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

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

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

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

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

FINANCIAL PARAMETERS

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

BASED ON STANDALONE FINANCIAL STATEMENTS

The income statement reflected a growth in revenue comprising
Net Interest Income and Non-Interest Income. While the
former grew by 4.9 per cent, the latter grew by 37.0 per cent
year-on-year. On an overall basis, Total Net Revenue for

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

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

Gross Non-Performing Assets
(GNPAs)

1.15 per cent

AMONGST THE LOWEST IN
THE INDUSTRY

MERGER

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

PARIVARTAN

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

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

1.    Rural Development

2.    Promotion of Education

3.    Skill Training & Livelihood Enhancement

4.    Healthcare & Hygiene

5.    Financial Literacy & Inclusion

6.    Natural Resource Management.

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

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

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

CSR Spend

H 1,316.18 crore

IN THE FINANCIAL YEAR 2025-26
CSR Beneficiaries

Over 10.7 crore

LIVES IMPACTED CUMULATIVELY (INCLUDING
BOTH IMMEDIATE AND EXTENDED BENEFICIARIES)

For further details on our CSR initiatives please refer to
pages: 194 to 231.

SUMMARY

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

Amid the geopolitical tensions, supply chain disruptions
trade-related uncertainties, and possibility of El Nino conditions,
the RBI has projected GDP growth of 6.6 per cent for FY 2026¬
27, while inflation is expected to gradually move up towards
5.1 per cent. Domestic growth conditions are expected to
remain supported by resilient consumption demand, improving
investment activity, continued momentum in the services sector,
and sustained government expenditure on infrastructure and
development projects.

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

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

These achievements have been enabled by the commitment
and dedication of our more than 2.11 lakh employees, whose
contributions continue to be pivotal to the Bank’s future. We

remain totally committed to attract, nurture, and retain top talent
and emerge as one of the industry’s premier employers.

MISSION AND STRATEGIC FOCUS

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

•    Customer Focus

•    Operational Excellence

•    Product Leadership

•    People

•    Sustainability

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

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

The Bank is focusing on:

•    Delivering a better experience and greater convenience
to customers

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

•    Expanding geographical reach

•    Cross-selling the broad financial product portfolio

•    Sustaining strong asset quality through disciplined credit
risk management

•    Maintaining competitive cost of funds

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

DIVIDEND

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

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

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

https://www.hdfc.bank.in/content/dam/hdfcbankpws/in/en/personal-banking/discover-products/about-us/corporate-gov-

ernance/codes-and-policies/dividend-distribution-policv.pdf

RATINGS

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

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

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

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

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

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

CAPITAL ADEQUACY RATIO (CAR)

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

TOTAL CAR

19.7 per cent

WELL ABOVE REGULATORY MINIMUM
REQUIREMENT OF 11.9 PER CENT

MANAGEMENT DISCUSSION AND ANALYSIS

MACROECONOMIC AND INDUSTRY
DEVELOPMENTS

The Indian economy demonstrated resilience during the
Financial Year 2025-26 despite an increasingly uncertain global
environment marked by trade-related disruptions, geopolitical
tensions and volatility in financial markets. India’s GDP is
estimated to have grown by 7.7 per cent during the Financial
Year 2025-26, compared to 7.1 per cent in the previous fiscal
year, supported by strong domestic demand conditions, easing

inflationary pressures, accommodative monetary policy, and
sustained public investment. GST rate cuts during the third
quarter of the year added further impetus to consumer demand.

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

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

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

India’s external sector remained relatively stable despite
heightened global volatility. The current account deficit
remained contained at 0.6 per cent of GDP during FY 2025¬
26, supported by resilient services exports and remittance
inflows. Merchandise and services exports recorded moderate
growth of 4.6 per cent during the year despite weaker external
demand conditions and tariff-related uncertainties across major
economies. On the positive side, progress on trade agreements
with key global partners, including the United States, the United
Kingdom, and the European Union, bodes well for medium-term
trade and investment prospects ahead.

Gross foreign direct investment flows remained healthy
during the year rising to US$ 94.8 billion, reflecting continued
confidence in India’s long-term growth potential and policy
environment. India also continued to benefit from global investor
interest in technology, digital infrastructure, manufacturing, and
artificial intelligence-led opportunities with capital flows into

sectors like electronics and data infrastructure. At the same
time, global financial market volatility and changing investor risk
appetite resulted in fluctuations in portfolio investment flows
and currency markets. Net portfolio investments saw an outflow
of US$ 16.4 billion in fiscal year 2026, due to heightened risk
sentiment following global tariff uncertainty and the outbreak
of war in West Asia.

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

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

At the same time, the outlook remains subject to evolving global
and domestic risks. While recent de-escalation in geopolitical
tensions has reduced immediate pressures on commodity
prices and global supply chains, uncertainty surrounding
global trade policies and financial market volatility warrant
close monitoring. The development of El Nino conditions and
uneven monsoon distribution, may also impact agricultural
production, rural demand, and food inflation during FY 2026¬
27. Any renewed increase in food and energy prices could lead
to tighter financial conditions and influence the future trajectory
of monetary policy.

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

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

FINANCIAL PERFORMANCE

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

TOTAL NET REVENUE

H 1,91,218.6 crore

13.6 PER CENT INCREASE IN THE
FINANCIAL YEAR 2025-26

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

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

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

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

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

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

NET PROFIT

H 74,671.3 crore

10.9 PER CENT INCREASE IN THE
FINANCIAL YEAR 2025-26

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

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

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

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

HDFC LIMITED’S BORROWING MATURITY
SCHEDULE

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

BUSINESS REVIEW

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

A. Domestic Business comprises the following:

Retail Banking

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

>    Maintaining Pristine Portfolio Quality

>    Strong Digital Offering and

>    Optimal Risk Pricing

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

Brief on segment performance:

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

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

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

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

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

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

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

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

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

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

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

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

SmartHub Vyapar: Empowering Indian Merchants

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

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

SmartGATEWAY: Building a Commerce-Ready
Platform

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

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

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

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

Our Distribution Channel

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

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

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

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

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

Retail Banking - Mortgage Business

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

The merger of India’s largest Housing Finance Company,
HDFC Ltd. with the largest private sector bank in India
combines the strength of a trusted home loan brand with
HDFC Bank's extensive branch network and ability to
leverage technology platforms.Home loans opened a fresh

Life Insurance

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

Non-Life Insurance

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

Wealth Management

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

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

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

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

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

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

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

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

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

Wholesale Banking

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Treasury

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

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

REVENUE OF

H 6,459.99 crore

FROM FOREIGN-EXCHANGE AND DERIVATIVE
TRANSACTIONS FOR FY 2025-26.

As a part of its prudent risk management, your Bank
enters into foreign exchange and derivatives deals with
counterparties after it has set up appropriate credit limits
based on its evaluation of the ability of the counterparty to
meet its obligations. Where your Bank enters into foreign

currency derivatives contracts not involving the Indian
Rupee with its customers, it typically lays them off in the
inter-bank market on a matched basis. Your Bank also
deals in derivatives on its own account including for the
purpose of its own balance sheet risk management.

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

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

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

B.    International Business

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

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

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

C.    Government, Institutions and New Economy
Businesses

Your Bank continues to grow the Government, Institution
and New Economy Businesses which are the fulcrum of the

larger liabilities business. Some of the key highlights and

new initiatives include:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

modes and real time validations, co-created in
partnership with fintechs, for government and
institutional customers

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

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

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

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

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

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

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

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

Semi-Urban and Rural

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

across Semi-Urban and Rural geographies with about 50
per cent of branches in these locations.

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

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

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

Agriculture and Allied Activities

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

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

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

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

transformed rural banking services, enabling delivery
of personalised offerings to meet the evolving needs of
customers in these markets effectively.

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

Participation in Government Schemes

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

Agriculture Infrastructure Fund (AIF) Scheme

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

Key achievements under the scheme:

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

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

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

Pradhan Mantri Formalisation of Food and Micro
Enterprises (PMFME)

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

of these, there have been disbursements to 9,434 projects
amounting to '1,713 crore.

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

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

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

Funding Small and Marginal Farmers (SMFs)

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

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

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

Farmer Producer Organisations (FPOs)

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

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

Gold Loans

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

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

Social Initiatives in Farm Sector

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

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

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

Micro, Small and Medium Enterprises (MSME)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sustainable Livelihood Initiative

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

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

E.    Environmental Sustainability

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

F.    Business Enablers

1.    People

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

2.    Leveraging Technology for Growth and
Technology Absorption

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

Establishing Enterprise-Scale AI Foundations

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

Accelerating AI Adoption Across the Bank

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

Advancing Digital Platforms and Core Systems:

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

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

Scaling Delivery Through Distributed Engineering

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

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

Preparing for the Next Wave of Innovation

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

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

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

Cybersecurity

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

A few of the key initiatives include:

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

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

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

evaluation of external facing assets, enabling timely
remediation of potential weaknesses.

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

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

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

6.    Cyber Resilience and Post Quantum Cryptography
(PQC): The comprehensive Cyber Crisis Management
Plan (CCMP) of the Bank strengthens its cyber
resilience by addressing a wide range of potential

attack scenarios and is being updated to incorporate
AI accelerated and deepfake enabled threats. The
Bank is strengthening its resilience posture through
development of Cyber Resilient arch itecture, near zero
Recovery Point Objective (RPO) strategies for critical
infrastructure, and quantum safe (PQC) security
initiatives to prepare cryptography, applications,
and data for quantum related risks. Bot protection,
Distributed Denial-of-Service (DDoS) resilience,
and real time behavioural analysis further enhance
perimeter and application layer defences.

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

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

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

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

Service Quality Initiatives and Grievance Redressal

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

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

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

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

Providing good customer service would be incomplete
without an effective internal Grievance Redressal
Mechanism/Framework. The Bank has developed a
comprehensive Grievance Redressal Policy, Customer
Rights Policy, Customer Compensation Policy, duly

approved by the Bank’s Board which outline a framework
for resolving customer grievances. These policies are
accessible to customers through the Bank’s website.

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

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

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

Risk Management and Portfolio Quality

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

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

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

>    Credit Risk, including residual risks

>    Outsourcing Risk

>    Market Risk

>    People Risk

>    Liquidity Risk

>    Business Risk

>    Operational Risk

>    Strategic Risk

>    Interest Rate Risk in the Banking Book

>    Compliance Risk

>    Intraday Liquidity Risk

>    Reputation Risk

>    Intraday Credit Risk

>    Technology Risk (Information Technology and
Information Security)

>    Credit Concentration Risk

>    Third Party Products Risk

>    Group Risk (various risks pertaining to subsidiaries)

>    Model Risk

Credit Risk

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

the lending environment by stringently adhering to prudent
norms and institutionalised processes.

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

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

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

Credit Risk Emanating from Digital Lending

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

Market Risk

Market Risk primarily arises from your Bank's statutory
reserve management, trading positions categorised into
Held for Trading (HFT) Portfolio of the Bank and all other
instruments in Available for Sale (AFS) and Fair Value
Through Profit and Loss (FVTPL), other than HFT, which are
being marked to market on a regular basis. These risks are
managed through a well-defined Board approved policy,
including the Market Risk Policy, Investment Policy, Foreign
Exchange Dealing Policy, and Derivatives Policy that caps

risk in different desks exposed to marked-to-market
through Market risk limits/triggers. Risk measures such as
position limits, tenor restrictions, sensitivity limits, namely:
PV01, Modified Duration of Hold to Maturity Portfolio and
Option Greeks, Value-at-Risk (VaR) Limit, Stop Loss Trigger
Level (SLTL), Scenario-based P&L Triggers, Potential
Loss Trigger Level (PLTL), YTD Trigger for AFS book are
monitored on an end-of-day basis by Treasury Mid office.
Additionally, forex open positions, currency option delta,
and interest rate sensitivity limits are computed and
monitored on an intraday basis. This is supplemented by a
Board-approved stress testing policy and framework that
simulates various market risk scenarios to measure losses
and initiate remedial measures. Your Bank's Market Risk
capital charge is computed daily using the Standardised
Measurement Method applying the regulatory factors.

Liquidity Risk

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

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

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

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

Operational Risk

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

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

Framework and Process

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

Three Lines of Defense model for Operational
Risk Management ²

exception reporting and periodic MIS. Specialised risk
control units operate in risk- prone products/ functions to
minimise operational risk. These controls are tested as part
of the SOX control testing framework.

C. Technology Risk (Information Technology and
Information Security)

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

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

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

c.    Additionally, vulnerability management of the Bank’s
internet properties, penetration testing, antivirus /

anti-malware programme, etc. minimise the surface
area for cyber security attacks.

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

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

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

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

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

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

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

Your Bank has a well-defined Business Continuity and
Disaster Recovery plan that is periodically tested to ensure
that it can meet any operational contingencies. Further,
there is a well-documented crisis management plan in
place to address the strategic issues of a crisis impacting
the Bank and to direct and communicate the corporate

response to the crisis including cyber crisis. In addition,
employees periodically undergo mandatory business
continuity awareness training and sensitisation exercises
on a periodic basis.

For details on Business Continuity Management,
Information and Cyber Security Practices and Data
Privacy Measures, please refer page 116 to 123 and
273 &282.

D. Fraud Monitoring and Control

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

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

Compliance Risk

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

Group Risk

Your Bank has a diverse set of subsidiaries including
NBFC, AMC, Life Insurance, General Insurance, Venture
Capital entities, amongst others. To manage the risk arising
from subsidiaries with regard to potential uncertainties

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

Group Oversight Framework:

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

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

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

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

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

Model Risk

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

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

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

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

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

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

Climate Risk

Climate change risks are categorised into:

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

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

The CSR and ESG committee of the Board oversees
the Bank’s sustainability and climate change initiatives.
This Committee monitors the ESG policy framework,
the Environmental Policy framework, actionables and

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

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

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

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

Stress Testing Framework

Your Bank’s Board-approved Stress Testing Policy
and Framework is an integral part of its Internal Capital
Adequacy Assessment Process (ICAAP). Stress testing
employs various methods to evaluate the Bank’s potential
vulnerability to extreme but plausible stressed business
conditions. The changes in the levels of Pillar I risks and
select Pillar II risks, along with changes in the Bank’s on

and off-Balance Sheet positions, are assessed under
assumed ‘stress’ scenarios and sensitivity factors. The
suite of stress scenarios includes topical themes based
on prevailing geopolitical / macroeconomic / sectoral
and other trends. Stress testing outcomes are analyzed
depending on the scenarios through capital impact and/
or identification of vulnerable borrowers.

Business Continuity Planning (BCP)

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

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

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

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

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

Internal Controls, Audit and Compliance

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

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

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

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

b)    Dual custody over cash and near-cash items

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

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

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

f)    Stringent password policy

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

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

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

j)    Audit logs directly extracted from systems

k)    Empowerment grid

Your Bank also has detective controls in place:

a)    Periodic review of user IDs and its usage logs

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

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

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

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

f)    Independent and surprise checks periodically
by supervisors.

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

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

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

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

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

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

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

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

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

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

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

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

Performance of Subsidiary Companies

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

Amongst the Bank’s key subsidiaries, HDFC Life
Insurance Company Limited and HDFC ERGO General
Insurance Company Limited prepare their financial results
in accordance with Indian GAAP and other subsidiaries

do so in accordance with the notified Indian Accounting
Standards (‘Ind-AS’).

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

The detailed financial performance of the companies is
given below.

HDFC Life Insurance Company Limited (HDFC Life)

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

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

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

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

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

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

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

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

HDB Financial Services Limited (HDBFSL)

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

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

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

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

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

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

Consumer Loans

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

Enterprise Loans

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

Asset Finance

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

tractor-related implements to meet both agricultural and
commercial needs.

Micro Lending

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

Fee-Based Products / Insurance Services

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

BPO Services

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

Digital Presence

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

HDFC ERGO General Insurance Company Limited
(HDFC ERGO)

HDFC ERGO General Insurance Company Limited (HDFC
ERGO), a subsidiary of HDFC Bank offers a comprehensive
bouquet of general insurance products - ranging from

Health, Motor, Travel, Home, Personal Accident and Cyber
Insurance for its retail customers. It also offers products
like Property, Engineering, Marine and Liability Insurance
to its SME and Corporate Customers as well as Crop and
Cattle Insurance for Rural Customers. Aligned with the
IRDAI’s vision of ‘Insurance for All by 2047’, HDFC ERGO
focuses on strengthening awareness, accessibility and
affordability to enable long-term financial security.

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

31,2025.

Distribution Network

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

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

Product Segments

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

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

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

Rural and Agri Business: HDFC ERGO’s rural market
development activities are spearheaded by crop insurance
covering a large agrarian population which is frequently
affected by crop losses attributable to an irregular climatic
pattern. It is the fourth largest insurer in the private sector
in the crop insurance segment in the Financial Year 2025¬
26. HDFC ERGO also supports deepening insurance
penetration in rural India via its Common Service Centre
(CSC) channel.

Building trust on insurance sector

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

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

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

Digital Insurer

HDFC ERGO continues to invest in developing robust
digital capabilities to ensure long-term success in the
digital landscape. Its transition of the policy administration

system to Duck Creek marks a significant stride towards
future readiness and unlocking growth. During the year,
platform coverage expanded across products in retail,
health and fire facilitating seamless customer experience
supported by rule-based processing and omni channel
unified journeys.

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

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

Sustainability

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

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

HDFC Asset Management Company Limited
(HDFC AMC)

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

As the investment manager to HDFC Mutual Fund - one
of India’s leading mutual funds - HDFC AMC reported
a closing AUM of over ' 8,43,994 crore, representing a

market share of 11.4 per cent as on March 31,2026. It serves over 1.67 crore unique investors through 3.02 crore live accounts.
With a strong nationwide presence across 280 offices and a network of over 1.09 lakh distribution partners, HDFC AMC is
further enabled by modern digital platforms, ensuring broad and efficient access for clients across India.

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

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

HDFC Securities Limited (HSL)

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

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

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

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

Highlights for FY 2025-26:

Being a SEBI registered stockbroker, HSL's financial
performance, inter alia, is also subject to macroeconomic

developments and gyrations emanating from various
market dynamics.

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

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

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

OTHER STATUTORY DISCLOSURES

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

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

Annual Return

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

Requirement for maintenance of cost records

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

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

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

Directors’ Responsibility Statement

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

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

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

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

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

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

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

Compliance with Secretarial Standards

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

Statutory Auditors

The Members of the Bank at the 30^th Annual General Meeting held
on August 9, 2024 had approved the appointment of M/s. Batliboi
& Purohit, Chartered Accountants (ICAI Firm Registration No.

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

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

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

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

-    Excludes outlays and taxes

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

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

Corporate Social Responsibility and ESG

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

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

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

Particulars of Contracts or Arrangements with Related
Parties

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

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

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

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

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

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

Particulars of Loans, Guarantees or Investments

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

Material Development

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

Financial Statements of Subsidiaries

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

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

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

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

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

Disclosure under Foreign Exchange Management Act, 1999
(“FEMA”)

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

Whistle Blower Policy / Vigil Mechanism

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

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

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

a)    breach of applicable law;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Statement on Declaration by Independent Directors

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

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

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

Performance Evaluation of Board of Directors

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

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

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

The evaluation for FY 2025-26 reaffirmed that the Board
continues to function at a high level of effectiveness across most
parameters. The Directors noted meaningful improvements
in the depth and quality of strategic discussions, more

focused deliberation on business priorities, and strong overall
committee performance. The Directors also appreciated
the Board level Committees for their discipline, rigour, and
well-structured oversight.

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

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

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

Policy on Appointment and Remuneration of Directors and
Key Managerial Personnel

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

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

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

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

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

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

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

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

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

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

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

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

Remuneration to NEDs

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

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

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

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

Succession Planning

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

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

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

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

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

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

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

Significant and Material orders passed by Regulators

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

Directors and Key Managerial Personnel

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

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

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

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

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

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

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

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

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

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

Particulars of Employees

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

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

Compliance with Maternity Benefit Act, 1961

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

Conservation of Energy and Technology Absorption

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

Foreign Exchange Earnings and outgo

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

Secretarial Audit

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

Internal Financial Control

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

Corporate Governance

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

Business Responsibility and Sustainability Report

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

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

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

Customer complaints and grievance redressal

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

Unclaimed Deposits of HDFC Limited

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

In accordance with applicable provisions of the Act read with
Investor Education and Protection Fund Authority (Accounting,
Audit, Transfer and Refund) Rules, 2016, as amended, HDFC
Limited, has transferred deposits remaining unclaimed for a
period of 7 (Seven) years up to June 30, 2023, to the Investor
Education and Protection Fund (IEPF) established by the Central
Government. The deposit holders of HDFC Limited can claim
their respective unclaimed deposits from IEPF. The process of
claiming the deposits from IEPF is uploaded on the website of
the Bank. Post merger of HDFC Limited with and into the Bank
i.e. effective July 1,2023, the Bank has been transferring all the
unclaimed deposits of HDFC Limited (remaining unclaimed for
more than 10 years) to the DEA Fund.

Acknowledgement

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

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

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

Conclusion

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

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

On behalf of the Board of Directors

Keki M. Mistry    Sashidhar Jagdishan

Interim Part-time Chairman    Managing Director and

and Non-Executive (Non-    Chief Executive Officer

Independent) Director

Place : Mumbai
Date : June 18, 2026

1

Commercial Paper has ‘NIL’ outstanding as on 31^st March 2026.

2

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

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

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

•    Monitoring of risk through Key Risk Indicators (KRI)

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

B. Internal Control

Your Bank has implemented sound internal control practices
across all processes, units, and functions. It has well-
defined policies and processes for managing day-to-day
activities. Your Bank follows well-established and designed
controls, including the traditional four eye principles,
effective segregation of business and support functions,
segregation of duties, call back processes, reconciliation,