Dear Stakeholders,

It is my utmost privilege to present the Annual Report for the Financial Year 2025-26 on behalf of the entire team. The Financial Year 2025-26 was marked by sustained business growth, improved asset quality and enhanced profitability.

PNB AT A GLANCE

(Amount in ' Crore)

Before we delve deeper into our Bank's financial and operational performance in Financial Year 2025-26, let us first discuss the global and domestic economic conditions which paved the way for the performance.

Global Economic growth for the year 2026 is projected to moderate to 3.1 per cent [As per IMF's World Economic Outlook April 2026], facing headwinds from geopolitical tensions in the Middle East, trade fragmentation, and elevated debt. Despite prevailing global uncertainties, India is expected to remain one of the fastest growing major economies for FY 2025-26, with GDP growth at 7.6 per cent as per National Statistical Organization (NSO). This expansion has been fueled by robust consumer spending, rising levels of investment in various sectors, continued policy support from the government, ongoing structural reforms that aim to improve efficiency & productivity, and favorable financial conditions such as low interest rates and sufficient liquidity.

In Banking sector, credit rose by 16.08 per cent while deposits increased by 13.47 per cent year-on-year as on 31 st March, 2026, as per data released by the Reserve Bank of India. Total deposits stood at '262.30 Lakh Crores, while Banking sector credit was at '213.61 Lakh Crores. Investments also increased by 4.7 per cent to '71.4 Lakh Crores as on 31 st March, 2026. Credit Growth was heavily supported by MSMEs and Retail segments, specifically gold loans and vehicle loans. Our Bank also delivered commendable growth during FY 2025-26.

During FY 2025-26, the Bank's business reached at '29.70 Lakh Crores with an increase of '2.87 Lakh Crores over the previous year. Gross Advances recorded double-digit growth of 12.7 per cent with Domestic Advances registering the growth of 11.9 per cent. As on 31 st March, 2026, Global Advances stood at '12.59 Lakh Crores while Global Deposits stood at '17.11 Lakh Crores.

Under Retail Segment [Excluding IBPC], Housing Loan, Vehicle Loan and Education

Loan exhibited the growth of 11.6 per cent, 35.1 per cent and 6.1 per cent respectively on year basis.

The Bank showed improvement in Asset Quality . It was achieved through adoption of robust recovery and enhanced underwriting standards. The Bank's GNPA per cent declined to 2.95 per cent as on 31 st March, 2026 from 3.95 per cent as on 31 st March, 2025. Net NPA per cent also went down to 0.29 per cent

The Bank continued to maintain strategic focus on Retail, Agriculture and MSME (RAM) segments during the year and this segment registered growth of 12.1 per cent.

as on 31 st March, 2026 from 0.40 per cent as on 31 st March, 2025. Provision Coverage Ratio including Technical Write Off (TWO) of the Bank improved to 97.14 per cent as on 31 st March, 2026 from 96.82 per cent as on 31 st March, 2025.

Demonstrating its continued commitment to technological advancement, the Bank achieved remarkable progress on the digital front by introducing cutting-edge products, processes, and portals. These advancements significantly enhanced customer experience and operational efficiency , positioning the Bank as a leading entity in digital transformation within the banking industry.

The Bank also remained front runner in adopting best of HR practices. Apart from digital thrust, development under Human Resource Transformation remained at the forefront and UDAAN project continued to evolve with capacity building and coming out with digital Performance management system.

"Against this backdrop, your Board of Directors is pleased to present the Annual Report of the Bank for the year ended 31 st March, 2026 (FY 2025-26) along with its audited Annual Financial Statements".

I. FINANCIAL PERFORMANCE AS ON 31 ST

MARCH, 2026

1. Topline

a. Global Business stood at '29,69,685 Crores as on 31 st March, 2026 vis-a-vis '26,83,260 Crores as on 31 st March, 2025, registering year on year growth of 10.7 per cent.

b. Global Deposits stood at '17,11,126 Crores as on 31 st March, 2026 as against '15,66,623 Crores as on 31 st March, 2025, showing the year-on- year growth of 9.2 per cent.

c. CASA Deposits stood at '6,09,615 Crores as on 31 st March, 2026 as against '5,73,543 Crores as on

31 st March 2025, registering the year- on-year growth of 6.3 per cent.

i. Current Deposits stood at '79,294 Crores as on 31 st March 2026.

ii. Savings Deposits stood at '5,30,321 Crores as on 31 st March, 2026.

d. CASA Share stood at 37.0 per cent as on 31 st March, 2026

e. Global Advances stood at '12,58,559 Crores as on 31 st March, 2026 against '11,16,637 Crores as on 31 st March, 2025, recording the growth of 12.7 percent on year-on-year basis.

f. Retail Advances [Excluding IBPC] were at '2,51,729 Crores as on 31 st March, 2026 as against '2,13,037 Crores as on 31 st March, 2025, registering the year-on-year growth of 18.2 per cent.

g. Agriculture Advances were at '1,99,919 Crores as on 31 st March, 2026 as against '1,80,625 Crores as on 31 st March, 2025, showing the year- on-year growth of 10.7 per cent.

h. MSME Advances were at '1,95,027

Crores as on 31 st March, 2026 as against '1,62,693 Crores as on 31 st

March, 2025 showing the growth of 19.9 per cent.

i. Retail Agriculture MSME (RAM) Advances were at '6,75,725 Crores as on 31 st March, 2026 vis-a-vis '6,02,682 Crores as on 31 st March, 2025 showing year-on-year growth of 12.1 per cent.

j. Share of RAM w.r.t. Domestic Advances was at 56.6 per cent as on 31 st March, 2026 as against 56.5 per cent as on 31 st March, 2025.

2. Bottom Line

a. Net Interest Income was at '41,960 Crores in FY 2025-26 vis-a-vis '42,782 Crores in FY 2024-25. It was on account of the policy rate reduction during the year.

b. Operating Profit of the Bank was at '29,290 Crores in FY 2025-26 vis-a-vis '26,831 Crores in FY 2024-25 showing year on year growth of 9.2 per cent. In all the quarters of FY 2025-26, the Bank's operating profit remained more than '7,000 Crores and in Q4 FY 202526, Operating Profit touched '7,500 Crores.

c. Net Profit of the Bank was at '16,904 Crores in FY 2025-26 vis-a-vis '16,630 Crores in FY 2024-25.

3. Asset Quality

a. Gross NPA of the Bank stood at ' 37,124 Crores as on 31 st March, 2026, reducing from the level of '44,082 Crores as on 31 st March, 2025.

b. Gross NPA % exhibited decline of 100 bps from a level of 3.95 per cent as on 31 st March, 2025 and stood at 2.95 per cent on 31 st March, 2026.

c. Net NPA of the Bank reduced to '3,610 Crores as on 31 st March, 2026 from '4,291 Crores as on 31 st March, 2025.

d. Net NPA % declined by 11 bps from a level of 0.40 per cent as on 31 st March, 2025 and stood at 0.29 per cent as on 31 st March, 2026.

e. Provision Coverage Ratio (PCR) including TWO increased by 32 bps to 97.14 per cent as on 31 st March, 2026 as against 96.82 per cent as on 31 st March 2025.

f. Provision Coverage Ratio (PCR) excluding TWO increased by 1 bps to 90.28 per cent as on 31 st March, 2026 as against 90.27 per cent as on 31 st March 2025.

Slippage Ratio showed improvement from 0.73 per cent in FY 2024-25 to

0.60 per cent in FY 2025-26.

4. Key Ratios (Global)

a. Net Interest Margin stood at 2.57 per cent in FY 2025-26.

b. Cost of Deposits stood 5.16 per cent in FY 2025-26.

c. Yield on Advances stood at 7.80 per cent in FY 2025-26.

d. Yield on Investment stood at 6.87 per cent in FY 2025-26.

e. Return on Assets stood at 0.89 per cent in FY 2025-26.

5. Capital Position

The Capital Adequacy of the Bank improved during the financial year with an improvement in RWA and Profitability.

The Capital Adequacy Ratio of the Bank recorded increase of 73 bps to reach at 17.74 per cent, as of 31st March, 2026, with Common Equity Tier-1 (CET-1) at 13.62 per cent and AT-1 capital at 1.53 per cent.

II. OPERATIONAL HIGHLIGHTS

1. Brand Image: During FY 2025-26, the Bank enhanced brand identity by partnering with Ms. Harmanpreet Kaur, Indian Woman Cricketer and Captain of the winning squad of Women's One Day Cricket World Cup 2025 marking a historic first for the Bank with her engagement as Brand Ambassador.

2. Meeting Management Solution: The Bank introduced digital flow of agenda notes through Meeting Management Solution, thereby facilitating end-to-end paperless meetings.

3. ISO 9001:2015 Certification: ISO

9001:2015 standard is aimed to provide a standardized framework for a Quality Management System (QMS) that ensures organization is consistently delivering products and services meeting customer, statutory, and regulatory requirements

ISO Certification of ISO 9001:2015 was awarded to the various verticals of the Bank such as Board & Co-ordination Division, Stressed Asset Management Division, Digital Banking & Transformation Division, Finance & Accounts Division, Strategic Management & Economic Advisory Division, International Banking & Trade Finance Division, Human Resources & Training Division, Information Technology Division, Integrated Risk Management Division and Compliance.

4. Cyber Security: The Bank organized

Hackathon 2025 with I IT Kanpur, themed "Code Against Malware" underscoring the dedication of the Bank to innovation and prevention. It was aimed at proactively devising solutions to address emerging cyber threats. The Bank is the first Public Sector Bank to deploy a Next-Generation Security Operations Centre (NGSOC) powered by a unified Data Lake.

5. Sustainability Reporting: The Bank

published its inaugural Sustainability report 2025 on its website marking an important step in its Climate/ESG journey The Bank

Ms. Harmanpreet Kaur, Indian Cricketer and Captain of the winning squad of ODI Women Cricket World Cup was engaged as Brand Ambassador of the bank.

70

71

has set a Net Zero target year of FY2031 for Scope 1 and Scope 2 emissions, and a Net Zero target year of 2060 for Scope 1, Scope 2, and Scope 3 emissions.

6. Key Digital Initiatives & Achievements:

In FY 2025-26, the Bank continued its commitment towards digitalization by solidifying presence in the digital banking landscape. The Bank enhanced its Mobile Banking Services and Internet Banking Services, now offering more than 350 features. These improvements are designed to address a wide range of customer requirements and preferences, making banking more accessible, flexible, and user-friendly.

d. Enhanced KCC Review, Renewal & Drawing Power (DP) Enhancement:

Digital journey with revised limits up to '10.00 Lakh.

e. e-PM SVANidhi 2.0: Digital on-boarding and sanction journey launched under the revamped scheme.

f. Digi Surya Ghar: A digital lending journey launched to support loans under the PM Surya Ghar-Muft Bijli Yojana.

g. Self Help Group (SHG):

end digital ecosystem initiated streamlining SHG onboarding and accelerating formal credit linkage for enhanced financial inclusion.

Digital Lending Journeys for Customer Convenience

New digital lending journeys were introduced towards customer convenience. These initiatives streamlined the lending process, allowing customers to access credit facilities through digital channels efficiently and securely.

a. Digi Saarthi (Two-Wheeler Loan): A fully digital journey for two-wheeler loans for eligible customers was introduced during the year.

b. Tractor Xpress: A digital tractor loan journey introduced for farmers with Funding up to 70% of tractor cost, with half yearly repayment.

c. Digi Dairy Kisan Credit Card (KCC): An

end-to-end digital journey launched to support dairy farmers.

During FY 2025-26, the Bank's efforts continued to further strengthen cyber security. The Bank became the 1 st Public Sector Bank (PSB) to move its corporate website to the "bank.in" domain, to boost cybersecurity, prevent fraud and build greater trust.

h. e-LAS: A fully digital instant Loan Against Securities (LAS) journey was made live.

i. Digi Shreshtha: A digital lending journey for women entrepreneurs under the "Lakhpati Didi" initiative made live.

WhatsApp Banking

To cater to the evolving needs of tech-savvy customers, Bank's WhatsApp Banking services now have more than 90 services, among the best across banks. During the year, several major new functionalities were introduced through WhatsApp Banking:

a. KYC updation through WhatsApp Banking

b. Loan account summary and account

statements 7.

c. Debit card related services and a.

customer feedback capture

d. Expansion of multilingual support Gen AI Initiatives

With the focus on innovation and future ready banking, the Bank undertook several Gen Artificial Intelligence (AI) initiatives b .

include:

a. Launch of AI powered customer chatbot "PIHU" , provid ing information and selected servicebased responses across digital channel.

c.

Hi, I am PIHU, your friendly Al-powered banking assistant!

b. Implementation of GenAI based tools for credit note generation and sales support.

c. Introduction of AI-enabled employee chatbot "RAHEE" for

circulars and policy information

d. Initiation of advanced AI use cases to enhance customer onboarding, service delivery and operational efficiency.

Compliance Culture

Compliance is the collective responsibility of organization as a whole. The Compliance Function activities are managed by dedicated officials at Head Office, Zonal Compliance Officers at Zonal Offices and Circle Compliance Officers at Circle Offices.

sDQI: The Compliance Function has

undertaken several proactive measures to strengthen data quality, resulting in notable progress in the RBI's Supervisory Data Quality Index (sDQI) in terms of strong commitment to robust data integrity, disciplined compliance practices, and adherence to regulatory expectations.

The consistent improvement in the Bank's Supervisory Rating is primarily attributable to its proactive and preventive compliance culture which emphasizes early identification and mitigation of risks. Building on this foundation, the Bank instituted several initiatives such as regular compliance assessments of regulatory and internal guidelines, strengthened monitoring mechanisms, etc.

8. Key Structural Transformations

a. Start-up Branch: The Bank to support the Startup India initiative, dedicated scheme for startups was launched and first startup branch in Bhikaiji Cama Place, New Delhi, was opened in August 2025, offering tailored banking solutions for entrepreneurs.

b. Centralized Credit Guarantee Cell (CCGC): e.

Centralized Credit Guarantee Cell (CCGC) has been set up under the MSME & Mid Corporate Credit Division at Head Office to centrally manage all aspects of credit guarantees including Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), National Credit Guarantee Trustee Company (NCTGC) and other schemes for Micro & Small Enterprises (MSEs).

c. Energy Efficiency Financing Cell (E-cell):

Energy Efficiency Financing Cell (E-Cell) has been established at Head Office, MSME & Mid Corporate Credit (MCC) Divisions

for handling various aspects of financing Energy Efficient projects of MSMEs.

d. Large Corporate Credit (LCC) Division: Large Corporate Credit (LCC) Division at Head Office was created to cater large corporate clients having exposure above '300 Crores, including group exposure above '600 Crores.

Mid Corporate Credit (MCC) Division: Mid Corporate Credit (MCC) segment has been carved out from Corporate Credit Division at Head Office to cater Mid Corporate segment client having exposure up to '300 Crores including group exposure up to '600 Crores and aligned with Head Office, MSME & MCC Division.

f. CMS & FSCM Marketing Segment: Cash Management Services (CMS) & Financial Supply Chain Management (FSCM) marketing segment has been set up at 15 identified Customer Acquisition Centres

(CACs)/Integrated Customer Acquisition Centres (i-CACs) for focused marketing and lead generation. This initiative aims to strengthen field level marketing efforts along with better sourcing and servicing of CMS & FSCM leads across high-potential areas.

g. Realignment of Government Business Vertical (GBV) with Customer Acquisition Centre (CAC) as a segment: To ensure effective & optimal utilization of resources and better synchronization at the field level, realignment of Government Business Vertical (GBV) with Customer Acquisition Centre (CAC) as Government Business Segment was implemented.

h. Trade Finance Cell: Inland Trade Finance (ILC&ILG) function was aligned with International Banking Division (IBD) rechristening IBD as International Banking & Trade Finance Division (IBTFD).

i. Reorganization of Zonal Offices and Circles: Restructuring of Hyderabad Zone with the creation of a new Bengaluru Zone and a new Mangaluru Circle (by carving out branches from Bengaluru and Hubli Circles), the reorganization of Bhopal Zone with a new Katni Circle (formed from Bhopal and Jabalpur Circles), and the reorganization of Raipur Zone with a new Hazaribagh Circle (carved out from Bokaro and Ranchi Circles) have been implemented.

j. Asset Recovery Monitoring Branches (ARMBs) and Stressed Asset Management (SAM) Branches: Under the new structure, General Banking Branches is handling NPA accounts with fund-based outstanding below '20 lakh, ARMBs are managing NPA accounts between '20 Lakh and '25 Crores including DRT/DRAT filed accounts (up to '25 Crores but excluding NCLT cases), and SAM Branches are overseeing NPA accounts above '25 Crores along with all NCLT admitted accounts.

k. Public Relations and Credit Card Division (PR&CCD) was established at Head Office for credit card operations, corporate communication, social media and digital marketing (including Website).

9. Project UDAAN- HR Transformation

Bank embarked upon a comprehensive Human Resources Transformation initiative, christened as Project "UDAAN", with the objective of strategically redesigning and optimizing HR processes, systems, and roles to align more closely with the Bank's long-term goals.

During FY 2025-26, the Bank sustained its focus on strengthening human capital and enhancing institutional effectiveness through a series of initiatives under this transformation agenda. The Bank's digital Performance Management System (PMS) framework was revamped, with the introduction of new parameters such as customer service, conduct risk, and compliance, thereby reinforcing fairness and accountability in performance evaluation.

a. Revamping and Strengthening the Performance Management Framework:

During FY 2025-26, the Bank undertook significant initiatives to strengthen its Performance Management System (PMS) framework, aimed at enhancing transparency, fairness, and accountability in performance evaluation.

b. Capability Assessment and Structured Skill Development:

Under Project "UDAAN," the Bankundertook a comprehensive skill assessment exercise covering officers across multiple scales and functional domains. This data-driven approach enabled the identification of skill gaps and prioritization of capacitybuilding requirements. These initiatives supported the development of future-

ready capabilities and strengthened role- specific expertise across the organization.

c. Strengthening Learning Effectiveness and Continuous Development:

During FY 2025-26, the Bank reinforced its learning governance framework through the adoption of structured training impact assessment mechanisms. Training programs were evaluated across multiple dimensions, including participant feedback, learning outcomes, behavioral change, and linkage with performance indicators, thereby enabling continuous refinement and effectiveness of learning initiatives.

d. Leadership Development and Institutional Collaboration:

During FY 2025-26, the Bank continued to invest in strengthening leadership capabilities through structured development programs for senior and feeder-level officers. The Leadership Development Programme (LDP) 3.0 was conducted for officers in Scale V and above, with a focus on enhancing strategic, managerial, and leadership competencies aligned with higher responsibilities. In addition, a refresher program, Udaan Elevate 2.0, was organized for participants of LDP 2.0, reinforcing key learnings and supporting sustained leadership growth.

e. Promoting Inclusivity, Diversity, and Empowerment:

During FY 2025-26, the Bank reinforced its commitment to inclusivity and diversity through structured empowerment programs. The Unnati Path initiative was launched as a pan-Bank program to promote women's leadership development, focusing on confidence building, leadership readiness, and career progression.

In addition, specialized training programs for Divyangjan officers were introduced

to support capability enhancement, confidence building, and career progression.

f. Academic Engagements and External Expertise:

During FY 2025-26, the Bank strengthened the quality and relevance of its learning interventions through active engagement with external experts and academic institutions. Experienced professionals were associated with training and mentoring initiatives, providing practical insights and contemporary perspectives that enriched the overall learning ecosystem.

g. Analytics Driven and Digital HR Initiatives:

The Bank strengthened its people's analytics capabilities through the establishment of a dedicated analytics function. This initiative enabled structured analysis of HR data, generation of workforce insights, and informed decision-making across multiple levels of the organization.

III. RATING:

IV. DIVIDEND

The Board of Directors of the Bank has recommended a dividend of '3/- per equity share (150 per cent) of face value of '2/- each for FY 2025-26, subject to approval of the shareholders at the 25 th Annual General Meeting of the Bank.

V. ASSET QUALITY

Focus on asset quality continues to be one of the key priorities for the Bank. The position of recovery & upgradation,

through different methods is enumerated as under:

1. Recovery & Upgradation: Total Recovery stood at '15,501 Crores for FY 2025-26. Out of this, total cash recovery stood at '11,990 Crores for FY 2025-26. Recovery in Written Off Accounts and Recorded Interest for FY 2025-26 stood at '7,740 Crores.

2. NCLT & Liquidation Cell: This Cell

was created to deal exclusively with restructuring/resolution of NPA accounts and recovery in National Company Law Tribunal (NCLT) cases. During FY 2025-26, '1,868 Crores recovered in NPA accounts under Corporate Insolvency Resolution Process(CIRP).

3. Mega e-Auctions: During FY 2025-26, 9,681 properties were uploaded on e-Bikray portal. Out of which, 1,620 properties were auctioned successfully.

4. Sale of Assets to Asset Reconstruction Company (ARC)/ National Asset Reconstruction Company Ltd (NARCL):

During FY 2025-26, 7 accounts were sold to NARCL at total sale consideration of '1038 Crores out of which cash component is '156 Crores and Security Receipt component is '882 Crores.

During the same period, 13 accounts were sold to ARC at total sale consideration of '410 Crores on cash basis.

5. Segment wise NPAs

a. In Retail Segment: GNPA per cent declined by 55 bps from 1.28 per cent as on 31 st March, 2025 to 0.73 per cent as on 31 st March, 2026.

b. In Agriculture , GNPA per cent declined by 190 bps from 10.97 per cent as on 31 st March, 2025 to 9.07 per cent as on 31 st March, 2026.

c. In MSME segment, GNPA per cent declined by 319 bps from 11.65 per cent as on 31 st March, 2025 to 8.46 per cent as on 31 st March, 2026

6. Industry wise NPAs: Decline in GNPA percentage was observed in all the industries by 142 bps to 2.68 per cent as on 31 st March, 2026 from 4.10 per cent as on 31 st March, 2025.

7. Initiatives taken to improve Asset Quality during FY 2025-26

a. Vertical Revamping: Rationalized recovery vertical with set up of Asset Recovery Management (ARMB) branches and Stressed Asset Management branches for focused NPA recovery management.

Litigation Management Cell at Head Office has been constituted for effective management of all NPA litigation

b. National Company Law Tribunal (NCLT):

Set up of NCLT monitoring cell for actively engaging with liquidator and to ensure regular follow-up for recovery in cases that have been stuck for long.

c. Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI): Focus on obtaining physical possession of IPs through focused monitoring of DM applied cases to double the percentage of IPs under physical possession

d. DRT: Special campaign for DRT decreed accounts.

e. Active participation in Lok Adalats and timely execution of small cases where normal resolution is not forthcoming.

8. Further various digital initiatives taken during FY 2025-26 are as under:

a. Outsourcing agencies module on SAMARTH portal automated for End to

End (E2E) onboarding and management of agencies.

is delivering enhanced convenience and seamless experience for its customers.

b. Centralized repository of BC Agents & Recovery agencies maintained and used for follow-ups

c. Allocation of NPA accounts to BC Agents and Recovery Agents (via., Recovery Agencies) with the help of SAMARTH portal with proper account allocation messages sent frequently.

d. Express OTS/Special OTS with targets of small segment NPAs in Agri & MSME with third-party support & tech advancements.

e. All OTS proposals are routed through SAMARTH portal with end-to-end processing, post facto scrutiny, success/fail marking and reimbursement of revenue loss.

f. Leveraging SARFAESI Module on SAMARTH portal for time-bound symbolic/ physical possession and auction of the property.

g. New e-auction platform BAANKNET with advanced integrations such as KYC, payment gateways, bank-verified property titles etc., to be effectively utilized for sale of NPA properties.

VI. GROWING DIGITALISATION

The integration of cutting-edge technology with banking services has transformed the Bank's operations. By leveraging Artificial Intelligence (AI) and analytics, the Bank

Apart from the various key digital initiatives mentioned in the earlier part, the Bank during FY 2025-26, upgraded its digital facilities, introduced various new features and added new digital products in day- to-day banking operations with the aim of serving the customers with ease and convenience. These initiatives are enumerated as under:

1. Customized Account Number Facility:

Customized A/c number facility to CASA Customer facilitates customers to select a personalized saving or current account number based on significant dates, lucky numbers or familiar patterns.

2. Digitalization of Multicurrency World Travel Card (MCWTC) in IBS and MBS:

Presently, services for this product are being rendered to customers through branches only. The Bank, as part of EASE 7.0 agenda, has made digitalization of MCWTC, i.e., MCWTC issuance, loading, balance inquiry and addition of currencies have been facilitated through Internet Banking and Mobile Banking Solutions since 2nd January, 2026.

3. Addition of 6 New currencies and other changes in Multicurrency World travel prepaid card: PNB Multi-Currency World Travel Card (MCWTC) is now live with enhanced currency coverage. Customers can now Issue, load and add new wallets at branches in 12 currencies USD, EUR, GBP, AED, SGD, JPY, HKD, SEK, AUD, NZD, CHF and CAD also using retail IBS from home in 6 currencies USD, GBP, EUR, CAD, AED and SGD.

4. Changes under Indo Nepal Remittance Scheme: Customizations have been done in the INREMIT facility during FY 202526 such as Purpose code restriction to non-AD branches, SMS to remitter when remittance reaches Nepal, SMS to remitter

in case of returned remittance, Validation check of 10 characters in mobile number, Status updation in CBS as Pending/ Paid/ Returned, AML-API integration, Updation of new opened branches in Indo Nepal portal and Pop-up in case of payout mode selected as cash.

5. Aadhaar Data Vault (ADV) Implementation:

To securely store Aadhaar numbers and related identifiers in compliance with UIDAI Aadhaar Data Vault Guidelines, ensuring no clear Aadhaar numbers are stored or used across applications outside the vault, ADV has been implemented in PNB and sponsored Regional Rural Banks (RRBs).

6. Physical outward Mandate registration facility has been enabled in all branches/ Regional Collection Centers (RCC) through any scanner in outward NACH and mandate management portal to provide the solution for mandate scanning through National Automated Clearing House. (NACH) outward mandate management portal itself with any scanner which is available in Branch office.

7. API integration of CBS with TReDS authorized platforms for Inland TReDS bills module: TReDS platform is an online platform for financing factoring of trade receivables of MSME sellers against corporate and other buyers including Government Departments and PSUs through multiple financiers. This has led to smoothening of operational process of discounting bills.

8. Fixed Deposits (FD) and Recurring Deposits (RD) account opening at BC Location in Punjab Gramin Bank (PGB), Himachal Pradesh Gramin Bank (HPGB) and Haryana Gramin Bank (HGB): Bank launched FD and RD account opening at BC Location in Punjab Gramin Bank (PGB), Himachal Pradesh Gramin Bank (HPGB) and Haryana Gramin Bank (HGB).

9. E-mandate in NACH System registration in NRENRO Accounts: Customization in E-Mandate application to allow mandate registration in NRE/ NRO accounts.

10. Digital Onboarding of BC Agents:

Development of BC onboarding system in existing KBS Solution which facilitates a branchless banking model. It leverages banks to turn local shopkeepers and individuals into certified banking touchpoints in minutes.

11. BASE- RRB: I Bhaarat

Aadhaar Seeding Enabler (BASE) in RRBs. BASE is a self-service digital platform launched by the NPCI for RRBs; BASE modernizes how customers manage Aadhar linking for Direct Benefit Transfer (DBT) by removing the need for physical branch visits.

VII. ANALYTICS CENTRE OF EXCELLENCE (ACOE)

The Analytics Centre of Excellence (ACoE) is a strategic vertical dedicated to enhancing the Bank's data capabilities through advanced dashboards, reporting, MIS support, and AI/ML-driven solutions. By spearheading digital transformation and data-led decision-making, the ACoE serves as a cornerstone for innovation, analytics and regulatory compliance. Beyond its core analytical functions, the unit manages critical applications and oversees high- stakes data submissions, including:

- Credit Bureaus & Registries: Credit

Information Companies (CIC) Module (Bureau One), Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI), and National E-Governance Services Limited. (NeSL).

- Regulatory Frameworks: Risk Based

Supervision (RBS), Centralised Information Management System (CIMS), and Account Aggregator ecosystems.

Total Digital Transactions in Crore

- Internal Platforms: PNB 360 dashboard, Enterprise-Wide Data Warehouse (EDW), and digital journey funnels.

1. New Initiatives: The ACoE division

spearheaded the Bank's digital-first agenda through mission-critical infrastructure transformation:

a. EDW Infrastructure Modernization:

Successfully completed the migration of the Enterprise Data Warehouse (EDW) from the legacy IIAS system (IBM Integrated Analytics System) to the IBM Power10 (IBM P10) platform. This complex transition involved 332 TB of data across 39,794 tables, establishing a cloud-ready, containerized foundation. The new architecture incorporates 256-bit encryption, ensuring industry-leading security standards and scalability for future AI-driven requirements.

b. Customized Institutional Dashboards:

Developed localized, entity- specific MIS Dashboards for high- profile institutional clients, including various government departments. These dashboards facilitate real-time tracking of welfare fund flows and project financing.

2. New Products Launched: Advanced

analytics products were deployed to democratize data insights from the Head Office to the field level:

a. PNB PRISM Portal: Launched "Portfolio & Relationship Intelligence for Strategic Marketing" (PRISM) ,

an integrated analytics hub. It provides role-based intelligence through specialized modules such as FinTouch360+ (lead management), Business@PinCode (hyper-local

discovery), and the Perpetual Pipeline .

b. DTS/DSC Model: Introduced India's first in-house , data-driven Deposit

and Transaction Score (DTS)/Digital Scoring Card (DSC) framework. By categorizing customers into star ratings based on transactional behavior, the model empowers branches to execute hyper-personalized retention and cross-sell strategies.

c. AI/ML Churn Models: Deployed high- precision XGBoost-based attrition models (achieving 95%+ accuracy) for Savings and Current Accounts. These models provide proactive early warning signals, enabling field officers to mitigate customer churn effectively.

d. Transactional Contagion Risk

Management: Initiated a pilot

run using Network graph analysis to

map high-value NPA accounts. By identifying interconnected stressed clusters rather than isolated defaults, the Bank is moving toward a more sophisticated, network-based approach to proactive credit risk management.

VIII. BRANCH NETWORK

1. Domestic: As on 31 st March, 2026, the number of domestic branches was at 10,324. The population-group wise branches along-with the percentage share are given as under:

% share of Population group wise branches in Domestic Branches

2. International: As on 31 st March, 2026, the Bank has presence in 7 countries with 1 branch at Dubai, 1 branch at GIFT City Gujarat (caters to the international business of the bank), 2 Subsidiaries (London-UK and Bhutan),

1 Joint Venture (Nepal), 2 Representative Offices (Myanmar and Bangladesh).

IX. INTERNATIONAL BANKING

As on 31 st March, 2026, the Bank has 264 Authorized Dealer (AD) branches authorized to handle Foreign Exchange Business which are routing forex transactions through 4 Trade Finance Centers (TFCs) functioning at New Delhi, Chennai, Kolkata & Mumbai. TFCs are specialized for centralized handling of trade transactions and International Service branch specializes in handling all Inward remittances.

The Bank has 1 Exchange Bureau at Indira Gandhi International Airport to facilitate encashment of Foreign Exchange currency notes by foreign tourists/NRIs.

1. Domestic Business

The Bank registered a Foreign Exchange Business Turnover of '1,41,709 Crores (Exports and Imports together) for the FY 2025-26.

The Bank has an International Service Branch (ISB) functioning at New Delhi for handling Inward Remittances of the Bank as a whole. During FY 2025-26, the Bank handled remittance business of '80,550 Crores.

The Bank has Rupee Drawing Arrangements (RDA) with 7 exchange houses (4 in the Gulf, 1 each in Singapore, UK and Seychelles) to facilitate remittance from NRIs.

The Bank also has remittance arrangement under Money Transfer Service Scheme (MTSS) with Ria Money Transfer Services Pvt. Ltd.

There is a specialized NRI cell for augmenting NRI Business, resolution of complaints and Help Desk for NRI customers.

2. Overseas Business

Overseas business of the Bank stood at '1,27,676 Crores as on 31 st March, 2026 registering year-on-year growth of 20.6 per cent. The Bank has two international branches at DIFC Dubai & GIFT City Gandhinagar. International branches are focusing on High Quality Medium/ Long-term Assets to build a diversified loan portfolio with low Credit Risk Weight to improve profitability and remain sustainable.

Both international branches of the Bank are offering External Commercial Borrowing (ECB), Foreign Currency Term Loan (FCTL) and Trade Finance Products to Indian and Overseas customers.

3. Initiatives

a. Import of Gold by International Banking Units (IBU) Gift City through IIBX - The Bank has onboarded at India International Bullion Exchange IFSC Limited (IIBX) for Import of gold facility at IBU Gift City w.e.f. 1 st December, 2025 as Trading and Clearing member.

b. Facility for handling export documents without submission of Physical copy through Trade Finance Redefined Portal (IBPS): A facility has been provided to customers, wherein, in case of direct dispatch of export documents, submission of physical copy of documents has been exempted. Similar facility for processing of import documents and other remittances without submission of physical documents has also been introduced.

c. The new collateral free cover under ECGC's WT-ECIB product was introduced to support collateral free export credit lending by banks up to ' 10.00 Crores.

d. The Bank has Special Rupee Vostro Account (SRVA) accounts, 9 in Myanmar and 2 in Bangladesh.

e. Multicurrency World Travel Card: Bank has revamped the multicurrency World Travel Card at competitive exchange margin which offers a distinctive feature that allows multiple foreign currencies to be loaded onto a single card. The Bank currently provides this card in 12 foreign currencies viz. AED, AUD, CAD, CHF, EUR, GBP, HKD, JPY, SEK, SGD, NZD and USD. The exchange margin offered is among the most competitive in the industry.

f. Digitalization of MCWTC was made live on 2 nd January, 2026 through Internet Banking Solutions (IBS) and Mobile Banking wherein customers can request for card Issuance, card loading and addition of currency wallet through IBS.

g. Dedicated email IDs eximcust@pnb. bank.in and nri@pnb.bank.in have been created for the customers for raising their grievances directly with HO for necessary resolution with respect to Forex operations and NRI business respectively.

h. Centralization of Inland Trade Finance:

The Bank has successfully implemented the centralization of Inland Letter of Credit (ILC) across its branch network.

X. AGENCY BUSINESS

1. Life Insurance: The Bank solicits Life Insurance Business under Corporate Agency Agreement with the following Life Insurance companies:

a. PNB MetLife India Insurance Co. Ltd (PMLI)

b. Life Insurance Corporation of India (LIC)

During FY 2025-26, income from commission stood at '333.60 Crores against '358.45 Crores during FY 2024-25.

2. Non-Life Insurance: The Bank solicits Non-Life Insurance Business under Corporate Agency Agreement with following insurance companies

a. The Oriental Insurance Co. Ltd. (OICL),

b. Bajaj General Insurance Ltd. (BGIL),

c. Cholamandalam MS General Insurance Co. Ltd. (CHOLA MS),

d. Care Health Insurance Ltd. (CHIL)

e. Star Health & Allied Insurance Co. Ltd. (SHICL).

During FY 2025-26, income from commission was '94.49 Crores against '113.86 Crores during FY 2024-25.

3. Mutual Funds: Bank is registered with Association of Mutual Funds in India. (AMFI) as a Mutual Fund Distributor with ARN code-8418. The Bank is a distributor of Mutual Fund products of the following Asset Management Companies (AMCs):

a. M/s Sundaram Asset Management Company Limited

b. M/s Nippon Life Asset Management Limited

c. M/s UTI Asset Management Company Limited

d. M/s Aditya Birla Sunlife Asset Management Company Limited

e. M/s LIC Mutual Fund Asset Management Limited

f. M/s DSP Investment Managers Private Limited

g. M/s Franklin Templeton Asset Management (India) Private Limited

The Bank has partnered with Finwizard Technology Private Limited (FISDOM) to offer online Mutual Fund investment and Robo-Advisory services to all its customers.

During FY 2025-26, income from commission was '12.38 Crores against '11.27 Crores during FY 2024-25, registering year-on-year growth of 9.84 per cent.

4. Depository Services: The Bank offers Demat services as a Depository participant of National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) and trading services through tie-up with four trading channel partners such as

a. SMC Global Securities Ltd.

b. Geojit Investment Ltd.,

c. Aditya Birla Money Ltd. and

d. IDBI Capital Market & Securities Ltd.

The Bank has total 2.22 Lakh Demat and 0.97 Lakh trading accounts as on 31 st March, 2026. Income earned in FY 2025-26 from Depository services is '6.35 Crores.

5. Application Supported by Blocked

Amount (ASBA) & Dividend Payment Assignment: The Bank provides

ASBA facility through mobile banking platform, internet banking platform and branches. During FY 2025-26, 603 issues were handled as against 528 in FY 2024-25. The amount blocked through ASBA was '77,946 Crores in FY 2025-26 against '73,726 Crores in FY 2024-25.

During FY 2025-26, income of '1.51 Crores was earned from ASBA business. The Bank handled 29 Dividend Payment Assignments of listed companies in FY 2025-26. The Bank has license to act as Banker to an Issue, Debenture Trustee and Merchant Banker.

6. New Initiatives

a. Single Journey for Demat & Trading account opening: In this functionality, Demat accounts are opened with PNB and trading account with

trading channel partner in a seamless journey. The functionality is live with M/s Aditya Birla Money Ltd, M/s SMC Global Securities Ltd and M/s Geojit Investment Ltd in both Internet Banking Services (IBS) & Mobile Banking Services (MBS).

b. Lien & trade functionality- In this facility, the customer can lien funds in their linked savings account and get buying power to enjoy hassle-free trading facility up to the amount blocked by them. The traded amount is debited from their linked account after-market hours. This facility is now live with all four trading partners-M/s Aditya Birla money Ltd, M/s SMC Global Securities Ltd, IDBI Capital & Securities Ltd and M/s Geojit Investment Ltd

c. Demat viewing on WhatsApp:

Through this facility, customers can conveniently access their DEMAT- related information including

statements of transactions, statements of holdings, billing statements, billing invoice details, and outstanding

charges. In addition, customers can report a lost Delivery Instruction Slip (DIS) directly through the WhatsApp Banking service, ensuring enhanced convenience.

d. Revamped ASBA Services: The Bank has introduced an upgraded version of ASBA, to make applications easier and more convenient. Key features of revamped ASBA services are- Customers can link, view, or delete demat accounts through digital platforms such as Internet Banking Services (IBS) & Mobile Banking Services (MBS).

There is facility to view, modify, or cancel applications. Bidwise revision and withdrawal option is also available.

This upgraded version gives customers more flexibility and convenience while applying for Initial Public Offers (IPOs) and other issues.

XI. GOVERNMENT BUSINESS

To take a more proactive role in facilitating fund transfers from the Centre and States to beneficiaries, the Bank has an exclusive Government Business Department (GBD). It manages various functions, including pension processing and disbursement, government small savings schemes, direct and indirect tax collections, and currency chest operations. Additionally, the Bank serves as an accredited banker for nine Central Government departments and continues to strengthen its collaborations with State Governments to address their specific financial needs.

Progress under Government Business is given

below:

1. The Bank is disbursing pensions of approximately 6.09 Lakh pensioners i.e. Central Government, Defense, Railways, Telecom and State Government.

2. TDS deduction of Municipal Corporation of Delhi. (MCD) Pensioners has been centralized.

3. Through active marketing, more than 49,918 Public Provident Fund (PPF), 71,110 Sukanya Samriddhi Account. (SSA) and 1,03,021 Senior Citizen Savings Accounts (SCSAs) were opened during FY 2025-26.

4. Online Account Opening Facility for

PPF and SSA has been implemented through digital channels, facilitating seamless, paperless and customer friendly onboarding.

5. To reduce Customer grievances additional check for validation of SSA and PPF account number and amount by checker

during PPF and SSA deposit transaction verification in Government Business Module (GBM) was implemented.

6. Integration with various states and collecting online and offline taxes through their Cyber Treasury Portal. Collection of VAT is being done in 19 States.

7. Collection of taxes (Direct & Indirect) is

being done through offline and online modes on PAN India Basis. The Bank is one of the major collectors of taxes for Central & State Government.

8. National Pension System (NPS): All the

Branches are enabled for NPS transactions. Online facilities for NPS Registration and contribution are also available through website ( https://www.pnb.bank.in/nps. html ) as well as PNB ONE App. Total number of NPS subscribers associated as on 31st March, 2026 was 1,50,506 . The Bank is also providing NPS facilities to 27 corporates under Corporate Model.

9. NPS Vatsalya: A saving cum pension scheme regulated and administered by the Pension Fund Regulatory and Development Authority (PFRDA) was launched for all minor citizens (age below 18 years) with minimum contribution of '1000/- and there is no maximum limit.

10. Facility for registration and subsequent contribution under NPS Vatsalya has been enabled in CBS w.e.f. 25 th August, 2025.

11. Currency Chest: There is continuous monitoring of 254 Currency Chests across India. The annual income of '2.69 Crores against target of '2.00 Crores in FY 202526 has been generated.

12. The Annual Inspection of Currency Chests has now been automated through Internal Audit Management System (IAMS) Portal.

13. There has been an approximately 44 per cent reduction in penalties related to Currency Chests as compared to previous year.

XII. TREASURY OPERATIONS

The Bank's Gross Domestic Investments stood at '4,88,441 Crores as on 31 st March, 2026. The Bank's Treasury generated income of '38,301 Crores in FY 2025-26 as compared to '35,014 Crores in FY 2024-25.

1. Overview of System liquidity: In FY 202526, the Indian banking system experienced a substantial expansion in liquidity, with the Reserve Bank of India (RBI) absorbing a daily average surplus of '1.89 Lakh Crores, a marked increase from the marginal '0.03 Lakh Crores recorded in FY 2024-25. This significant improvement in systemic liquidity was facilitated through a series of calibrated central bank interventions, including Open Market Operation (OMO) purchases, USD/INR buy-sell swaps, and the strategic deployment of long-term Variable Rate Repo (VRR) operations. These proactive measures were fundamentally designed to ensure the seamless transmission of the cumulative 125 basis point policy repo rate reduction across the broader financial system.

2. Fixed Income (SLR/NSLR): The 10 Year benchmark yield hardened by 46 bps from 6.58 per cent as on 31st March, 2025 to 7.04 per cent as on 31st March, 2026. In the first half of FY 2025-26, trajectory of 10-year. benchmark witnessed significant degree of softening in line with RBI rate cut while in the latter half yields were weighed by anticipation of end of easing cycle, currency pressure and supply side pressure.

The 10-year AAA (Public Sector Undertakings (PSUs), Financial Institutions (FIs) & Banks) hardened from 7.10 per cent as on 31st March, 2025 to 7.65 per cent as on 31st March, 2026 amidst volatile FII movements and phases of liquidity deficit.

Recent geo-political turmoil has raised inflationary concerns globally. As second- round inflationary effects from supply

shocks are yet to unfold, the Regulator will keep the close watch over incoming data impacting the inflation-growth dynamics.

3. Equity & Mutual Funds: During FY 202526, the Indian equity market exhibited significant volatility, ultimately resulting in the benchmark NIFTY50 index registering an absolute decline of 5.05 per cent to close the fiscal year at 22,331.40. The market's trajectory was defined by a persistent tug- of-war between strong domestic catalysts and severe external headwinds. On the domestic front, investor sentiment was bolstered by robust macroeconomic fundamentals, a benign domestic inflation environment and structural reforms such as Good & Services Tax (GST) rate rationalization, which enhanced corporate efficiency.

However, these gains were systematically eroded by a deteriorating global geopolitical landscape, specifically the escalation of Iran-U.S. & Israel conflicts, which triggered spikes in energy costs and disrupted supply chains. Furthermore, heightened uncertainty surrounding aggressive U.S. trade tariffs prompted a "risk-off" sentiment among global investors, leading to sustained capital outflows that outweighed domestic resilience and pressured the index into negative territory by year-end.

4. Forex: The Indian Rupee ended FY 202526 at 94.83, registering a fall of 10.96 per cent against the US dollar.

The RBI adopted a more accommodative stance in FY 2025-26 to support growth, cutting the Repo rate by 125 basis points (to 5.25 per cent) and the CRR by 100 bps. This expansionary policy, while good for domestic growth, narrowed interest rate differentials with the US, making the Rupee less attractive to carry-trade investors.

The Indian Rupee's depreciation in FY 2025-26 was primarily driven by elevated

global crude oil prices and intensified geopolitical tensions in West Asia, which significantly widened the Current Account Deficit (CAD). This external pressure was compounded by a robust US Dollar and persistent Foreign Institutional Investor (FII) outflows from domestic equities, triggered by a "risk-off" global sentiment. Furthermore, a narrowing interest rate differential between the RBI and the US Federal Reserve, alongside temporary trade tariff uncertainties, exerted additional downward pressure, requiring active central bank intervention to manage the pace of the currency's decline.

XIII. CUSTOMER CARE

Customer service in modern banking has transformed into a multi-channel experience focused on building trust and loyalty. It connects banks with their clients, helping them feel secure and confident while managing their finances. Effective customer service is vital for a bank to meet clients' financial needs and maintain its reputation in a competitive market.

Recognizing its importance, the Bank prioritizes prompt and efficient customer service. To achieve this, it has well established a Grievance Redressal Policy aligned with Reserve Bank of India guidelines, ensuring timely resolution of customer issues

Additionally, the Bank has Grievance Redressal Management Portal to register complaints received from all sources. Through this system, the customer gets an immediate acknowledgement and can keep track of the complaint also. Various Channels through which Customer Grievances are received are as under:

- Contact Centres (Toll free/ Tolled numbers)

- Internet Banking Service / Mobile Banking app / Corporate Website.

- Email at care@pnb.bank.in

- MD & CEO / Chairman/ Ministry of Finance/RBI etc.

- Department of Public Grievance such as Centralised Public Grievance Redress and Monitoring System (CPGRAM)/ Integrated Grievance Redress Mechanism (INGRAM).

- Social media such as Facebook, X, LinkedIn and other social media platforms.

- Post

- Complaints in Person at Branch Offices.

The Bank has taken the following steps to resolve the complaints lodged by the customer:

- A system generated acknowledgement SMS/e-Mail is sent to the complainant with Complaint reference number for tracking the status of complaint.

- All rejected/partially accepted complaints are escalated to Internal Ombudsman as per RBI guidelines.

- An option to "re-open" the complaint

within 15 days from the date of last closure is provided in the CRM, if the complainant is not satisfied with the resolution of the complaint.

- All customer complaints lodged through various sources land at Head Office and are dealt with and closed at Head Office level only.

Customer Service Committees in all the

branches and Circle Offices investigate the quality of customer service rendered and critically examine the feedback/suggestions for improvement in customer service. These committees meet once in a month when staff and the invited customers interact freely on service-related issues.

Theme Based Meetings are being conducted at monthly intervals in branches on a pre-decided date as well as themes to improve awareness among field staff about bank's products and services, and to sensitize them about issues of maximum importance.

The Bank has state-of-the-art Primary Contact Centers at Gurugram and Noida to provide tele-banking services to its customers on 24 x 7 x 365 basis through two leading Service Providers. The Bank has also established two Secondary Contact Centers at Dehradun and Bhopal to provide tele-banking services to its customers in 13 languages.

Regular training sessions are arranged at Call Centre for Customer Service Agents (CSAs) so

that they can handle customers' calls properly & resolve their trivial issues by giving correct/ latest information that customers require about the products/services.

For faster resolution of complaints Bank has designated Chief Customer Executive Officer (CCEO) in the rank of Deputy General Manager at ZOs and Chief Manager at COs level, whom a customer can approach for redressal of his grievance. The contact details of CCEOs have also been displayed at Bank's website.

A monthly magazine "Customer Speaks" is published in which selected complaints filed by customers and the action taken/ resolution provided to the complainants are also published. Appreciation letters issued by customers for the service of officials of the bank are also published in the magazine.

The Bank conducts customer satisfaction surveys and takes suitable measures based on feedback for better customer service.

During FY 2025-26, a total of 12,86,162 complaints were received, out of which 7,11,664 complaints were resolved within T+1 days of its receipt. As such, these have not been treated as complaints. Therefore, the total number of reported complaints received during the FY 2025-26 is 5,74,498. The details of complaints

received and disposed of during FY 2025-26 are as follows:

*Excluding complaints which were resolved within T+1 days of its receipt.

Initiatives undertaken for improvement in

Customer Service

1. Regular interaction by Managing Director & Chief Executive Officer (CEO) and Executive Directors (EDs) with complainants, selected on a random basis at monthly interval, to assess the quality of grievance resolution.

2. In compliance of directions of Department of Telecommunication (DoT) and Telecom Regulatory Authority of India (TRAI) to help customers easily identify the nature of incoming calls and to curb spam and frauds, bank operationalized ' 140xx' series exclusively for all promotional voice calls and 160xx' series for all transactional and service voice calls through Call Centers.

3. New Complaint Module in Customer Relationship Management (CRM) solution for non- digital complaints implemented from May'25, with an objective to create a powerful tool for customer retention, creating customer value and effective complaint redressal.

4. Functionality for capturing Customer's feedback through Branch QR code

is developed. This new functionality empowers customers to give hassle free feedback about various services received in the branch.

5. Bank onboarded external agency (M/S Datawise Services Pvt. Ltd) to increase the level of customer service in the branches through Incognito Visits.

6. Facility of Chat with Live Agent through Website, WhatsApp, MBS and IBS provided to customers for further enhancing customer experience.

XIV. IMPLEMENTATION OF OFFICIAL LANGUAGE

Punjab National Bank has been a pioneer in implementing Hindi as the official language and committed to comply with the directions/guidelines of the Department of Official Language, Ministry of Home Affairs, Government of India as well as the Parliamentary Committee on Official Language and the Department of Financial Services (DFS), Ministry of Finance. It has successfully achieved most of the targets for the financial year 2025-26 outlined in the annual program released by the Department of Official Language, Ministry of Home Affairs, Government of India.

The Bank received the "First" prize from the DFS, Ministry of Finance for the year 2024-25 as well as for the year 2025-26 for outstanding work in the field of Official Language Hindi in Region "A". Further, the Bank's House Magazine "PNB Pratibha" won "first" prize in the "A" Region from DFS, Ministry of Finance for the year 2025-26. Bank is convener of 27 TOLIC (Town Official Language Implementation Committee) situated in different parts of the country. Delhi Bank TOLIC won "Narakas Rajbhasha Samman" and 24 TOLICs won "Narakas Protsahan Samman" from the Department of Official Language, Ministry of Home Affairs for the year 2024-25.

During FY 2025-26, various Zonal/Circle Offices of the Bank and TOLIC received 19 Regional Official Language Awards from the Ministry of Home Affairs and in

addition to this, various offices/employees of the Bank have also received many Raj Bhasha awards from various Government institutions.

1. Actions taken and progress made in implementation of the Annual Program for Progressive Use of Hindi

a. The Bank has a well-organized mechanism for implementation of the Official Language, which is functioning well under the supervision of the Official Language Department established at the Head Office. Official Language Department is established in all the Zonal Offices, Circle Offices and Training Centres, which implement the official language policy duly approved by the Board of Directors of the Bank in their offices, subordinate offices and branches.

b. Awards were given to the winning offices/employees under Lala Lajpat Rai Shield Scheme, Other Incentive Schemes and Rajbhasha competitions to increase the use of Official Language Hindi in the Bank.

c. The Bank's quarterly house magazine "PNB Pratibha" and half-yearly Hindi magazines of Zonal Offices and halfyearly Hindi e-magazines of Circle Offices were published regularly. Hindi books have been made available in the Libraries established at various levels.

d. During FY 2025-26, a total of 10 Hindi books were awarded by the bank under the Original Hindi Book Writing Scheme (for working and retired staff).

e. The Bank's exhibition was organized during Regional Official Language (OL) Conference and Prize Distribution function, Department of Official Language, Ministry of Home Affairs in Agartala on 20 th February, 2026, which was visited by the Hon'ble Union Home Minister and Minister of Cooperation, Shri Amit Shah.

2. Official Language Committees and their meetings

a. Meetings of the Official Language Implementation Committee of the Head Office were held on quarterly basis under the chairmanship of the Managing Director & Chief Executive Officer.

b. PNB is efficiently discharging the responsibility as convener of 27 Town Official Language Implementation Committees across the country. The half-yearly meetings of these committees were held regularly and Hindi competitions, Hindi workshops, Hindi seminars etc. were organized during the financial year.

c. Quarterly meetings of the Official Language Implementation Committee were held regularly by all the offices of the Bank.

3. External Inspection/Official Language Seminar/Conference

a. A three-day All India Official Language Conference and Review Meeting for the Official Language Officers of the Bank from 18 th March, 2026 to 20th March, 2026 was organized by the Head Office in Lucknow under the chairmanship of Executive Director, Shri Amit Kumar Srivastava. At the conference, the distinguished speaker Prof. Dr. Ravikant, Lucknow University and other speakers guided the Official Language Officers. Intensive monitoring of all the offices was done through Official Language Annual Review Meetings.

b. All India "TOLIC chairmans' Conference" was organized by the Head Office on 28th July, 2025 in the presence of Smt. Meenakshi Jolly, Joint Secretary-OL, Ministry of Home Affairs, Government of India.

c. Hindi Month was celebrated enthusiastically In the Bank from 14 th September, 2025 to 13th October, 2025. Winners of Lala Lajpat Rai Shield 2024-25 were felicitated by the Managing Director and Chief Executive Officer and top executives in a program held on 15th October,

2025.

d. Bank's work in the official language was appreciated by the third subcommittee of the Parliamentary on Official Language during the inspection of the Zonal Offices- Guwahati, Lucknow, Mumbai, Kolkata and Amritsar and circle Office- Bengaluru, Tehri, Gwalior, Noida, South Delhi, Ujjain, Bhopal and North 24 Parganas. In addition, Inspection at the Head Office, Dwarka, New Delhi was conducted by DFS, Ministry of Finance, Government of India on 16 th January, 2026 in which the outstanding official language implementation and the work being done by Bank was appreciated.

e. On the occasion of World Hindi Day,

2026, a "Kavi Sammelan and Rajbhasha Award Distribution Program" was organized on 14 th January, 2026 under the chairmanship of MD & CEO, Shri Ashok Chandra, wherein famous poets Shri Arun Jaimini and Shri Chirag Jain were invited.

4. Progress made in the use of Hindi in

Information Technology

a. The official language module of PNB Aarambh app for Official Language officers was launched by the bank, through which the official language inspection of subordinate offices is digitally monitored by the Head office/ Zonal/Circle Offices and the official language activities are recorded digitally.

b. A module titled 'Level of Hindi

Knowledge' is operational in HRMS to prepare a online roaster of Hindi working knowledge, proficiency etc.

c. Podcasts on the latest banking topics are released daily in Hindi and Regional Languages.

d. The Bank's website is bilingual and the home page opens in Hindi language by default.

e. Hindi and regional language facilities is available in ATMs of the Bank.

f. SMS to customers are sent in their preferred language (Hindi and Regional Language).

g. Quarterly and annual Hindi progress reports are being submitted online on the 'Rajbhasha Web Portal' by all the Branches, Circle and Zonal offices and various Head Office verticals.

h. Bilingual facility in CBS (Finacle) and HRMS is available through Bilingual software Linguafy . Further, all computers have bilingual working facility of Hindi Unicode.

i. Mobile banking app 'PNB ONE' stands revamped in Hindi and various Regional Languages.

j. WhatsApp banking services are available in Hindi as well as in Regional Languages.

k. Online Hindi courses were launched for employees on the bank's e-learning portal PNB Univ, on the basis of which employees are given marks in the Performance Monitoring System (PMS).

l. For the convenience of the customers, the forms related to various products of the bank are available online in Hindi & Regional Language.

m. Bank application forms and sanction letters related to loan portfolio are available bilingually in Bank's loan portal.

n. Bank's Internet Banking Service (Retail) is available in 9 languages (Hindi, Gujarati, Bengali, Marathi, Punjabi, Tamil, Telugu, Malayalam, English).

5. Special activities and programmes

regarding the use of Hindi

a. To encourage original Hindi writing, an all-India essay writing competition was organized on "ESG Integration: The Future of Sustainable Banking in India" for the staff members of the Bank during Hindi month.

b. On 15 th October, 2025, on the occasion of the Rajbhasha prize distribution ceremony, the Honorable Managing Director and Chief Executive Officer (MD&CEO) released the "Rajbhasha Calendar" , in which a month-wise calendar of official language related works has been given for the guidance of the Official Language Officers.

c. Hindi training was imparted to the staff members by Head Office, Zonal Offices, circle Offices and Training Centres through Hindi workshops, Unicode training and desk training to work in Hindi on the computer and translation tool "Bharti Bahubhashi Anuvad Sarthi".

d. The 'Rajbhasha Bhushan' Shield scheme has been launched to motivate the best performing Official Language Officers in the field of Official Language implementation.

e. 'Rajbhasha Excellence Award Scheme' was implemented to felicitate the offices receiving awards from various Ministries/Central Government Departments.

f. Various all India seminars were conducted on the topics -Hindi & Indian Languages, Hindi e-Tools, Artificial Intelligence (AI) in Banks and Rajbhasha Hindi's development history and prospects.

6. Bilingual status of circulars/forms/other documents

a. The forms used by the customers are also available in Hindi and Regional Languages.

b. To facilitate work in Hindi, the "Standard Formats" of routine letters/office notes pertaining to various departments are available on the e-portal of the Bank.

c. Hindi and Regional Languages were used in publicity and promotional campaigns related to the schemes and products of the Bank.

XV. PNB'S SUBSIDIARIES AND REGIONAL RURAL BANKS

1. DOMESTIC

a. PNB Gilts Ltd.: The Company posted a Profit Before Tax (PBt) of '241.59 Crores during FY 2025-26 vis-a-vis PBT of '310.95 Crores during FY 202425. Profit after Tax (PAT) amounted to '181.62 Crores during FY 2025-26 as against '233.03 Crores during FY 2024-25. Capital adequacy remains strong with its Capital to Risk Weighted Assets Ratio (CRAR) at 52.68 per cent as on 31 st March, 2026 well above the regulatory minimum of 15 per cent for Primary Dealers (PDs).

b. PNB Investment Services Limited (PNBISL): During the year ended as on 31 st March, 2026, the Company registered operational (fee-based) income of '11.82 Crores and total income of '15.47 Crores as against a fee- based income of '10.20 Crores and total income of '13.72 Crores for the year ended as on 31 st March, 2025.

Profit before Tax during the period ended as on 31 st March, 2026 was '6.33 Crores as against '7.86 Crores during the period ended as on 31 st March, 2025.

During FY 2025-26, the Company's Corporate Advisory vertical successfully completed debt syndication assignments. The year also marked significant progress in the Techno-Economic Viability (TEV) Study and the Company's Debt Resolution (Swiss Challenge) practice, with the successful execution of major debt resolution mandates. With these credentials now firmly established, the Company anticipates a growth trajectory in this business segment in FY 2026-27

During FY 2025-26, the Company experienced a decline in revenue in its Merchant Banking vertical, primarily due to the postponement of IPO listing assignments and delays in obtaining approvals from SEBI. Going forward, the Company has strengthened its Merchant Banking team through the induction of experienced professionals and has built a robust pipeline of mandates. With these strategic enhancements, the Merchant Banking vertical is well-positioned for sustained growth and improved performance in the coming periods.

Growth seen in trusteeship segment in FY 2025-26 with strong year-on-year growth of 43 per cent in Trusteeship Services revenue, significantly outperforming typical industry growth benchmarks. The increase is driven by onboarding of new security trustee and debenture trustee mandates, higher transaction volumes, and improved fee realization. The growth reflects strong business momentum and positions the business for healthy

Compounded Annual Growth Rate (CAGR) over the medium term.

Looking ahead, the Company strategically intends to develop annuity business to build resilience and ensure consistent cash flow and reduce the inherent lumpiness in our current portfolio business mix.

c. PNB Cards and Services Limited (PNBCSL): PNBCSL, a wholly owned subsidiary of Punjab National Bank (PNB), was incorporated on 16th March, 2021 following RBI approval on 7th December, 2020. Initially focused on non-financial support services for PNB's credit card business, PNBCSL received RBI approval on 13 th January 2023 to expand its services. These now include sourcing, marketing, promoting, publicizing, advertising, and soliciting deposits (Current and Savings Accounts) and retail loan products (Housing Loan, Loan against Property, Vehicle Loan, Education Loan, Personal Loan). Further, RBI vide letter dated 5 th December, 2025 has accorded their approval for additional non-financial support services viz for business loans(including MSME Loans),Agriculture products (Crop loans, KCC, etc), Business Correspondent Activity, Data Entry Operations, Manpower Support Services, Regulatory Portal Support for EDPMS/IDPMS and follow up with bank empaneled recovery agencies for Retail, MSME, Agri and Business loans.

Operating across more than 130 locations with a workforce exceeding 1,500 employees, PNBCSL has facilitated housing loans worth over '3,036 Crores (with year-on-year growth of 150 per cent), vehicle loans exceeding '1,989 Crores (with year on year growth of 223 per cent), education

loan over 351 Crores (with year on year growth of 2571 per cent), Lap worth over 111 Crores and issued more than 2,40,803 credit cards (with year on year growth of 161 per cent), managed over 3,67,531 CASA accounts (with the year on year growth of 575 per cent) (33,391 current accounts and 3,34,140 saving accounts).

PNBCSL maintained its profitability trajectory, achieving a net profit after tax of '6.80 Crores, demonstrating its continued contribution to the Bank's success.

PNBCSL remains committed to offer high-quality services and expanding its reach to serve a broader customer base.

2. INTERNATIONAL

a. PNB International Limited (PNBIL):

Punjab National Bank (International) Limited (PNBIL) was incorporated in the United Kingdom on 13th April, 2006 and is registered with the Companies House in England & Wales. The Bank is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority to conduct banking business in the UK.

Business Performance: As on 31 st

March, 2026, PNBIL delivered a strong performance, demonstrating robust balance sheet growth and sustained profitability despite a challenging operating environment.

Total deposits increased significantly from '7,688 Crores as on 31 st March, 2025 to '11,033 Crores as on 31 st March, 2026, recording a year on year growth of 43.51 per cent. Gross Advances also exhibited healthy growth, rising from '8,333 Crores as on 31 st March, 2025 to '11,310 Crores

as on 31 st March, 2026, reflecting a year on year increase of 35.72 per cent.

For FY 2025-26, the Bank reported a net profit of '1 05.31 Crores under Indian Generally Accepted Accounting Principles (IGAAP) and '25.93 Crores under International Financial Reporting Standards (IFRS), underscoring improved operational performance and Prudential Financial management.

b. Druk PNB Bank Ltd (DPNBL): Druk PNB Bank Ltd, Bhutan, Banking Company having its corporate office at Thimphu, Bhutan. It started its operation on 27 th January, 2010, in Bhutan as the country's fourth commercial Bank, with a component of both Foreign Direct Investment (FDI) and joint venture in the Banking Sector. Presently, the Bank has 9 branches and 30 ATMs spread across the country.

- Total Deposits of DPNBL increased from '2,828 Crores as on 31 st March,

2025 to '3,056 Crores as on 31 st March,

2026 i.e. YoY increase of 8.06 per cent.

- Total Advances of DPNBL increased from '2,103 Crores as on 31 st March, 2025 to '2,364 Crores as on 31 st March, 2026 i.e. YoY increase of 12.60 per cent.

- Net Profit increased from '30.41 Crores as on 31 st March, 2025 to '58.67 Crores as on 31 st March, 2026. Paid up capital of the Bank as on 31 st March, 2026 is '168 Crores.

3. REGIONAL RURAL BANKS (RRBs): As

on 31 st March, 2026, there are 8 RRBs sponsored by the bank namely Bihar Gramin Bank (BGB),Patna, Haryana Gramin Bank (HGB), Rohtak; Himachal Pradesh Gramin Bank (HPGB),Mandi; Punjab Gramin Bank (PGB), Kapurthala; Assam Gramin Bank (AGB), Guwahati;

West Bengal Gramin Bank (WBGB), Berhampore; Tripura Gramin Bank (TGB), Agartala and Manipur Rural Bank (MRB), Imphal. These eight RRBs are operating in eight states namely Bihar, Haryana, Himachal Pradesh, Punjab, West Bengal, Assam, Manipur and Tripura covering 170 districts with a network of 5150 branches.

- Total Business of sponsored RRBs as on 31 st March, 2026 is '2,71,259 Crores registering a YoY growth of 8.88 per cent.

- Deposits of RRBs are at '1,65,685 Crores as on 31 st March, 2026. Aggregate Deposits registered a YoY growth of 7.32 per cent.

- Advances of the RRBs as on 31 st March, 2026 stood at '1,05,574 Crores with a YoY growth of 11.41 per cent.

As per RBI guidelines it is mandatory for RRBs to meet the regulatory requirement of CRAR of 9 per cent. The RRBs except HPGB maintained CRAR over and above the regulatory requirement with TGB (28.58 per cent), PGB (15.89 per cent), HGB (15.64 per cent), WBGB (14.45 per cent), AGB (10.31 per cent), MRB (9.79 per cent),BGB (9.06 per cent) and HPGB (7.10 percent). CRAR of HPGB is below the regulatory requirement at 7.10 per cent.

The sponsored RRBs have consolidated net profit of '1815 Crores as on 31 st March, 2026 (including net loss of HPGB of '14.94 Crores). The consolidated Operating profit of all RRBs, stood at '3,585 Crores as on 31 st March, 2026.

One of the RRBs, Haryana Gramin Bank is eligible for raising capital through Initial Public Offer (IPO) as per the broad guidelines issued by

Department of Financial Services (DFS).

The RRBs have cumulatively disbursed '7,199 Crores under Pradhan Mantri Mudra Yojana (PMMY)/MUDRA as on 31 st March, 2026, achieving 75.77 per cent of targeted budget of '9,500 Crores for disbursement

XVI. AWARDS AND ACCOLADES

The Bank's outstanding efforts and innovations have been widely recognized, earning prestigious honors from a variety of respected platforms. These achievements reflect the Bank's commitment to excellence across several areas. Highlighted below are some of the notable awards received:

Technology:

1. SKOCH Gold Winner 2025-26 for "Perpetual Pipeline"-a framework for day- to-day lead curation in Banking Financial Services and Insurance (BFSI) Category at 106th SKOCH Awards 2026.

2. 21 st IBA Banking Technology Awards 2026, runner up in FinTech & DPI Adoption and Special Mention in Financial Inclusion.

3. Honoured with the silver awards at BFSI category for innovative PNB ONE Biz Corporate Banking App at the 103rd SKOCH awards 2025.

4. Jury's Choice Award-Data Centre Category by CapitaLand and Schneider Electric in partnership with Express Computer at Excellence in Data Centre Transformation and Modernization.

5. Awarded Two Platinum and One Gold Category Awards in Infosys Finacle Innovation Awards 2025.

6. Conferred upon three awards in Large Banks Category (PSU) under different categories at 4th IBA CISO Summit 2025 in Mumbai:

i. Cyber Security Team of the Year- Winner

ii. Cyber Incident Response Maturity- Winner

iii. Cyber Security Transformation of the Year- Runners Up

7. Secured First position at Digital Payments Awards 2023-24 under PSB category.

8. Channel innovation-Platinum Winner- CCPS (Centralized Commission Payment System) at Finacle Innovation Award 2025.

9. Tech-Driven Operational Excellence Award-Silver at IBEX India BFSI Tech Awards 2026.

10. Data Innovation Awards 2026 in Sustainable Infrastructure Leader Category - by Hitachi Vantara.

Agriculture:

11. Recognized for its outstanding performance at Agriculture Infrastructure Fund (AIF) Scheme

- 1 st in Geo Tagging of sanctioned and disbursed AIF loans accounts

- 2 nd in AIF Loan Disbursement Employee/Training & Development:

12. Golden Peacock National Training Award for the year 2025-26 under financial sector category.

13. Honored as a Happy Employer Brand 2025, reflecting our people first culture.

14. Institutional Excellence Award at Industry Academia Conference (IAC) 2026.

EASE 7.0 Awards:

15. Secured multiple positions across the themes of EASE 7.0 reforms:

- Effective risk/fraud management, collections and recovery (Winner)

- Excellence in customer service (1 st Runner Up)

- Adoption of new age technology and other advanced capabilities. (2 nd Runner UP)

Miscellaneous

16. First prize in Region 'A' for the Best Implementation of Official Language was awarded by Ministry of Finance, Government of India.

17. 3 rd ICC Emerging Asia Banking Awards 2025 for the following categories

i. Best Bank for AI/ML Implementation- Winner

ii. Best Bank- Runner-Up

18. Awarded First position in BFSI category at the 19 th National Awards for Excellence in Cost Management 2024 organized by the Institute of Cost Accountants of India.

19. One of the Best BFSI Brands 2026 in Public Sector Bank category by ET Edge.

XVII. FUTURE BUSINESS PLAN OF THE BANK

The Bank has entered Financial Year 202627 with a renewed commitment toward becoming a digital first and a customer service-oriented Bank. The Bank's growth strategy is firmly anchored in digital scale, expanding the reach, inclusive development along with capitalizing on emerging business opportunities and augmenting excellence in customer service.

Focus on Retail, Agriculture & MSME (RAM) will continue to drive the Bank in FY 2026-27 as well. By giving adequate emphasis on RAM, the Bank is not just taking care of balance sheet growth but is actively fueling the pillars of a developed India. The Bank is planning to continue to provide the required funding to the sectors through its products and services.

Another focus area of the Bank remains CASA Deposits , where Bank will strive to increase its market share across all geographies. Towards this, the Bank will need to capture the customer segment in the age bracket of 18-40 years. Continued updation/modification and innovation of digital products and services will aid our actions in this direction. It will be our endeavor to retain our existing customers as well as bring in new customers into our banking fold.

The Bank will also look forward to enhancing Business growth through areas such as Financial Supply Chain Management (FSCM), Cash Management System (CMS) and Credit Card , which will better the business growth prospects of the Bank. It will also facilitate towards fee income growth and profitability.

In FY 2026-27, PNB will aim towards becoming a digital-first institution by laying emphasis on innovations & upgradations of the digital platforms. The Bank will continue to give attention to upgrade its monitoring ecosystem by investing in robust digital infrastructure to proactively manage risks and optimize performance. It will also help our bank prioritize Operational Efficiency through streamlining internal processes, leveraging technology and optimizing resource allocation.

Excellence in customer service will remain our primary differentiator. The Bank is actively integrating GenAI and Advanced Analytics into its operations, along with the implementation of a revamped Customer Relationship Management (CRM) platform. The Bank is optimizing Turn Around Time (TAT) for the grievance redressal and enhancing the a mbience within branches to strengthen financial inclusion and consistently exceed evolving customer expectations.

The Bank has a strong workforce of more than 1,00,000 employees, which has been critical engine for all the transformations taken so far. In the FY 2026-27, the Bank will continue to focus on its Human Resources through continuous up-skilling, transparent performance appraisals, and inclusive welfare policies. The Bank will ensure fostering a motivated and empowered team ready to lead PNB as a globally trusted banking partner.

In alignment with the vision of Viksit Bharat@2047 , Bank stands poised to innovate and excel, delivering long-term value to all our stakeholders. By leveraging digital transformation and customer-centric strategies, as highlighted in its future business plan, PNB aims to capture emerging business opportunities and reinforce its leadership in the banking industry.

XVIII. CHANGES IN BOARD OF DIRECTORS

1. Shri Jatinder Singh Bajaj vacated the office of Shareholder Director on 06.06.2025 pursuant to acceptance of his resignation tendered on

05.06.2025.

2. Shri Pankaj Sharma completed his tenure as Government of India (GOI) Nominee Director on 24.07.2025.

3. Shri D. Anandan was appointed as Government of India (GOI) Nominee Director w.e.f. 24.07.2025.

4. Smt. Vandana Bhagavatula was deemed elected as Shareholder Director w.e.f. 29.08.2025.

5. Shri Kalyan Kumar vacated the office of Executive Director on 30.09.2025 upon his appointment as Managing Director and Chief Executive Officer of Central Bank of India.

6. Shri K. G. Ananthakrishnan, Parttime Non-official Director cum NonExecutive Chairman, completed his tenure on 06.11.2025.

7. Shri Amit Kumar Srivastava was appointed as Executive Director w.e.f.

24.11.2025.

XIX. PERFORMANCE EVALUATION OF THE BOARD OF DIRECTORS

The performance of the Board and Committees of the Board for FY 202425 was evaluated by M/s Deloitte Touche Tohmatsu India Limited Liability Partnership (LLP) (onboarded through Request for Proposal (RFP)), and final report submitted by M/s Deloitte was accepted by the Board during its meeting held on 29th July, 2025. As per the report, the overall Effectiveness Index of the Board was 85.72 on a 100-point effectiveness scale wherein Board dynamics scored the

highest (i.e. 89.44) and Board operations scored marginally low (83.84). The Board composition and structure scored 85.32 while Governance Responsibilities of the Board scored 85.00.

XX. SECRETARIAL AUDIT REPORT

The Secretarial Auditor in its Report has made observations with respect to (i) vacancies of Directors under section 9(3) (e), (f), (g) and (h) of Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 on the Board of the Bank (ii) noncompliance ofRegulation 1 7(1) ofSEBI LODR Regulations, 2015, composition of Board of Directors, Nomination and Remuneration Committee and Chairmanship of Meeting of Risk Management Committee of Board and Audit Committee of Board and (iii) non-disclosure of performance evaluation criteria for independent directors in the Annual Report.

XXI. DIRECTORS' RESPONSIBILITY STATEMENT

The Directors confirm that in the preparation of the annual accounts for the year ended 31 st March, 2026:

1. The applicable Accounting Standards have been followed along with proper explanation relating to material departures, if any;

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

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

4. Proper and sufficient care was taken for the maintenance of adequate accounting records in accordance

with the provisions of applicable laws governing banks in India, and;

5. The accounts have been prepared based on the principle of "going concern".

XXII. ACKNOWLEDGEMENT

The Board of Directors extends its heartfelt gratitude to the shareholders, valued customers, well-wishers, and all other stakeholders for their continued goodwill, trust, and support.

The Board of Directors extends its sincere appreciation to the Government of India (GOI) for its continuous guidance and support, which has been instrumental in the Bank's effective functioning. The Board also expresses its gratitude to the Reserve Bank of India (RBI) for its regulatory oversight and valuable direction, as well as to the Securities & Exchange Board of India (SEBI) for its assistance in ensuring compliance with securities regulations.

The Board expresses its gratitude to the Statutory Central Auditors (SCAs) of the Bank for their guidance and oversight, which have greatly contributed to upholding the highest standards of financial integrity and governance throughout the year.

The Board also places on record its appreciation for the valuable contribution made by the members of the Bank's staff at all levels and is looking forward to their continued involvement in achieving the future goals.

For and on behalf of Board of Directors

Ashok Chandra

Managing Director & CEO