Dear Shareholders,

Your Directors are pleased to present the 32^nd Annual Report on the business and financial operations of HDFC Bank Limited ("HDFC Bank" or "Bank"), along with the audited accounts for the year ended March 31, 2026.

The Indian economy demonstrated resilience during the Financial Year 2025-26 despite an increasingly uncertain global environment marked by geopolitical tensions, trade-related disruptions, and volatility in financial markets. India's GDP is estimated to have grown by 7.7 per cent during FY 2025-26, compared to 7.1 per cent in FY 2024-25.

Globally, economic growth remained steady at 3.4 per cent in 2025, though the outlook has become more uncertain. The IMF expects global growth to moderate to around 3.1 per cent in 2026 amid geopolitical tensions, tighter financial conditions, and elevated commodity prices.

For more details, please refer to the Macroeconomic and Industry section on page no. 258.

Your Bank continued to prioritise growth while strengthening its focus on governance, sustainability and inclusive development. The Bank's Advances grew by 12.1 per cent, up from 5.4 per cent in FY 2024-25. Your Bank's Deposits grew by 14.4 per cent. Deposit growth continued to outpace credit growth.

FINANCIAL PARAMETERS

The Bank posted stable growth in profits and revenues in the Financial year 2025-26 with a Net Interest Margin of 3.34 per cent. This is a product of a well diversified loan book across products, customer segments, sectors and geographies. Its focus on credit evaluation and managing risk and return enabled it to maintain its traditionally strong asset quality.

BASED ON STANDALONE FINANCIAL STATEMENTS

The income statement reflected a growth in revenue comprising Net Interest Income and Non-Interest Income. While the former grew by 4.9 per cent, the latter grew by 37.0 per cent year-on-year. On an overall basis, Total Net Revenue for the year ended March 31, 2026, reached '1,91,218.6 crore, reflecting an increase of 13.6 per cent over the previous year.

Net Profit increased by 10.9 per cent to ' 74,671.3 crore from ' 67,347.4 crore. Return on Average Net Worth was 14.3 per cent while Basic Earnings Per Share was ' 48.62 up from ' 44.15.

Total Advances grew by 12.1 per cent and Total Deposits grew by 14.4 per cent year-on-year. Net Interest Margin (NIM) was at 3.34 per cent.

Gross Non-Performing Assets (GNPAs) stood at 1.15 per cent as against 1.33 per cent. This is amongst the lowest in the industry.

MERGER

On July 1, 2023, HDFC Ltd. merged with and into HDFC Bank, enabling the Bank to add mortgages to its suite of products. This also brought several marquee financial services institutions, including HDFC Life, HDFC AMC and HDFC Ergo as subsidiaries under the HDFC Bank Group, in addition to the existing HDFC Securities and HDB Financial Services. The merger's successful completion and continued progress has not only boosted the Bank's balance sheet but also significantly expanded HDFC Bank Group's presence in key products and services. Almost three years into the merger, the merged entity continues to build on its shared values and realise the full potential of its market synergies.

PARIVARTAN

Parivartan, HDFC Bank's Corporate Social Responsibility programme, continued to deliver social impact during the year by supporting initiatives that address critical development needs and strengthen community resilience.

During the year, interventions under Parivartan were implemented across six focus areas:

1. Rural Development

2. Promotion of Education

3. Skill Training & Livelihood Enhancement

4. Healthcare & Hygiene

5. Financial Literacy & Inclusion

6. Natural Resource Management.

Through targeted efforts across these areas, the Bank expanded its outreach to geographies with limited access to essential services. The initiatives contributed to improved access to education and healthcare, enhanced livelihood opportunities, and increased financial awareness among beneficiaries.

The Bank's Integrated Rural Development Programme continued to drive the creation of self-reliant village ecosystems, with a focus on sustainable outcomes and long-term community development.

Your Directors are pleased to announce that the Bank successfully fulfilled its CSR obligation for the Financial Year 2025-26.

SUMMARY

India's GDP is estimated to have grown by 7.7 per cent in the Financial Year 2025-26. This was supported by strong domestic demand conditions, easing inflationary pressures, accommodative monetary policy, and sustained public investment. GST rate cuts during the third quarter of the year added further impetus to consumer demand.

Amid the geopolitical tensions, supply chain disruptions trade-related uncertainties, and possibility of El Nino conditions, the RBI has projected GDP growth of 6.6 per cent for FY 202627, while inflation is expected to gradually move up towards 5.1 per cent. Domestic growth conditions are expected to remain supported by resilient consumption demand, improving investment activity, continued momentum in the services sector, and sustained government expenditure on infrastructure and development projects.

In the year under review, the Bank focused on expanding customer reach and profitable growth while maintaining balance sheet strength.

Your Bank continued to contribute to national development through its business as well as social initiatives. The Bank expanded financial inclusion and supported rural prosperity. It remains committed to responsible corporate citizenship by contributing to the development of society and promoting sustainability.

These achievements have been enabled by the commitment and dedication of our more than 2.11 lakh employees, whose contributions continue to be pivotal to the Bank's future. We remain totally committed to attract, nurture, and retain top talent and emerge as one of the industry's premier employers.

MISSION AND STRATEGIC FOCUS

Your Bank's mission is to be a ‘World-Class Indian Bank'. Its business philosophy is based on five core values:

• Customer Focus

• Operational Excellence

• Product Leadership

• People

• Sustainability

Sustainability should be viewed in unison with Environmental, Social and Governance performance. As a part of this, your Bank through its CSR initiative Parivartan, seeks to bring about change in the lives of communities mainly in rural India.

During the year under review, HDFC Bank continued building a sound customer franchise across distinct businesses to achieve healthy growth in profitability consistent with its risk appetite.

The Bank is focusing on:

• Delivering a better experience and greater convenience to customers

• Increasing market share in India's growing banking and financial services industry

• Expanding geographical reach

• Cross-selling the broad financial product portfolio

• Sustaining strong asset quality through disciplined credit risk management

• Maintaining competitive cost of funds

Your Bank remains committed to the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance. Every employee affirms to abide by the Code of Conduct annually.

SUMMARY OF FINANCIAL PERFORMANCE

DIVIDEND

The Board of Directors of the Bank, at its meeting held on July 19, 2025, had recommended a special interim dividend of '2.50 (Rupees Two and Fifty Paise only) per equity share of '1/- each, (adjusted for bonus) and the same was paid on August 11, 2025. Further, the Board of Directors of the Bank, at its meeting held on April 18, 2026, recommended a final dividend of '13.00 (Rupees Thirteen only) per equity share of '1/- each, for the Financial Year ended March 31, 2026. With this, the total dividend for the year ended March 31, 2026, is '15.50 (Rupees Fifteen and fifty Paise only) per equity share of ' 1/- each, (adjusted for bonus) for the year ended

March 31, 2026. This translates to a Dividend Payout Ratio of 31.9 per cent of the profits for the Financial Year ended March 31,2026.

In general, your Bank's dividend policy, among other things, balances the objectives of rewarding shareholders and retaining capital to fund future growth. It has a consistent track record of dividend distribution and the Dividend Payout Ratio has been over 20 per cent. For the Financial Year ended March 31, 2026, the Dividend Payout Ratio is 31.9 per cent which includes the special interim dividend paid during the year. The dividend policy of your Bank is available on the Bank's website.

https://www.hdfc.bank.in/content/dam/hdfcbankpws/in/en/personal-banking/discover-products/about-us/corporate-gov- ernance/codes-and-policies/dividend-distribution-policv.pdf

RATINGS

* The instruments /bank facilities have been transferred from erstwhile Housing Development Finance Corporation Limited (HDFC Ltd) on account of amalgamation of HDFC Ltd into HDFC Bank Limited with effect from July01,2023.

ISSUANCE OF EQUITY SHARES AND EMPLOYEE STOCK OPTION SCHEME (ESOP)

As on March 31, 2026, the issued, subscribed and paid-up capital of your Bank stood at '15,39,33,68,328.00 comprising 15,39,33,68,328 equity shares of '1/- each.

During the year ended March 31, 2026, the Bank issued and allotted bonus shares, in the proportion of 1:1, i.e. 1 (one) bonus equity share of 1/- each for every 1 (one) fully paid-up equity share held as on the record date. Accordingly, the Bank has allotted 7,67,70,39,761 equity shares as bonus shares on August 28, 2025.

Further 6,41,06,893 equity shares of face value of ' 1/- each were issued by your Bank pursuant to the exercise of Employee Stock Options (ESOPs) / Restricted Stock Units (RSUs) under the approved Employee Stock Option Schemes/Employee Stock Incentive Scheme.

For information pertaining to ESOPs/RSUs, please refer to Annexure 1 of the Directors' Report.

CAPITAL ADEQUACY RATIO (CAR)

As on March 31,2026, your Bank's total CAR, calculated as per Basel III Regulations, stood at 19.7 per cent, well above the regulatory minimum requirement of 11.9 per cent, including a Capital Conservation Buffer of 2.5 per cent and an additional requirement of 0.4 per cent on account of the Bank being designated as a Domestic Systemically Important Bank. Tier I Capital was at 17.7 per cent as of March 31, 2026.

WELL ABOVE REGULATORY MINIMUM REQUIREMENT OF 11.9 PER CENT

MACROECONOMIC AND INDUSTRY DEVELOPMENTS

The Indian economy demonstrated resilience during the Financial Year 2025-26 despite an increasingly uncertain global environment marked by trade-related disruptions, geopolitical tensions and volatility in financial markets. India's GDP is estimated to have grown by 7.7 per cent during the Financial Year 2025-26, compared to 7.1 per cent in the previous fiscal year, supported by strong domestic demand conditions, easing inflationary pressures, accommodative monetary policy, and sustained public investment. GST rate cuts during the third quarter of the year added further impetus to consumer demand.

Economic activity remained broad-based across sectors with continued momentum in manufacturing, construction, and services. Manufacturing activity benefited from improving domestic demand and export-related production, while the construction sector continued to be supported by government infrastructure spending and healthy real estate activity. The services sector remained a key driver of growth, aided by strong demand across financial, digital, travel, and business services. Agricultural output and rural demand conditions also remained favourable during the year, supported by a normal monsoon and improved farm sector activity.

Inflationary pressures moderated significantly during FY 202526, with headline retail inflation averaging 2.1 per cent during the year. Lower food inflation, easing supply-side pressures, and indirect tax reductions contributed to the moderation in prices. The RBI continued to support growth during FY 2025-26 through monetary easing measures amid moderating inflation conditions reducing the policy rate to 5.25 per cent.

The banking sector continued to witness healthy balance sheet trends during FY 2025-26. With an easing in interest rates and rise in consumer demand, credit growth rose to 14.1 per cent led by strong momentum in retail and MSME loans. Asset quality across the banking sector continued to improve, with gross non-performing asset (GNPA) ratios remaining near multiyear lows of 2.15 per cent as of September 2025, supported by stronger provisioning buffers, recoveries, and improved underwriting standards.

India's external sector remained relatively stable despite heightened global volatility. The current account deficit remained contained at 0.6 per cent of GDP during FY 202526, supported by resilient services exports and remittance inflows. Merchandise and services exports recorded moderate growth of 4.6 per cent during the year despite weaker external demand conditions and tariff-related uncertainties across major economies. On the positive side, progress on trade agreements with key global partners, including the United States, the United Kingdom, and the European Union, bodes well for medium-term trade and investment prospects ahead.

Gross foreign direct investment flows remained healthy during the year rising to US$ 94.8 billion, reflecting continued confidence in India's long-term growth potential and policy environment. India also continued to benefit from global investor interest in technology, digital infrastructure, manufacturing, and artificial intelligence-led opportunities with capital flows into sectors like electronics and data infrastructure. At the same time, global financial market volatility and changing investor risk appetite resulted in fluctuations in portfolio investment flows and currency markets. Net portfolio investments saw an outflow of US$ 16.4 billion in fiscal year 2026, due to heightened risk sentiment following global tariff uncertainty and the outbreak of war in West Asia.

The Indian Rupee witnessed periods of volatility during the year amid fluctuations in global oil prices, movements in the US dollar, evolving trade dynamics, and changing global capital flows. The rupee weakened by 9.4 per cent against the US dollar during the fiscal year. Nevertheless, India's healthy foreign exchange reserve position, stable domestic macroeconomic fundamentals, and measures taken by the Reserve Bank of India (RBI) helped limit excessive market volatility and impact on the domestic financial system.

Looking ahead, the RBI has projected GDP growth of 6.6 per cent for FY 2026-27, while inflation is expected to gradually move higher towards 5.1 per cent. Domestic growth conditions are expected to remain supported by resilient consumption demand, improving investment activity, continued momentum in the services sector, and sustained government expenditure on infrastructure and development projects.

At the same time, the outlook remains subject to evolving global and domestic risks. While recent de-escalation in geopolitical tensions has reduced immediate pressures on commodity prices and global supply chains, uncertainty surrounding global trade policies and financial market volatility warrant close monitoring. The development of El Nino conditions and uneven monsoon distribution, may also impact agricultural production, rural demand, and food inflation during FY 202627. Any renewed increase in food and energy prices could lead to tighter financial conditions and influence the future trajectory of monetary policy.

Globally, economic growth remained steady at 3.4 per cent in 2025, though the outlook has become more uncertain. The IMF expects global growth to moderate to around 3.1 per cent in 2026 amid geopolitical tensions, tighter financial conditions, and elevated commodity prices.

Despite global headwinds, India continues to remain among the fastest-growing major economies globally. Stable domestic demand, ongoing infrastructure development, digitalisation, policy continuity, improving corporate and banking sector balance sheets, and a resilient financial system continue to support the medium-term growth outlook for the Indian economy.

FINANCIAL PERFORMANCE

The financial performance of your Bank for the year ended March 31, 2026 remained healthy with Total Net Revenue (Net Interest Income plus Other Income) rising 13.6 per cent to '1,91,218.6 crore from '1,68,302.4 crore in the previous year. Revenue growth was driven by an increase in both Net Interest Income and Fees & Commission. Net Interest Income (NII) grew by 4.9 per cent to ' 1,28,686.0 crore. Net Interest Margin (NIM) (as percentage of average assets) was at 3.34 per cent.

Other Income grew by 37.0 per cent to '62,532.6 crore. Excluding current year transaction gains of '9,179.4 crore from stake sale in subsidiary HDB Financial Services Ltd, Other Income grew by 16.9 per cent. The largest component was Fees and Commissions at '34,875.9 crore. Profit on Revaluation and Sale of Investments was '13,936.6 crore. Foreign Exchange and Derivatives Revenue was '6,460.0 crore and recoveries from written-off accounts were '4,014.4 crore.

Operating (Non-Interest) Expenses rose to '72,660.3 crore from '68,174.9 crore. During the year, your Bank set up 234 new branches and 33 ATMs / Cash Deposit and Withdrawal Machines (CDMs). The addition in expenses include higher spend on IT, infrastructure, and staffing expenses. Staff expenses went up due to annual wage revisions and one-time gratuity provision on account of new labour code during the year. Further, due to increased transaction volumes, UPI remitter expenses went up and Deposit Insurance and Credit Guarantee Corporation (DICGC) premium cost increased due to deposit growth. Despite higher Staff and Infrastructure Expenses, the Cost to Income Ratio was lower at 38.0 per cent (Includes certain transaction gains and gratuity provision) as compared to 40.5 per cent during the previous year.

Total Provisions and Contingencies were '23,389.6 crore as compared to '11,649.4 crore in the preceding year. The increase is mainly on account of floating provision created in the current year of '9,000.0 crore. Your Bank's provisioning policies remain more stringent than regulatory requirements.

The Coverage Ratio based on specific provisions alone excluding write-offs was 67.2 per cent and including general, floating and contingent provisions was 210.0 per cent. Your Bank made General Provisions of '754.5 crore during the year. Gross Non-Performing Assets (GNPAs) were at 1.15 per cent of Gross Advances, as against 1.33 per cent in the previous year.

Net NPA ratio stood at 0.38 per cent as against 0.43 per cent in the previous year.

Profit Before Tax grew by 7.6 per cent to '95,168.7 crore. After providing for Income Tax of '20,497.4 crore, Net Profit increased by 10.9 per cent to ' 74,671.3 crore from ' 67,347.4 crore. Return on Average Net Worth was 14.29 per cent while Basic Earnings Per Share (EPS) was '48.62 up from '44.15.

As on March 31, 2026, your Bank's Total Balance Sheet stood at '43,64,886 crore, an increase of 11.6 per cent over '39,10,199 crore on March 31,2025.

Total Deposits rose by 14.4 per cent to '31,05,251 crore from '27,14,715 crore. Savings Account Deposits grew by 11.9 per cent to '7,05,802 crore while Current Account Deposits rose by 12.9 per cent to '3,54,495 crore. Time Deposits stood at '20,44,953 crore, representing an increase of 15.5 per cent. CASA Deposits accounted for 34.1 per cent of Total Deposits.

Advances stood at ' 29,37,166 crore , representing an increase of 12.1 per cent. The Domestic Loan Portfolio at '28,90,968 crore grew by 12.3 per cent over March 31,2025.

The Bank's Debt Equity Ratio for the year ended March 31,2026 stood at 0.53 as compared to 0.74 in the previous year.

HDFC LIMITED'S BORROWING MATURITY SCHEDULE

Of HDFC Limited's borrowings of '2,25,019.44 crore as at March 31, 2026, approximately 20 per cent is due for repayment over the next two years up to FY 2028 and the balance 80 per cent is due thereafter.

BUSINESS REVIEW

Your Bank's operations are split into Domestic and International.

Retail Banking

Your Bank's Retail Assets are based on three core pillars:

> Maintaining Pristine Portfolio Quality

> Strong Digital Offering and

> Optimal Risk Pricing

The Bank's Retail Advances under Management grew to '16,14,941 crore witnessing a growth of about 7 per cent year-on-year.

Brief on segment performance:

HDFC Bank maintained a pristine portfolio quality in the retail segment. This was achieved by continuing to focus on lending to top corporates and customers with good credit scores. Personal Loans segment witnessed a strong growth with the portfolio touching ' 2,17,805 crore in the Financial Year 2025-26. Almost all applications (99 per cent) of this segment are originated digitally, while 90 per cent were disbursed digitally.

The Xpress car loans, offering seamless end-to-end digital disbursement, has increased the digital origination to 51 per cent of the total New Car Loan business.

The two-wheeler portfolio recorded a 5x surge in profits over the previous financial year, driven by a highly digital- first model with 99 per cent of customers acquired through digital channels.

Your Bank has exhibited significant year-on-year growth of 34 per cent in Gold Loans capitalising on an expanded branch network.

In the Financial Year 2025-26, your Bank's retail mortgage advances grew by 6.3 per cent year-over-year. It stood at '8,88,670 crore as compared to '8,35,656 crore in FY 2024-25.

The Payments business is a key strategic growth pillar for the Bank, contributing significantly to the assets and liabilities business.

HDFC Bank issued over nine crore cards (credit, debit and pre-paid) in the Financial Year 2025-26. This was supported by a widely distributed acceptance network across online and offline merchant ecosystems. HDFC Bank holds a high wallet share of both customers and merchants. The Bank continues to hold a leadership position across multiple product offerings within the payments business.

In the credit cards segment, the Bank continued to scale up new product offerings with the launch of the PhonePe Co-branded Credit Card and introduced new variants of Swiggy co-branded Credit Cards.

The number of credit cards issued, witnessed a growth of 11 per cent year on year, compared to industry growth of about 7 per cent. Card spends registered a robust growth of 18 per cent year on year, outperforming the industry growth of about 10 per cent.

MyCards - a comprehensive card servicing platform of the Bank, has over 4.5 crore registered customers. It is used to avail a range of card related services.

PayZapp 2.0, launched in March 2023, continues to demonstrate a strong scale-up, reaching about 2.08 crore registered users in the Financial Year 2025-26. The platform offers a comprehensive suite of payment options such as credit cards, debit cards, wallet, and UPI. This enables customers to transact seamlessly across both offline and online merchants through multiple form factors such as scan, tap, and swipe. PayZaap has over 50 lakh monthly active users.

In the Financial Year 2024-25, the Bank had introduced Zapp account to address the growing customer need for a secondary account dedicated to payments and UPI transactions. Zapp has gained steady traction, with approximately five lakh customers transacting monthly, generating around 30 lakh transactions per month.

SmartHub Vyapar: Empowering Indian Merchants

To strengthen the merchant ecosystem and enable a future-ready commerce platform, SmartHub Vyapar, an integrated payment, and business solution—was launched in October 2022. The platform continues to see strong adoption and scale, emerging as a key driver of merchant engagement and business growth.

As on March 31,2026, SmartHub Vyapar has onboarded over 20.4 lakh merchants, collectively processing a transaction value of '4.73 lakh crore. The platform enables merchants to seamlessly manage payments, access banking services, and leverage value-added tools, supporting your Bank's vision of becoming India's most trusted commerce and banking partner for merchants.

SmartGATEWAY: Building a Commerce-Ready Platform

In line with your Bank's strategic direction to build a full- stack, commerce-ready platform, the SmartGATEWAY

was launched in February 2024 as a unified solution for online merchants. The platform provides a comprehensive suite of payment acceptance capabilities. It supports over 150 payment methods, along with advanced analytics, superior payment success rates, and a frictionless checkout experience.

As on March 31, 2026, the platform has onboarded approximately 90,000 online merchants, processing a transaction value of '27,000 crore, and is witnessing a strong growth, reflecting rapid scale-up and increasing merchant preference.

Way Forward: Aligned with the Bank's strategy, SmartHub Vyapar and SmartGATEWAY will continue to expand merchant base across online and offline ecosystems, deepen product penetration across payments, credit, and banking solutions, build a unified, omni-channel merchant platform, drive higher merchant engagement through analytics-led insights and integrated offerings. These initiatives position both platforms as key growth engines, enabling merchants to scale efficiently while strengthening the Bank's leadership position in the merchant acquiring and commerce ecosystem.

Our Distribution Channel

The virtual channels of the Bank were set up to enhance coverage across customer segments and to ensure a holistic service experience to all customers. This is one of the key engagement channels in the Bank.

Virtual Relationship Banking is an integrated customer centric approach covering - Virtual Relationship and Virtual Care serving as a crucial component of the Bank's sales and customer engagement strategy. This approach harnesses technology to connect with customers, build relationships and promote banking products and services. This helps the Bank to expand the managed customer base, generate leads and drive revenue growth.

Recognising employees and customers as the capitals for this business, your Bank has invested heavily in training and development of its relationship managers. Training covers product knowledge, sales techniques, communication skills, compliance and regulatory requirements and customer relationship management skills.

As a part of this strategy, Relationship Managers reach out to customers through telephone and digital platforms resulting in deeper and cost-effective engagement. As digital literacy and exposure increases exponentially, VRMs are gaining wider acceptance through deeper engagement and relationships backed by a strong product offering thereby constituting an important component of the Bank's customer engagement strategy.

This channel is a highly effective tool for the Bank to drive revenue growth, expand its customer base and provide excellent customer service.

Retail Banking - Mortgage Business

Your Bank has one of the largest mortgage loan portfolios in the country.

The merger of India's largest Housing Finance Company, HDFC Ltd. with the largest private sector bank in India combines the strength of a trusted home loan brand with HDFC Bank's extensive branch network and ability to leverage technology platforms.Home loans opened a fresh pathway for the Bank's future growth. Offering the home loan product to the Bank's large customer base, enhanced its ability to tap into the opportunities for cross sell due to a longer tenure engagement. The retail mortgage advances grew by 6.34 per cent to '8,88,670.07 crore compared to '8,35,656.46 crore in the previous financial year.

Third Party Products

Your Bank distributes Life, General and Health Insurance as well as Mutual Funds (Third Party Products) to its customers. In the Financial Year 2025-26, the income from this business accounted for 23.30 per cent of Bank's Total Fee Income.

Life Insurance

With a focus on offering customers a comprehensive array of options, your Bank continues to adopt an open architecture model for distributing insurance products from its three trusted partners. For the year ended March 31, 2026, the Bank mobilised premium of '12,839 crore representing a year-on-year growth of 24 per cent. The Bank's extensive distribution network includes branches, virtual channels, NRI services and wealth management. The focus will continue to be on staff training, robust quality and control processes uniformly implemented across all partners as well as offering integrated and seamless digital on-boarding journeys. Currently, HDFC Bank's NetBanking platform offers 162 insurance products across all partners accounting for over 45 per cent of the total policies.

Non-Life Insurance

Your Bank continues its collaboration with four general insurance and two standalone health and insurance partners. The Bank has innovative non-life insurance products which are accessible through both digital and physical platforms. This allows the Bank to expand the range of offerings and provide a comprehensive coverage to customers. Employees across channels are trained on regular basis in the new products and processes. To meet customer demands, additional manpower are deployed across non-life insurers. As on March 31, 2026, premium mobilisation in General and Health Insurance reached a total of ' 5,503 crore representing a growth of 26 per cent over the previous year.

Mutual Funds

Your Bank's Assets Under Management (AUM) stood at '1,67,992 crore for the year ended March 31, 2026 representing a growth of 7 per cent. Your Bank continues to follow an open architecture approach in distribution of Mutual Funds and is currently associated with 39 Asset Management Companies (AMCs).

The Bank offers digital on-boarding platform to the customers for Mutual Fund investments through Investment Services Account (ISA) and SmartWealth (app based).

During the same period, HDFC Bank witnessed a significant growth of 18 per cent in Systematic Investment Plans (SIPs) mobilisation.

Wealth Management

During the Financial year 2025-26, Your Bank continued to expand its services to its clients ranging from Ultra-HNW to Mass Affluent client segments.

Your Bank has continuously worked to generate as well as quantify the alpha delivered in each client's portfolio. In FY 2025-26, 73 per cent of the clients generated a positive alpha with the median client alpha at 0.9 per cent. Your Bank's aim is to incorporate alpha in all client reports and portfolio reviews.

HDFC Bank has the largest wealth force in the country comprising over 1,000 team members, including 150 service staff and more than 100 investment analysts. This force is provided extensive training on both soft and technical skills. The Bank continued to collaborate with top-ranked business schools such as Indian Institute of Management at Ahmedabad and Bangalore for on campus as well as online courses.

Your Bank's wealth offering is built on the foundation of delivering exceptional customer service. In a competitive and fast-evolving financial landscape, the Bank has consistently reimagined service delivery to align with the clients' expectations of speed, personalisation, and convenience. This relentless commitment is reflected in its industry-leading Net Promoter Score (NPS) of 92, proof of the trust and satisfaction that the Bank has built with its clients.

Last year your Bank conducted over 100 investor education initiatives across the country with fund managers as guest speakers. These programmes reached thousands of investors across metros and emerging cities, offering deep insights into market trends, asset allocation, and long-term wealth creation which helped the Bank to onboard new Wealth clients. To cater to its growing client base, over the past year, HDFC Bank has significantly broadened its product basket to 31 from 23, across various categories such as Long Only, Long Short, PE/VC, Private Credit and Commercial Real Estate.

In FY 2025-26, the Bank consolidated all sales processes into one CRM - RMPro. With this launch, the Bank provides its Relationship Managers (RMs) with a 360-degree service platform in an intuitive mobile first application with holistic client relationship view and single platform for sales processes leading to higher green time and productivity. With digitalisation of processes, consolidation of tools and smarter insights and automation, managing client relationships has become smarter, faster and simpler for RMs.

Your Bank has worked on enhancing its digital investment platform - SmartWealth that enables its clients to track their portfolios and make investments along with access to goal-based investment recommendations. With highly intuitive client experience and gamification of client journeys, this mobile first platform aims to provide access to research to all mass affluent clients. It has more than 15 lakh downloads and over 8.5 lakh clients onboarded on SmartWealth.

In Global Private Banking Innovation Awards 2025, HDFC Bank was awarded ‘Best Domestic Private Bank- India', ‘Best Private Bank for Insurance' and ‘Best Wealth Management for $100K-$250K AUM'. In the Global Private Banking Awards 2025 organised by Professional Wealth Management (PWM), published by the Financial Times, HDFC Bank was adjudged the ‘Best Private Bank for Customer Service - Asia' and was highly commended as ‘Best Private Bank - India'. HDFC Bank was adjudged as ‘India's Safest Private Bank' and ‘India's Best for Premier Banking' in the Euromoney Private Banking Awards 2026.

Your Bank has built a distinctive position in the private banking landscape by combining personalised client service, continuous innovation, and a deep understanding of the evolving needs of affluent and high-net- worth individuals.

Wholesale Banking

Wholesale Banking at HDFC Bank is structured into specialised verticals catering to large corporates, prominent business houses, multinational corporations, public-sector undertakings, financial institutions and emerging corporates. Each vertical has specialised personnel with expertise in their respective fields that brings about improved traction while dealing with the corporate customers. Models of engagement in each vertical differ and have structured offerings that address specific needs of these customers. Additionally, the supply chain layer services channel partners of each vertical.

Product offerings to corporate customers include credit requirements - working capital and term financing, transaction banking and liquidity management - collections and payment solutions, international and domestic trade - fund and non-fund products, treasury and risk management tools, advisory services - equity, debt and merger and acquisitions, supply chain finance - channel partners, employee centric solutions - salary empanelment and key official relationship management and shareholder value creation - dividend distribution.

Your Bank's Wholesale Banking business including small & mid-market book size stood at '14,42,397 crore as of March 31,2026.

The year under review saw headwinds in the global economy due to tariffs, trade sanctions and geopolitical conflicts. This exposed corporates to supply chain challenges and fluctuation in raw material prices leading to them becoming cautious at this point. Despite this, your Bank continued its growth trajectory by outpacing the industry's cred it growth in this segment . Th is was ach ieved without compromising on portfolio quality and through a focused approach of increasing wallet share in existing customers as well as through significant contribution from new-to-bank customers.

The wholesale banking business continued its engagement with financial institutions to build a best-in-class NBFC portfolio. This has resulted in better yields as well as the largest market share in liabilities by value and cross-sell by volumes in the segment. The wholesale bank is the largest contributor of small and marginal farmer assets to the Bank through on-lending transactions done with financial institutional partners.

The Emerging Corporates Group which focuses on the mid-market corporate segment , leveraged its vast geographical footprint of over 90 physical locations and about 300 locations through a hub and spoke model to bring a wide range of offerings to a large cross-section of customers. Together with a strong technology backbone, automated processes, suite of financial products and quick turnaround time, your Bank has created a competitive edge in the marketplace. The business continues to have a diversified portfolio in terms of both industry and geography.

In the year under review, your Bank continued its focus on the MSME sector and continued to be one of the largest lending institutions to this segment. Formalisation and digitalisation of the MSME sector continued to gather pace driven by the implementation of the Goods and Service Tax (GST). This has offered a larger opportunity for lending to this sector. Your Bank has capitalised on the opportunity and is geared for healthy growth. HDFC Bank has emerged as a leading Bank in multiple states and union territories in MSME sector contribution. This has been achieved by leveraging its wide distribution network of branches and offering full-fledged financial solutions through a wide suite of products and services.

Apart from the traditional NetBanking, MSME customers also have access through Enet services and SME Portal.

They are offered comprehensive financial solutions like easy loans, online transactions, trade services, comprehensive view of credit facilities, paperless transactions and digital solutions. MSME customers are thus conveniently able to access a suite of product and services tailored to meet their business requirements.

During the year, your Bank increased its focus on providing construction finance to residential, commercial sector, as well as offered loans against property and lease rental discounting to leading developers in the country. The Bank increased its market share in existing relationships and added new customers. Your Bank plans to increase its geographical presence in the coming year to cater to new customers in key growth markets. It focuses on providing a gamut of banking services and customised solutions. Over the past 18 months, there has been a substantial reduction in non-bank compliant loan book. This coupled with efforts on recoveries of stressed loans has resulted in release of significant provisions.

The Investment Banking business delivered a strong performance in the Financial Year 2025-26, further strengthening its position across Debt Capital Markets, Project Finance, INR Loan Syndication and Equity Capital Markets. Your Bank ranked among the top three in the Bloomberg rankings of Rupee Bond Book Runners for the Financial Year 2025-26 with a market share of about 10 per cent. Your Bank is also a leading Project Finance underwriter across sectors and is amongst the top four in the Bloomberg ranking of Syndicated INR term loans for FY 2025-26. It provided advisory services and end- to-end execution support to clients in raising equity capital aggregating to '36,608 crore, through Initial Public Offerings (IPOs) and institutional placements. Your Bank advised a foreign healthcare company on an open offer for the acquisition of a stake in a listed Indian healthcare group. In addition, HDFC Bank also acted as a sell side advisor to a client in an M&A transaction.

I n the Government Business, your Bank sustained its focus on tax collections, collecting direct tax (CBDT) of '6,38,302.56 crore and Indirect tax - CBIC (Custom duty + GST) of over '6,09,428.66 crore crore during Financial Year 2025-26. It continues to enjoy a pre-eminent position among the country's major stock and commodity exchanges in both Cash Management Services and Cash Settlement Services.

Your Bank's journey on strategic digital transformation to enhance customer engagement and employee experience and create an ecosystem for seamless banking is well underway.

It continues to leverage analytics which enable it to delve deeper into corporate ecosystems. This leads to better product structuring, cross sell opportunities, improved yields and thus improves the Bank's share of Revenue Pools from Corporates.

HDFC Bank provides a comprehensive suite of cutting- edge platforms tailored to meet the diverse needs of corporate clients. The key one is the Corporate E-Net Banking platform. It offers the time tested e-Net service as well as the CBX platform. These platforms provide intuitive interfaces and robust functionalities empowering businesses with seamless control over their financial operations. The Trade Platform - Trade on Net (TON) serves as a cornerstone for facilitating efficient trade transactions. Further, the Supply Chain Finance (SCF) transaction platform enables digital contract bookings and automated disbursements, streamlining end-to-end SCF transactions for the corporates. HDFC Bank has integrated with all the three TReDS platforms. Further it is collaborating with Fintechs to integrate with Corporate ERP and offer Embedded Banking in Corporate Ecosystem journeys.

Treasury

The Treasury Department is the custodian of your Bank's cash / liquid assets and handles its investments in securities, foreign exchange and cash instruments. It manages the liquidity and interest rate risks on the balance sheet and is also responsible for meeting reserve requirements. The vertical also helps manage the hedging needs of customers and earns a fee income generated from transactions customers undertake with your Bank while managing their foreign exchange and interest rate risks.

Revenue accrues from spreads on customer transactions based on trade and remittance flows and demonstrated hedging needs. Your Bank recorded a revenue of '6,459.99 crore from foreign exchange and derivative transactions in the year under review.

As a part of its prudent risk management, your Bank enters into foreign exchange and derivatives deals with counterparties after it has set up appropriate credit limits based on its evaluation of the ability of the counterparty to meet its obligations. Where your Bank enters into foreign currency derivatives contracts not involving the Indian Rupee with its customers, it typically lays them off in the inter-bank market on a matched basis. Your Bank also deals in derivatives on its own account including for the purpose of its own balance sheet risk management.

HDFC Bank is also a nominated agent for the bullion imports and has a significant market share in that business.

Your Bank maintains a portfolio of Government securities in line with the regulatory norms governing the Statutory Liquidity Ratio (SLR). A significant portion of these SLR securities is in ‘Held-to-Maturity' (HTM) category, while some are ‘Available for Sale' (AFS). The Bank is also a primary dealer for Government Securities. As a part of this business, your Bank holds fixed income securities as ‘Held for Trading' (HFT).

In the year under review, your Bank continued to be a significant participant in the domestic foreign exchange and interest rate markets. Accordingly, the Bank benefited from falling bond yields and continues to tap opportunities arising out of the liberalisation in the foreign exchange and interest rate markets.

B. International Business

Your Bank's international operations comprise five branches, located in Hong Kong, Bahrain, Dubai International Financial Centre (DIFC), Singapore and an IFSC Banking Unit in Gujarat International Finance Tec- City. Additionally, it has four representative offices in Nairobi (Kenya), Abu Dhabi, Dubai and London catering to Non-Resident Indians and Persons of Indian Origin.

As a part of the Bank's customer centric strategy, it has products to cater to client needs across asset classes. The GIFT City branch offers a host of products like trade credits and foreign currency term loans (including external commercial borrowings). Your Bank is aiming to leverage the growth in the financial centres and is expanding its basket of offerings to meet the demands of both resident and non-resident clients.

As on March 31, 2026, the Balance Sheet size of International Business was US $ 9.13 billion. Advances constituted 1.57 per cent of the Bank's advances. The Total Income contributed by overseas branches constituted 1.29 per cent of the Bank's Total Income for the year.

C. Government, Institutions and New Economy Businesses

Your Bank continues to grow the Government, Institution and New Economy Businesses which are the fulcrum of the larger liabilities business. Some of the key highlights and new initiatives include:

1. HDFC Bank is a trusted partner in ensuring government initiatives benefit the last mile, by leveraging digital solutions to directly transfer welfare benefits under Government schemes such as the direct transfer of welfare benefits under the Mukhyamantri Mahila Rozgar Yojana in Bihar.

2. Your Bank has partnered with the state governments of Assam, Haryana, Odisha and Chhattisgarh for executing 10 new welfare scheme mandates such as Mukhyamantri Public Health Transformation Fund, Chhattisgarh, which has benefitted almost 1.5 crore beneficiaries.

3. In addition, the Bank received the health sector grant for rural local bodies in Uttar Pradesh which will aid in conversion of rural sub-centres/ primary healthcare centres, to health and wellness centres; supporting diagnostic infrastructure and creating block-level public health units.

4. Under the Government's digitalisation drive, your Bank is helping Urban Local Bodies (ULBs) in enhancing their own source revenues through digital solutions. Over 150 ULBs were onboarded by the Bank on digital solutions.

5. Your Bank has also processed tens of thousands of crores of horizontal flows of the Fifteenth Finance Commission in FY 2025-26.

6. Your Bank continues to be an enabler for pensioners, implementing the following measures:

a. Enhanced pension product for defence pensioners, with personal accidental death coverage of '1 crore till the age of 80.

b. In FY 2025-26, the Bank ensured that 99 per cent of pensioners (our customers) successfully submitted their digital life certificates in the Pension Processing System of the Bank through a hassle-free experience.

c. Provided doorstep collection services for old, sick and incapacitated pensioners, as well as those who are differently abled or visually impaired.

7. Your Bank continues to rank among the leading Government Agency Banks for collecting Central Government taxes. Substantial market share of 17.8 per cent, was acquired in GST collections as per tax collection data reported through the GST portal. The Bank has now started collecting taxes from Himachal Pradesh along with existing collections from 10 other states/ UTs.

8. Your Bank facilitated the transfer of funds flowing from the Central Government to various beneficiaries under the aegis of the Centrally Sponsored Schemes and Central Sector Schemes. The total flows processed grew by 7 per cent year on year.

9. Your Bank continues its initiatives on digitalisation of financial operations of government entities, like online transfer of compensation against land acquisition, online collection of local body taxes and managing financial assistance to specific sections of society.

10. Your Bank is now a digital banking solution provider for green energy projects wherein it has partnered with a state energy development agency.

11. Your Bank is now integrated with treasury systems across six states to enable beneficiary account validation, payments, transaction and balance reporting.

12. Your Bank has also driven digitalisation at district level by facilitating last mile beneficiary payments through digital solutions.

13. Your Bank continues to increase its institutional footprint across the country.

a. It has successfully on-boarded approximately 48 per cent of universities nationwide. Some of the marquee additions during the year are Guru Gobind Singh Indraprastha University, New Delhi and Alagappa University, Tamil Nadu.

b. Notable religious organisations whose business were acquired this financial year include the Diocese of Thanjavur, Jamia Masjid, and Shree Ekvira Devasthan Trust, amongst others.

14. Your Bank has received positive customer feedback for its recent digital products and solutions:

a. Won a Silver in the category ‘Best Digital Enterprise Product and Services' for CollectNow at the 16^th India Digital Awards organised by the Internet And Mobile Association of India (IAMAI). CollectNow is a collections solution that brings together over 15 online and offline collection modes - all on a single platform, with single settlement of online modes and real time validations, co-created in partnership with fintechs, for government and institutional customers

b. FARSight enables customers to enhance financial planning and unlock efficiencies through proactive and pre-emptive intelligence. Powered by NextGen AI, the platform has become the preferred digital dashboard for more than 4,500 government and institutional customers by delivering segment-focussed, data-driven insights that support advanced financial planning, strategic decision-making, and improved operational effectiveness.

c. Your Bank offers GIGA-a banking programme tailored specifically for the gig economy, as defined by India's recent Labour Codes 2025. GIGA by HDFC Bank addresses an underserved demographic, by understanding the unique challenges faced by them such as irregular income, lack of financial security and limited access to traditional banking services. GIGA aims to create a financial ecosystem for the gig economy by closely working with relevant stakeholders. The programme is a suite of customised products made to suit the profiles of these incumbents across liability, assets, payments, insurance, and investments.

d. Your Bank is committed to enabling smooth cross-border transactions for domestic merchants, freelancers, MSMEs, and exporters. We are the preferred banking partner providing AD-1 services to cross-border fintechs- both new and emerging, to enable secure and hassle free cross-border trade settlements.

15. Start-up Banking: Your Bank provides a complete range of banking products specially curated for the start-up ecosystem. In furtherance of its objective to support the banking and financial needs of start-ups, it launched ‘Start-up Lounges' - exclusive spaces for start-ups to work and ideate.

A. Moreover, your Bank signed MoUs with prominent start-up ecosystem partners. They include government nodal agencies and incubators located at educational institutions. Some of the partners are TiE India Foundation, Start-Up Tamil Nadu, and Plug and Play at GIFT City among others.

B. HDFC Tech Innovators 2025: Your Bank along with HDFC Capital Advisors and HDFC Asset Management Com pany spearheaded HDFC Tech Innovators 2025, with support from other group companies such as - HDFC Ergo, HDB Financial Services, HDFC Life, and HDFC Securities to promote innovations and opportunities for technology related start-up ventures. Over 1600 applications were received across six categories - Fintech, Proptech, Sustainability Tech, Consumer Tech, Defence and Spacetech and New Age Tech. The top 10 winners, including two emerging women founders were selected by a grand jury comprising HDFC Bank Group leadership, venture capitalists, senior industry executives and unicorn founders. The shortlisted startups are evaluated for potential investment and business opportunities through the proof-of-concept route with the Bank and/or group companies.

C. Parivartan Start-Up grants: Your Bank supported nine incubators associated with reputed academic institutions and 67 start-ups through the ninth edition of the Parivartan StartUp Grants. This year, your Bank collaborated with Startup India to advance the development of the social impact startup ecosystem in India. The Bank further engaged with Startup Punjab, a Government of Punjab initiative, to enable and scale startup ecosystem development in the state.

D. Capacity Building Initiatives: The Bank also supported a capacity building initiative, with over 100 incubation centre managers benefiting through regional Manager Development Programmes (MDP) conducted across Guwahati, Mumbai, Bengaluru and Delhi.

Semi-Urban and Rural

Your Bank has a strong focus on the Semi-Urban and Rural (SURU) markets, recognising these segments as key growth drivers. The Bank's commitment to these markets has only strengthened over the years due to increasing rural incomes and aspirations. This has seen a rise in the demand for quality financial products / services and further reinforced the Bank's commitment to these markets. Through various business groups and a well-defined strategy, your Bank continues to deepen its presence across Semi-Urban and Rural geographies with about 50 per cent of branches in these locations.

Apart from meeting the statutory obligations under Priority Sector Lending (PSL), including support for agriculture and allied activities, small and marginal farmers, and weaker sections, your Bank offers a comprehensive suite of financial products customised for these markets. These include Auto Loans, Two-Wheeler Loans, Personal Loans, Gold Loans, Light Commercial Vehicle (LCV) financing and Small Shopkeeper Loans, amongst others.

In the year under review, your Bank's rural footprint crossed the 2.5 lakh village milestone, covering more than 2.52 lakh villages. The Bank is focused not only on widening its reach but also on deepening relationships. This growth strategy is being backed by the Bank's robust digital capabilities, which are helping deliver seamless, accessible and customer-centric banking solutions.

Your Bank's operations in Semi-Urban and Rural locations are explained below:

Agriculture and Allied Activities

Your Bank's assets in Agriculture and Allied activities (PSL + Non PSL) stood at '3,68,951.49 crore as on March 31, 2026.

The Bank has succeeded in this segment due to its diverse product range and a quick turnaround time aided by strong distribution strength and innovative digital solutions.

HDFC Bank's extensive product portfolio encompasses pre and post-harvest Crop Loans, Farm Development / Investment Loans, Two-Wheeler Loans, Auto Loans, Tractor Loans, Small Agri Business Loans, Loan Against Gold, Loan to landless labourers and more. This comprehensive offering has enabled the Bank to establish a robust presence in rural areas with its asset products. Additionally, it has been a prominent participant in the Agri Infrastructure Fund Scheme consistently achieving Government targets.

HDFC Bank is increasingly involved in facilitating various Government / Regulatory Schemes to other Non-crop Segments, including Agri-allied and Small Agri-Business Enterprises, as well as Rural MSMEs. A unique business model encompassing a wide variety of products and services driven by a relationship management approach ensures suitable solutions as well as financial literacy to farmers. The Bank has tailored a range of crop and geography-specific products to align with harvest cycles and address the specific needs of farmers across diverse agro-climatic zones. This customer-centric approach has transformed rural banking services, enabling delivery of personalised offerings to meet the evolving needs of customers in these markets effectively.

Products such as post-harvest cash credit and warehouse receipt financing facilitate faster cash flows to farmers, while credit is also extended for Allied Agricultural Activities such as Dairy, Pisciculture, and Sericulture. Moreover, HDFC Bank's targeted branch expansion in SURU regions coupled with digital interventions aims to create a superior customer experience and position it as a future- ready institution.

Participation in Government Schemes

The Government of India has announced a host of schemes / enablers especially in the agriculture sector as a part of Atmanirbhar Bharat Abhiyaan. Your Bank is implementing virtually all such initiatives / schemes aimed at multiple stakeholders in the Agri ecosystem.

Agriculture Infrastructure Fund (AIF) Scheme

Through this scheme, the Bank is offering medium to longterm debt for investment in viable projects pertaining to post-harvest management and infrastructure development like construction of warehouses/silos. As of March 31, 2026, under the AIF scheme, your Bank has sanctioned 10,947 proposals amounting to '7,814 crore out of which 9,732 proposals have been disbursed with a total value of '6,284 crore

Key achievements under the scheme:

• The Bank was ranked in the 4^th position with 10 per cent market share in total amount sanctioned under AIF.

• The Bank crossed 10,900 project approvals under AIF scheme.

• HDFC Bank has been felicitated with two prestigious awards by the Ministry of Agriculture and Farmers Welfare (MoA&FW), recognising it for outstanding contribution during the regional conference held at Chandigarh.

Pradhan Mantri Formalisation of Food and Micro Enterprises (PMFME)

Your Bank is actively participating in the implementtion of the scheme and is passing the benefits to eligible borrowers in the food processing sector. Since inception, your Bank has achieved a milestone by funding nearly 10,139 individual projects, sanctioning '1,892 crore. Out of these, there have been disbursements to 9,434 projects amounting to '1,713 crore.

In the year under review, loans worth '213 crore were sanctioned for 765 projects and '232 crore has been disbursed for 811 projects.

Other Agri schemes, where your Bank has significantly contributed include Agri Marketing Infrastructure Fund (AMIF), Animal Husbandry Infrastructure Fund (AHIDF), Credit Guarantee Fund for Micro Units, National Livestock Mission (NLM) as well as state-specific Government schemes.

In order to address high volume and low-value ticket loans in Agri-Business, your Bank plans to onboard AgriTech- BCs with differentiated business models through a digital optimisation strategy. These BCs will help source and service small and marginal farmers.

Funding Small and Marginal Farmers (SMFs)

Lending to the agriculture sector, including to small and marginal farmers, is not just a way of adhering to the regulatory mandate of meeting priority sector lending requirements, but also an opportunity. The Bank has leveraged its extensive knowledge of rural customers to create as well as deliver products and services at affordable price points with a quick turnaround time. This has enabled HDFC Bank to establish a strong footprint in the rural geographies which it has now leveraged to increase liability products penetration.

The Bank has reached over 2.52 lakh villages in the Financial Year 2025-26, through a multitude of interventions. Your Bank plans to deepen market penetration in these villages by broadening its lending portfolio through various products.

HDFC Bank has financed and supported over 32 lakh Small and Marginal Farmers. This was achieved through consistent strategy of engaging with them through customised agriculture loans. It has leveraged the Government schemes and offered various secured / unsecured lending products including Loan Against Gold, targeting small as well as marginal farmers in Agri and Allied segments.

Farmer Producer Organisations (FPOs)

For agriculture productivity and incomes to grow, aggregation of farm holdings in the form of FPOs is the key strategy to double farmers' income. Leveraging the Government scheme for formation and promotion of 10,000 new FPOs (Credit guarantee is available from

NABARD / CGTMSE), your Bank has funded eligible FPOs for working capital and term loan requirements. As of March 31, 2026, your Bank sanctioned loans worth '182 crore and disbursed '161 crore to 298 FPOs.

Gold Loans

Your Bank is steadily implementing its action plan of making gold loans available in a majority of its branches and thus extending this product to otherwise untapped customer segments.

As on March 31, 2026, the Bank is offering gold loans through 4,938 branches, with 48 per cent of these branches in Semi-Urban and Rural location. HDFC Bank ended the year with a Gold Loan portfolio of ' 23,820 crore registering a growth of 34 per cent over the previous year.

Social Initiatives in Farm Sector

The farm sector faces threats arising out of climate change as evident from the growing number of extreme weather events. In addition, factors like soil health, input quality (seeds and fertilisers), water availability and Government policy have significant impact, along with price realisations and storage facilities. All this has an impact on farm yield and income.

Given the vulnerabilities, it is critical to strengthen climate resilience and adaptability of the agri-food sector. In this context, your Bank has launched a variety of initiatives such as Holistic Rural Development Programme (HRDP), Crop Residue Management Project amongst others. Within regulatory guidelines, your Bank has also been providing relief to impacted farmers. It also has put in place systems designed to enable Direct Benefit Transfers in a time- bound manner.

Lending to the agriculture sector, including to small and marginal farmers, is a regulatory mandate as part of priority sector lending requirements. The Bank has leveraged its extensive knowledge of rural customers to create as well as deliver products and services at affordable price points and with a quick turnaround time. This has enabled it to establish a strong footprint in the rural geographies which has now been leveraged to increase penetration of liability products. Further, your Bank has been working with a segment-specific approach like funding to horticulture clusters, supply chain finance, agri business, MSMEs and dairy farmers. It also continues to engage closely with farmers to mitigate risks and protect portfolio quality.

Micro, Small and Medium Enterprises (MSME)

The Micro, Small, and Medium Enterprises (MSMEs) sector is an important engine for economic growth. It accounts for about 31 per cent of GDP in the country, approximately 35 per cent of manufacturing, and about 48 per cent of exports. The MSME sector employs approximately 32.82 lakh people and is the second largest employer after agriculture.

As on March 31, 2026, your Bank's assets in the MSME segment stood at '6,82,635.37 crore. The Micro Enterprises assets alone stood at '2,36,906.05 crore.

The Union Government and the Reserve Bank of India (RBI) have been providing support for lending to MSME segment on a continuous basis. This support was manifest during the pandemic and continued further through a revamped CGTMSE scheme with higher guarantee limits and lower guarantee fees.

Many other schemes like Credit Guarantee to Start Ups (CGSS), eNWR guarantee scheme too have been subsequently rolled out. Recently the Government of India has introduced the Emergency Credit Line Guarantee Scheme (ECLGS 5.0) from May 8, 2026 to support businesses including MSMEs in the wake of the situation in West Asia.

Your Bank has again emerged as one of the leading contributors to CGTMSE in the Financial Year 2025-26 by supporting the MSME sector with guarantee-covered credit facilities. This has further supported the growth of MSME loans which registered a year on year growth of 62.16 per cent.

Transparency has improved in the MSME sector due to the pace of digitalisation. This coupled with the adoption of GST and reforms in return filing has made it easier to access customer cash flow and financial data. This in turn has led to speedier credit decisioning and disbursement. Customers can now apply online and submit required documents digitally and they can also execute postsanction agreements digitally to avail of facilities quickly with straight-through disbursement.

Your Bank's SME portal continues to offer one view of sanctioned, released and utilised limits. The portal continues to offer Request for ad hoc approvals, enhancements, facility release and Temporary Overdrafts (TODs) on a simplified and faster basis to existing customers. They can request a top-up of loans and submit the required documents online. The SME portal also allows customers to access your Bank's services related to sanctioned credit facilities 24x7 from anywhere. Customers can download various certificates and statements as needed on an ongoing basis.

On the trade side, your Bank has continued to focus on customer engagement resulting in increased penetration of Trade on Net applications. Trade on Net is a complete enterprise trade solution for customers engaged in domestic and foreign trade. It enables them to initiate and track requests online seamlessly, reducing time and costs.

Financial Inclusion and Financial Literacy to educate and empower the under-banked

The core purpose of financial inclusion is to ensure seamless delivery of financial services such as opening of savings accounts, extending credit for productive, personal and other purposes, and inculcating the savings habit. It also includes offering value added services such as microinsurance, pension products amongst others through its wide network of branches and business correspondents. These coupled with enhanced digital offerings such as BHIM, UPI, voluntary consent-based Aadhaar biometric authentication (face and fingerprint), Aadhaar and RuPay- enabled Micro-ATM ensures pan-India coverage.

Your Bank strives to extend its banking services into deeper geographies to educate, empower and enable citizens to be a part of the formal financial system. The Bank believes that financial literacy is an important tool for promoting financial inclusion and has adopted an integrated approach, wherein its efforts towards financial inclusion and financial literacy go hand in hand.

Through Financial literacy and education, the Bank disseminates information on the general banking concepts to diverse target groups, including students, women, rural and urban poor, pensioners and senior citizens to enable them to make informed financial decisions and making people understand the benefits of linking with the banking system.

Your Bank has been actively committed to offering a multitude of Government schemes across diverse geographies. Below are key highlights:

• Pradhan Mantri Jan Dhan Yojana (PMJDY) and Social Security Schemes (Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY)): To enhance financial inclusion coverage.

Support: Opened 58.8 lakh PMJDY accounts and enrolled 1.28 crore customers in Social Security Schemes (PMJJBY, PMSBY and APY) since inception.

• Financial Literacy Camps (FLCs): To educate and empower citizens to understand the benefits of joining the formal financial system.

Support: The Bank has cumulatively covered over 1.92 crore customers through its FLCs. During the Financial Year 2025-26, it has conducted 1.80 lakh FLC camps covering 8.24 lakh participants.

• Pradhan Mantri Mudra Yojana (PMMY): To enable small borrowers to borrow upto '20 lakhs for nonfarm income generating activities.

Support: Since the launch of the scheme, the Bank has extended loans amounting to '1,07,833 crore to 1.41 crore beneficiaries.

• Prime Minister's Employment Generation Programme (PMEGP): A special scheme aimed at generating employment opportunities in rural and urban areas through establishment of new self-employment ventures, projects and microenterprises.

Support: The Bank has disbursed funding of '486 crore since inception to micro-enterprise units in manufacturing and service sectors.

• Pradhan Mantri Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi): Special scheme under microcredit facility for street vendors providing collateral- free, affordable term loans of '10,000 for one year in the 1^st tranche. (Restructured loan is '15,000 for 1^st tranche effective September 2025).

Support: Your Bank has provided loans to 42,837 street vendors since inception. The Bank has educated and encouraged them to adopt digital transactions through the ‘Main Bhi Digital' campaign. Revised and restructured PM SVANidhi guidelines were released in September 2025. The earlier scheme was discontinued in December 2024. The restructured scheme has been extended until March 2030.

• Aadhaar Seva Kendras (Aadhaar enrolment and updation service): Your Bank provides Aadhaar enrolment and update services at branches that are designated as Aadhaar Seva Kendras.

Support: More than 69.20 lakh enrolments and updates undertaken since inception basis explicit customer requests.

Sustainable Livelihood Initiative

Your Bank's Sustainable Livelihood Initiative (SLI) is a holistic approach that aims to deliver financial support to that section of the population who lack access to formal banking services.

For details click on https://www.hdfc.bank.in/sustainable- livelihood-initiative

E. Environmental Sustainability

Sustainability is one of the core values of the Bank. The details are covered in pages 124 to 151.

1. People

People is one of the core values of the Bank. For details please refer to pages 170 to 193.

2. Leveraging Technology for Growth and Technology Absorption

The Financial Year 2025-26 marked a pivotal step in HDFC Bank's technology and digital journey. The Bank advanced from strengthening foundational platforms to enhancing capability across systems and workflows. GenAI played a central role, supported by disciplined execution, platform led engineering and a clear focus on tangible business outcomes.

Establishing Enterprise-Scale AI Foundations

A structured, enterprise-grade approach was introduced to ensure consistency, governance and reuse. Neev, the Bank's in-house AI platform, provides a unified foundation for model access, security, workflows and data integration. By standardising these layers, Neev enables capabilities to be built once and scaled across the Bank with both speed and control.

Accelerating AI Adoption Across the Bank

With core components in place, AI is improving responsiveness in customer interactions, accelerating credit and trade workflows, strengthening transparency in decisioning and reducing manual effort across teams through our Lighthouse Programmes. They have delivered measurable improvements in accuracy, turnaround time and throughput.

Advancing Digital Platforms and Core Systems:

Core systems continued to be modernised for scale and resilience-supported by simplification efforts across customer segments. Investments in data centre capabilities, cloud alignment and infrastructure enhancements have improved availability, security and performance.

The Bank has made enhancements to its digital ecosystem through upgrades to MobileBanking, NetBanking, the public website and payments infrastructure.

Scaling Delivery Through Distributed Engineering

The Factory Construct remains the engine of high-velocity delivery. Dedicated units in Bengaluru, Mumbai, Gurugram and Guwahati strengthened the Bank's capacity to run multiple large programs in parallel while maintaining architectural coherence. The Guwahati Tech and Digital Factory, built in partnership with the Government of Assam and academia, has become a key talent and delivery hubbridging academic learning with real-world execution.

Your Bank continued to invest in deep skills across engineering, data, AI, cybersecurity and cloud. Modern tools and development environments are helping teams reduce manual effort and operate with greater consistency and speed. Partnerships with technology ecosystems, academia and fintechs complement the Bank's in-house engineering strengths.

Preparing for the Next Wave of Innovation

Your Bank has laid the groundwork to take a leading role in an industry undergoing rapid transformation. With core platforms in place, early use cases validated, and capabilities being embedded across systems, the Bank is well positioned to shape the next phase of technology led banking. The focus now shifts to deeper integration, wider adoption and greater reuse.

Your Bank is also exploring emerging technologies to understand how they may support future innovation and long-term scalability.

Your Bank remains anchored in governance, trust and responsible innovation. FY 2025-26 sets the stage for the next phase of transformation-where modern architectures powered by GenAI, scale and disciplined execution combine to build a more resilient, adaptive and future-ready HDFC Bank.

Cybersecurity

Strengthening Cybersecurity is an important focus area for the Bank in its technology transformation agenda. In view of the evolving threat landscape marked by AI driven attacks, changing regulatory expectations, and the expansion of complex digital ecosystems, the Bank is advancing its security strategy to support enterprise-wide resilience, continuous monitoring, and sound governance. HDFC Bank is also investing in next generation technologies, Artificial Intelligence (AI), risk aware processes, and industry collaboration to align with the growing need for predictive, intelligence driven, and integrated cyber defence models.

A few of the key initiatives include:

1. Next-Generation Cyber Security Operations Centre (CSOC) and AI-Driven Defence: To enhance predictive security and incident readiness, your Bank has strengthened its Cybersecurity Operations Centre (CSOC) with capabilities such as Security Orchestration, Automation and Response (SOAR) and network micro segmentation to improve visibility, limit lateral movement, and support faster containment. In line with the Bank's Cyber Security Strategy, the AI/Machine Learning (ML) enabled SOC, where automation supports threat detection, enrichment, classification, and triage, is moving the Bank towards a semi-autonomous SOC model. AI/ML integration also includes advanced anomaly detection, centralised event correlation through Security Information and Event Management (SIEM) systems, and comprehensive Indicators of Compromise (IOC) ingestion to strengthen threat visibility, contextual analysis, and rapid incident response.

Recognising the evolving nature of AI driven threats, your Bank is expanding the use of AI and M L across its security ecosystem. The AI enabled SIEM, combined with User and Entity Behavioural Analytics (UEBA), supports threat detection, anomaly identification, and real time threat modelling. The Bank has also undertaken initiatives to safeguard AI models, datasets, and agentic systems from emerging adversarial techniques.

2. Attack Surface Reduction and Continuous Monitoring: To minimise the surface area for attacks, the Bank continues 24x7 defacement monitoring, patch and vulnerability management, malware defence, and continuous penetration testing. A dedicated Attack Surface Management (ASM) program ensures ongoing discovery, monitoring, and evaluation of external facing assets, enabling timely remediation of potential weaknesses.

3. Zero Trust and Endpoint Security: Your Bank has adopted a Zero Trust architecture, reinforcing identity centric governance across systems. Enterprise-wide Anti Advanced Persistent Threat (Anti APT) agents protect endpoints, network elements, and email / web channels from zero day and other sophisticated attacks. The Bank has also deployed Extended Detection and Response (XDR) capabilities that use ML driven behavioural analytics to detect ransomware and malware across endpoints and servers. Hard disk encryption protects sensitive data stored on laptops thereby reducing the risk of data exposure from endpoint compromise.

4. Data Security and Cloud Protection: With the growing adoption of cloud infrastructure, your Bank has strengthened its security posture by deploying Cloud Security Posture Management (CSPM) and Cloud Access Security Broker (CASB) solutions to proactively detect configuration issues, enforce compliance requirements, and mitigate cloud related risks. Cloud and data governance have been further enhanced through the implementation of Cloud Identity and Entitlement Management (CIEM) and Cloud Workload Protection Platform (CWPP), for sensitive data across both cloud and on premises environments. In addition, the Bank has reinforced its data protection framework through a comprehensive Data Loss Prevention (DLP) and Digital Rights Management (DRM) security technologies, endpoint encryption controls, and Domain-based Message Authentication, Reporting, and Conformance (DMARC) based email authentication to safeguard information assets and prevent unauthorised data exposure.

5. Vulnerability Management and AI Enabled Testing: Your Bank continues to operate structured programmes for vulnerability assessment, penetration testing, and red team exercises. HDFC Bank has adopted the AI for Security and Security for AI themes for all programmes and is actively working with security tool providers for incorporating near machine speed capabilities in the tools used for vulnerability management.

6. Cyber Resilience and Post Quantum Cryptography (PQC): The comprehensive Cyber Crisis Management Plan (CCMP) of the Bank strengthens its cyber resilience by addressing a wide range of potential attack scenarios and is being updated to incorporate AI accelerated and deepfake enabled threats. The Bank is strengthening its resilience posture through development of Cyber Resilient arch itecture, near zero Recovery Point Objective (RPO) strategies for critical infrastructure, and quantum safe (PQC) security initiatives to prepare cryptography, applications, and data for quantum related risks. Bot protection, Distributed Denial-of-Service (DDoS) resilience, and real time behavioural analysis further enhance perimeter and application layer defences.

7. Red Teaming: The Red Team of the Bank performs periodic adversarial assessments to evaluate the security of critical cyber assets and identify weaknesses that could be exploited by threat actors. As part of its responsibilities, the team conducts controlled red team exercises, breach and attack simulations, targeted assessments of key technologies such as email gateways, web gateways, Web Application Firewall (WAF), Extended Detection and Response (XDR), data exfiltration pathways, and manual testing aligned to the MITRE ATT&CK framework. These activities help validate the effectiveness of detection and response controls across the Bank's environment.

8. Collaboration, Governance, and Sectoral Intelligence Sharing: Collaboration remains a key pillar of the Bank's security strategy. Your Bank works closely with the Reserve Bank of India (RBI), National Critical Information Infrastructure Protection Centre (NCIIPC), and Indian Computer Emergency Response Team (CERT-In) for intelligence sharing, best practice exchange, and coordinated response efforts.

Conclusion: Your Bank's ongoing investments in cybersecurity supported by a multi-year transformation agenda anchored in Zero Trust, AI native defences, GenAI security, Post-Quantum Cryptography (PQC) readiness, and cloud security modernisation underscore its commitment to safeguarding digital trust, protecting customer interests, and fortifying its technology environment amid rapidly evolving cyber risks.

Your Bank adopts a balanced approach to using AI, leveraging it to strengthen cyber defence capabilities while ensuring that all AI systems themselves comply with required security, governance, and regulatory standards. Together, these initiatives will ensure that the Bank's digital growth is secure by design and future ready.

Service Quality Initiatives and Grievance Redressal

Customer Centricity is a key part of the culture at the Bank. Delivering exceptional customer experience is a prerequisite for enhanced customer loyalty and sustained growth for business. Your Bank strives to achieve this by actively seeking and listen ing to customer feedback through one of the world's leading measurement frameworks on customer experience - the Net Promoter System. The Bank aims to continuously measure, benchmark and improve its customer experience through this system. This involves regular cadence with senior management on key areas of improvement, defined action plans with adoption of best- in-industry practices and follow-up on improvements seen in customer experience.

Your Bank has ensured an enhanced focus on new age customer touch points such as NetBanking, MobileBanking, WhatsApp Banking and ChatBot EVA to ensure that they are designed based on a deep understanding of how customers are engaging with these channels and delivering on the security aspect to ensure a safe banking experience on these channels. Leveraging the latest technology, the Bank has enabled a seamless experience across these, its social care handles and PhoneBanking.

Governance is often the key to ensuring consistency in employee efforts and employee behaviour across a large organisation like your Bank, to deliver a consistently good customer experience and also for systemic improvements across products, channels and platforms. HDFC Bank regularly assesses customer service performance and grievance redressal at various levels, including Branch Level Customer Service Committees, Standing Committee on Customer Service and Customer Service Committee of the Board. Your Bank has implemented robust methods to monitor and measure service quality levels across touchpoints including at product and process levels, through the efforts of the Quality Initiatives Group.

A unique Service Quality Index (SQI) has been developed to enable continuous improvement of initiatives to raise service standards. It measures the performance of key customer facing channels based on critical customer service parameters. The Service Quality team conducts regular reviews across various products, processes, and channels to drive and monitor continuous improvement based on the SQI.

Providing good customer service would be incomplete without an effective internal Grievance Redressal Mechanism/Framework. The Bank has developed a comprehensive Grievance Redressal Policy, Customer Rights Policy, Customer Compensation Policy, duly approved by the Bank's Board which outline a framework for resolving customer grievances. These policies are accessible to customers through the Bank's website.

HDFC Bank is compliant with the RBI Internal Ombudsman Guidelines. At the apex level, as a part of the Internal Grievance Redressal Mechanism, the Bank has appointed seasoned-retired bankers as Internal Ombudsmen to independently review customer grievances, which are partly/wholly rejected by the Bank before the final decision is communicated to the customer.

Your Bank is on a journey to measure customer loyalty through a high velocity, closed loop customer feedback system - Net Promoter System. This programme helps relevant employees to understand customers' concerns, enhance their experience and improve products and processes. ‘Infinite Smiles,' as this programme is known helps drive behaviours, practices that catalyse customercentric changes through continuous improvement in products, services, processes, and policies.

HDFC Bank remains committed to placing the customer at the centre of its operations. By consistently improving customer experience, adopting an omnichannel approach and implementing robust service quality and Grievance Redressal Mechanisms, it aims to build highly engaged and lasting relationships.

Risk Management and Portfolio Quality

Your Bank's historical focus on Pillar 1 risks, including Credit Risk, Market Risk, and Operational Risk, has broadened in response to the dynamic banking landscape. Liquidity Risk, Information Technology Risk, Information Security Risk, Group Risk, Model risk and Reputation Risk among other enterprise-wide risks have also emerged as pivotal considerations. These risks impact your Bank's financial strength, - operations and its reputation. To address these concerns, your Bank has established Board-approved risk policies, meticulously overseen by the Risk Policy and Monitoring Committee (RPMC), a committee of the Board. The RPMC assists the Board in supervising the implementation of the Bank's risk strategy. It provides guidance on the development of policies, procedures and systems for effective risk management, ensuring their continued relevance considering evolving business conditions, organisational needs and the Bank's risk appetite. The Committee also ensures that frameworks are in place to assess and manage key risks, and systems are developed to relate risk to the Bank's capital level. Further, mechanisms are established to monitor compliance with internal risk policies and procedures.

The hallmark of your Bank's risk management function is its independence from the business sourcing unit with convergence occurring only at the CEO level.

The gamut of key risks faced by the Bank which are identified and managed, includes:

> Credit Risk, including residual risks

> Outsourcing Risk

> Market Risk

> People Risk

> Liquidity Risk

> Business Risk

> Operational Risk

> Strategic Risk

> Interest Rate Risk in the Banking Book

> Compliance Risk

> Intraday Liquidity Risk

> Reputation Risk

> Intraday Credit Risk

> Technology Risk (Information Technology and Information Security)

> Credit Concentration Risk

> Third Party Products Risk

> Group Risk (various risks pertaining to subsidiaries)

> Model Risk

Credit Risk

Credit Risk refers to the possibility of losses due to a decline in the credit quality of borrowers or counterparties, stemming from outright default or reduction in portfolio value. Your Bank manages credit risk through comprehensive credit risk architecture, policies, procedures, and systems in both retail and wholesale businesses. Wholesale lending is managed on an individual as well as portfolio basis. In contrast, given the granularity of individual exposures, retail lending is managed largely on a portfolio basis across various products and customer segments. Robust front-end and back-end systems ensure credit quality and minimise default losses. Factors considered when sanctioning retail loans include income, demographics, credit history, loan tenure, and banking behaviour. In addition, multiple credit risk models are developed and used to assess different segments of customers based on portfolio behavior. In wholesale loans, credit risk is managed by capping exposures based on borrower group, industry, credit rating grades, and country, among others. This is supported by portfolio diversification, stringent credit approval processes, periodic post-disbursement monitoring, and remedial measures. Your Bank has maintained strong asset quality through volatile times in the lending environment by stringently adhering to prudent norms and institutionalised processes.

Additionally, your Bank also has a robust framework for assessing Counterparty Banks, which are periodically reviewed to ensure interbank exposures remain within approved appetites.

As on March 31, 2026, your Bank's ratio of Gross NonPerforming Assets (GNPAs) to Gross Advances was 1.15 per cent. Net Non- Performing Assets (Gross NonPerforming Assets Less Specific Loan Loss provisions) was 0.38 per cent of Net Advances.

Your Bank follows a conservative and prudent policy for specific provisions on NPAs. Its provision for NPAs exceeds the minimum regulatory requirements and complies with the regulatory norms for Standard Assets.

Credit Risk Emanating from Digital Lending

Driven by rapid technological advancements, the banking sector is increasingly recognising digitalisation as a key differentiator for customer retention and service delivery. Digital lending has emerged as a swift and convenient method for customers to secure loans, often within minutes or even seconds, in just a few clicks. However, it is crucial to address the associated risks and your Bank has implemented appropriate measures to manage these risks effectively. Digital loans are primarily sanctioned to Bank's existing customers, who often are customers across multiple products, thus providing the Bank ready access to their credit history and risk profile, facilitating thorough evaluation of their loan eligibility. Moreover, the credit checks and scores used by your Bank in process- based underwriting are replicated for digital loans, ensuring consistency in the evaluation process.

Market Risk

Market Risk primarily arises from your Bank's statutory reserve management, trading positions categorised into Held for Trading (HFT) Portfolio of the Bank and all other instruments in Available for Sale (AFS) and Fair Value Through Profit and Loss (FVTPL), other than HFT, which are being marked to market on a regular basis. These risks are managed through a well-defined Board approved policy, including the Market Risk Policy, Investment Policy, Foreign Exchange Dealing Policy, and Derivatives Policy that caps risk in different desks exposed to marked-to-market through Market risk limits/triggers. Risk measures such as position limits, tenor restrictions, sensitivity limits, namely: PV01, Modified Duration of Hold to Maturity Portfolio and Option Greeks, Value-at-Risk (VaR) Limit, Stop Loss Trigger Level (SLTL), Scenario-based P&L Triggers, Potential Loss Trigger Level (PLTL), YTD Trigger for AFS book are monitored on an end-of-day basis by Treasury Mid office. Additionally, forex open positions, currency option delta, and interest rate sensitivity limits are computed and monitored on an intraday basis. This is supplemented by a Board-approved stress testing policy and framework that simulates various market risk scenarios to measure losses and initiate remedial measures. Your Bank's Market Risk capital charge is computed daily using the Standardised Measurement Method applying the regulatory factors.

Liquidity Risk

Liquidity risk is the risk that the Bank may not be able to meet its financial obligations as they fall due without incurring unacceptable losses. Your Bank's liquidity and interest rate risk management framework is articulated through a well-defined Board approved Asset Liability Management Policy. As part of this process, your Bank has established various Board-approved limits for liquidity and interest rate risks in the banking book. The Asset Liability Committee (ALCO) is a decision-making unit responsible for implementing the Bank's -liquidity and interest rate risk management strategy in line with its risk management objectives. ALCO ensures adherence to the risk tolerance/limits set by the Board and reviews the policy's implementation and monitoring of limits. To manage liquidity risk, the Bank utilizes maturity gap analysis, Basel III ratios, and stock ratio limits. To mitigate interest rate risk in the banking book, Bank assesses the impact on, Net Interest Income and Market Value of Equity (MVE). This is further reinforced by a comprehensive Board-approved stress testing programme that covers both liquidity and interest rate risk.

Your Bank conducts comprehensive studies to assess the behavioural pattern of non-contractual assets and liabilities as well as the embedded options available to customers. These insights are utilised to manage maturity gaps and repricing risk respectively. Additionally, your Bank has the necessary framework to manage intraday liquidity risk.

The Liquidity Coverage Ratio (LCR) is a key reform by the Basel Committee aimed at fostering a more resilient banking sector. This global standard is also used to measure your Bank's liquidity position. The LCR ensures that the Bank maintains an adequate stock of unencumbered High- Quality Liquid Assets (HQLA) that can quickly and easily be converted into cash to meet its liquidity needs under a 30-day calendar liquidity stress scenario. By improving the banking sector's ability to absorb shocks from financial and economic stress, whatever the source, the LCR reduces the risk of spilling over from the financial sector to the real economy.

The Net Stable Funding Ratio (NSFR), a key liquidity risk measure under BCBS liquidity standards, is also used to assess your Bank's structural liquidity position. The NSFR seeks to ensure that your Bank maintains a stable funding profile relative to the composition of its assets and off-balance sheet activities. By requiring banks to fund their operations with more stable sources of funding on an ongoing basis, the NSFR promotes resilience over a longer-term horizon. The RBI guidelines stipulated a minimum NSFR requirement of 100 per cent at a consolidated level. Your Bank has consistently maintained the NSFR well above this threshold since its implementation.

Operational Risk

This risk pertains to losses arising from inadequate or failed internal processes, people, and systems or from external events. It also includes risk of loss due to legal risk but excludes strategic and reputational risk.

Given below is a detailed explanation under four different heads: Framework and Process, Internal Control, Technology Risk (Information Technology and Information Security) and Fraud Monitoring and Control.

Framework and Process

To manage Operational Risks, your Bank has established a comprehensive Operational Risk Management Framework, whose implementation is supervised by the Operational Risk Management Committee (ORMC) and reviewed by the RPMC of the Board. An independent Operational Risk Management Department (ORMD) is responsible for implementing the framework. The framework incorporates, three lines of defence to ensure implementation.

• To achieve the aforesaid objective pertaining to operational risk management framework, the ORMC guides and oversees the functioning, implementation, and maintenance of operational risk management activities of Bank, with special focus on:

• Challenge the identification and assessment of risks carried out by first line of defense through the Risk and Control Self-Assessment (RCSA)

• Measurement of Operational Risk based on the actual loss data and operational risk scenarios

• Monitoring of risk through Key Risk Indicators (KRI)

• Management and reporting through KRI, RCSA and operational risk losses of the Bank

B. Internal Control

Your Bank has implemented sound internal control practices across all processes, units, and functions. It has well- defined policies and processes for managing day-to-day activities. Your Bank follows well-established and designed controls, including the traditional four eye principles, effective segregation of business and support functions, segregation of duties, call back processes, reconciliation, exception reporting and periodic MIS. Specialised risk control units operate in risk- prone products/ functions to minimise operational risk. These controls are tested as part of the SOX control testing framework.

C. Technology Risk (Information Technology and Information Security)

Your Bank operates in a highly automated environment and makes use of the latest technologies available on cloud or on-premises Data Centres to support various business segments. With the advent of new technology tools and increased sophistication, your Bank has improved its efficiency, reduced operational complexities, aided decision making and enhanced the accessibility of products and services. This results in various risks such as those associated with the use, ownership, operation, redundancy, involvement, influence, and adoption of IT within an enterprise, as well as business disruption due to technological failures. Additionally, it can lead to risks related to information assets, data security, integrity, reliability, and availability, among others. Your Bank has put in place a governance framework, Information Security Practices, Business Continuity Plan, Disaster Recovery (DR) resiliency, Public Cloud and Cloud Native Services Adoption and Enhanced Automated Monitoring mechanisms to mitigate Information Technology and Information Security-related risks. Your Bank continues to enhance its information security posture through a range of strategic and technology-driven initiatives aimed at strengthening its information security and resilience against evolving cyber threats.

a. The Next-generation Cybersecurity Operations Center (CSOC) has brought in significant advancements to improve overall cyber security posture of the Bank by deploying a predictive / proactive security monitoring of Bank IT Infrastructure and Applications. Your Bank has deployed next generation security incident event management (SIEM) solution augmented by artificial intelligence (AI) and machine learning (ML) capabilities along with strong User Entity Behavioral Analysis (UEBA) functionalities and built-in threat modelling.

b. The Bank's dedicated Attack Surface Management (ASM) programme is aimed at continuously identifying and addressing vulnerabilities across its assets, thereby ensuring a secure environment for the Bank and its customers.

c. Additionally, vulnerability management of the Bank's internet properties, penetration testing, antivirus / anti-malware programme, etc. minimise the surface area for cyber security attacks.

d. The Bank's centralised patch management tool automates the discovery, management, and remediation of endpoints and servers across various operating systems and environments for the available patches. It further facilitates patching, software deployment, and compliance with security standards, thus reducing the risk of the introduction of vulnerability due to lack of timely patching.

e. With the growing use of cloud infrastructure, tools such as Cloud Posture and Access Security Tools (CSPM & CASB) have been implemented to detect misconfigurations, enforce compliance requirements, and proactively reduce cloud-related risks.

f. The Red Team proactively assesses the Bank's cyber assets for vulnerabilities through various periodic tests which also include red team assessments. Any issues identified during the assessments are remediated in a timely manner to ensure that the banking services remain resilient and stay protected against the evolving threats.

g. Your Bank has also adopted zero-trust architecture approach to ensure protection against cyber-attacks.

h. Bank's comprehensive e-learning module, iSecurity Ambassador (iSA), a mandatory assessment-based course on information and cyber security, helps in promoting security awareness culture in the Bank.

Overall, the Bank's cybersecurity measures are focused on ensuring the highest level of protection against cyber threats, with proactive monitoring and automated incident response capabilities, enhanced network visibility and a zero-trust approach to security.

The Bank has defined various policies and frameworks for managing the IT and Information Security risks including risks emanating from third party engagements and it follows the three lines of defence principle in managing these risks. With the evolving changes in the technology landscape, the Bank has been reviewing and enhancing the scope for monitoring and mitigating the risks through revision of frameworks and policies, tools, and governance.

Your Bank has a well-defined Business Continuity and Disaster Recovery plan that is periodically tested to ensure that it can meet any operational contingencies. Further, there is a well-documented crisis management plan in place to address the strategic issues of a crisis impacting the Bank and to direct and communicate the corporate response to the crisis including cyber crisis. In addition, employees periodically undergo mandatory business continuity awareness training and sensitisation exercises on a periodic basis.

D. Fraud Monitoring and Control

Your Bank has defined a comprehensive Fraud Risk Management Policy encompassing the life cycle, including fraud reporting. Further, the Bank has Whistle Blower and Vigilance Policies, with designated functions responsible for implementation of fraud prevention measures. Frauds are examined to identify the root cause and relevant corrective steps are recommended to prevent recurrence.

Fraud Monitoring/ Review committees at the senior management and Board level also deliberate on high- value fraud events and recommend preventive actions. Periodic reports are submitted to the Board and such committees.

Compliance Risk

Compliance Risk is defined as the risk of impairment of your Bank's integrity, leading to damage to its reputation, legal or regulatory sanctions, or financial loss, as a result of a failure (or perceived failure) to comply with applicable laws, regulations and standards. Your Bank has a Compliance Policy to ensure the highest standards of compliance. A dedicated team of subject matter experts in the Compliance Department works with business, support and operations teams to ensure active Compliance Risk management and monitoring. The team also provides advisory services on regulatory matters. The focus is on identifying and reducing risk by rigorously testing products and also putting in place robust internal policies. Products that adhere to regulatory norms are tested after rollout and shortcomings, if any, are fully addressed till the product stabilises. Internal policies are reviewed and updated periodically as per agreed frequency or based on market actions or regulatory guidelines/ actions. The compliance team also seeks regular feed back on regulatory compliance from product, business and operation teams through selfcertifications and monitoring.

Group Risk

Your Bank has a diverse set of subsidiaries including NBFC, AMC, Life Insurance, General Insurance, Venture Capital entities, amongst others. To manage the risk arising from subsidiaries with regard to potential uncertainties or adverse events that can impact the operations, financial stability, reputation of the Group, your Bank has established Group Risk Management function within the Risk Management Group. Your Bank shall have a reasonable oversight on the Risk Management Framework of the group entities on an ongoing basis through Group Risk Management Committee (GRMC) and Group Risk Council (GRC). The Board / Risk Management committees of respective subsidiary shall be driving the day-to-day risk management in accordance with the requirements of the respective regulator. Stress testing for the group is carried out by integrating the stress tests of the subsidiaries. Similarly, capital adequacy projections are formulated for the group after incorporating the business/ capital plans of the subsidiaries. The Group Risk Management Committee reports to the Bank's Risk Policy & Monitoring Committee (RPMC).

Group Oversight Framework:

The Bank has adopted a Group Oversight Framework ("the Framework") to strengthen its governance across subsidiaries.

The Framework applies to the Bank and its subsidiaries that are consolidated in the Bank's financial statements, with the exception of entities where the Bank neither exercises significant control nor qualifies as a significant beneficial owner-such as HDFC Mutual Fund, Alternative Investment Funds and Separately Managed Accounts managed or advised by HDFC Asset Management Company Limited and its international subsidiary.

The Framework establishes a defined structure for oversight and reporting across the Group. The Board of Directors of the Bank exercises overall oversight through periodic information reported by various stakeholders. The Group Oversight Department ("the Department") reports critical matters to the Board, including critical overdue action items, material risks, material related- party transactions and any other matter pertaining to group oversight. The Department also makes a periodic presentation to the Board covering various details of group companies such as key concerns, policy details, dividend details, risk assessment, Board composition, ESOP details, attrition rate in group companies, initiatives taken by the Department etc.

Apart from the specific Group Oversight Department, the Bank has also established oversight through separate control functions, namely, risk, compliance, finance, internal audit, IT & ISG, under the Framework. All these control functions meet with the respective counterparts of the group companies on a periodic basis to share best practices, raise difficulties, discuss common matters, etc. These control functions of the Bank also report Group- level key metrics and any observed exceptions through designated channels.

Oversight responsibilities and escalation protocols are set out in the framework and is illustrated as below.

Model Risk

The use of models invariably presents model risk, which is the potential for adverse consequences arising from decisions based on incorrect or misused model outputs and reports. The Model Risk Management (MRM) within the Risk Management Group is responsible for testing and verifying the accuracy and reliability of models used within the Bank. By establishing a dedicated MRM team, the Bank ensures that its models are independently evaluated both before implementation and on an ongoing basis.

The Bank has established Model Risk Management Policy (MRM Policy), a centralised, overarching policy whose objective is to provide comprehensive guidance on model risk management across the Bank. The policy defines the roles and responsibilities of various stakeholders, namely Model Owners, Model Users, Model Developers, and the Model Risk Management (MRM).

The Model Risk Management Committee (MRMC) which is an executive committee that governs the Model Risk Management Framework as outlined in the MRM policy. The MRMC also oversees the development and implementation of MRM policy, ensures that the necessary governance structure, processes, and systems are put in place, and reviews the results of model validation and monitoring on a periodic basis. The MRMC reports to the Bank's Risk Policy & Monitoring Committee (RPMC).

The Bank also has established the Artificial Intelligence Policy (AI Policy), a centralised policy whose objective is to provide comprehensive guidance on Artificial Intelligence and Machine Learning (AI/ML) use case lifecycle and Generative AI (GenAI) use case lifecycle management. It establishes clear principles, governance structures, and lifecycle protocols to ensure AI solutions are deployed ethically, securely, and in alignment with regulatory expectations.

The Bank's AI governance framework consists of delivery teams and a network of enabling functions that review and monitor AI solutions during their lifecycle. The AI Risk Council (AIRC) performs lifecycle-stage reviews at the transactional or use-case-specific level, including Pre-Deployment Validation (PDV), Post-Deployment Monitoring, Incident Response, and Change Management as applicable, to ensure compliance with model risk and other risk requirements. The AI Risk Council ensures that all AI solutions meet regulatory, ethical, and risk management standards, with robust oversight of model integrity, responsible use, and ongoing compliance across the lifecycle.

The AI Risk Council (AIRC) reports all AI Policy dispensations, exceptions, and escalations to the Model Risk Management Committee (MRMC), which serves as the primary decision-making and escalation authority.

Climate Risk

Climate change risks are categorised into:

Physical risks (acute and chronic) which captures economic losses from acute impacts due to extreme weather events or long-term chronic impact on environment; and

Transition risks which involve financial asset level losses resulting from the possible process of adjustment to a low carbon economy.

The CSR and ESG committee of the Board oversees the Bank's sustainability and climate change initiatives. This Committee monitors the ESG policy framework, the Environmental Policy framework, actionables and initiatives strategised and executed by the management level ESG Apex Council and the ESG Working Groups. It also ensures a comprehensive oversight over the Bank's ESG disclosures, highlighting the Bank's ESG performance and prioritising key material topics. A dedicated ESG vertical collaborates seamlessly with various internal and external stakeholders, to advance the Bank's ESG agenda, including the management, mitigating, and reporting of climate metrics. The Deputy Managing Director, with direct oversight of the ESG function, diligently reports to the Board on such matters.

Furthermore, your Bank has strengthened its ESG Risk Management (ESGRM) Framework, integrating into the Bank's wholesale credit appraisal process. Specifically, the Bank's ESGRM Framework addresses climate transition and mitigation plans and includes prohibition and restriction list criterion and ‘Category-A' tagging of climate risk-related vulnerable sectors. Your Bank's commitment to enhance its portfolio from a climate and ESG perspective is reflected in the development of the Board approved Sustainable Finance Framework, which aligns with the Bank's overall sustainability strategy.

Since FY 2023-24, your Bank has been publishing data on financed emissions with focus on enhanced data quality and coverage and is formulating an internal strategy to track these emissions. The Bank is also engaging in capacity building programmes to familiarise the Board and its staff members on the key developments in climate risk assessment, recognising the evolving nature of risk.

Additionally, your Bank is continuously striving to align itself to make increased climate risk-related disclosures in line with domestic and global regulations. Your Bank aims to align with climate risk related disclosures as per Task Force on Climate-Related Financial Disclosures (TCFD) framework and has been reporting on ESG KPIs in alignment with the Global Reporting Initiative (GRI) since FY 2013-14. Furthermore, the Bank complies with and reports in line with the SEBI-stipulated Business Responsibility and Sustainability Reporting (BRSR) framework in its annual disclosures.

Stress Testing Framework

Your Bank's Board-approved Stress Testing Policy and Framework is an integral part of its Internal Capital Adequacy Assessment Process (ICAAP). Stress testing employs various methods to evaluate the Bank's potential vulnerability to extreme but plausible stressed business conditions. The changes in the levels of Pillar I risks and select Pillar II risks, along with changes in the Bank's on and off-Balance Sheet positions, are assessed under assumed ‘stress' scenarios and sensitivity factors. The suite of stress scenarios includes topical themes based on prevailing geopolitical / macroeconomic / sectoral and other trends. Stress testing outcomes are analyzed depending on the scenarios through capital impact and/ or identification of vulnerable borrowers.

Business Continuity Planning (BCP)

Your Bank's robust BCP programme enables operational resilience and continuity in delivering quality services across various business cycles. With the ISO 22301:2019 certified Business Continuity Programme, your Bank prioritises minimising service disruptions and safeguarding our employees, customers and business during any unforeseen adverse events or circumstances. The Programme is designed in accordance with the guidelines issued by regulatory bodies. Further, the programme undergoes regular internal, external and regulatory reviews.

The Business Continuity Management (BCM) function focusses on strengthening the Bank's preparedness for continuity. Oversight over the programme is provided by the Business Continuity Steering Committee (BCSC), chaired by the Group Chief Risk Officer and Risk & Policy Monitoring Committee (RPMC), a Board-level committee.

The programme is guided by an enterprise-wide Board approved BCM Policy, supported by comprehensive processes and procedures. These enable the Bank to effectively respond to, recover from, resume and restore critical business functions following disruptions caused by internal or external risk events. The framework clearly defines roles and responsibilities for teams involved in Crisis Management, Business Recovery, Emergency Response and IT Disaster Recovery, ensuring a coordinated approach.

Some of the key roles in this programme are as follows:

As a responsible Bank, these steadfast practices have enabled us to continue seamless service delivery to our customers through disruptive events and beyond.

Internal Controls, Audit and Compliance

Your Bank continues to have in place extensive internal controls and processes to mitigate operational and other allied risks which also include centralised operations and ‘segregation of duty' between the front and backoffice. These processes are commensurate with the size and scale of the Bank. The front-office units usually act as customer touchpoints and sales and service outlets while the back-office carries out the entire processing, accounting and settlement of transactions in the Bank's core banking system. The policy framework, definition and monitoring of limits is carried out by various mid-office and risk management functions. The credit sanctioning and debt management units are also segregated and do not have any sales and operations responsibilities.

Your Bank has various executive-level committees that are designed to review and oversee matters pertaining to capital, assets and liabilities, business practices and customer service, operational risk, information security, business continuity planning and internal risk-based supervision among others. Various business and control functions also actively participate in these committees. The second line of defence functions set standards and lay down policies and procedures by which the business functions manage risks, including compliance with applicable laws, compliance with regulatory guidelines, adherence to operational controls and relevant standards of conduct. At the ground level, your Bank has a mix of preventive and detective controls implemented through systems and processes, ensuring a robust framework in your Bank to enable correct and complete accounting, identification of outliers (if any) by the management on a timely basis for corrective action and mitigating operational risks.

Your Bank has put in place various preventive controls, including:

a) Limited and need-based access to systems by users

b) Dual custody over cash and near-cash items

c) Segregation of duty in processing of transactions visa-vis creation of user IDs

d) Segregation of duty in processing of transactions vis-a-vis monitoring and review of transactions/ reconciliation

e) Four eye principle (maker-checker control) for processing of transactions

f) Stringent password policy

g) Booking of transactions in core banking system mandates the earmarking of line/limit (fund as well as non-fund based) assigned to the customer

h) STP processes between core banking system and payment interface systems for transmission of messages

i) Additional authorisation leg in payment interface systems in applicable cases

j) Audit logs directly extracted from systems

k) Empowerment grid

Your Bank also has detective controls in place:

a) Periodic review of user IDs and its usage logs

b) Post-transaction monitoring at the back-end by way of call back process (through daily log reports) by an independent person, i.e. to ascertain that entries in the core banking system/messages in payment interface systems are based on valid/authorised transactions and customer requests

c) Daily tally of cash and near-cash items at end of day

d) Reconciliation of Nostro accounts (by an independent team) to ascertain and match-off the Nostro credits and debits (external or internal) regularly to avoid/ identify any unreconciled/unmatched entries passing through the system

e) Reconciliation of all internal / transitory accounts and establishment of responsibility in case of outstandings

f) Independent and surprise checks periodically by supervisors.

Your Bank has an Internal Audit Department which is responsible for independently evaluating the adequacy and effectiveness of internal controls, risk management, compliance with extant regulations, governance systems and processes and is manned by appropriately qualified and experienced personnel.

This department adopts a risk-based audit approach in line with RBI's guidelines on Risk Based Internal Audit (RBIA) Framework and carries out audits across all businesses and support functions of your Bank. The audit coverage includes Retail, Wholesale, Treasury businesses, various operational units, control and support functions, Information Technology and Information security, etc.

The Internal Audit is an ongoing activity which employs various tools and techniques to independently evaluate the adequacy and effectiveness of internal controls on an ongoing basis and proactively recommending enhancements thereof. The Internal Audit Department, during audit, also ascertains the extent of adherence to regulatory guidelines, legal requirements and operational processes and provides timely feedback to the management for corrective actions. In line with the Bank's digitalisation efforts, the audit function has incorporated technology-driven interventions to enhance its efficiency and effectiveness. A strong oversight on the operations is kept through off-site monitoring by use of data analytics and automation tools to study trends/patterns to detect outliers (if any) and alert the management for due corrective action, wherever warranted.

The Internal Audit Department also independently reviews your Bank's approach for calculation of capital charge for Credit Risk, the appropriateness of your Bank's ICAAP, as well as evaluates the quality and comprehensiveness of your Bank's disaster recovery and business continuity plans and also carries out testing and assessment of adequacy of the Bank's internal financial controls and operating effectiveness of such controls in terms of Sarbanes Oxley (SOX) Act and Companies Act, 2013. The Internal Audit Department plays an important role in strengthening of the control functions by periodically reviewing their practices and processes as well as recommending enhancements thereof. Additionally, oversight is also kept on the functioning of the subsidiaries, related party transactions and extent of adherence to the licensing conditions of the RBI.

Any new product/process introduced in your Bank is reviewed by Compliance function to ensure adherence to regulatory guidelines. The Audit function may, if deemed necessary also proactively recommend improvements in operational processes and service quality for such new products / processes.

To ensure independence, the Head-Internal Audit has a direct reporting line to the Audit Committee of the Board and an administrative line reporting to the Managing Director.

The Compliance function independently tracks, reviews and ensures compliance with regulatory guidelines and promotes a compliance culture in the Bank.

Your Bank has a comprehensive Know Your Customer (KYC), Anti Money Laundering (AML) and Combating Financing of Terrorism (CFT) policy (based on the RBI guidelines/provisions of the Prevention of Money Laundering Act, 2002) incorporating the key elements of

Customer Acceptance Policy, Customer Identification Procedures, Risk Management and Monitoring of Transactions. The policy is subject to an annual review and is duly approved by the Board.

Your Bank besides having robust controls in place to ensure adherence to the KYC guidelines at the time of account opening also has monitoring processes at various stages of the customer lifecycle including a continuous review process in the form of transaction monitoring carried out by a dedicated AML CFT monitoring team, which carries out transaction reviews for identification of suspicious patterns/trends that enables your Bank to further carry out enhanced due diligence (wherever required) and appropriate actions thereafter.

The Audit team and the Compliance team undergo regular training and certifications, both in-house and external to equip them with the necessary know-how and expertise to carry out the function.

The Audit Committee of the Board reviews the effectiveness of controls, compliance with regulatory guidelines as also the performance of the Audit and Compliance functions in your Bank and provides direction, wherever deemed fit. The Audit function is also subject to periodic external assurance reviews and has an internal Quality Assurance Improvement Program. Your Bank has always adhered to the highest standards of compliance and has put in place appropriate controls and risk measurement and risk management tools to ensure a robust compliance and governance structure.

Performance of Subsidiary Companies

Your Bank has five key subsidiaries, HDFC Life Insurance Company Limited (HDFC Life), HDB Financial Services Limited (HDBFSL), HDFC ERGO General Insurance Company Limited (HDFC ERGO), HDFC Asset Management Company Limited (HDFC AMC) and HDFC Securities Limited (HSL). HDFC Life is a leading, listed, long-term life insurance solutions provider in India. HDBFSL is a leading NBFC that caters primarily to segments not covered by the Bank. HDFC ERGO offers a complete range of general insurance products. HDFC AMC is Investment Manager to HDFC Mutual Fund, one of the largest mutual funds in the country while HSL is among India's leading retail broking firms.

Amongst the Bank's key subsidiaries, HDFC Life Insurance Company Limited and HDFC ERGO General Insurance Company Limited prepare their financial results in accordance with Indian GAAP and other subsidiaries do so in accordance with the notified Indian Accounting Standards (‘Ind-AS').

The financial numbers of the subsidiaries mentioned herein below are in accordance with the accounting standards used in their standalone reporting under the applicable GAAP.

The detailed financial performance of the companies is given below.

HDFC Life Insurance Company Limited (HDFC Life)

Established in 2000, HDFC Life Insurance Company Limited (‘HDFC Life' or the ‘Company') is a leading provider of long-term life insurance solutions in India. It offers a broad range of individual and group plans across the Protection, Pension, Savings, Investment, Annuity, and Health categories, with a portfolio comprising over 70 products and optional riders designed to meet the diverse needs of its customers.

In the Financial Year 2025-26, the Company continued to maintain its position among the top three private insurers by individual Weighted Received Premium (WRP). The Company's private sector market share stood at 15.1 per cent for FY 2025-26. HDFC Life outperformed the broader industry in two key focus areas: The first one being retail protection which grew 43 per cent, year-on-year and the second one being agency channel which also grew ahead of industry.

Retail protection was a clear highlight during the year, supported by lower prices post GST change and a strengthened product portfolio. Retail protection mix expanded by nearly 200 basis points year-on-year to 7.2 per cent in FY 2025-26 and including riders, protection now contributes over 10 per cent of HDFC Life's retail business. Retail sum assured also grew by 28 per cent year-on-year, and the Company maintained its leadership position on overall sum assured, reinforcing the quality of business mix. Annuities were another area of meaningful progress. Looking ahead, the Company expects a gradual shift in the product mix as customers rebalance towards long-term savings and protection in an environment of greater uncertainty.

The ongoing build-up of the agency channel was another strong story of the year. Agency grew ahead of the company by 500 bps, maintaining a strong protection mix. On the other hand, partnership channels experienced elevated volatility during the year, primarily driven by heightened competitive intensity.

On financial and operational metrics, Value of New Business (VNB) stood at '4,034 crore with VNB margin of 24.2 per cent, for FY 2025-26. Embedded Value (EV) stood at '62,139 crore, with an operating RoEV of 15.0 per cent. Profit After Tax for the period stood at '1,910 crore. Company's solvency ratio stood at 177 per cent, as on March 31, 2026. Persistency ratios were stable, with 13-month and 61-month persistency at 85 per cent and 64 per cent respectively. These trends reflect the underlying product and tier mix. Renewal collections grew 15 per cent year-on-year. Assets under Management (AUM), including that of the wholly owned subsidiary HDFC Pension Fund Management, stood at '5.3 lakh crore.

HDFC Life has built a strong a distribution network that reaches over 724 districts, by nurturing partnerships that stand the test of time. The Company has delivered consistent and predictable performance over multiple timeframes. Its key metrics, including VNB, have nearly doubled every 4-5 years thus reflecting sustained growth and delivering value to all stakeholders.

In August 2025, HDFC Life celebrated 25 years of incorporation, and in October 2025 the Company celebrated 25 years of its journey of protecting India with pride - a quarter century of trust and impact. From being India's first private life insurer in 2000, the Company, today, is amongst the most trusted leaders in the private life insurance industry. To commemorate its 25^th anniversary, HDFC Life undertook the branding of Mahalaxmi Metro Station (in Mumbai) - aiming to connect closely with daily commuters, reminding them about the need for financial security.

Furthermore, HDFC Life will continue to deliver towards ‘Insurance for All by 2047' through product innovation, enhanced reach and superior service, while strengthening its promise of protecting India with pride, every step of the way.

HDB Financial Services Limited (HDBFSL)

HDB Financial Services Limited (HDBFSL), a subsidiary of HDFC Bank is a Non-Banking Finance Company (NBFCs). In FY 2025-26, it was listed on BSE and NSE post a successful IPO at a final issue price of '740 per share. . It has a comprehensive bouquet of products and service offerings that are tailor-made to suit its customers' requirements including first-time borrowers and the underserved segments.

HDBFSL is engaged in the business of lending, fee-based products and BPO services.

The company's Profit After Tax stood at '2,544 crore as on March 31,2026 compared to '2,176 crore as on March

31,2025. The Total Loan Book stood at '1,18,493 crore as on March 31, 2026 compared to '1,06,878 crore as on March 31,2025, a growth of 10.87 per cent. Gross Non Performing Asset (GNPA) ratio stood at 2.44 per cent and Net Non Performing Asset (NNPA) ratio at 1.09 per cent as on March 31, 2026. GNPA stood at 2.26 per cent and NNPA at 0.99 per cent for the year ended March 31, 2025. Capital Adequacy Ratio stood at 21.40 per cent as on March 31,2026.

HDBFSL has continued to focus on diversifying its products and expanding its distribution while augmenting its digital infrastructure and offerings to effectively deliver credit solutions. The company has a strong network of over 1,730 branches spread across 1,161 cities. As on March 31, 2026, your Bank held 74.12 per cent stake in HDBFSL.

HDBFSL has a diverse range of product offerings (secured and unsecured) to various customer segments. Given below are the key product as well as service offerings to various customer segments.

Consumer Loans

Consumer Loans are provided to individuals for personal or household purposes to meet their short to medium term requirements. It comprises loans for consumer durables, lifestyle products and digital products, personal loans, auto loans for new and used cars, two-wheeler loans and gold loans.

Enterprise Loans

HDBFSL offers loans to businesses for their growth and working capital requirements. Various loans offered to enterprises include: Unsecured Business Loan, Enterprise Business Loan, Loan Against Property, Loan Against Securities. These loans cater to the financial requirements of enterprises for the purchase of new machinery, inventory or revamping the business.

Asset Finance

HDBFSL provides loans for the purchase of new and used commercial vehicles and provides refinance against existing vehicles for business working capital. It extends these offerings to fleet owners, first-time users, first-time buyers and captive use buyers. Construction equipment loans are offered for the procurement of new and used construction equipment. The company also facilitates refinancing on existing equipment. HDBFSL also offers customised tractor loans for the purchase of tractors or tractor-related implements to meet both agricultural and commercial needs.

Micro Lending

HDBFSL offers micro loans to borrowers through the Joint Liability Group (JLG) framework to empower and promote financial inclusion for sustainable development. HDBFSL operate this business from 271 branches.

Fee-Based Products / Insurance Services

HDBFSL has a licence from the Insurance Regulatory and Development Authority of India (IRDAI) and is a registered Corporate Insurance Agent certified to sell both life and general (non-life) insurance products. The company has tie-ups with HDFC Life Insurance Company Limited, Go Digit Life Insurance and Aditya Birla Sun Life Insurance for life insurance products. HDBFSL has partnered with HDFC ERGO General Insurance Company Ltd, Tata AIG General Insurance Company Ltd, Acko General Insurance and Go Digit General Insurance for general insurance products.

BPO Services

The BPO service offerings include running collection call centres, sales support services, back-office operations and processing support services. Under collection services, HDBFSL has a contract to run collection call centres for HDFC Bank. These centres provide collection services for the entire range of HDFC Bank's retail lending products offering comprehensive end-to-end collection services. Under back office and sales support, HDBFSL offers sales support and back-office services like forms processing, document verification, finance and accounting operations and processing support for HDFC Bank.

Digital Presence

HDBFSL's presence across digital channels enables it to offer a wide range of financial solutions to its customers. They can access and manage their loan account 24/7 through Mobile Banking Application HDB-On-the-Go with enhanced features, customer service portal to manage the loan account, missed call service and WhatsApp Account Management

HDFC ERGO General Insurance Company Limited (HDFC ERGO)

HDFC ERGO General Insurance Company Limited (HDFC ERGO), a subsidiary of HDFC Bank offers a comprehensive bouquet of general insurance products - ranging from Health, Motor, Travel, Home, Personal Accident and Cyber Insurance for its retail customers. It also offers products like Property, Engineering, Marine and Liability Insurance to its SME and Corporate Customers as well as Crop and Cattle Insurance for Rural Customers. Aligned with the IRDAI's vision of ‘Insurance for All by 2047', HDFC ERGO focuses on strengthening awareness, accessibility and affordability to enable long-term financial security.

HDFC ERGO has a track record of consistent profitable growth. Over the past 18 years, it has grown faster than the industry - with a 26 per cent CAGR vis-a-vis 15 per cent CAGR for the general insurance industry. As a result, HDFC ERGO has improved its market share from 0.8 per cent in FY 2007-08 to 4.5 per cent in FY 2025-26. Profit After Tax for the year ended March 31,2026, was at ' 813 crore compared to ' 500 crore for the year ended March

31,2025.

Distribution Network

To provide its customers complete flexibility to avail its products and services, HDFC ERGO has a pan-India presence and a multi-channel distribution network.

Riding on the motto of ‘Customer First', HDFC ERGO has a comprehensive distribution network of over 1.4 lakh individual agents including Point of Sales Personnel (POSPs), 19 Banks, 190 Corporate Agents and over 700 brokers with 256 offices and 651 digital offices spread across the country, enabling it to ‘Insure More, Serve More, Reach More'.

Accident and Health Insurance: As an important stakeholder in building a ‘Healthy India', HDFC ERGO offers various products under Accident and Health Insurance - retail health insurance to those seeking individual or family floater health insurance plans, group health insurance to insured groups, top-up health insurance to those who seek to protect themselves from high medical expenses, mass health insurance to those interested in participating in Government schemes. HDFC Ergo is the fourth largest retail health insurer in the industry as of March 31,2026.

Commercial Business: HDFC ERGO has a track record of providing customised insurance solutions to its corporate clients. Be it property, engineering insurance, marine insurance or liability insurance, it follows an advisory approach to its clients based on a thorough understanding of their requirement. It is the fourth largest insurer in the private sector in the commercial segment in the Financial Year 2025-26.

Motor Insurance: HDFC ERGO offers motor insurance for various segments - private cars, two-wheelers, passenger vehicles, commercial vehicles, electronic vehicles as well as new and old vehicles.

Rural and Agri Business: HDFC ERGO's rural market development activities are spearheaded by crop insurance covering a large agrarian population which is frequently affected by crop losses attributable to an irregular climatic pattern. It is the fourth largest insurer in the private sector in the crop insurance segment in the Financial Year 202526. HDFC ERGO also supports deepening insurance penetration in rural India via its Common Service Centre (CSC) channel.

Building trust on insurance sector

Be it unique insurance products, integrated customer service models, top in-class claim processes or a host of technologically innovative solutions, HDFC ERGO strives to consistently enhance the customer/partner experience. It has ISO certified processes of Claims, Operations, Customer Services, Business Continuity Management System and Information Security Management System.

HDFC ERGO has a fair and robust claims management practice. The Company provides prompt response and quick claim settlement and equity of treatment to all its stakeholders, through its wide network of motor workshops and empanelled hospitals across the country. Customers can view and track claims status and provide feedback through HDFC ERGO's website and mobile application thus bringing in transparency. Over 28 per cent of motor insurance claim surveys were conducted digitally in the Financial Year 2025-26. About 96 per cent of motor insurance claims and about 70 per cent of health insurance claims were settled in cashless mode in the year under review.

HDFC ERGO issued more than 4.3 crore policies in FY 2025-26, of which approximately 94 per cent were issued digitally. It has enabled multilingual support across digital platforms to service the customers in their preferred language. In line with its customer centric philosophy, HDFC ERGO's grievance resolution TAT is lower than the industry average by about eight days.

Digital Insurer

HDFC ERGO continues to invest in developing robust digital capabilities to ensure long-term success in the digital landscape. Its transition of the policy administration system to Duck Creek marks a significant stride towards future readiness and unlocking growth. During the year, platform coverage expanded across products in retail, health and fire facilitating seamless customer experience supported by rule-based processing and omni channel unified journeys.

HDFC ERGO's Here app is a one-of-its-kind insurer-led ecosystem that integrates health, mobility, and cyber-wellbeing services into a single, unified platform. It offers a seamless interface for policy purchase, policy management, claims intimation and claims tracking. It also offers integrated services like roadside assistance, cashless garages, and wellness offerings. Over 50 per cent of the company's digital servicing transactions are powered by the Here app. With over one crore downloads and over 13,000 policies purchased, the app continues to see strong adoption.

HDFC ERGO continues to be future-ready by innovating and focusing on new-age technologies like AI (especially Gen AI), VR, robotics, etc. to continue to provide superior customer experience.

Sustainability

HDFC ERGO believes in building a sustainable ecosystem to ensure it can continue providing value to its customers and society at large. It has developed an ESG policy and framework and has been undertaking several initiatives across Environmental and Social aspects and further strengthening its Governance related processes.

As an example, Diversity, Equity and Inclusion (DEI) is a key part of its culture and embedded in various processes. The share of women in overall workforce has improved from 19 per cent in FY2022 to 29 per cent in FY2026

HDFC Asset Management Company Limited (HDFC AMC)

Established in 1999, HDFC AMC offers a comprehensive suite of mutual fund and alternative investments across asset classes, including equity, fixed income, hybrid and multi-asset solutions. These offerings are available on both active and passive platforms, catering to a broad and diverse customer base. As of March 31,2026, HDFC Bank held 52.37 per cent stake in HDFC AMC.

As the investment manager to HDFC Mutual Fund - one of India's leading mutual funds - HDFC AMC reported a closing AUM of over ' 8,43,994 crore, representing a market share of 11.4 per cent as on March 31,2026. It serves over 1.67 crore unique investors through 3.02 crore live accounts. With a strong nationwide presence across 280 offices and a network of over 1.09 lakh distribution partners, HDFC AMC is further enabled by modern digital platforms, ensuring broad and efficient access for clients across India.

HDCF AMC extends Portfolio Management, Segregated Account Services, along with Alternative Investment Funds to high net-worth individuals, family offices, domestic corporates, trusts, provident funds and domestic as well as global institutions.

Additionally, the company has a wholly owned subsidiary company - HDFC AMC International (IFSC) Limited in Gujarat International Finance Tec-City (GIFT City) offering investment management, advisory and related services.

HDFC Securities Limited (HSL)

HDFC Securities Limited (HSL), is among the leading broking firms in India, serving about 78 lakh customers with a comprehensive range of investment and protection products. It leverages real-time, data-driven insights and research-backed information to empower investors. HSL has 128 branches over 100 cities and towns as on March 31, 2026. Approximately, 98 per cent of its customers accessed its services digitally. HSL is ranked at 6^th position in terms of number of active clients on NSE in March 2026.

HSL has demonstrated a strong financial performance over the years, underscored by a 23 per cent CAGR in total income and a 21 per cent CAGR in profit after tax, over the last ten years.

HDFC Bank held 94.01 per cent stake in HSL as of March

31,2026. In terms of amount, HDFC Bank's investment in HSL aggregated to '1,299 crore as of March 31,2026.

Highlights for FY 2025-26:

Being a SEBI registered stockbroker, HSL's financial performance, inter alia, is also subject to macroeconomic developments and gyrations emanating from various market dynamics.

In FY 2025-26, HSL achieved a total income of '3,110 crore, as compared to '3,265 crore in the previous financial year. Net revenue (total income less finance costs) aggregated '2,293 crore in the financial year ended March 31, 2026, as compared to '2,479 crore in the previous financial year. Operating expenses were '1,056 crore, resulting in a cost- to-revenue ratio of 46 per cent. Profit after tax for FY 202526 was at '930 crore, and an earnings per share of '522. The margin trading funding (MTF) portfolio aggregated '7,137 crore as of March 31,2026, and equity trade volumes aggregated ' 6.8 lakh crore in FY 2025-26. HSL retained its market share in the retail equity delivery segment in the same range as in FY 2024-25. HSL's derivative volumes grew 83 per cent year-on-year and the market share in this segment increased by 1.7 times.

Launched in the Financial Year 2024-25, HSL's wealth advisory platform, HDFCTRU, scaled its assets under advisory from around '10,000 crore as of March 31, 2025 to around '15,000 crore as on March 31,2026.

During the year, HSL developed and implemented several features to enhance customer experience, trading capabilities, and investment tools across its InvestRight and SKY platforms. These include features such as portfolio optimiser that empowers customers to analyse and optimiser their portfolios, integration with NxtOption platform for advanced analytics and trading in options, launch of the new InvestRight web platform, SKY Signals that provides real-time chart pattern alerts for traders, equity and MTF basket investment tools, and tools for advanced order management.

Number of Meetings of the Board, attendance and constitution of various Committees

During FY 2025-26, the Board met 21 (twenty-one) times. The details of Board Meetings held during the year, attendance of Directors at the Meetings and constitution of various Committees of the Board are included separately in the Report on Corporate Governance.

Annual Return

In accordance with the provisions of the Companies Act, 2013 ("Act"), the Annual Return of the Bank in the prescribed Form MGT-7 for FY 2025-26 is available on the website of the Bank at https://www.hdfc.bank.in/about-us/investor-relations/annual- returns.

Requirement for maintenance of cost records

The cost records as specified by the Central Government under Section 148(1) of the Act, are not required to be maintained by the Bank.

Details in respect of frauds reported by auditors under Section 143(12) of the Act

Pursuant to Section 143(12) of the Act and the circular issued by the National Financial Reporting Authority on Statutory Auditors' responsibilities in relation to fraud in a company dated June 26, 2023, there were 4 (four) instances of fraud committed by the employees of the Bank during FY 2025-26 where the amount involved was ' 1 crore and above. These frauds were reported by the Statutory Auditors to the Audit Committee. Details of the frauds are as under:

Directors' Responsibility Statement

Pursuant to Section 134(3)(c) and Section 134(5) of the Act, and based on the information provided by the Management, the Board of Directors hereby confirm that:

• In the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

• Accounting policies have been selected and applied consistently. Reasonable and prudent judgments and estimates have been made so as to give a true and fair view of the state of affairs of the Bank as at March 31,2026 and of the profit of the Bank for the year ended on that date;

• Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Act, for safeguarding the assets of the Bank and for preventing and detecting fraud and other irregularities;

• The annual accounts have been prepared on a going concern basis;

• Internal financial controls have been laid down to be followed by the Bank and such internal financial controls are adequate and operating effectively; and

• Systems to ensure compliance with the provisions of all applicable laws are in place and such systems are adequate and operating effectively.

Compliance with Secretarial Standards

The Bank has complied with Secretarial Standards on Meetings of the Board of Directors (SS-1) and General Meetings (SS-2) issued by the Institute of Company Secretaries of India.

Statutory Auditors

The Members of the Bank at the 30^th Annual General Meeting held on August 9, 2024 had approved the appointment of M/s. Batliboi & Purohit, Chartered Accountants (ICAI Firm Registration No. 101048W) ("Batliboi & Purohit"), as one of the Joint Statutory Auditors of the Bank for a period of 3 (three) years from FY 202425 till (and including) FY 2026-27. Further, the Members of the Bank at the 31^st Annual General Meeting held on August 8, 2025 had approved the appointment of M/s. B S R & Co. LLP, Chartered Accountants (ICAI Firm Registration No. 101248W/ W-100022) ("B S R & Co.") as one of the Joint Statutory Auditors of the Bank for a period of 3 (three) years from FY 2025-26 till (and including) FY 2027-28.

Since the said appointments are subject to the approval of Reserve Bank of India ("RBI") every year, the Bank has made an application to RBI seeking approval for the re-appointment of Batliboi & Purohit and B S R & Co. as the Joint Statutory Auditors of the Bank for FY 2026-27.

During the year ended March 31,2026, the fees paid to Batliboi & Purohit and B S R & Co. ("Joint Statutory Auditors") as well as their respective network firms, on aggregated basis, are as follows:

- No fees were paid to network firms of Joint StatutoryAuditors by the Bank

- Excludes outlays and taxes

The aggregate fees paid to Joint Statutory Auditors were within the limits approved by the Audit Committee.

The Auditor's Report for the FY 2025-26 does not contain any qualifications, reservations or adverse remarks.

Corporate Social Responsibility and ESG

The composition of CSR & ESG Committee, brief outline of the CSR policy of the Bank and the initiatives undertaken by the Bank on CSR activities during FY 2025-26 are set out in Annexure 2 to this report in the format prescribed in Companies (Corporate Social Responsibility Policy) Rules, 2014. The Board of Directors at its meeting held on April 18, 2026 approved the amendment to the CSR policy to bring it in line with the requirements of applicable laws and regulations.

The CSR & ESG Committee confirms that the implementation and monitoring of the CSR Policy was done in compliance with the CSR objectives and policy of the Bank.

The Bank's CSR Policy and Environmental Social & Governance (ESG) Policy Framework are available on the Bank's website at https://www.hdfc.bank.in/about-us/corporate- governance/codes-and-policies

Particulars of Contracts or Arrangements with Related Parties

There were no contracts or arrangements entered into with related parties, referred to in Section 188(1) of the Act during FY 2025-26 and hence e-form AOC-2 as required under Rule 8(2) of the Companies (Accounts) Rules, 2014, is not enclosed.

Further, the Policy on Related Party Transactions of the Bank ("RPT Policy") ensures that the related party transactions are based on principles of transparency and arm's length pricing. The RPT Policy outlines the criteria for determining the materiality of related party transactions and the manner of dealing with the related party transactions by the Bank. The RPT Policy of the Bank has been amended to reflect the recent amendments in the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations") as well as to incorporate reference, where necessary, to Industry Standards on "Minimum information to be provided to the Audit Committee and Shareholders for approval of Related Party Transactions", formulated by the Industry Standards Forum.

Details of related party transactions entered into during FY 2025-26 are disclosed in Note No. 28 of Schedule 18, of the standalone financial statements in accordance with Accounting Standard (AS) - 18.

The RPT Policy is available at https://www.hdfc.bank.in/about- us/stakeholders-information/codes-and-policies

Further, the Directors / Key Managerial Personnel who are interested in the related party transaction(s) do not participate in the discussion / abstain from voting on the said matter at

Audit Committee meetings. The Bank has engaged an external independent consultant to advise the Bank on compliance with related party transaction norms.

Particulars of Loans, Guarantees or Investments

Pursuant to applicable provisions of Section 186 of the Act, the particulars of investments made by the Bank are disclosed in Note no. 8 of Schedule 18, of the standalone financial statements as per the applicable provisions of the Banking Regulation Act, 1949.

Material Development

There were no material developments / changes / commitments affecting the financial position of the Bank which occurred after March 31, 2026 till the date of this Report.

Financial Statements of Subsidiaries

In terms of Section 134 of the Act read with Rule 8(1) of the Companies (Accounts) Rules, 2014, the highlights of the performance of the Bank's subsidiaries and entities over which control is exercised, and their contribution to overall performance of the Bank during FY 2025-26 are enclosed as Annexure 3 to this Report. The Bank does not have any associate companies or other joint venture companies.

During the year, the Bank sold 13,51,35,135 equity shares of face value of ' 10 each of HDB Financial Services Limited ("HDBFS"), a subsidiary of the Bank in its Initial Public Offer by way of Offer for Sale, at the issue price of ' 740 per share, pursuant to which the shareholding of the Bank in HDBFS reduced to 74.19% of its total paid-up equity share capital. The Bank held 74.12% in HDBFS as on March 31, 2026.

In accordance with the Employee Stock Option Plan 2021 of HDFC Capital Advisors Limited ("HCAL"), the Bank acquired 71,678 equity shares of HCAL for an aggregate consideration of ' 80,86,61,878 from the employees of HCAL. The Bank held 89.68% in HCAL as on March 31,2026.

Further, on June 16, 2026, pursuant to the preferential issue of equity shares by HDFC Life Insurance Company Limited ("HDFC Life"), the Bank was allotted 1,45,23,906 equity shares of ' 10 each at a price of ' 688.52 per equity share.The Ban k held 50.21% in HDFC Life as on March 31,2026, which increased to 50.54% post the preferential issue.

In accordance with the provisions of Section 136 of the Act, the Integrated Annual Report of the Bank including the annual financial statements and related documents of the Bank's subsidiary companies are placed on the website of the Bank.

Disclosure under Foreign Exchange Management Act, 1999 ("FEMA")

During FY 2025-26, the Bank complied with the applicable provisions of FEMA with respect to downstream investments made by it. Further, as required under the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, the Bank has obtained a certificate from M/s. Batliboi & Purohit, Chartered Accountants, one of the Joint Statutory Auditors of the Bank, to this effect.

Whistle Blower Policy / Vigil Mechanism

The Bank encourages an open and transparent system of working and dealing amongst its stakeholders.

The Bank's "Code of Conduct & Ethics Policy" directs employees to uphold Bank's values and conduct business worldwide with integrity and highest ethical standards. The Bank has also adopted a "Whistle Blower Policy" ("WB Policy") to encourage and empower the employees / stakeholders to make or report any Protected Disclosures as defined under the WB Policy, without any fear of reprisal, retaliation, discrimination or harassment of any kind.

The WB Policy provides a mechanism through which adequate safeguards can be provided against victimization of employees who avail this mechanism. WB Policy covers and is applicable to the Protected Disclosures related to violation / suspected violation of the Code of Conduct including:

a) breach of applicable law;

b) fraud / criminal offence or corruption / misuse of office to obtain personal benefit / pecuniary advantage for self or any other person;

c) leakage / suspected leakage of unpublished price sensitive information which are in violation of SEBI (Prohibition of Insider Trading) Regulations, 2015 and internal code of the Bank i.e. Share Dealing Code of the Bank;

d) wilful data breach and / or unauthorized disclosure of Bank's proprietary data including customer data.

e) any irregular, unethical, or questionable loans to related parties.

The WB Policy does not cover the following types of complaints which if made, is not considered as Protected Disclosure under WB Policy:

a) Matters relating to personal grievances on issues such as appraisals, compensation, promotions, rating, behavioral issues / concerns of the manager(s) / supervisor(s) / other colleague(s), complaint of sexual harassment at workplace, etc. for which alternate internal redressal mechanisms in the Bank are in place.

b) Matters which are pending before a court of law, tribunal, other quasi- judicial bodies or any governmental authority.

c) Anonymous / pseudonymous complaints will not be considered as Protected Disclosures under this Policy.

d) Complaints which are vague, ambiguous and do not contain specific and verifiable information;

e) Repetitive complaints which are largely unsubstantiated and/or without any value addition.

All Protected Disclosures made under the WB Policy are made to the Whistle Blower Committee through the following modes:

a) By letter in a closed / sealed envelope addressed to the Whistle Blower Committee, or

b) By submission of the same on the information portal of the Bank, or

c) By way of an email addressed to whistleblower@hdfcbank. com. In exceptional circumstances, the Whistle Blower may make such Protected Disclosures directly to the Chairperson of the Audit Committee of the Board.

All Protected Disclosures received under the WB Policy are examined by the Whistle Blower Committee and the investigation is further assigned to an appropriate investigating officer(s) depending on the nature of the subject matter of the Protected Disclosure.

Details of whistle blower complaints received and subsequent action taken and the functioning of the whistle blower mechanism are reviewed periodically by the Audit Committee. During FY 2025-26, a total of 177 such complaints were received and taken up for investigation which has resulted in certain staff actions in 75 cases, post investigation. The broad categories of whistle blower complaints were in the areas of policy & process violation & improper business practices and a few instances involving corruption and misappropriation of customer funds.

WB Policy is available at https://www.hdfc.bank.in/content/ dam/hdfcbankpws/in/en/personal-banking/discover-products/ about-us/corporate-governance/codes-and-policies/ whistleblower-policv.pdf

Statement on Declaration by Independent Directors

Mr. M. D. Ranganath, Mr. Sandeep Parekh, Dr. (Mrs.) Sunita Maheshwari, Mrs. Lily Vadera, Dr. (Mr.) Harsh Kumar Bhanwala and Mr. Santhosh Keshavan are the Independent Directors on the Board of the Bank as on March 31,2026.

The Independent Directors have submitted declarations that each of them meets the criteria of independence as provided in Section 149(6) of the Act along with the Rules framed thereunder and Regulation 16(1)(b) of the SEBI Listing Regulations and that they have registered themselves with the Independent Director's Database maintained by the Indian Institute of Corporate Affairs.

During FY 2025-26, there has been no change in the circumstances affecting their status as Independent Directors of the Bank. In the opinion of the Board, the Independent Directors possess the requisite integrity, experience, expertise, skills, and proficiency required under all applicable laws and the policies of the Bank.

Performance Evaluation of Board of Directors

During the year, the Bank conducted the annual performance evaluation of the Board as a whole, Board Committees and individual Directors in accordance with the framework approved by the Governance Nomination and Remuneration Committee ("GNRC") of the Bank.

The evaluation was conducted electronically through a platform, using structured and differentiated questionnaires for the Board as a whole, Board Committees and individual Directors. These questionnaires were designed to assess a comprehensive set of parameters including the Board's composition and diversity, skills, clarity of roles and responsibilities, quality and timelines of information flow, effectiveness of Board processes and Committee functioning, adherence to the Code of Conduct and ethical values, etc.

As mandated under the Act and SEBI Listing Regulations, a separate meeting of the Independent Directors was convened to review the feedback on performance assessment of the Non-Independent Directors and of the Board as a whole. The Board also reviewed the assessment, including evaluation of all the Directors, Board Committees and the Board as a whole. The Board also affirmed that, beyond the established evaluation parameters, the Independent Directors meet the independence criteria outlined in the Act and SEBI Listing Regulations, and remain independent from the Bank's management.

The evaluation for FY 2025-26 reaffirmed that the Board continues to function at a high level of effectiveness across most parameters. The Directors noted meaningful improvements in the depth and quality of strategic discussions, more focused deliberation on business priorities, and strong overall committee performance. The Directors also appreciated the Board level Committees for their discipline, rigour, and well-structured oversight.

The qualitative feedback also provided nuanced perspectives on opportunities for further enhancement. Directors observed the value of broadening the Board's composition with additional expertise, as a means to augment the Board's strategic and supervisory strength. There was also a shared view that continuous learning and structured development sessions would support Directors in keeping pace with the evolving regulatory, technological and competitive landscape. In addition, suggestions included, enabling richer discussions on emerging risks and customer experience.

During the year, the Board continued to build on the key focus areas including progress on the Bank's Gen AI initiatives and cybersecurity, which had been highlighted as strategic priorities in the previous year's evaluation. The Board and relevant Committees were periodically updated on technology-modernization efforts, AI-driven innovations, and the Bank's cyber-risk posture, enabling continued strengthening of oversight in these domains. The Board also sustained its emphasis and devoted significant time and attention on strategic planning, competitive benchmarking and succession planning.

The Board noted that the evaluation exercise continues to play an important role in strengthening governance standards. The feedback from the FY 2025-26 evaluation has been duly considered by the Board, and it remains committed to continuously ensuring high-quality deliberation on key focus areas identified from time to time. Feedback from the evaluation was appropriately communicated to the respective Directors for their consideration and knowledge.

Policy on Appointment and Remuneration of Directors and Key Managerial Personnel

The Bank has in place a Policy for appointment and fit & proper criteria for Directors of the Bank. This Policy lays down the criteria for identification of persons who are qualified as ‘fit and proper' to become Directors, such as academic qualifications, competence, track record, integrity, relevant skills, etc. These criteria are considered by the GNRC while recommending the appointment of proposed candidate as a Director of the Bank.

This Policy also deals with the process for re-appointment of directors, annual affirmations, familiarization programme for Non-Executive Directors ("NEDs"), etc. and is available at https://www.hdfc.bank.in/about-us/corporate-governance/ codes-and-policies

The remuneration of all employees of the Bank, including Whole Time Directors, Material Risk Takers, Key Managerial Personnel, Senior Management and other employees is governed by the Compensation Policy of the Bank. The same is available at https://www.hdfc.bank.in/about-us/corporate-governance/ codes-and-policies.

The Compensation Policy of the Bank, duly reviewed and recommended by the GNRC has been articulated in line with the relevant RBI guidelines.

The Bank's Compensation Policy is aimed to attract, retain, reward and motivate talented individuals critical for achieving strategic goals and long-term success. The Compensation Policy is aligned to business strategy, market dynamics, internal characteristics and complexities within the Bank. The ultimate objective is to provide a fair and transparent structure that helps the Bank to retain and acquire the talent pool critical to build competitive advantage and brand equity.

The Bank's approach is to have a "pay for performance" culture based on the belief that the performance management system provides a sound basis for assessing performance holistically. The compensation system also takes into account factors such as roles, skills / competencies, experience and grade / seniority to differentiate pay appropriately on the basis of contribution, expertise and availability of talent on account of competitive market forces. The details of the Compensation Policy are also included in Note No. 17 of Schedule 18 forming part of the standalone financial statements.

During FY 2025-26, based on the recommendation of the GNRC, the Compensation Policy of Bank was reviewed by the Board of Directors and necessary changes were made therein with respect to addition of clauses pertaining to ‘Special Payouts' and inclusion of ‘Guidelines to grant LTI to New Joiners'.

Further, on November 21,2025, the Government of India notified four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively referred to as the 'New Labour Codes') thereby consolidating 29 existing labour legislations. The Ministry of Labour & Employment subsequently issued the draft Central Rules and FAQs on December 30, 2025, to enable assessment of the financial impact arising from these regulatory changes, which have been notified with effect from May 8, 2026.

In this regard, the Bank has undertaken the following measures:

• Provisioning: A provision of ' 800 crore has been made in FY 2025-26 towards staff costs to meet the requirements of the revised wage structure under the New Labour Codes.

• Salary Structure Revision: The employees' salary structure has been revised effective May 1,2026, to ensure alignment with the statutory framework.

• Ongoing Monitoring: The Bank continues to monitor further clarifications and guidance issued by the Government on the New Labour Codes and will incorporate the appropriate accounting treatment based on future developments, as required.

Remuneration to NEDs

The NEDs including Independent Directors are paid sitting fees for attending meetings of the Board and its Committees, which are determined by the Board based on applicable regulatory guidelines / circulars.

Further, expenses incurred by them, if any, for attending meetings of the Board and Committees are reimbursed at actuals. Additionally, pursuant to the relevant RBI guidelines and approval of the Members, the NEDs including Independent Directors, are paid fixed remuneration as detailed in the Report on Corporate Governance.

Following Directors of the Bank are also the director(s) of the Bank's subsidiaries / step down subsidiaries as on the date of this report:

*Note: As per the Bank's Policy, no sitting fees were paid for attending Board/Committee meetings of respective companies.

Succession Planning

Succession planning is a key component of the Bank's talent management and governance framework, designed to ensure business continuity, leadership sustainability, and long-term organizational resilience. The process focuses on systematically identifying, assessing, and developing leadership talent for critical roles, thereby reducing key person dependency and supporting the uninterrupted execution of the Bank's strategic priorities.

The Board composition and the desired skill sets / areas of expertise at the Board level are continuously monitored and vacancies, if any, are reviewed in advance through a systematic process.

The Bank follows a structured approach for succession planning for senior employees. For any leadership vacancy arising due to superannuation, attrition, or unforeseen events, internal successors identified through the Talent Review process are assessed first. Their readiness is evaluated against role requirements, and suitable candidates are considered through the Internal Job Watch (IJW) mechanism. In cases where no internal successor is immediately ready, an external search is initiated to ensure timely appointment while maintaining business continuity. For planned retirements, succession planning begins 12 (twelve) months in advance, allowing sufficient time to assess internal talent and, where required, initiate external hiring. The objective is to onboard the successor at least 6(six) months prior to the incumbent's retirement to facilitate effective knowledge transfer and a smooth transition. This approach enables the Bank to maintain a strong leadership pipeline and continuity across key positions.

The Bank undertakes a comprehensive Talent Review process annually for all senior employees through structured Talent Review Councils comprising senior HR and business representatives. Each leader is reviewed at least once within a rolling three-year cycle, ensuring systematic coverage. These reviews provide a holistic assessment of leadership capabilities, performance, development needs, succession readiness, and

future potential, while also identifying potential successors for critical roles. The outcomes include clearly defined development actions, succession plans, and leadership readiness assessments, enabling the Bank to maintain an updated view of leadership capability and organizational bench strength.

In addition, the IJW mechanism provides a structured platform for eligible employees to apply for leadership vacancies. Roles are internally published, applications are evaluated against predefined criteria, and candidates are shortlisted through a structured assessment process. The selection process is governed through senior management oversight, with appointments for Group Head positions further approved by the Governance, Nomination and Remuneration Committee as well as the Board of Directors, ensuring robust governance.

Succession planning and transitions at the Board and Senior Management level is a continuous process which is periodically reviewed by GNRC and the Board.

Significant and Material orders passed by Regulators

There are no significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and operations of the Bank in the future.

Directors and Key Managerial Personnel

In compliance with Section 152 of the Act and the Articles of Association of the Bank, Mr. V. Srinivasa Rangan (DIN: 00030248), will retire by rotation at the ensuing Annual General Meeting ("AGM") and is eligible for re-appointment. The resolution for re-appointment of Mr. V. Srinivasa Rangan is being proposed at the ensuing AGM for the approval of the Members. A brief profile of Mr. V. Srinivasa Rangan is furnished elsewhere in the Integrated Annual Report and the Notice of the AGM for the information of the Members.

During FY 2025-26 and till the date of this report, following were the changes in composition of the Board of Directors and Key Managerial Personnel of the Bank:

1. Resignation of Mr. Atanu Chakraborty (DIN: 01469375) as a Part-time Chairman and Independent Director of the Bank with effect from March 18, 2026.

2. Appointment of Mr. Keki Mistry (DIN: 00008886) as an Interim Part-time Chairman of the Bank with effect from March 19, 2026, initially for a period of 3 (three) months and thereafter for a further period of 3 (three) months until September 18, 2026 or till appointment of a regular Parttime Chairman, whichever is earlier.

3. Re-appointment of Mr. Kaizad Bharucha (DIN: 02490648) as Deputy Managing Director of the Bank for a period of

3 (three) years with effect from April 19, 2026 to April 18, 2029 (both days inclusive) , who is liable to retire by rotation.

4. Re-appointment of Dr. (Mrs.) Sunita Maheshwari (DIN: 01641411) as an Independent Director of the Bank for a period of 3 (three) years with effect from March 30, 2026 to March 29, 2029 (both days inclusive). She is not liable to retire by rotation.

5. Retirement of Mr. Bhavesh Zaveri (DIN: 01550468) as an Executive Director of the Bank with effect from the close of business hours on April 18, 2026.

The Board places on record its sincere appreciation for the wise counsel made by Mr. Chakraborty to the Bank during his association with the Bank. The Board also places on record its sincere appreciation for Mr. Zaveri's immense contribution to the Bank. His long, dedicated, and exemplary service has played a pivotal role in strengthening the Bank's institutional foundations, shaping its strategic direction, and supporting its sustained growth over the years.

All Directors of the Bank have confirmed that they satisfy the fit and proper criteria as prescribed under the applicable regulations and that they are not disqualified from being appointed as Directors in terms of Section 164(2) of the Act.

Particulars of Employees

In accordance with the provisions of Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the requisite details are set out in Annexure 4 to this Report.

Further, the statement containing particulars of employees as required under Section 197(12) of the Act read with Rule 5(2) and Rule 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is annexured and forms part of this Report. In terms of Section 136(1) of the Act, the Integrated Annual Report including the financial statements is being sent to the Members excluding the aforesaid Annexure. The Annexure is available for inspection and any Member interested in obtaining a copy of the same may write to the Company Secretary of the Bank.

Compliance with Maternity Benefit Act, 1961

The Bank has complied with the applicable provisions of Maternity Benefit Act, 1961 for female employees of the Bank with respect to leaves and maternity benefits thereunder.

Conservation of Energy and Technology Absorption

Please refer to the chapter "Environment - Driving Sustainable Impact" of this Integrated Annual Report for information on Conservation of Energy and Technology Absorption.

Foreign Exchange Earnings and outgo

During the FY 2025-26, the total foreign exchange earned by the Bank was ' 6,459.99 crore (on account of net gains arising on all exchange / derivative transactions) and the total foreign exchange outgo was ' 4,938.30 crore towards the operating and capital expenditure requirements.

Secretarial Audit

The report of M/s. Bhandari & Associates, a peer reviewed firm of Company Secretaries (ICSI Firm Registration No. P1981MH043700), Secretarial Auditors of the Bank is enclosed as Annexure 5 to this Report. There are no qualifications, reservations or adverse remarks in the report of the Secretarial Auditors.

Internal Financial Control

The Bank's internal control systems are commensurate with the nature of its business, the size and complexity of its operations and such internal financial controls with reference to the financial statements are adequate.

Corporate Governance

In compliance with applicable provisions of SEBI Listing Regulations, a separate report on Corporate Governance along with a certificate on compliance from the Secretarial Auditors, forms an integral part of this Annual Report.

Business Responsibility and Sustainability Report

The Bank's Business Responsibility and Sustainability Report forms an integral part of this Report.

Prevention, Prohibition and Redressal of Sexual Harassment of Women at the Workplace

The relevant information is included in the Report on Corporate Governance.

Customer complaints and grievance redressal

Details of customer complaints and grievance redressal is enclosed as Annexure 6 to this Report.

Unclaimed Deposits of HDFC Limited

The Bank is a private sector bank registered with RBI and in terms of applicable RBI norms, deposits remaining unclaimed / unpaid for a period of 10 (ten) years, need to be transferred by the Bank to Depositor Education and Awareness ("DEA") Fund maintained by RBI.

In accordance with applicable provisions of the Act read with Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, as amended, HDFC Limited, has transferred deposits remaining unclaimed for a period of 7 (Seven) years up to June 30, 2023, to the Investor Education and Protection Fund (IEPF) established by the Central Government. The deposit holders of HDFC Limited can claim their respective unclaimed deposits from IEPF. The process of claiming the deposits from IEPF is uploaded on the website of the Bank. Post merger of HDFC Limited with and into the Bank

i.e. effective July 1,2023, the Bank has been transferring all the unclaimed deposits of HDFC Limited (remaining unclaimed for more than 10 years) to the DEA Fund.

Acknowledgement

The Directors of the Bank wish to formally express their sincere gratitude for the steadfast guidance and collaborative support extended by the Reserve Bank of India, Securities and Exchange Board of India, Stock Exchanges, Ministry of Corporate Affairs, and various other Government and Regulatory Agencies. Their ongoing support and guidance have been instrumental in enabling the Bank to achieve its strategic goals and maintain robust governance standards.

Additionally, the Directors would like to take this opportunity to convey their deep appreciation for the outstanding commitment, diligence, and professionalism demonstrated by all employees across the Bank. The Directors specifically acknowledge the dedicated efforts of employees who have gone above and beyond in supporting critical initiatives and upholding the Bank's values through periods of transformation and growth.

With the support from all the stakeholders, the Bank is well positioned to achieve new milestones and create lasting value for all stakeholders.

Conclusion

In FY 2025-26, the Indian economy continued to be the world's fastest growing major economy displaying resilience amid global volatility due to tariff shocks and geo-political situation particularly in West Asia. In this situation, your Bank reported robust growth while maintaining its traditional asset quality. Looking ahead, the RBI has projected GDP growth of 6.6 per cent for FY 2026-27. While the outlook remains subject to evolving global and domestic risks, the expected long term economic growth will open huge opportunities for offering banking services. Your Bank has the benefit of a strong balance sheet to benefit from this opportunity.

The Bank remains committed to adhering to the high standards of corporate governance and focusing on its five core values: Customer Focus, Operational Excellence, Product Leadership, People and Sustainability while pursuing prudent growth.