 42 consulates, 31 divisions, and five Honorary Consuls across the country. The Bank manages relationships with more than 2,500 diplomats, official foreign staff, and UN and international organisation representatives from over 152 countries. It provides specialised banking services across Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Bengaluru, Thiruvananthapuram, and Puducherry.

To meet the unique banking requirements of diplomatic customers, the Bank offers a suite of niche and specialised products and services. These are tailored to the needs of diplomatic missions and their personnel. The Bank has also established designated branches and service infrastructure across India, including two exclusive Diplomat Branches in Delhi for diplomatic and international clients.

In addition, the Bank offers a secure digital platform for foreign currency transactions and other specialised banking requirements. This ensures seamless and efficient service delivery.

Through its dedicated relationship model, specialised service infrastructure, and customised banking solutions, RBL Bank continues to strengthen its position as a preferred banking partner for diplomatic missions and international organisations operating in India.

Trusts, Associations, Societies and Clubs (TASC)

RBL Banks Trusts, Associations, Societies and Clubs (TASC) business is a key contributor to its liability franchise. It also supports the Banks deposit mobilisation strategy. The segment serves diverse institutional customers. These include educational institutions, cooperative societies, government bodies, religious trusts, and other not-for-profit organisations. It offers specialised banking and cash management solutions.

Asset-Led Liabilities

RBL Banks asset-led liabilities remained a key growth pillar during FY 2025-26. Growth was driven by strong asset disbursals and increased branch-led sourcing. It was further supported by scaling newer businesses. These included Gold Loans, business banking loans, Loan Against Property (LAP), and home loans.

More than T 7,500 Crore of disbursals came through branch-led sourcing. The Gold Loan business became fully branch driven. Branch-led disbursements reached a monthly run rate of T 1,000 Crore. Asset disbursals recorded year-on-year growth of over T 200 Crore.

Retail Assets

Secured Loan Programmes

RBL Banks Secured Loan Programmes remained a key pillar of its growth strategy during FY 2025-26. Strong portfolio expansion drove this performance. A strategic shift towards branch-led sourcing also supported growth. The Bank further strengthened its MSME focus through Business Banking loans and Loan Against Property. It also scaled newer businesses, including Loan Against Gold Ornaments, Affordable Home Loans, and Small and Micro Loan Against Property (LAP). Meanwhile, the Bank expanded its presence in semi-urban and rural markets through RBL Finserv (RFL) and its Business Correspondent (BC) network. As a result, it further strengthened its secured retail and MSME lending franchise.

Mortgage Loans

During the year, the Banks mortgage portfolio crossed T 20,000 Crore. Its Loan Against Property (LAP) portfolio exceeded T 11,000 Crore. This represented approximately 50% year-on-year growth. Secured retail advances also recorded robust growth. Consequently, the Banks secured retail lending businesses achieved operating profitability. This reflected the portfolios improving scale and efficiency.

Affordable Home Loans and Small LAP continued to target credit-tested customers across Tier 2+ markets. The affordable mortgage portfolio reached T 3,233 Crore. It grew 86% year-on-year. It also represented 9% of the Secured Retail Assets book.

Housing Loans

RBL Bank continued to strengthen its housing finance franchise. Affordable Housing Loans (AHL) remained central to its inclusive lending strategy. In line with the Governments Housing for All vision, the Bank expanded across markets. It focused on firsttime homebuyers through need-based financing solutions. The Bank leveraged its extensive branch network and wholly owned subsidiary, RBL Finserv (RFL). This helped extend home loan offerings and deepen its presence in underserved markets.

The Affordable Housing Loan portfolio also recorded strong growth. Gross advances increased from T 1,425 Crore to T 2,316 Crore. This represented 63% year-on-year growth. The portfolio maintained an average ticket size of approximately T 21-23 lakh. It also maintained an average loan-to-value (LTV) ratio of around 64%. This reflected the Banks prudent underwriting approach.

Loan Against Gold Ornaments (LAGO)

The Bank also continued to diversify its secured lending portfolio through specialised products. The Loan Against Gold Ornaments (LAGO) business scaled rapidly, with monthly disbursements exceeding the run-rate of T 225-250 Crore.

Business Banking Group (BBG)

RBL Banks Business Banking Group (BBG) is a key focus area and growth driver within wholesale and secured lending. It caters to the financing needs of Micro, Small and Medium Enterprises (MSMEs). The business supports enterprises with working capital and capital expenditure requirements. It follows a relationship-led approach, primarily through sole banking arrangements across the Banks branch network.

The BBG offers a comprehensive suite of financing solutions. These include fund-based facilities such as Cash Credit, Overdraft, Term Loans and Export Credit. It also provides non-fund-based facilities, including Letters of Credit (LCs) and Bank Guarantees (BGs). The portfolio includes Bill Discounting, structured working capital solutions and collateral-free business loans up to T 50 lakh. These loans feature simplified documentation and repayment tenures of up to 36 months.

During FY 2025-26, the BBG business recorded strong growth. Gross advances increased from T 1,804 Crore to T 3,034 Crore, up 68% year-on-year. The business served approximately 1,100 high-value customers. It reported an average ticket size of around T 3 Crore and an average CMR of 3. Additionally, the portfolio maintained sourcing yields of approximately 9.0%. This underscores the Banks focus on sustainable growth and prudent risk-adjusted returns.

Wheels Business Rural Vehicle Finance (RVF)

The Rural Vehicle Finance (RVF) business is an important part of the Banks rural lending strategy. It supports the agricultural

economy by financing new and used tractors, harvesters, power tillers, and other farm equipment. The business primarily serves small and medium farmers. Credit decisions are based on income assessment, land records, and bureau scores. Alongside tractor financing, the Banks Two-Wheeler and Used Car Loan businesses also expanded steadily during the year. Key developments included:

• Strong Portfolio Growth: The tractor finance portfolio crossed the Rs. 3,000 Crore milestone, reflecting strong demand across rural markets. It reached Rs. 3,410 Crore, growing 20% year on year.

• Expanded Rural Distribution: The Bank entered strategic partnerships to strengthen sourcing of rural asset products, including tractor and dairy loans, across underserved regions.

• Expanded Product Coverage: The RVF portfolio continued to expand through financing of new and used tractors for agricultural and commercial use. It also financed harvesters, power tillers, and other agricultural equipment across 308 districts.

The Banks continued investment in digital capabilities received industry recognition. Its Tractor Finance business won the ITOTY 2025 Award for Best Digital Transformation in Tractor Finance for the third consecutive year.

Unsecured Loan Programmes Microfinance

RBL Banks Microfinance business remains a key pillar of its financial inclusion strategy. It provides collateral-free Joint Liability Group (JLG) loans to underserved rural and semirural communities, primarily women borrowers. Beyond credit, the Bank offers savings accounts, digital Fixed Deposits, and enrolment under government-backed social security schemes such as Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY). During FY 2025-26, the Bank strengthened portfolio quality, expanded digital access, enhanced repayment convenience, and advanced financial inclusion through technology and community engagement.

Key developments during the year included:

• Portfolio Stabilisation: The microfinance portfolio continued to normalise towards pre-pandemic stability. This was supported by stronger underwriting standards and enhanced credit guardrails, including early adoption of MFIN standards.

Collection efficiency remained strong at 98.4% in the early delinquency bucket. Meanwhile, slippages and Special Mention Account (SMA) balances continued to decline.

• Digital Customer Engagement: The RBL Suvidha App crossed 4 lakh registrations within one year of launch. Additionally, the Bank introduced the Financial Shiksha video module. It offers educational content in Hindi on budgeting, responsible borrowing, loan management, and digital banking. This initiative aims to improve customers financial literacy.

• Digital Savings: Microfinance customers can open and manage Fixed Deposits digitally through the Suvidha App. This eliminates branch visits and paper-based documentation.

• Digital Loan Repayments: The Bank implemented the Bharat Bill Payment System (BBPS) through BillDesk. Customers can now repay EMIs and overdue instalments digitally using platforms such as Google Pay, PhonePe, and BHIM.

• Risk Management: The Bank significantly expanded coverage under the Credit Guarantee Fund for Micro Units (CGFMU). Consequently, guarantee coverage for the standard microfinance portfolio reached approximately 95% by March 2026. The Bank also maintained a 1% contingent provisioning buffer for its JLG portfolio. In addition, it continued its prudent provisioning approach for stressed accounts.

• Expanded Rural Outreach: Through its partnership with Gram Tarang Inclusive Development Services, the Bank strengthened sourcing of dairy loans and other rural retail asset products across underserved regions.

Building on these initiatives, the Bank expects its JLG business

to sustain monthly disbursements exceeding Rs. 700 Crore.

It will leverage its distribution network and digital capabilities to strengthen financial inclusion and rural economic empowerment further.

Credit Cards

Strategic Overview

During FY 2025-26, RBL Bank strengthened its Credit Cards business through a sustainable growth strategy. It focused on building capabilities across customer acquisition, product innovation, and distribution. The Bank prioritised acquiring customers with stronger credit profiles. It also deepened relationships through a multi-product engagement strategy. This approach is expected to improve portfolio quality. It should also enhance customer lifetime value and support sustainable profitability.

A key milestone during the year was building and scaling the in-house distribution model. This strategic shift enabled the Bank to acquire higher-quality customers. These customers offered greater engagement potential across the Banks product ecosystem. As a result, the strategy gained strong momentum during FY 2025-26. The Bank crossed 1 lakh new monthly credit card acquisitions through its in-house distribution channel.

Strengthening the Product Franchise

The Bank continued strengthening its product portfolio across customer segments. It placed particular emphasis on premium and super premium customers.

Premium Credit Cards

To strengthen its presence in the premium and super premium segments, the Bank launched two offerings:

• LUMIERE: An invitation-only premium metal credit card. It offers curated travel privileges, exclusive memberships, and personalised lifestyle experiences.

• NOVA: Designed for affluent and aspirational customers. It features accelerated rewards, premium lifestyle benefits, and curated experiential privileges.

The Bank also strengthened its Preferred Banking proposition through cashback-focused products. These catered to mass and mass affluent banking customers. The portfolio included Apex, Aspire, and Signature Cashback Credit Cards. These products offer attractive cashback benefits across key spending categories.

Comprehensive Product Portfolio

RBL Bank offers a diversified credit card portfolio designed to serve distinct customer segments and business requirements.

• Mass Consumers: Shoprite, Cookies, Apex and Aspire

• Mass Affluent Consumers: Signature, Platinum Maxima, Platinum Maxima Plus and Icon

• Travel: World Safari Plus, World Safari, and World Safari Lite

• Co-Branded Credit Cards: BookMyShow Play, PaisaBazaar Duet+, BankBazaar Save Max Pro, SalarySe, IRCTC, IndianOil, IndianOil Xtra, TVS Credit, TVS Credit Gold, Patanjali Vishisht and Patanjali Swarn

• Premium Credit Cards: iGlobe, Insignia Preferred Banking, LUMIERE and NOVA

• Commercial Credit Cards: Travel and Entertainment Gold, Travel and Entertainment Platinum, Purchase Procure+, Purchase Tax+, RazorpayX Corporate Travel & Entertainment, and RazorpayX Corporate Purchase. These support corporate travel, procurement and business expense management.

Expanding the Co-Branded Franchise

RBL Bank continues to strengthen its co-branded credit card franchise through a diversified partnership ecosystem. It spans leading consumer brands, fintechs, NBFCs and digital payment platforms. These partnerships enable the Bank to offer differentiated value propositions and relevant lifestyle and rewards-led experiences. They also support customer acquisition across multiple market segments while strengthening distribution reach.

Commercial Cards Programme

The Commercial Cards Programme remains a key pillar of the Banks corporate payments strategy. It offers specialised payment, procurement and expense management solutions for businesses. Since its re-launch in January 2024, the programme has focused on strengthening relationships with corporate and institutional clients. It has also increased transaction-led fee income and expanded the Banks presence in the commercial payments ecosystem.

During FY 2025-26, the programme was further strengthened through new product launches, enhanced digital self-service capabilities and strategic partnerships. As a result, the Bank is well positioned to capture emerging opportunities in the growing commercial payments market.

Treasury and Markets

RBL Banks Treasury and Markets division manages a diverse portfolio of financial market activities. These include domestic

market operations, treasury sales, debt capital markets, and bullion trading.

Domestic Markets

RBL Banks Domestic Markets Group plays a central role in managing liquidity, investments, and market risk. It also ensures compliance with regulatory requirements. The Group maintains key regulatory liquidity and funding ratios, including the Net Stable Funding Ratio (NSFR), Liquidity Coverage Ratio (LCR), Statutory Liquidity Ratio (SLR), and Cash Reserve Ratio (CRR). Operating within a Board-approved investment and risk management framework, it also undertakes proprietary trading across interest rate, foreign exchange, and equity markets.

Securities Trading

RBL Bank operates a dedicated proprietary trading desk. It actively manages positions across government securities, corporate bonds, and interest rate swaps. This helps optimise returns within the Banks approved risk appetite. During FY 2025-26, financial markets experienced heightened volatility. Domestic inflation, crude oil prices, currency movements, geopolitical developments, and rising US Treasury yields drove market conditions. Despite the RBIs rate cut cycle, the Indian Government bond market remained bearish due to external factors. Consequently, the benchmark 10-year Government Security yield hardened by 48 basis points to 7.03% by year- end. Nevertheless, the Banks trading desk effectively managed proprietary positions across fixed income and equity markets, resulting in healthy trading profits.

Liquidity Management

The Bank remained focused on maintaining a strong liquidity position and adequate contingency buffers. This was particularly important amid relatively tight banking system liquidity. During the year, it strengthened its funding profile through a well-diversified

mix of liability sources. This reflected disciplined balance sheet management. The Bank also maintained a healthy Liquidity Coverage Ratio (LCR). Steady growth in granular deposits and rupee refinancing from financial institutions supported this performance.

In addition, the Bank continued to hedge interest rate risk through derivative instruments. This further strengthened its prudent risk management framework. The concentration of the top 20 depositors stood at 15.8%.

Capital Markets

The Capital Markets team provides end-to-end solutions across debt capital markets (DCM), loan syndication, and structured finance distribution. It works closely with asset managers, insurance companies, banks, and institutional investors. This enables the team to understand client requirements and deliver tailored financing solutions. It originates, underwrites, and distributes transactions while facilitating efficient sell-downs. As a result, it ensures seamless execution and broad market placement.

Debt Capital Markets (DCM)

The Debt Capital Markets (DCM) desk provides advisory and execution services to large and mid-sized corporates raising debt through the capital markets. Its core capabilities include structuring, underwriting, and distributing a broad range of instruments. These include bonds, loans, commercial papers, and asset-backed securities. The offerings are placed with a diversified investor base comprising banks, NBFCs, mutual funds, insurance companies, and wealth management clients.

Structured Finance and Debt Syndication

The Structured Finance and Debt Syndication business provides end-to-end financing solutions for large and mid-sized corporates. It specialises in loan syndication, structured term loans, ECBs, working capital finance, infrastructure funding, and greenfield and brownfield project financing. Leveraging strong relationships with public and private sector banks, NBFCs, Development Financial Institutions (DFIs), Infrastructure Debt Funds (IDFs), and institutional investors, the team ensures efficient distribution and seamless execution of complex financing transactions.

During FY 2025-26, the business successfully executed multiple syndicated debt facilities across domestic markets. It also continued expanding the Banks foreign currency loan portfolio through the GIFT City branch. Higher transaction volumes at the offshore banking unit further strengthened the Banks foreign currency asset portfolio. This also diversified its funding capabilities.

Foreign Exchange, Derivatives, and Bullion Business

The Banks Foreign Exchange and Derivatives business offers comprehensive hedging solutions for foreign currency and interest rate risks. Its product suite includes interest rate swaps, currency swaps, options, and deliverable and non-deliverable currency derivatives. These solutions serve corporate, institutional, commercial banking, and consumer banking clients across resident and non-resident segments. During FY 2025-26, the Bank further expanded its derivatives capabilities. It built on the introduction of exotic options and enhanced non-deliverable products. These offerings span onshore markets and the GIFT City IFSC. They address the evolving risk management needs of sophisticated clients.

The Bank also introduced Bond Forward derivatives for insurance and mutual fund clients. These products help lock in current yields for future dates. Additionally, it introduced new FCY-FCY currency pairs for non-deliverable hedging.

Supported by an experienced Treasury team, the business delivers advisory-led risk management solutions tailored to client requirements. These transactions generate fee-based income for the Bank. Meanwhile, dedicated Treasury Sales professionals across major metropolitan centres ensure timely client engagement. All client derivative transactions remain within approved credit limits. They are fully hedged through back-to-back interbank transactions, ensuring a prudent and risk- neutral framework. During the year, the desk continued executing complex hedging solutions. These covered foreign direct investment (FDI), overseas direct investment (ODI), external commercial borrowing (ECB), and corporate restructuring transactions. This reinforced the Banks expertise in structured risk management.

RBL Bank is also among the RBI-authorised institutions permitted to import gold and silver. Its bullion business operates on consignment and back-to-back models. It supplies precious metals to a broad domestic customer base while minimising price risk. The Bank also participates in the bullion lending and borrowing market. It facilitates metal loan arrangements for domestic manufacturers and jewellery exporters. Income from bullion trading is recognised upon settlement. Interest earned or paid on bullion lending and borrowing is recognised as interest income or expense, respectively. At the end of FY 2025-26, the Bank introduced a bullion import facility for finished jewellery exports.

IFSC Banking Unit (IBU), GIFT City

RBL Banks International Financial Services Centre (IFSC) Banking Unit at GIFT City, Gujarat, operates as an overseas branch. It functions under the regulatory framework of the

International Financial Services Centres Authority (IFSCA). The branch supports overseas subsidiaries cross-border funding requirements and Indian corporates. It also strengthens the Banks international banking franchise through capital market participation, trade finance, treasury solutions, and NRI banking services.

The IFSC Banking Unit mobilises foreign currency deposits and borrowings to deliver comprehensive financial solutions. These serve both domestic and international corporate clients. Its offerings include foreign currency loans, trade finance, bank guarantees, derivatives, treasury products, and syndicated loan participation. It also provides foreign exchange and cross-currency hedging solutions while maintaining the Banks underwriting standards. In addition, the branch facilitates External Commercial Borrowings (ECB) and Trade Credit (TC) facilities for domestic corporates. It also delivers customised digital banking solutions to IFSCA-regulated entities operating within GIFT City.

During FY 2025-26, the branch significantly strengthened its international banking capabilities. This was achieved through new product launches, digital initiatives, and broader capital market participation. To support international trade, it launched multi-currency current accounts for Indian exporters across major global currencies. These accounts enable seamless crossborder transactions while reducing foreign exchange conversion costs. Meanwhile, its retail banking proposition advanced through partnerships with regulated fintech platforms. These partnerships enabled fully digital onboarding and instant US$ Fixed Deposits for NRIs and Overseas Citizens of India (OCIs).

Aligned with the Banks long-term strategy, the GIFT City branch continues expanding international banking services. It also supports the global digital economy and develops innovative retail and corporate banking solutions. Its strategic importance is reflected in its inclusion alongside Metro branches. This highlights its contribution to serving urban, affluent, and globally connected customers.

Key Highlights

• Ecosystem Banking: Built the franchise with IFSCA-regulated entity accounts of Payment Service Providers, Global Access Brokers, insurance entities, by leveraging digital banking capabilities, providing same-day credits.

• Foreign Currency Deposit Growth: Crossed US$ 10 Million in Foreign Currency Fixed Deposits through a fully digital customer journey, and the creation of over 250 Foreign Currency FDs.

• Digital NRI Banking: Introduced end-to-end digital payments and instant foreign currency fixed deposits for NRIs and foreign nationals.

• Global Investment Solutions: Obtained the Capital Markets Distribution license enabling distribution of Alternative Investment Funds (AIFs) to provide diversified international investment opportunities.

• Multi-Currency Trade Banking: Introduced exporter current accounts supporting US$, EUR, GBP, JPY, AED, and AUD, enabling efficient cross-border trade and reducing foreign exchange conversion costs.

RBL BANKS FINANCIAL OVERVIEW

Operating Revenue rose 2.1% YoY from f 10,269 Crore to f 10,481 Crore in FY 2025-26. Net Interest Income (NII) decreased by 1.6% YoY from f 6,463 Crore to f 6,360 Crore in FY 2025-26. Noninterest income, comprising fee income, trading income and other income, grew 8.3% YoY from f 3,806 Crore to f 4,121 Crore in FY 2025-26.

Operating expenses rose by 8.1% to f 7,182 Crore in FY 2025-26 as the Bank continued its investments in expanding its distribution network, enhancing technology and scaling-up existing retail products along with launching of new secured retail products.

Operating Profit decreased by 9% to f 3,299 Crore from f 3,627 Crore in FY 2025-26.

Provisions and contingencies in normal course of business decreased 24% YoY from f 2,959 Crore in FY 2024-25 to

f 2,260 Crore in FY 2025-26. This was mainly due to reduction in slippages in JLG segment which witnessed higher than trend slippages in FY25 owing to industry-wide stress. Slippages in JLG segment have reduced from peak of f 536 Crore in Q3 FY25 to f 87 Crore in Q3 FY26. This is further projected to reduce basis improving trends in early bucket collection efficiency and reduction in SMA balances.

Including above provision, total provisions and contingencies decreased 23.6% YoY from f 2,959 Crore in FY 2024-25 to f 2,260 Crore in FY 2025-26.

The Bank reported a Profit after Tax of f 822 Crore for the year as compared to f 695 Crore in FY 2024-25.

Net Interest Income

* Debts represent the total borrowings; Equity represents total share capital, employees stock options outstanding and reserves.

Net Interest Income (NII) experienced a year-on-year decrease of 1.6% from f 6,463 Crore in FY 2024-25 to f 6,360 Crore in FY 2025-26. NII accounted for 60.7% of the total Operating Revenue in FY 2025-26 against 62.9% in FY 2024-25.

During this period, the yield on interest earning assets decreased from 11.1% to 10.2%. Specifically, the yield on advances decreased by 136 bps from 13.5%

in FY 2024-25 to 12.1% in FY 2025-26. The yield on investments decreased by 35 bps during FY 2025-26.

Cost of funds decreased by 42 bps from 6.6% in FY 2024-25 to 6.2% in FY 2025-26. The Bank remained focused on enhancing the contribution of retail deposits, improving the granularity and tenure of deposits, and maintaining robust liquidity levels. Due to the declining interest rate cycle - a reduction of repo rate of 125bps from Q4 FY25 through FY26 and the Banks strategy to rationalise SA rates, rate cuts were undertaken by the bank in savings account deposits. Rate cuts were also undertaken in Term Deposits which led to repricing of term deposits at lower costs - leading to reduction in overall deposit cost. This resulted in cost of deposits decreasing from 6.5% last year to 6.2% in FY 2025-26.

CASA deposits witnessed an increase of 23.3% from f 37,886 Crore in FY 2024-25 to f 46,723 Crore in FY 2025-26.

Cash and Balances with the Reserve Bank of India was higher as Bank was required to maintain higher CRR balance due to increase in deposit balances.

Total advances of the Bank as on March 31,2026, increased 23.3% to f 1,14,232 Crore from f 92,618 Crore as on March 31, 2025, largely driven by growth in the commercial banking segment within wholesale banking, housing, business loans, rural vehicle finance and gold loan segments within retail banking.

Retail advances comprised 58.8% of total advances and grew 20.5% to T 67,120 Crore, wholesale advances comprised 41.2% of total advances and grew by 27.6% to T 47,112 Crore.

Business Loans remained the largest Retail Banking segment and accounted for 14.7% of total advances, Personal Loans 2.6%, Microfinance 6.7%, Credit Card 14.2%, Housing Loans 7.6%, rural vehicle finance at 2.7%, Retail Agri 1.3%, and others (incl. Gold Loans and OD, etc.) accounted for 8.9%.

Investments

The investment portfolio of the Bank is T 32,078 Crore. Investments in government securities amounting to T 31,030 Crore.

Money market/equities/mutual fund investments decreased by 11.7% to T 280 Crore in FY 2025-26. As on March 31, 2026, the Bank classified 81.4% of the total government securities in the Held to Maturity category, and bonds and debentures portfolio was classified in the Available for Sale category.

Other Assets

Other assets of the Bank as on March 31, 2026, increased to T 10,744 Crore from T 8,806 Crore as on March 31,2025, primarily on account of decrease in RIDF Deposits.

Liabilities and Shareholders Funds

Shareholders Funds

. Shareholders funds of the Bank increased from T 15,607 Crore

-as on March 31, 2025, to T 16,605 Crore as on March 31, 2026, primarily on account of the profit reported by the Bank in FY 2025-26.

Deposits

: The total deposits of the Bank increased by 25.3% to T 139,018

-Crore against T 1,10,994 Crore last year. Savings Bank deposits reported a growth of 4.2% to T 20,802 Crore, while Current Account deposits reported an increase of 44.6% to T 25,922 Crore. Overall, CASA deposits increased to T 46,724 Crore, and

-constituted 33.6% of total deposits as compared to 34.1% last year.

Borrowings

The total borrowings of the Bank increased 22.3% from T 13,734 Crore in FY 2024-25 to T 16,794 Crore in FY 2025-26, primarily on account of Borrowing from Bank and outside India offset by increase in borrowing from Other Institutions and Agencies.

Capital Management

The Bank ended FY 2025-26 with a robust capital position. The Banks overall capital adequacy ratio (CAR) under Basel III stood at 14.25% at the end of the year, well above the benchmark requirement of 11.50% stipulated by the Reserve Bank of India

(RBI). Of this, the Common Equity Tier I (CET I) CAR was 12.77% [against minimum regulatory 8.00%] and Tier I CAR was 12.77% [against regulatory requirement of 9.50%]. As on 31 March, 2026, the Banks Tier II CAR under Basel III stood at 1.48%.

The following table sets forth the capital, risk-weighted assets and capital adequacy ratios computed as on March 31,2026 and March 31,2025 in accordance with the applicable RBI guidelines under Basel III.

The movement in capital position for FY 2025-26 was as below

Adequacy of Internal Financial Controls with reference to Financial Statements

The details on the Adequacy of Internal Financial Controls with reference to Financial Statements are separately provided in the Directors Report which forms an integral part of this Annual Report.

Risk Management

Risk management is a core pillar of the Banks strategic and operational decision-making. The Bank has established a comprehensive Risk Management Framework. It comprises a well-defined risk taxonomy that standardises key risk categories. It also includes a clearly articulated risk appetite that guides acceptable risk-taking levels. A strong risk culture promotes awareness, accountability, and ethical conduct across the organisation. In addition, a robust risk governance structure ensures effective oversight through dedicated committees and active leadership involvement. Together, these elements enable the Bank to identify, assess, monitor, and manage risks proactively. They also support financial stability, operational resilience, regulatory compliance, and sustainable long-term growth.

Risk Taxonomy

RBL Banks risk taxonomy provides a structured framework for identifying and classifying risks across its business operations. It covers both external and internal risk drivers. External factors include macroeconomic conditions, technological disruption, ESG and climate-related risks, legislative developments, and evolving regulatory requirements. Internal factors include workforce capabilities, operational processes, information technology systems, balance sheet composition, product portfolio, customer profile, reputational considerations, and organisational conduct.

To strengthen risk preparedness, the Bank continuously identifies, assesses, and classifies emerging risks. This enables timely mitigation and supports effective risk management across the organisation. The Bank has also adopted the Operational Risk Taxonomy under the RBI Guidance Note. It follows the Master Direction on Minimum Capital Requirements for Operational Risk to classify operational loss events.

Three Lines of Defence Model

The Bank follows the widely recognised Three Lines of Defence model. It ensures clear accountability and effective risk

management across the organisation. The framework clearly separates responsibilities for risk ownership, oversight, and independent assurance.

The first line of defence comprises the Business and Credit (underwriting) functions. These functions identify, assess, and manage risks arising from day-to-day activities. They operate within the Banks defined risk appetite.

The second line of defence comprises the Risk Management and Compliance functions. These functions establish the Risk Management Framework and develop policies and standards. They also provide independent oversight and monitor compliance with the Banks risk appetite and regulatory requirements.

The third line of defence is the Internal Audit function. It independently assesses the effectiveness of the Banks risk governance and internal control framework. It also reviews compliance with internal policies and applicable regulations. In addition, it coordinates with external auditors and regulatory authorities. This supports comprehensive assurance and effective oversight.

Risk Appetite

Risk appetite defines the level and types of risk RBL Bank is willing to assume. It supports strategic objectives while maintaining financial resilience and regulatory compliance. The Bank maintains a moderate risk appetite. It is reviewed periodically to ensure alignment with business strategy, the operating environment, and emerging risks. The Board of Directors approves the Risk Appetite Statement. It establishes the Banks risk tolerance limits and guides strategic planning, business decisions, and risk management activities.

The Chief Risk Officer (CRO) implements the Banks Risk Management Framework. The CRO also supports the Risk Management Committee of the Board (RMCB) in overseeing the Banks risk profile. In addition, the CRO independently identifies, assesses, monitors, and escalates material and emerging risks. These are reported to senior management and the Board. The CRO remains independent of business transaction approval processes. Meanwhile, the Bank monitors risk appetite through defined risk metrics and thresholds. The Executive Risk Committee, the RMCB, and the Board regularly review breaches, emerging trends, corrective actions, and forwardlooking assessments. This ensures effective oversight, timely intervention, and strong governance.

Risk Culture

The Bank has established a strong risk culture. It embeds risk awareness, accountability, and compliance across the organisation. As a result, effective risk management remains a shared responsibility at every level. To support this objective, the Bank has implemented a Target Operating Model. It strengthens credit risk management through a risk-based approach to customer origination, underwriting, and portfolio management. Internal credit ratings support this approach.

The model aligns with the Banks target risk profile. It includes clearly defined risk appetite thresholds, tolerance limits, and Key Risk Indicators (KRIs). These apply across business segments, customer portfolios, and product lines. Moreover, regular employee training, internal communication, and awareness programmes reinforce these principles. They promote informed decision-making and consistent adherence to risk management practices. The Bank also aligns management performance indicators with risk management objectives. Consequently, prudent risk-taking, regulatory compliance, and proactive risk management become integral to individual and organisational performance.

Risk Governance

Risk Management Committees

The Risk Management Committee of the Board (RMCB) provides strategic oversight of the Banks risk management framework. It approves risk policies, frameworks, and strategies to identify, monitor, and mitigate key risks. These include credit, market, liquidity, interest rate, concentration, operational, compliance, third-party, reputational, cyber, and emerging risks. The Committee also ensures alignment with regulatory requirements and the Banks strategic objectives.

The RMCB is supported by specialised management committees. These include the Executive Risk Committee (ERC), Management Credit Committee (MCC), Asset Liability

Management Committee (ALCO), Product Approval Committee (PAC), Operational Risk Management Committee (ORMC), Retail Risk Management Committee (RRMC), Compliance Implementation Committee (CIC), Environmental and Social Risk Governance Committee (ESGC), and Information Security Steering Committee (ISSC). Together, these committees oversee risk identification, assessment, mitigation, and monitoring across the Bank.

The ERC serves as the apex management committee for enterprise-wide risk oversight. It receives inputs from the ORMC and RRMC. It also oversees the implementation of the Risk Management Framework. In addition, it recommends the Banks Risk Appetite Statement. The Committee also reviews the adequacy of risk policies, credit standards, prudential limits, and risk management practices.

The Board Investment and Credit Committee (BICC) oversees treasury investments. It also approves credit and investment proposals under the Banks credit policy. Meanwhile, the IT Strategy Committee of the Board oversees the Banks technology strategy and cybersecurity framework. The ISSC provides operational support and is responsible for information security governance.

Several executive committees support the Banks risk governance framework through focused oversight:

• Management Credit Committee (MCC): Oversees the implementation of the Banks credit policy across retail and wholesale banking.

• Asset-Liability Management Committee (ALCO): Manages market, liquidity, and interest rate risks, and oversees pricing strategies.

• Product Approval Committee (PAC): Reviews and approves new products and periodically assesses existing product offerings.

• Compliance Implementation Committee (CIC): Monitors regulatory compliance and facilitates implementation of compliance requirements.

• Environmental and Social Risk Governance Committee (ESGC): Oversees the implementation of the Banks environmental and social risk management framework.

Together, these committees strengthen the Banks risk governance framework by ensuring coordinated oversight,

informed decision-making, and alignment with the Banks strategic objectives.

Risk Management Policies

The Banks Enterprise Risk Management (ERM) framework is built on industry best practices and provides the foundation for prudent risk-taking and effective risk management. It is anchored by the Risk Appetite Framework, the Internal Capital Adequacy Assessment Process (ICAAP), and a robust Stress Testing Framework, which collectively support informed decisionmaking, capital adequacy, and financial resilience.

The framework is supported by a comprehensive set of risk management policies covering key risk and operational areas, including:

• Enterprise Risk Management Policy

• Liquidity Risk and ALM Policy

• Credit Policy

• Investment Policy

• Market Risk Policy

• FX and Derivatives Policy

• Liquidity Contingency Plan

• Customer Suitability and Appropriateness Policy

• Internal Control Policy

• Recovery Policy

• KYC and AML Policy

• Operational Risk Management Policy

• Risk-Based Internal Audit Policy

• Penal Charge Policy

• Sustainability Policy

• Cybersecurity Policy

• Collateral Management Framework

• Information Security Management Policy

These policies provide a comprehensive governance framework that ensures regulatory compliance, strengthens operational resilience, promotes sound risk management practices, and supports the Banks long-term sustainability.

Risk Management System

The Bank has established a comprehensive Management Information System (MIS). It enables timely communication of risk-related information across the organisation. The MIS provides senior management and risk committees with regular dashboards and reports. These present portfolio-level risk exposures across key categories. These include credit, market, operational, liquidity, and interest rate risks. Consequently, they support informed decisions, proactive monitoring, and effective risk management.

The Board of Directors, the Risk Management Committee of the Board (RMCB), and executive risk committees review these reports periodically. This ensures continuous oversight, adherence to the Banks risk appetite, and alignment with strategic objectives.

Risk Mitigation

Capital Adequacy Risk

The Bank maintains a strong capital adequacy position. Its capital ratios consistently exceed prescribed regulatory requirements. This robust capital base strengthens financial resilience. It enables the Bank to absorb potential losses, support business growth, and protect depositors and other stakeholders.

Credit Risk

Credit risk is the risk of financial loss. It arises when a borrower or counterparty fails or is unwilling to meet contractual obligations. Such losses may result from loan defaults, delayed repayments, failed trading settlements, or a decline in the value of collateral.

The Bank manages credit risk through well-defined credit policies and underwriting standards for wholesale and retail lending. In the Wholesale segment, Board-approved delegation of financial powers governs credit approvals. This ensures designated officials and committees hold sanctioning authority. The Bank also manages concentration risk through a Target Operating Model (TOM). It classifies borrowers using internal credit ratings and other risk parameters. Additionally, an independent Internal Credit Rating (ICR) function supports approvals. It provides objective assessments of borrower creditworthiness.

In the Retail segment, credit decisions are driven by standardised product programmes and automated credit assessment processes. The Bank monitors credit concentration across borrowers, industries, geographies, and product segments. It also conducts regular portfolio reviews. This helps identify emerging risks and maintain portfolio quality.

Market Risk

The Bank manages market risk through a comprehensive policy framework. It comprises the Investment Policy, Market Risk Policy, FX and Derivatives Policy, and Customer Suitability and Appropriateness Policy. Together, these policies establish the governance framework for identifying, measuring, monitoring, and controlling market risk from Treasury operations.

The Market Risk Policy defines risk limits for individual positions and portfolios, aligned with the Banks risk appetite. The Investment Policy specifies permissible investment instruments and prudential exposure limits. The Bank also uses robust risk management systems and processes to enable effective monitoring, measurement, and control of market risk exposures.

Liquidity Risk

The Bank manages liquidity risk through a robust Liquidity Risk and Asset-Liability Management (ALM) framework. It aligns with regulatory requirements and industry best practices. The framework ensures adequate liquidity to meet funding obligations during normal and stressed market conditions.

The Bank maintains its Liquidity Coverage Ratio (LCR) well above the prescribed regulatory threshold. It also continuously monitors short-term liquidity to maintain sufficient liquidity buffers. In addition, a Board-approved Contingency Funding Plan (CFP) defines strategies and response protocols. These measures address liquidity stress from unexpected cash outflows or market disruptions. As a result, they strengthen the Banks financial resilience.

Compliance Risk

The Bank manages compliance risk through an independent compliance function led by the Chief Compliance Officer (CCO). The CCO reports directly to the Audit Committee of the Board. This structure reinforces independent oversight and promotes a strong compliance culture across the organisation.

The Bank adopts a zero-tolerance approach to compliance breaches. It requires all employees to follow its Code of Conduct from onboarding. To uphold market integrity, the Bank has implemented an Insider Trading Policy. It applies to Directors, employees, and their immediate relatives. The Chief Investor Relations Officer and Company Secretary oversee policies for identifying and disclosing unpublished price-sensitive information. They coordinate with the Managing Director and CEO. This ensures regulatory compliance and transparent disclosures.

Cybersecurity Risk

The Bank manages cybersecurity risk through a comprehensive framework. It comprises Board-approved Cybersecurity and Information Security Management Policies. These policies establish governance, controls, and processes. Together, they protect information assets and technology infrastructure from evolving cyber threats.

The framework incorporates preventive, detective, and responsive measures across people, processes, and technology. Additionally, the Bank maintains a Cyber Crisis Management Plan. It outlines preparedness, incident response, and recovery procedures. This enables timely incident containment, minimises operational disruption, and supports swift restoration of critical business operations.

Digital Risk

The Bank manages digital risk through a dedicated Digital Risk function. It identifies, assesses, and monitors risks linked to digital transformation initiatives. The function reviews Product Approval Committee (PAC) proposals, Standard Operating Procedures (SOPs), and Business Requirement Documents (BRDs). It also analyses loss and fraud trends to identify emerging risks. In addition, it evaluates new business partnerships, customer complaints, and operational losses. This strengthens risk oversight and supports the secure implementation of digital products and services.

Environmental and Social Risk Management (E&S)

The Bank integrates E&S considerations into its business strategy and risk management framework. It does so through a comprehensive Environmental and Social Risk Management (ESRM) framework. Oversight is provided by the Environmental and Social Risk Governance (ESG) Committee. The Committee regularly updates the Board on key developments and E&S risk management. The framework promotes sustainable finance by integrating E&S risk assessments into financing decisions. It also supports sustainable products and encourages responsible business practices among employees and customers.

The Bank follows a responsible lending approach. It excludes clients engaged in activities inconsistent with its ethical standards, aligned with the International Finance Corporation (IFC) Exclusion List. Environmental and social risks are assessed during credit appraisal using the IFC Performance Standards. Due diligence also incorporates climate-related risk considerations. Where material E&S risks are identified, borrowers must implement a Corrective Action Plan (CAP) within agreed timelines. The CAP forms part of their financing

obligations. The Bank monitors implementation to ensure effective risk mitigation and support sustainable financing.

Climate Risk

The Bank integrates climate-related risks into its E&S risk management framework. It assesses both physical and transition risks. A probabilistic risk assessment tool evaluates exposure to floods, droughts, storms and landslides. This enables business and credit teams to identify and monitor high-risk exposures. Meanwhile, transition risks are assessed by evaluating borrowers dependence on carbon-intensive resources. The assessment also considers evolving regulatory and market expectations, alongside supply chain vulnerabilities.

The Bank has aligned its climate risk management approach with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. This strengthens governance, strategy, risk management and climate-related disclosures. In addition, a dedicated Environmental and Social Risk team supports business units through due diligence and E&S reviews. It also reports key climate and sustainability risks to Senior Management and the Board.

To support its decarbonisation strategy, the Bank adopted a Coal Policy limiting exposure to coal-based thermal power generation. It has committed to phasing out such financing by FY 2033-34. The Bank also tightened financing limits for other carbon-intensive sectors. These include oil and gas, iron and steel, cement, aluminium, coal mining and lime. Furthermore, it established a Carbon Neutrality Plan to achieve net-zero operational emissions by FY 2033-34.

Operational Risk

Operational risk refers to losses from inadequate or failed processes, people, systems, or external events. Given the Banks reliance on technology and digital operations, effective operational risk management is essential. It helps minimise disruptions, fraud, operational failures, and financial losses.

The Bank manages operational risk through a Board-approved Operational Risk Management Policy. Oversight is provided by the Operational Risk Management Committee (ORMC). The Committee implements and maintains the Operational Risk Management (ORM) framework. It also monitors operational risk controls across the organisation.

The Banks operational risk framework includes:

• A structured product approval process to assess risks associated with new products and services.

• Risk and Control Self-Assessments (RCSA) to evaluate the design and effectiveness of internal controls.

• Monitoring of Key Risk Indicators (KRIs) to identify emerging operational risks.

• Tracking and analysis of operational loss events, including actual losses and near misses.

• Timely remediation of identified control gaps and operational risk issues.

Operational risk levels and trends are measured using gross operational losses and losses as a proportion of capital. Key Risk Indicators (KRIs) and other suitable measures are also monitored. These cover fraud, business continuity, information security, product review, and other non-financial risk domains. The indicators are tracked at business unit and enterprise levels. This ensures effective oversight and alignment with the Banks risk appetite.

The Board has approved the Operational Resilience Approach. It considers disruption risks to customers, the Banks viability, safety, soundness, and overall financial stability.

The Bank is progressively strengthening methodologies to identify critical services and improve process and technology resilience. It recognises that disruptions can occur. Accordingly,

it remains prepared to respond appropriately and have measures in place to limit their impact.

The Bank continually strengthens its ability to withstand, absorb, respond, adapt to, recover from, and learn from disruptions. This helps minimise the impact on critical operations.

Model Risk

The Bank manages model risk through a structured governance framework under its Enterprise Risk Management (ERM) Policy. Financial models support key risk management and business decisions across retail and wholesale businesses. However, model outputs require expert judgement alongside quantitative analysis.

The Bank manages model risk through independent validation during development and periodic reviews. The Model Risk Management Committee oversees this process. It reviews validation outcomes and reports significant findings to senior risk governance bodies. These include the Executive Risk Committee (ERC) and the Risk Management Committee of the Board (RMCB).

To strengthen model governance, the Bank also conducts independent external validation of critical models. These include credit rating models and Internal Capital Adequacy Assessment Process (ICAAP) models. Furthermore, integrating retail model validation into the overall governance framework promotes consistent validation practices. It also supports robust model risk management.

Stress Testing

The Bank conducts regular stress testing across key risk categories. These include credit risk, credit concentration risk, market risk, interest rate risk in the banking book (IRRBB), operational risk, counterparty credit risk, liquidity risk, and intraday liquidity risk. These tests assess the Banks resilience under severe but plausible adverse scenarios. They identify potential vulnerabilities and evaluate the adequacy of its risk management framework and capital position.

The Executive Risk Committee (ERC) reviews stress testing results. Subsequently, the results are reported quarterly to the Risk Management Committee of the Board (RMCB). They are also presented annually to the Board. The findings support proactive risk management and inform strategic decisionmaking by senior management and the Board.

Technology Adoption to Support Risk Management

The Bank draws on advanced digital technologies and data-driven tools to strengthen risk management across regulatory capital,

3 market risk, operational risk, fraud risk, and credit risk. These r capabilities enhance risk identification, monitoring, decision- < making, and regulatory compliance across the organisation. _e

Key technology-enabled risk management initiatives include:

• Advanced Data Analytics: Supports customer acquisition, s credit underwriting, and ongoing portfolio monitoring in the

retail banking business. t

l • Independent Model Validation: Ensures the reliability s and effectiveness of risk models through validation by an l independent team or specialised Model Risk Management Committee.

• Early Warning System (EWS): Monitors publicly available

k information, including regulatory disclosures, market data, , external databases, and news sources, to identify emerging i, credit risks and support portfolio surveillance.

s • Machine Learning-Based Predictive Models: Uses

y transactional and behavioural data to strengthen fraud k detection and monitor risks across digital banking channels, including ATMs, mobile banking, and internet banking.