Your Board of Directors (“Board”) is pleased to present the Eighteenth Annual Report on the business and operations of the Bank together with the Audited Financial Statements of the Bank and Independent Auditors’ Report for the Financial Year (“FY”) ended March 31, 2026.

A. FINANCIAL SUMMARY AND HIGHLIGHTS

The Bank’s performance during the FY ended March 31, 2026, as compared to the previous FY is summarized below:

a) Key Performance Highlights:

• The Net Interest Income of the Bank for the year was H1,098.7 Crores as compared to H1,106.1 Crores in the previous year.

• The Bank has achieved a Profit of H152 Crores for the year ended March 31, 2026, as compared to Profit of H 115.0 Crores in the previous year.

• The Gross Loan Portfolio witnessed a jump of 29.4% to H 13,261 Crores (Including IBPC) and there was a substantial rise in deposits by 32.2% from H10,579.6 Crores to H 13,994 Crores.

• The Balance sheet size grew to H 19,884 Crores as on March 31, 2026, as compared to H 15,614.4 Crores as on March 31, 2025 (YoY growth of 27.34%).

• The CASA constituted 22.6% of the overall deposits of the Bank.

• The Capital Adequacy Ratio (“CRAR”) was 20.45% as on March 31, 2026 (March 31, 2025: 25.8%) as compared to the statutory minimum required 15%.

• The Provision Coverage Ratio (“PCR”) as on March 31, 2026 was at 37.3% and including the CGFMU benefit, PCR was at 96.65%.

• Cost to Income ratio for the year ended March 31, 2026 was 73.7% as compared to 70.6% for the previous year. The Return on

Assets remained unchanged at 0.9% in FY’26, consistent with 0.9% in FY’25.

• The number of banking outlets increased from 710 as on March 31, 2025 to 717 as on March 31, 2026, including, 197 Unbanked Rural Centres.

B. OVERVIEW OF BUSINESS & OPERATIONS

In a challenging global macroeconomic and geopolitical environment, marked by persistent inflationary pressures and evolving monetary policies, the global economy witnessed moderate growth during FY 2025-26. Despite these headwinds, the Indian economy continued to demonstrate resilience, supported by strong domestic demand, infrastructure-led growth, and ongoing policy reforms, thereby strengthening its position in the global economic landscape.

The banking and financial sector played a crucial role in sustaining this growth momentum, contributing to overall financial stability and economic development. The sector remained well-capitalised and resilient under the regulatory oversight of the Reserve Bank of India, although relatively tight liquidity conditions led to increased competition for deposits. The overall environment continues to present significant opportunities for Small Finance Banks to deepen financial inclusion and expand access to formal banking services.

During FY 2025-26, the Bank continued to demonstrate resilience across its core business segments while progressing on its strategic priorities. The Bank sustained growth in advances and deposits, supported by a continued focus on retail deposit mobilisation, customer engagement, and a diversified product suite.

During the year, the Bank faced continued challenges in the Micro Finance segment, in line with industrywide stress. To address these challenges, the Bank has adopted a calibrated and disciplined approach, including strengthening underwriting standards, moderating incremental disbursements, and enhancing collection efficiencies to safeguard asset quality. Notably, disbursements in Inclusive Finance witnessed a recovery towards pre-stress levels in the fourth quarter of FY 2025-26, reflecting early signs of stabilization in the portfolio.

The Bank has been subscribing to the Credit Guarantee Fund for Micro Units ("CGFMU”) scheme since FY 2022-23, which has continued to provide support during the period of stress. During the year, the Bank has received claims of approximately H 370 Crore under CGFMU, with additional claims under process, thereby helping to mitigate the credit risk and support capital protection.

The Bank continued its strategic focus on secured assets, with sustained momentum in products such as mortgage and commercial vehicle financing. During the year, the Bank has launched new secured product lines, including Machinery Finance and Gold Loans. These initiatives have contributed to a gradual improvement in the portfolio mix, with an increasing share of non-microfinance assets. This transition remains aligned with the Bank’s objective of achieving a balanced, diversified, and lower-risk growth profile.

The Bank has strengthened its liability franchise through steady growth in granular retail deposits, driven by customer-centric products and a hybrid distribution model. Digital deposits now constitute 14% of total deposits and -40% of retail deposits within one year.

Further, the Bank also accelerated digital initiatives and partnerships, launching products such as Credit on UPI and a Secured Credit Card.

The Bank remained committed to sustainable growth, supported by a strong regulatory compliance framework, prudent risk management practices, and continued investments in digital capabilities and customer-centric offerings.

The Bank shall be focussing on the following during FY 2026-27:

a) Microbanking: Sustaining focus on Individual Loans with continued coverage under government-backed credit guarantee schemes, while building on the recovery

momentum witnessed towards the end of FY 2025-26. Continuing to capitalize on growth opportunities in the MSME segment by leveraging deep customer relationships and distribution capabilities.

b) Retail Assets: Driving deeper market penetration and maintaining momentum in secured products such as Mortgage and Commercial Vehicle Finance to achieve a balanced and lower-risk growth profile. Scaling up newer product lines, including Machinery Finance and Gold Loans, while maintaining a strong focus on asset quality. Continuing to offer a comprehensive suite of deposit and lending products catering to diverse customer segments, with emphasis on innovation and long-term financial solutions.

c) Digital Banking: Accelerating the Bank’s digital journey through strategic partnerships to offer a wider range of products and services. Launching new digital offerings and enhancing customer reach through scalable, technology-led solutions, while strengthening the digital product portfolio, including Credit on UPI and Secured Credit Cards.

C. DIVIDEND

The Bank has formulated and implemented a Dividend Distribution Policy pursuant to Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations”), the applicable provisions of the Companies Act, 2013 ("Act”), the circulars / guidelines / directions issued by the RBI with an objective to appropriately reward the shareholders through dividends for reposing their confidence in the Bank while retaining the capital required for supporting future business growth. The said Policy is available on the website of the Bank at:- https://suryoday.bank.in/assets/ pdf/policies/suryoday-dividend-distribution-policy-fy-26-27-1.0.pdf.

In line with the aforementioned Policy and considering the Bank’s financial performance during the FY 2025-26, the Board of Directors at their meeting held on May 07, 2026, has recommended a Final Dividend of H 1.50 per Equity Share of face value H 10/- (Rupees Ten only) each fully paid-up (i.e., 15% of the face value) for the FY ended March 31, 2026, subject to approval by the Shareholders at the ensuing 18^th Annual General Meeting ("AGM”) of the Bank to be held on Thursday, August 06, 2026. The aforesaid dividend, if declared by the Shareholders at the 18^th AGM shall be paid to the Shareholders within 30 days from the date of approval / declaration by the members of the Bank in the 18^th AGM. The Record date fixed for determining the entitlement of Members to the Dividend for FY ended March 31, 2026, is Friday, July 17, 2026.

Pursuant to the provisions of the Income Tax Act, 2025, as amended by the Finance Act, 2026 and the Rules framed thereunder, the dividend income is taxable in the hands of the members, therefore, the dividend will be paid to the members by your Bank after Deduction of Tax at Source (“TDS”) at the applicable rates or Tax treaty, at the time of making payment of the dividend.

D. TRANSFER TO RESERVES

As per the requirements of the RBI Regulations and other applicable Regulations, the Bank has transferred to/(Transfer from) the following amounts to various reserves during FY ended March 31, 2026:

Amount transferred to/(from) J in Crores

Statutory Reserve 37.99

Capital Reserve 13.01

Investment Fluctuation (1.48)

Reserve

E. TRANSFER TO THE INVESTOR EDUCATION AND PROTECTION FUND (“IEPF”)

In accordance with Section 124 and 125 of the Act read with the Investor Education and Protection Fund (“IEPF”) Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (as amended from time to time), all the equity shares of the Bank in respect of which dividend amounts have not been paid or claimed by the shareholders for seven consecutive years or more are required to be transferred to demat account of IEPF Authority. As, the Bank has not declared any dividend since its inception hence, there was no unclaimed/unpaid dividend or shares of the Bank liable to be transferred to IEPF during FY 2025-26.

F. CHANGE IN NATURE OF BUSINESS

There has been no change in the nature of business of the Bank during the year under review.

G. SHARE CAPITAL

a) Authorised capital:

During the year under review, there was no change in the Authorised Share Capital of the Bank and as at March 31, 2026, the Authorised Capital of the Bank stood at H 150,00,00,000 (Rupees One Hundred and Fifty Crores) divided into 15,00,00,000 (Fifteen Crores) Equity Shares of H 10 (Rupees Ten) each.

b) Issued, Subscribed and Paid up Capital:

During the year under review, the Bank has issued and allotted 5,000 (Five Thousand only) Equity Shares of face value of H 10/-(Rupees Ten) each pursuant to the exercise of Options by the employee(s) of the Bank under Suryoday ESOP Scheme-2019 (“ESOP Scheme, 2019”). Consequently, there has been increase in Paid-up capital of the Bank, from H 106,28,48,240/- (Rupees One Hundred Six Crores Twenty-Eight Lakh Forty-Eight Thousand Two Hundred and Forty Only) divided into 10,62,84,824 (Ten Crores Sixty-Two Lakh Eighty-Four Thousand Eight Hundred and Twenty-Four only) Equity Shares of H 10/- (Rupees Ten) each to H 106,28,98,240/-(Rupees One Hundred Six Crores Twenty-Eight Lakh Ninety-Eight Thousand Two Hundred and Forty Only) divided into 10,62,89,824 (Ten Crores Sixty-Two Lakh Eighty-Nine Thousand Eight Hundred and Twenty Four only) Equity Shares of H10/- (Rupees Ten) each fully paid-up as on March 31, 2026.

c) Issue of Equity Shares with Differential Rights and / or Sweat Equity Shares

During the year under review, the Bank has neither issued any equity shares with differential rights nor any Sweat Equity shares.

d) Debt Instruments

As at March 31, 2026, the Bank had one series of Debentures issued on Private placement basis consisting of 1000 Nos. of 12.5% Rated, Listed, Unsecured, Subordinated, Redeemable Lower Tier II Bonds in the form of Non-Convertible Debentures having face value of H 10 Lakhs each, amounting to H 100 Crores, which are listed on BSE.

During the FY 2025-26, the Bank has not issued any debentures, bonds or any non-convertible securities or warrants.

I. CAPITAL ADEQUACY RATIO

a) As per operating guidelines for Small Finance banks, the Bank is required to maintain a minimum Capital Adequacy Ratio (“CRAR”) of 15% with minimum Common Equity Tier I (CET I) of 6%.

b) As at March 31, 2026, the CRAR of the Bank stood at 20.45% well above the regulatory minimum requirement of 15%. Tier I ratio of the Bank stood at 19.59% well above the regulatory requirement of 6% and Tier II capital was at 0.86%.

J. PERFORMANCE AND FINANCIAL POSITION OF SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE COMPANIES

The Bank did not have any Subsidiary, Associate or Joint Venture Company during FY 202526. Accordingly, no statement is required to be reported in Form AOC-1.

K. ANNUAL RETURN

The Annual Return as mandated under the provisions of Section 92(3) read with Section 134(3)(a) of the Act in prescribed Form MGT-7 is available on the website of the Bank and the same can be accessed at https://survodav.bank.in/assets/pdf/form-mgt-7-annual-return-financial-year-2025-26.pdf

L. BOARD OF DIRECTORS

The composition of the Board is governed by the relevant provisions of the Act, and the rules made thereunder, the SEBI Listing Regulations, the Banking Regulation Act, 1949 (the “BR Act”), the Guidelines/ Regulations/Circulars issued by the RBI, as amended, from time-to-time and all other applicable laws and the Articles of Association of the Bank.

As of March 31, 2026, and also as on the date of this Report, the Board has an optimum combination of Executive and Non-Executive Directors with Independent Directors constituting more than one-half of its total strength. As on March 31, 2026, the Board comprised of Ten (10) Directors, consisting of Seven (7) Independent Directors, including One (1) Woman Independent Director, One (1) Managing Director & Chief Executive Officer (“Managing Director & CEO”), One (1) Whole-time Director (“Executive Director”) and One (1) Non-Executive Non-Independent (Investor) Director (“Investor Director”), overall representing to 70% Independent Directors and 30% Non-Independent Directors.

None of the Directors of the Bank is disqualified as per provisions of Section 164(2) of the Companies Act, 2013. The Directors have provided necessary disclosures, as required under various provisions of the Companies Act, 2013, SEBI Listing Regulations and RBI guidelines.

Further, the certificate pursuant to Regulation 34(3) and sub-clause (i) of Clause 10 of Para C of Schedule V of the SEBI Listing Regulations for the FY ended on March 31, 2026, issued by Tushar Shridharani & Associates LLP, Practicing Company Secretaries (LLPIN - ACL-9350| Unique Code: L2025MH018100) confirming that none of the Directors on the Board of the Bank have been debarred or disqualified from being appointed or continuing as Directors of the Bank by the Securities Exchange Board of India (“SEBI”)/ the Ministry of Corporate Affairs (“MCA”) or any such statutory authority, is attached as Annexure-1 to this Report.

During the FY 2025-26 and after the end of financial year up to the date of this report, following changes took place in the Board of Directors of the Bank:

a) Appointments:

i. The Shareholders of the Bank vide Special Resolution passed through Postal Ballot on April 15, 2025, accorded their approval for the appointment of Mr. Vivek Anant Karve (DIN: 06840707) as a Non-Executive Independent Director of the Bank to hold office for a period of Five (5) consecutive years effective from January 21, 2025 upto January 20, 2030 (both days inclusive), not liable to retire by rotation.

ii. Basis the recommendations made by the Nomination and Remuneration Committee (“NRC”), the Board of Directors of the Bank at their meeting held on March 12, 2026, had appointed Mr. Sunil Satyapal Gulati (DIN:00016990) and Mr. Alok Sethi (DIN:00277481) as Additional Directors (under Non-Executive Independent category) on the Board of the Bank with effect from March 12, 2026. The Board, also subject to the approval of the Shareholders of the Bank, had appointed Mr. Sunil Satyapal Gulati (DIN:00016990) and Mr. Alok Sethi (DIN:00277481) as a NonExecutive Independent Directors on the Board of the Bank for a period of Five (5) consecutive years effective from March 12, 2026 to March 11, 2031 (both days inclusive), not liable to retire by rotation. As permissible under the applicable provisions of the Act and the Rules made thereunder, the SEBI Listing Regulations and pursuant to the Circulars issued in this regard by the MCA and SEBI, the Board at its meeting held on May 07, 2026 had accorded its approval for seeking approval of the Shareholders of the Bank through Postal Ballot Process for the appointment of Mr. Sunil Satyapal Gulati (DIN:00016990) and Mr. Alok Sethi (DIN:00277481) as an Independent Directors of the Bank for a period of Five (5) consecutive years effective from March 12, 2026 to March 11, 2031 through Special Resolution. Subsequently,

is liable to retire by rotation at the ensuing AGM and, being eligible, has offered himself for re-appointment, to hold office upto November 01, 2026 (i.e. upto completion of his total term of 8 years as permissible under the provisions of the BR Act). Accordingly, the proposal for his re-appointment as a Director, to hold office up to November 01, 2026, in accordance with the BR Act and the applicable circulars and regulations issued by the RBI from time to time, will be placed before the Shareholders for approval at the ensuing AGM.

d) Directors and Officers Liability Insurance Policy:

The Bank has a Directors and Officers Liability Insurance Policy, which protects Directors and Officers of the Bank for any breach of fiduciary duty. Further, the Board is apprised about the insurance coverage under the said Policy annually.

e) Director e-KYC (DIR-3 KYC):

All the Directors of the Bank have complied with timely submission of Form DIR-3 KYC during the FY 2025-26.

M. KEY MANAGERIAL PERSONNEL

As of March 31, 2026, Mr. Baskar Babu Ramachandran (DIN:02303132), Managing Director & CEO, Mr. Hemant Premchand Shah (DIN:10548728), Whole-time Director (Executive Director), Mr. Kanishka Chaudhary, Chief Financial Officer and Mr. Krishna Kant Chaturvedi, Company Secretary & Compliance Officer, were the Key Managerial Personnel of the Bank in terms of Section 203(1) of the Act and Rule 8 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. No changes in the Key Managerial Personnel during the FY 2025-26.

N. CODE OF CONDUCT FOR DIRECTORS AND SENIOR MANAGEMENT

Pursuant to Regulation 17(5) of SEBI Listing Regulations, the Bank has implemented a Code of Conduct for Directors and Senior Management Personnel (“SMPs”). This code attempts to set forth the guiding principles on which the Directors and SMPs of the Bank shall operate and conduct the Bank’s business with its various stakeholders. All the Directors and SMPs have affirmed their adherence to the Code for FY 2025-26 and a declaration by the Managing Director & CEO to this effect forms part of Report on Corporate Governance. The Bank’s Code of Conduct for Directors and SMPs can be accessed on the website of the Bank at:- https://suryoday. bank.in/assets/pdf/policies/suryoday-code-of-conduct-applicable-to-directors-&-sr-mgmt-of-the-bank-fv-26-27-1.0.pdf.

Committee on Customer Service, New Product Approval Committee, Executive Credit Committee, Management Committee for Staff Accountability, Information Security Steering Committee (ISSC), IT Steering Committee, Executive Committee (EXECOM), Internal Complaints Committee etc.

Q. MEETING OF INDEPENDENT DIRECTORS

As per the requirement of Section 149(8) read with Schedule IV of the Act and Regulation 25 of the SEBI Listing Regulations, a meeting of the Independent Directors of the Bank is required to be held at least once a year in absence of non-independent directors and members of the management.

During the year under review, Two (2) meetings of Independent Directors of the Bank were held on May 06, 2025, and November 05, 2025, and various matters were discussed & reviewed at the meeting inter-alia covering the following:

• The quality, quantity, and timeliness of flow

of information between the management

of the Bank and the Board of Directors that is necessary for the Board of Directors to effectively and reasonably perform their duties;

• Review of Performance of Non-Independent Directors, the Board of Directors as a whole, Chairperson of the Bank;

• Whether adequate time is spent by the Board/ Committees on discussions on important issues.

• Review of the existing corporate

governance practices.

• Review of the Report on directives and

suggestions from the previous meeting of

Independent Directors.

R. STATEMENT ON DECLARATION BY INDEPENDENT DIRECTORS

All the Independent Directors have submitted the required declarations that they meet the criteria of Independence as laid down under Section 149(6) and 149(7), Schedule IV of the Act and Regulation 16(1)(b) and Regulation 25(8) of the SEBI Listing Regulations. The Board had assessed the veracity of the confirmations submitted by the Independent Directors, as required under Regulation 25(9) of the SEBI Listing Regulations.

Pursuant to the Companies (Creation and Maintenance of Databank of Independent Directors) Rules, 2019 read with the Companies (Appointment and Qualifications of Directors) Rules, 2014, the Independent Directors of the Bank have successfully registered their names in the online databank of Independent Directors maintained & administered

by the Indian Institute of Corporate Affairs. The Independent Directors have also confirmed that they were not aware of any circumstance or situation which existed or may be reasonably anticipated, that could impair or impact their ability to discharge their duties with an objective independent judgement and without any external influence.

In the opinion of the Board, all the Independent Directors are independent of the Management.

During the year, there has been no change in the circumstances affecting their status as Independent Directors of the Bank and they are not debarred from holding the office of Director under any SEBI Order or any other statutory authority.

The Bank has also received from its Directors, a statement that they have complied with the Code of Conduct for Directors and Senior Management of the Bank.

S. STATEMENT REGARDING OPINION OF THE BOARD WITH REGARD TO INTEGRITY, EXPERTISE AND EXPERIENCE (INCLUDING THE PROFICIENCY) OF THE INDEPENDENT DIRECTORS APPOINTED DURING THE YEAR

In the opinion of the Board, the Independent Directors are persons of integrity and possess the requisite experience, expertise and proficiency required under all applicable laws and the policies of the Bank.

T. POLICY ON APPOINTMENT AND REMUNERATION OF DIRECTORS, KEY MANAGERIAL PERSONNEL AND SENIOR MANAGEMENT

As per the provisions of sub-section (3) of Section 178 of the Act, the Bank has a Policy on appointment of Directors and Senior Management employees which includes formulating criteria for determining qualifications, attributes and independence of a Director.

This Policy has been disclosed on the Bank’s website at:- https://suryoday.bank.in/assets/pdf/policies/ survodav-compensation-policv-fv25-26-1.0.pdf and https://suryoday.bank.in/assets/pdf/policies/policy-on-appointment-of-directors-and-senior-managerial-personnel-fv-26-27-1.0.pdf

The Board has, in accordance with the RBI guidelines on compensation, formulated the Compensation Policy which became effective in FY 2020-21, as amended from time to time. The Compensation Policy institutes a mechanism for alignment of compensation of Whole-time Directors, Chief Executive Officer, Material Risk Takers, Control Function Staff and other Senior Managerial Personnel with the extent of risks taken. The

Policy also establishes standards of compensation including fixed and variable, which are in alignment with the applicable rules and regulations including the RBI guidelines in this regard and which is based on the trends and practices of remuneration prevailing in the banking industry. The remuneration of Whole-time Directors, Material Risk Takers, Key Managerial Personnel and Senior Management is governed by the Compensation Policy of the Bank. This Policy has been disclosed on the Bank’s website at: https://survodav.bank.in/assets/pdf/policies/

survodav-compensation-policv-fv25-26-1.0.pdf The Non-Executive Directors including Independent Directors are paid remuneration by way of sitting fees for attending the meetings of the Board and its Committees, which is determined by the Board based on applicable regulatory provisions. Further, expenses incurred by them for attending meetings of the Board and Committees, if any, are reimbursed at actuals.

Pursuant to Regulation 19(4) read with Part D of Schedule II of the SEBI Listing Regulations, as amended, the NRC and the Board of Directors of the Bank is required to devise a policy on diversity of Board of Directors. The Bank has formulated this Policy in compliance with the SEBI Listing Regulations and the same is available on the website of the Bank at https://survodav.bank.in/assets/pdf/ policies/suryoday-policy-to-promote-diversity-of-board-of-directors-fv-26-27-1.0.pdf.

The Bank has an effective mechanism for succession planning, which focuses on orderly succession of the Chairperson, Directors, Key Management Personnel and Senior Management. The NRC implements this mechanism in concurrence with the Board of Directors.

l. PERFORMANCE EVALUATION OF THE BOARD

Pursuant to the provisions of Section 178(2) read with Schedule IV of the Companies Act, 2013 and Regulation 19 of SEBI Listing Regulations, for the FY 2025-26, the Board of Directors of the Bank had engaged Excellence Enablers Private Limited (“Excellence Enablers”), an external agency for carrying out the Annual Evaluation of Board, Statutory Committees of the Board and Individual Directors in order to ensure objectivity, transparency and benchmarking with leading governance practices. The external agency administered the evaluation process based on structured questionnaires and evaluation criteria aligned with applicable regulatory requirements and industry’s best practices. Further, the performance evaluation of the Committees of the Board was carried out in accordance with the criteria for evaluation as set out in the Policy for Performance Evaluation of the Bank read with

the Terms of Reference/Charter of the respective Board Committees.

Mr. M Damodaran, the founder of Excellence Enablers had one-on-one interactions with the Members and the Chairpersons of the Board Committees and took their views and inputs on the performance of the Board Committees.

All the Directors provided their responses to the questionnaires based on the said criteria. Each of the Committees evaluated its own performance. The Independent Directors, reviewed the performance of non-independent Directors and the performance of the Board as a whole.

The feedback and outcome of the Board’s Performance Evaluation was submitted to the NRC and the Board. Further, the Report on the Performance Evaluation of the Committees was submitted to the respective Board Committees and the feedback on Individual Directors was shared separately to the all Board members.

The Board has taken on record the Performance Evaluation Report for FY 2025-26 and advised the Management for taking necessary actions towards enhancing the processes / reporting mechanism, wherever required/applicable, as suggested in the Performance Evaluation Report, including focused approach towards Board’s exposure to senior management team, risk governance, Cyber and AI-related risks, and greater focus on Strategy/Financial matters, which was agreed by the Management for necessary action in a time-bound manner.

V. State of the Bank’s Affairs in terms of Section 134(3)(i) of the Act

The state of affairs of the Bank in detail is provided separately under different sections of the Board’s Report and also under Management Discussion and Analysis.

W. FAMILIARISATION PROGRAMMES FOR INDEPENDENT DIRECTORS

In accordance with the Regulation 25(7) of the SEBI Listing Regulations and RBI guidelines, the Bank has conducted various familiarisation programmes during FY 2025-26 for the Independent Directors to enable them to familiarise with the Bank, its Management, Bank’s Business, and its operations for better understanding of their roles & responsibilities and rights for effective contribution in sustainable growth of the Bank.

The Bank has also facilitated various Training programs from the eminent institutions for the Independent Directors of the Bank.

The details of the familiarisation programme(s) for the Independent Directors of the Bank have been provided separately in the Report on Corporate Governance forms part of the Annual Report and can be accessible on website of the Bank at:- https://suryoday.bank.in/assets/ pdf/policies/ssfb-familiarization-programmes-independent-directors.pdf

X. EMPLOYEES STOCK OPTION SCHEME AND OPTIONS GRANTED DURING FY 2025-26

The Bank has, from time to time, granted Stock Options to its key employees to attract, hire and retain talented and experienced personnel from the industry. ESOP has served as a tool to reward and motivate employees for long association and in recognition of dedicated service to the Bank, pursuant to the approval of its Members. Rewarding employees with stock options aligns with the long-term growth of the Bank and ensures active participation by a team of motivated employees in ensuring the desired growth of the organisation.

In this regard, the Stock Option Scheme titled ‘ESOP Scheme 2016’ was initially approved by the Members of the Bank at their Extra Ordinary General meeting (“EGM”) held on December 22, 2016 and thereafter, the amended Scheme was approved by the members of the Bank at their AGM held on August 30, 2018. Thereafter, in order to modify and align the terms with the amended Regulations, the Bank had launched new Scheme Suryoday ESOP Scheme 2019 (“ESOP Scheme 2019”), which was initially approved by the Members at the AGM held on September 26, 2019 and thereafter amendments to the Scheme were approved by the Members at their EGM held on July 27, 2020. Further, in terms of Regulation 12(1) of the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 (the “SEBI SBEB Regulations”), as amended, the ratification to the ESOP Scheme 2019 was also approved by the Members of the Bank at their AGM held on September 20, 2021.

It may kindly be noted that after coming into effect of the ESOP Scheme 2019, the earlier Scheme i.e. ESOP Scheme 2016 was closed for the purpose of granting new Options, however, Options in 2 categories viz. those which were granted under ESOP Scheme 2016, Options granted and vested under ESOP Scheme 2016 and vested but not exercised, were treated as valid till their eligible exercise period under the scheme.

The grant of Options to employees under Suryoday ESOP Scheme 2019 is approved by the NRC. In alignment with the Bank’s Compensation Policy, ESOP when determining the number of options to be granted are offered at the time of hiring as well as

part of the Annual Performance Review. The number of options to be granted are determined basis factors such as scale, designation, performance, grades, period of service, role significance, and contribution to the Bank’s overall performance.

Further, pursuant to RBI Circular No. RBI/2019-20/89 DOR. Appt.BC. No.23/29.67.001/ 2019-20 dated

November 4, 2019 read with RBI/2021-22/95 DOR. GOV. REC. 44/ 29.67.001/2021-22 dated August 30, 2021, the Bank is under obligation to pay part of the overall compensation to certain categories of senior Management employees of the Bank in the form of share linked instruments as variable pay with a linkage to the overall performance of the Bank, performance of the concerned Business Unit and the Individual’s Performance along with appropriate malus and claw-back arrangements. The same is in accordance with the Compensation Policy of the Bank.

Taking into consideration the requirements of the abovementioned RBI Circulars and the growth plans of the Bank for coming years and in order to attract, hire and retain talented and experienced personnel from the industry, as well as to reward and motivate existing employees for their long association and in recognition of their dedicated service to the Bank, the NRC and the Board of Directors had recommended to increase the pool of Option by adding 40,00,000 (Forty Lakhs only) Options in the ESOP Scheme 2019 to be utilised for granting Options to the Employees for coming years, which was subsequently approved by the Members at their 16^th AGM of the Bank held on September 12, 2024. With this, the total pool size of Options in Suryoday ESOP Scheme 2019 shall be 80,00,000 (Eighty Lakhs only) Options.

The Board of Directors at their meeting held on June 25, 2026, based on the recommendation of the NRC has recommended modifications in the Clause of the ESOP Scheme, 2019 pertaining to Exercise Period which are detailed in the Notice of the ensuing 18^th AGM of the Bank for approval of the Shareholders.

The Bank is currently granting Options from ESOP Scheme 2019.

The applicable disclosure with regard to Employee Stock Option granted during FY 2025-26 is provided in Annexure-2 to this report.

Y. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

Pursuant to Section 186(11) of the Act, loans made, guarantees given, securities provided or acquisition of securities by a banking company in the ordinary course of its business are exempted from the disclosure requirement under Section 134(3) (g) of the said Act. Details of Investments are given in Schedule 8 to the Financial Statements forms part of the Annual Report.

Z. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTY

During FY 2025-26, the Bank did not engage in any material significant transactions with related parties that could potentially create conflicts of interest between the Bank and these parties. The related party transactions, if any, during the year were carried out at arm’s length basis and in the ordinary course of business operations. Any transactions entered with the related parties are monitored and reviewed by the ACB and Board every quarter.

During the year under review, there were no contracts or arrangements with related parties as referred to under Section 188(1) of the Act.

As per Section 134(3)(h) of the Act read with Rule 8(2) of the Companies (Accounts) Rules, 2014, there are no related party transactions that are required to be reported in form AOC-2. The requisite disclosure has been made under Schedule 18 of the notes forming part of Audited Financial Statements for FY ended March 31, 2026.

The Related Party Transaction Policy as approved by the Board can be accessed on the website of the Bank at: https://suryoday.bank.in/assets/pdf/ policies/suryoday-related-party-transaction-policy-fy-26-27-1.0.pdf. The Related Party Transaction policy is reviewed by the ACB on an annual basis. The Bank does not have a subsidiary company as on date; hence the Bank is not required to formulate a specific policy on dealing with material subsidiaries.

AA. RISK MANAGEMENT FRAMEWORK

The Bank is exposed to various risks which broadly fall under one or more of the categories of Credit Risk, Market Risk, Liquidity Risk, Operational Risk and Information and Cyber Security Risk etc. The Chief Risk Officer of the Bank is in-charge of the Risk Management functions under the oversight of the Risk Management Committee of the Board (“RMCB”).

The Bank has a robust framework for risk management in the form of regular review of products and processes by the Compliance Department, periodic internal audit of processes and operations, regular review of risk policies and periodic reporting to the RMCB and the Board. The RMCB overviews the nature of the relevant risks, impact thereof on the business of the Bank, implementation of the risk management policies and processes and reviewing of these Policies to address the risks. Further details on the Risk Management are covered in the Management Discussion & Analysis, forming part of the Annual Report.

BB. INTERNAL FINANCIAL CONTROLS (IFC) WITH REFERENCE TO THE FINANCIAL STATEMENTS

The Board has reviewed the adequacy and effectiveness of the Bank’s internal financial controls with reference to its financial statements. Internal controls are in place and were operating effectively for the period. There were no material or serious observations with respect to the inefficiency or inadequacy of such controls.

AB. MATERIAL CHANGES AND COMMITMENTS, AFFECTING THE FINANCIAL POSITION OF THE BANK

No material changes and commitments have occurred after the closure of FY 2025-26 till the date of this report, affecting the financial position of the Bank.

AC. MANAGEMENT DISCUSSION & ANALYSIS

The Report on Management Discussion & Analysis for FY 2025-26, as stipulated in SEBI Listing Regulations forms part of the Annual Report.

AD. CORPORATE GOVERNANCE

The Bank is committed to establishing and adhering to the best Corporate Governance practices through transparency in disclosures, accountability, integrity, true & fairness, putting in place robust systems & processes and adhering to the compliance & governance policies framed in accordance with the rules and regulations applicable to the Bank. The Bank continuously endeavours enhancing the governance and assurance functions.

The Report on Corporate Governance along with the Certificate issued by Tushar Shridharani & Associates LLP, Practicing Company Secretaries of the Bank confirming the compliance with the conditions stipulated in the SEBI Listing Regulations forms part of the Annual Report.

AE. CORPORATE SOCIAL RESPONSIBILITY (CSR) & ESG INITIATIVES

As part of its commitment to social responsibility, the Bank strives to enhance the economic, environmental, and social well-being of unserved and underserved communities. Our mission is to foster inclusive growth and improve the quality of life for those at the margins of society.

The Bank operates a robust three-tier governance structure to oversee its CSR vision, comprising the Board of Directors, the CSR & ESG Committee, and the Head of CSR & ESG. This structure ensures that

all activities and funds are closely monitored for maximum impact and transparency.

Bank’s projects are designed to create sustainable change through:

• Financial & Digital Literacy: Empowering women, adolescents, and parents with essential banking and digital skills.

• Health & Wellness: Improving preventive and reproductive health outcomes.

• Livelihood & Skill Development: Enhancing employability and livelihood for marginalized groups.

• Community Development: Driving grassroots initiatives to uplift targeted communities.

During the year under review, the Bank has scaled its reach primarily through two key implementing partners:

• Suryoday Foundation: Impacted over 80,000 beneficiaries across six projects in Maharashtra, Tamil Nadu, and Odisha, focusing on financial literacy, women’s empowerment, and community engagement.

• Rotary Club of Madras: Provided critical dental care to over 10,000 children via mobile dental camps covering 15 zones of the Chennai Corporation, as well as Urban Primary and Community Health Centres.

The Bank’s CSR initiatives and activities are aligned to the requirements of Section 135 of the Act. The Annual Report on CSR activities in FY 2025-26 including those of ongoing projects are mentioned in the prescribed format in accordance with the Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014 and attached as Annexure-3 to this Report. The CSR Policy is also available on the Bank’s website at:- https://suryoday.bank.in/assets/ pdf/policies/survodav-csr-policv-fv26-27-1.0.pdf .

The Bank understands the importance of integrating on the three pillars of ESG i.e., Environmental, Social, and Governance into its operations and decisionmaking processes. The Bank aims to balance its financial performance in alignment with the above mentioned three pillars of ESG. The Bank is in the process of evaluating to make contributions to the projects working in the areas of protection of Environment, like check dams, tree plantations etc. This would also be in line with our ESG goals of the Bank.

AF. BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT

In terms of Regulation 34(2)(f) of the SEBI Listing Regulations, the top 1000 listed companies based on their market capitalisation as on March 31, every fiscal year, are mandatorily required to submit a Business Responsibility and Sustainability Report (“BRSR”) on the environmental, social and governance disclosures as part of their Annual Report. The said Report describing the initiatives undertaken by the Bank from environmental, social and governance perspective has been uploaded on the website of the Bank and the same can be accessed at https://suryoday.bank.in/assets/ pdf/business-responsibility-and-sustainability-reporting-2025-26.pdf

As stipulated in SEBI Listing Regulations, the BRSR describing the initiatives undertaken by the Bank from environmental, social and governance perspective forms part of the Annual Report.

AG. STATUTORY AUDITORS AND THEIR REPORT

M/s. Mukund M. Chitale & Co., Chartered Accountants, (Firm Registration Number 106655W), the Statutory Auditors, were appointed by the Shareholders of the Bank at their 16^th AGM held on September 12, 2024 to hold office for a period of Three (3) years from the conclusion of the Sixteenth (16^th) AGM until the conclusion of the Nineteenth (19^th) AGM of the Bank to be held in the year 2027 for the purpose of the Audit of the Bank’s Financial Statements for the Financial Years 2024-25 upto 2026-27.

Given that the Bank’s Balance Sheet size as on March 31, 2025, stood at H 15,614 Crores and hence, in accordance with the Guidelines for Appointment of Statutory Central Auditors (SCAs)/ Statutory Auditors (SAs) of Commercial Banks (excluding RRBs), UCBs and NBFCs (including HFCs) issued by the Reserve Bank of India (“RBI”) vide Circular No. DoS.CO.ARG/SEC.01/08.91.001/2021-22 dated April 27, 2021 read with Bank’s Policy on Appointment of Statutory Auditors, the Bank was required to appoint one additional Audit firm as its Joint Statutory Auditor. Accordingly, pursuant to the RBI approval, the Audit Committee of the Board (“ACB”) on August 13, 2025 and thereafter, the Board of Directors on August 14, 2025, have recommended the appointment of M/s. Gokhale & Sathe, Chartered Accountants (Firm Registration Number 103264W) as one of the Joint Statutory Auditors of the Bank, to hold office for a period of Three (3) years from the conclusion of Seventeenth (17^th) AGM until the conclusion of the Twentieth (20^th) AGM of the Bank to be held in year 2028, for the purpose of the audit of the Banks’ Financial Statements for the Financial

Years 2025-26 upto 2027-28, subject to the approval of the RBI every year for the remaining Two (2) years i.e. FY 2026-27 and FY 2027-28. The Shareholders of the Bank at their 17^th AGM held on September 11, 2025 have accorded their approval for the appointment of M/s. Gokhale & Sathe, Chartered Accountants (Firm Registration Number 103264W), as one of the Joint Statutory Auditors of the Bank [along with existing Statutory Auditors, M/s. Mukund M. Chitale & Co., Chartered Accountants, (Firm Registration No. 106655W)], both the Auditors to be termed as ‘Joint Statutory Auditors’.

Pursuant to para 6.1 of the RBI Circular No. RBI/2021-22/25 Ref. No. DoS. CO. ARG/ SEC.01/08.91.001/2021-22 dt. April 27, 2021, the ACB need to monitor and assess the independence of the Auditors and conflict of interest position in terms of relevant regulatory provisions, standards, and best practices. Accordingly, the ACB and the Board of Directors at their respective meetings held on May 07, 2026, have reviewed the performance of M/s. Mukund M. Chitale & Co., Chartered Accountants, (Firm Registration Number 106655W) and M/s. Gokhale & Sathe (Firm Registration Number 103264W), Joint Statutory Auditors of the Bank, in terms of RBI Circular No. RBI/2021-22/25 Ref. No. DoS. CO. ARG/ SEC.01/08.91.001/2021-22 dt. April 27, 2021, and found the same to be satisfactory and that they were acting independently without conflict of interest with the management.

In accordance with para 3.1 of the RBI Circular No. RBI/2021-22/25 Ref. No. DoS. CO. ARG / SEC.01/08.91.001/2021-22, dated April 27, 2021, the Bank is required to take prior approval of the RBI for their continuation on an annual basis. Accordingly, the Board of Directors of the Bank, based on the recommendation made by the ACB at their meeting held on May 07, 2026, had recommended the re-appointment/continuation of M/s. Mukund M. Chitale & Co., Chartered Accountants, (Firm Registration No. 106655W) and M/s. Gokhale & Sathe, Chartered Accountants, (Firm Registration No. 103264W), as the Joint Statutory Auditors of the Bank for the FY 2026-27, for their third and second year respectively, for approval of the RBI.

Thereafter, based on the application submitted by the Bank, the RBI vide letter No. Ref.CO. DOS. RPD. No. S1724/08.62.005/2026-27 dated June 05, 2026 (receivedby the Bank on June 05,2026), has accorded its approval for the re-appointment/continuation of M/s. Mukund M. Chitale & Co., Chartered Accountants, (Firm Registration No. 106655W) and M/s. Gokhale & Sathe, Chartered Accountants, (Firm Registration No. 103264W), as the Joint Statutory Auditors of the Bank for the FY 2026-27, for their third and second year respectively.

The Report, provided by the Joint Statutory Auditors, M/s. Mukund M Chitale & Co., Chartered Accountants (Firm Registration No. 106655W) and M/s. Gokhale & Sathe, Chartered Accountants (Firm Registration No. 103264W) on the financial statements of the Bank for FY ended March 31, 2026, forms part of the Annual Report. There has been no qualification, reservation, adverse remark or disclaimer given by the Auditors in their Report. Also, no offence of fraud was reported by the Joint Statutory Auditors of the Bank under Section 143(12) of the Act.

AH. SECRETARIAL AUDITORS AND THEIR REPORT

Pursuant to the provisions of Section 204 of the Act read with Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and Regulation 24A of the SEBI Listing Regulations, the ACB and the Board of Directors of the Bank at their respective meetings held on May 08, 2025, had recommended the appointment of M/s. Tushar Shridharani & Associates LLP, Practising Company Secretaries, (LLPIN - ACL-9350 | Unique Code: L2025MH018100), being a peer reviewed firm of Company Secretaries in Practice as Secretarial Auditors of the Bank for period of Five (5) consecutive years commencing from FY 2025-26 till FY 2029-30, and to provide such other services as permissible under applicable laws on such terms and conditions including remuneration that may be fixed plus applicable taxes and other out-of-pocket expenses as may be mutually agreed upon between the ACB and/ the Board of Directors of the Bank, which was subsequently approved by the Members of the Bank at their 17^th AGM held on September 11, 2025. M/s. Tushar Shridharani & Associates LLP, Practising Company Secretaries, Secretarial Auditor conducted Secretarial Audit of the Bank for FY 2025-26 and issued Secretarial Audit Report. The Secretarial Audit Report for FY 2025-26 i.e., Form No. MR-3 is annexed to this Report as Annexure-4. The report is self-explanatory and does not contain any qualification, reservation or adverse remark.

The Secretarial Auditor has confirmed that they have subjected themselves to Peer Review process by the Institute of Company Secretaries of India (“ICSI”) and hold valid certificate issued by the Peer Review Board of ICSI.

Further, the Bank had reviewed the performance evaluation of Secretarial Auditors basis the various parameters including following and found their performance satisfactory:

1) Quality of Services

2) Scope and Nature of Assignment

3) Expertise and Experience

4) Timeliness and Responsiveness

5) Attention to detail

The Shareholders at their 17^th AGM held on September 11, 2025, while approving the

appointment of Secretarial Auditors, had approved H 2,25,000 (Rupees Two Lakhs and Twenty-five Thousand Only) plus applicable taxes and other out-of-pocket expenses on actuals, in connection with the Secretarial Audit for the Financial Year ending March 31, 2026, excluding the Fees payable for any certifications and other professional services, as permissible under the Act, SEBI Listing Regulations and other applicable SEBI Regulations. The ACB and Board have reviewed the performance of Secretarial Auditors for FY 2025-26 and found the same to be satisfactory and that they were acting independently without conflict of interest with the management. The fees for Secretarial Audit for the FY 2026-27 shall remain unchanged.

AI. ADHERENCE TO SECRETARIAL STANDARDS ISSUED BY THE INSTITUTE OF COMPANY SECRETARIES OF INDIA

During the year under review, the Bank has complied with the Secretarial Standards on meetings of the Board and its Committees (SS-1) and General Meetings (SS-2) issued by the ICSI, and as amended from time-to-time.

AJ. STATUS OF IMPLEMENTATION OF IFRS CONVERGED INDIAN ACCOUNTING STANDARDS (IND AS)

The banks have been advised to follow the Indian Accounting Standards as notified under the Companies (Indian Accounting Standards) Rules, 2015, subject to any guideline or direction issued by the RBI in this regard. The Banks in India currently prepare their financial statements as per the guidelines issued by the RBI, the Accounting Standards notified under Section 133 of the Act and generally accepted accounting principles in India ("Indian GAAP"). In January 2016, the Ministry of Corporate Affairs (“MCA”) issued the roadmap for implementation of new Ind AS, which were based on convergence with the International Financial Reporting Standards ("IFRS"), for scheduled commercial banks, insurance companies and nonbanking financial companies ("NBFCs"). In March 2019, RBI deferred the implementation of Ind AS for banks till further notifications as the recommended legislative amendments were under consideration of Government of India. The Bank had undertaken preliminary diagnostic analysis of the GAAP differences between Indian GAAP vis-a-vis Ind AS and shall proceed for ensuring the compliance as per applicable requirements and directions in this regard.

AK. INFORMATION UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

The Bank follows a zero-tolerance approach towards sexual harassment and remains firmly committed to ensuring the safety, dignity and well-being of all employees. It strives to foster a safe, inclusive and respectful workplace across all its operations. The Bank believes in the right of all its employees to work with dignity, in a safe and secure environment and towards this objective, is committed to creating and maintaining a safe and secure work environment, free from sexual harassment whereby its employees are expected to treat their co-workers with respect, dignity and in a professional manner. The Bank strongly disapproves of offensive or inappropriate sexual behaviour at workplace and expects all employees to avoid any action or conduct which could be viewed as sexual harassment.

The Bank has adopted a Policy for Prevention of Sexual Harassment (“POSH Policy”) at the workplace in accordance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules framed thereunder, which is available on website of the Bank at https://suryoday. bank.in/assets/pdf/policies/suryoday-policy-on-prevention-of-sexual-harassment-fv-25-26-1.0.pdf

The Bank is providing necessary awareness to the employees of the Bank about the POSH Policy by circulation of the awareness emails, displaying the posters / pamphlets at a conspicuous place at the branches and other offices of the Bank. The Bank is also conducting a programme ‘Female Connect’ to create awareness amongst female employees of the Bank about the POSH Policy and their rights thereunder.

The Bank is providing necessary awareness to the employees of the Bank about the POSH Policy by circulation of the awareness emails, displaying the posters / pamphlets at a conspicuous place at the branches and other offices of the Bank. The Bank is also conducting a programme ‘Female Connect’ to create awareness amongst female employees of the Bank about the POSH Policy and their rights thereunder.

Details of complaints received and resolved by the ICC during FY 2025-26 are as follows:

During the year, there were no appeals filed under the said Policy.

Further, the Annual Report under Sexual Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act, 2013, of the ICC, for the Calendar year ended December 31, 2025 had been filed with the District Collector, Thane.

AL. COMPLIANCE WITH MATERNITY BENEFIT ACT, 1961

The Bank is compliant with the applicable provisions of the Maternity Benefit Act, 1961 and has policies, systems and processes in place to ensure ongoing compliance.

AM. DIVERGENCE IN ASSET CLASSIFICATION AND PROVISIONING FOR NPAs

No disclosure on divergence in asset classification and provisioning for NPAs is required with respect to RBI’s supervisory process for the year ended March 31, 2026, in terms of the requirements prescribed in RBI circular.

AN. VIGIL MECHANISM/ WHISTLE BLOWER POLICY

The Bank has in place a Whistle Blower Policy which has been formulated as part of corporate governance norms and transparency where employees, customers and other stakeholders of the Bank including Non-Governmental Organizations (“NGOs”) are encouraged to voice genuine concerns of grievances about unprofessional conduct without the fear of reprisal to the person raising the concern.

The Policy provides a framework to promote responsible and secure whistle blowing with respect to any breach or violation of the Bank’s Code of Conduct on any matter.

Please refer:- https://suryoday.bank.in/assets/ pdf/policies/suryoday-whistle-blower-policy-fy26-27-1.0.pdf for text of the Policy. The functioning of the Whistle Blower mechanism is subject to review by the ACB.

During the year under review, no complaints were received under this Policy.

AO. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

• CONSERVATION OF ENERGY AND FOREIGN EXCHANGE EARNINGS & OUTGO:

The Bank has been actively pursuing various initiatives aimed at achieving its goal of

reducing power consumption. The Bank closely monitors the usage of desktops, laptops and other electronic devices, ensuring that those are switched off when not in use. The use of LED lighting continues as part of Bank’s ongoing efforts to improve energy efficiency. Through installation of energy efficient appliances like Sensor-based lighting for close monitoring of the usage and imparting consistent awareness on mindful consumption among employees and staff members.

There was foreign exchange outgo of H 0.18 Crores for the FY’26. Further, there were no earnings in foreign exchange.

• TECHNOLOGY ABSORPTION

The Bank remains committed to technology-driven business initiatives to simplify and enhance the banking experience for customers. Throughout FY’26, several efforts were made to further bolster the Bank’s technological capabilities through continuous innovation and adoption. The Bank has automated various processes to improve turnaround time and reduce manual dependencies. Regulatory-focused processes were automated to ensure timely, consistent execution and adherence to guidelines.

These achievements underscore the Bank’s strategic focus on digital transformation through intelligent automation, delivering business value year over year.

AP. DEPOSITS

Being a banking company, the disclosures relating to deposits as required pursuant to Rule 8(5)(v) & (vi) of the Companies (Accounts) Rules, 2014, read with Section 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 are not applicable to the Bank. The details of the deposits received and accepted by the Bank as a Banking company have been disclosed in the financial statements for FY ended March 31, 2026 forming part of the Annual Report for FY 2025-26.

AQ. MAINTENANCE OF COST RECORDS

Being a banking company, the cost records as specified by the Central Government under Section 148(1) of the Act, are not applicable to the Bank.

AR. DETAILS IN RESPECT OF FRAUDS, IF ANY, REPORTED BY AUDITORS OTHER THAN THOSE WHICH ARE REPORTABLE TO THE CENTRAL GOVERNMENT

During the year under review, no frauds have been reported by the Statutory Auditors or the Secretarial Auditors under Section 143(12) of the Act.

AS. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNAL IMPACTING THE GOING CONCERN STATUS AND COMPANY’S OPERATIONS IN FUTURE

During the year under review, no significant or material orders passed by the Regulators or Courts or Tribunals, which would impact the going concern status of the Bank or its future operations.

AT. AWARDS AND RECOGNITIONS:

During the year under review, the Bank was recognised in various ways/by several institutes. Some of the key achievements and awards won by the Bank are listed below:

a) Ambition Box Employee Choice Awards 2025

b) Ecosystem-Led Innovation-Platinum Winner for Driving Digital Transformation to Modernize New Age Banking at Infosys Finacle Innovation Awards

c) Indian Banks Association (IBA) for Best Fintech Bank & DPI Adoptions and Digital Financial Inclusion

d) Bharat Fintech Summit- CIO/ CTO of the year award

e) Bharat Fintech Summit’26- Digital Innovation in Bank- Retail part of the Fintech & Digital Excellence Award

AU. PARTICULARS OF EMPLOYEES

The statement containing particulars of employees as required under Section 197(12) of the Act read with Rule 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 forms part of this report. In terms of Section 136 of the Act, the same would be available for inspection during working hours at the Registered Office of the Bank. A copy of this statement may be obtained by the Members by writing to the Company Secretary of the Bank.

The ratio of the remuneration of each Director and employees of the Bank as required under 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, forms part of this report as Annexure-5.

AV. PROCEEDINGS UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016

No proceedings are initiated/pending against the Bank under the Insolvency and Bankruptcy Code, 2016.

AW. The details of difference between amount of valuation done at the time of one-time settlement and the valuation done while taking loan from the banks or financial institutions along with the reason thereof:

Being a Banking Company, the aforesaid provision is not applicable to your Bank.

AX. RECOMMENDATIONS OF AUDIT COMMITTEE :

During the FY 2025-26, there was no incidence, where the Board has not accepted any recommendations of the Audit Committee.

The Audit Committee has acted in accordance with the Charter approved by the Board, covering oversight of financial reporting, auditors’ performance, related party transactions and internal controls.

AY. DIRECTORS’ RESPONSIBILITY STATEMENT:

Pursuant to Section 134(3)(c) read with Section 134(5) of the Act, the Board of Directors of the Bank hereby confirms that:

a) in the preparation of the Annual Accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departures;

b) they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Bank as on March 31, 2026, and of the profit of the Bank for the year ended on that date;

c) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Bank and for preventing and detecting fraud and other irregularities;

d) the annual accounts are prepared on a going- concern basis;

e) the requisite internal financial controls followed by the Bank are adequate and were operating effectively;

f) proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and were operating effectively.

ACKNOWLEDGEMENTS

The Board of Directors of your Bank would like to place on record their sincere gratitude for the guidance and co-operation received from the RBI, SEBI, Stock Exchanges, MCA, Depositories and other statutory and regulatory authorities and thank all the stakeholders of the Bank including the investors, customers, bankers, shareholders, debenture holders, vendors, debenture trustee, trustee, Registrars and all other valued partners for their continued support. The Board also would like to express their appreciation for the sincere and dedicated efforts put in by all the employees of the Bank at all levels for their teamwork and continued commitment towards growth of the Bank, its customers and other stakeholders and look forward to their continued contribution in building this ‘Bank of Smiles’ into a world class organization.