Dear Shareholders,

The Board of Directors are pleased to present the 107th Annual Report of the Bank for the Financial Year 2025- 26 together with the 'Audited Balance Sheet', 'Profit & Loss Account', 'Cash-Flow Statement' and the report on 'Management Discussion & Analysis'. The 'Corporate Governance Report' and 'Business Responsibility Report' also form part of the Annual Report 2025-26.

Indian economy has demonstrated remarkable resilience Despite a succession of unprecedented global shocks in recent years?including the COVID-19 pandemic, the Russia- Ukraine conflict, escalating tariff measures led by the US, and ongoing tensions in West Asia. Strong domestic demand dynamics have served as a critical growth anchor, cushioning the economy from external headwinds. Equally, policymakers deserve significant credit. Both the Government and the Reserve Bank of India (RBI) have adopted a proactive and forward-looking approach, putting in place appropriate guardrails and undertaking timely policy interventions to preserve macroeconomic stability. These measures have helped contain the transmission of global shocks to the domestic economy, strengthened financial sector resilience, and ensured that the banking system remains well- capitalised, liquid, and capable of supporting the country's growth aspirations.

1. Global Developments:

The global economy held up well in 2025 despite facing multiple headwinds including heightened trade protectionism, geopolitical tensions, elevated public debt levels, and policy uncertainty. Global growth improved marginally to 3.4% from 3.3% in 2024, supported by strong investment in artificial intelligence and technology sectors, accommodative financial conditions, and adjustments in global supply chains. Inflation moderated significantly from 5.8% to 4.1% as energy prices softened and supply chain bottlenecks eased, although services inflation remained sticky across major advanced economies. Global trade volumes expanded by 5.1%, outperforming global GDP growth, partly due to front-loading of imports ahead of anticipated tariff increases.

The outlook for 2026, however, has weakened. Following the outbreak of the West Asia conflict in early 2026, global growth projections have been revised downward to 3.1%, while inflation expectations have been revised upward to 4.4%. Rising energy prices, disruptions in shipping routes, and heightened risk aversion are expected to create a more challenging environment for global growth, trade, and financial stability.

The RBI in its 2025-26 Annual report identifies "the West Asia conflict as the most significant risk to the Indian economic outlook.

2. India: Macroeconomic Overview

Against a difficult global backdrop, India remained the fastest-growing major economy, with GDP growth accelerating to 7.6% in 2025-26 from 7.1% in the previous year. Growth was driven primarily by robust domestic demand, strong private consumption, sustained investment activity, and supportive policy measures. The services sector remained the principal engine of growth, contributing nearly 69% of overall GVA growth, while manufacturing recorded a strong expansion of 11.5%, aided by industrial credit growth and policy initiatives such as the Production Linked Incentive (PLI) scheme. Agricultural growth moderated to 2.4% from 4.2% due to weather-related disruptions, although record foodgrain and horticulture production helped cushion the impact. Fiscal management also remained prudent, with the Centre achieving its fiscal deficit target of 4.4% of GDP through higher revenues and controlled revenue expenditure growth while staying focused on capex push.

Inflation dynamics improved significantly during the year. Headline CPI inflation declined sharply to 2.1% from 4.6% in 2024-25, primarily reflecting lower food inflation and favourable base effects. Core inflation remained benign due to GST rationalisation, softer commodity prices, and muted input cost pressures.

From external sector perspective, the merchandise trade deficit widened to US$333 billion from US$283 billion a year earlier. Nevertheless, strong services exports and remittance inflows kept the current account deficit contained at around 1.0% of GDP. More importantly, lagging capital flows amid global uncertainty and geopolitical tensions, led to second consecutive Balance of Payments (BoP) deficit in FY2025-26. Despite this, foreign exchange reserves remained robust at US$691 billion, providing import cover of approximately 11 months and reinforcing external sector resilience.

Several measures announced in the Union Budget 2026-27 were growth supportive. The Budget has proposed a six-point plan which focuses on scaling up domestic manufacturing in several strategic and frontier sectors, rejuvenating legacy industrial sectors, creating champion MSMEs, boosting infrastructure, ensuring long-term energy security and stability, and developing city economic regions. This, coupled with further progress on trade deals with major economies, bodes well for India's overall growth outlook. Global headwinds stemming from rising geopolitical tensions, elevated commodity prices and supply-chain disruptions, however, pose downside risks to the growth outlook.

3. Monetary Policy developments

The significant moderation in inflation provided space for monetary easing during 2025-26. The Monetary Policy Committee (MPC) reduced the policy repo rate by a cumulative 100 basis points during the year and 125 basis points in the overall rate cut cycle starting February 2025. The MPC shifted to neutral stance in June 2025 to preserve flexibility amid evolving global conditions. The policy approach reflected a calibrated balance between supporting growth and maintaining vigilance against emerging inflationary risks.

Simultaneously, liquidity conditions remained comfortably surplus. The RBI actively supported liquidity injection of more than Rs 10 lakh crore through multiple channels, including open market purchases, foreign exchange swaps, longer-term repo operations, and a cumulative 100-basis-point reduction in the Cash Reserve Ratio (CRR). As a result, average surplus liquidity increased substantially, with average daily absorption under the Liquidity Adjustment Facility rising to '1.86 lakh crore compared to flat in the previous year.

4. Transmission of Rate Moves into Lending and Deposit Rates

Monetary transmission strengthened considerably during the current easing cycle. The increasing dominance of External Benchmark Linked Rate (EBLR)- based loans improved the speed and effectiveness of policy transmission compared with earlier cycles. As repo rates declined, lending rates adjusted downward more quickly, while the share of MCLR-linked loans continued to fall.

The policy transmission has become more efficient due to structural changes in the banking system, allowing monetary policy actions to influence borrowing costs more directly and support credit expansion. This improvement in transmission is an important development in enhancing the effectiveness of monetary policy. Deposit rates also responded to the easing cycle, supported by abundant banking system liquidity even as persistent wedge between credit and deposit growth led to the downward rigidity in deposit rates.

5. Market Trends

Financial markets experienced periods of volatility during 2025-26 amid tariff-related uncertainties, geopolitical tensions, and fluctuating capital flows. Government securities and corporate bond yields generally hardened during the year due to concerns regarding global inflation, fiscal sustainability, and geopolitical risks. However, RBI's liquidity injections, repo rate cuts and continued fiscal consolidation helped prevent excessive increases in yields.

Equity markets witnessed a two-phase movement. Strong gains in the first half of FY2025-26, supported by domestic growth and technology-related optimism, were followed by corrections in the second half as investors reassessed AI-related valuations and responded to escalating tensions in the Middle East. The Indian rupee traded with a depreciating bias, reflecting foreign portfolio outflows and global uncertainty, although India's external position remained comfortable.

6. Banking Sector Developments

The banking sector continued to demonstrate strong performance and resilience. Bank credit to the commercial sector expanded around 16% in 2025-26, a significant acceleration from 10.9% in the previous year. Credit growth was broad-based across sectors, reflecting healthy economic activity and strong demand for financing. Non-bank sources of credit also remained important, growing by 13.3%.

Industrial credit growth remained above its long-term average, thereby supporting overall credit expansion. Although personal loans growth remained below its long-term average, it has accelerated recently. Personal loans and services sector continued to drive the overall credit growth. Within the industrial sector, credit to MSMEs segment remained buoyant, recording a marked acceleration and contributing significantly to overall credit growth in 2025-26.

The flow of credit to MSMEs was supported by regulatory measures such as the enhanced limit under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme, introduction of customized credit card scheme for micro enterprises, expansion of digital and fintech lending through the co-lending framework with banks, and the updated definition of MSMEs, among others.

Deposit growth remained healthy at 13.5% but lagged the pace of credit expansion, resulting in a further increase in the credit-deposit ratio. While this trend underscores robust credit demand, it also highlights the increasing importance of deposit mobilisation for the banking system.

The sector's financial health continued to strengthen. Gross non-performing assets declined to a multi- decadal low, profitability remained robust, and capital adequacy ratios stayed comfortably above regulatory requirements. RBI stress tests confirmed that banks possess sufficient capital buffers to withstand severe adverse scenarios. Similar improvements were observed among non-banking financial companies and urban cooperative banks, reflecting broad-based strengthening of India's financial system.

7. Impact of the West Asia Conflict on the Economy and Banking Sector

The West Asia conflict has already led to a reassessment of global growth and inflation projections, with rising energy prices emerging as the principal transmission channel for economies worldwide. Disruptions to shipping routes and logistics networks may increase freight costs and affect trade competitiveness. Financial markets could also face heightened volatility, leading to fluctuations in capital flows, exchange rates, and bond yields. Consequently, risks to both growth and inflation have become more pronounced.

For the Indian economy, higher crude oil prices and supply disruptions could increase imported inflation, raise transportation and production costs, apart from widening external imbalances via deterioration in merchandise trade deficits and lagging capital flows. These developments have adversely affected macro-outlook for 2026-27 with the Monetary Policy Committee in April 2026 indicating upside risks to its inflation forecast of 4.6% and downside risks to growth projection of 6.9%.

For the banking sector, the impact is expected to be largely indirect. Higher input costs and weaker global demand could affect corporate profitability, especially in energy-intensive and export-oriented industries. Persistent volatility in bond markets may also exert mark-to-market pressures on investment portfolios. However, banking system is well positioned to absorb such shocks. Strong capital buffers, historically low NPAs, healthy profitability, and robust regulatory oversight provide substantial resilience against potential spillovers from geopolitical events.

Conclusion: While the West Asia conflict has increased external risks and introduced fresh uncertainty into the global economic landscape, India's strong domestic demand, prudent macroeconomic management, and resilient banking sector provide significant safeguards against adverse outcomes.

8. Digitization

The Bank continued its Digital Transformation Journey by leveraging contemporary digital technologies to deliver seamless, secure and inclusive banking services. The rapid evolution of digital financial services and regulatory reforms has reshaped the banking landscape, necessitating scalable, customer-centric and compliant digital solutions.

The Bank's digital initiatives focused on expanding straight-through-processing (STP), enhancing customer experience, and strengthening digital platforms across Retail, MSME, Agriculture and Payments segments.

During FY 2025-26, the Bank implemented and expanded multiple digital journeys across asset, liability and service segments. These initiatives substantially reduced turnaround time and improved customer convenience. Key initiatives during the FY 2025-26 are:

The Bank has achieved comparable capability in mobile banking, digital lending and payment innovation, supported by its nationwide branch network and inclusive design philosophy.

8.1 Union Ease App

The Bank's mobile and web-based platforms form the foundation of customer engagement strategy. The Bank launched its revamped mobile banking application 'Union ease' with 350+ features covering payments, deposits, loans, investments, insurance, Account Aggregator and service requests etc. Union ease offers enhanced UI/UX, dynamic interface, accessibility-compliant features, integrated UPI capabilities and biometric authentication. Union Ease provides customers with a unified digital interface and enables one-point access to lending and non-lending services

Union Ease serves as a unified digital channel, supporting the Bank's objective of delivering a seamless end-to-end digital banking experience.

The Bank implemented extensive enhancements across payment channels, including increased UPI Lite limits, enabling UPI Global transactions across multiple geographies, pre-sanctioned credit lines on

UPI, OS Native Biometric based Authentication, UPI mandate Service (UPI Autopay or e-mandate) with single block multiple debit services etc.

8.2 Union eBiz App: Bank has launched new Business App - Union eBiz for MSME Customers on the 107th Foundation Day of the Bank for individual and sole proprietor business customers with a comprehensive set of journeys covering payments, collections, user access exclusively for business accounts.

The app is equipped with a wide array of robust features designed to simplify business operations. It offers Access Rights Management, enabling customers to add users with restricted permissions, along with fund transfer capabilities, including individual and bulk payments through group or file upload. Customers can seamlessly manage collections by generating and sharing Merchant QR codes and payment links, applying for POS machines and monitor transactions through a live collection dashboard.

8.3 Digital Personal Loan:

Collateral free unsecured loan that can be used for variety of purpose to meet personal needs. End to End servicing of personal Loan digitally for both Existing-to-Bank (ETB) and New-to-Bank (NTB) customers without manual intervention.

8.4 Digital Vehicle Loan:

A Digital and paperless approval of Vehicle Loans for the purchase of new four-wheelers for personal use, covering both Existing-to-Bank (ETB) and New-to-Bank (NTB) customers, resulting in significantly reduced turnaround time.

8.5 National Pension Scheme

The Digital NPS journey generates and activates PRAN instantly. The Journey consists of built in KYC compliance, duplicate PRAN checks, photo and signature upload and facility for initial contribution offers a secure, seamless experience to customers in just a few steps.

8.6 Savings Accounts Journey

A seamless Digital journey for Savings Account opening for Existing to Bank customers, for 23 schemes of Savings Bank Account.

8.7 Debt Swap STP

Debt Swap Scheme (Agri Term loan upto Rs. 0.50 lakh) is digitized fully wherein Agri sector customers can avail the loan online.

8.8 Online Re-KYC

Customers can now complete their Re-KYC online without visiting the branch.

8.9 Digital Title Search and Digital Valuation

The Bank has introduced Digital Title Search Report (TSR) and Digital Valuation as added capabilities to streamline collateral securities assessment process. The platform enables end-to-end process of valuation report and legal report digitally through Panel Service Provider

8.10 Other Initiatives

• Digital Rupee by Union Bank of India (e?) App

During the FY26, the Bank introduced key CBDC features including PIN-less retail transactions for small-value payments, programmable CBDC (p-CBDC) for specific purpose payments, and merchant onboarding through the Digital Rupee Merchant App. The Bank successfully implemented and operationalized multiple p-CBDC projects in collaboration with State Governments. These initiatives are aimed at enabling targeted and conditional disbursement of funds to beneficiaries through Digital Rupee wallets.

The Bank also implemented wholesale CBDC (w-CBDC) initiatives, including tokenization of Certificates of Deposit, supporting efficient and secure interbank settlements.

The Bank in collaboration with various State Governments has implemented p-CBDC initiatives aimed at enabling targeted and conditional disbursement of funds to beneficiaries through Digital Rupee wallets. The initiatives undertaken during the FY 2025-26:

• Digital Document Execution

Digital Document Execution (DDE) through the Lending Automation System (LAS) was progressively expanded during the year for

Retail, MSME and Agriculture loans for individual customers across a wide geographical footprint viz. 17 States/UTs for MSME Journeys, 18 States/ UTs for Retail Journeys, 19 States/UTs for Agri Journeys

9 Business Highlights:

9.1 The global business of your Bank stood at Rs. 23,85,502 crore as on March 31,2026

9.2 Total Deposits stood at '13,06,891 crore as on March 31,2026. Out of this, CASA share (current account and saving account) stood at 35.20 % as on March 31,2026.

9.3 Gross Advances stood at Rs. 10,78,611 crore as on March 31, 2026. RAM segment of your Bank stood at Rs. 5,98,484 Crore. 16.75% growth in Retail, 2.75% growth in Agriculture, and 18.75% growth in MSME advances are achieved on a YoY basis. RAM advances as a percent of Domestic RAM Advances stood at 57.49%.

9.4 Overseas business of your Bank stood at Rs. 38,260 Crores as March 31, 2026, compared to Rs. 37,415 Crore as on March 31, 2025. Your Bank has two overseas branches in DIFC (Dubai) and Sydney (Australia) and operates in London, United Kingdom, through its wholly owned subsidiary, Union Bank of India (UK) Ltd. The Gross Advance portfolio of the foreign branches stood at Rs. 37,657 crore as on 31st March 2026, compared to '36,919 crore as on 31st March 2025 and Net Profit of the foreign branches stood at Rs. 240 crore for FY 2025-26, compared to Rs. 190 crore for FY 2024-25.

10 Income and Expenditure:

Table 1: Income and Expenditure Statement

(Amt. Rs. in crore)

11 Profitability and Efficiency:

11.1Your Bank reported an Operating Profit of Rs. 28,620 crore in FY 2025-26 as compared to Rs. 31,090 crore in FY2024-25 with a growth of -7.95%.

11.2Net profit of your Bank stood at Rs. 18,697 crore in financial year 2025-26 as compared to Rs. 17,987 crore for financial year 2024-25 with a growth of 3.95%.

11.3Cost-to-income ratio of your Bank stood at 48.98% in FY 2025-26.

11.4During FY 2025-26, Return on Average Assets stood at 1.25%, whereas Return on Equity stood at 15.86%.

11.5 The following are the key productivity ratios of your Bank for FY 2025-26.

Table 3: Productivity

11.6During the Q4 FY2025-26, the Bank proactively strengthened standard assets provisioning coverage and has made additional provision of Rs. 700 Crore as contingency provision.

11.7 Dividend:

The Board of your Bank has recommended a dividend of Rs. 5/- per equity share of face value Rs. 10/- each for FY 2025-26 as compared to Rs. 4.75 for FY 2024-25.

12 Shareholders' Return:

12.1 Your Bank's net worth was Rs. 1,17,871.07 crore as on March 31,2026.

13 Asset Quality:

13.1Gross Non-Performing Assets (GNPA) of your Bank stood at Rs. 30,401 crore as on March 31, 2026 as compared to Rs. 35,350 crore as on 31st March 2025. GNPA as a percent of gross advances stood at 2.82 % as on March 31,2026 as compared to 3.60 % as on 31st March 2025.

13.2Net NPA of your Bank stood at Rs. 5,067 crore as on 7March 31, 2026 as compared to Rs. 5,969 crore as on 31st March 2025 and the Net NPA ratio stood at 0.48% as on March 31,2026 as compare to 0.63 % as on 31st March 2025.

14 Capital Adequacy:

14.1 The Capital Adequacy Ratio, as per BASEL III norms, stood at 18.10% as on March 31, 2026. Common Equity Tier I (CET I) capital of your Bank stood at 15.69% in March 31, 2026.

(Amt. Rs. in crore)

14.2 Capital Raised by your Bank

14.2.1 During the year 2025-26, the Bank has not raised any equity capital due to good internal accruals and comfortable capital position.

14.2.2 Bank has issued and allotted Senior, rated, listed, unsecured, redeemable, taxable, transferable long term fully paid-up non-convertible bonds in the nature of Debentures (Series I) eligible for financing of infrastructure & affordable housing of the Bank, of face value '1.00 Lakh each for cash at par aggregating Rs. 3,000 Crore on private placement basis.

15 Network

The branch network of your Bank is widely spread across the country with 8,695 branches and 2 overseas branches (Sydney, Dubai DIFC) as on March 31, 2026. Out of these 59 percent of the branches are in rural and semi-urban centres.

16 Awards & Accolades:

During FY 2025-26, your Bank received awards for various initiatives taken under the areas of Digitization, Financial Inclusion, HR management, Customer Service, MSME etc.

• Received the 1st Position Award in the category of "Best MSME Bank" and Runners up in the category "Best MSME Friendly Bank" on 22.12.2025 in the event MSME Banking Excellence Awards FY 24-25 conducted by Chamber of India Micro Small & Medium Enterprises (CIMSME).

• Received 1st prize in advance SOC category in National Critical Information Infrastructure Security Exercise (NCIIPC CII SECEX

• Runner up in 4th IBA CISO summit & Citations 2025 awards held in the month of June 2025

• Winner of Operational Cyber Readiness platform and Cyber Range at UBSF CISO conclave & awards

• DSCI Excellence Awards 2025: Winner of "Best Security Practices in the Banking Sector" at the DSCI Excellence Awards held in the month of Dec 2025

• Award for Best Technology bank of the year by IBA during 21st Annual Banking Technology Award 2025 in the event held on 09.01.2026.

• Received Straight Through Processing Excellence Award from CITI Bank for processing of cross border remittances

17 Branding and Marketing

In an ever-changing business landscape, branding has emerged as a key driver of identity and value creation. It is now a dynamic process shaped by customer experiences, digital interactions, and shared values. Effective branding is essential for building credibility, setting products and services apart, and accelerating growth in a competitive environment. Throughout the year, your Bank has demonstrated strong commitment to branding and marketing efforts, leveraging a wide mix of channels including print, television, radio, digital platforms, out-of-home advertising, and social media.

17.1 Traditional Media

Traditional media like print, television, radio, out of home advertising has played a central role in shaping public opinion, spreading information and building brand awareness. It is known for its wide reach, credibility and structured presentation of content, making it especially effective for reaching large and diverse audiences. During the years this medium was effectively utilized by spreading awareness of Bank's products and Services including Branding.

Advertisements of the Bank were released in national and regional dailies, magazines, radio stations, TV Channels, Out of Home Media connecting with audiences through Branding, new initiatives and disseminating the information on Products and Services.

17.2 Social Media

Your Bank disseminates information related to products and services through its social media platforms by publishing dynamic, engaging content in the form of static creatives and videos, aimed at enhancing customer awareness.

Your Bank Social Media Followers data as on 31.03.2026 is as follows:

Social Media Followers Data

In addition, awareness is generated through posts on social engineering, social causes, commemorative days, notable personalities, and public interest themes.

Your Bank has undertaken sustained efforts to promote cybersecurity awareness through the campaign "Cyber Security With U" and to encourage safe digital payment practices through "Pay Digital Stay Smart" across its social media platforms. Regular campaigns, informative posts, and digital safety advisories are disseminated to educate customers on secure transaction methods, fraud prevention, and responsible digital banking behaviour.

As part of these initiatives, the Bank actively shares guidance on identifying phishing attempts, safeguarding personal and financial information, and avoiding fake applications or fraudulent links. Your Bank has also released cybercrime awareness videos under the "Jamkar Phenko campaign", which encourages stakeholders to remain calm during suspicious calls or messages, refrain from sharing sensitive information, and promptly report fraud attempts through authorised cybercrime reporting channels.

Customers are consistently educated on the importance of not sharing sensitive credentials such as OTPs, UPI PINs, passwords, and card details.

These initiatives reflect the Bank's commitment to fostering a secure and well-informed digital banking environment, aligned with regulatory guidelines and evolving customer needs.

Your Bank maintains a 24x7 presence across all social media handles and ensures prompt responsiveness to customer queries. During the year, social media interactions were addressed efficiently through timely guidance, structured redirections, and robust grievance resolution mechanisms, contributing to enhanced customer service and satisfaction. Your Bank's brand presence has been well received, as reflected in 1415.77 lakh impressions and 118.98 lakh engagements during the period. Your Bank has built a strong social media presence, with the follower base increasing to 56.20 lakhs as on 31st March 2026.

Your Bank continues to monitor overall sentiment, gather feedback on initiatives, and assess customer interests to align product offerings and services with customer expectations.

17.3 Website

Your Bank has strengthened its digital presence by migrating its website domain from co.in to bank.in, in compliance with RBI guidelines aimed at enhancing customer trust in digital banking. Key enhancements include the introduction of a dedicated "Unauthorized Transaction" facility for prompt reporting of fraudulent activities, along with a strengthened grievance redressal mechanism to improve customer support.

Website content is regularly reviewed and updated to ensure relevance, accuracy, and clarity.

Further, timely updates regarding both planned and unplanned service disruptions are published on the website to ensure transparency and seamless customer communication.

18 Changes in the Directors on the Board of your Bank:

The following changes took place in the Board of Directors of your Bank during the financial year 2025-26.

• Shri Suraj Srivastava has been renominated as Part Time Non-Official Director on the Board of your Bank w.e.f. 11.04.2025 and completed his tenure on 10.04.2026.

• Ms. A. Manimekhalai, MD & CEO of your Bank, ceased to be MD&CEO on completion of her tenure w.e.f.03.06.2025.

• Shri Pankaj Dwivedi, Executive Director of your Bank, ceased to be Director as Central Government cancelled his appointment w.e.f. 24.06.2025.

• Shri Rohan Chand Thakur has been appointed as Government Nominee director on the Board of your Bank w.e.f. 24.07.2025 vice Shri Sameer Shukla.

• Shri Asheesh Pandey has been appointed as MD & CEO of your Bank w.e.f. 30.09.2025.

• Shri Srinivasan Varadarajan, Non-Executive Chairman and Part Time Non-Official Director of your Bank, ceased to be Director w.e.f. 07.11.2025.

• Shri Amresh Prasad has been appointed as the Executive Director on the Board of your Bank w.e.f. 24.11.2025.

• Dr. Debasish Prusty has been nominated as Government Nominee Director on the Board of your Bank w.e.f. 13.05.2026 vice Shri Rohan Chand Thankur.

19 Directors' Responsibility Statement

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

• The applicable Accounting Standards had been followed along with proper explanation relating to material departures, if any.

• Accounting Policies had been selected and applied consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of your Bank at the end of the financial year and of the profit and loss of your Bank for that period.

• Proper and sufficient care was taken for the maintenance of adequate Accounting Records in accordance with the provisions of the relevant Acts for safeguarding the assets of your Bank and for preventing and detecting fraud and other irregularities.

• The Annual Accounts were prepared on a going- concern basis.

• Internal financial controls had been laid down to be followed by your Bank, and such Internal Financial Controls were adequate and were operating effectively. Explanation.? For the purposes of this clause, the term "Internal Financial Controls" means the policies and procedures adopted by your Bank to ensure the orderly and efficient conduct of its business, including adherence to your Bank's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information.

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

20 Market capitalization of the Bank as published by Stock Exchanges*

* Vide Regulation 3(2) of the SEBI (LODR) Regulations, 2015.

Union Bank of India has been included in T+0 rolling settlement cycle by stock exchanges in equity cash markets.

Further, the top management of the Bank have held more interactions with the stakeholders of the Bank to enhance Bank's market perception.

21 Corporate Governance

The Board of your Bank is committed to adopting good Corporate Governance practices in letter and spirit. A detailed report on Corporate Governance is given in a separate section of the Integrated Annual Report. The Corporate Governance report for the financial year 2025-26 has no audit qualifications.

22 Corporate Social Responsibility (CSR):

22.1 Empowering Inclusive Growth:

Corporate Social Responsibility (CSR) is an integral part of a company's commitment to managing the social, environmental, and economic impacts of its operations in a responsible manner, aligned with public expectations. It encompasses the company's efforts to give back to the community, participate in philanthropic causes, and provide positive social value. Today, companies increasingly recognize the importance of CSR to make a difference and build a positive brand image. CSR can be categorized into different types, including environmental responsibility, ethical responsibility, philanthropic responsibility, and economic responsibility.

Union Bank focuses on inclusive growth, rural development, and supporting government initiatives. Your Bank drives projects that uplift marginalized communities and improve access to healthcare, education, and livelihood opportunities. Our rural development initiatives aim to empower rural areas and promote sustainable agriculture and skill development. The Bank actively collaborates with the government to support social progress and economic growth. Union banks remain dedicated to making a lasting social impact and fostering a more inclusive and prosperous society.

Union Bank allocates up to 1% of the previous year's published net profits towards voluntary CSR/ charitable activities, though it is not mandatory being a Public Sector Bank.

To facilitate and manage its CSR/charitable activities, your Bank established the Union Bank Social Foundation (UBSFT) on 2nd March, 2006.

The primary object of UBSFT is to uplift underprivileged communities and significantly improve the living standards of the poor and marginalized.

During FY 2025-26, total donation of Rs. 61.69 crore for 147 projects was approved by Union Bank Social Foundation & an amount of Rs. 35.88 crore was disbursed.

These initiatives span various areas of social responsibility and aim to make a meaningful impact on the communities we serve.

22.2Union Bank Social Foundation Trust (UBSFT)

To uplift underprivileged communities and significantly improve the living standards of the poor and marginalized, as an extended arm for carrying out CSR/charitable activities, the Bank set up Union Bank Social Foundation (UBSFT) as a Trust on 2nd March, 2006. UBSFT is registered under section 12AA and have obtained certificate under section 80G of the Income Tax Act, 1961.

The vision of UBSFT is to foster public-private initiatives and act as a catalyst for socioeconomic development. UBSFT aim to collaborate with other agencies to fulfil its obligations as a corporate citizen. The focus areas of UBSFT include improving healthcare, providing infrastructure and tools for education, and promoting continuous and sustainable skill development.

The mission of UBSFT is to launch, implement, participate in, fund, or otherwise assist programs and projects that contribute to the socio-economic development of individuals and communities.

The UBSFT Board is led by Bank's MD & CEO, with Executive Directors serving as Vice Chairman Trustees. Other trustees include Union Bank's 9 General Managers and an independent trustee. The UBSFT Board provides strategic direction aligned with Union Bank's CSR priorities and conducts regular reviews of activities. The Chief Executive of UBSFT oversees the execution of the Board's directives.

Union Bank has also established a Stakeholders Relationship Committee (SRC) at the apex level, comprising members of the Board of Directors, which inter alia monitor's the CSR activities of your Bank so also of UBSFT on a quarterly basis.

Some of the key activities carried out by Union Bank/ UBSFT in the field of social responsibility during FY 2025-26 include:

• Education and Skill Development: Supporting programs to enhance access to quality education, promote skill development, and empower individuals for a better future.

• Healthcare and Sanitation: Partnering with organizations to provide healthcare facilities, medical camps, sanitation infrastructure, and initiatives to promote general well-being.

• Livelihood Enhancement: Undertaking initiatives to promote livelihood opportunities, entrepreneurship, and economic empowerment of individuals and communities.

• Environmental Conservation: Engaging in activities that contribute to environmental sustainability, such as tree plantation drives, waste management programs, and promoting renewable energy.

• Rural Development: Implementing projects focused on rural infrastructure development, access to clean water, agriculture and farming techniques, and rural livelihood improvement.

• Natural calamities, disasters: Distribution of relief materials to flood affected victims & relief activities under disaster management.

22.3Welfare measures for Girl Child Development

• Scholarships - bridging the financial gap and act as a vital safety net, ensuring that academic merit is not stifled by poverty. A donation of Rs. 2,000/- per year to one girl child studying in 5th Standard in a Govt./Govt. aided school under the service area of each of the rural branches of Union Bank of India including the rural branches to be opened in future, towards education till 12th standard. The project has benefitted about 1718 girl children all across India the amount of scholarship disbursed stood at Rs. 34.36 lakh.

• Sanitation: Infrastructure for Dignity

-Construction of one toilet in a Govt./Govt.

aided girls' school in each of the Regions of Union Bank of India as part of Gandhi Jayanthi Celebrations. An amount of Rs. 171.28 lakh has already been spent towards construction of toilets in Govt/Govt. aided girls' schools across the different regions in India.

• Hygiene Management: Breaking the Taboo - Provided Sanitary Pad Vending Machine & a Sanitary Pad Disposal (Incinerator) at Govt/ Govt. aided girls' school/college under the jurisdiction of each of the Regional Offices of Union Bank of India as part of Gandhi Jayanthi Celebrations. An amount of Rs. 17.28 lakh has been spent towards this project.

23 EASE (Enhanced Access and Service Excellence)

The EASE Reforms Agenda, launched in FY 2018-19, aims to improve efficiency, transparency, digital capability, and customer focus in Public Sector Banks. Under EASE 7.0 (FY 2024-25) themed "Economic Development, Customer Delight, and Resilient Banking," the Bank secured 3rd position overall, ranking 1st in Theme 1 and 2nd in Themes 3 and 4.

EASE 8.0 (FY 2025-26), themed "EASErise - Risk & Resilience, Innovation, Socio Economic Impact, and Excellence," focuses on strengthening resilience, digital transformation, financial inclusion, customer experience, and support for emerging segments like startups and gig workers.

Under EASE 8.0 (FY 2025-26), the Bank made significant progress in digital banking, financial inclusion, governance, and asset quality by strengthening AI- driven collections, risk and IT resilience frameworks, multilingual and accessible banking services, ESG initiatives, and customer experience management. The Bank also introduced innovative products for salaried customers and gig workers, enhanced analytics and profitability monitoring capabilities, and implemented initiatives supporting financial literacy, inclusion, and employee well-being.

Under EASE 8.0 FY 2025-26, the Bank secured 2nd position in the Q1 and Q2 bank-wise rankings, achieving top-three positions across multiple themes and securing the top position in Q3 under Theme 3, "Socio-economic Impact.

As the Bank transitions to EASE 9.0, the progress achieved has strengthened its resilience, agility, and competitiveness, positioning it to effectively meet evolving economic and banking requirements while reinforcing its long-term strategic role in India's financial ecosystem.

EASERise (Pillar - II): Bank-specific 3-year Roadmap program:

As part of EASERise (Pillar-II) for bank specific strategic initiatives, Bank has prioritized the following 6 initiatives covering 37 measurable metrics with an objective of achieving the financial and non-financial aspirations:

• Sustainable growth in MSME

• Sustainable growth in Mid Segment Corporate

• Expanding Agriculture Investment Credit

• Strengthening Compliance & Enhancing Compliance Culture

• Enhancing Retail Deposit Mobilization

• Enhancing Customer Experience

These initiatives have helped the bank to drive balanced growth, strengthen risk and compliance frameworks, deepen customer relationships, and improve service delivery across segments.

24 Acknowledgements:

24.1The Directors thank the shareholders, customers, well-wishers, Share Transfer Agent and correspondents of your Bank in India and abroad for their goodwill, patronage, and support.

24.2The Directors acknowledge with gratitude the valuable and timely advice, guidance, and support received from the Government of India, Reserve Bank of India, Securities & Exchange Board of India, Insurance Regulatory and Development Authority of India, Central Vigilance Commission, BSE, NSE, financial institutions, correspondent Banks and Statutory Central Auditors of your Bank, in the functioning of your Bank.

24.3The Directors place on record their deep appreciation for the dedicated service and valuable contribution made by members of staff in the overall performance of your Bank during the year and look forward to their continued cooperation in the realisation of the corporate goals of your Bank in the years ahead.

24.4The Directors also express that the staff members stay safe, healthy and maintain good health.