Liquid assets comprise of high-quality assets that can be readily encashed or used as collateral to generate cash in a stress scenario. There are two categories of assets included in the stock of HQLAs, viz. Level 1 and Level 2 (Level 2A and Level 2B) assets. While Level 1 assets attract 0% haircut, Level 2A and Level 2B assets are with 15% and 50% haircuts respectively. The total net cash outflows is the total expected cash outflows less total expected cash inflows for the subsequent 30 calendar days. Total expected cash outflows are calculated by multiplying the outstanding balances of various categories or types of liabilities and Off-Balance Sheet commitments by the rates at which they are expected to run-off or be drawn down. Total expected cash inflows are calculated by multiplying the outstanding balances of various categories of contractual receivables by the rates at which they are expected to flow in up to an aggregate cap of 75% of total expected cash outflows.
Bank's LCR comes to 124.32% based on daily average position of three months (Q4 FY25-26) and remained above the minimum regulatory requirement of 100%. Average HQLA held during the quarter was '14,68,243 Crore, with comprising 96.79% (Level 1 assets), Level 2A and Level 2B assets constitute 2.73% and 0.48% respectively. Government Securities constitutes 92.96% of Total Level 1 Assets. During the quarter Q4 FY26, the weighted average HQLA level decreased by '17,191 Crore primarily on account of decline in excess SLR balance. Further, the weighted average net cash outflows position grown by '1,03,299 Crore on account of increase in deposits level across all the segments. Derivative exposures are considered insignificant due to almost matching position of inflows and outflows. During the quarter Q4 FY26, average LCR position for USD (significant Foreign Currency constituting more than 5% of the Balance Sheet of the Bank) remained at 334.31%.
Liquidity Management in the Bank is driven by the ALM Policy of the Bank and regulatory prescriptions. The Domestic and International Treasuries are apprising the liquidity position to the Asset Liability Management Committee (ALCO) of the Bank. The ALCO has been empowered by the Bank's Board to formulate the Bank's funding strategies to ensure that the funding sources are well diversified and is consistent with the operational requirements of the Bank. All the major decisions of ALCO are being reported to the Bank's Board subsequently. Besides daily/monthly LCR reporting, Bank also prepares daily Structural Liquidity statements to assess the liquidity needs of the Bank on an ongoing basis.
The Bank has been maintaining HQLA mainly in the form of SLR investments over and above the mandatory requirements. Retail deposits constitute major portion of total funding sources, which are well diversified. Management is of the view that the Bank has sufficient liquidity cushion to meet the future commitments.
The LCR computation is automated. Over the period, changes made in RBI circulars have been adopted and implemented by the Bank within the stipulated timelines.
iii) Solo Net Stable Funding Ratio (Solo NSFR):
Net Stable Funding Ratio (NSFR) guidelines ensure reduction in funding risk over a longer time horizon by requiring banks to fund their activities with sufficiently stable sources of funding in order to mitigate the risk of future funding stress. The NSFR is defined as the amount of Available Stable Funding relative to the amount of Required Stable Funding.
Available Stable Funding (ASF)
NSFR = >100%
Required Stable Funding (RSF)
Quantitative Disclosure: The following table contains unweighted and weighted values of NSFR components of SBI (Solo) as on 31st March 2026, 31st December 2025, 30th September 2025 & 30th June 2025 (i.e. quarter-end observations).
Bank's NSFR comes to 120.05% as at the end of Q4 FY 2025-26 and remained above the minimum regulatory requirement of 100% stipulated in the RBI guidelines effective from 01st October 2021. As on 31st March 2026, the position of Available Stable Funding (ASF) stood at '53,72,348 Crore and Required Stable Funding (RSF) stood at '44,75,125 Crore. The values of total ASF & RSF as on 31st March 2026 has increased over 31st December 2025. ASF is defined as the portion of capital and liabilities expected to be reliable over the time horizon considered for the NSFR. RSF of a specific institution is a function of the liquidity characteristics and residual maturities of various assets held by that institution as well as its Off-Balance Sheet (OBS) exposures.
Liquidity Management in the Bank is driven by the Bank's ALM Policy and regulatory guidelines. The Domestic and International Treasuries are reporting to the Asset Liability Management Committee (ALCO). ALCO has been empowered by the Bank's Board to formulate the funding strategies to ensure that the sources of funding are well diversified and is consistent with the operational requirements of the Bank. All major decisions of ALCO are reported to the Bank's Board at periodic intervals.
The Bank has been maintaining HQLA mainly in the form of SLR investments over and above the mandatory requirements. Loans and advances are spread across various maturities to ensure effective management of Assets and Liabilities. Retail deposits constitute major portion of total funding sources, which are well diversified. Management is of the view that the Bank has got sufficient liquidity to meet future contingencies.
Qualitative disclosures:
a) Securities of face value of '1,49,720.70 Crore (Previous Year '1,48,965.70 Crore) are kept as margin with Clearing Corporation of India Limited (CCIL/NSCCL/MCX/NSEIL/BSE) towards Securities Settlement.
b) Pursuant to regulatory approval obtained from the Reserve Bank of India, the Bank has divested its entire 14.96% stake comprising 7,90,80,000 equity shares in Jio Payments Bank Ltd. to its joint venture partner, Jio Financial Services Ltd. (JFSL), on 18th June 2025, at a consideration of '13.22 per share. The profit amounting to '25.46 Crore in this transaction is recognized in the financial results for the period and is appropriated to the Capital Reserve net of Tax and transfer to Statutory Reserve.
c) Pursuant to regulatory approval obtained from the Reserve Bank of India, the Bank divested 13.18% of its equity shareholding in Yes Bank Ltd., comprising 4,13,44,04,897 equity shares, on 17th September 2025 at a consideration of '21.50 per share. The said divestment resulted in a profit of '4,593.22 Crore, which has been recognised in the Profit and Loss Account as "Exceptional Items" and is appropriated to the Capital Reserve net of Tax and transfer to Statutory Reserve. Consequent to the aforesaid transaction the Bank's shareholding in Yes Bank Ltd. stands at 10.78% as on 31st March 2026 and continues to be classified as an Associate.
d) Pursuant to regulatory approval obtained from the Reserve Bank of India and the Insurance Regulatory and Development Authority of India (IRDAI), the Bank acquired an additional 4.925% equity stake in SBI General Insurance Company Ltd. on 19th August 2025. Consequent to this acquisition, the Bank's shareholding in SBI General Insurance Company Ltd. increased to 73.87% as at 31st March 2026.
e) Pursuant to Gazette Notification No. CG-DL-E-07042025-262329 dated 5th April 2025, the following Regional Rural Banks (RRBs), sponsored by the State Bank of India, have been amalgamated and the sponsor bank has been changed in respect of five RRBs with effect from 1st May 2025.
i. RRBs where State Bank of India ceased to be the sponsor bank (stake transferred):
The following five RRBs, earlier sponsored by the State Bank of India, have been amalgamated and their sponsorship has been transferred to other banks. The Bank has offloaded its entire stake of '1,085.94 Crore (face value) in these five RRBs. The transaction has no impact on the Bank's standalone Profit and Loss account.
Security Receipts (not guaranteed by Government of India) beyond 5 and/or 8 years into Non-Performing Investments during FY 2025-26. Standard provision (100%) pertaining to these Security Receipts is transferred to NPI provisions and was not routed through Profit & Loss Account.
The investments matured and overdue forms part of Schedule 11-Other Assets. Outstanding book value is '1,005.97 Crore (Previous Year '541.59 Crore) and provisions on these non-performing investments is '1,005.97 Crore (Previous Year ' 541.59 Crore).
v) Divergence in asset classification and provisioning:
Disclosure on divergence in asset classification and provisioning for NPAs is not required with respect to RBI's supervisory process for the year ended 31st March 2025, based on the conditions mentioned in RBI Circular No. RBI/DOR/2025-26/167 DOR.ACC.REC.No.86/21.04.018/2025-26 on Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures) Directions, 2025 dated 28th November 2025.
vi) Disclosure of Transfer of Loan Exposure:
Sale of Loans (Domestic):
a. The Bank has not transferred any Special Mention Account (SMA) and loans which are not in default.
v) Factoring Exposures:
The total factoring exposure as at 31st March 2026 is '95,715.51 Crore. (Previous Year '59,068.84 Crore) including factoring undertaken on Trade Receivables Discounting System (TReDS) in terms of RBI Circular CO.DPSS.POLC. No.S-258/02-01-010/2023-24 dated 7th June 2023. The outstanding of factoring undertaken on TReDS is '33,597.95 Crore (Previous Year '22,334.29 Crore).
vii) Unhedged Foreign Currency Exposure:
- The Bank has in place Hedging Policy for Foreign Currency Exposure (FCE) of Borrowers. For managing the currency induced credit risk, guidelines are laid down for assessment of Unhedged Foreign Currency Exposures (UFCE) while lending to borrowers engaged in export, borrowers raising External Commercial Borrowings and/or having foreign currency exposure in their books and borrowers of foreign offices. While estimating the UFCE in books of borrowers, only two types of hedges are considered-Financial Hedge and Natural Hedge. The Policy also provides for the cost to be recovered on account of UFCE. The Bank estimate the potential loss as a percentage of Earning Before Interest and Depreciation ('EBID') due to potentially large adverse movement in exchange rate impacting the Unhedged Foreign Currency Exposure of the borrower. Based on this incremental provision and capital is held on total credit exposure in compliance with RBI guidelines.
- The amount of '194.77 Crore (Previous Year '252.95 Crore) was held as on 31st March 2026 towards Currency Induced Credit Risk.
- Capital allocated for Currency Induced Credit Risk amounts to '26.17 Crore (Previous Year '574.69 Crore).
viii) Single Borrower and Group Borrower exposure limits exceeded by the Bank:
The Bank has not exceeded the single borrower exposure & Group Borrower exposure prudential limits as prescribed
by RBI.
iv) Disclosures on Risk Exposure in Derivatives:
(a) Qualitative Disclosures:
i) The Bank, at present, deals in over the counter (OTC) derivatives to hedge against interest rate and currency risks. It also deals in exchange traded Interest Rate Futures, Currency Futures and Currency Options.
Interest rate derivatives dealt with by the Bank are Rupee Interest Rate Swaps (OIS), Foreign Currency Interest Rate Swaps, Forward Rate Agreements (FRA), Bond Forward Rate Agreements (Bond FRAs), Bond Forwards, Caps, Floors and Collars.
Currency derivatives dealt by the Bank are Currency Swaps (CIRS / CCS), USD/INR Options, Swaptions, Barrier Options and Cross-Currency Options. The Bank also does Non-Deliverable Option (NDO) and Non-Deliverable Forward (NDF) trades as permitted by RBI.
The products are offered to Bank's customers for hedging their exposures. These are also used for reducing Bank's Balance Sheet Risk. Trading / Arbitrage activities on Derivatives are done selectively within prescribed risk limits whenever opportunities are sighted.
The Bank runs USD/INR Option Book and manages Greek limits efficiently. The Bank also runs MOD MIFOR book.
ii) Derivative transactions carry market risk i.e., the probable loss the Bank may incur caused by adverse movements in interest rates and / or exchange rates. A derivative position also carries credit risk i.e., the probable loss the Bank may incur if the counterparties fail to meet their obligations. The Bank's "Derivatives Manual" approved by the Board prescribes measures to be taken to contain the risks. For containing Credit risk, the policy stipulates customer / counterparty eligibility criteria [credit rating, tenure of relationship, availability of Credit Exposure Limit (CEL), Customer Appropriateness & Suitability (CAS) testing etc.] which are strictly complied with. Appropriate limits are set for the corporate counterparties by respective Business Units considering their ability to honour obligations. The Bank executes ISDA agreement with each counterparty both corporate as well as interbank for derivatives.
iii) For each of the Interbank counterparties, a counterparty exposure limit is put in place by the Risk vertical. The Bank has executed CSA (Credit Support Annex) — a part of ISDA Master Agreement with a few counterparties. As per the terms of CSA, collateral is posted or transferred with counterparties to mitigate the credit risk arising from derivative positions.
iv) The Asset Liability Management Committee (ALCO) of the Bank oversees efficient management of these risks. The Bank's Market Risk Management Department (MRMD) identifies, measures and monitors market risk associated with derivative transactions. MRMD assists ALCO in controlling and managing these risks and reports compliance with policy prescriptions to the Risk Management Committee of the Board (RMCB) at regular intervals.
v) The accounting policy for derivatives has been drawn up in accordance with the RBI guidelines, the details of which are presented under Schedule 17: Significant Accounting Policies (SAP).
vi) Interest Rate Swaps are mainly used for hedging of the assets and liabilities.
vii) Majority of the swaps were done with First class counterparty banks. Derivative transactions comprise of swaps which are disclosed as contingent liabilities. The swaps are categorised as trading or hedging.
viii) Derivative deals are entered with only those interbank participants for whom counterparty exposure limits are sanctioned. Similarly, derivative deals are entered with only those corporates for whom credit exposure limit is sanctioned. Collateral requirements for derivative transactions are laid down as a part of credit sanctions terms on a case-by-case basis. Such collateral requirements are determined based on usual credit appraisal process. The Bank retains the right to terminate transactions as a risk mitigation measure in certain cases.
ix) Hedge Accounting: On 28th November 2025, the RBI released a Master Direction on the Classification, Valuation, and Operation of the Investment Portfolio of Commercial Banks (RBI/DOR/2025-26/162 DOR.MRG.REC.No.81/00-00-001/2025-26). This directive is applicable to all commercial banks from 28th November 2025. The bank has successfully implemented this master direction effective 28th November 2025. According to this, the bank shall adhere to ICAI's guidance note on accounting for derivative contracts (Revised 2021) for designation of a derivative contract as a hedging instrument, hedge accounting models, hedge effectiveness testing & measurement of ineffectiveness, presentation in the financial statements, disclosure in financial instrument and other related matters as mentioned
in the Master Direction - Classification, Valuation and Operation of Investment Portfolio of Commercial Banks
(Directions), 2025.
a) For derivative contracts designated as hedging instruments, the Bank prepares hedge documentation to document the hedge relationship designated at the inception, including the reference to risk management strategy, risk management objective, details of the hedged underlying item and hedging instrument, the criteria met, and methods applied for hedge effectiveness assessment.
b) Hedge effectiveness is evaluated at the inception of the hedge and periodically thereafter, using both qualitative and/or quantitative methods. The assessment measures the extent to which changes in the fair value or cash flows of the hedged item, attributable to the hedged risk, are offset by changes in the fair value or cash flows of the hedging instrument. The Bank also documents its assessment, both at inception of the hedge and on an ongoing basis, of whether the derivatives that are used in the hedging transactions are effective in offsetting changes in fair values or cash flows of hedged items.
c) The hedging book consists of transactions undertaken to hedge balance sheet assets or liabilities for the risk identified and eligible as per applicable Guidance Note on Accounting for Derivative Contracts (Revised 2021) issued by ICAI. The tenor of the hedging instrument may be equal to or shorter than the tenor of the underlying hedged asset or liability.
x) As part of its risk management strategy, the Bank utilizes derivative instruments, including currency swaps, interest
rate swaps, foreign exchange forward contracts, to hedge risks embedded in its financial assets and liabilities.
xi) The objectives of hedging with derivative financial instruments include:
a) Reduce interest rate exposure that is in excess of the Bank's appetite.
b) Manage efficiently interest rate risk and hedging the changes to movements of the benchmark interest rates represented by the prevailing reference rates.
c) Reduce variability arising from the fair value changes of derivatives embedded in assets and liabilities.
d) Manage future variable cash flows.
e) Reduce foreign currency risk.
xii) The following sections outline the nature and terms of the derivative transactions generally undertaken by Bank.
Hedge accounting treatment varies based on the hedge type:
a) Fair Value Hedge: Fair value hedges hedge the exposure to changes in the fair value of a recognised asset or liability, or an identified portion of such an asset, liability, that is attributable to a particular risk and could affect profit or loss.
For designated and qualifying fair value hedges, the cumulative change in the fair value of a hedging derivative is recognised in the profit and loss account. Meanwhile, the cumulative change in the fair value of the hedged item attributable to the risk hedged is recorded as part of the carrying value of the hedged item in the balance sheet and is also recognised in the profit and loss.
The Bank classifies a fair value hedge relationship when the hedged item (or group of items) is a distinctively identifiable asset or liability hedged by one or a few hedging instruments. The financial instruments hedged for interest rate risk in a fair value hedge relationship is fixed rate debt/deposits and other borrowed funds.
The Bank uses the dollar-offset method at inception and on an ongoing basis, in order to assess the effectiveness of fair value hedges.
In fair value hedge relationships, the bank uses primarily interest rate swaps, in order to protect itself against movements in the fair value of fixed-rate financial instruments due to movements in market interest rates.
b) Cash Flow Hedge: A cash flow hedge is a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability (such as all or some future interest payments on variable rate debt) or a highly probable forecast transaction and could affect profit or loss. For designated and qualifying cash flow hedges, for derivatives other than foreign exchange forward contracts and principal-only swaps, the effective portion of changes in fair value is recorded in Reserves and Surplus under 'Hedging Reserve/ Cash flow hedge reserve, while any ineffective portion is recognized in the Profit and Loss Account. The accumulated balance in the Hedging Reserve/ Cash flow hedge reserve is recycled through the Profit and Loss Account when the hedged item impacts the profit and loss account.
For assessing the effectiveness of cash flow hedges, the Bank uses the dollar offset method.
The Bank recognises all derivative contracts at fair value, on the date on which such derivative contracts are entered into and are re-measured at fair value as at the Balance Sheet date. Marked to market values of such derivatives are classified as assets when the fair value is positive or as liabilities when the fair value is negative.
Bank do not have any Cash Flow Hedge/Net Investment Hedge as on 31/03/2026.
Foreign exchange forward contracts and principal-only swaps that are not intended for trading, are accounted for in accordance with AS 11. Any premium or discount at inception is amortized as income or expense over the contractual life.
If the hedging instrument expires or is sold, terminated or exercised, or where the hedge no longer meets the criteria for hedge accounting, the hedge relationship is discontinued prospectively. If the relationship does not meet hedge effectiveness criteria, the bank discontinues hedge accounting from the date on which the qualifying criteria are no longer met.
In a cash flow hedge relationship, the bank uses interest rate swaps & cross currency swaps in order to protect itself against exposure to variability in interest rates and foreign exchange rates.
c) Non-Hedge Derivatives:
All non-hedge derivative transactions are recorded at fair value and net gain/loss is recognised in profit and loss account.
Excludes swaps amounting to Nil (Previous Year Nil) entered with the Bank's own foreign offices.
IRS/FRA amounting to '26,148.05 Crore (Previous Year '35,818.50 Crore) entered with the Bank's own foreign offices are excluded.
*Excludes forward contracts of '282.80 Crore (Previous Year '3,167.27 Crore) and NDF ' Nil (Previous Year '3,470.20 Crore) done
with the Bank's Foreign offices.
- The outstanding notional amount of derivatives done between Global Markets Unit and International Banking Group as on 31st March 2026 amounted to '26,148.05 Crore (Previous Year '35,818.50 Crore) and the derivatives done between SBI Foreign Offices as on 31st March 2026 amounted to Nil (Previous Year Nil).
- The outstanding notional amount of interest rate derivatives which are not marked-to-market (MTM) where the underlying Assets/Liabilities are not marked to market as on 31st March 2026 amounted to Nil. (Previous Year Nil).
c) Disclosure of "First Resort Complaints received and action taken" in terms of Policy related Action Point in Annual Conference of the RBI Ombudsmens's October 2022:
Under clause 10 of the Reserve Bank Integrated Ombudsman Scheme-2021 (RB-IOS), the complaints not related to deficiency of service rejected by Banking Ombudsman as non-maintainable advising the complainants to approach the concerned Regulated Entity directly are called as First Resort Complaints (FRCs).
During the financial year 2025-26, total of 28,197 (Previous Year 23,604) FRCs were received by RB-IOS.
To ensure reduction in FRCs the Bank has taken initiatives as under:
- The salient features of RB-IOS-2021 have been displayed at all the branches and digitally displayed on ATMs, Bank's website, Internet Banking page & YONO app.
- Bank is giving wide publicity for increasing customer awareness so that customer may approach the RBI Ombudsman, wherever they are not satisfied with the resolutions provided by the Bank.
18.12. DISCLOSURE OF PENALTIES IMPOSED BY THE RESERVE BANK OF INDIA
a) During the year ended 31st March 2026, RBI by an order dated 9th April 2025, imposed a monetary penalty of '1.73 Crore for non-compliance with certain directions issued by RBI on 'Loans and Advances- Statutory and Other Restrictions'; 'Customer Protection - Limiting Liability of Customers in Unauthorised Electronic Banking Transactions' and 'Opening of Current Accounts by Banks - Need for Discipline' This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949.
b) No penalty has been levied on the Bank for contravention under the provisions of Payment and Settlement Systems Act, 2007.
c) No penalty has been levied on the Bank for contravention under the provisions of Government Securities Act, 2006 for bouncing SGL.
d) There is no default in reverse repo transactions.
vi) Implementation of IFRS converged Indian Accounting Standards (Ind AS):
RBI vide its directions on "Financial Statements: Presentation and Disclosures, 2025" and amendment thereto, notified that as the legislative amendments are under consideration of the Government of India, therefore, implementation of Indian Accounting Standards (Ind AS) for banks has been deferred till further notice.
As per RBI directions, Proforma Ind AS financial statements are prepared on a half yearly basis and submitted to RBI after approval of the Steering Committee headed by MD (Risk, Compliance & SARG) formed for monitoring of implementation of Ind AS in the Bank.
RBI directions on "Classification, Valuation and Operation of Investment Portfolio" of commercial banks bring the classification and accounting of investments closer to Ind AS and the Bank has implemented these directions w.e.f. 1st April, 2024.
In respect of classification, provisioning and income recognition for loans & advances and other financial assets, draft directions were issued by RBI on 7th October, 2025 and based on these directions, Bank has re-developed its ECL models and risk estimates. Further, on 27th April, 2026, RBI issued its final directions and accordingly, any changes based on final directions are being suitably incorporated in these models and risk estimates. Under these directions, ECL allowance shall be computed by adopting the forward-looking provisioning approach and in line with the regulatory requirements, Bank is taking the necessary steps to implement these directions w.e.f. 1st April, 2027.
ix) Letter of Comfort (LOC):
- The Bank has issued Letter of Comfort of '0.46 Crore plus applicable interest and charges to MUDRA Ltd. for Nagaland Rural Bank on 27th October 2025 for a period of three years from the date of issue till the issuance of no dues certificate by MUDRA Ltd. towards the repayment of refinance liabilities whichever is later.
- The cumulative position of the LOCs issued by the Bank for subsidiaries as on 31st March 2026 is as follows:
i. Letter of Comfort of '1.17 Crore plus applicable interest and charges to MUDRA Ltd. for Nagaland Rural Bank which includes LOC of '0.71 Crore issued on 22nd November 2023 for a period of three years from the date of issue till the issuance of no dues certificate by MUDRA Ltd. towards the repayment of refinance liabilities whichever is later.
ii. The consolidated amount for the letter of comfort is '2,370.88 Crore (USD 250 million) as at 31st March, 2026. (Previous year '2,136.88 Crore) towards Letter of Comfort given to:
- The Governor, Bank of Indonesia on 12th December 2005 for its subsidiary Bank SBI Indonesia, a foreign Subsidiary.
- The Minister of Finance, Ottawa, Ontario, Canada on 6th August 1981 for SBI Canada Bank, a foreign Subsidiary.
18.15. DISCLOSURE REQUIREMENTS AS PER THE ACCOUNTING STANDARDS
i) Accounting Standard 5: Net Profit or Loss for the period, Prior Period Items and Changes in Accounting Policies:
During the year, there were no material prior period income / expenditure items. There is no change in the Significant Accounting Policies adopted during the year ended 31st March 2026 as compared to those followed in the previous financial year ended 31st March 2025.
ii) Accounting Standard - 15 "Employee Benefits":
The employee benefits listed above are in respect of the employees in India. The employees of the foreign operations are not covered in the above schemes.
The expected contribution to the Pension and Gratuity Fund for the next year is '3,120.06 Crore and '689.95 Crore respectively.
As the plan assets are marked to market on the basis of the yield curve derived from government securities, the expected rate of return has been kept the same as the discount rate.
The estimates of future salary growth, factored in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market. Such estimates are very long term and are not based on limited past experience / immediate future. Empirical evidence also suggests that in very long term, consistent high salary growth rates are not possible. The said estimates and assumptions have been relied upon by the auditors.
b) Gratuity for Fixed Term Employees
With the introduction of Code on Social Security, 2020, pursuant to the Government of India notification dated 21st November 2025, the Bank has, in compliance with the provisions of the Code, recognized a provision of '17.38 Crore during FY 2025-26 (Previous Year: Nil) towards gratuity liability in respect of employees engaged on a fixed-term basis. The said liability has been determined based on an actuarial valuation carried out by an independent actuary appointed by the Bank.
(a) one half percent above the average standard rate (adjusted up or down to the interest one quarter per cent) quoted by the bank for new deposits fixed for twelve months in the preceding year (ending on the preceding 31st day of March); or
(b) three percent per annum, subject to approval of Executive Committee.
The balance in IBI Employees' Provident Fund as on 31st March 2026 is '1.35 Crore.
B. DEFINED CONTRIBUTION PLAN:
The Bank has a Defined Contribution Pension Scheme (DCPS) applicable to all categories of officers and employees joining the Bank on or after 1st August 2010. The Scheme is managed by NPS Trust under the aegis of the Pension Fund Regulatory and Development Authority. National Securities Depository Limited has been appointed as the Central Record Keeping Agency for the NPS. During F.Y. 2025-26, the Bank contributed '2,017.64 Crore (Previous Year '1,797.66 Crore).
C. Long Term Employee Benefits (Unfunded Obligation):
a) Accumulating Compensated Absences (Privilege Leave)
The following table sets out the status of Accumulating Compensated Absences (Privilege Leave) as per the actuarial valuation by the independent Actuary appointed by the Bank: -
b) Other Long-Term Employee Benefits
Amount of '110.51 Crore (Previous Year '86.32 Crore) is provided as per the actuarial valuation by the independent Actuary appointed by the Bank towards Other Long-Term Employee Benefits viz. Leave Travel and Home Travel Concession (Encashment/Availment), Silver Jubilee Award, Resettlement Expenses on Superannuation and Retirement Award and is included under the head "Payments to and Provisions for Employees" in Profit and Loss Account.
iii) Accounting Standard - 17 "Segment Reporting"
1. Segment Identification
I. Primary (Business Segment)
The following are the primary segments of the Bank: -
- Treasury
- Corporate / Wholesale Banking
- Retail Banking
- Other Banking Business.
The present accounting and information system of the Bank does not support capturing and extraction of the data in respect of the above segments separately. However, based on the present internal, organisational and management reporting structure and the nature of their risk and returns, the data on the primary segments have been computed as under:
(a) Treasury
The Treasury Segment includes the entire investment portfolio and trading in foreign exchange contracts and derivative contracts. The revenue of the treasury segment primarily consists of fees and gains or losses from trading operations and interest income on the investment portfolio.
(b) Corporate / Wholesale Banking
The Corporate / Wholesale Banking segment comprises the lending activities of Corporate Accounts Group, Commercial Clients Group and Stressed Assets Resolution Group. These include providing loans and transaction services to corporate and institutional clients and further include non-treasury operations of foreign offices.
(c) Retail Banking
The Retail Banking Segment comprises of retail branches, which primarily includes Personal Banking activities including lending activities to corporate customers having banking relations with these branches. This segment also includes agency business and ATMs.
(d) Other Banking business
Segments not classified under (a) to (c) above are classified under this primary segment.
II. Secondary (Geographical Segment)
• Domestic Operations - Branches/Offices having operations in India.
• Foreign Operations - Branches/Offices having operations outside India and offshore Banking units having operations in India.
III. Pricing of Inter-segmental Transfers
The Retail Banking segment is the primary resource mobilising unit. The Corporate/Wholesale Banking and Treasury segments are recipient of funds from Retail Banking. Market related Funds Transfer Pricing (MRFTP) is followed under which a separate unit called Funding Centre has been created. The Funding Centre notionally buys funds that the business units raise in the form of deposits or borrowings and notionally sells funds to business units engaged in creating assets.
IV. Allocation of Expenses, Assets and Liabilities
Expenses incurred at Corporate Centre establishments directly attributable either to Corporate / Wholesale and Retail Banking Operations or to Treasury Operations segment, are allocated accordingly. Expenses not directly attributable are allocated on the basis of the ratio of number of employees in each segment/ratio of directly attributable expenses.
The Bank has certain common assets and liabilities, which cannot be attributed to any segment and the same are treated as unallocated.
D. Key Management Personnel of the Bank
1. Shri Challa Sreenivasulu Setty, Chairman
2. Shri Ashwini Kumar Tewari, Managing Director (Corporate Banking & Subsidiaries)
3. Shri Vinay M. Tonse, Managing Director (Retail Business & Operations) (up to 30th November 2025)
4. Shri Rana Ashutosh Kumar Singh, Managing Director (Risk, Compliance & SARG) (up to 14th December 2025)
5. Shri Rana Ashutosh Kumar Singh, Managing Director (International Banking, Global Markets & Technology) (from 15th December 2025)
6. Shri Rama Mohan Rao Amara, Managing Director (International Banking, Global Markets & Technology) (up to 30th November 2025)
7. Shri Rama Mohan Rao Amara, Managing Director (Retail Business & Operations) (from 1st December 2025)
8. Shri Ravi Ranjan, Managing Director (Risk, Compliance & SARG) (from 15th December 2025)
2. Parties with whom transactions were entered into during the year:
No disclosure is required in respect of related parties, which are "State-controlled Enterprises" as per paragraph 9 of Accounting Standard (AS) 18. Further, in terms of paragraph 5 of AS 18, transactions in the nature of Banker-Customer relationship have not been disclosed including those with Key Management Personnel and relatives of Key Management Personnel.
vii) Accounting Standard - 22 "Accounting for Taxes on Income":
a. Current Tax:
During the year the Bank has debited to Profit & Loss Account '29,045.07 Crore (Previous Year '24,843.75 Crore) on account of current tax. The Current Tax in India has been calculated in accordance with the provisions of Income Tax Act, 1961 after taking appropriate relief for taxes paid in foreign jurisdictions.
b. Deferred Tax:
During the year '3,600.30 Crore has been credited to Profit and Loss Account (Previous Year '473.11 Crore) on account of deferred tax.
The bank has 35 branches/ offices having operations outside India in ten countries, where Pillar II legislation is enacted or substantively enacted. Out of this, only two foreign branches, namely RBB Bahrain and WBB Bahrain, have paid advance taxes under the Pillar II framework for three quarters up to 31st December, 2025 for the financial year 2025-26. However, as at the reporting date, no deferred tax asset or deferred tax liability has been recognised in respect of such Pillar.
viii) Accounting Standard - 27 "Financial Reporting of interests in Joint Ventures":
Investments include '25.81 Crore (Previous Year '104.89 Crore) representing Bank's interest in the following jointly controlled entities. (Figures in brackets relate to previous year)
18.16. ADDITIONAL DISCLOSURES
i) Payment to Micro, Small & Medium Enterprises under the Micro, Small & Medium Enterprises Development Act, 2006:
There are no cases of delayed payments of the principal amount or interest due thereon to Micro, Small & Medium Enterprises.
ii) Inter Office Accounts:
Inter Office Accounts between branches, controlling offices, Local Head Offices and Corporate Centre establishments are being reconciled on an ongoing basis and there is no material effect on the profit and loss account of the current year.
iii) Revaluation of Properties:
- In terms of the RBI Guidelines, during the year Bank has revalued freehold immovable properties. Previous revaluation exercise was carried out in FY 2022-2023. The Revaluation Reserve is accounted property wise. Valuation report is obtained from two independent empaneled valuers and lower of the two realizable value is considered for accounting of revaluation reserve.
- The Revaluation Surplus, i.e. excess of realizable value over the carrying value as on 1st April 2025 amounting to '7,814.82 Crore is accounted by credit to the Profit & Loss amounting to '34.69 Crore to the extent it reversed the balance of Revaluation Deficit accounted up to previous revaluation exercise. The spillover amounting to '7,780.13 Crore is accounted as Revaluation Reserve.
The Revaluation Deficit i.e. excess of carrying value as on 1st April 2025 over the realizable value amounting to '198.54 Crore is accounted by debit to the Revaluation Reserve amounting to '181.04 Crore to the extent it reversed the balance of Revaluation Reserve as on 1st April 2025. The spillover amounting to '17.50 Crore is debited to Profit & Loss Account.
In addition to this, Revaluation Reserve amounting to '310.60 Crore is reversed during the revaluation exercise to comply with RBI Guidelines on revaluation of fixed assets.
iv) The Central Board has declared a dividend of '17.35 per share @1735% for the year ended 31st March 2026.
v) Previous year figures have been regrouped/reclassified, wherever necessary, to conform to current year classification. In cases where disclosures have been made for the first time in terms of RBI guidelines / Accounting Standards, previous year's figures have not been mentioned.
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