On behalf of the Board of Directors (the "Board") of Ujjivan
Small Finance Bank Limited (the "Bank or Ujjivan"), it is our
immense pleasure to present the 10^th Annual Report of
the Bank along with the Audited Financial Statements and
Auditor's Report thereon for the FY 2025-26.

OVERVIEW AND STATE OF AFFAIRS OF THE BANK

Ujjivan Small Finance Bank Limited ("Bank" / "Ujjivan") is
among the leading small finance banks in the country. As a
mass market bank, it remains committed to serve the unserved
and underserved segments through financial and digital
inclusion and is a one-stop destination for financial services
and offer personalised customer experience to its wide
customer base. With technology as a key enabler, the Bank
continues to expand its reach and has strengthened its digital
interfaces, across regions and languages that has empowered
its customers to seek timely and easy access to finance at all
times. As a 'Responsible Bank' Ujjivan stay invested in creating
a sustainable social impact through community development
and financial literacy initiatives.

Ujjivan stays true to its mission "to provide financial services
to unserved and underserved customers as a responsible mass
market bank, focused on building a sustainable tomorrow".

To continue with its mission, the Bank continue to aspire and
transition into a Universal Bank to broaden its impact, diversify
its offerings, and align its capabilities with the evolving needs
of the communities it has served and India's growing financial
ecosystem and hence will work towards diversifying its loan
portfolio as mandated by the Regulator.

Highlights of achievements during FY 2025-26 were:

i.    Disbursement: H32,576 Crores; growth of 38.9% Y-o-Y
with highest ever disbursement in a quarter achieved in
Q4 H9,811 Crore with 32% YoY growth.

ii.    OSP has grown from H32,122 Crores in FY25 to H40,655
Crores in FY26, growing 26.6% Y-o-Y

iii.    Secured book grown from H13,988 Crore to H20,079
Crore resulting in secured book share in gross loan book
to reach 49.4%.

iv.    Deposits: Total deposits at H45,668 crores is up 21.4%
Y-o-Y; Total deposit accretion during the year was
at H8,038 crores.

v.    CASA reached H13,062 Crores, up 35.9% YoY; CASA%
stands at 28.6% on Mar'26 vs 25.5% on Mar'25.

vi.    CD Ratio is at 89.0% (including IBPC/Securitization).

vii.    Asset Quality: GNPA/NNPA at 2.3% / 0.4% as on Mar'26;
PCR at 81% as on Mar'26

viii.    Capital adequacy comfortable at 21.14% with
Tier I at 19.70%

ix.    Micro-banking cashless collections increased from 40% in
Q4FY25 to 47% in Q4FY26; among the best in industry.

x.    Net profit for the Quarter amounted to H282 Crore up
238.2% YoY Profit for FY 2025-26 at H693 Crores.

Technology and Digital Platforms:

Ujjivan remains committed to leveraging digital solutions
to enhance customer experience, expand access, and drive
operational efficiency across segments.

During the year, we launched Ujjivan EZY, our upgraded retail
internet and mobile banking platform, created to deliver
a more intuitive and seamless experience. We have built a
scalable, microservices-based architecture that enables faster
rollout of features and greater responsiveness to evolving
customer needs. It offers 200+ features, and is available in nine
Indian languages, strengthening accessibility and engagement.
We also introduced key customer-centric offerings such as
Mutual Fund investments, NPS subscription & payments, and
Recurring Deposits (for Non-Resident customers).

On the payments front, following the rollout of UPI Autopay
(Issuer) in the previous year, we witnessed strong adoption
with over 14 lakh mandates amounting to more than
H275 crore, leading to improved customer retention and
deeper engagement. We further expanded our capabilities
by implementing UPI Autopay (Acquirer) for vehicle loan
repayments, improving collection efficiency and customer
comfort in loan repayment. The introduction of UPI Lite Auto
Top-up has enhanced convenience for low-value transactions
and further strengthened the digital payments ecosystem.

Additionally, as a BBPS Operating Unit (BOU), we processed
over 7.73 lakh transactions as a direct member during the year,
resulting in cost savings of approximately H1.43 crore.

On digital acquisition, we embedded product suitability into
our Digital Current Account (DCA) and Digital Savings Account
(DSA) journeys, enabling informed customer choices at
onboarding, thereby improving engagement and delivering a
more seamless account opening experience.

Human Capital:

• Increase in staff count field staff 17,583 from 15,827;
others 8,972 from 8,547 Extensive training programs being
conducted to enhance knowledge/skills and productivity

Major Awards & Accolades:

•    AmbitionBox Employee Choice Awards 2025

•    Great Manager Institute - Great People
Managers in India 2025

•    GPTW Certificate 2025 - Ujjivan Ranked 26^th among Top
100 Companies to Work for

•    Gold Award for Best Digital HR Team at the People
Matters Infiniti-T India Awards 2025.

•    Asia Pacific HRM Congress Awards - Most Influential HR
Innovators Award 2025

•    Jombay Workplace of Winners (WOW) Award in BFSI 2025

•    India Banking Summit & Awards 2025 for Banking
Personality of the year

•    India Treasury Summit & Awards 2025 for Best
Treasurer of the year

•    6^th Edition Excellence Awards 2025 for Best use of
Customer Experience in Mobile App Initiative (Banking)

As on March 31, 2026, the Board of the Bank comprised of 7
Independent Directors and 2 Executive Directors. The Board
has a strong gender diversity ratio with 4 out of 9 directors
being women (including 3 independent directors).

TRANSFER TO RESERVES
Statutory Reserve

The Bank has made an appropriation of H 173.16 crores to the
statutory reserve for the year ended March 31, 2026 out of
profits, to the Statutory Reserve, pursuant to the requirements
of section 17 of the Banking Regulation Act, 1949 and RBI
guidelines dated September 23, 2000.

Investment Fluctuation Reserve ("IFR")

During the year ended March 31, 2026, the Bank has made an
appropriation of H26.23 crores to IFR from the profit and loss
account so as to reach the figure of atleast 2% their AFS and
FVTPL (including HFT) Investment portfolio.

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”)
and RBI Requirements with an objective to appropriately
reward 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 athttps://www.uiiivansfb.bank.in/
corporate/corporate-governance-policies

Equity Dividend

To conserve capital for future growth, the Directors have not
recommended any dividend for the FY 2025-26.

CHANGE IN THE NATURE OF BUSINESS

There was no change in the nature of business of the Bank
during FY 2025-26.

MATERIAL CHANGES AND COMMITMENTS

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

REVISION OF FINANCIAL STATEMENT OR THE
DIRECTORS' REPORT

The Bank has not revised its financial statements or the
directors' report in respect of any of the three preceding
financial years either voluntarily or pursuant to the order of
any iudicial authority.

GENERAL INFORMATION

Detailed overview of the banking industry and important
changes therein, external environment and economic outlook
have been elaborated in the Management and Discussion
Analysis Report which forms part of the Annual Report of the
Bank for the FY 2025-26.

CAPITAL AND DEBT STRUCTURE

A. CHANGES IN CAPITAL STRUCTURE

There were no changes in the Authorised Capital of the
Bank during the FY 2025-26, As on March 31, 2026, the
Authorised Capital of the Bank comprises of the following:

-    2,625,000,000 (Two Hundred Sixty-Two Crores and

Fifty Lakh) equity shares of H 10/- (Rupees Ten)
each aggregating to H 26,250,000,000 (Rupees Two
Thousand Six Hundred and Twenty-Five Crore)

Following are details of increase in the paid-up capital
during the Financial Year 2025-26:

C.    ISSUE OF EQUITY SHARES WITH DIFFERENTIAL
RIGHTS AND/OR SWEAT EQUITY SHARES

During the FY 2025-26, the Bank has neither issued
any equity shares with differential rights nor any
sweat equity shares.

D.    EMPLOYEE STOCK OPTIONS/ SHARE BASED
EMPLOYEE BENEFIT SCHEMES

The Bank has formulated and implemented ESOP 2019
Scheme and ESPS 2019 Scheme to reward the employees
of the Bank, and employees of its present or future
subsidiary(ies) and/or holding company(ies), for their
association and performance as well as to motivate them
to contribute to the growth and profitability of the Bank.

ESOP 2019 Scheme:

The Bank, pursuant to the resolutions passed by the
Board on January 22, 2019, and by the Members on March
29, 2019, adopted the ESOP 2019 Scheme. The Bank in its
4^th Annual General Meeting held on September 02, 2020
has ratified the ESOP 2019 Scheme as required under
the SEBI (Share Based Employee Benefits) Regulations,

2014. The Bank may grant an aggregate number of up to
14,40,00,000 stock options under the ESOP 2019 Scheme.
Upon exercise and payment of the exercise price, the
option holder will be entitled for allotment of one equity
share per stock option. Accordingly, the number of equity
shares that may be issued under the ESOP 2019 Scheme
shall not exceed 14,40,00,000 equity shares of face
value H10 each.

The ESOP 2019 Scheme is effective from March 29, 2019.
The objectives of ESOP 2019 Scheme are, among others,
to attract and retain employees with stock options as a
compensation tool. Through ESOP 2019 Scheme, the Bank
offers an opportunity of sharing the value created with
those employees who have contributed or are expected
to contribute to the growth and development of the Bank.

The ESOP 2019 Scheme has been framed and implemented
in compliance with provisions of the SEBI (Share Based
Employee Benefits) Regulations, 2014, now SEBI (Share
Based Employee Benefits and Sweat Equity) Regulations,
2021, Companies Act, 2013 and rules made thereunder
and relevant guidance notes and accounting standards.

The Board in its meeting held on May 8, 2026 based on
the recommendation of the NRC has recommended to
the shareholders at the upcoming AGM to increase the
ESOP 2019 Pool from 14.4 crore options to 20.4 crore i.e.
adding 6 crore options. Please refer item no. 3 of the AGM
notice for further details.

The disclosures as required under Regulation 14 of the
SEBI (Share Based Employee Benefits and Sweat Equity)
Regulations, 2021 read with Circular CIR/CFD/POLICY
CELL/2/2015 dated June 16, 2015, issued by SEBI are
available on the website of the Bank athttps://www.
uiiivansfb.bank.in

ESPS 2019 Scheme:

The Bank, pursuant to the resolutions passed by the Board on
July 30, 2019, and by the Members on August 03, 2019, adopted
the ESPS 2019 Scheme. The ESPS 2019 Scheme has been framed
and implemented in compliance with provisions of the SEBI
(Share Based Employee Benefits) Regulations, 2014 now, SEBI
(Share Based Employee Benefits & Sweat Equity) Regulations
2021, Companies Act, 2013 and rules made thereunder and
relevant guidance notes and accounting standards.

The objective of the ESPS 2019 Scheme is inter-alia to reward
the eligible employees of the Bank and its Holding Company
for their association and performance as well as to motivate
them to contribute to the growth and profitability of the Bank.

Pursuant to the ESPS 2019 Scheme, the Board is authorized
to issue up to 7,20,01,840 fully paid up equity shares of the
face value of H 10 each with pari-passu voting rights, to the
eligible employees (as defined under the ESPS 2019 Scheme),
in accordance with the terms and conditions as may be
decided by the Nomination and Remuneration Committee of
the Bank. The Nomination and Remuneration Committee has
been entrusted with the responsibility of administering the
ESPS 2019 Scheme. No ESPS was granted or exercised during
the FY 2025-26.

The disclosures as required under Regulation 14 of the SEBI
(Share Based Employee Benefits and Sweat Equity) Regulations,
2021 read with Circular CIR/CFD/POLICY CELL/2/2015 dated
June 16, 2015, issued by the SEBI are available on the website
of the Bank at www.uiiivansfb.bank.in.

Further as per Regulation 13 of the SEBI (Share Based
Employee Benefit and Sweat Equity) Regulations, 2021, the
Board of Directors have obtained the certificate from the
Secretarial Auditor of the Bank, K Jayachandran, certifying
that the schemes have been implemented in accordance with
these regulations and in accordance with the resolution of the
Bank in the general meeting. The same has been enclosed as
"Annexure - 1" to this report.

E. ISSUE OF DEBENTURES, BONDS OR ANY NON¬
CONVERTIBLE SECURITIES OR WARRANTS

During the FY 2025-26, the Bank has not issued any
debentures, bonds or any non-convertible securities or
warrants. However, the Bank has duly carried out monthly
interest payments on the Non-Convertible Debentures
(NCDs) having a face value of H 1,00,000 (Indian Rupees
One Lakh) aggregating to H 300,00,00,000, issued during
the FY 2022-23 as per the terms of the said issue.

CAPITAL ADEQUACY

The Bank is subiect to the Reserve Bank of India (Small Finance
Banks - Prudential Norms on Capital Adequacy) Directions,
2025 (Updated as on March 10, 2026) The Capital to Risk Assets
Ratio (CRAR) of the Bank is calculated as per the Standardized
Approach (SA) for Credit Risk.

CRAR of the Bank is calculated on the basis of Reserve Bank
of India (Small Finance Banks - Prudential Norms on Capital
Adequacy) Directions, 2025 (Updated as on May 8, 2026). The
CRAR of the Bank as at March 31, 2026 using Risk Weighted
Assets for credit risk related exposures only, as required under

the operating guidelines of RBI for Small Finance Banks, was 21.14% against a minimum requirement of 15% and Tier I capital ratio
was 19.70% against the minimum requirement of 7.5%.

CREDIT RATING

Credit ratings assigned to Long Term Bank Facilities, Subordinated Non-Convertible Debentures and Certificate of Deposit
Programme of the Bank as on March 31,2026, with details of changes as on date:

TRANSFER OF UNPAID AND UNCLAIMED AMOUNT TO INVESTOR EDUCATION AND PROTECTION FUND

In terms of Section 124 & 125 of the Companies Act, 2013 read with the Investor Education and Protection Fund Authority
(Accounting, Audit, Transfer and Refund) Rules, 2016 as amended from time to time, the dividend that remains unpaid or unclaimed
for a period of seven consecutive years from the date of transfer, are required to be transferred to the Investor Education and
Protection Fund (IEPF).

As on March 31, 2026, the unclaimed dividend declared by Ujjivan Financial Services Limited (merged with Ujjivan Small Finance
Bank Limited) and Bank for the below years are as under:

During the FY 2025-26, unclaimed dividend of H 1,43,085 for the FY 2017-18 for UFSL and 540 equity shares of UFSL that remained unclaimed were transferred
to Investor Education and Protection Fund (IEPF).

* During the FY 2026-27, unclaimed dividend of H 2,21,712.30 for the FY 2018-17 for UFSL and 93 Equity shares of UFSL that remained unclaimed were
transferred to Investor Education and Protection Fund (IEPF).

BOARD AND KEY MANAGERIAL PERSONNEL

Following changes took place in the Board Composition during the FY 2025-26:

KEY MANAGERIAL PERSONNEL

As on March 31,2026, pursuant to Section 203 of the Companies
Act, 2013, Mr. Sanjeev Nautiyal, Managing Director and CEO,
Ms. Carol Furtado, Whole-Time Director, Mr. SB Kamath, Chief
Financial Officer and Mr. Sanjeev Barnwal, Company Secretary
and Compliance Officer are the Key Managerial Personnel
("KMP") of the Bank.

No changes in the Key Managerial Personnel during
the FY 2025-26.

The brief profiles of the Key Managerial Personnel are available
on the website of the Bank athttps://www.uiiivansfb.bank.in/
management-team

DIRECTORS RETIRING BY ROTATION

In accordance with the provisions of Section 152 of the
Companies Act 2013, Ms. Carol Kripanayana Furtado, (DIN:
07587305) Whole-Time Director, retired by rotation at the
previous AGM and shareholders approved her re-appointment.
Further, Mr. Sanjeev Nautiyal, (DIN: 08075972) Managing
Director & CEO will retire by rotation at the ensuing AGM
and being eligible for reappointment, offers himself for
re-appointment.

DECLARATION BY INDEPENDENT DIRECTORS
AND STATEMENT ON COMPLIANCE OF CODE OF
CONDUCT

The Bank has received declarations from all its Independent
Directors confirming that they meet the criteria of
independence as prescribed under Section 149(6) of the
Companies Act, 2013 and Regulation 16(1)(b) of SEBI Listing
Regulations and that they have complied with the code
of conduct for independent directors as prescribed under
Schedule IV of the Companies Act, 2013.

Further, pursuant to Regulation 25(8) of the SEBI Listing
Regulations, the Independent Directors of the Bank have
also confirmed that they are not aware of any circumstance
or situation, which exist or may be reasonably anticipated,
to impair or impact their ability to discharge their duties
with an objective of independent judgment and without any
external influence.

In the opinion of the Board, all the Independent Directors meet
the criteria with regards to integrity, expertise and experience
(including proficiency*) as required under applicable laws.

*All Independent Directors of the Bank have registered themselves in the
data bank as specified under Section 150 of the Companies Act, 2013 read
with Rule 6 of Companies (Appointment and Qualifications of Directors)
Rules, 2014. Few Independent Directors have qualified the prescribed
proficiency test. The Independent Directors (not exempted under the
Companies (Appointment and Qualification of Directors) Fifth Amendment
Rules, 2020 as notified on December 18, 2020) are committed to qualify the
online proficiency self-assessment as required under aforesaid Rule within
the prescribed timeline.

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.

DIRECTOR E-KYC

MCA vide its amendments to the Companies (Appointment
and Qualification of Directors) Rules, 2014, had mandated
registration of KYC of all Directors. All the Directors of the
Bank have complied with said requirement in FY 2025-26.

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.

NUMBER OF MEETINGS OF THE BOARD

The Board met 9 (Nine) times during the FY 2025-26. The
meetings of the Board of Directors were convened in
accordance with applicable laws and standards and the
intervening gap between the said meetings was not exceeding
120 days. The details of Board Meetings are available in the
Corporate Governance Report which forms part of the Annual
Report of the Bank for the FY 2025-26.

BOARD COMMITTEES

The Bank believes that the Board Committees are pillars of
good corporate governance. In pursuit of the highest standard
of corporate governance and to comply with the provisions
of the Companies Act, 2013, SEBI Listing Regulations and
RBI guidelines, the Bank has constituted various statutory
and regulatory Board Level Committees. Further, in order to
improve the Board effectiveness, efficiency and faster decision
making, the Bank has also constituted a few non-statutory and
non-regulatory Board Level Committees for better governance
and supervision.

The details of composition, number of meetings held and date
thereof and terms of reference of the above Committees are
available in the Corporate Governance Report which forms part
of the Annual Report of the Bank for the FY 2025-26.

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.

BOARD EVALUATION

The Board has carried out an annual evaluation of its own
performance, the performance of Board Committees and
Individual Directors pursuant to the provisions of Section 178
read with Schedule IV of Companies Act, 2013, Regulation 19
of the SEBI Listing Regulations and applicable RBI guidelines.

The performance evaluation was carried out by the Nomination
and Remuneration Committee and by the Board in their
meetings held on March 24, 2026. The approved evaluation
formats and criteria are in line with the SEBI Guidance Note on
Evaluation dated January 05, 2017.

The Nomination and Remuneration Committee has laid down
comprehensive parameters for evaluation, a few of which
are listed below:

I.    The Board: Composition, structure, meetings, functions,
management and professional development, ethics and
compliance among others.

II.    The Committees:    Mandate & Composition,

effectiveness, structure, meetings, independence of
the committee, contribution to decision making of the
Board, among others.

III.    Individual directors (including Chairperson, Independent
Directors and Non-Independent Directors): Leadership,
Commitment, Contribution, Experience, Expertise,
Independence, Integrity, Attendance, Responsibility, Flow
of Information among others.

The performance of the Board and Board Committees was
evaluated after seeking inputs from all the directors. The
Board and the Nomination and Remuneration Committee
reviewed the performance of the Individual Directors on the
basis of the approved criteria for evaluation. In addition, the
Chairman and Managing Director & CEO were also evaluated
on the key aspects of their roles.

Performance evaluation of Directors was done by the
Nomination and Remuneration Committee and entire Board,
excluding the Director being evaluated. The Committee
evaluated the performance of Directors and noted that:

i.    The Directors had requisite competency, qualification,
commitment and integrity.

ii.    The Directors had long term vision, industry knowledge
and expertise and were wholly committed and provided
ethical leadership to the Bank.

iii.    The Directors had the ability to function as a team.

iv.    Further, the Directors were regular in attending meetings
and contributed effectively during the discussions.

v.    There was no apparent conflict of interest and that they
expressed their opinion freely.

Further, performance of Non-Independent Directors, the
performance of the Board as a whole, the performance of the
Chairman and quality, quantity and timeliness of the flow of
information between the Bank's Management and its Board
were also evaluated.

REMUNERATION OF DIRECTORS AND EMPLOYEES

(a) Remuneration of Whole Time Directors (MD & CEO
and Executive Director), hereinafter referred as
WTDs

On receipt of shareholders' approval and with the
prior approval of the RBI, the Board based on the
recommendation of the NRC approves remuneration
of its WTDs. A proper balance between fixed pay and
variable pay is ensured for remuneration of the WTDs and
the variable pay is a mix of cash (1/3) and non-cash (2/3).

Subsequent to the receipt of the RBI approval vide its letter dated Sep 16, 2025, the WTDs were paid the below remuneration
during the FY25-26:

(a) Remuneration of Non-Executive Directors /
Independent Directors

For the FY25-26, the remuneration of Non-Executive
Directors was paid only by way of sitting fees which is
within the limit prescribed under Section 197(5) of the
Companies Act, 2013 and RBI Guidelines on Review of
Fixed Remuneration granted to Non-Executive Directors
(NEDs) dated February 09, 2024. Please refer Annexure-2
for details of remuneration paid to each NEDs.

The Board on May 8, 2026 based on the recommendation
of the NRC, has recommended to the shareholders
to approve the below fixed remuneration to its Non¬
Executive Directors with effect from FY26-27 (please
refer items 6 and 7 of the AGM Notice for further details):

(a)    Fixed Remuneration of upto H 25 lacs per annum for
the Part-Time Chairman, subject to the approval of
the Reserve Bank of India.

(b)    Fixed Remuneration of upto H 20 lacs per annum for
each of the Independent Directors.

(c) Other Disclosures

Disclosures pertaining to remuneration and other details
as required under Section 197(12) of the Companies Act,
2013 read with Rule 5(1), (2) and (3) of the Companies
(Appointment and Remuneration of Managerial Personnel)
Rules, 2014 are annexed to this Report as Annexure-2. In
terms of Section 136(1) of the Companies Act, 2013, the
annual report and the financial statements are being sent
to the Members excluding the disclosures in terms of Rule
5(2) and (3) as mentioned above. The same is available for
inspection and any Member interested in obtaining a copy
of the Annexure may write to the Company Secretary of
the Bank atcorporatesecretarial@uiiivan.com

REMUNERATION RECEIVED BY THE MANAGING
DIRECTOR/WHOLE-TIME DIRECTOR FROM
HOLDING OR SUBSIDIARY COMPANY

In the absence of any holding or subsidiary company of the
Bank during the FY25-26, neither the MD & CEO nor the Whole¬
Time Director had received any remuneration or commission
from any holding or subsidiary company.

FAMILIARISATION    PROGRAMME    FOR

INDEPENDENT DIRECTORS

Complying with Regulation 25(7) of SEBI Listing Regulations
and RBI guidelines, no introductory familiarisation programmes
were conducted during the FY 2025-26 as there were no new
Independent Directors appointed on the Board during this
period. However, the Bank has conducted various training
programs for its Directors including the Independent Directors
during the FY 2025-26.

The details of such programmes are available on the website
of the Bank athttps://www.uiiivansfb.bank.in/corporate/
corporate-governance-policies

DIRECTORS' RESPONSIBILITY STATEMENT

Based on the framework of internal financial controls
established and maintained by the Bank, work performed by the
internal, statutory and secretarial auditors, reviews performed
by the Management and the relevant Board Committees,
the Board, in concurrence with the Audit Committee, is of
the opinion that the Bank's internal financial controls were
adequate and effective as on March 31, 2026.

Pursuant to Section 134 (5) of the Companies Act, 2013,
the Board, to the best of its knowledge, hereby confirms
and states 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 at the end of
the financial year and of the profit and loss of the Bank
for that period;

(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)    they have prepared the annual accounts on a
going concern basis;

(e)    they have laid down internal financial controls to be
followed by the Bank and that such internal financial
controls are adequate and were operating effectively; and

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

NOMINATION AND REMUNERATION POLICY

The Bank pursuant to the provisions of Section 178(3) of
the Companies Act, 2013, Regulation 19 of SEBI Listing
Regulations and RBI Requirements has formulated and
adopted a Nomination and Remuneration Policy on directors'
appointment and remuneration and the criteria for determining
qualification, positive attributes and independence of directors,
which is available on the website of the Bank athttps://www.
uiiivansfb.bank.in/corporate/corporate-governance-policies

Leadership Development and Succession Planning:

Alongside the ongoing Leadership Development Program EDGE
that aims to identify high performers and assess their potential
and suitability for leadership roles at Ujjivan, the Bank is also
building a robust leadership pipeline through high-potential
talent identification, succession planning at both management
and Board level, and experiential learning opportunities. As part
of this initiative, the Bank continues to undertake an extensive
exercise to identify gaps in successors for critical positions and
actively addresses the gaps by leveraging market mapping
and targeted talent acquisition to ensure readiness for future
transitions under the direct guidance of the Nomination and
Remuneration Committee of the Bank.

RISK MANAGEMENT

The Risk Management Committee ("RMC") of the Board
comprises of experienced directors from diverse backgrounds
who bring in the best risk management practices to the Bank.
The RMC comprises of 6 (six) directors out of which 4 (four) are
Independent Directors.

The RMC fulfils its roles and duties through various
management level risk committees. Risk-specific management
level committees have also been constituted such as the
Credit Risk Management Committee (CRMC), Operational
Risk Management Committee (ORMC), Asset Liability and
Market Risk Committee (ALCO), Enterprise Risk Management
Committee (ERMC), Information Security Committee
and Business Continuity Management Committee. These
committees are entrusted with the task to identify, measure,
mitigate and monitor various risks on a day-to-day basis.
There is also a National Controls and Compliance Committee
(NCCC) comprising of control function heads which meets at
regular intervals to deliberate on common risks identified
across the Bank.

The frequency, members and the quorum required for these
management level committees are furnished in the respective
risk policies and the charter. These committees meet at regular

intervals to assess and monitor the levels of risk pertaining to
market, credit and operations. In the last FY, the number of
meetings, both at Board committee level and at Management
level met the required minimum, to review and address issues
and risks that emerged in a changing environment.

The Bank has identified the following risks as Pillar I risks, in line
with the RBI Prudential norms on capital adequacy guidelines

•    Credit Risk

•    Operational Risk

•    Market Risk

In addition to the above-mentioned Pillar-I risks, the Bank also
monitors the following second order or derived risks (Pillar
II Risks) using specialized methodologies. A comprehensive
analysis is undertaken under its Internal Capital Adequacy and
Assessment Process (ICAAP).

•    Liquidity Risk

•    Interest Rate Risk in Banking Book

•    Concentration Risk

•    Outsourcing Risk

•    Strategic Risk

•    Reputational Risk

•    Underestimation of credit risk

•    Compliance risk

•    People Risk

•    IT and Information Security risks

•    Emerging Risks such as Climate Risk, ESG risk, Model risk
and Fintech risks.

The Bank's Risk Management Framework is based on a clear
understanding of the above risks, disciplined risk assessment
and measurement procedures and continuous monitoring.
The policies and procedures established for this purpose are
continuously benchmarked with best practices. The Bank has
oversight on all the risks through regular monitoring of Key
Risk Indicators and benchmarks/tolerance/appetite against
each type of risk.

Further, the Board reviews the Risk Management Framework
of the Bank and verifies adherence to various risk parameters
and compliances at least at quarterly intervals or more
frequently if the situation so warrants. The RMC provides a
recommendation to approve risk-related policies, including the
quarterly/half-yearly/annual review reports of major risks.

From a governance perspective, the Bank has in place an
effective risk management policy(s) which is duly approved by
the Board, that highlights the functions, implementation and
role of the Risk Management Committee of the Board and the
Board of Directors.

In compliance to the Pillar-III requirements, the Bank has in
place a Board approved policy on Disclosures that addresses
its approach for determining what disclosures it will make and
the internal controls over the disclosure process.

WHISTLE BLOWER POLICY / VIGIL MECHANISM

The Bank's Whistle Blower Policy allows employees, directors,
other stakeholders of the Bank such as customers, NGOs, the
Group (if any), Joint Ventures (if any), Suppliers, Contractors,
NGOs and members of the public to report matters such
as genuine grievances, corruption, fraud, misconduct, and
instances of leakage of unpublished price sensitive information,
misappropriation of assets and non-compliance of code of
conduct of the Bank or any other unethical practices.

Utmost protection has been accorded to the whistle blowers
and their identities are kept confidential.

The Policy also further provides an adequate safeguard against
victimization to the Whistle Blower and enables them to raise
concerns and also provides an option of direct access to the
Chairperson of the Audit Committee.

Name and Address of the Whistle and Ethics Officer

Ms. Chandralekha Chaudhuri

Ujjivan Small Finance Bank Ltd.

Grape Garden, No. 27, 3^rd A Cross, 18^th Main, 6^th Block,

Bangalore - 560095, Karnataka

Email-chandralekha.chaudhuri@uiiivan.com

Protected disclosures against the Whistle and Ethics Officer
need to be addressed to the Managing Director and CEO of
the Bank and the protected disclosure against the Managing
Director and CEO of the Bank are required to be addressed to
the Chairperson of the Audit Committee.

Name and Address of MD & CEO of the Bank

Mr. Sanjeev Nautiyal (DIN: 08075972)

Ujjivan Small Finance Bank Limited

Grape Garden, No. 27, 3^rd "A” Cross, 18^th Main,

6^th Block, Koramangala, Bengaluru - 560095,

Karnataka

Email: sanieev.nautiyal@uiiivan.com

Name and Address of the Chairperson of the Audit
Committee

Ms. Sudha Suresh, (DIN: 06480567)

C1, Farvella Apartments, 92/1 Lavelle Road 3^rd Cross,

Bangalore - 560001

Email: sudha.suresh@uiiivan.com

During the FY 2025-26, no one has been denied access to the
Chairperson of the Audit Committee.

The Whistle Blower Policy is available on the website of the
Bank athttps://www.uiiivansfb.bank.in/corporate/corporate-
governance-policies

The confidentiality of those reporting violations is
strictly maintained and they are not subiected to any
discriminatory practice.

The status of the whistle blower complaints received and
resolved by the Bank:

* 2 cases received during the last week of March 2026 was resolved in the
month of April 2026

ADEQUACY OF INTERNAL FINANCIAL CONTROL

The Bank has established a robust framework of policies,
guidelines, processes, and governance structures to ensure
the effective implementation of internal financial controls
across the organisation. These controls are designed to ensure
the orderly and efficient conduct of business operations,
safeguard assets, prevent and detect frauds and errors,
and ensure the accuracy and completeness of accounting
records, thereby enabling the timely preparation of reliable
financial information.

Control assessments are conducted across the Bank's critical
operational and information technology processes, through
a combination of manual and automated controls, to ensure
appropriate coverage and effectiveness.

In our opinion, the Bank has, in all material respects, an adequate
and effective system of internal financial controls, which was
further strengthened during the financial year 2025-26. As
part of the control evaluation process, sample-based testing is
undertaken to assess the design and operating effectiveness of
key controls and to validate the accuracy and completeness of
information captured in the risk registers. Continuous review
and monitoring mechanisms are embedded within the control
framework to ensure its ongoing adequacy and effective
operation, in alignment with the essential components of
internal control as prescribed under the Guidance Note on
Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India.

NO FRAUDS REPORTED BY THE AUDITORS

During the FY 2025-26, neither the Statutory Auditors nor
the Secretarial Auditor has reported to the Audit Committee/
Board or Central Government any instances of material fraud
in the Bank by its officers or employees under Section 143(12)
of the Companies Act, 2013.

DISCLOSURES RELATING TO SUBSIDIARIES,
ASSOCIATES AND JOINT VENTURES

A.    REPORT ON PERFORMANCE AND FINANCIAL
POSITION OF THE SUBSIDIARIES, ASSOCIATES
AND JOINT VENTURES

There were no Subsidiary Company, Associate Company
and Joint Venture of the Bank during the FY 2025-26.

B.    COMPANIES WHICH HAVE BECOME OR CEASED
TO BE SUBSIDIARIES, ASSOCIATES AND JOINT
VENTURES

No company became or ceased to be Subsidiary Company,
Associate Company and Joint Venture of the Bank
during FY 2025-26.

DEPOSITS

The Chapter V of the Companies Act, 2013 does not apply
to the Bank. During the FY 2025-26, the Bank has accepted
deposits from the public in the ordinary course of its banking
business. The details of the deposits are enumerated in the
Financial Statement for the FY 2025-26.

Being a banking company, the disclosures required as per Rule
8(5)(v) & (vi) of the Companies (Accounts) Rules, 2014, read
with Section 73 and 74 of the Companies Act, 2013 are not
applicable to the Bank.

PARTICULARS OF LOANS, GUARANTEES AND/OR
INVESTMENTS

The provisions of Section 186 of Companies Act, 2013 except
sub-section (1) do not apply to a loan made, guarantee given
or security provided by a banking company in the ordinary
course of business.

RELATED PARTY TRANSACTIONS AND
CONTRACTS/ARRANGEMENTS

There was no materially significant related party transaction
entered between the Bank and its related parties, except for
those disclosed in the financial statement.

All the contracts/arrangements/transactions entered by the
Bank with the related parties during the FY 2025-26 were on
arm's length basis; accordingly, the disclosure of particulars
of contracts/ arrangements entered into by the Bank with
related parties referred to in sub-section (1) of section 188
of the Companies Act, 2013 in Form AOC-2 is not applicable.
The requisite disclosure has been made under Schedule 23 of
the notes forming part of audited financial statements for the
financial year ended March 31, 2026

The Bank has formulated a Policy on 'Materiality of Related
Party Transactions' which forms part of the Policy on dealing
with 'Related Party Transactions' is available on the website
of the Bank athttps://www.uiiivansfb.bank.in/corporate/
corporate-governance-policies

CORPORATE SOCIAL RESPONSIBILITY ("CSR")

The Bank has a duly constituted CSR Committee with 4 (Four)
Directors out of which 3 (three) are Independent Directors.
The details of the changes in the composition of the CSR
Committee during the FY 2025-26 have been provided in the
Corporate Governance Report which forms part of the Annual
Report for the FY 2025-26.

The Bank has formulated CSR policy pursuant to Section 135(4)
of the Companies Act, 2013 and the Companies (Corporate
Social Responsibility Policy) Rules, 2014, as amended, in
accordance with the approach and direction given by the
Board of the Bank, taking into account the recommendations
of its CSR Committee, and including guiding principles for
selection, implementation and monitoring of activities as well
as formulation of the annual action plan.

The said Policy is available on the website of the Bank athttps://
www.uiiivansFb.bank.in/corporate/corporate-governance-policies

The detailed Annual Report on the CSR activities for the
FY 2025-26 is annexed to this Report as Annexure-3.

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

A.    CONSERVATION OF ENERGY

Ujjivan has been actively pursuing various initiatives aimed
at achieving its goal of reducing power consumption by
20% by 2030. The Sanchaya Program, a sincere effort
towards Energy conservation relaunched in Q3 FY25 at
corporate and regional enabled the bank to save about
5% of energy during the FY'26 from that of the previous
year's consumption in units. The Bank has extended this
initiative across all the branches and has included this in
the Branch performance scorecard. In addition, the bank
closely monitors the usage of desktops and laptops,
ensuring that they are switched off when not in use.
The use of LED lighting continues as part of our ongoing
efforts to improve energy efficiency. The Bank has
formulated Guidelines for Green Infrastructure and has
been diligently incorporating sustainability aspects while
renovating its facilities. Installation of energy efficient
appliances like Sensor-based lighting, VRV AC systems,
HVAC Timing & temperature control systems etc in our
renovated corporate Main block, close monitoring of the
usage and imparting consistent awareness on mindful
consumption among employees and staff members
have enabled us to save about 16% on energy during the
FY 2025-26 from that of the pre-renovation period.

B.    TECHNOLOGY ABSORPTION

During FY 2025-26, the Bank sustained its focus on
automation and process optimization, adding 21 new
process automation, along with enhancements to 10
existing RPA processes. A total of 69 process currently
automated till Mar'26.

These efforts have resulted in a 12% increase in total FTE
savings, reaching 99.86 FTEs during the year. Cost savings
also witnessed a growth of 7.7%, surpassing H15 crore. Key
departments including Operations, Micro Banking, Credit,
IT, Risk, and HR continued to leverage RPA initiatives to
drive scalability, efficiency, and operational excellence.

C. FOREIGN EXCHANGE EARNINGS AND OUTGO

During the FY 2025-26, 743 transactions (Inward &
Outward) were processed adding up to USD 7,019.83
Lakh during the period. It resulted in an exchange income
of Rs. 0.21 lakhs for the Bank. Total Foreign Exchange
Outward was USD 4,112.84 Lakh during the FY 2025-26

SIGNIFICANT AND MATERIAL ORDERS BY THE
REGULATORS OR COURTS OR TRIBUNALS

During the FY 2025-26, there were no significant and material
orders passed by the regulators or courts or tribunals
impacting the going concern status of the Bank and its
operations in future.

AUDITORS

A. STATUTORY AUDITORS

Pursuant to the receipt of the RBI approval vide its letter
dated April 15, 2024, the Members of the Bank, in the 8^th
Annual General Meeting held on July 26, 2024, appointed
M/s. Deloitte Haskins & Sells, Chartered Accountants
(FRN 117365W) and M/s Abarna & Ananthan, Chartered
Accountants (FRN 000003S) as the Joint Statutory
Auditors of the Bank for a period of 3 (three) consecutive
financial years until the conclusion of 11^th (Eleventh)
AGM of the Bank to be held in the Financial Year 2027-28,
subject to approval of RBI on an annual basis, pursuant to
the RBI Guidelines for Appointment of Statutory Central
Auditors (SCAs)/ Statutory Auditors (SAs) of Commercial
Banks (excluding RRBs), UCBs and NBFCs (including HFCs).

The policy of the Bank on "Appointment of Statutory
Auditors” is available on the website of the Bank at
https://www.uiiivansfb.bank.in/corporate/corporate-
governance-policies

Report of the Statutory Auditors

The Statutory Audit of the Bank for the FY 2025-26
was conducted jointly by M/s Deloitte Haskins & Sells,
Chartered Accountants (FRN 117365W) and M/s Abarna &
Ananthan, Chartered Accountants (FRN 000003S).

The Auditor's Report on the financial Statements of the
Bank for the FY 2025-26 does not contain any qualification,
reservation or adverse remark. The Auditor's Report,
enclosed with the financial statement, forms part of the
Annual Report for the FY 2025-26.

SECRETARIAL AUDITOR

Mr. K. Jayachandran, Practicing Company Secretary
(ACS No.: 11309 and Certificate of Practice No.: 4031)
was appointed as the Secretarial Auditor of the Bank to

conduct the Secretarial Audit of the Bank for the FY 2025¬
26 and until the FY 2029-30 as required under Section 204
of the Companies Act, 2013 and the rules made thereunder
and Regulation 24A of SEBI Listing Regulations. The Bank
provided all assistance and facilities to the Secretarial
Auditor for conducting the audit.

The Secretarial Audit Report is annexed to this Report
as Annexure - 4.

ANNUAL RETURN

In accordance with Section 134(3) and Section 92(3) of the
Companies Act, 2013 and pursuant to Companies (Amendment)
Act, 2017, a copy of the Annual Return for the FY 2025-26 is
available on the Bank's website at www.uiiivansfb.bank.in/
annual-return

DESPATCH OF ANNUAL REPORT

Pursuant to the latest applicable circulars issued by the MCA
and SEBI, in relation to 'Relaxation from compliance with
certain provisions of the SEBI Listing Regulations' relaxing the
requirement of dispatching physical copies of the Annual Report
and the Notice convening the AGM to Shareholders. Members
who wish to have physical copy may write to the Company
Secretary of the Bank atcorporatesecretarial@uiiivan.com
or submit a written request to the Registered Office of the
Bank. In accordance with the aforesaid circulars, the weblink
of the Annual Report and the Notice convening the AGM of the
Bank is being sent in electronic mode only to members whose
e-mail address is registered with the Bank or the Depository
Participant(s). Those members, whose email address is not
registered with the Bank or with their respective Depository
Participant(s) and who wish to receive the Notice of the AGM
and the Annual Report for the financial year ended March 31,
2026, can get their email address registered by following the
steps as detailed in the Notice convening the AGM. The Annual
Report of your Bank shall be available on the Bank's website
viz.,https://www.uiiivansfb.bank.in/annual-report

COMPLIANCE WITH SECRETARIAL STANDARDS

The Bank has complied with the provisions of Secretarial
Standards specified by the Institute of Company Secretaries of
India and notified by the Ministry of Corporate Affairs under
Section 118(10) of the Companies Act, 2013. The Bank has
also complied with the provisions of Secretarial Standard-4 on
voluntary basis.

HUMAN RESOURCES

The Bank prioritizes service mantra both internally and
externally. While technology plays a pivotal role in the effort,
its employees are the catalyst of change and progress at the
Bank. People practices are derived from the Bank's core values;
integrity, responsible, fairness, respect, professionalism and
teamwork. The Bank is driven to build better lives both for
its customers and employees. This drive has bestowed many
accolades to the Bank.

Ujjivan SFB has secured the 26^th position in India's Best
Companies To Work For 2025 (Top 100), has been ranked
among India's Best Workplaces™ for Millennials 2025 in the
Large category (ranks 11 to 50), has been recognized as an
Industry Winner in the Small Finance Bank segment, and has
been named among the Top 25 Best Workplaces in BFSI 2025.

In FY 2026, the Ujjivan SFB marked significant progress across
key HR and employee engagement initiatives. A Trust Index
score increased by 92 to 93 as compared to last FY25 under the
GPTW aspiration rankings, voluntary attrition rates improved
with an overall reduced from 19.44% for FY 25 to 18.61% for
FY'26 and voluntary Infant attrition control rate was reduced
from 4.22% from FY 25 to 3.46% for the FY26. Staffing was
efficiently managed, closing the year at 92% of the budgeted
headcount. Employee satisfaction remained strong, with
increasing score from 86 to 87 for the FY26 on the Amber and
HR processing salaries and benefits with 99.99% accuracy and
100% on-time and operational efficiency was further enhanced
by reducing the FFS TAT.

A total of 84 HR digitization projects were successfully
implemented, collectively saving 1002 man-days. Learning and
development initiatives reached new industry benchmarks,
with employees averaging 48.20 learning hours the highest in
the industry with 88,573employees receiving training.

Talent development saw a career growth for 2207 employees
in the organisation through the Internal Job Posting (IJP)
route and non IJP growth and EDGE (Executive Development
for Growth and Excellence) is High - Potential development
program where currently there are two ongoing batches
covering 248 employees from across AVP/VP and SM/CM grade.
Additionally, physical engagement efforts such as branch
visits and town halls were reduced in the frequency of branch
representative meetings from quarterly to semi-annual, with
Advent of the Amber feedback mechanism.

CORPORATE GOVERNANCE AND BUSINESS
RESPONSIBILITY REPORT

The Bank recognizes its role as a corporate citizen and
endeavours to adopt the best practices and the highest
standards of Corporate Governance through transparency
in business, ethics and accountability to its shareholders,
customers, government, regulators and all other stakeholders.
The Bank's activities are carried out following good corporate
practices and the Bank is constantly striving to make them
better and adopt the best practices.

The Bank believes that timely reporting, transparent
accounting policies and a strong Independent Board go a long
way in preserving shareholders' trust and maximising long¬
term corporate value.

In pursuing the mission "to provide financial services to the
unserved and underserved customers as a responsible mass
market bank focused on building a sustainable tomorrow”,
the Bank has been balancing its dual objectives of "social” and
"financial goals since its inception. "Responsible financing”,
"ethical values” and "transparency” in all its dealings with its

customers, lenders, investors and employees have been the
cornerstone of its operations. Transparency in the decision¬
making process has been providing comfort to all stakeholders,
particularly the customers, lenders and investors.

The Report on Corporate Governance for FY 2025-26 as per
Regulation 34(3) read with Schedule V of the SEBI Listing
Regulations forms part of the Annual Report for FY 2025-26.
The disclosure as required under Section II of Part II of Schedule
V of the Companies Act, 2013 have been provided under
the heading of Remuneration of Directors in the aforesaid
Corporate Governance Report.

A Business Responsibility and Sustainability Report containing
the requisite details as per Regulation 34 (2) of the SEBI
Listing Regulations forms part of the Annual Report for the
FY 2025-26 and is also disclosed on the Bank's website at www.
uiiivansfb.bank.in.

Further, as a responsible bank, Ujjivan believes in creating
a sustainable environment and making a positive social
impact. The Bank understands the importance of integrating
environmental, social, and governance (ESG) factors into its
operations and decision-making processes. Ujjivan aims to
balance financial performance with social responsibility and
environmental stewardship and its sustainability approach
defines its strategy and action to align its operations with
ESG trends, regulatory requirements, and stakeholder
expectations. Sustainable banking practices contribute to a
more resilient financial system, help address environmental and
social challenges, and support the transition to a sustainable
and inclusive economy. The Bank's sustainability framework is
structured around six major pillars, each with ambitious goals
that will guide our efforts over the next decade. These pillars
encompass sustainable operations, empowering communities,
human capital development, effective governance, customer
centricity, and responsible finance. These pillars collectively
reflect our commitment to responsible banking practices that
contribute to a more resilient financial system and support the
transition to a sustainable and inclusive economy.

MANAGEMENT DISCUSSION AND ANALYSIS
REPORT

As required under Regulation 34 and Schedule V of SEBI Listing
Regulations, the Management Discussion and Analysis Report
forms part of the Annual Report for the FY 2025-26.

DISCLOSURE UNDER SECTION 22 OF THE SEXUAL
HARASSMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND REDRESSAL)
ACT, 2013

The Bank has a strict Prevention of Sexual Harassment
("POSH”) Policy in accordance with the statutory requirements
of the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013. This Policy applies to
all categories of employees of the Organisation, including
permanent employees, permanent management, workmen,
temporary employees, trainees (interns), consultants,
advisers, ad hoc employees, daily wage earners, probationers,

apprentices, contract employees, etc., at its workplace or visits
to partner organizations. This Policy recognizes the right of
privacy of every individual and will strive to protect the privacy
of the individuals involved and ensure that the complainant and
the respondent are treated fairly. The Policy ensures that the
career interest of the parties involved in any proceedings under
this Policy will not be adversely affected merely on account of
the complaint made to the Internal Committee or any evidence
provided in connection with any enquiry; however strict action
will be taken against the Respondent if proven guilty post the
enquiry process.

The Status on the Complaints received and resolved by Internal
Committee during the FY 2025-26:

Composition of Internal Committees

The Bank has constituted Internal Committees (IC) in each
of the regions for all administrative units/branches/regional
offices of the Bank. All complaints of Sexual Harassment at
the Workplace are enquired into by the IC having jurisdiction
over the establishment where the Respondent is posted. The
IC forwards a report of its findings to the Employer for action.
Each Regional IC consists of the following members:

•    Presiding Officer: who shall be a woman employed at a
senior level in the region.

•    Secretary: who shall be the Regional HR Manager.

•    2 Members: From amongst Employees in the region,
preferably committed to the cause of women/having
legal knowledge/experience in social work.

•    1 Independent Member: Nominated from amongst NGOs/
associations committed to the cause of women or a person
familiar with the issues relating to Sexual Harassment.

Other Members: Additional members may be co-opted, if
required, from amongst Employees working in senior positions
in the region, especially from business, operations and
control functions

Functions of IC

The Committee is expected to conduct a fair, prompt and
impartial process of investigating all the complaints it receives.
During a redressal process, the Complaints Committee/s
are required to assure confidentiality, non-retaliation
and recommend interim measures as needed to conduct
a fair enquiry.

POLICIES

To ensure better corporate governance, adherence to various
laws and regulations as applicable to the Bank and better
management of the organization as a whole, the Bank has
formulated various policies including the policies mentioned

below. These policies are available on the Bank's website at
www.uiiivansFb.bank.in/corporate-governance-policies.

A brief description of below mentioned policies/code have
been given in Annexure-5 of this Report.

1.    Policy for Determination of Materiality of Event/
Information for Disclosures

2.    Code of Conduct for Prevention of Insider Trading and
Code of Fair Disclosure and Conduct

3.    Corporate Social Responsibility Policy

4.    Nomination and Remuneration Policy

5.    Policy on Board Diversity

6.    Policy on Code of Conduct

7.    Related Party Transactions Policy

8.    Dividend Distribution Policy

9.    Familiarization Programme

10.    Policy on Archival of Documents

11.    Record Retention Policy

12.    Whistle Blower Policy

13. Terms and    Conditions of    Appointment of

Independent Directors

14.    Policy on Appointment of Statutory Auditors

CORPORATE    GOVERNANCE COMPLIANCE

CERTIFICATE

The Bank has obtained a certificate from K. Jayachandran,
Practicing Company Secretary, certifying that the Bank has
complied with the conditions of the Corporate Governance
as stipulated in Regulations 17 to 27 and clauses (b) to (i) of
Regulation 46 (2) and other applicable regulations of Chapter IV
pertaining to Corporate Governance and paragraphs C, D and E
of Schedule V of the SEBI Listing Regulations for the FY 2025-26.

The certificate is annexed to this Report as Annexure-6.

KEY INITIATIVES WITH RESPECT TO STAKEHOLDER
RELATIONSHIP, CUSTOMER RELATIONSHIP,
ENVIRONMENT, SUSTAINABILITY, HEALTH AND
SAFETY

During FY2025-26, the Service Quality function continued
to strengthen the Bank's customer-centric agenda through
focused interventions across service governance, grievance
redressal, frontline capability building, digital adoption,
and customer feedback management. Key outcomes reflect
measurable progress in service standards, customer trust, and
operational excellence.

Through disciplined governance, stronger customer listening
and experience-led transformation initiatives, the function
has delivered tangible outcomes while establishing a
strong foundation for the Bank's next phase of customer
experience maturity.

Service Governance

The Service Quality function further strengthened governance
and control oversight through a robust Service Index
framework, which now monitors 316 predefined service quality
parameters, significantly expanded from 160 parameters in the
previous year. This broadened coverage enhanced monitoring
rigor across products, channels, and support functions.

The Bank sustained strong service standards under this
framework, with the Bank-level Service Index closing at 92
points on a scale of 100 points, while maintaining an average
of 89 points for the FY 25-26, demonstrating consistency in
service delivery performance. This is a significant improvement
after the bank has recalibrated the service index parameters
with tighter performance benchmarking. As a result, the service
index commenced with 85 points in the beginning of the year
and seen a consistent improvement by 7 points by reaching
92 points by March 2026. These outcomes were supported
through strengthened review mechanisms, root cause analysis,
process re-engineering and functional accountability.

Grievance Redressal and Service Recovery Improvements

Customer Grievance Resolution Mechanism and Service
Recovery remained a key focus area, with continued progress
in complaint reduction, turnaround times, and proactive
risk mitigation.

Focused interventions on root-cause correction contributed
to a 19% reduction in complaint volumes year-on-year, and an
overall 35% reduction since FY2023-24, reflecting the impact
of sustained quality improvements.

Service responsiveness also improved, with:

•    96% of service requests resolved within timelines, and

•    99% complaint resolution within prescribed TAT sustained
for the second consecutive year.

The Service Recovery and Incident Management framework
was further strengthened through early issue detection,
monitoring controls, and structured root cause analysis,
supporting faster resolution and reduction in repeat failures.
These efforts contributed materially to customer trust and
operational resilience.

Strengthening Customer-Centric Service Delivery

A major focus area during the year was reinforcing customer
centricity across touchpoints through a combination of
elevating service culture, process enhancements, and
capability-building interventions. Service Quality initiatives
were designed not only to achieve consistency in service
standards but also to embed a stronger customer-first mindset
across frontline and support teams.

A key milestone was the rollout of structured Service
Excellence training Program as "Ujjivan Pulse” covering 2,250
employees, aimed at strengthening core service principles,
complaint handling effectiveness, and customer engagement
standards. Through structured learning programs, role-based
capability interventions, and service excellence anchors, teams

were enabled to deliver more consistent and responsive
service experiences.

Customer centricity was also strengthened through a deeper
focus on Voice of Customer (VoC) inputs. feedback from
complaints, service requests, branch interactions, surveys,
digital channels, frontline observations and monthly customer
connects at branches was systematically reviewed to identify
pain points and implement process enhancements. This
strengthened the Bank's ability to move beyond reactive issue
resolution toward root-cause-led service improvement.

Specialized Service Initiatives: Aajeevan Services, An
Approach to Life Events Based Banking Services

We understand that life events, whether joyful or saddening,
require empathy, support, and assurance. To address this need,
we have continued our flagship program "Aajeevan," a unique
life-events-based banking program that provides personalized
services to help customers navigate life's milestones with ease.

Aajeevan offers a range of services, including: nomination
facilities, joint accounts, settlement of claims for deceased
account holders, priority and doorstep services for senior
citizens and specially abled customers, special services like
adding mandate holders or power of attorney basis the
customer's life needs.

To ensure successful implementation, the Service Quality
function has conducted a specially designed one-day workshop
on Aajeevan services year on year, focused on supporting
customers during critical life events with empathy-led service
solutions. 577 participants trained across 26 classroom
batches, and to increase engagement, an e- learning module
on the Program was introduced. This helped in reiterating the
importance of the program building expectation on service
delivery across 2,595 employees covered through virtual
learning modules.

Key outcomes under this initiative included:

•    99.37% resolution of life-event service requests
within TAT, and

•    99.98% settlement of eligible claims within TAT,

Over the years, the promotion of Aajeevan services has helped
in improvement of resolution of Aajeevan service requests to
>99% year on year from 94% in FY 22-23.

New initiatives undertaken to provide seamless
customer service and safety of digital transactions:

•    Digital Transformation and Alternate Channel

Adoption - Supporting the Bank's digital transformation
agenda, the team contributed to stronger adoption and
governance through the launch of the Alternate Channels
Dashboard, providing branch teams with real-time channel
performance insights. This intervention contributed to
79.82% usage across alternate channels, supporting
migration toward efficient digital servicing and improved
operational agility. The dashboard has enabled better
identification of adoption gaps, performance trends, and
service opportunities at the branch level.

• Launch of Digitized Net Promoter Score (NPS) & CSAT
Program - Experience-Led Transformation A major
strategic milestone during FY2025-26 was the launch
of the Net Promoter Score (NPS) framework, through
a digital solution representing a shift from traditional
transactional metrics to a more structured customer
experience metrics. The NPS program was launched
across critical customer touchpoints, creating a
foundational mechanism to:

•    Capture customer advocacy and satisfaction signals,

•    Generate actionable insights from voice of customers,

•    Drive a transition from reactive service management
to proactive experience management.

•    Scale-up of capability-building interventions across
business and product segments

This initiative has established a strong foundation
for enterprise-wide customer listening and long-term
loyalty enhancement.

Customer Connect and Awareness:

•    As an ongoing customer awareness programs, the
bank has launched various customer awareness
campaigns such as;

•    A significant increase in fraud incidents was
reported across the country. To address this
concern and ensure our customers are aware
of such incidents, a customer awareness
campaign was conducted through SMS on
safety measures in 11 different regional
language informing customer, while using
digital channels or on receipt of any calls not to
share banking credentials over suspicious links.

•    To maximize impact, bank unified its customer
awareness initiatives into a coordinated
strategy that reaches both existing clients and
the general public through a multi-channel
framework. By deploying approximately 94
lakh SMS alerts, 5 lakh website banners, and
10,000 social media engagements monthly—
alongside WhatsApp campaigns, ATM
messaging, and Financial Literacy Programs
reaching 15,000 individuals—the bank
has significantly expanded its educational
footprint. This proactive outreach is paired with
rigorous security enhancements; by integrating
feedback from the Internal Ombudsman and
analyzing fraud trends, the bank implemented
advanced controls that have fortified digital
channels and strengthened the protection of
customer funds.

•    Bank has been conducting a monthly customer
service committee as "Let's Connect” which

provide a vital platform for customers to
share feedback, voice grievances and suggest
improvements in banking services. 83,611
customers from various product segment
had participated in these meetings across
our branches in FY 24-25. Feedbacks received
during these meetings were reviewed and
implemented as necessary. During these
meetings, the customers were also educated on
key customer service aspects such as reporting
and awareness on unauthorized transactions,
awareness on Nomination facility, Updated
cheque clearing process, TDS exemption
process, Key features of Mobile Banking and
introduction to the new EZY App launched
by the bank, various services introduced in
WhatsApp and Video Baking, safety tips on
cyber fraud, ATM fraud etc.

Health and Safety

The Bank places the highest priority on the health,
safety, and well-being of its employees and customers.
Over the years, several structured initiatives have been
implemented to strengthen workplace safety, enhance
infrastructure and ensure a seamless operational
environment. Key highlights are as follows:

•    Comprehensive fire safety protocols are rigorously
maintained across all PAN India offices and branches
through the deployment of fire extinguishers
and related systems. To ensure preparedness,
half-yearly fire drills are conducted at the Head
Office and Regional Offices, supported by regular
safety awareness programs for employees
across all locations.

•    The Bank remains committed to fostering a
safe, comfortable and employee-centric work
environment. As part of its employee well-being
initiatives, air conditioning systems have been
installed across all offices to ensure a consistent
and comfortable workplace for employees and
customers, particularly during extreme weather
conditions. This is further reinforced by periodic
preventive maintenance of all electrical equipment
to ensure safety and uninterrupted operations.

•    In line with the Bank's commitment to inclusivity,
127 ramps have been installed across the branch
network to facilitate easy access for specially-abled
customers and employees, thereby promoting a
more accessible banking environment.

•    Deep cleaning and pest control services are
systematically carried out across all offices. These
measures ensure a clean, hygienic and professional
environment, contributing to the overall well-being
of employees and enhancing customer experience.

Cash-settled Stock Appreciation Rights Agreement (CSARs)

During the year 2025-26, with the prior approval of the RBI, the NRC of the Bank through its resolution passed on January 13,
2025 granted 23,09,415 CSARs to Mr. Ittira Davis, former MD & CEO of the Ujjivan bank towards the non-cash portion of the
approved variable pay for the FY23-24; details of the CSAR granted are given below:

CSAR Vesting schedule

1^st tranche has been executed and paid as per below.

Employees Safety Measures

As an employee first organization, Ujjivan conducts
annual health check-up for all its employees once in two
years. This annual health check-up is followed up by the
Partner by providing free consultation on the reports
and also advising employees with high-risk reports. To
support its employees, Ujjivan also has a facility of 24x7
"Doctor on Call” teleconsultation This facility has been
made available for employees and their dependents to
consult doctors during emergencies. While the services
were available for physical and emotional support. Apart
from this, employees and their family including parents
are covered under health risk facilitating health benefits
and additional benefits/limits under the top up plans.
Employees are covered under accidents, term life and
also for their future service gratuity.

OTHER DISCLOSURES

A.    The Bank is not required to maintain cost records as
specified by the Central Government under sub-section
(1) of Section 148 of the Companies Act, 2013.

B.    Disclosure as required under Rule 8(5)(xi) and 8(5)(xii) of
the Companies (Accounts) Rules, 2014 does not apply to
the Bank for FY 2025-26.

C.    The Bank has adhered to all applicable provisions of the
Maternity Benefit Act, 1961, ensuring full compliance
with statutory requirements.

D.    None of the directors of the Bank are disqualified as
per provisions of Section 164(2) of the Companies Act,
2013. The directors have made necessary disclosures, as

required under various provisions of the Companies Act,
2013, SEBI Listing Regulations and RBI guidelines.

ACKNOWLEDGEMENT

We place on record our gratitude to our employees at all
levels who have contributed to the growth and sustained
success of the Bank through their dedication, hard work,
cooperation and support.

We would like to thank all our customers, vendors, bankers,
investors, auditors, media and other business associates for
their continued support and encouragement during the year.

We also thank the Government of India; the Government of
Karnataka; the Ministry of Commerce and Industry; the Ministry
of Finance, Ministry of Corporate Affairs; the Securities and
Exchange Board of India, the Stock Exchanges, the Central
Board of Indirect Taxes and Customs; the RBI; the Central
Board of Direct Taxes and all other government agencies for
their support during the FY 2025-26 and look forward to their
continued support in future.

For and on behalf of the Board of Directors

Sd/-    Sd/-

B A Prabhakar    Sanjeev Nautiyal

Part-Time Chairman and    MD & CEO

Independent Director    DIN: 08075972

DIN: 02101808

Date: May 08, 2026
Place: Bengaluru