Our business is built on a broad and diversified customer base rather than a few large relationships. The Retail, Agriculture, and MSME (RAM) segments now account for 86% of advances, creating a portfolio that is both balanced and resilient. Our focus on relationship-driven, higher-yielding businesses, together with a selective approach to lower-return segments, reflects our disciplined growth strategy. Supported by prudent collateral practices and an increasing share of secured lending, we have continued to grow while maintaining strong asset quality.

Our credit philosophy emphasizes building strong lending relationships rather than focusing on large individual exposures. We continue to maintain a diversified portfolio across the Retail, Agriculture and MSME segments, reducing concentration risk and supporting portfolio resilience. This approach is supported by a prudent risk management framework that includes Board-approved underwriting standards, a machine learning-based Early Warning Signal system and disciplined recovery processes throughout the credit lifecycle. Together, these measures have helped us maintain strong asset quality and reinforce our position among leading mid-sized private sector banks.

Capital strength is not merely a regulatory requirement; it is a strategic enabler of sustainable growth. The Bank closed FY 2025-26 with a Capital Adequacy Ratio of 18.76%, supported predominantly by high-quality Tier I capital, providing significant capacity to support future business expansion. This strength is underpinned by consistent internal capital generation through sustained profitability, enabling the Bank to strengthen its capital base, reduce dependence on external fundraising and maintain financial flexibility. Coupled with a stable AA credit rating and prudent management of risk-weighted assets, the Bank remains well positioned to execute its growth strategy while maintaining a strong capital foundation.

Our digital strategy is founded on the belief that technology should enhance customer engagement and improve service delivery. This approach has driven strong digital adoption across our franchise, with 97% of transactions now conducted through digital channels. DLite has established itself as a leading banking application in its category, supporting a seamless and convenient banking experience for customers.

At the same time, we continue to invest in our physical distribution network, opening 13 new branches during the year. This reflects our commitment to maintaining strong customer relationships and ensuring accessibility across our markets. By combining digital capabilities with a growing branch network, we continue to build a customer franchise that is efficient, accessible and well-positioned for long-term growth.

Our historical strength is anchored in a well-established Southern Indian presence. Long-standing relationships with households, traders, farmers, and MSMEs allow us to seamlessly adapt to diverse credit behaviors and customer needs in every new territory we enter. This scalable framework supports highly prudent lending decisions, strong customer loyalty, and a resilient, low-cost CASA base. The consistent performance of our RAM portfolio demonstrates that our unique combination of local market insight and disciplined execution is highly effective on a national scale.

Responsible banking is integrated into our business strategy and guides the way we allocate capital, manage risk, and engage with stakeholders. This commitment is reflected in our CRISIL ESG Rating of 68, highlighting our continued focus on strong governance, transparent disclosures, and sustainable finance practices. Beyond our business operations, we remain committed to creating a positive social impact. During the year, we invested ₹40.65 Crore across 41 CSR projects covering healthcare, education, water security, and women’s livelihood initiatives. These efforts reflect our belief that sustainable business growth is closely linked to the well-being and development of the communities we serve.

Our governance framework is built on strong institutional oversight, ensuring that decision-making remains aligned with long-term shareholder interests. The third consecutive term of MD & CEO of the Bank is a testament to the strength, stability and effectiveness of the leadership, reaffirming the trust in the strategic direction of the Bank. The Bank has a designated Lead Independent Director which reflects enhanced governance structure that promotes objectivity, transparency and balanced decision making.

This framework supports consistency across business cycles while reducing the influence of any single stakeholder group. The governance disclosures presented in this report reflect our commitment to maintaining high standards of corporate governance and accountability beyond regulatory compliance.