Dear Shareholders,

The Board of Directors are pleased to present the 107th Annual Report of the Bank for
the Financial Year 2025- 26 together with the 'Audited Balance Sheet', 'Profit & Loss
Account', 'Cash-Flow Statement' and the report on 'Management Discussion & Analysis'.
The 'Corporate Governance Report' and 'Business Responsibility Report' also form part of
the Annual Report 2025-26.

Indian economy has demonstrated remarkable resilience Despite a succession of
unprecedented global shocks in recent years?including the COVID-19 pandemic, the Russia-
Ukraine conflict, escalating tariff measures led by the US, and ongoing tensions in West
Asia. Strong domestic demand dynamics have served as a critical growth anchor, cushioning
the economy from external headwinds. Equally, policymakers deserve significant credit.
Both the Government and the Reserve Bank of India (RBI) have adopted a proactive and
forward-looking approach, putting in place appropriate guardrails and undertaking timely
policy interventions to preserve macroeconomic stability. These measures have helped
contain the transmission of global shocks to the domestic economy, strengthened financial
sector resilience, and ensured that the banking system remains well- capitalised, liquid,
and capable of supporting the country's growth aspirations.

1. Global Developments:

The global economy held up well in 2025 despite facing multiple headwinds including
heightened trade protectionism, geopolitical tensions, elevated public debt levels, and
policy uncertainty. Global growth improved marginally to 3.4% from 3.3% in 2024, supported
by strong investment in artificial intelligence and technology sectors, accommodative
financial conditions, and adjustments in global supply chains. Inflation moderated
significantly from 5.8% to 4.1% as energy prices softened and supply chain bottlenecks
eased, although services inflation remained sticky across major advanced economies. Global
trade volumes expanded by 5.1%, outperforming global GDP growth, partly due to
front-loading of imports ahead of anticipated tariff increases.

The outlook for 2026, however, has weakened. Following the outbreak of the West Asia
conflict in early 2026, global growth projections have been revised downward to 3.1%,
while inflation expectations have been revised upward to 4.4%. Rising energy prices,
disruptions in shipping routes, and heightened risk aversion are expected to create a more
challenging environment for global growth, trade, and financial stability.

The RBI in its 2025-26 Annual report identifies "the West Asia conflict as the
most significant risk to the Indian economic outlook.

2. India: Macroeconomic Overview

Against a difficult global backdrop, India remained the fastest-growing major economy,
with GDP growth accelerating to 7.6% in 2025-26 from 7.1% in the previous year. Growth was
driven primarily by robust domestic demand, strong private consumption, sustained
investment activity, and supportive policy measures. The services sector remained the
principal engine of growth, contributing nearly 69% of overall GVA growth, while
manufacturing recorded a strong expansion of 11.5%, aided by industrial credit growth and
policy initiatives such as the Production Linked Incentive (PLI) scheme. Agricultural
growth moderated to 2.4% from 4.2% due to weather-related disruptions, although record
foodgrain and horticulture production helped cushion the impact. Fiscal management also
remained prudent, with the Centre achieving its fiscal deficit target of 4.4% of GDP
through higher revenues and controlled revenue expenditure growth while staying focused on
capex push.

Inflation dynamics improved significantly during the year. Headline CPI inflation
declined sharply to 2.1% from 4.6% in 2024-25, primarily reflecting lower food inflation
and favourable base effects. Core inflation remained benign due to GST rationalisation,
softer commodity prices, and muted input cost pressures.

From external sector perspective, the merchandise trade deficit widened to US$333
billion from US$283 billion a year earlier. Nevertheless, strong services exports and
remittance inflows kept the current account deficit contained at around 1.0% of GDP. More
importantly, lagging capital flows amid global uncertainty and geopolitical tensions, led
to second consecutive Balance of Payments (BoP) deficit in FY2025-26. Despite this,
foreign exchange reserves remained robust at US$691 billion, providing import cover of
approximately 11 months and reinforcing external sector resilience.

Several measures announced in the Union Budget 2026-27 were growth supportive. The
Budget has proposed a six-point plan which focuses on scaling up domestic manufacturing in
several strategic and frontier sectors, rejuvenating legacy industrial sectors, creating
champion MSMEs, boosting infrastructure, ensuring long-term energy security and stability,
and developing city economic regions. This, coupled with further progress on trade deals
with major economies, bodes well for India's overall growth outlook. Global headwinds
stemming from rising geopolitical tensions, elevated commodity prices and supply-chain
disruptions, however, pose downside risks to the growth outlook.

3. Monetary Policy developments

The significant moderation in inflation provided space for monetary easing during
2025-26. The Monetary Policy Committee (MPC) reduced the policy repo rate by a cumulative
100 basis points during the year and 125 basis points in the overall rate cut cycle
starting February 2025. The MPC shifted to neutral stance in June 2025 to preserve
flexibility amid evolving global conditions. The policy approach reflected a calibrated
balance between supporting growth and maintaining vigilance against emerging inflationary
risks.

Simultaneously, liquidity conditions remained comfortably surplus. The RBI actively
supported liquidity injection of more than Rs 10 lakh crore through multiple channels,
including open market purchases, foreign exchange swaps, longer-term repo operations, and
a cumulative 100-basis-point reduction in the Cash Reserve Ratio (CRR). As a result,
average surplus liquidity increased substantially, with average daily absorption under the
Liquidity Adjustment Facility rising to '1.86 lakh crore compared to flat in the previous
year.

4. Transmission of Rate Moves into Lending and Deposit Rates

Monetary transmission strengthened considerably during the current easing cycle. The
increasing dominance of External Benchmark Linked Rate (EBLR)- based loans improved the
speed and effectiveness of policy transmission compared with earlier cycles. As repo rates
declined, lending rates adjusted downward more quickly, while the share of MCLR-linked
loans continued to fall.

The policy transmission has become more efficient due to structural changes in the
banking system, allowing monetary policy actions to influence borrowing costs more
directly and support credit expansion. This improvement in transmission is an important
development in enhancing the effectiveness of monetary policy. Deposit rates also
responded to the easing cycle, supported by abundant banking system liquidity even as
persistent wedge between credit and deposit growth led to the downward rigidity in deposit
rates.

5. Market Trends

Financial markets experienced periods of volatility during 2025-26 amid tariff-related
uncertainties, geopolitical tensions, and fluctuating capital flows. Government securities
and corporate bond yields generally hardened during the year due to concerns regarding
global inflation, fiscal sustainability, and geopolitical risks. However, RBI's liquidity
injections, repo rate cuts and continued fiscal consolidation helped prevent excessive
increases in yields.

Equity markets witnessed a two-phase movement. Strong gains in the first half of
FY2025-26, supported by domestic growth and technology-related optimism, were followed by
corrections in the second half as investors reassessed AI-related valuations and responded
to escalating tensions in the Middle East. The Indian rupee traded with a depreciating
bias, reflecting foreign portfolio outflows and global uncertainty, although India's
external position remained comfortable.

6. Banking Sector Developments

The banking sector continued to demonstrate strong performance and resilience. Bank
credit to the commercial sector expanded around 16% in 2025-26, a significant acceleration
from 10.9% in the previous year. Credit growth was broad-based across sectors, reflecting
healthy economic activity and strong demand for financing. Non-bank sources of credit also
remained important, growing by 13.3%.

Industrial credit growth remained above its long-term average, thereby supporting
overall credit expansion. Although personal loans growth remained below its long-term
average, it has accelerated recently. Personal loans and services sector continued to
drive the overall credit growth. Within the industrial sector, credit to MSMEs segment
remained buoyant, recording a marked acceleration and contributing significantly to
overall credit growth in 2025-26.

The flow of credit to MSMEs was supported by regulatory measures such as the enhanced
limit under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
scheme, introduction of customized credit card scheme for micro enterprises, expansion of
digital and fintech lending through the co-lending framework with banks, and the updated
definition of MSMEs, among others.

Deposit growth remained healthy at 13.5% but lagged the pace of credit expansion,
resulting in a further increase in the credit-deposit ratio. While this trend underscores
robust credit demand, it also highlights the increasing importance of deposit mobilisation
for the banking system.

The sector's financial health continued to strengthen. Gross non-performing assets
declined to a multi- decadal low, profitability remained robust, and capital adequacy
ratios stayed comfortably above regulatory requirements. RBI stress tests confirmed that
banks possess sufficient capital buffers to withstand severe adverse scenarios. Similar
improvements were observed among non-banking financial companies and urban cooperative
banks, reflecting broad-based strengthening of India's financial system.

7. Impact of the West Asia Conflict on the Economy and Banking Sector

The West Asia conflict has already led to a reassessment of global growth and inflation
projections, with rising energy prices emerging as the principal transmission channel for
economies worldwide. Disruptions to shipping routes and logistics networks may increase
freight costs and affect trade competitiveness. Financial markets could also face
heightened volatility, leading to fluctuations in capital flows, exchange rates, and bond
yields. Consequently, risks to both growth and inflation have become more pronounced.

For the Indian economy, higher crude oil prices and supply disruptions could increase
imported inflation, raise transportation and production costs, apart from widening
external imbalances via deterioration in merchandise trade deficits and lagging capital
flows. These developments have adversely affected macro-outlook for 2026-27 with the
Monetary Policy Committee in April 2026 indicating upside risks to its inflation forecast
of 4.6% and downside risks to growth projection of 6.9%.

For the banking sector, the impact is expected to be largely indirect. Higher input
costs and weaker global demand could affect corporate profitability, especially in
energy-intensive and export-oriented industries. Persistent volatility in bond markets may
also exert mark-to-market pressures on investment portfolios. However, banking system is
well positioned to absorb such shocks. Strong capital buffers, historically low NPAs,
healthy profitability, and robust regulatory oversight provide substantial resilience
against potential spillovers from geopolitical events.

Conclusion: While the West Asia conflict has increased external risks and introduced
fresh uncertainty into the global economic landscape, India's strong domestic demand,
prudent macroeconomic management, and resilient banking sector provide significant
safeguards against adverse outcomes.

8. Digitization

The Bank continued its Digital Transformation Journey by leveraging contemporary
digital technologies to deliver seamless, secure and inclusive banking services. The rapid
evolution of digital financial services and regulatory reforms has reshaped the banking
landscape, necessitating scalable, customer-centric and compliant digital solutions.

The Bank's digital initiatives focused on expanding straight-through-processing (STP),
enhancing customer experience, and strengthening digital platforms across Retail, MSME,
Agriculture and Payments segments.

During FY 2025-26, the Bank implemented and expanded multiple digital journeys across
asset, liability and service segments. These initiatives substantially reduced turnaround
time and improved customer convenience. Key initiatives during the FY 2025-26 are:


  

    
#
    
Key Initiatives
    
Description
  
  

    
1.
    
Union ease App
    
Revamped Mobile Banking Application for Retail Banking customers.
  
  

    
2.
    
Union eBiz App
    
Business Banking App exclusively for business customers (individual and
    sole- proprietor)
  
  

    
3.
    
Digital Personal Loan
    
Fully digital collateral free loan to meet personal needs for customers
  
  

    
4.
    
Digital Vehicle Loan
    
Digital Loan for purchase of New Four-Wheeler Loan for personal use
  
  

    
5.
    
National Pension System
    
One Step Digital NPS Journey via Branch Assist Portal
  
  

    
6.
    
Savings Accounts Journey
    
Savings Account opening for Existing to Bank customers
  
  

    
7.
    
Debt Swap Scheme
    
STP flow of Debt Swap Scheme for Farmers
  
  

    
8.
    
Online Re-KYC
    
Re-KYC service for customers without visiting the branch
  
  

    
9.
    
Digital Title Search & Digital Valuation
    
Digital interface for Title Search and Valuation Report by service
    providers.
  


The Bank has achieved comparable capability in mobile banking, digital lending and
payment innovation, supported by its nationwide branch network and inclusive design
philosophy.

8.1 Union Ease App

The Bank's mobile and web-based platforms form the foundation of customer engagement
strategy. The Bank launched its revamped mobile banking application 'Union ease' with 350+
features covering payments, deposits, loans, investments, insurance, Account Aggregator
and service requests etc. Union ease offers enhanced UI/UX, dynamic interface,
accessibility-compliant features, integrated UPI capabilities and biometric
authentication. Union Ease provides customers with a unified digital interface and enables
one-point access to lending and non-lending services

Union Ease serves as a unified digital channel, supporting the Bank's objective of
delivering a seamless end-to-end digital banking experience.

The Bank implemented extensive enhancements across payment channels, including
increased UPI Lite limits, enabling UPI Global transactions across multiple geographies,
pre-sanctioned credit lines on

UPI, OS Native Biometric based Authentication, UPI mandate Service (UPI Autopay or
e-mandate) with single block multiple debit services etc.

8.2 Union eBiz App: Bank has launched new Business App - Union eBiz for MSME Customers
on the 107th Foundation Day of the Bank for individual and sole proprietor business
customers with a comprehensive set of journeys covering payments, collections, user access
exclusively for business accounts.

The app is equipped with a wide array of robust features designed to simplify business
operations. It offers Access Rights Management, enabling customers to add users with
restricted permissions, along with fund transfer capabilities, including individual and
bulk payments through group or file upload. Customers can seamlessly manage collections by
generating and sharing Merchant QR codes and payment links, applying for POS machines and
monitor transactions through a live collection dashboard.

8.3 Digital Personal Loan:

Collateral free unsecured loan that can be used for variety of purpose to meet personal
needs. End to End servicing of personal Loan digitally for both Existing-to-Bank (ETB) and
New-to-Bank (NTB) customers without manual intervention.

8.4 Digital Vehicle Loan:

A Digital and paperless approval of Vehicle Loans for the purchase of new four-wheelers
for personal use, covering both Existing-to-Bank (ETB) and New-to-Bank (NTB) customers,
resulting in significantly reduced turnaround time.

8.5 National Pension Scheme

The Digital NPS journey generates and activates PRAN instantly. The Journey consists of
built in KYC compliance, duplicate PRAN checks, photo and signature upload and facility
for initial contribution offers a secure, seamless experience to customers in just a few
steps.

8.6 Savings Accounts Journey

A seamless Digital journey for Savings Account opening for Existing to Bank customers,
for 23 schemes of Savings Bank Account.

8.7 Debt Swap STP

Debt Swap Scheme (Agri Term loan upto Rs. 0.50 lakh) is digitized fully wherein Agri
sector customers can avail the loan online.

8.8 Online Re-KYC

Customers can now complete their Re-KYC online without visiting the branch.

8.9 Digital Title Search and Digital Valuation

The Bank has introduced Digital Title Search Report (TSR) and Digital Valuation as
added capabilities to streamline collateral securities assessment process. The platform
enables end-to-end process of valuation report and legal report digitally through Panel
Service Provider

8.10 Other Initiatives

• Digital Rupee by Union Bank of India (e?) App

During the FY26, the Bank introduced key CBDC features including PIN-less retail
transactions for small-value payments, programmable CBDC (p-CBDC) for specific purpose
payments, and merchant onboarding through the Digital Rupee Merchant App. The Bank
successfully implemented and operationalized multiple p-CBDC projects in collaboration
with State Governments. These initiatives are aimed at enabling targeted and conditional
disbursement of funds to beneficiaries through Digital Rupee wallets.

The Bank also implemented wholesale CBDC (w-CBDC) initiatives, including tokenization
of Certificates of Deposit, supporting efficient and secure interbank settlements.

The Bank in collaboration with various State Governments has implemented p-CBDC
initiatives aimed at enabling targeted and conditional disbursement of funds to
beneficiaries through Digital Rupee wallets. The initiatives undertaken during the FY
2025-26:


  

    
S No.
    
State
    
Initiatives
  
  

    
1
    
Odisha
    
Disbursement of Subsidy under Subhadra Yojana to women beneficiaries.
  
  

    
2
    
Uttarakhand
    
Implemented p-CBDC use case for disbursement of horticulture subsidies
    under Mission Kiwi.
  
  

    

    

    
Implemented p-CBDC use cases for Information & Public Relations
    (I&PR) in coordination with Society for Elimination of Rural Poverty (SERP), with a
    special initiative for women journalists during
  
  

    
3
    
Telangana
    
International Women's Day and a subsidy program for SERP women employees,
    where Digital Rupee was credited to beneficiary wallets and programmed for use at selected
    handloom outlets
  


• Digital Document Execution

Digital Document Execution (DDE) through the Lending Automation System (LAS) was
progressively expanded during the year for

Retail, MSME and Agriculture loans for individual customers across a wide geographical
footprint viz. 17 States/UTs for MSME Journeys, 18 States/ UTs for Retail Journeys, 19
States/UTs for Agri Journeys

9 Business Highlights:

9.1 The global business of your Bank stood at Rs. 23,85,502 crore as on March 31,2026

9.2 Total Deposits stood at '13,06,891 crore as on March 31,2026. Out of this, CASA
share (current account and saving account) stood at 35.20 % as on March 31,2026.

9.3 Gross Advances stood at Rs. 10,78,611 crore as on March 31, 2026. RAM segment of
your Bank stood at Rs. 5,98,484 Crore. 16.75% growth in Retail, 2.75% growth in
Agriculture, and 18.75% growth in MSME advances are achieved on a YoY basis. RAM advances
as a percent of Domestic RAM Advances stood at 57.49%.

9.4 Overseas business of your Bank stood at Rs. 38,260 Crores as March 31, 2026,
compared to Rs. 37,415 Crore as on March 31, 2025. Your Bank has two overseas branches in
DIFC (Dubai) and Sydney (Australia) and operates in London, United Kingdom, through its
wholly owned subsidiary, Union Bank of India (UK) Ltd. The Gross Advance portfolio of the
foreign branches stood at Rs. 37,657 crore as on 31st March 2026, compared to '36,919
crore as on 31st March 2025 and Net Profit of the foreign branches stood at Rs. 240 crore
for FY 2025-26, compared to Rs. 190 crore for FY 2024-25.

10 Income and Expenditure:

Table 1: Income and Expenditure Statement

(Amt. Rs. in crore)


  

    
Sl.
    
Parameter
    
FY 2025-26
    
FY 2024-25
  
  

    
1
    
Interest Earned
    
1,05,992
    
1,05,909
  
  

    
2
    
Other Income
    
19,435
    
19,813
  
  

    
3
    
Total Income (1+2)
    
1,25,427
    
1,25,722
  
  

    
4
    
Interest Expended
    
69,333
    
68,695
  
  

    
5
    
Net Interest Income (1-4)
    
36,659
    
37,214
  
  

    
6
    
Operating Expenses
    
27,474
    
25,937
  
  

    

    
Establishment Expenses
    
15,290
    
14,668
  
  

    
7
    
Total Expenditure
    
96,808
    
94,632
  
  

    
8
    
Operating Profit (3-7)
    
28,620
    
31,090
  
  

    
9
    
Provisions
    
9,922
    
13,103
  
  

    
10
    
Net Profit/Loss
    
18,697
    
17,987
  
  

    
11
    
Earnings per share (in '
    
24.49
    
23.56
  


11 Profitability and Efficiency:

11.1Your Bank reported an Operating Profit of Rs. 28,620 crore in FY 2025-26 as
compared to Rs. 31,090 crore in FY2024-25 with a growth of -7.95%.

11.2Net profit of your Bank stood at Rs. 18,697 crore in financial year 2025-26 as
compared to Rs. 17,987 crore for financial year 2024-25 with a growth of 3.95%.

11.3Cost-to-income ratio of your Bank stood at 48.98% in FY 2025-26.

11.4During FY 2025-26, Return on Average Assets stood at 1.25%, whereas Return on
Equity stood at 15.86%.


  

    
Table 2: Efficiency Ratios
    

    

  
  

    
Parameter (%)
    
FY 2025-26
    
FY 2024-25
  
  

    
Return on Average Assets
    
1.25
    
1.26
  
  

    
Return on Equity
    
15.86
    
17.20
  


11.5 The following are the key productivity ratios of your Bank for FY 2025-26.

Table 3: Productivity


  

    
Parameter
    
FY2025-26
    
FY2024-25
  
  

    
Business per Employee (Amt Rs. in crore)
    
32.28
    
30.50
  
  

    
Business per Branch (Amt. Rs. in crore)
    
274.29
    
261.59
  
  

    
Gross Profit per Employee (Amt. Rs. in lakh)
    
38.73
    
42.04
  


11.6During the Q4 FY2025-26, the Bank proactively strengthened standard assets
provisioning coverage and has made additional provision of Rs. 700 Crore as contingency
provision.

11.7 Dividend:

The Board of your Bank has recommended a dividend of Rs. 5/- per equity share of face
value Rs. 10/- each for FY 2025-26 as compared to Rs. 4.75 for FY 2024-25.

12 Shareholders' Return:

12.1 Your Bank's net worth was Rs. 1,17,871.07 crore as on March 31,2026.

13 Asset Quality:

13.1Gross Non-Performing Assets (GNPA) of your Bank stood at Rs. 30,401 crore as on
March 31, 2026 as compared to Rs. 35,350 crore as on 31st March 2025. GNPA as a percent of
gross advances stood at 2.82 % as on March 31,2026 as compared to 3.60 % as on 31st March
2025.

13.2Net NPA of your Bank stood at Rs. 5,067 crore as on 7March 31, 2026 as compared to
Rs. 5,969 crore as on 31st March 2025 and the Net NPA ratio stood at 0.48% as on March
31,2026 as compare to 0.63 % as on 31st March 2025.

14 Capital Adequacy:

14.1 The Capital Adequacy Ratio, as per BASEL III norms, stood at 18.10% as on March
31, 2026. Common Equity Tier I (CET I) capital of your Bank stood at 15.69% in March 31,
2026.

(Amt. Rs. in crore)


Table 4: Capital Adequacy Ratios - Basel III



  

    
Parameters
    
RBI Benchmark March 31, 2026
    
March 31,2026
    
March 31,2025
  
  

    
Total Risk- Weighted Assets
    

    
7,61,160
    
7,03,920
  
  

    
Total Capital Funds
    
NA
    
1,37,758
    
1,26,825
  
  

    
CET 1 Capital
    

    
1,19,435
    
1,05,465
  
  

    
Tier 1 Capital
    

    
1,26,557
    
1,14,336
  
  

    
CRAR(%)
    
11.50
    
18.10
    
18.02
  
  

    
CET 1 (%)
    
8.00
    
15.69
    
14.98
  
  

    
Tier 1 (%)
    
9.50
    
16.63
    
16.24
  
  

    
Tier 2 (%)
    
2.00
    
1.47
    
1.77
  


14.2 Capital Raised by your Bank

14.2.1 During the year 2025-26, the Bank has not raised any equity capital due to good
internal accruals and comfortable capital position.

14.2.2 Bank has issued and allotted Senior, rated, listed, unsecured, redeemable,
taxable, transferable long term fully paid-up non-convertible bonds in the nature of
Debentures (Series I) eligible for financing of infrastructure & affordable housing of
the Bank, of face value '1.00 Lakh each for cash at par aggregating Rs. 3,000 Crore on
private placement basis.

15 Network

The branch network of your Bank is widely spread across the country with 8,695 branches
and 2 overseas branches (Sydney, Dubai DIFC) as on March 31, 2026. Out of these 59 percent
of the branches are in rural and semi-urban centres.

16 Awards & Accolades:

During FY 2025-26, your Bank received awards for various initiatives taken under the
areas of Digitization, Financial Inclusion, HR management, Customer Service, MSME etc.

• Received the 1st Position Award in the category of "Best MSME Bank"
and Runners up in the category "Best MSME Friendly Bank" on 22.12.2025 in the
event MSME Banking Excellence Awards FY 24-25 conducted by Chamber of India Micro Small
& Medium Enterprises (CIMSME).

• Received 1st prize in advance SOC category in National Critical Information
Infrastructure Security Exercise (NCIIPC CII SECEX

• Runner up in 4th IBA CISO summit & Citations 2025 awards held in the month
of June 2025

• Winner of Operational Cyber Readiness platform and Cyber Range at UBSF CISO
conclave & awards

• DSCI Excellence Awards 2025: Winner of "Best Security Practices in the
Banking Sector" at the DSCI Excellence Awards held in the month of Dec 2025

• Award for Best Technology bank of the year by IBA during 21st Annual Banking
Technology Award 2025 in the event held on 09.01.2026.

• Received Straight Through Processing Excellence Award from CITI Bank for
processing of cross border remittances

17 Branding and Marketing

In an ever-changing business landscape, branding has emerged as a key driver of
identity and value creation. It is now a dynamic process shaped by customer experiences,
digital interactions, and shared values. Effective branding is essential for building
credibility, setting products and services apart, and accelerating growth in a competitive
environment. Throughout the year, your Bank has demonstrated strong commitment to branding
and marketing efforts, leveraging a wide mix of channels including print, television,
radio, digital platforms, out-of-home advertising, and social media.

17.1 Traditional Media

Traditional media like print, television, radio, out of home advertising has played a
central role in shaping public opinion, spreading information and building brand
awareness. It is known for its wide reach, credibility and structured presentation of
content, making it especially effective for reaching large and diverse audiences. During
the years this medium was effectively utilized by spreading awareness of Bank's products
and Services including Branding.

Advertisements of the Bank were released in national and regional dailies, magazines,
radio stations, TV Channels, Out of Home Media connecting with audiences through Branding,
new initiatives and disseminating the information on Products and Services.

17.2 Social Media

Your Bank disseminates information related to products and services through its social
media platforms by publishing dynamic, engaging content in the form of static creatives
and videos, aimed at enhancing customer awareness.

Your Bank Social Media Followers data as on 31.03.2026 is as follows:

Social Media Followers Data


  

    
Social Media Handle
    
No. of Followers as on 31st March 2026
  
  

    
X
    
6,50,106
  
  

    
Facebook
    
40,29,339
  
  

    
Instagram
    
2,23,064
  
  

    
YouTube
    
3,59,000
  
  

    
LinkedIn
    
3,06,247
  
  

    
Threads
    
51,434
  
  

    
Grand Total
    
56,19,190
  


In addition, awareness is generated through posts on social engineering, social causes,
commemorative days, notable personalities, and public interest themes.

Your Bank has undertaken sustained efforts to promote cybersecurity awareness through
the campaign "Cyber Security With U" and to encourage safe digital payment
practices through "Pay Digital Stay Smart" across its social media platforms.
Regular campaigns, informative posts, and digital safety advisories are disseminated to
educate customers on secure transaction methods, fraud prevention, and responsible digital
banking behaviour.

As part of these initiatives, the Bank actively shares guidance on identifying phishing
attempts, safeguarding personal and financial information, and avoiding fake applications
or fraudulent links. Your Bank has also released cybercrime awareness videos under the
"Jamkar Phenko campaign", which encourages stakeholders to remain calm during
suspicious calls or messages, refrain from sharing sensitive information, and promptly
report fraud attempts through authorised cybercrime reporting channels.

Customers are consistently educated on the importance of not sharing sensitive
credentials such as OTPs, UPI PINs, passwords, and card details.

These initiatives reflect the Bank's commitment to fostering a secure and well-informed
digital banking environment, aligned with regulatory guidelines and evolving customer
needs.

Your Bank maintains a 24x7 presence across all social media handles and ensures prompt
responsiveness to customer queries. During the year, social media interactions were
addressed efficiently through timely guidance, structured redirections, and robust
grievance resolution mechanisms, contributing to enhanced customer service and
satisfaction. Your Bank's brand presence has been well received, as reflected in 1415.77
lakh impressions and 118.98 lakh engagements during the period. Your Bank has built a
strong social media presence, with the follower base increasing to 56.20 lakhs as on 31st
March 2026.

Your Bank continues to monitor overall sentiment, gather feedback on initiatives, and
assess customer interests to align product offerings and services with customer
expectations.

17.3 Website

Your Bank has strengthened its digital presence by migrating its website domain from
co.in to bank.in, in compliance with RBI guidelines aimed at enhancing customer trust in
digital banking. Key enhancements include the introduction of a dedicated
"Unauthorized Transaction" facility for prompt reporting of fraudulent
activities, along with a strengthened grievance redressal mechanism to improve customer
support.

Website content is regularly reviewed and updated to ensure relevance, accuracy, and
clarity.

Further, timely updates regarding both planned and unplanned service disruptions are
published on the website to ensure transparency and seamless customer communication.

18 Changes in the Directors on the Board of your Bank:

The following changes took place in the Board of Directors of your Bank during the
financial year 2025-26.

• Shri Suraj Srivastava has been renominated as Part Time Non-Official Director on
the Board of your Bank w.e.f. 11.04.2025 and completed his tenure on 10.04.2026.

• Ms. A. Manimekhalai, MD & CEO of your Bank, ceased to be MD&CEO on
completion of her tenure w.e.f.03.06.2025.

• Shri Pankaj Dwivedi, Executive Director of your Bank, ceased to be Director as
Central Government cancelled his appointment w.e.f. 24.06.2025.

• Shri Rohan Chand Thakur has been appointed as Government Nominee director on the
Board of your Bank w.e.f. 24.07.2025 vice Shri Sameer Shukla.

• Shri Asheesh Pandey has been appointed as MD & CEO of your Bank w.e.f.
30.09.2025.

• Shri Srinivasan Varadarajan, Non-Executive Chairman and Part Time Non-Official
Director of your Bank, ceased to be Director w.e.f. 07.11.2025.

• Shri Amresh Prasad has been appointed as the Executive Director on the Board of
your Bank w.e.f. 24.11.2025.

• Dr. Debasish Prusty has been nominated as Government Nominee Director on the
Board of your Bank w.e.f. 13.05.2026 vice Shri Rohan Chand Thankur.

19 Directors' Responsibility Statement

The Directors confirm that in the preparation of the annual accounts for the year ended
31st March 2026:

• The applicable Accounting Standards had been followed along with proper
explanation relating to material departures, if any.

• 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.

• Internal financial controls had been laid down to be followed by your Bank, and
such Internal Financial Controls were adequate and were operating effectively.
Explanation.? For the purposes of this clause, the term "Internal Financial
Controls" means the policies and procedures adopted by your Bank to ensure the
orderly and efficient conduct of its business, including adherence to your Bank's
policies, the safeguarding of its assets, the prevention and detection of frauds and
errors, the accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information.

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

20 Market capitalization of the Bank as published by Stock Exchanges*


  

    
Particulars
    
Market Capitalisation as on 31.12.2025 (Amt. in Rs. Crore)
    
Rank among listed entities as on 31.12.2025
  
  

    
National Stock Exchange of India Ltd.
    
1,08,951.30
    
95 (among top 100)
  
  

    
BSE Ltd.
    
1,08,930.04
    
95 (among top 100)
  


* Vide Regulation 3(2) of the SEBI (LODR) Regulations, 2015.

Union Bank of India has been included in T+0 rolling settlement cycle by stock
exchanges in equity cash markets.

Further, the top management of the Bank have held more interactions with the
stakeholders of the Bank to enhance Bank's market perception.

21 Corporate Governance

The Board of your Bank is committed to adopting good Corporate Governance practices in
letter and spirit. A detailed report on Corporate Governance is given in a separate
section of the Integrated Annual Report. The Corporate Governance report for the financial
year 2025-26 has no audit qualifications.

22 Corporate Social Responsibility (CSR):

22.1 Empowering Inclusive Growth:

Corporate Social Responsibility (CSR) is an integral part of a company's commitment to
managing the social, environmental, and economic impacts of its operations in a
responsible manner, aligned with public expectations. It encompasses the company's efforts
to give back to the community, participate in philanthropic causes, and provide positive
social value. Today, companies increasingly recognize the importance of CSR to make a
difference and build a positive brand image. CSR can be categorized into different types,
including environmental responsibility, ethical responsibility, philanthropic
responsibility, and economic responsibility.

Union Bank focuses on inclusive growth, rural development, and supporting government
initiatives. Your Bank drives projects that uplift marginalized communities and improve
access to healthcare, education, and livelihood opportunities. Our rural development
initiatives aim to empower rural areas and promote sustainable agriculture and skill
development. The Bank actively collaborates with the government to support social progress
and economic growth. Union banks remain dedicated to making a lasting social impact and
fostering a more inclusive and prosperous society.

Union Bank allocates up to 1% of the previous year's published net profits towards
voluntary CSR/ charitable activities, though it is not mandatory being a Public Sector
Bank.

To facilitate and manage its CSR/charitable activities, your Bank established the Union
Bank Social Foundation (UBSFT) on 2nd March, 2006.

The primary object of UBSFT is to uplift underprivileged communities and significantly
improve the living standards of the poor and marginalized.

During FY 2025-26, total donation of Rs. 61.69 crore for 147 projects was approved by
Union Bank Social Foundation & an amount of Rs. 35.88 crore was disbursed.

These initiatives span various areas of social responsibility and aim to make a
meaningful impact on the communities we serve.


  

    
' 61.69 crores
    
147
  
  

    
Donations approved by Union Bank Social Foundation (UBSFT) during FY
    2025-26.
    
The number of projects/ programmes approved
  


22.2Union Bank Social Foundation Trust (UBSFT)

To uplift underprivileged communities and significantly improve the living standards of
the poor and marginalized, as an extended arm for carrying out CSR/charitable activities,
the Bank set up Union Bank Social Foundation (UBSFT) as a Trust on 2nd March, 2006. UBSFT
is registered under section 12AA and have obtained certificate under section 80G of the
Income Tax Act, 1961.

The vision of UBSFT is to foster public-private initiatives and act as a catalyst for
socioeconomic development. UBSFT aim to collaborate with other agencies to fulfil its
obligations as a corporate citizen. The focus areas of UBSFT include improving healthcare,
providing infrastructure and tools for education, and promoting continuous and sustainable
skill development.

The mission of UBSFT is to launch, implement, participate in, fund, or otherwise assist
programs and projects that contribute to the socio-economic development of individuals and
communities.

The UBSFT Board is led by Bank's MD & CEO, with Executive Directors serving as Vice
Chairman Trustees. Other trustees include Union Bank's 9 General Managers and an
independent trustee. The UBSFT Board provides strategic direction aligned with Union
Bank's CSR priorities and conducts regular reviews of activities. The Chief Executive of
UBSFT oversees the execution of the Board's directives.

Union Bank has also established a Stakeholders Relationship Committee (SRC) at the apex
level, comprising members of the Board of Directors, which inter alia monitor's the CSR
activities of your Bank so also of UBSFT on a quarterly basis.

Some of the key activities carried out by Union Bank/ UBSFT in the field of social
responsibility during FY 2025-26 include:

• Education and Skill Development: Supporting programs to enhance access to
quality education, promote skill development, and empower individuals for a better future.

• Healthcare and Sanitation: Partnering with organizations to provide healthcare
facilities, medical camps, sanitation infrastructure, and initiatives to promote general
well-being.

• Livelihood Enhancement: Undertaking initiatives to promote livelihood
opportunities, entrepreneurship, and economic empowerment of individuals and communities.

• Environmental Conservation: Engaging in activities that contribute to
environmental sustainability, such as tree plantation drives, waste management programs,
and promoting renewable energy.

• Rural Development: Implementing projects focused on rural infrastructure
development, access to clean water, agriculture and farming techniques, and rural
livelihood improvement.

• Natural calamities, disasters: Distribution of relief materials to flood
affected victims & relief activities under disaster management.

22.3Welfare measures for Girl Child Development

• Scholarships - bridging the financial gap and act as a vital safety net,
ensuring that academic merit is not stifled by poverty. A donation of Rs. 2,000/- per year
to one girl child studying in 5th Standard in a Govt./Govt. aided school under the service
area of each of the rural branches of Union Bank of India including the rural branches to
be opened in future, towards education till 12th standard. The project has benefitted
about 1718 girl children all across India the amount of scholarship disbursed stood at Rs.
34.36 lakh.

• Sanitation: Infrastructure for Dignity

-Construction of one toilet in a Govt./Govt.

aided girls' school in each of the Regions of Union Bank of India as part of Gandhi
Jayanthi Celebrations. An amount of Rs. 171.28 lakh has already been spent towards
construction of toilets in Govt/Govt. aided girls' schools across the different regions in
India.

• Hygiene Management: Breaking the Taboo - Provided Sanitary Pad Vending Machine
& a Sanitary Pad Disposal (Incinerator) at Govt/ Govt. aided girls' school/college
under the jurisdiction of each of the Regional Offices of Union Bank of India as part of
Gandhi Jayanthi Celebrations. An amount of Rs. 17.28 lakh has been spent towards this
project.

23 EASE (Enhanced Access and Service Excellence)

The EASE Reforms Agenda, launched in FY 2018-19, aims to improve efficiency,
transparency, digital capability, and customer focus in Public Sector Banks. Under EASE
7.0 (FY 2024-25) themed "Economic Development, Customer Delight, and Resilient
Banking," the Bank secured 3rd position overall, ranking 1st in Theme 1 and 2nd in
Themes 3 and 4.

EASE 8.0 (FY 2025-26), themed "EASErise - Risk & Resilience, Innovation, Socio
Economic Impact, and Excellence," focuses on strengthening resilience, digital
transformation, financial inclusion, customer experience, and support for emerging
segments like startups and gig workers.

Under EASE 8.0 (FY 2025-26), the Bank made significant progress in digital banking,
financial inclusion, governance, and asset quality by strengthening AI- driven
collections, risk and IT resilience frameworks, multilingual and accessible banking
services, ESG initiatives, and customer experience management. The Bank also introduced
innovative products for salaried customers and gig workers, enhanced analytics and
profitability monitoring capabilities, and implemented initiatives supporting financial
literacy, inclusion, and employee well-being.

Under EASE 8.0 FY 2025-26, the Bank secured 2nd position in the Q1 and Q2 bank-wise
rankings, achieving top-three positions across multiple themes and securing the top
position in Q3 under Theme 3, "Socio-economic Impact.

As the Bank transitions to EASE 9.0, the progress achieved has strengthened its
resilience, agility, and competitiveness, positioning it to effectively meet evolving
economic and banking requirements while reinforcing its long-term strategic role in
India's financial ecosystem.

EASERise (Pillar - II): Bank-specific 3-year Roadmap program:

As part of EASERise (Pillar-II) for bank specific strategic initiatives, Bank has
prioritized the following 6 initiatives covering 37 measurable metrics with an objective
of achieving the financial and non-financial aspirations:

• Sustainable growth in MSME

• Sustainable growth in Mid Segment Corporate

• Expanding Agriculture Investment Credit

• Strengthening Compliance & Enhancing Compliance Culture

• Enhancing Retail Deposit Mobilization

• Enhancing Customer Experience

These initiatives have helped the bank to drive balanced growth, strengthen risk and
compliance frameworks, deepen customer relationships, and improve service delivery across
segments.

24 Acknowledgements:

24.1The Directors thank the shareholders, customers, well-wishers, Share Transfer Agent
and correspondents of your Bank in India and abroad for their goodwill, patronage, and
support.

24.2The Directors acknowledge with gratitude the valuable and timely advice, guidance,
and support received from the Government of India, Reserve Bank of India, Securities &
Exchange Board of India, Insurance Regulatory and Development Authority of India, Central
Vigilance Commission, BSE, NSE, financial institutions, correspondent Banks and Statutory
Central Auditors of your Bank, in the functioning of your Bank.

24.3The Directors place on record their deep appreciation for the dedicated service and
valuable contribution made by members of staff in the overall performance of your Bank
during the year and look forward to their continued cooperation in the realisation of the
corporate goals of your Bank in the years ahead.

24.4The Directors also express that the staff members stay safe, healthy and maintain
good health.


  

    
For and on behalf of the Board of Directors
    

  
  

    
Place: Mumbai
    
(Asheesh Pandey)
  
  

    
Date: 17.06.2026
    
Managing Director & CEO