As per the Accounting Standard 29-”Provisions,
Contingent Liabilities and Contingent Assets” issued
by ICAI, the Bank recognizes provisions only when it
has a present obligation as a result of a past event
and it is probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation and when a reliable estimate of
the amount of the obligation can be made.

Contingent Liability is disclosed unless the possibility
of an outflow of resources embodying economic
benefit is remote.

Contingent assets are not recognized in the financial
statements since this may result in the recognition of
the income that may not be realized.

The Net Profit disclosed is after making the
Provisions and Contingencies which include
adjustment to the value of investments, write off of
bad debts, provision for taxation (including deferred
tax), and provision for advances including cases
identified as fraud and contingencies /others.

The provision for tax for the year comprises liability
towards current Income Tax, and Deferred Tax. The
deferred tax asset/ liability is recognized, subject to
the consideration of prudence, taking into account the
timing differences between the taxable income and
accounting income, in terms of the Accounting
Standard 22 issued by ICAI. The effect of change in
tax rates on deferred tax assets and liabilities is

recognized in the Profit & Loss Account in the period
of applicability of the change.

Deferred tax assets and liabilities are measured using
the applicable tax rates and tax laws that have been
enacted or substantively enacted by the balance
sheet date.

Deferred tax assets are recognized and re-assessed
at each reporting period based on management
judgement as to whether their realization is
considered as reasonably certain.

In cases of unabsorbed depreciation or carried
forward loss under taxation laws, all deferred tax
assets are recognized only if there is virtual certainty
of realization of such assets supported by convincing
evidence.

Interest income on refund of Income Tax is accounted
for in the year in which; the order is passed by the
concerned authority.

The demand raised by the Tax authorities including
the interest thereon is provided for when such
demand is accepted by the bank and the same is not
contested before appellate authority OR when such
demand is upheld by jurisdictional tribunal and there
is no favorable judgement of other tribunal on
identical issue and bank does not prefer to go before
High Court OR when such demand is upheld by High
Court.

v) Derivative exposures and potential collateral
calls:

Derivative exposure is shown as Net Derivative cash
inflows within 30 days. Inflows from derivative
exposure arose due to maturing forwards.

vi) Currency mismatch in the LCR;

As per the RBI guidelines while the LCR standard is
required to be met on one single currency, in order to
better capture potential currency mismatch the LCR
in each currency needs to be monitored. Accordingly,
Bank is maintaining LCR on daily basis in INR and
the same is compared against the regulatory
requirement. Further bank does not have exposure to
any other significant currencies*, hence LCR is
prepared for INR currency.

(*A significant currency is one where aggregate
liabilities denominated in the currency amount to 5%
or more of the bank's total liabilities).

vii) A description of the degree of centralization of
liquidity management and interaction between the
group's units:

The liquidity management for the bank on enterprise¬
wide basis is the responsibility of the Board of

Directors. Board of Directors has delegated its
responsibilities to a Committee of the Board called as
the “Risk Management Committee of Board”. The
committee is responsible for overseeing the inter
linkages between different types of risk and its impact
on liquidity.

Bank has Asset Liability & Market Risk Management
policy which provides the broad guidelines under
which all the entities within the group operate in terms
of liquidity and interest rate risk.

LCR is computed and monitored on daily basis by the
Bank and the same is shared with Treasury/Midoffice
for liquidity management and discussed in Investment
committee.

Further LCR for the latest month along with
comparison of previous months is placed before
ALCO on monthly basis. Moreover, LCR position
along with other liquidity parameters is placed before
RMC/Board on quarterly basis.

viii) The inflows and outflows in the LCR calculation
that are not captured in the LCR common
template but which the institution considers to be
relevant for its liquidity profile are as under:

Qualitative Disclosure around NSFR:

Guidelines on NSFR has become effective from
01.10.2021. Accordingly, bank has published its first
disclosure regarding NSFR for quarter ended 31.12.2021.

The objective of NSFR is to ensure that bank maintains a
stable funding profile in relation to the composition of its
assets and off-balance sheet activities. A sustainable
funding structure is intended to reduce the probability of
erosion of a bank's liquidity position due to disruptions in a
bank's regular sources of funding that would increase the
risk of its failure and potentially lead to broader systemic
stress. The NSFR limits overreliance on short-term
wholesale funding, encourages better assessment of
funding risk across all on- and off-balance sheet items, and
promotes funding stability. amount of available stable.

The NSFR is defined as the funding relative to the amount
of required stable funding. “Available stable funding” (ASF)
is defined as the portion of capital and liabilities expected to
be reliable over the time horizon considered by the NSFR,
which extends to one year. The amount of stable funding
required (“Required stable funding”) (RSF) of Bank is a
function of the liquidity characteristics and residual

maturities of the various assets held by Bank as well as
those of its off-balance sheet (OBS) exposures. NSFR is
defined as

Available Stable Funding (ASF)

NSFR = X 100

Required Stable Funding (RSFP)

Main drivers of NSFR:

The Bank as on 31st March 2026, had maintained ASF of
Rs. 271310.08 Crore. ASF consists of 58.19% from stable
& less stable non-maturity deposits and term deposits with
residual maturity of less than one year provided by retail
and small business customers.

RSF consists of 38.61% from “Other unencumbered
performing loans with risk weights greater than 35% under
the Standardized Approach and residual maturities of one
year or more, excluding loans to financial institutions” line
item.

NSFR for the quarter ended 31st March 2026 is 125.22%,
above RBI prescribed minimum requirement of 100%.

v) Divergence in asset classification and
provisioning

Banks are required to disclose the divergences in
asset classification and provisioning as per RBI
Direction no. RBI/DOR/2025-26/167 DOR. ACC.
REC.No. 86/21.04.018/2025-26 dated November 28,
2025 in respect of Reserve Bank of India
(Commercial Banks - Financial Statements:
Presentation and Disclosures) Directions, 2025,
wherever either or both of the following conditions are
satisfied:

(a) the additional provisioning for NPAs assessed by
Reserve Bank of India as part of its supervisory
process, exceeds 5 percent of the reported profit
before provisions and contingencies for the
reference period and

(b) the additional Gross NPAs identified by Reserve
Bank of India as part of its supervisory process
exceed 5 percent of the reported incremental
Gross NPAs for the reference period.

Explanation - Reported incremental Gross NPAs
refers to additions during the reference year to the
Gross NPAs as disclosed in the Notes to the
Financial Statements of the reference period.”

As the divergences are within threshold limit of 5% of
reported incremental Gross NPAs during the
reference year, no disclosure on divergence in asset
classification and provisioning for NPAs is required. In
terms of above explanation, “reported incremental
Gross NPAs” has been considered as the additions to
gross NPAs amounting to Rs. 1687.86 crore as
disclosed in Notes to Accounts during the reference
year ended on March 31, 2025.

* The Bank holds 100% provision i.e. of < 873.99 Crore against the fraud cases for FY 2025-26 (< 702.28 Crore FY
2024-25)

During the year ended 31st March 2026, the Bank has reported 394 fraud cases involving amount of < 990.00 crore
including 5 cases of borrowal frauds in earlier years (FY 2018-19 - 1 case, FY 2020-21 - 3 cases, FY 2022-23 - 1 case)
later deactivated as fraud by RBI in compliance with the Hon'ble Supreme Court Judgement amounting to < 619.96 crores
are now re-declared as fraud during FY 2025-26 after following due process.

Out of total fraud cases, 64 cases were related to digital payment fraud involving amount of < 2.37 Crores, where Bank
has suffered losses. Further in respect of remaining fraud cases amounting to < 987.63 crores, there is recovery of

< 38.22 Crore and further, in 2 fraud cases involving amount of < 76.20 crore, where ledger balance has been already
written off in years 2022 & 2023. Thus, provision is not required in these cases. In remaining fraud cases with amount
of < 873.21 crore, bank is holding 100% provisions to the extent of loss i.e. < 873.21 crores. There are 3 suspected fraud
cases where bank has suffered loss of < 0.78 Crore are also provided to the full extent. Hence, total provision done is

< 873.99 Crore.

computing UFCE, an exposure may be considered
naturally hedged if the offsetting exposure has the
maturity/cash flow within the same accounting year).

Method to estimate the extent of likely loss:

The loss to the entity in case of movement in
exchange rate is calculated using the annualised
volatilities. For this purpose, largest annual volatility
seen in the rates during the period of last ten years
is taken as the movement of the rate in the adverse
direction.

Method to estimate the riskiness of unhedged
position and provide appropriately :

The likely loss / EBID so arrived at is taken as the
base, as per which consolidated UFCE on behalf of
the constituents is calculated, based on the model
specified by the Bank. Such exposure is subjected to
additional provisioning and also incremental capital
requirement.

Further, the pricing to such constituents is accordingly
re-priced based on the risk profile of the borrower by
loading an appropriate premium to cover the UFCE.

Note:

i) The Bank shall be guided by the Reserve Bank of India (Commercial Banks- Credit Facilities) Directions, 2025 as amended
from time to time.

ii) Information may be disclosed separately for loans against gold collateral and loan against silver collateral.

iii) Average LTV ration is calculated as ratio of sum of LTVs of loans at the time of sanctions to the number of such loans.

iv) The above Point no 7- loans written of during the FY, does not include loans which are technically/ prudentially written off.

v) The above disclosure is applicable from 01.04.2026. As such corresponding figures of previous year ended 31.03.2025
are not given.

c) Disclosures on risk exposure in derivatives

Qualitative disclosures

i) Derivative policy is approved by the Board, which includes measurement of credit & market risk.

ii) Policy for hedging and processes for monitoring the same are in place.

iii) The hedged transactions are undertaken for Balance Sheet management. Proper system for reporting & monitoring
of risks is in place.

iv) Risk Management of derivative operations is headed by a Top Management Executive who reports to Head Office. The
swaps are tracked on regular basis.

v) Accounting Policy for recording hedge and non-hedge transactions is in place, which includes recognition of income,
valuation of outstanding contracts and credit risk mitigation as given in para 3.6 (ii) of Schedule 17, viz., Significant
Accounting Policies.

vi) The Bank has made requisite provision on credit exposure of derivative contracts computed as per current exposure
method & as per RBI guidelines.

f) Implementation of IFRS converged Indian Accounting Standards (Ind AS)

1. The Proforma Financial Statement (PFS) has been submitted to RBI on half yearly basis (from FY 2021-22) after
vetting from consultant. The same has also been approved by the Board.

2. Bank has also appointed a consultant for implementation of Ind AS through OFSAA Solutions.

h) Disclosure on amortization of expenditure on account of enhancement in family pension of employees of banks

The additional liability on account of enhancement in family pension in line with Government guidelines, works out to
< 217.70 Crore as per Actuarial valuation. The Bank had already recognized the said liability and charged to the Profit
& Loss Account during the FY 2021-22.

i) Letter of Comfort (LOCs) issued by Bank for the purpose of Trade Credit Facility to corporate.

During the current year, 81 Trade credits amounting to < 550.07 crores were sanctioned by the Bank and No Letters of
Comfort issued by the branches in favor of various other Banks for arranging trade credit to corporate clients.

As on 31st March 2026, 34 Trade Credits amounting to < 123.15 crores are outstanding as against 25 Trade Credits
amounting to < 174.18 crores for the year ended 31st March 2025.

* This shall contain the cumulative amount since the RE started offering green deposits. For example, if a bank has
commenced raising green deposits from June 1, 2023, then the annual financial statement for the period ended March
31, 2026, would contain particulars of deposits raised and allocated from June 1, 2023, till March 31, 2026. Further,
the actual amount of green deposits raised during the year and use of such funds shall be given under this disclosure.

** Under each category, REs may provide sub-categories based on the funds allocated to each sub-sector. For example,
REs may provide sub-categories like solar energy, wind energy, etc. under “Renewable Energy”.

|l^Prop!!ty^!n!$Equ!pme!!(AS1o|l

i. In accordance with the As-10 “Property, Plant and
Equipment” depreciation of < 45.22 Crore (< 29.46
Crore) for the year on revalued portion of fixed assets
has been charged to Profit and Loss Account.
Equivalent amount of < 45.22 crore (< 29.46 Crore)
has been transferred from Revaluation Reserve to
Revenue Reserve.

ii. Certain premises of bank are stated at revalued
amount. The gross amount of such revaluation
included in premises at the end of the year is
< 1864.30 Crore (< 1443.33 Crores) and net of
depreciation the revaluation amounts to < 1819.09
Crores (< 1413.87 Crores).

The title deeds in respect of few revalued premises
having cost of < 9.19 crores (< 9.19 crores) are not
yet executed / registered in favour of the Bank due to
certain long pending disputes / formalities.

The Bank has complied with the Accounting Standards
issued by The Institute of Chartered Accountants of India
(ICAI) to the extent applicable as under:

Accounting Standard 3 - Cash Flow Statement: The

bank prepares cash flow statement in line with requirements
of AS-3 using indirect method.

Accounting Standard 5 - Net Profit or Loss for the
period, prior period items and changes in accounting
policies: As prior period items of income/expenditure are
not material, the same have been charged/accounted for in
respective heads of accounts during the year.

iii. Therse are cases pending for leased premises where
no contingent liability is recognized as the Bank is
defending all these cases filed against it by landlords
of Branch Premises due to expiration of lease deeds.
Out of these, in case Bank accounts for its liability to
amount < 7.97 crores (< 1.05 crores) towards
increment in rent due to as per original deeds as the
base rent are continued to be paid to the landlord. In
all other cases where landlords have claimed profits,
the amount cannot be ascertained unless the court
crystalises quantum of profits.

iv. Capital work in progress comprises of the cost of
fixed assets that are not yet ready for their intended
use at the reporting date. Capital work in progress
amounting to < 8.01 Crore (< 4.25 Crore) includes
construction of building.

Accounting Standard 9 - Revenue Recognition: As per

Accounting Policy No. 6.2, given in Schedule - 17 -
Significant Accounting Policies, the interest payable on
overdue term deposit is provided on accrual basis at rate of
interest as applicable to saving account or contracted rate
of interest on the matured TD, whichever is lower from
02.07.2021.

Accounting Standard 11 - Effect of Changes in Foreign
Exchange Rates: Net income on account of exchange
differences credited to Profit and Loss account for the year
is < 125.68 crore (< 63.29 crore).

B. Defined Benefit Plans:

a) Pension Plan- This is a post-employment benefit, which is 50% of final pay for a maximum of 33 years of pensionable
service. This is a funded scheme.

b) Gratuity Plan- This is a post-employment benefit and is payable as higher of Gratuity as per Company's Rules and
Gratuity under Payment of Gratuity Act 1972 as amended. This is a funded scheme.

c) Leave Encashment/ Compensated Absences-This is a post-employment benefit and is payable for a maximum limit
of 255 days of accumulated leave based on final pay. This is a funded scheme.

a) Treasury segment includes Investment, balances with
Banks outside India, Interest accrued on investments
and related income there from.

b) Corporate/Wholesale Banking Segments include all
advances to trusts, partnership firms, companies,
statutory bodies and individuals etc. which are not
included in Retail Banking Segments.

c) Retail Banking Segments include exposure to entity/
concern where

i. Total average annual turnover less than < 50.00
crore and

ii. Aggregate exposure to one counter party does
not exceed 0.2% of the overall retail portfolio of
the Bank and

iii. The maximum aggregated retail exposure to one
counterpart is up to < 7.50 crore.

d) Other Banking Operations segment includes all other
banking transaction not covered under segments,
specified above.

e) The interest income is allocated on the basis of actual
interest received from wholesale banking operations.
The total interest received less interest of wholesale
banking is taken to retail banking operations.

f) Expenses not directly attributable are allocated on the
basis of Interest income earned by the wholesale
banking / retail banking segment. Expenses of
treasury operations are as per the details available
from treasury operations.

g) Capital employed for each segment has been
allocated proportionate to the assets of the respective
segment.

g) Staff welfare Trust for Gratuity - Bank of Maharashtra Employees' Gratuity Fund

h) Staff welfare Trust for Provident Fund - Bank of Maharashtra Employees' Provident Fund

i) Staff welfare Trust for Leave Encashment - Bank of Maharashtra Employees Privilege Leave Encashment Fund Trust
Transactions with Related parties:

No disclosure is required in respect of related parties, which are “State Controlled Enterprises” as per paragraph no 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.

Accounting Standard 19 - Leases

Finance Leases: Lease under which the Bank assumes substantially all the risks and rewards of ownership are classified as
finance leases. Such assets acquired are capitalized at fair value of the asset or lease payments at the inception of the lease,
whichever is lower.

Operating Leases: Lease payment under operating leases are recognized as an expenses, as and when incurred in the
statement of Profit and Loss Account over the lease term. Amount of lease payments recognized in P&L account for operating
lease is < 300.37 crore (for FY 2024-25 < 252.04 crore).

Accounting Standard 21 - Consolidated Financial Statements:

The financial results of the Associate viz. Maharashtra Gramin Bank and subsidiary viz. Maharashtra Executor & Trustee
Company Private Limited have been consolidated with the parent bank in compliance with Accounting Standard 23 and
Accounting Standard 21 respectively.

Accounting Standard 22 - Accounting for Taxes on Income:

a) Current tax

During the FY2025-26 Bank has debited to P&L Rs.855.29 crore (Nil for FY2024-25) on account of current Tax. The current
tax has been calculated in accordance with the provisions of the Income Tax Act 1961.

b) Deferred Tax

Based on the review by the bank and on reasonable certainty of availability of future taxable income against which timing
differences arising on account of provision for accumulated losses, Bad & Doubtful Debts (NPA), employee benefits etc.
can be realized, the bank has accounted for taxes on income in compliance with AS 22. Accordingly, Deferred Tax Assets
and Deferred Tax Liabilities are as under:

As the bank has opted for lower tax rate permitted under section 115 BAA of the Income Tax Act 1961 from AY 2021-22, the
provisions of section 115JB of the Income Tax Act are not applicable to the bank.

Accounting Standard - 24 - Discontinuing Operations:

The Bank, during the financial year 2025-26, has not discontinued any of its business activities/ operations which resulted in
discharging of liabilities and realization of the assets and no decision has been finalized to discontinue a business activity in its
entirety which will have the above effects.

Accounting Standard 28- Impairment of Assets:

Assets are reviewed for impairment at the end of the year whenever events or changes in circumstances warrant that the carrying
amount of an asset may not be recoverable. Recoverability of an asset to be held and used is measured by a comparison for
the carrying amount of an asset to future net discounted cash flows expected to be generated by the asset. If such an asset
is considered to be impaired, the impairment to be recognized and is measured by the amount by which the carrying amount
of the asset exceeds the recoverable amount of the asset. However, in the opinion of the Bank's Management, there is no
indication of material impairment to the assets during the year to which Accounting Standard 28 - “Impairment of Assets” applies.

fi

In respect of Maharashtra Gramin Bank, Central
Government vide Gazette Notification No. CG-DL-E-
07042025-262329 dated 07.04.2025 notified
amalgamation of Vidharbha Konkan Gramin Bank
(VKGB) with Maharashtra Gramin Bank (MGB).
Accordingly, Vidharbha Konkan Gramin Bank,
sponsored by Bank of India is amalgamated into
Maharashtra Gramin Bank Sponsored by Bank of
Maharashtra with effect from May 1st 2025 (having
35% share).

Further, on account on the above amalgamation of
VKGB with MGB, the carrying amount of bank
investment in associate amounting to < 380.02
crores has been adjusted as under:

• Bank undertook valuation of its associate and
accordingly impairment loss of < 280.59 crore
was booked in Standalone Financial Statement of
the Bank during the year.

• Balance amount of < 99.43 crore has been
adjusted in Reserves & Surplus of the
consolidated financials as per AS-23 “Accounting
for investment in Associates”.

The Board has recommended a final dividend of < 1.20 per
equity share (i.e., 12% on the face value of < 10 per equity
share) for the financial year 2025 26, subject to requisite
approval from the shareholders.

This final dividend, if approved, will be in addition to the
interim dividend of <1.00 per equity share (10%) declared
and paid during the financial year.

Previous year's figures have been regrouped / reclassified
wherever considered necessary to make them comparable
with current year's figure.