Attached herewith rating received from CARE. Kindly acknowledge receipt.

3WW3W+ to f8Tfllb IDBI Bank Limited qdtpaarqfaq : 3rlW3rdffw, Regd. Office : iDBI Tower, sWt:it tRiM@,©nqts, WTC Complex, Cuffe Parade, CIN: L65190MH2004G01148838 @ - 400 005. Mumbai - 400 005 afbHta : (+91 22) 6655 3355 TEL.: (+91 22) 6655 3355 (+gl 22) 6655 3405. 3410 (+91 22) 6655 3405, 3410 &gTI@ : www.idbi.bank.in Website : www.idbi.bank.in August 27, 2026 The Manager (Listing) The Manager (Listing) BSE Ltd National Stock Exchange of India Ltd 25th Floor, Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor DalaI Street, Fort. Plot No. C/1, G Block, Mumbai – 400 001 Bandra Kurla Complex, Bandra(E) Mumbai – 400 05 1 Dear Madam/Sir, Rating by CARE This is to inform that CARE Ratings has reaffirmed its rating on the short-term rating on certificate of deposit programme at 'CARE Al+'. The detailed report is attached herewith. You are requested to kindly take the above intimation on record in terms of Regulations 30 & 51 of SEBI (LODR) Regulations, 2015. Yours faithfully, For IDBI Bank Ltd. Company Secretary Press Release IDBI Bank Limited August 26, 2026 Facilities/Instruments Name of the Regulator1 Amount (₹ crore) Rating2 Rating Action Certificate of deposit RBI 35,000.00 CARE A1+ Reaffirmed Details of instruments/facilities in Annexure-1. Rationale and key rating drivers Reaffirmation of the rating assigned to the short-term instruments of IDBI Bank Limited (IDBI Bank) continues to factor in improved asset quality and profitability supported by reduction in credit costs. The rating further factors in the bank’s comfortable capitalisation levels, its increasing focus on retail lending in the last few years and healthy, though declining, current account savings account (CASA) deposit proportion. The bank has maintained comfortable capitalisation levels with adequate cushion over the minimum regulatory requirement, supported by internal accruals in the last five years and significant amount of equity infusion by the Life Insurance Corporation of India (LIC), Government of India (GoI), and qualified institutional placement (QIP) prior to FY21. IDBI Bank is expected to sustain growth in business while maintaining adequate capitalisation. However, sustenance of improvement in financial metrics and ability to contain slippages of recently originated advances remain key monitorable. In FY26, the pass-through of repo rate cuts compressed the bank’s net interest margin (NIM), as yields on advances declined faster than deposit costs. Consequently, the bank’s pre-provisioning operating profit (PPOP) declined by ~2%. However, reversal of provisions, supported profit after tax (PAT) growth of ~27% in FY26. In FY19, LIC acquired majority shareholding in the bank post which GoI became the second major shareholder in the bank and the bank was classified as a ‘Private Sector Bank’ by RBI from January 21, 2019, consequent to GoI’s direct shareholding in the bank reducing below 51%. CARE Ratings Limited (CareEdge Ratings) notes that LIC and GoI together hold 94.72% shareholding in the bank, with a stated intent to divest their shareholding of up to 60.72% in the bank through a strategic stake sale, including handover of management control in the bank, for which, the process is underway. CareEdge Ratings expects the bank to receive required support from GoI and LIC to enable smooth divestment of the shareholding. Rating sensitivities: Factors likely to lead to rating actions Positive factors – Factors that could individually or collectively, lead to positive rating action/upgrade: • Not applicable Negative factors – Factors that could individually or collectively, lead to negative rating action/downgrade: • Deterioration in the asset quality, with the net non-performing asset (NNPA) ratio above 1% on a sustained basis. • Decline in the capital adequacy ratio (CAR), with the cushion over the minimum regulatory requirement falling below 3.5%. • Decline in profitability, with return on total assets (ROTA) less than 0.8% on a sustained basis. Analytical approach: Standalone Outlook: Not applicable 1SEBI: Securities and Exchange Board of India; RBI: Reserve Bank of India; MCA: Ministry of Corporate Affairs; IRDAI: Insurance Regulatory and Development Authority of India; PFRDA: Pension Fund Regulatory and Development Authority 2Complete definitions of the ratings assigned are available at www.careratings.com and in other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. Press Release Detailed description of key rating drivers Key strengths Comfortable capitalisation IDBI Bank continues to have comfortable capitalisation with a capital adequacy ratio (CAR) of 26.92% and Tier-I (entirely Common Equity Tier-I Capital) CAR of 26.38% as on June 30, 2026 (March 31, 2026: CAR – 26.65% and Tier-I CAR – 25.56%) compared to a CAR of 25.05% and Tier-I CAR of 23.51% as on March 31, 2025, due to improved internal accruals. In the past, the bank received a significant amount of equity capital from LIC (₹26,761 crore from FY18-FY20) and GoI (₹18,928 crore from FY17-FY20), which helped it improve CAR above minimum regulatory requirement, as it faced mounting losses due to asset quality issues. At current capitalisation levels, the bank has a significant cushion over minimum regulatory requirement and has seen improved profit accretion, thereby achieving its targeted credit growth in the medium term without having to raise additional capital, as internal accruals are expected to be sufficient to meet capitalisation requirements. Further, the capitalisation levels provide cushion to transition to the Expected Credit Loss (ECL) based provisioning w.e.f. April 01, 2027. Strong franchise with focus on retail lending and a stable deposit profile and CASA deposit base over last few years The bank shifted its liability profile over the years to increase granularity in the business. The bank has a strong franchise with a network of over 2,200 branches as on June 30, 2026, and has been able to maintain its healthy deposit base even after being converted to a private bank in 2019. The deposit profile also strengthened to some extent due to the synergies with LIC as it became the major shareholder in the bank. In line with industry trend, the proportion of CASA deposits declined to 44.59% as on March 31, 2026, against 46.56% as on March 31, 2025, despite growth in CASA deposits by ~7% in absolute terms. The proportion of bulk deposits (deposits of ₹3 crore and above) increased to ~24% of total deposits as on March 31, 2026 against 21% of total deposits as on March 31, 2025. CASA proportion decreased to 43.64% as on June 30, 2026. The bank’s credit-to-deposit (C/D) ratio increased to 79.50% as on June 30, 2026 (March 31, 2025: 70.38%). Over the years, the bank increased the share of retail, agriculture, and MSME (RAM) advances, which accounted for ~70% of total advances as on March 31, 2026, while corporate advances constituted the remaining 30%. The bank continues to target growth in its retail and priority sector business to ensure a granularised and de-risked portfolio mix. Under retail advances, home loans and loan-against-property (LAP) constituted the major proportion at 53% of the total RAM advances as on March 31, 2026. CareEdge Ratings expects the bank to maintain the constitution of its advances book with high granularity and lower proportion of corporate lending. The bank’s ability to mobilise deposits while keeping cost of deposits under control, with divestment of stakes by GoI and LIC, will remain monitorable. Improvement in earnings profile backed by growth in advances, NIM to be monitorable in the near term In FY26, although the bank witnessed an advance growth of ~16%, the interest income remained muted due to immediate repricing of advances considering pass on of the Repo rate cuts, while interest expenses remained elevated due to lag in repricing of deposits. Thus, the net interest income (NII) decreased by ~8% which resulted in NIM to decrease from 3.95% in FY25 to 3.18% [Showing first 8,000 characters — download PDF for full document]