Your Bank's Board of Directors are pleased to present the Report on the Bank's business and operations for the financial year ended March 31,2026.

Global economic activity remained resilient during FY 2025-26 despite persistent geopolitical tensions and intermittent financial market volatility. After the phase of synchronised monetary tightening witnessed in 2022-23, central banks across economies continued gradual policy normalisation, though the pace of easing remained uneven, reflecting country-specific growth and inflation dynamics.

Against this backdrop, India remained the fastest-growing major economy, registering an annualised growth of 7.7% in FY 2025-26 as per the Provisional Estimates (PE) released in June 2026. India's overall economic performance was underpinned by strong macroeconomic fundamentals and resilient domestic demand. Notwithstanding elevated geopolitical uncertainties, domestic growth remained broad-based, supported by sustained public infrastructure spending, a revival in the investment climate, steady consumption demand and robust expansion of the services sector. Domestic economic activity benefited from sustained bank credit growth, higher capacity utilisation, healthy balance sheets of banks and corporates and continued thrust on capital expenditure by the Government. Together, these factors strengthened the investment cycle, reinforced growth momentum and reaffirmed India's position as a key driver of global growth.

The domestic financial system remained stable and resilient as compared with many global peers, supported by strong macroeconomic fundamentals and a sound financial system. The banking sector exhibited improved profitability, enhanced asset quality and adequate capital and liquidity buffers, enabling it to effectively meet the growing credit requirements of the economy, thereby supporting overall economic expansion.

On the monetary policy front, the Reserve Bank of India (RBI) adopted a calibrated and growth-supportive approach during FY 2025-26. Following a prolonged period of pause, the RBI initiated policy easing beginning in early 2025 as inflation moderated decisively and the outlook turned benign. Over the course of calendar year 2025, the RBI cumulatively reduced the policy repo rate by 125 basis points, bringing it down to 5.25% by December 2025. Further, during FY 2025-26, the RBI maintained an accommodative policy stance while ensuring financial stability, supported by open market operations and liquidity-enhancing measures. The easing of policy rates contributed to improved monetary transmission, helping lower borrowing costs across sectors.

Going forward, factors such as relatively lower interest rates scenario, combined with sustained public capital expenditure, strengthening private investment sentiment and stable financial conditions, are expected to provide a conducive environment for credit growth and investment activity. While global uncertainties and geopolitical risks continue to pose challenges, India's strong domestic demand, policy credibility and structural reforms position the economy well to sustain healthy growth momentum.

During FY 2025-26, your Bank recorded a strong financial performance, marked by sustained balance sheet growth and improved scale, achieving a significant milestone with total business surpassing Rs.6 lakh crore. This growth was driven by steady expansion in both deposits and advances. Total deposits increased by 12% year-on-year to Rs.3,47,163 crore as on March 31,2026, while CASA deposits grew by 7% to Rs.1,54,816 crore. The CASA ratio remained healthy at 44.59%, reflecting a stable and cost-effective funding profile. On the lending side, net advances grew by a robust 16% to Rs.2,53,626 crore, supported by balanced credit growth. The Bank continued to maintain a prudent portfolio mix, with retail advances accounting for 70% and corporate advances accounted for 30% of its advances, thereby reinforcing portfolio granularity and risk diversification.

During the year under review, the Bank's Total Income amounted to Rs.35,744 crore, comprising Interest

Income of Rs.28,997 crore and Other Income of Rs.6,746 crore. Interest Expenses stood at Rs.15,486 crore, while Operating Expenses were Rs.9,420 crore, resulting in Total Expenditure (excluding provisions and contingencies) of Rs.24,906 crore.

The Bank's Net Profit increased to Rs.9,513 crore for FY 2025-26, registering a robust growth of 27% over FY 2024-25.

The Earnings per Share (EPS) for the year stood at Rs.8.85. The Book Value per Share (excluding Revaluation Reserve, Foreign Currency Translation Reserve, intangible assets and Deferred Tax Asset) was Rs.51.85 as on March 31,2026.

Note : None of the above subsidiaries have any subsidiary.

There were no material changes and commitments affecting the financial position of the Bank, which occurred between the end of the financial year, i.e. March 31,2026 and the date of the Directors' Report, i.e., May 16, 2026.

In accordance with Section 143(3) (i) of the Companies Act 2013, the report of the Statutory Auditors is required to state whether the Bank has adequate Internal Financial Controls (IFCs) system in place in the context of the financial statements and the operating effectiveness of such controls. The IFCs are as referred to in Section 143(3) (i) of the Companies Act, relating to Internal Financial Controls over Financial Reporting (IFCO- FR). The Bank's Management is responsible for establishing and maintaining internal financial controls based on the Internal Control over Financial Reporting criteria established by the Bank considering the essential components of internal control stated in the Guidance Note on Audit of IFCO-FR issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Bank's policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records and timely preparation of reliable financial information, as required under the Companies Act, 2013, the Banking Regulation Act, 1949 and the guidelines issued by the RBI. The Bank has put in place an IFCO-FR framework for evaluation of the existing internal financial controls system and appointed a consultant for validating the compliances with respect to documentation, certification, reporting process of the controls across all business verticals/ departments and ascertaining the adequacy and effectiveness of the controls in the Bank with respect to financial reporting in all material respects. During FY 2025-26, the consultant has submitted the Internal Compliance Certificate for the quarters ended June 2025, September 2025, December 2025 and March 2026 after carrying out the testing and validation of all the underlying processes as per the Bank's IFCO-FR framework.

There have been no significant changes in the Bank's key financial ratios in FY 2025-26 as compared to the previous financial year.

In adherence to the Pillar 1 guidelines of the RBI under Basel III framework, your Bank computes regulatory capital requirement for credit, market and operational risks on a monthly basis. Banks in India are also required to maintain the Capital Conservation Buffer (CCB) of 2.50%. Your Bank also keeps a close watch on the movement of Capital to Risk (Weighted) Assets Ratio (CRAR) on a monthly basis. As on March 31, 2026, the Bank's Total Capital + CCB stood at 26.65%, significantly above the regulatory minimum requirement of 11.50%. Your Bank's Common Equity Tier 1 (CET1) + CCB ratio was at 25.56% as against the regulatory requirement of 8.00%. Your Bank's Tier 1 + CCB ratio stood at 25.56% as on March 31, 2026 as against the regulatory requirement of 9.50%. Your Bank's Leverage Ratio as on March 31, 2026 was 10.51% as against the minimum regulatory requirement of 3.50%.

During the year, your Bank's overarching business strategy remained focussed on achieving sustainable growth through business diversification, customer-centric initiatives, enhancement of digital capabilities, robust risk management, strengthening of operational resilience, among others. Your Bank continued to build a well-balanced business mix by deepening its presence across retail, agriculture, MSME and corporate customer segments, while progressively improving portfolio granularity and earnings stability.

To further expand its reach across emerging markets and enhance service accessibility, your Bank pursued calibrated network expansion supported by improved geographic coverage and enhanced digital distribution channels. In response to the evolving business environment and changing customer preferences, the Bank continued to introduce deposit and loan products with enhanced features and end-to-end digital journeys to better serve the diverse needs of its customer base. While strengthening its granular, low-cost deposit base, comprising Current Account and Savings Account (CASA) deposits, your Bank continued to expand its retail term deposit portfolio to mitigate concentration risk and support sustainable balance-sheet growth.

Aligned with its objective of achieving growth through a granular and well-diversified asset book, your Bank continued to expand its presence in the retail, agriculture and MSME segments. Simultaneously, your Bank strategically expanded its corporate loan portfolio through a prudent mix of fund-based and non-fund-based exposures, with a focussed lending towards well-rated corporates in high-growth sectors. The Bank also leveraged its dedicated Project Appraisal Cell for the evaluation of greenfield and brownfield corporate projects, thereby supporting fee-based income growth. While pursuing loan book expansion, your Bank concurrently strengthened its asset quality and risk management framework through the deployment of analytics-driven early warning systems, enhanced credit governance, improved appraisal processes and proactive recovery strategies across legal, digital and negotiated channels.

Your Bank continued its concerted efforts to deepen relationships with existing customers while scaling new customer acquisition. Your Bank has been working towards strengthening its relationship management through customised value propositions, personalised services and integrated engagement supported by data analytics and Customer Relationship Management (CRM) driven insights. Your Bank's enhanced focus on digitalisation further reinforced these initiatives through the scaling of end-to-end digital journeys, seamless mobile and internet banking platforms and an expanding ecosystem of fintech partnerships, resulting in improved customer experiences and reduced branch-level operational intensity.

Your Bank also remained committed to building a future-ready workforce through comprehensive learning and development programmes aimed at enhancing role-based skills and leadership capabilities, structured career progression framework and performance-linked incentives. To reinforce financial soundness, operational integrity and regulatory alignment, bank-wide initiatives were undertaken to embed a strong risk and compliance culture, ensuring consistent adoption of best practices in day-to-day activities to maintain the stakeholder trust and create value over the longer-term.

The Bank's commitment to maintaining the highest standards of corporate governance and ethical conduct remains fundamental to preserving its brand legacy and creating long-term stakeholder value. By upholding transparency and fairness in all aspects of its operations, the Bank has reinforced stakeholder confidence and strengthened its brand identity as a trusted and preferred financial institution. These core brand values, reflected across the Bank's strategic priorities, serve as a strong foundation for the Bank to navigate a rapidly evolving financial landscape resiliently while advancing its long-term objective of becoming a more competitive, customer-centric and future-ready bank.

Your Bank adopted a customer-first strategy, aligning product offerings, service delivery, digital initiatives and risk management framework to deliver consistent, trusted and differentiated customer experiences with appropriate safeguards. Your Bank engaged with its customers through a hybrid delivery model, supported by a network of over 2,243 physical banking outlets (including 2,174 branches and 69 fixed Business Correspondent outlets known as ‘IDBI SAMEEP') and 3,011 ATMs as on March 31, 2026. The physical touchpoints of your Bank were seamlessly complemented by scalable digital channels to cater to evolving customer preferences while ensuring accessible, convenient, consistent and secured service delivery. Digital transformation remained a key priority for your Bank with focus on improved customer engagement driven by seamless customer experiences. Your Bank broadened its digital offerings through enhanced product capabilities and seamless omni-channel engagement, enabling customers to access services easily across mobile, web and other digital touchpoints.

During the year, your Bank continued to strengthen its retail banking portfolio through a customer-centric approach, catering to the banking and financial needs of its diverse customer base. The Bank focussed on strengthening its deposit base through a diversified product suite, improving customer acquisition and engagement and leveraging digital and analytical capabilities. The Bank also served its NRI customers through a comprehensive range of deposit, remittance, investment and loan solutions alongside ongoing process improvements. Your Bank remained focussed on building a customer-centric retail credit portfolio, supported by a well-diversified mix of loan products aligned with customer life-cycle needs. Furthermore, increased use of digital loan processing, disciplined credit underwriting standards and proactive loan portfolio monitoring helped to improve turnaround times and to enhance customer experience while ensuring diligent credit assessment to preserve asset quality.

Your Bank remained focussed on advancing its Priority Sector Lending (PSL) and financial inclusion portfolio, supporting broader economic development in line with the regulatory requirement and national agenda of ensuring inclusive growth. The Bank strengthened its presence in agriculture and MSME financing through specialised branches, IDBI SAMEEP outlets and an expanded Business Correspondent (BC) network. The Bank further advanced its financial inclusion agenda by focussing on higher enrolments under Pradhan Mantri Jan Dhan Yojana (PMJDY) and other social security schemes. Concerted efforts were undertaken to strengthen the last-mile delivery through its Business Correspondents (BCs), alongside focussed capacity-building for the BCs. The Bank also continued to focus on financial literacy initiatives and livelihood development to ensure meaningful financial inclusion and to drive holistic socio-economic transformation in the lives of underprivileged sections of the society. These initiatives enhanced access to formal banking services, supported inclusive growth and thus, contributed to a strong foundation for sustainable and long-term financial empowerment of the rural and underserved segments.

In corporate banking, your Bank pursued a calibrated, capital-light growth strategy focussed on better-rated clients, higher fee income, improved limit utilisation and extensive digitisation. Your Bank offered a comprehensive suite of fund-based and non-fund based products, delivered through collaboration across its business and support functions to provide holistic and customised solutions to the corporate clients. To further strengthen its growth and coverage, your Bank has established a specialised Corporate Relationships and New Business Acquisition Group (CRBAG) to source new relationships and expand transaction banking. Additionally, your Bank has a dedicated Project Appraisal Cell (PAC) to strengthen its credit assessment for project financing.

The Bank continued to accord high priority to asset quality, strengthened by an integrated and proactive framework for credit monitoring, collections and recovery across corporate and retail portfolios. Various tools such as Loan Review Mechanisms (LRM), Early Warning Signals (EWS) and SAJAG enabled early identification of stress, while a dedicated department, viz. Credit Monitoring Group, Retail Collection and Retail Recovery, ensured timely intervention to contain delinquencies and prevent slippages. Your Bank's recovery efforts have been strengthened through Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI), auctions, One Time Settlement (OTS) schemes, Lok Adalats and legal processes under Insolvency and Bankruptcy Code (IBC). Together, these measures have aided in minimising fresh NPAs, accelerate upgradation and recoveries and improve provision coverage, that ensured a steady improvement in the Bank's overall asset quality.

The Bank's trade finance function provided end-to-end domestic and cross-border solutions through centralised processing, digital platforms and a global correspondent banking network, supported by robust governance and Anti-Money Laundering (AML)/ Know Your Customer (KYC)/ Combating of Financing of Terrorism (CFT) controls.

As an accredited agency bank, your Bank undertakes a broad range of government and institutional banking activities by facilitating seamless receipt, payment and pension transactions through its branch network and digital channels, further strengthened by technology-enabled platforms and process integrations for enhanced service delivery.

Additionally, the Bank also continued to strengthen its Cash Management Services by offering secure, scalable and digitally driven collection, payment, escrow and liquidity solutions, supported by ongoing platform upgrades and product enhancements to improve efficiency, compliance and customer convenience.

The treasury of the Bank operates as an integrated function across capital markets, supporting effective balance sheet and liquidity management in compliance with the regulatory requirements. During the year, your Bank actively participated in primary and secondary markets, including as a Primary Dealer in government securities and utilised the monetary tools deployed by RBI and market instruments for efficient liquidity management. The Treasury also provided Constituent Subsidiary General Ledger (CSGL) and retail Government Securities (G-Sec) services, while its forex and derivatives desks offered pricing, market-making and hedging solutions, enhancing efficiency, market presence and profitability.

Your Bank has a robust and integrated risk management framework that proactively identifies, measures and monitors risks across all activities. As on March 31, 2026, your Bank remained fully compliant with regulatory and Basel III requirements, supported by strong capital and liquidity buffers, regular stress testing and transparent disclosures. Continuous enhancements in technology, business continuity, cyber security and data protection, along with increasing integration of Environmental, Social and Governance (ESG) and climate risk considerations with business objectives, collectively strengthened the Bank's resilience, governance standards and long-term sustainability.

The initiatives across its business segments were supported by ongoing technology upgrades and digital modernisation, resulting in improved operational efficiency, enhanced resilience, scalable operations and superior customer experience. Additionally, your Bank strengthened its data privacy and governance frameworks in line with evolving regulations, reinforcing digital maturity and readiness for future growth. A strong convergence of business strategy and technology transformation improved customer experience and operational resilience, while equipping the Bank to scale sustainably, navigate emerging risks and build a future-ready banking ecosystem.

The detailed description of the Bank's initiatives undertaken during the year is outlined in the Management Discussion and Analysis section of the Annual Report.

The COVID-19 virus, a global pandemic, affected the world's economy over the last couple of years. The extent to which COVID-19 pandemic will further impact the Bank's operations will depend on ongoing as well as future developments. The management of the Bank is closely monitoring the developments in this regard.

Your Bank's Board of Directors is broad-based and its constitution is governed by the provisions of the Banking Regulation Act, 1949, the Companies Act, 2013, the Reserve Bank of India (RBI) guidelines, the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI (LODR) Regulations) and the Articles of Association of the Bank. The Board functions directly as well as through various Board-level committees constituted to provide focussed governance in the important functional areas of the Bank. In terms of the Bank's Articles of Association, the Board of Directors shall comprise not less than three and not more than fifteen members.

As on March 31, 2026, the Board comprised eleven Directors, viz. Shri Rakesh Sharma, Managing Director & Chief Executive Officer (MD & CEO), Shri Jayakumar S. Pillai, Deputy Managing Director (DMD) and Shri Sumit Phakka, Deputy Managing Director (DMD), as Whole Time Directors; Shri Manoj Sahay, Government Nominee Director and Shri Sat Pal Bhanoo, Life Insurance Corporation of India (LIC) Nominee Director, as Non-Executive Directors; and Shri Samaresh Parida, Shri N. Jambunathan, Shri Deepak Singhal, Shri Sanjay Gokuldas Kallapur, Smt. P. V. Bharathi and Shri Ajay Prakash Sawhney as Independent Directors. The strength of 11 (eleven) Directors on the Bank's Board as on March 31,2026 met the requirement provided under Article 114(a) of the Articles of Association of the Bank.

As on March 31,2026, a total of thirteen Board Committees have been constituted to oversee various functional areas of your Bank's business and operations. The Board Committees are Audit Committee of the Board, Executive Committee, Nomination & Remuneration Committee, Stakeholders' Relationship Committee, HR Steering Committee, Special Committee of the Board for Monitoring & Follow-up of cases of Frauds, Recovery Review Committee, Risk Management Committee, CSR & ESG Committee, Customer Service Committee, Wilful Defaulters' Review Committee-I, Information Technology Strategy Committee and Those Charged with Governance Committee.

Your Bank is committed to adopting the best corporate governance practices. The Bank's commitment reflects its belief that effective corporate governance, in addition to being a requirement for statutory and regulatory compliance, also fosters excellence in transparent and ethical conduct, leading to enhanced value for all the stakeholders. The Bank's corporate governance practices are detailed in this Annual Report as a separate section, viz. the Corporate Governance Report.

The Bank has been publishing its Business Responsibility and Sustainability Report (BRSR) since FY 2022-23 in compliance with the SEBI norms. The Bank has progressively strengthened its disclosures by expanding the reporting boundaries under the environmental disclosures as well as undertaking reasonable assurance for BRSR Core with effect from FY 2023-24. The BRSR disclosures capture the Bank's performance across Environmental, Social and Governance (ESG) dimensions. The Bank documents the environmental impact of its operations in terms of energy consumption, water consumption, waste management, Greenhouse Gas (GHG) emissions, etc. as well as reports on the measures taken to minimise the adverse impact, if any. The Bank's disclosure on social parameters encompasses, inter alia, workforce diversity in terms of gender as well as employees with disabilities, employee turnover rates, details of remuneration in terms of rank, gender and region, occupational health and safety standards, training imparted, etc. The Bank's disclosures with regard to governance-related aspects cover diversity in composition of the Board of Directors and senior management, statutory/ regulatory penalties/ actions, anti-corruption and anti-bribery mechanism, whistleblower mechanism, mechanism to prevent conflict of interest, data privacy and cybersecurity, among other disclosures. The Bank's BRSR for FY 2025-26 has been hosted on its website fhttps://www.idbi.bank.in/business-responsibilitv-report. aspx).

The statement containing particulars of employees as required under Section 197(12) of the Companies Act, 2013, read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is given as Annexure to this report. In terms of Section 136(1) of the Companies Act, 2013, the Annual Report and the financial statements are being sent to the members excluding the aforesaid Annexure. The Annexure is available for inspection and any member or shareholder interested in obtaining a copy of the Annexure may write to the Company Secretary of the Bank at idbiequity@idbi.co.in.

As part of its commitment towards energy conservation and environmental sustainability, your Bank has undertaken a range of initiatives to reduce energy consumption across its operations. At the Bank's Head Office in Mumbai, these energy-saving measures included the commissioning of new transformer, replacement of Air Handling Units (AHU) on select floors, conversion of lighting system to energy-efficient LED fixtures. In addition, the Bank has consistently maintained the power factor close to unity over the past five years as a high-tension (HT) consumer with a 4.5 Mega Volt-Ampere (MVA) electric installation. These initiatives, combined with the concessional electricity tariff benefits extended by the Government of Maharashtra under green building norms, have resulted in a reduction in average monthly power costs during FY 2025-26. Further, the installation of 40 kilowatt peak (kWp) rooftop solar plant at its Head Office in Mumbai is expected, upon commissioning, to yield additional saving. Additionally, electrical audits were conducted across its branches and offices on a pan-India basis in FY 2025-26 to identify further opportunities for efficiency enhancement.

The Bank has also expanded the adoption of renewable energy across its locations by installing solar plants of 10 kWp at the residential flats in Idgah Hills and Arera Colony in Bhopal and a 20 kWp solar plant at Kolhapur Regional Office building. Installation of solar power plants was underway at select offices located in Ahmedabad (40 kWp), Hyderabad (65 kWp) and Chandigarh (60 kWp). The Bank continues to explore the possibility of installing solar plants at additional locations based on feasibility evaluations.

Energy-efficient practices have been progressively embedded across branches and offices through the adoption of energy-saving light fixtures and installation of lighting sensors in cabins to enable automatic switch-off during periods of non-occupancy. Branches and offices layouts are designed, wherever feasible, to maximise the use of natural daylight. Employees are sensitised to adopt energy conservation practices and encouraged to switch-off electrical equipment such as photocopier, televisions, printer, shredding machines etc., when not in use.

Further, branches and offices have been advised to operate air-conditioners at an optimal temperature of 25?C - 26?C. Energy-efficient inverter type and Variable Refrigerant Flow (VRF) air conditioners, wherever feasible, are being adopted in select new branches and Zonal Offices, while Automatic Power Factor Correction (APFC) panels are deployed in larger branches and zonal offices to maintain the power factor close to unity. At the Bank's Head Office in Mumbai, conventional package AC units have been replaced with energy-efficient alternatives.

Timely electrical repairs and scheduled preventive maintenance of air conditioning systems are carried out to minimise energy losses and ensure optimal efficiency.

Your Bank also promotes the refurbishment and reuse of furniture, wherever possible, to reduce carbon emission associated with disposal and replacement. Water conservation is encouraged through the use of treated water from Sewage Treatment Plant (STP) for gardening and air conditioning condenser applications.

These initiatives underscores the Bank's continued commitment to energy conservation, environmental sustainability and responsible resource management.

During FY 2025-26, the Bank advanced its technology transformation roadmap with a strong focus on digital enablement, enhanced customer experience, operational efficiency and innovation. The year witnessed the execution of numerous technological initiatives encompassing both the implementation of new applications and upgrades to the existing systems across the digital channels and the enterprise-wide platforms. Few of the key milestones included rollout of an Omni-Channel Digital Platform, functional upgrades to the GO Mobile+ application, introduction of Society for Worldwide Interbank Financial Telecommunication - Global Payments Innovation (SWIFT GPI) based foreign exchange (FX) remittance tracking and expansion of WhatsApp-based enrolment for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY). Financial inclusion efforts were further strengthened through electronic Know Your Customer (eKYC)-based savings account opening via Business Correspondents, while field operations were digitised using Android-based Kiosk Banking System (KBS) applications supporting lead management, passbook printing and enhanced Aadhaar Enabled Payment System (AePS) controls. The Bank also upgraded its Central Bank Digital Currency (CBDC) platform to a value-based token with Programmable CBDC (P-CBDC) capabilities and launched new card offerings, including Visa Infinite, Mastercard Platinum and Braille Debit Cards. Collectively, these initiatives contributed to higher digital adoption, reflected in growth across overall digital and Unified Payments Interface (UPI) transactions during the year.

Alongside these initiatives, the Bank reinforced its enterprise systems and technology foundation through targeted automation, infrastructure modernisation and cyber security enhancements. Major initiatives included implementation of Identity and Access Management (IdAM), deployment of Integrated Audit Management System (AMS) and Integrated Procurement Management System (IPMS) and Application Programming Interface (API)-based integration of Cheque Truncation System (CTS) with the Core Banking System (CBS) to enable continuous cheque clearing. Fraud monitoring and regulatory compliance were augmented through Centralised Payment Fraud Information Registry (CPFIR) integration, solutions aligned with the RBI's ‘Project Finance Directions, 2025', enhancements to the Oracle Financial Services Analytical Applications (OFSAA) platform and Credit Information Company - Customer Relationship Management (CIC-CRM) integration. The Bank upgraded CBS hardware, expanded network capacity with dual connectivity across more than 98% of its branches, established public cloud landing zones, refreshed end-user computing infrastructure and enhanced cyber resilience through the rollout of an enterprise-wide Extended Detection and Response - Endpoint Detection and Response (XDR-EDR) platform. Tableau-based dashboards were initiated to support data-driven decision-making. Overall, the year reflected measurable progress in strengthening the Bank's digital capabilities, resilience and scalability, aligned with its strategic commitment to building a secure, inclusive and future-ready technology ecosystem.

During the year, the total foreign exchange earned by the Bank was Rs.947 crore (excluding foreign currency cash flows in derivatives and foreign currency exchange transactions) and the total foreign exchange outgo was Rs.701 crore towards the operating expenditure requirements.

The Board of Directors, hereby, declares and confirms that:

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

b. The Directors had selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of the profit and loss of the Bank for that period;

c. The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the Bank and for preventing and detecting fraud and other irregularities;

d. The Directors had prepared the annual accounts on a going concern basis;

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

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

The Bank recognises that a robust and structured annual performance evaluation of the Board is fundamental to strengthening governance standards and enhancing overall Board effectiveness. In line with this commitment and in compliance with the Companies Act, 2013 and SEBI (LODR) Regulations, the Board has institutionalised a formal annual performance evaluation framework. The Nomination and Remuneration Committee (NRC) functions as the nodal authority for this process and is responsible for reviewing and approving the evaluation criteria, framework and methodology. For the year under review, the NRC engaged an independent external partner to carry out a comprehensive annual evaluation of the Board, Board Committees, and individual Directors, including the MD & CEO and DMDs. This approach further strengthened the objectivity and credibility of the evaluation exercise.

The Bank's Policy on Performance Evaluation is available on the Bank's website (https://www.idbi.bank.in/pdf/Directors- Appointment-and-Evaluation-Policv.pdf).

In addition, a detailed disclosure relating to the Board Evaluation process for the year, including the methodology adopted, evaluation criteria and broad outcomes of the exercise, have been provided in the Report on Corporate Governance, which forms part of this Annual Report.

The Bank's Board of Directors gratefully acknowledged the guidance and support received from the Government of India, Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), all other statutory/ regulatory authorities and Life Insurance Corporation of India (LIC) for their valuable co-operation and guidance. The Board also acknowledges the support and co-operation extended by various State Governments, other banks/ financial institutions, multilateral institutions and international banks/ institutions. The Board is deeply grateful to its shareholders, customers, business partners and all other stakeholders for their unwavering support and continued confidence in the Bank. The Board appreciates the dedication and commitment demonstrated by its workforce and highly values their contribution towards the Bank's growth and success. The Board also places on record its appreciation for the consistent support and co-operation extended by the Bank's supply chain partners, including vendors and service providers, which has played an important role in ensuring efficient conduct of the Bank's operations.