DIRECTORS' REPORT

The Board of Directors of your Bank is pleased to present the Annual Report on business and operations of your Bank
together with the Audited Financial Statements for the Financial Year ended March 31, 2026.

ECONOMIC SCENARIO
Global

During the first half of FY 2025-26, global economy
although already plagued by prolonged conflicts in West
Asia and the Russia-Ukraine region, exhibited notable
resilience amid heightened trade tensions and policy
uncertainty. There was a surge in stockpiling of traded
goods and increased spending on Artificial Intelligence
(AI), signifying a strong risk appetite amidst rising trade
barriers. In February 2026, the world witnessed a high
level of escalation in the US-Iran conflict, which caused
severe trade and supply disruptions with the prolonged
shutdown of the prominent Strait of Hormuz, which is one
of the world's most vital arteries of energy related trade.
As a result, the global growth is experiencing strong
headwinds with a sharp rise in energy prices and
shortages of vital inputs such as crude oil, thereby
escalating the geopolitical risk premium in the oil markets
severely affecting maritime trade & commerce. Although
global commodity prices of metal and gold have
moderated, the financial markets have been experiencing
extreme volatility.

The Global Banking Industry recorded the strongest
Financial performance in over a decade in Calendar Year
['CY'] 2025. The Net Interest Margins of major banks
expanded across the advanced economies. The Return on
Equity, one of the major barometers of financial heath, for
large banks exceeded 12% in America and 10% in
Western Europe for the first time ever since the Global
Financial Crisis. With the Central banks across Western
Economies cutting rates, banks with stronger balance
sheet and provisioning buffers built during years of
higher rates, were better placed to manage losses without
adversely affecting the capital base. The International
Monetary Fund in its April 2026, World Economic
Outlook, projected global growth at 3.1% for CY 2026
revised downwards from the earlier forecasts, due to drag
in Trade policy, geo political conflicts and lingering effects
of the global monetary tightening cycle. The IMF further
predicts that the prolonged West Asia Conflict, would
keep energy prices elevated, decelerate growth in oil
importing economies, with little elbow room available for
Central banks to ease rates.

Indian

At the commencement of FY 2025-26, the Indian economy
was supported by momentum in private consumption and
capital formation. The above-normal south-west
monsoon resulted in a boost to rural consumption,
expansion in services sector and a revival in urban
consumption ably supported by an increase in private-
sector investment activity. During the reporting year,
India's Gross Domestic Product (GDP) registered a six-
quarter high of 8.2% due to strong domestic demand
(Festive season period) even amidst global trade & policy
uncertainties. The Agriculture sector was supported by
healthy Kharif crop production, higher reservoir levels &
rabi crop production.

During the first half of the CY 2026, the domestic economic
activity remained largely steady, even amidst the
uncertainties experienced due to the prolonged West Asia
Conflict. Merchandise exports recorded strong growth in
April 2026, even though Freight & Insurance costs
remained high. This year the south-west monsoon is
expected to be deficient, particularly in parts of North and
North-western India, potentially impacting agricultural
activity and rural demand. However, the programmes and
initiatives for crop diversification, water harvesting and
conservation, climate-resilient practices, and short
duration crops are expected to mitigate the impact.
Services sector remained robust and sustained the
momentum of the previous year, with GST rationalization
and stable employment conditions supporting urban
consumption. Sustained credit flows from banking & non¬
banking channels, Government CapEx programs, opening
of the insurance sector to 100% FDI, ethanol blending
program for energy transition etc., are expected to give a
boost to investment activity in the near term. The headline
CPI inflation stood at 3.5% in April 2026, driven primarily
by elevated food & fuel prices. Since May 2026, the retail
crude prices have gone up cumulatively by 7.4%, for
petrol and 8.4% for diesel.

The impact of higher global energy prices is also being felt
in other inputs such as Commercial LPG, Industrial raw
materials, chemicals, rubber & plastic products.
Considering all the factors, the overall CPI inflation for FY
2026-27 is projected to be 5.1%, with Q1 at 4.2%, Q2 at
5.1%, Q3 at 5.9% & Q4 at 5.4%.

Several measures undertaken by the Government,
including ECLGS 5.0 ( Emergency Credit Line Guarantee
Scheme) aimed at supporting the MSME & export sector,
sustained efforts to increase domestic gas and crude oil
supplies, and the promotion of domestically produced
goods over imports, have strengthened the domestic
economy's resilience to external shocks. On the external
financing front, buoyant Foreign Direct Investment (FDI)
and higher net FDI in 2025-26 reflect the sustained
interests of global investors in India. However, during
FY 2026-27, net FPI into India witnessed an outflow of
USD 13.7 billion primarily from the equity segment.
As on May 29, 2026 India's foreign exchange reserves
stood at a healthy USD 682.3 billion.

Looking ahead, elevated energy and other commodity
prices along with supply disruptions are likely to impact
economic activity. Considering these factors, real GDP
growth for FY 2026-27 is projected at 6.6% quarterly
growth, with 6.6% in Q1, 6.3% in Q2, 6.5% in Q3 and 6.8%
in Q4.

OUTLOOK

Considering the higher commodity and energy prices and
shortage of inputs due to the issues in the Strait of
Hormuz, the Central Government has been proactive in
ensuring an adequate supply of inputs across critical
sectors. On the services side, there has been a sustained
momentum in the economic activity, due to GST
Rationalization, healthy Balance Sheets of Financial
Institutions and Corporates. Agricultural sector's
prospects are supported by healthy reservoir levels, while
Business expectations remain optimistic owing to the
Government's focus on scaling up domestic
manufacturing, across several strategic and frontline
sectors supported by strong credit growth. Revival in
private sector investment, is also expected to augur well
for India's growth prospects. On the external front,
merchandise exports in FY 2026-27 are likely to be
adversely affected by disruptions to key shipping routes,
escalation in freight & insurance costs and lower demand
due to the prolonged West Asia conflict. Considering all
these factors, real GDP growth for FY 2026-27 is projected
at 6.6%, with Q1 at 6.6%, Q2 at 6.3%, Q3 at 6.5% and Q4 at
6.8% with the risks evenly balanced.

India, today stands at a juncture of relatively better
macro-economic performance, despite geopolitical
uncertainties, and volatile commodity market conditions.
Domestic economic activity has exhibited resilience,
supported by strong performance in industrial and
services activity, broad-based demand and robust
corporate performance. Inflation and external
vulnerabilities are within the manageable limits. The
Indian Financial system is entering this phase of global
uncertainty with much stronger and healthier Balance
Sheets, comfortable capital buffers, improved
profitability and Non- Performing Assets (NPA's) at multi¬
decade lows.

BANK'S PERFORMANCE

In the above backdrop, your Bank recorded a total
business of ' 1,45,007 crore in FY 2026, a 24% increase of
' 28,415 crore over the previous year figure of ' 1,16,592
crore. The Net Profit of the Bank has increased to ' 1,326
crore from '1,124 crore, 18% increase over FY 2025
position. The Net Interest Income of the Bank stood at
'2,830 crore. The Key Performance Indicators i.e., the
Return on Assets of the Bank stood at 1.56%, Return on
Equity stood at 13.35%, the Net Interest Margin of the
Bank stood at 3.74% and the Cost to Income ratio stood at
47.93% during the reporting year. The financial
performance has been discussed in detail in the
subsequent paragraphs. During the year the Bank opened
74 additional branches to total 949 branches and has
1,764 ATM's as at March 31, 2026. Further information on
the state of affairs of the Bank has been discussed in detail
in the Management Discussion and Analysis Report
forming part of this Report.

FINANCIAL HIGHLIGHTS

The Deposits and Advances for the current year stood at '78,308 crore and '66,699 crore respectively. The total business
stood at '1,45,007 crore as compared to '1,16,592 crore for the previous year registering a growth of 24%. The size of the
Balance Sheet as on March 31, 2026 is '97,024 crore as compared to '77,623 crore last year recording an increase of 25%.

PROFIT

Gross profit and Net profit of the Bank stood at '2,014
crore and '1,326 crore respectively.

NET INTEREST INCOME

The Net Interest Income for FY 2026 stood at ' 2,830 crore
as compared to '2,316 crore in the last year.

The Gross NPA and Net NPA for the year under review
stood at 1.91% and 0.68% respectively as compared to
3.09 % and 1.25% in the previous year.

The provision for tax for the reporting year stood at '345
crore. The provision for NPA for the financial year was
'254 crore vis-a-vis '255 crore last year. The total
provision increased by '133 crore to '688 crore from
' 555 crore in the previous year.

TREASURY OPERATIONS

Domestic Treasury

The gross investments rose from '17,346 crore to
'19,019 crore as of 31^st March 2026. Out of this, total
investments in Government Bonds alone were '18,873
crore, making up 99.23% of total Investments. The
financial year started positively with a 25-basis point cut
in repo rate, driven by inflation (CPI) falling to a six-year
low of 3.2% and Brent Crude oil prices dropped from $72
to $62 per barrel due to increase in supply. The JP Morgan
Government Bond Index-Emerging Markets (GBI-EM) has
reached 10% weightage by regular inflow of FPI of $20 -
$25 billion in April 2025. US treasury yields were volatile
ranging 4% to 4.50% influenced by US trade policy
announcements and geopolitical tensions. The US Fed
reduced its policy rate cumulatively by 75 bps during the
year. The Reserve Bank of India announced CRR cut by 100
bps and REPO rate cut by 125 bps during the year. RBI also
injected durable liquidity of '16.30 trillion into the
banking system through multiple rounds of Open Market
Operations (OMOs), buy / sell swaps in forex markets and
VRR to manage tightening cash conditions. In FY 2026,
benchmark bond yields touched a low of 6.10% and
reversed swiftly during the course of the year and closed
at 7.03% on account of US trade tariff and West- Asia
geopolitical tension. The Bank booked a profit of '96.84
crore during the year.

ForexTreasury

During the FY 2025-26, the Indian Rupee depreciated by
roughly 11% against US dollar, hitting its weakest level in
over a decade, closing near '94.83. The Rupee crossed the
'95 per USD mark for the first time in late March 2026. The
main reasons behind the Rupee's decline include persistent
Foreign Portfolio Investor (FPI) outflows, elevated crude
oil prices amid West Asia geopolitical tensions. Currently,
the RBI has adopted a more 'pragmatic and flexible’ stance,
letting the Rupee find its market level instead of defending
specific thresholds- a shift from its earlier policy. India's
real GDP growth for FY 2026 projected at 7.6%, driven
mainly by strong domestic consumption and investment.
Indian forex reserves rose slightly to $688.06 billion as of
March 31, 2026. The Japanese Yen experienced sharp
volatility on carry trade unwinding when Bank of Japan-
Central Bank raised its interest rate. As the Yen
strengthened, it erased the carry-trade gains, forcing
position to be unwound quickly. During the First & Second
quarters, the US 10-Year Treasury yield surged to its
highest level of 4.48% and crude oil prices went up to $120
per bbl due to the uncertainty over the import tariff
imposed by US President, Donald Trump. In FY2025-26,
profit on foreign exchange operations was '60.82 crore
compared with '37.71 crore in the previous financial year.

NET WORTH & CAPITAL ADEQUACY RATIO

Net Worth

The paid-up Share Capital of the Bank increased to '74.30
crore as on March 31, 2026 from '74.10 crore as on
March 31, 2025. During the reporting period, the Bank has
allotted 20,61,528 Equity Shares to employees under
Employee Stock Options pursuant to CUB ESOS Scheme
2008 & CUB ESOS Scheme 2017.

The Net worth of the Bank stands improved to '10,458.24
crore as on March 31, 2026 from '9,416.87 crore as on
March 31, 2025.

Capital Adequacy Ratio

As of March 31, 2026, the Bank maintained a strong capital
position with a Tier I Capital Adequacy Ratio (CRAR) of
20.82% and Total CRAR of 21.92%, significantly exceeding
the RBI-prescribed Basel III minimum requirement of
11.50%, including the Capital Conservation Buffer (CCB) of
2.50%. Tier I Capital and Tier II Capital are '10,116.06
crore and '534.64 crore respectively as on March 31, 2026.
The substantial capital buffer underlines the Bank's
financial strength, resilience, and capacity to support
future business growth and take care of potential stress
scenarios.

BONUSSHARES

The Board of Directors of your Bank at its meeting held on
April 27, 2026, recommended the issue of bonus equity
share in the ratio of 1 equity share for every 3 equity
shares of face value of '1/- each (1:3) and the same was
approved by the shareholders of the Bank through Postal
ballot on May 29, 2026 with a requisite majority.

Accordingly, 24,76,96,809 Bonus shares were allotted on
June 15, 2026 to the eligible shareholders as on the record
date i.e., June 12, 2026.

DIVIDEND

The Board of Directors of the Bank at its meeting held on
April 27, 2026, had recommended a Dividend of 200%
i.e. '2/- per equity share on face value of '1/- each fully
paid up for the Financial Year ended March 31, 2026
subject to the approval of shareholders at the ensuing
Annual General Meeting. The dividend, if declared at the
AGM, will be paid to the shareholders as on the record
date specified for such purpose, within the prescribed
timelines. The dividend payout for FY 2026 is
in accordance with the Dividend Distribution Policy
of the Bank and the same has been uploaded
in the website of the Bank. Weblink:

https:// www.cityunionbank.bank.in/filemanager/Jun26/Dividend_Distribution_Policy_2026.pdf

In case any shareholder has not claimed dividend(s) for
previous year(s), they may kindly approach the Bank or
its Registrar and Transfer Agents. The details of
Unclaimed Dividends and transfers to IEPF Account of
Govt. of India is given in a separate Report on Corporate
Governance forming a part of this Report.

BRANCH EXPANSION

During the financial year, the Bank expanded its branch
network by adding 74 more branches across the country
totalling 949 branches as on March 31, 2026. The total
ATMs stood at 1,764 which performs the job of accepting
and dispensing cash. As on March 31, 2026 the Bank had a
total of 1,273 onsite ATMs and 491 offsite ATMs.

As for the Branch spread, as on March 31, 2026, 81% of
branches are operational in South, 7% in West, 7% in
North, 4% in Central and 1% in Eastern parts of India.

FINANCIAL INCLUSION

Financial Inclusion is a concept where the banking
financial solution and services are offered to every
individual without any form of discrimination, ensuring
that even the underprivileged get easy access to banking

channels. A detailed information on financial inclusion
aspects of the Bank is set-out in Management Discussion &
Analysis Report forming a part of this report.

HUMAN RESOURCE DEVELOPMENT

The details on the Human Resource Management
functions of the Bank are set-out in detail in Management
Discussion and Analysis Report which forms part of this
Report.

EMPLOYEES STOCK OPTION SCHEME (ESOS)

The Bank has implemented Employee Stock Option
Scheme 'CUB ESOS 2008' ['ESOS'] for grant of stock options
to eligible employees of the Bank. The Shareholders of the
Bank approved the scheme on April 26, 2008 at an Extra¬
Ordinary General meeting of the Bank. The maximum
aggregate number of options that may be granted under
this scheme is 5 Crore. The Bank offers ESOS to its
employees which vests over a period of five years from the
date of grant of options i.e., 15% options each for first three
years, 25% and 30% for fourth and fifth year respectively.
The options are offered at prevailing market prices at the
time of grant to the employees. However the same is
adjusted pursuant to corporate actions viz., Rights issue,
Bonus issue etc. There were no material changes in the
ESOS of the Bank during the period under review and the
same is in compliance with the provisions of SEBI (Share
Based Employee Benefits) Regulations, 2021 as amended
from time to time ("SEBI SBEB Regulations"). As at the end
of March 31, 2026, the Bank has 12,50,436 outstanding
options for grant under the scheme.

In addition, the shareholders of the Bank at its meeting
held on August 23, 2017 approved CUB ESOS Scheme 2017
for 3 Crore options on terms and conditions mostly similar
to previous one. As on March 31, 2026, 2,56,20,900
options are yet to be granted under the Scheme. The
disclosures pursuant to Regulation 14 of SEBI (Share
Based Employee Benefits and Sweat Equity) Regulations,
2021 has been hosted in the website of the Bank and also
the same is annexed hereto as Annexure I.

Weblink:

https://cityunionbank.bank.in/filemanager/Jul26/CUB_Valuation_Report_ESOP_2026.pdf
NEW TECHNOLOGY INITIATIVES

In order to keep pace with requirements of present
generation and to offer speedy and secured tech products /
services, the Bank has taken the following initiatives
during the year 2025-26:

Co-Branded Credit Card Salary-se

The Bank tied up with Fintech Salary-se as Exclusive
Credit Card Partner for Corporate Salary Employees.
Under this program the bank has issued co-branded
Credit card to customers who are eligible as per the
eligibility criteria. These cards come up with benefits like
Reward Programs, exclusive offers etc.

Kavach - Secured Credit Card

End to End D-I-Y (Do It Yourself) journey where existing
customer can instantly get Credit card by placing lien on
existing deposits or by placing new deposits. This journey
is also available for New to Bank Customers who can
instantly place deposit via UPI and can get instant Credit
Card. This Credit Card shall get added to any UPI app for
instant payments.

Global Fintech Fest (GFF)

The Bank has participated in the Global Fintech Fest (GFF)
at Mumbai. As part of the same, Bank initiated the
following projects:

Multi Signatory Workflows via UPI for Corporates

This pioneering solution enables multiple authorizations
within a single UPI transaction, transforming how
organizations, joint account holders and corporates
manage digital approvals and payments.

UPI Cash Withdrawal at BC (Micro-ATM)

At BC outlets, UPI QR based cash withdrawal is enabled
where any bank customer can use UPI app to scan and
authenticate and collect cash from BC. This method allows
upto ' 5,000/- per transaction, ' 10,000/- as daily limit
and ' 50,000/- as monthly limit.

Bio Auth for UPI ( finger Print / face )

"Bio Auth for UPI" is a new feature that allows users to
authenticate transactions using biometric data
(Fingerprint or Facial recognition) instead of UPI PIN.
This uses on-device Biometric authentication registered
in the mobile device of the Customer.

Face Authentication for UPI

This feature is primarily for new users or those who want
to set or reset their UPI PIN without the need of a debit
card or an Aadhar OTP.

UPI Help (SLM Chatbot)

NPCI SLM chatbot has been designed to give 24/7 Instant
Assistance to customers for their grievances related to
Mandate and NPCI Payment related queries. To enhance
user engagement by providing intelligent conversational
support.

UPI Circle My Devices (IoT Payments)

UPI is now integrated with Internet of Things (IoT) devices
to enable automated, device initiated payments and this
feature shall allow TV, Car, etc. to make payments through a
linked Secondary UPI ID, managed via the primary mobile
app, with an overall goal of creating more seamless and
hands-free financial transactions.

UPI Reserve Pay (Single Block Multiple Debit SBMD)

The UPI Single Block and Multiple Debits (SBMD) is a
mechanism wherein the customers shall block funds in
their bank accounts towards a definite goods or services,
and debit shall be initiated by the service provider as and
when required on a periodic basic till the blocked funds
gets exhausted or the mandate service is cancelled /
revoked.

Loan against Mutual Funds

Facility has been enabled to open Loan against Mutual
Funds for New To Bank customers via Fintech
collaborations. The entire Journey is D-I-Y (Do It Yourself)
where the journey covers customer on-boarding, Choosing
Mutual Funds, Lien marking , Creating LAMF overdraft
account.

CUB Desire (NTB Flow)

In order to Target New to Bank customers, option is made
available to open a systematic savings plan with Goal for
Exiting CUB customers and NON-CUB Customers to save
easily and fulfil their dreams and future plans.

CUB Depend - Credit Line on UPI

We initially launched Credit Line on UPI for pre-approved
customers based on their Fixed Deposit as collateral. It is a
fully digital secured Credit Line on UPI backed by Fixed
Deposits.

CUB RuPay MSME Card

A Corporate / MSME card is proposed for the employees of
a corporate or the promoters of an MSME company under
the liability of the corporate entity. The card will be used
exclusively for business purposes and will be based upon
underwriting done on the corporate rather than on the
individual.

Software Bill of Materials

A Software Bill of Material (SBOM) is a detailed list of the
various components available in a software covering
components, libraries, dependencies within a software
product including details like versions, licenses etc. As per
the regulatory direction, we have implemented the same in
our environment during this financial year.

Kyndryl Resilience Orchestration

During this financial year, we have extended the IBM
Kyndryl Resilience Orchestration (RO), an orchestration
solution that helps organizations plan, test, and execute
disaster recovery processes automatically in our IT
environment.

Oracle Golden Gate

Oracle Golden Gate is a high-performance software
package for real-time data integration and replication. It
uses a log-based Change Data Capture (CDC) mechanism
to move data between source and target systems with
sub-second latency, without placing a heavy load on the
databases involved.

Oracle Enterprise Manager

Oracle Enterprise Manager enables administrators to
monitor system performance, detect issues pro-actively,
automate administrative tasks, and maintain high
availability across enterprise IT environments.

IBM LinuxOne

This IBM LinuxOne is designed exclusively to run Linux
workloads. It provides a highly secure and energy efficient
infrastructure for high volume and mission critical
applications. Enterprise security, confidential computing,
massive consolidation and unmatched uptime are few of
its benefits.

OTHER BUSINESS ACTIVITY

The Bank has Corporate Agency tie-up with the following
8 Insurance Companies for augmenting the Non-interest
Income:

A) Life Insurance Business:

LIC of India

Bajaj Allianz Life Insurance Company
TATA AIA Life Insurance Company

B) Standalone Health Insurance Business:

Star Health and Allied Insurance Company Ltd
Aditya Birla Health Insurance Company
Care Health Insurance

C) General Insurance Business:

Royal Sundaram General Insurance Company
Shriram General Insurance Company

The Bank offers Insurance products of all the above
companies to its customers. During the reporting year the
Bank has earned a fee income of '139.27 crore as against
'97.56 crore in the previous year, through cross selling of
Insurance products.

The Bank is also offering following additional services to
all its Customers through Net Banking & Mobile Banking
Platforms:

a. Demat , Trading and Mutual Fund

b. Demat A/c from our own DP with NSDL

c. Trading A/c from our tie up with Integrated
Enterprises (India) Pvt Ltd.

d. Mutual Fund investment solution
The Bank has tie ups with:

a. Finwizard Technology Pvt Ltd (widely known as
FISDOM) - Bank's Customers can invest in Mutual Fund
Units through Bank's Mobile Banking App and Demat
Account is not required for this purpose.

b. Integrated Enterprises (India) Pvt Ltd. (Integrated) for
customers having Demat with us and trading with
Integrated can hold units in Demat Account and
Statement of Accounts also.

SUBSIDIARIES AND ASSOCIATES

Your Bank does not have any Subsidiaries or Associates to
mention under this Report.

BOARD MEETING

The Board meetings of the Bank were held in accordance
with the provisions of the Companies Act, 2013, the
Secretarial Standards issued by the Institute of Company
Secretaries of India (ICSI) and SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 ['Listing
Regulations']. During the year under review, 11 (Eleven)
meetings were held. The details of such meetings along
with the constitution of the Board and its Committees are
given under the Report on Corporate Governance forming
a part of this Report.

BOARD OF DIRECTORS & KEY MANAGERIAL
PERSONNEL

Retirements:

Shri Narayanan Subramaniam (DIN 00166621)

Pursuant to the provisions of Section 10A(2A)(i) of the
Banking Regulation Act, 1949, as amended, read with
relevant provisions of Reserve Bank of India (Commercial
Banks - Governance) Directions, 2025, Shri Narayanan
Subramaniam, Independent Director of the Bank,
completed his 8 year tenure on the Board of the Bank and
vacated his office on the close of business hours of
June 19, 2025.

The Board hereby places on record its warm appreciation
for the excellent services rendered by Shri Narayanan
Subramaniam during his tenure.

Shri V. N. Shivashankar (DIN 00929256)

Pursuant to the provisions of Section 10A(2A)(I) of the
Banking Regulation Act, 1949, as amended, read with
relevant provisions of Reserve Bank of India
(Commercial Banks - Governance) Directions, 2025,
Shri V. N. Shivashankar, Independent Director of the Bank,
completed his 8 year tenure on the Board of the Bank and
vacated his office on the close of business hours of
February 06, 2026.

The Board hereby places on record its warm
appreciation for the excellent services rendered by
Shri. V. N. Shivashankar during his tenure.

Dr. T. S. Sridhar (DIN 01681108)

Pursuant to the provisions of Section 10A(2A)(I) of the
Banking Regulation Act, 1949, as amended, read with
relevant provisions of Reserve Bank of India (Commercial
Banks - Governance) Directions, 2025, Dr. T. S. Sridhar,
Independent Director of the Bank, completed his 8 year
tenure on the Board of the Bank and vacated his office on
the close of business hours of February 06, 2026.

The Board hereby places on record its warm appreciation
for the excellent services rendered by Dr. T. S. Sridhar
during his tenure.

Dr. N Kamakodi (DIN 02039618)

Pursuant to the relevant provisions of Reserve Bank of
India (Commercial Banks - Governance) Directions, 2025
read with RBI letter N o. D o R. Go v. N o. 4 3 8/
08.42.001/2023-24 dt. April 26, 2023, Dr. N. Kamakodi
demitted his office at the close of business hours on
April 30, 2026 after completing his 15 year term as the
Managing Director & CEO of the Bank.

Under his stewardship as the MD & CEO, the Bank
has achieved remarkable growth in Business from
'22,170 crore in 2011 to '1,44,183 crore in 2026, while
its geographical presence grew from 246 to 1,000
Branches in April, 2026. The Bank also witnessed
significant milestones in various areas - capital
augmentation through Rights Issue, Qualified
Institutional Placement [which also roped in foreign
institutional investments into the Bank], and Bonus
issues, Digital transformation, new employee welfare
measures, CSR and Sustainability initiatives.

The Board hereby places on record its warm appreciation
for the outstanding and visionary leadership of Dr. N
Kamakodi and the extraordinary services rendered by
him during his tenure.

Appointments:

Shri. R. Vijay Anandh (DIN 09656376)

During the year, the RBI vide its letter no.
DoR.Gov.No.8438/ 08.42.001/2025-26 dated February 9,
2026, had approved the appointment of Shri. R. Vijay
Anandh as the Managing Director & CEO of the Bank for a
period of 3 years w.e.f. May 1, 2026 and the same was
approved by the Shareholders on April 3, 2026 through
Postal Ballot by way of remote e-voting. Shri. R. Vijay
Anandh took charge as the Managing Director & CEO of the
Bank w.e.f. May 1, 2026.

Shri. K. Subramanian (DIN 11519754)

During the year Shri K. Subramanian was initially co-opted
as an Additional Director by the Board (not liable to retire
by rotation) at its meeting held on February 2, 2026
pursuant to the provisions of Section 161(1) of the Act
w.e.f. February 2, 2026 up to June 30, 2030. The
Shareholders of the Bank have approved his appointment
as an Independent Director w.e.f. February 2, 2026,
through Postal Ballot by way of remote e-voting on
April 3, 2026.

Shri. R. Mohan (DIN 06902614)

Shri. R. Mohan was initially co-opted as an Additional
Director by the Board (not liable to retire by rotation) at its
meeting held on April 27, 2026 pursuant to the provisions
of Section 161(1) of the Act w.e.f. April 27, 2026 up to
May 15, 2030. The Shareholders of the Bank have approved
his appointment as an Independent Director w.e.f. April 27,
2026, through Postal Ballot by way of remote e-voting on
May 29, 2026.

Directors to retire by Rotation

All directors on the Board except Shri. R. Vijay Anandh,
Managing Director and CEO and Shri. V. Ramesh, Executive
Director of the Bank are Independent Directors.
Independent Directors are not required to retire in terms
of Section 149(13) of the said Act. Further, as per the
provisions of Section 152(6) of Companies Act, 2013 read
with Article 26(b) of the Articles of Association of the Bank,
none of the Executive / Whole-time Directors are subject to
retirement by rotation. Therefore, no Director including
MD & CEO and Executive Director are required to retire by
rotation at the ensuing Annual General Meeting.

Declaration by Independent Directors

The Bank has received relevant declarations from all the
Independent Directors under Section 149(6), 149(7) of the
Companies Act, 2013, notifications issued by the Ministry

of Corporate Affairs and SEBI Listing Regulations, 2015 as
amended. The Board is satisfied that the Independent
Directors meet the criteria of independence as stipulated
under the aforesaid provisions of the Companies Act,
2013.

Further, in compliance with MCA Notification No. G.S.R
805(E) dt. October 22, 2019, all Independent Directors of
the Bank have registered themselves in the Independent
Directors data Bank of Indian Institute of Corporate
Affairs and are qualified / exempt from undertaking self¬
assessment exam.

Familiarization program for Independent Directors

The details on programme for familiarization of
Independent Directors with the Bank, their role, rights
and responsibilities in the Bank and related matters are
provided separately under the Corporate Governance
Report forming a part of this Annual Report.

Performance Evaluation

In line with the provisions of the Companies Act, 2013,
SEBI Listing Regulations, 2015 and relevant notifications
/ guidelines issued by SEBI in this regard, there exists an
evaluation matrix approved by the Nomination and
Remuneration Committee of the Board which is used for
carrying out the performance evaluation of the Board as a
whole, its Committees as well as Independent Directors,
MD & CEO, Executive Director and Chairman.

The necessary evaluations / review were carried out by
the Board and Independent Directors to determine the
effectiveness of the Board, its Committees, MD & CEO,
Chairman and individual Directors. Additional
information on performance evaluation is set out in
Corporate Governance Section forming a part of this
Annual Report.

Key Managerial Personnel (KMP)

In terms of Section 203(1) read with Section 2(51) of the
Act and Rule 8 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, the
Bank had the following KMPs as on March 31, 2026:

• Dr. N. Kamakodi - Managing Director & CEO

• Shri. R. Vijay Anandh - Executive Director

• Shri. V. Ramesh - Executive Director

• Shri. J. Sadagopan - Chief Financial Officer

• Shri. Venkataramanan S - Company Secretary

AUDITORS

Joint Statutory Central Auditor

M/s. P. B. Vijayaraghavan & Co., Chartered Accountants,
Chennai (FRN 004712S) & M/s. M. Srinivasan & Associates,
Chartered Accountants, Chennai (FRN 004050S), Joint
Statutory Central Auditors ("SCAs'') of the Bank will retire
at the conclusion of ensuing AGM for their second year. The
Joint Statutory Central Auditors have furnished their
Report for FY 2026 which forms a part of this Report and
there are no qualifications, reservations or adverse
remarks made by the Auditors in their Report. Further, the
Auditors of the Bank have not reported any fraud under
Section 143(12) of the Companies Act, 2013.

As per RBI circular, No. DoS.CO.ARG / SEC.01 / 08.91.001 /
2021-22 dated April 27, 2021 read with the policy of the
Bank on appointment of SCAs and the provisions of Section
139 of the Companies Act, 2013 and subject to the approval
of RBI, the Board as per the recommendations of Audit
Committee had considered & approved the reappointment
of M/s. P. B. Vijayaraghavan & Co., Chartered Accountants,
Chennai (FRN004712S) & M/s. M. Srinivasan & Associates,
Chartered Accountants, Chennai (FRN 004050S) as the
Joint Statutory Central Auditors of the Bank for FY 2026-27
for their third and final term.

With respect to the above appointments, the Bank has
received the consent from such Auditors and confirmation
to the effect that they are not disqualified to be appointed
as Joint Statutory Central Auditors of the Bank in terms of
Companies Act, 2013 & the rules made there under and
RBI guidelines.

The RBI vide its letter ref.CO.DOS.RPD.No.S2057/
08.13.005/2026-27 dt. June 16, 2026 has approved of the
appointment of the aforesaid SCAs for FY 2027. The
Members are requested to consider and approve their
appointments as Joint Statutory Central Auditors of the
Bank as per the agenda set out in the Notice calling this
Annual General Meeting.

Secretarial Auditor

Pursuant to Section 204 of the Companies Act, 2013, read
with Companies (Appointment and Remuneration of
Managerial Personnel) Rules 2014 and Regulation 24A of
SEBI Listing Regulations, 2015 as amended, Shareholders
at the Annual General Meeting held on August 13, 2025 had
appointed M/s. KUVS & Associates, Practicing Company
Secretaries, Tiruchirappalli a Peer Reviewed Firm
holding Peer Review Certificate No. 6318/2024 dated

December 16, 2024 issued by the Institute of Company
Secretaries of India, as the Secretarial Auditor for a period
of 5 (five) years to conduct the Secretarial Audit of the
Bank from the FY 2026 to FY 2030.

As regards FY 2026, the Report of Secretarial Auditor
'Secretarial Audit Report' in the prescribed format is
annexed to this Report as Annexure II. In addition,
pursuant to Regulations 24A of SEBI Listing Regulations,
2015, read with relevant SEBI circular, the Bank has
obtained Secretarial Compliance Report certified by the
above Auditor on compliance with all applicable SEBI
regulations and circulars / guidelines issued thereunder
and the copy of the same was submitted to the Stock
Exchanges within due timelines. There are no adverse
observations or remarks, reservations made by the
Secretarial Auditor in their Report, except a penalty
amounting to ' 70,500 imposed by the RBI. Further, on
May 22, 2026, the RBI levied a penalty of ' 10,10,000
towards non-compliance with certain provisions of
directions issued by RBI on Priority Sector Loan accounts
and Reporting of Self Help Group (SHG) member level
data to Credit Information Companies (CICs).

CostAudit

The requirement of maintaining cost records u/s 148(1)
of the Companies Act, 2013 is not applicable to the Bank.

DIRECTORS' RESPONSIBILITY STATEMENT

In accordance with Section 134 (5) of the Companies Act,
2013, the Board of Directors of the Bank hereby declares
and confirms that:

i) In the preparation of the Annual Accounts, the
applicable Accounting Standards had been followed
along with proper explanation relating to material
departures.

ii) The Directors had selected such accounting policies
and applied them consistently and made judgements
and estimates that are reasonable and prudent so as to
give a true and fair view of the State of Affairs of the
Bank as at the end of the Financial Year and of the
Profit & Loss of the Bank for that period.

iii) The Directors had taken proper and sufficient care for
the maintenance of adequate accounting records in
accordance with the provisions of applicable laws
governing Banks in India for safeguarding the assets of
the Bank and for preventing and detecting fraud and
other irregularities.

iv) The Directors had prepared the annual accounts on a
going concern basis.

v) The Directors had laid down adequate internal
financial controls to be followed by the Bank and that
such internal financial controls are adequate and were
operating effectively; and

vi) The Directors had devised proper systems to ensure
compliance with the provisions of all applicable laws
and that such systems were adequate and operating
effectively.

INSIDER TRADING NORMS

The Bank has in place the Code of Conduct pursuant to
SEBI (Prohibition of Insider Trading) Regulations, 2015,
as amended from time to time ('SEBI PIT Regulations') to
regulate, monitor and ensure reporting of trading by the
designated persons and other connected persons. The
said code is being reviewed by the Audit Committee /
Board of Directors from time to time.

The code is adopted to maintain highest ethical standards
in dealing with securities of the Bank by persons to whom
it is applicable. The code of conduct and related
policy are available in the Bank's website. Weblink:

https://www.cityunionbank.bank.in/filemanager/Jun25/PITPolicy_31.01.2025.pdf

All listed companies are required to maintain an in-house
Structured Digital Database ("SDD") under Regulation
3(5) of SEBI PIT Regulations, 2015 and report
Unpublished Price Sensitive Information (UPSI) under
Regulations 9(2). In this regard, our Bank has in place the
required software which has been integrated in the Bank's
server. The trades of all Designated and Connected
persons ("Insiders") are monitored on a continuous basis.

Further, in order to exercise additional vigil on the trades
conducted by all Insiders, the PAN of all the Insiders are
linked in the database of RTA and thereby the RTA
furnishes a Weekly Report to the Bank on trades
conducted by the Insiders. In addition, the SEBI as per its
circular dated July 19, 2023 has notified the freezing of
transactions related to the PAN of Insiders at Depository
Level effective October 1, 2023. Accordingly, the Demat
Accounts related to the PAN numbers of Insiders of the
Bank are being frozen by our Designated Depository -
NSDL for trading in the equity shares of the Bank, during
the Trading Window Closure period beginning with the
first day of the closure period till completion of two days
after declaration of financial results.

MATERIAL CHANGES AND COMMITMENTS
AFFECTING THE FINANCIAL POSITION OF THE BANK
AND SIGNIFICANT / MATERIAL ORDERS PASSED BY
THE REGULATORS

There are no material changes and commitments
affecting the financial position of the Bank which occurred
between the end of the financial year of the Bank i.e.,
March 31, 2026 and the date of Directors' Report
i.e., June 23,2026. In this connection, it needs to be
mentioned, though not significant / material, during the
reporting year, the RBI has levied a penalty of ^70,500
towards Chest / ATM Cash out related transactions and
some findings during the Incognito visits FY 2026.
Further, on May 22, 2026, the RBI levied a penalty of
^10,10,000 towards Non-compliance with certain
provisions of directions issued by RBI on Priority Sector
Loan accounts and Reporting of Self Help Group (SHG)
member level data to Credit Information Companies
(CICs).

POLICIES

Directors Appointment(s) and Remuneration /
Compensation Policy

The Bank has formulated and adopted a policy on Board
Diversity as per which the Nomination and Remuneration
Committee of the Board ('NRC') conducts the preliminary
assessment for appointment of Directors on the Board of
the Bank and makes suitable recommendations to the
Board for its consideration.

The NRC identifies and assesses the qualifications and
positive attributes of the proposed candidate for the
position of Director based on the disclosures /
declarations received from such person under the
Companies Act, 2013, the Banking Regulation Act, 1949
and also RBI guidelines. The NRC makes a thorough
scrutiny of the prospective candidate and certifies the fit
and proper status to the Board after exercising above due
diligence process.

Apart from the above, the NRC before the appointment of
an Independent Director also considers the Declaration
on Independence furnished by the proposed candidate for
the position of Director under Section 149 (7) of the
Companies Act, 2013 and SEBI Listing Regulations, 2015.
Further, the Bank has a Compensation Policy which is in
accordance with the directives issued by the Reserve Bank
of India. NRC oversees the framing, implementation and
review of the Compensation Policy of the Bank. The
Compensation Policy of the Bank is briefed under
Corporate Governance Report forming a part of Annual
Report and it is available at the Bank's website.
Weblink:

https://www.cityunionbank.bank.in/filemanager/May24/Compensation%20Policy_26032024.pdf

RISK MANAGEMENT

Pursuant to Regulation 21 of SEBI Listing Regulations, the
Bank has constituted the Risk Management Committee.
The details of the said Committee together with the terms
of reference are set out in the Report on Corporate
Governance, which forms a part of this Annual report.

Fu rther, the Bank has in place an Integrated Risk
Management framework supported by detailed policies
and processes for management of Credit Risk, Market Risk,
Liquidity Risk, Operational Risk and various other Risks.
The details on the Risk Management framework of the
Bank is detailed in the Management Discussion and
Analysis section appended to this Report.

BUSINESS RESPONSIBILITY AND SUSTAINABILITY
REPORT

As per Regulation 34(2)(f) of SEBI Listing Regulations,
2015, your Bank has prepared the Business Responsibility
and Sustainability Report setting out the Bank's Social,
Environmental and Governance aspects.

The SEBI vide circular dated July 12, 2023 on BRSR Core -
Framework for Assurance and ESG disclosures for value
chain, notified Disclosures and Assurance for the value
chain of top 500 listed entities (by market capitalization).
Accordingly, the same is applicable for our Bank for
FY2026. The Bank had appointed M/s. J. Sundharesan &
Associates, Practising Company Secretaries, Bengaluru as
its BRSR consultant and after conducting necessary due
diligence they have issued Reasonable Assurance Report
which is available in the link given below along with the
BRSR. Weblink:

https://cityunionbank.bank.in/filemanager/Jul26/BRSR2026.pdf

DEPOSITS UNDER CHAPTER V OF COMPANIES ACT,
2013

Being a Banking company, as Section 73 of Companies Act,
2013 is not applicable, hence the disclosures as required
under Rule 8(5)(v) & (vi) of the Companies (Accounts)
Rules, 2014 are not applicable.

INTERNAL FINANCIAL CONTROL SYSTEMS & ITS
ADEQUACY

The Bank has put in place adequate internal financial
controls commensurate with the size and scale of its
operations. The Bank has, in all material aspects, adequate
Internal Control Systems over Financial Reporting and
these controls have been designed to capture the essential
components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls over Financial

Reporting issued by the Institute of Chartered
Accountants of India. Such Internal Financial Controls
over Financial Reporting were operating effectively
during the Financial Year. More details have been set out
in Management Discussion and Analysis Report which
forms a part of this Report.

RELATED PARTY TRANSACTIONS

The Board of Directors of the Bank has adopted a policy on
Related Party Transactions which is in line with the
Companies Act, 2013 and SEBI Listing Regulations, 2015.
During the reporting year, all transactions with related
parties of the Bank were in the ordinary course of
business and on an arm's length basis. The Bank did not
enter into any material transaction with such related
parties, under Section 188 of the Companies Act, 2013,
during the year. Form AOC-2, as required under Section
134 (3) (h) of the Companies Act, 2013, read with Rule 8
(2) of the Companies (Accounts) Rules 2014, is attached
as Annexure III forming part of this Report. A detailed
policy on the Related Party Transaction is available at the
Bank's website. Weblink:

https://www.cityunionbank.bank.in/filemanager/Jun26/RPT_Policy_2026.pdf

LOANS, GUARANTEES AND INVESTMENTS

The Loans, Guarantees and Investments made in
securities by the Bank are exempt pursuant to the
provisions of Section 186 (11) of the Companies Act, 2013
and hence do not attract any disclosure required under
Section 134 (3)(g) of the Companies Act, 2013.

ANNUAL RETURN u/s 92(3) OF COMPANIES ACT, 2013

The Annual Return pursuant to Section 92(3) of the
Companies Act, 2013 read with Rule 12 (1) of the
Companies (Management and Administration) Rules,
2014 is uploaded in the website of the Bank. Weblink:

https://www,cityunionbank,bank,in/filemanager/Nov25/MGT7-AB6841657,pdf

CORPORATE SOCIAL RESPONSIBILITY (CSR)

In compliance with Section 135 of the Companies Act,
2013 (the Act) read with the Companies (Corporate Social
Responsibility Policy) Rules, 2014 as amended from time
to time and in consonance with the CSR policy, the Bank
had undertaken a number of initiatives that contribute to
society at large, in the areas of healthcare, education,
environment, preservation & improvement of Water
Bodies and preservation of the country's rich culture and
heritage.

The Bank has established CUB Foundation, a non-profit
entity to identify suitable deserving projects, recommend
and oversee the CSR initiatives of the Bank. The Annual
Return on CSR activities as required under Rule 9 of the
Companies (Corporate Social Responsibility Policy) Rules
2014 is furnished under Annexure IV to this Report.

Further, in accordance with Section 135(5) of the Act read
with Rule 8(3)(a) of the Companies (Corporate Social
Responsibility Policy) Rules, 2014, two projects funded in
FY 2025 i.e., "Kalvi Shakti Movement - Phase II"
implemented in Tamil Nadu and "Vidya Shakti"
implemented in Uttar Pradesh and Andhra Pradesh
(funded by Open Mentor Trust which is an implementing
trust of IIT pravartak) and "Semiconductor Packaging &
Testing Facility - SASTRA," are required to undergo Impact
Assessment through a third-party agency. Accordingly,
assessment of such projects has been conducted by
M/s. B Balaumasudhan & Co., Chartered Accountants,
Chennai and they have submitted their report. As per MCA
General Circular No. 14 / 2021 dt. August 25, 2021, a
summary of such assessment reports are given hereunder
while the complete report is given in the website of the
Bank.

Kalvi Shakti Movement - Phase II & Vidya Shakti

The projects reached over 3 lakh students through
technology-enabled learning platforms and Rural internet
Centres, trained more than 7,500 teachers in digital
pedagogy and provided employability training to 5000¬
6000 youth, resulting in placement opportunities. These
projects also helped 88 students from Varanasi cleared the
NMMS scholarship examination. The Digital Didis
initiative empowered 425 women with digital literacy and
2 among them achieved "Lakhpati Didi" status. Supported
by 2,105 Rural Internet Centers and 1,440 live online
learning sessions, these projects has significantly
enhanced access to quality education at a cost less than
^35 per student per year, compared to a market rate of
^3,000 . These projects has delivered measurable,
sustainable and transformative impact across education,
digital inclusion, employability and women's
empowerment in rural India with a potential to scale 10x
in near future. Weblink:

https://cityunionbank.bank.in/filemanager/Jun26/Impact_Assessment_Report_Final_Version.pdf

Semiconductor Packaging & Testing Facility - SASTRA
(Phase I)

This project was aimed at imparting theoretical and
experimental knowledge in electronic packaging &

testing to develop quality manpower for India's growing
semiconductor ecosystem. The facility is constructed
within 3000 sq. ft and it comprise of 10,000 class and
1,00,000 clean rooms. The equipments were procured
from leading global manufacturers based in several
countries. Under this project, three faculty from SASTRA
visited Lunghwas University of Science & Technology,
Taiwan for hands-on training. During August 2025 and
January 2026, SASTRA organized a two-day Indo-Taiwan
Conference that had more than 900 participants and 140
delegates representing 20 industries and 25 academic
institutions respectively. This project is expected to have
over 1,000 beneficiaries annually, having 1,250 last year
who will be provided with career paths, as SASTRA has
signed MoU with Tata Electronics and Caliber
Interconnects. The Phase II of the facility will be
completed by December, 2026. Weblink:

https://cityunionbank.bank.in/filemanager/Jun26/SASTRA_Semiconductor_Phase_I_Report.pdf

DISCLOSURE TO BE MADE UNDER SECTION 177(8) OF
COMPANIES ACT, 2013

The Board of the Bank had constituted the Audit
Committee under the extant guidelines of Reserve Bank of
India (RBI), provisions of the Companies Act, 2013 and
SEBI Listing Regulations, 2015. The details of the
composition of the Audit Committee are furnished in the
Corporate Governance Report which forms a part of this
Report.

CORPORATE GOVERNANCE

The Bank is committed to achieving the highest standards
of Corporate Governance. It also adheres to the Corporate
Governance requirements set by the Regulators /
applicable laws. The Corporate Governance practices
followed by the Bank aims to ensure value creation for all
its stakeholders through ethical decision making and
maintaining transparency.

A detailed Report on Corporate Governance standards
followed by the Bank as per SEBI Listing Regulations,
2015, Companies Act, 2013 and Rules made there under
alongwith Certificate of Compliance issued by the
Secretarial Auditor is furnished separately which forms
part of this Report.

MANAGEMENT DISCUSSION & ANALYSIS

A detailed Management Discussion and Analysis Report
for the year under review as stipulated in SEBI Listing
Regulations, 2015 is presented as a separate section
forming a part of this Report.

OTHER DISCLOSURES

Conservation of Energy and Technology Absorption

In respect of the nature of activities carried out by the
Bank, w.r.t. the provisions of Section 134 (m) of the
Companies Act, 2013 relating to conservation of energy
and technology absorption, the Bank has taken every effort
to conserve energy. The Bank has installed energy efficient
equipments at all its branches including installation of
Solar panels wherever feasible and power saving LED
bulbs at majority of Branches and Central Office. The
members may refer the Business Responsibility and
Sustainability Report for more details on this aspect.

On the technological front, the Bank continued to offer
reliable and secure banking service to its customers by
providing the latest customer friendly technological
solutions. A separate para on Technology matters has been
set out elsewhere in this Report.

Foreign Exchange Business

The Bank continues to encourage country's export
promotion by lending to exporters and offering them forex
transaction facilities. The Bank also offers necessary
foreign exchange transaction facilities to all users having
underlying forex exposures.

EMPLOYEES / OTHER DISCLOSURES

DISCLOSURES UNDER SECTION 197 OF THE
COMPANIES ACT, 2013

The disclosures pursuant to the provisions of Section 197
read with Rule 5(1) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 are
furnished as Annexure V.

In terms of Section 197(12) of the Act, read with Rule 5(2)
and 5(3) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, a
statement showing the names and other particulars of the
employees drawing remuneration in excess of limits set
out in said rules forms a part of this Report.

In accordance with the provisions of Section 136(1) of the
Act, the Integrated Annual Report excluding the aforesaid
information, is being sent to the members of the Bank and
others entitled thereto. The said information is available
for inspection by the Members at the Registered Office of
the Bank during business hours up to the date of the
ensuing AGM. Any member interested in obtaining a copy
thereof, may write to the Company Secretary of the Bank at
its registered office or email at shares@cityunionbank.in

Disclosure under Section 22 of Sexual Harassment of
Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013

The Bank has a policy on Prevention of Sexual Harassment
at Workplace, which provides protection for Women
employees working in the organization. An Internal
Complaint Committee 'ICC' has been set up to redress the
complaints received under Sexual Harassment. ICC has
reported the details of complaints, for the Financial Year as
follows:

Whistle Blower / Vigil Mechanism

Pursuant to the provisions of Section 177(9) and (10) of
the Companies Act, 2013, a vigil mechanism for Directors
and employees to report genuine concerns has been
established. The Bank has a policy on Whistle Blower /
Vigil Mechanism which is uploaded in the website of the
Bank. Weblink:

https://www.cityunionbank.bank.in/filemanager/Jun25/WHISTLE_BLOWER_POLICY_2025.pdf

There exists an online forum for all employees in the
intranet server of the Bank to report genuine concerns

under the mechanism. During the reporting period there
was an opening balance of 1 complaint and 13 complaints
were received during the year under this mechanism. All
the 14 cases had been disposed off. As on March 31, 2026
there were no pending complaints. The functioning of the
mechanism is reviewed by the Audit Committee from time
to time.

Compliance with Secretarial Standards and applicable
laws

It is hereby confirmed that the Bank has complied with the
Secretarial Standards issued by the Institute of Company
Secretaries of India (SS-1 and SS-2) relating to Meetings of
the Board, its Committees and Shareholders. Further
proper systems are in place to ensure compliance with all
laws applicable to the Bank.

ACKNOWLEDGEMENT

The Board of Directors of the Bank would like to take this
opportunity to thank all its Customers and Stakeholders
and wish to place on record its sincere appreciation for the
guidance, assistance and co-operation received from the
Reserve Bank of India, SEBI, IRDAI, NABARD, NHB, SIDBI,
EXIM BANK, ECGC, DICGC, NPCI, Stock Exchanges,
Depositories, Integrated Registry Management Services
Private Limited, Life Insurance Corporation of India and all
other authorities.

Your Directors also place on record their deep sense of
appreciation for the Bank's Executives, members of the
Staff and all other employees for their unwavering
commitment to serve the Bank to the best extent possible.

For and on behalf of the Board

Sd/-

G. Mahalingam

Date : June 23, 2026 DIN 09660723

Place : Chennai Chairman