Shareholders meeting

(Subsidiary of Punjab National Bank) September 3, 2026 The Manager – Listing The Manager – Listing National Stock Exchange of India Ltd. BSE Ltd. Exchange Plaza Phiroze JeeJeebhoy Towers Bandra Kurla Complex Dalal Street Bandra (E), Mumbai -400051 Mumbai- 400 001 Scrip Code: PNBGILTS Scrip Code: 532366 Sub: Annual Report of the Company for financial year 2025-26, inter-alia, including Notice of 30th Annual General Meeting (AGM) Dear Sir/Madam, Pursuant to Regulation 30 and 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations") read with Schedule III thereto, please find attached herewith a copy of Annual report for the financial year 2025-26, which is being sent through electronic mode to those Members whose e-mail addresses are registered with the Company/ Registrar to Issue and Share Transfer Agent (‘RTA’)/Depository Participant(s) (‘DPs’), inter-alia, including Business Responsibility and Sustainability Report and the Notice convening the 30th AGM of the Company scheduled to be held on Monday, September 28, 2026 at 11:00 a.m. (IST) through Video Conferencing ('VC') facility in accordance with the relevant circulars issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India. Further, a letter in accordance with Regulation 36(1)(b) of the Listing Regulations which is being sent to the Shareholders whose e-mail addresses are not registered with the Company/RTA/DPs, providing web link and exact path, from where the Annual Report for the financial year 2025-26 and Notice of the 30th AGM can be accessed on the website of the Company, is also attached herewith. This will also be uploaded on our website www.pnbgilts.com. We request you to kindly take the same on record. Thanking You, Yours faithfully, For PNB Gilts Ltd. (Monika Kochar) Company Secretary & Compliance Officer Encl: A/a Regd. Office : 5, Sansad Marg, New Delhi-110 001. Ph. : 23325759, 23325779 Website : www.pnbgilts.com E-mail : pnbgilts@pnbgilts.com CIN : L74899DL1996PLC077120 Navigating with Confidence. Annual Report 2025-26 PNB GILTS LTD. The lighthouse on the cover symbolizes PNB Gilts' enduring role as a trusted guide in India's fixed-income market. Just as a lighthouse provides stability, direction and confidence through changing tides, PNB Gilts has consistently navigated evolving interest-rate environments with resilience, expertise and market leadership. As one of the first Primary Dealers authorized by the Reserve Bank of India and backed by the strength of Punjab National Bank, the Company has played a pivotal role in deepening the country's fixed-income ecosystem, fostering market confidence and maintaining a dominant presence in India’s debt market. The imagery reflects PNB Gilts' unwavering commitment to guiding the market with trust, stability and vision, while illuminating the path towards sustained growth and long-term value creation. OUR STRENGTHS COMPANY INFORMATION COMPANY SECRETARY CHIEF FINANCIAL OFFICER Competitive Ms. Monika Kochar Ms. Kishkanda Garg Strengths Globally benchmarked services JOINT STATUTORY AUDITORS CONCURRENT AUDITOR 1. K Venkatachalam Aiyer & Co. Grant Thornton Bharat LLP C-6/50, Block - C6 6th Floor, Worldmark 2, Safdarjung Development Area Aerocity, New Delhi - 110037 Hauz Khas, New Delhi-110016 Strong and efficient Risk management 2. Raj Har Gopal & Co. 412 - Ansal Bhawan 16 - Kasturba Gandhi Marg New Delhi - 110001 High standards of Governance BANKERS Reserve Bank of India Punjab National Bank ICICI Bank Ltd. Skilled professionals and market trust CONTENTS Chairman’s Message 8 Statement of Profit and Loss 162 MD & CEO Message 12 Statement of Cash Flows 164 Board’s Report 18 Statement of Changes in Equity 166 Management Discussion and Analysis 46 Notes to Financial Statements 169 Report on Corporate Governance 58 Schedule to Balance Sheet of a Non-Deposit taking Non-Banking Financial Company 261 Business Responsibility and Sustainability Report 89 Financials at a Glance 266 Financial Review 139 Notice of AGM 268 Independent Auditor’s Report 140 Balance Sheet 160 C O N T E N T S PNB Gilts Annual Report 2025-26 CORPORATE PHILOSOPHY "An institution defined by the standards it upholds" Integrity, transparency, prudence, and accountability are the constants that guide us today and will continue to guide us as the market evolves. These principles find expression in the following commitments: 1. INTEGRITY Ethical conduct forms the foundation of our decisions and actions. 2. TRANSPARENCY We engage openly, communicate clearly, and disclose accurately. 3. PRUDENCE We manage risk and opportunity with equal discipline, sustaining resilience through changing conditions. VISION & MISSION 4. ACCOUNTABILITY We remain answerable for our decisions and committed to the trust To be at the forefront of To leverage digital transformation, placed in us. innovation in India's financial strong risk management, and markets and setting new innovative ethical practices to standards of excellence in provide efficient, transparent, and market development, client innovative access to India’s engagement, and financial markets across all asset institutional leadership. classes. PNB Gilts Annual Report 2025-26 Dear Shareholders, steepening of the curve was therefore the licence, and they were honoured in full in a CHAIRMAN’S MESSAGE central fact of our year, and our results have to year when honouring them was expensive. FY2025-26 presented the Indian bond be read against it. Our discipline held as well. Average leverage market with a paradox. The economy was contained at 14.48 times net owned delivered its finest combination of growth The cost of the year is visible in those results. ` funds against the permitted 20 times, and and price stability in the inflation-targeting Profit before tax stood at 241.60 crore and ` the average cost of funds came down to era. Real GDP grew by 7.7%, the fastest profit after tax at 181.62 crore, against ` 5.48%. Net owned funds rose to 1,696.44 among major economies, and consumer 233.03 crore PAT in FY2024-25. Most of the crore and the capital adequacy ratio inflation averaged 2.1%, the lowest pressure came in the final quarter, when strengthened to 52.68% from 42.68%, which full-year reading in the current series. The the West Asia conflict took crude oil towards ` means your Company ended a difficult year Reserve Bank of India cut the policy rate US$ 138 a barrel, pressed the rupee to 94.7 better capitalised than it began it. It is on this by 100 basis points to 5.25% and infused to the dollar, close to 10% weaker over the ` strength that the Board has recommended a close to 13.8 lakh crore of durable liquidity year, and drove the long end of the curve dividend of 2 per share, double the previous into the system. The Government held the above 7%, leaving valuation losses on trading year’s Re 1. A higher dividend in a year of fiscal deficit to 4.4% of GDP, continuing a books across the industry, ours among them. lower profit is a considered decision. We took consolidation it has pursued every year A dealing business that carries sovereign it because the balance sheet can well afford since the pandemic. Anyone reading these duration earns less when long yields rise. it, and because shareholders who stayed with numbers would have expected bond I would, however, ask you to look at the the Company through a testing year should yields to fall. They rose instead, and the composition of what we earned. Interest share in its underlying strength. benchmark 10-year yield closed the year income, the steadiest part of our earnings, at 7.06%, above 7% for the first time since grew by close to 12%, and every rupee of It is worth stepping back from a single year, July 2024. The reasons for this paradox this year’s profit was earned with the curve because the case for this Company rests on shaped your Company’s year, and I want to moving against us. I attach more weight t [Showing first 8,000 characters — download PDF for full document]