Your Directors have immense pleasure in presenting the
Bank's Annual Report along with the Audited Statement of
Accounts and the Cash Flow statement for the year ended
31^st March 2026.

FINANCIAL HIGHLIGHTS

The major highlights of your Bank's performance
during FY26 are as follows:

A. RESOURCE MOBILIZATION & ADVANCES:

1. Global Deposits grew by 12.29% YoY and stood at
?8.28 lakh Cr in March 2026.

2. Domestic Deposits grew by 12.28% to ?7.89 lakh Cr.
Domestic CASA increased to ?3.13 Lakh Cr and CASA
share was at 39.67%. In order to augment the CASA
portfolio, Bank has mobilized 38.82 lakh new CASA
accounts (excluding BSBD Savings account) during
FY26.

3. Gross Advances of the Bank (Global) grew by 13.43%
YoY and stood at ?6.67 lakh Cr as on March 31,2026
from ?5.88 lakh Cr as on March 31,2025.

4. Priority Sector Advances were at ? 2.15 lakh Cr as on
March 31, 2026. Priority sector as a percentage to
Adjusted Net Bank Credit (ANBC) for FY26 stood at

41.46% as against the mandatory target of 40.00%.

5. Agriculture Credit (Priority Sector) was at ?96,191 Cr
and as a percentage to ANBC the same stood at
18.55% as against the mandatory target of 18.00%.

6. All mandatory targets under priority sector stipulated
by RBI have been surpassed during FY26.

7. Gross NPA and Net NPA reduced to ?13,190 Cr
(1.98%) and ?965 Cr (0.15%) respectively as on
March 31, 2026 from ?18,179 Cr (3.09%) and
?1,110 Cr (0.19%) respectively as on March 31,2025.

8. Total recovery of NPAs (cash recovery including
recovery in AUC accounts, upgradation and Mol)
during FY26 amounted to ?6,651 Cr as against
?7,651 Cr in the previous year.

9. Provision Coverage Ratio (PCR) of the Bank improved
by 18 bps to 98.28% in FY26 as against 98.10% in
FY25.

10. Domestic Branch network of the Bank expanded to
6001, comprising of 2011 Rural, 1605 Semi Urban,
1195 Urban and 1190 Metropolitan branches.
Besides, Bank has 3 overseas branches and 1 IFSC
Banking unit (GIFT City). Total number of Bank's ATMs
and BNAs stood at 5657 which include 645 offsite
ATMs/BNAs and 3 mobile ATMs. Bank is also having
17032 Business Correspondents taking the Pan India
touch points to 28691.

B. INCOME AND EXPENDITURE

1. Interest income of the Bank grew by 8.79% to
f67,451 Cr in FY26 from f62,002 Cr in FY25.

2. Net Interest Income grew by 6.91% to f26,915 Cr in
FY26 from f25,176 Cr in FY25.

3. Fee based Income grew by 5.15% to f3,709 Cr in FY26
from f3,528 Cr in FY25.

4. Operating Profit increased by 4.83% at f19,916 Cr in
FY26 from f18,998 Cr in FY25.

5. Profit before Tax grown by 10.94% to f16,404 Cr in
FY26 from f14,787 Cr in FY25.

6. Net Profit up by 11.33% YoY to f12,156 Cr in FY26
from f10,918 Cr in FY25.

C. KEY RATIOS FOR FY26: (in %)

1. Cost of Deposits (CoD) reduced by 15 bps to 4.97% in
FY26 from 5.12% in FY25.

2. Return on Assets (RoA) stood at 1.31% in FY26.

3. Net Interest Margin (NIM) Domestic stood at 3.36%
in FY26.

4. Average Business per employee increased by
f414 lakh to f3336 lakh in FY26 from f2922 lakh in
FY25.

5. Profit per employee increased by f2.97 lakh to
f30.22 lakh in FY26 from f27.25 lakh in FY25.

D. NETWORTH AND CRAR

1. Networth of the Bank stood at f65,628 Cr as
on March 31, 2026 as against f57,029 Cr in
March 31,2025.

2. Shareholding of Govt. of India (GoI) is 73.84% as on
March 31,2026

1. As per Basel III norms, the CET- I ratio was at 16.40%
on 31.03.2026 compared to 15.36% on 31.03.2025 as
against minimum requirement of 8.00%.

2. The Tier-I Capital was at 16.40% as on March 31,2026
as against 15.85% as on March 31,2025.

3. The Capital to Risk Weighted Assets Ratio (CRAR)
was at 17.93% as on March 31, 2026, compared to
17.94% in March 31, 2025 as against the regulatory
requirement of 11.50%.

E. RECRUITMENT / TRAINING

As per the Government of India guidelines, Bank is
providing Reservation to SC/ST/OBC/EWS/PwBD/
ExSM categories under direct recruitment wherever
applicable. Further, pre-promotion trainings were
conducted to the employees belonging to SC/ST/
OBC/ PwBD categories in the internal Promotion
process.

F. CHANGES IN THE BOARD DURING THE FINANCIAL
YEAR:

All the Directors except Shareholder Directors are
appointed/nominated by the Govt. of India (GOI).
During the FY'26, DFS, GOI has appointed/nominated,

• Ms. Mini T M as Executive Director of the Bank

with effect from 24.11.2025.

• Shri Balmukund Sahay as Part Time Non-Official
Director of the Bank with effect from 11.04.2025.

• Shri Vishvesh Kumar Goel as Part Time Non¬
Official Director of the Bank with effect from
11.04.2025

• Shri Bhupinder Singh Bhalla was elected as

Shareholder Director of the Bank with effect from
31.12.2025 for a period up to 08.03.2027

The details regarding the completion/ cessation of the

term of appointment of Directors during FY' 26 are as

follows:

• Shri Mahesh Kumar Bajaj, Executive Director

of the Bank demitted office on 30.06.2025 on
superannuation and accordingly ceased to be
Executive Director of the Bank with effect from
01.07.2025.

• Shri Pradeep Kumar Malhotra submitted his

resignation vide letter dated 28.11.2025 pursuant to
RBl's communication dated 30.07.2025 disqualifying
serving employees of Life Insurance Corporation of
India being connected with para banking activities to
be on the Board of PSBs as Shareholder Director in
terms of para 4.3(iv)(b) of Master Direction-Reserve
Bank of India ('Fit & Proper' Criteria for Elected
Directors on the Board of PSBs) Directions, 2019
dated August 02, 2019 (updated as on June 03, 2020).
Accordingly, Shri Pradeep Kumar Malhotra ceased to
be a Director of the Bank w.e.f. 28.11.2025

G. DIRECTORS' RESPONSIBILITY STATEMENT

The Directors confirm that in the preparation of the annual

accounts for the year ended March 31,2026: -

1. The applicable accounting standards have been
followed along with proper explanation relating to
material departures, if any.

2. The accounting policies framed in accordance with
the guidelines of the Reserve Bank of India, were
consistently applied.

3. Reasonable and prudent judgment and estimates
were made so as to give a true and fair view on the
state of affairs of the Bank at the end of the financial
year and profit of the Bank for the year ended
March 31,2026.

4. Proper and sufficient care were taken for the
maintenance of adequate accounting records in
accordance with the provisions of applicable laws
governing banks in India; and

5. The accounts have been prepared on a going concern
basis.

H. Performance evaluation of Bank's Board and its
Directors

To strengthen governance practices, Bank engaged a
reputed External Expert to conduct the performance
evaluation of the Board, its Committees and
Individual Directors. The evaluation methodology
was accepted by the Nomination and Remuneration
Committee. Accordingly in compliance with the SEBI
(Listing Obligations and Disclosure Requirements)
Regulations, 2015 and the principles outlined in the
SEBI Guidance Note on Board Evaluation issued vide
Circular No. SEBI/HO/CFD/CMD/CIR/P/2017/004 dated
January 5, 2017. External Expert has carried out the
evaluation of the Board, Board-level Committees and
Individual Directors for FY 2025-26.

I. ACKNOWLEDGEMENT

The Board expresses its deep sense of gratitude to the
Government of India, State Governments, Reserve Bank
of India and Securities & Exchange Board of India for the
valuable guidance and support received from them. The
Board is also grateful to the financial institutions and
correspondent Banks for their co-operation and support.
The Board acknowledges the unwavering support of its
customers and shareholders.

The Board places on record its appreciation for the
valuable contribution made by

Shri Mahesh Kumar Bajaj and Shri Pradeep Kumar
Malhotra who ceased to be members during the financial
year.

The Board also places on record its appreciation for the
dedicated services and contribution made by members of
staff for the overall performance of the Bank.

For and on behalf of Board of Directors
(Binod Kumar)

MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER