GLOBAL AND DOMESTIC ECONOMIC ENVIRONMENT
The global economy faced fresh challenges during FY 2025 26 due to heightened
geopolitical tensions, particularly the conflict in West Asia, supply chain disruptions,
elevated energy prices, and persistent trade uncertainties. These developments increased
volatility in global financial markets and created renewed concerns over growth and
inflation across major economies.
Taking into account these prevailing global conditions, the latest estimates of the
International Monetary Fund project global growth at 3.1% in 2026 and 3.2% in 2027,
reflecting the impact of geopolitical conflicts, elevated commodity prices, and financial
market adjustments.
Amidst the uncertain global environment, India continued to demonstrate strong
macroeconomic resilience supported by robust domestic demand, sustained investment,
ongoing structural reforms, and a healthy financial sector. India's real GDP growth for FY
2025-26 is estimated at 7.6%. Looking ahead, the Reserve Bank of India has projected GDP
growth of 6.6% for FY 2026-27 in its June 2026 policy and kept the policy repo rate
unchanged at 5.25% while continuing with a neutral policy stance.
As per the latest available data of March 2026, India's banking sector continued to
remain strong and resilient. Scheduled Commercial Banks reported Capital to Risk Weighted
Assets Ratio (CRAR) of 17.68%, well above regulatory requirements. Asset quality improved
further with Gross NPA declining to 1.73% and Net NPA to 0.40%. Liquidity Coverage Ratio
(LCR) remained comfortable at 123.70%. Annualised Return on Assets (RoA) and Return on
Equity (RoE) stood at 1.33% and 13.06%, respectively, while Net Interest Margin (NIM)
stood at 3.26%.
Among Public Sector Banks, financial parameters also remained robust as of March 2026,
with Gross NPA at 1.93%, Net NPA at 0.39%, Return on Assets (RoA) at 1.10%, and Net
Interest Margin (NIM) at 2.84%, reflecting sustained improvement in asset quality,
profitability, and operational efficiency.
Bank credit growth remained broad-based at 13.8% year-on-year as compared to 11.0% a
year ago. Deposit growth also remained healthy, with aggregate deposits of Scheduled
Commercial Banks growing by around 10.8% year-on-year supporting continued credit
expansion and liquidity stability in the banking system.
Despite elevated global uncertainties, India's strong macroeconomic fundamentals,
prudent monetary and fiscal policies, digital transformation, infrastructure development,
and commitment to inclusive growth position the economy favorably to sustain growth
momentum. Supported by strong capital buffers, improved asset quality, adequate liquidity,
and expanding digital adoption, the Indian banking sector remains well-positioned to
support investment, financial inclusion, and the nation's long-term economic aspirations.
FINANCIAL PERFORMANCE
The Bank continued its strong growth momentum in business, profitability, asset
quality, operational efficiency, and customer acquisition during the financial year ended
March 31, 2026, delivering one of its best-ever financial performances and further
strengthening its position among Public Sector Banks.
The Bank's Total Business increased by Rs.1,16,657 crore to Rs.6,78,614 crore as on
March 31, 2026 fromRs.5,61,957 crore in the previous year, registering a robust growth of
20.76%. Gross Advances grew by 24.16% to Rs.3,10,423 crore, while Total Deposits grew by
18.03% to Rs.3,68,191 crore, reflecting strong and broad-based business expansion.
On the liability side, the Bank continued to strengthen its granular and low-cost
deposit franchise. Savings Bank deposits registered strong growth of 15.30%, increasing by
Rs.16,530 crore from Rs.1,08,035 crore to Rs.1,24,565 crore during the year. CASA deposits
increased by 10.85% to Rs.1,50,936 crore, while Retail Term Deposits recorded healthy
growth of 17.81% to Rs.1,83,601 crore. The Bank maintained a strong low-cost deposit
profile with Domestic CASA ratio of 41.46%, while high-cost bulk deposits were contained
below 6% of total deposits. Significantly, CASA and Retail Term Deposits together
contributed 94% of total deposits, demonstrating the strength and stability of the Bank's
retail deposit franchise.
The Bank reported its highest-ever annual Net Profit of Rs.5,208 crore as against
Rs.3,335 crore in the previous year, registering an impressive growth of 56.16%. Notably,
the Bank delivered net profit of above Rs.1,000 crore in all four quarters of FY 2025-26,
increasing sequentially from Rs.1,111 crore in Q1 to Rs.1,505 crore in Q4, reflecting
consistency and sustainability in earnings.
The Net Interest Income (NII) increased by 15.46% to Rs.12,574 crore, while Operating
Profit crossed the landmark Rs.10,000 crore and increased by 15.40% to Rs.10,026 crore.
Operating Income increased by 10.80% to Rs.18,210 crore. Despite cumulative repo rate cuts
of 125 bps, the Bank maintained healthy margins with Global NIM at 3.21% and Domestic NIM
at 3.33%. The Bank's profitability ratios continued to strengthen, with RoA improving from
0.92% to 1.23%, remaining above 1% throughout the year, and RoE improving from 16.28% to
20.42%. Further, the Cost-to-Income ratio improved from 47.14% to 44.94%, while Cost of
Deposits declined from 5.08% to 4.97%, reflecting improved operating efficiency and
effective liability management.
The Bank continued its remarkable journey in asset quality improvement. Gross NPA
declined from 2.14% to 1.42%, while Net NPA improved from 0.37% to 0.21%, among the best
in the industry. The Bank maintained an industry-leading Provision Coverage Ratio of
97.50%, while Credit Cost remained low at 0.30%.
Fresh slippages during FY 2025-26 reduced significantly by 66% to Rs.1,211 crore from
Rs.3,568 crore in the previous year, with Slippage Ratio improving from 1.68% to 0.49%,
one of the lowest in the industry. During the year, the Bank recovered Rs.3,576 crore,
which was nearly 2.95 times of fresh slippages, reaffirming strong recovery and resolution
mechanisms.
The Bank's strategic focus on Retail, Agriculture and MSME (RAM) segments continued to
yield strong results. RAM advances increased by 34.91% to Rs.2,45,014 crore and
constituted 78.93% of total advances. Within RAM portfolio,
Retail advances grew by 45.12%, Agriculture advances by 39.27%, and Core MSME advances
by 23.77%, reflecting diversified and granular credit growth.
The Bank's capital position remained strong, with Capital Adequacy Ratio (CRAR)
improving to 19.78%, including CET-1 ratio of 16.94%, significantly above regulatory
requirements and among the best in the industry.
The Bank also significantly expanded its customer outreach during the year by adding
163 new branches, 3 Regional Offices, 154 ATM/CRMs, and 2,052 Business Correspondents,
further strengthening its commitment towards financial inclusion, customer accessibility,
and sustainable growth.
The consistent improvement in business growth, profitability, operating efficiency,
asset quality, recovery performance, capital strength, and customer acquisition reaffirms
the Bank's transformation into a strong, sustainable, and future-ready institution,
well-positioned to create long-term value for all stakeholders.
INCOME AND EXPENDITURE ANALYSIS
The interest received on advances has increased by 19.32% (YoY) to Rs.24,082 Crores for
the financial year ended 31st March 2026 as compared to Rs.20,182 Crores
received during the previous financial year ended 31st March 2025. Interest
earned on investments increased by 6.82% to Rs.7,518 Crores in FY 2025-26 as against
Rs.7,038 Crores in FY 2024-25. Consequently, total interest income increased by 13.38% to
Rs.31,896 Crores in FY 2025-26 as compared to Rs.28,131 Crores in the previous year.
The Bank's non-interest income also registered growth and stood at Rs.5,636 Crores in
FY 2025-26 as against Rs.5,545 Crores in FY 2024-25, registering a growth of 1.64%.
Accordingly, Total Income increased by 11.45% to Rs.37,532 Crores in FY 2025-26 as against
Rs.33,676 Crores in FY 2024-25.
On the expenditure side, interest paid on deposits increased to Rs.16,577 Crores in FY
2025-26 as against Rs.15,008 Crores in FY 2024-25, registering a growth of 10.45%, in line
with growth in deposit base. Interest paid on borrowings increased by 22.98% to Rs.2,745
Crores as against Rs.2,232 Crores in the previous year. Consequently, total interest
expenses increased by 12.07% to Rs.19,322 Crores in FY 2025-26 from Rs.17,241 Crores in FY
2024-25.
Despite business expansion and branch network growth, the Bank maintained strong cost
discipline. Operating Expenses increased moderately by 5.64% to Rs.8,184 Crores as against
Rs.7,747 Crores in the previous year, which was lower than the growth in operating income,
reflecting improved operating efficiency. Staff expenses remained largely stable at
Rs.4,689 Crores, while other operating expenses stood at Rs.3,495 Crores during the year.
Total expenses increased by 10.08% to Rs.27,506 Crores in FY 2025-26 as against Rs.24,988
Crores in FY 2024-25.
The Net Interest Income (NII) increased by 15.46% on YoY basis to Rs.12,574 Crores for
the year ended 31.03.2026 as against Rs.10,890 Crores for the year ended 31.03.2025.
Operating Income increased by 10.80% to Rs.18,210 Crores, while Operating Profit
crossed the significant milestone of Rs.10,000 Crores and increased by 15.40% to Rs.10,026
Crores. The Bank's Cost-to-Income ratio improved from 47.14% to 44.94%, reflecting
enhanced operational efficiency and effective cost management.
Despite cumulative policy repo rate reductions of 125 bps during the year, the Bank
maintained healthy margins with
Global NIM at 3.21% and Domestic NIM at 3.33%. Improved income profile, efficient
liability management, moderation in cost of deposits from 5.08% to 4.97%, and disciplined
expenditure management contributed to strong profitability, resulting in the Bank
reporting its highest-ever Net Profit of Rs.5,208 Crores, registering a growth of 56.16%
over the previous year.
CAPITAL ADEQUACY RATIO
The Bank's Capital Adequacy Ratio continued to remain strong and improved further by 74
basis points to 19.78% as on 31.03.2026 as against19.04% as on31.03.2025, which is
significantly above the regulatory requirement, reflecting the Bank's strong capital
position and its ability to support future business growth.
The Bank's Common Equity Tier 1 (CET-1) ratio stood at as on 31.03.2026 as against
16.44% as on 3 1.03.2025, while
Tier-II capital ratio improved to 2.84% from 2.60% during the same period. The Bank's
total capital funds increased to Rs.39,144 crore as on March 31, 2026 fromRs.32,306 crore
in the previous year.
The consistently strong capital buffers, supported by healthy internal profit
generation, improved asset quality, and prudent risk management, position the Bank
comfortably to support accelerated business growth, meet regulatory requirements, and
pursue strategic growth opportunities in the years ahead.
BRANCH NETWORK
The Bank continued to strengthen its physical presence and customer outreach during FY
2025-26. The Bank has 3,494 Domestic Branches as on 31st March 2026 as against
3,335 Branches as on 31st March 2025, registering a net addition of 159
branches during the year.
The branch network continues to have a strong presence across rural and semi-urban
geographies, supporting the Bank's commitment towards financial inclusion and inclusive
economic growth. Out of the total branch network, around
58% of branches are located in Rural and Semi-Urban centres, enabling deeper
penetration in underbanked and priority sectors.
The Bank expanded its customer touch points by adding 154 ATM/CRMs and 2,052 Business
Correspondents during the year, taking the total customer touch points to 19,336 as on
March 31, 2026. The continued expansion of the Bank's physical and alternate delivery
channels reinforces its commitment towards customer convenience, financial inclusion, and
sustainable business growth.
Capital:
During the year 2025-26, the Bank has not raised equity capital.
The paid-up capital of the Bank stands at Rs.19,256.59 Crore as on 31st
March 2026. The Government of India shareholding stands at 92.44% as on 31st
March 2026.
During the Financial Year 2025-26, Bank has issued Basel III Tier II Bonds (Series VI)
aggregating to Rs.1000 Crore through Private Placement basis subscribed by Qualified
Institutional Buyers (QIBs).
Dividend:
Board of Directors of the Bank did not recommend any dividend during the Financial Year
2025-26.
Market capitalization of the Bank:
| Particulars |
Market capitalization as on 31.12.2025 (Rs. in Crores) |
Rank among listed entities |
| BSE Ltd |
74120 |
140 |
| National Stock Exchange Ltd |
74113 |
141 |
Corporate Governance:
The Board of the Bank is firmly committed to upholding the highest standards of
Corporate Governance, both in letter and in spirit. The Bank has established a
comprehensive and well-documented framework of policies and practices to ensure effective
governance. A detailed report on Corporate Governance is presented in a dedicated section
of the Annual Report.
Investor Education & Protection Fund (IEPF):
In accordance with the guidelines issued by the Ministry of Corporate Affairs (MCA),
Government of India, the Bank has transferred all unpaid dividend amounts up to the
financial year 2013 14 to the Investor Education and Protection Fund (IEPF).
The Bank remains fully compliant with the regulations and directives prescribed by the
Regulatory Authorities and the Government of India. Shareholder grievances are addressed
promptly and efficiently, ensuring transparency and trust in all dealings.
Directors' Responsibility Statement:
The Directors confirm that, in the preparation of the annual accounts for the year
ended 31st March 2026:
Accounting Standards have been duly followed, together with proper explanations for any
material departures, if applicable.
Accounting Policies had been selected and applied consistently and made judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the state
of affairs of your Bank at the end of the financial year and of the profit and loss of
your Bank for that period.
Proper and sufficient care was taken for the maintenance of adequate Accounting Records
in accordance with the provisions of the relevant Acts for safeguarding the assets of your
Bank and for preventing and detecting fraud and other irregularities.
The Annual Accounts were prepared on a going concern basis.
The Bank has established and maintained adequate Internal Financial Controls, which
were operating effectively during the year. For this purpose, “Internal Financial
Controls” refers to the policies and procedures adopted to ensure orderly and
efficient conduct of business, adherence to policies, safeguarding of assets, prevention
and detection of frauds and errors, accuracy and completeness of accounting records, and
timely preparation of reliable financial information.
Proper systems are in place to ensure compliance with all applicable laws, and such
systems have been found adequate and operating effectively.
BOARD OF DIRECTORS
The business of the Bank is vested with the Board of Directors. The MD & CEO and
EDs function under the superintendence, direction and control of the Board. The strength
as on 31.03.2026 were 10 directors comprising 01 Non-executive Chairman, 03 whole time
Directors, 01 GOI Nominee Director, 01 RBI Nominee Director, 03 Part time Non-Official
Directors and 01 director elected from amongst the shareholders to duly represent their
interest.
Position of the terms of the Directors during the FY 2025-26
| S. No. |
Name |
DOJ |
DOR/Term Ends on |
Designation |
| 01 |
Shri Srinivasan Sridhar |
21/02/2024 |
20/02/2027 |
Non-Executive Chairman & Part Time Non-Official Director |
| 02 |
Shri Ajay Kumar Srivastava |
01/01/2023 |
08/10/2027 |
Managing Director & Chief Executive Officer |
| 03 |
Shri Joydeep Dutta Roy |
31/01/2024 |
19/10/2028 |
Executive Director |
| 04 |
Shri Dhanaraj T |
10/03/2024 |
09/03/2027 |
Executive Director |
| 05 |
Ms Neelam Agrawal |
05/08/2024 |
UFO * |
Govt. Nominee Director |
| 06 |
Shri Thomas Mathew |
03/03/2026 |
UFO * |
RBI Nominee Director |
| 07 |
Shri G Venkataramanan |
03/12/2025 |
02/12/2028 |
Shareholder Director |
| 08 |
Shri Suresh Kumar Rungta |
11/04/2025 |
10/04/2026 |
Part Time Non-Official Director |
| 09 |
Shri B Chandra Reddy |
11/04/2025 |
10/04/2026 |
Part Time Non-Official Director |
| 10 |
Shri Deepak Sharma |
11/04/2025 |
10/04/2026 |
Part Time Non-Official Director |
*Until Further orders
During the FY 2025-26, the following Directors' tenure ended as below:
| 01 |
Ms Sonali Sen Gupta |
14/07/2023 |
03/03/2026 |
RBI Nominee Director |
| 02 |
Shri Sanjaya Rastogi |
03/12/2022 |
02/12/2025 |
Shareholder Director |
ACKNOWLEDGEMENT
The Board of Directors is grateful for the valuable guidance and support received from
the Government of India, Reserve Bank of India, Securities and Exchange Board of India
(SEBI). Stock Exchanges, State Governments, Financial Institutions, and all Overseas
Regulators. The Board of Directors acknowledge with thanks our valued Customers,
Employees, Unions, Officers Associations, domestic and international banking group, the
shareholders & other stakeholders for their valued support and continued patronage
with the Bank.
The Board also wishes to place on record its profound appreciation for the valuable
contribution of the Bank's staff at all levels and looks forward to their continued
involvement and commitment towards achieving the future goals.
|
For and on behalf of the Board of Directors |
| Place: Chennai |
Ajay Kumar Srivastava |
| Date: 21.05.2026 |
Managing Director & Chief Executive Officer |
|