THIS IS A PUBLIC ANNOUNCEMENT FOR INFORMATION PURPOSES ONLY.

THIS IS NOT A PROSPECTUS ANNOUNCEMENT AND DOES NOT CONSTITUTE AN INVITATION OR OFFER TO ACQUIRE, PURCHASE
OR SUBSCRIBE FOR UNITS OR SECURITIES. NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY OUTSIDE INDIA.

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CAPITAL SMALL FINANCE BANK LIMITED
Our Bank was incorporated as ‘Capital Local Area Bank Limited’ on May 31, 1999 at Phagwara district Kapurthala, Punjab, as a public limited company under the Companies Act, 1956, and was granted a
certificate of incorporation by the Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh. The name of our Bank was subsequently changed to ‘Capital Small Finance Bank Limited’ pursuant to a
shareholders’ resolution dated April 2, 2016, to reflect the change in status of our Bank from a local area bank to a small finance bank pursuant to the Reserve Bank of India approval dated March 4, 2016, and a
fresh certificate of incorporation was granted by the Registrar of Companies, Punjab and Chandigarh at Chandigarh (“RoC”) on April 15, 2016. Our Bank commenced its business pursuant to a certificate of
commencement of business issued by the Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh dated August 12, 1999. For further details, see “History and Certain Corporate Matters” on page
177 of the Draft Red Herring Prospectus.
Registered and Corporate Office: MIDAS Corporate Park, 3rd Floor, 37, G.T. Road, Jalandhar 144 001, Punjab, India; Tel: +91 181 5051111/2222;
Website: www.capitalbank.co.in; Contact Person: Amit Sharma, Company Secretary and Compliance Officer; E-mail: [email protected];
Corporate Identity Number: U65110PB1999PLC022634
ADDENDUM TO THE DRAFT RED HERRING PROSPECTUS DATED OCTOBER 30, 2021 (THE “DRAFT RED HERRING PROSPECTUS”): NOTICE TO INVESTORS
(THE “ADDENDUM”)
INITIAL PUBLIC OFFER OF UP TO [●] EQUITY SHARES OF FACE VALUE OF ₹10 EACH (“EQUITY SHARES”) OF CAPITAL SMALL FINANCE BANK
LIMITED (“BANK” OR “ISSUER”) FOR CASH AT A PRICE OF ₹[●] PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF ₹[●] PER EQUITY SHARE)
(“OFFER PRICE”) AGGREGATING UP TO ₹[●] MILLION (THE “OFFER”) COMPRISING A FRESH ISSUE OF UP TO [●] EQUITY SHARES AGGREGATING
UP TO ₹ 4,500.00 MILLION (THE “FRESH ISSUE”) AND AN OFFER FOR SALE OF UP TO 3,840,087 EQUITY SHARES AGGREGATING UP TO ₹[●] MILLION
(THE “OFFER FOR SALE”), COMPRISING UP TO 337,396 EQUITY SHARES AGGREGATING UP TO ₹[●] MILLION BY PI VENTURES LLP (“PI
VENTURES”), UP TO 604,614 EQUITY SHARES AGGREGATING UP TO ₹[●] MILLION BY AMICUS CAPITAL PRIVATE EQUITY I LLP (“ACPE”), UP TO
70,178 EQUITY SHARES AGGREGATING UP TO ₹[●] MILLION BY AMICUS CAPITAL PARTNERS INDIA FUND I (“ACPIF” AND TOGETHER WITH ACPE,
“AMICUS”) AND UP TO 836,728 EQUITY SHARES AGGREGATING UP TO ₹[●] MILLION BY OMAN INDIA JOINT INVESTMENT FUND II (“OIJIF II”, AND
TOGETHER WITH PI VENTURES, ACPE, ACPIF AND OIJIF II, THE “INVESTOR SELLING SHAREHOLDERS”), AND UP TO 1,991,171 EQUITY SHARES
AGGREGATING UP TO ₹[●] MILLION BY CERTAIN PERSONS LISTED IN THE DRAFT RED HERRING PROSPECTUS (THE “OTHER SELLING
SHAREHOLDERS”) (THE INVESTOR SELLING SHAREHOLDERS AND THE OTHER SELLING SHAREHOLDERS, COLLECTIVELY, THE “SELLING
SHAREHOLDERS”, AND SUCH EQUITY SHARES OFFERED BY THE SELLING SHAREHOLDERS, THE “OFFERED SHARES”). THE OFFER INCLUDES A
RESERVATION OF UP TO [●] EQUITY SHARES AGGREGATING UP TO ₹[●] MILLION (CONSTITUTING UP TO [●]% OF THE POST-OFFER PAID-UP
EQUITY SHARE CAPITAL OF OUR BANK) FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (THE “EMPLOYEE RESERVATION PORTION”). THE OFFER
LESS THE EMPLOYEE RESERVATION PORTION IS HEREINAFTER REFERRED TO AS THE “NET OFFER”. THE OFFER AND THE NET OFFER WILL
CONSTITUTE AT LEAST [●]% AND [●]% OF OUR POST-OFFER PAID-UP EQUITY SHARE CAPITAL, RESPECTIVELY.
Potential Bidders may note the following:

a) The Draft Red Herring Prospectus contains Restated Financial Information of our Bank as at and for the three months ended June 30, 2021 and June 30, 2020,
and as at and for the financial years ended March 31, 2021, March 31, 2020 and March 31, 2019. The sections titled “Selected Statistical Information” and
“Financial Statements” beginning on pages 208 and 225 respectively, of the Draft Red Herring Prospectus have been updated to provide recent restated financial
information of our Bank, as at and for the three months ended June 30, 2022 and June 30, 2021, and as at and for the financial years ended March 31, 2022, March
31, 2021 and March 31, 2020, restated in accordance with the SEBI ICDR Regulations, which are derived from our audited financial statements as at and for the
three months ended June 30, 2022 and June 30, 2021 and as at and for the financial years ended March 31, 2022, March 31, 2021 and March 31, 2020, prepared
by our Bank in accordance with the provisions of Section 29 of the Banking Regulation Act, accounting principles generally accepted in India including accounting
standards prescribed under Section 133 of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014 to the extent applicable and other relevant
provisions of the Companies Act, 2013 and current practices prevailing within the banking industry in India and the requirements prescribed under the Banking
Regulation Act, the circulars and guidelines issued by RBI from time to time, through this Addendum. All details in the sections titled, “Selected Statistical
Information” and “Financial Statements” from this Addendum will be disclosed appropriately in the Red Herring Prospectus and the Prospectus, as and when
filed with the RoC, the SEBI and the Stock Exchanges.

b) Post filing of the DRHP, there have been certain material updates, including in relation to the management of our Bank. Accordingly, such updates have been
included in the section titled “Other Material Updates” on page 99 of this Addendum.

Potential Bidders may note that in order to assist the Bidders to get a complete understanding of the updated information, the updated sections titled “Selected Statistical
Information” and “Financial Statements”, and certain updated portions of the section titled “Industry Overview” have been included in this Addendum. The above
changes are to be read in conjunction with the Draft Red Herring Prospectus and accordingly their references in the Draft Red Herring Prospectus stand updated pursuant
to this Addendum. The information in this Addendum supplements the Draft Red Herring Prospectus and updates the information in the Draft Red Herring Prospectus,
as applicable. Please note that the information included in the Draft Red Herring Prospectus will be suitably updated, including to the extent stated in this Addendum,
as may be applicable in the Red Herring Prospectus and the Prospectus, as and when filed with the RoC, the SEBI and the Stock Exchanges. Investors should read the
Red Herring Prospectus as and when filed with the RoC, the SEBI and the Stock Exchanges before making an investment decision in the Offer. All capitalised terms
used in this Addendum shall, unless the context otherwise requires, have the meaning ascribed to them in the Draft Red Herring Prospectus. The Equity Shares offered
in the Offer have not been and will not be registered, listed or otherwise qualified in any jurisdiction except India and may not be offered or sold to persons outside of
India except in compliance with the applicable laws of each such jurisdiction. Any person into whose possession the Draft Red Herring Prospectus comes is required
to inform him or herself about, and to observe, any such restrictions. In particular, the Equity Shares offered in the Offer have not been and will not be registered under
the U.S. Securities Act or the securities laws of any state of the United States and may not be offered or sold within the United States (as defined in Regulation S under
the U.S. Securities Act (“Regulation S”)) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities
Act and applicable state securities laws. The Equity Shares are being offered and sold only outside the United States in “offshore transactions” as defined in and in
reliance on Regulation S.
For and on behalf of Capital Small Finance Bank Limited
Place: Jalandhar Sd/-
Date: September 12, 2022 Amit Sharma
Company Secretary and Compliance Officer
BOOK RUNNING LEAD MANAGERS REGISTRAR TO THE OFFER

Edelweiss Financial Services Limited Axis Capital Limited SBI Capital Markets Limited* Link Intime India Private Limited
6h Floor, Edelweiss House Axis House, 1st floor 202, Market Tower ‘E’ C-101, 1st Floor
Off C.S.T Road, Kalina C-2 Wadia International Centre Cuffe Parade, Mumbai 400 005 247 Park
Mumbai 400 098 P.B. Marg, Worli Maharashtra, India Lal Bahadur Shastri Marg
Maharashtra, India Mumbai 400 025 Tel: +91 22 2217 8300 Vikhroli (West)
Tel: +91 22 4009 4400 Maharashtra, India E-mail: [email protected] Mumbai 400 083
E-mail: [email protected] Tel: +91 22 4325 2183 Website: www.sbicaps.com Maharashtra, India
Website: www.edelweissfin.com E-mail: [email protected] Investor Grievance ID: Tel: +91 22 4918 6200
Investor Grievance ID: Website: www.axiscapital.co.in [email protected] E-mail: [email protected]
[email protected] Investor Grievance ID: [email protected] Contact Person: Aditya Deshpande Website: www.linkintime.co.in
Contact Person: Manish Tejwani Contact Person: Ankit Bhatia SEBI Registration Number: INM000003531 Investor Grievance ID:
SEBI Registration Number: INM0000010650 SEBI Registration Number: INM000012029 [email protected]
Contact Person: Shanti Gopalkrishnan
SEBI Registration Number: INR000004058
BID/ OFFER SCHEDULE
BID/ OFFER OPENS ON [●](1) BID/ OFFER CLOSES ON [●](2)
* OIJIF II is proposing to participate as a Selling Shareholder in the Offer for Sale. SBICAP has signed the due diligence certificate and has been disclosed as a BRLM for the Offer. OIJIF II and SBICAP are
associates in terms of the SEBI Merchant Bankers Regulations. Accordingly, in compliance with the proviso to Regulation 21A(1) of the SEBI Merchant Bankers Regulations read with Regulation 23(3) of the
SEBI ICDR Regulations, SBICAP would be involved only in the marketing of the Offer.
(1) Our Bank may, in consultation with the BRLMs, consider participation by Anchor Investors in accordance with the SEBI ICDR Regulations. The Anchor Investor Bid shall be one Working Day prior to
the Bid/ Offer Opening Date.
(2) Our Bank may, in consultation with the BRLMs, consider closing the Bid/ Offer Period for QIBs one Working Day prior to the Bid/ Offer Closing Date in accordance with the SEBI ICDR Regulations.
 TABLE OF CONTENTS

INDUSTRY OVERVIEW ......................................................................................................................................................... 1

SELECTED STATISTICAL INFORMATION ...................................................................................................................... 7
FINANCIAL STATEMENTS................................................................................................................................................. 22
OTHER MATERIAL UPDATES .......................................................................................................................................... 99
DECLARATION ................................................................................................................................................................... 100

(i)
 INDUSTRY OVERVIEW

All information in this section is sourced from the Report on Small Finance Banks and various loan products dated September
2022 (“CRISIL Research Report”), prepared by CRISIL Research (“CRISIL”), a division of CRISIL Limited, which was
commissioned and paid for by us for the purposes of the Offer and is available at the following weblink
https://www.capitalbank.co.in/investor-relations. The CRISIL Research Report is subject to the disclaimer set out in “Certain
Conventions, Presentation of Financial, Industry and Market Data and Currency of Presentation – Industry and Market Data”
on page 21 of the Draft Red Herring Prospectus. We officially engaged CRISIL for the purposes of commissioning the CRISIL
Research Report pursuant to an engagement letter dated August 16, 2021. Except as noted otherwise, all forward looking
statements, estimates and projections in this section are CRISIL’s forward looking statements, estimates and projections. Unless
otherwise indicated, all financial, operational, industry and other related information derived from the CRISIL Research Report
and included herein with respect to any particular year, refers to such information for the relevant year.

Peer benchmarking

Capital SFB already had its presence across the retail liability and asset side on account of operating as a local area bank before
converting to a small finance bank. As a result of the same, its retail franchise and reach had already been established across
the current and savings deposits as well as retail term deposits placing it in good stead as against other small finance banks. For
Capital SFB, the base is already present and further improvements on top of the same can help it grow faster.

In terms of the retail lending operations as well, Capital SFB is well diversified with product knowledge and experience across
various asset classes. In comparison, SFBs which are primarily focused on MFI lending, could find it more difficult to penetrate
into other products as the knowledge has to be built from scratch and the entire operational cost has to be borne to be set up
from base across asset classes. Thus, for Capital SFB the products, systems and processes are already in place since it had been
operating as a local area bank and is in a good position to scale up its operations across different geographies.

The below analysis is done on the reported numbers for fiscal 2022.

Capital SFB has the lowest cost of funds among SFB players

Capital SFB’s cost of funds at 5.22% was the lowest among all SFBs for fiscal 2022. AU SFB has the second lowest cost of
funds at 5.29% in fiscal 2022.

Capital SFB has the highest proportion of retail deposits and second highest proportion of CASA amongst the peers

At end of fiscal 2022, Capital SFB has highest proportion of retail deposits at 97.4% followed by Equitas SFB (89.4%) and
Fincare (82.2%). In terms of CASA deposits, Capital SFB has the second-best CASA ratio of 42.2%, only after Equitas SFB
with a CASA ratio of 52.0%.

Capital SFB has the highest proportion of deposit in overall borrowing amongst the peers despite offering lowest
interest rates

In terms of proportion of deposit in overall borrowings, Capital SFB has the highest proportion of deposit in overall borrowing
at 92.4% in fiscal 2022. It is followed by Ujjivan SFB at 91.2% in the same time frame. Capital SFB is the lowest interest
paying SFB where-in its rate of interest for retail term deposits inches up to only 6.60% whereas others offer a higher rate across
some of the tenors in retail deposits.

Capital SFB has the most granular deposit base as compared to other SFBs

At end of fiscal 2022, Capital SFB has most granular deposit base with concentration of top 20 depositors accounting to 4.73%
of overall deposits. It is followed by Jana SFB at 13.19% and Equitas SFB at 13.84%. This shows that Capital SFB has the
lowest concentration risk in terms of deposits.

Capital SFB has lowest cost of deposit as compared to other SFB

At end of fiscal 2022, Capital SFB has lowest cost of deposit (5.07%) followed by AU SFB (5.11%) and North East SFB
(5.64%).

99.70% of Capital SFBs AUM is secured

Capital SFB has highest proportion of secured lending as compared to other SFB players. Also, the collection efficiency at the
end of March 2022 is very high at 99%.

Capital SFB has the highest liquidity on its balance sheet

Capital SFB has the highest proportion cash and bank balances as a % of total assets on its balance sheet indicating that it has
1
low dependency on external funds or borrowing to cater to its short to medium term assets side needs and can deploy the excess
liquidity for growth in its loan book.

Lending details of SFBs as end-fiscal 2022

Liquidity – cash and bank balance

(%)
to total assets
AU SFB 8.6%
Equitas SFB 7.9%
Ujjivan SFB 9.2%
Jana SFB 7.6%
ESAF SFB 8.5%
Utkarsh SFB 12.4%
Fincare SFB 11.3%
Suryoday SFB 12.0%
Capital SFB 14.2%
North East SFB 4.3%
Note: Liquidity is calculated as cash and bank balances divided by total assets
Source: Company reports, CRISIL Research

Profitability of SFB players

Capital SFB has the second highest Return on Equity (RoE) and third highest Return on Assets (RoA) in fiscal 2022
amongst the peer set

In terms of RoE, AU SFB has the highest return on equity in fiscal 2022 at 16.56%. Capital Small Finance Bank has the next
highest RoE at 13.00% in fiscal 2022. In terms of Return on Assets, AU SFB has the highest RoA at 1.87% followed by Equitas
Small Finance Bank (1.09%) and Capital Small Finance Bank (0.93%) in fiscal 2022.

Capital SFB has the lowest OPEX (as % of average assets) among SFBs

Capital SFB has lowest operating cost of 2.90% (as a % of average assets) followed by AU SFB (4.00%) and Utkarsh SFB
(5.41%) in fiscal 2022.

Profitability of players in fiscal 2022

Yield Advanc NII Opex

Opex
on Cost of es to Gross Growth (% of Cost to
NIMs (% of RoE RoA
Players advanc funds Total Spread (%) average income
(%) average (%) (%)
es (%) Assets (%) (FY21- advanc (%)
assets)
(%) (%) 22) es)
AU SFB 12.10% 5.29% 66.73% 6.81% 5.36% 36.7% 4.00% 5.98% 57.07% 16.56% 1.87%
Equitas
17.33% 6.75% 71.88% 10.59% 7.89% 13.4% 6.60% 9.41% 66.12% 7.35% 1.09%
SFB
Ujjivan
16.73% 5.70% 69.07% 11.03% 8.07% 2.6% 6.80% 9.72% 71.68% -13.97% -1.89%
SFB
Jana 22.15%
7.58% 64.43% 14.57% 7.08% 10.0% 5.80% 9.25% 66.46% 0.46% 0.03%
SFB **
ESAF 19.59%
5.99% 65.72% 13.60% 7.64% 24.5% 5.74% 8.71% 63.69% 3.97% 0.36%
SFB **
Utkarsh
17.85% 6.92% 67.90% 10.92% 7.80% 26.4% 5.41% 7.98% 59.11% 4.18% 0.45%
SFB
Fincare
21.45% 7.07% 64.52% 14.38% 9.28% 25.0% 6.85% 10.49% 60.01% 0.80% 0.09%
SFBF
Suryoda
18.72% 6.31% 58.08% 12.40% 7.85% 42.4% 5.55% 9.46% 60.93% -6.00% -1.25%
y SFB
Capital
10.46% 5.22% 64.79% 5.24% 3.77% 28.5% 2.90% 4.69% 63.42% 13.00% 0.93%
SFB
North
East 17.65% 6.36% 69.18% 11.29% 8.33% 9.8% 6.16% 8.66% 68.85% -38.16% -5.34%
SFB
Note: * Cost of borrowing is calculated on total borrowings (borrowing + deposits), Credit costs is calculated as Provisions on average assets, Opex is
calculated as operating expense on average assets; Gross Spread is calculated as difference in yields and cost of funds, ** Total interest income is considered
for calculation, Source: Company reports, CRISIL Research

2
Capital SFB has lowest credit cost among SFBs

Capital SFB has lowest credit cost of 0.42% (as a % of average assets) and 0.69% (as a % of average advances) in fiscal 2022
followed by AU SFB which has credit cost of 0.60% and 0.89% respectively in fiscal 2022.

Profitability of SFB players for fiscal 2022

Credit Cost / Credit cost

Total income PPOP Provisioning Credit cost to average
PAT (in Rs Fee income to
Players (In Rs (In Rs. # to average advances
million) Total asset
million) Million) (In Rs. assets (%) (%)
Million)
AU SFB 69,160 18,150 3,610 11,300 0.9% 0.60% 0.89%
Equitas SFB 39,980 8,730 4,938 2,810 0.1% 1.91% 2.73%
Ujjivan SFB 31,260 5,910 11,408 -4,146 0.7% 5.19% 7.41%
Jana SFB 30,503 5,747 5,693 54 1.2% 2.90% 4.63%
ESAF SFB 21,475 4,919 4,180 547 0.5%* 2.78% 4.22%
Utkarsh SFB 20,336 5,093 4,132 615 0.4% 3.04% 4.48%
Fincare SFB 16,477 4,311 4,253 89 0.9% 4.51% 6.89%
Suryoday SFB 10,354 2,650 3,920 -930 0.7% 5.26% 8.98%
Capital SFB 6,324 1,132 287 626 0.6% 0.42% 0.69%
North east SFB 3,284 643 1,875 -1,232 0.5% 8.13% 11.42%
Note: Credit costs to average advances is calculated as Provisions on average advances, (*) Data as of fiscal 2021, (#) Provisions (other than tax) and
contingencies
Source: Company reports, CRISIL Research

Capital SFB has one of the best asset quality amongst peers

Capital SFB has GNPA of 2.5% and NNPA of 1.4% which is one of the lowest among SFB players in fiscal 2022. AU SFB
has the lowest GNPA of 2.0% and NNPA of 0.5% in fiscal 2022. Capital SFB has had the lowest write-offs amongst the players
on account of large proportion of loan book being secured. Also, Capital SFB has maintained highest liquidity ratio of 229.2%.
Capital SFB also has the lowest slippage ratio amongst the SFBs in fiscal 2022.

Non-performing asset of SFB players for fiscal 2022

Capital Write- Restructured

Provision Liquidity
Adequacy GNPA NNPA offs as a Slippage book as % of
Players Coverage Coverage
Ratio (%) (%) (%) % of loan ratio advances
Ratio (%) Ratio (%)
book
AU SFB 75.0% 125.0% 19.3% 2.0% 0.5% 0.4% 4.2% 2.5%
Equitas SFB 58.6% 134.0% 25.2% 4.1% 2.4% 1.9% 8.2% 9.2%
Ujjivan SFB 92.0% 152.0% 19.0% 7.1% 0.6% 4.8% 14.4% 5.2%
Jana SFB 32.2%** NA 15.3% 5.7% 3.9% 4.5% 11.2% 2.7%
ESAF SFB 49.9%** 132.4%* 18.6% 7.8% 3.9% 0.0%^ 7.2%^ 4.7%
Utkarsh SFB 63.6% 173.4% 21.6% 6.1% 2.3%^^ 2.1% 8.0% 1.3%
Fincare SFB 44.0% 206.0% 22.3% 7.8% 3.6% 0.6%^ 7.4%^ 5.3%
Suryoday SFB 49.2%** 223.0%* 37.9% 11.8% 6.0% 4.9% 13.5% 10.7%
Capital SFB 46.0% 229.2% 18.6% 2.5% 1.4% 0.0% 2.1% 2.90%
North east SFB 79.4% 147.0% 10.9% 11.7%*** NA 4.9% 5.9% NA
Note: ** Provision coverage ratio is calculated as (GNPA-NNPA)/ GNPA; ^ Data is as of March 2021; * Data is as of December 2021; *** As of December
2021, ^^ Includes contingency provision of Rs. 65 crore (0.6% of advances), Restructured book as % of advances calculated as restructured book divided by
advances, NA – Not Available, Source: Company reports, CRISIL Research

Capital SFB has the second highest retail deposits per branch and 2 nd highest outstanding advances per branch

Capital SFB has Rs 287.9 million of outstanding advances per branch which is 2 nd highest among SFB players behind only AU
SFB which has outstanding advances per branch of Rs 501.6 million as of fiscal 2022.

In terms of retail deposits per branch, Capital SFB has the second highest value of Rs 365.7 million in fiscal 2022. AU SFB has
the highest retail deposit per branch of Rs. 380.1 million as of fiscal 2022. Capital SFB has the 2 nd highest total business per
branch worth Rs 653.5 million behind only AU SFB having total business of Rs 881.7 million per branch as of fiscal 2022.

Per branch comparison (FY22)

Banking outlets Revenue Outstanding Retail CASA Total

Opex per
(Rs Million) (***) per advances per deposit per deposits per business per
branch
(FY22) branch branch branch branch branch
AU SFB 919 75.3 501.6 380.1 211.7 26.3 881.7

3
 Equitas SFB 869 46.0 222.9 195.0 113.4 19.6 418.0
Ujjivan SFB 575 54.4 283.5 172.5 86.8 26.0 456.1
Jana SFB 700 43.6 185.8 NA NA 16.3 NA
ESAF SFB 555$ 38.7^ 209.7^ 159.1* 31.6* 15.5^ 209.7^
Utkarsh SFB 686 29.6 149.1 87.6 32.8 10.7 149.1
Fincare SFB 919 17.9 76.6 57.7 NA 7.0 76.6
Suryoday SFB 565 18.3 84.1 53.2 12.8 7.3 137.3
Capital SFB 161 39.3 287.9 365.7 158.3 12.2 653.5
North East SFB 216^^ 15.2** 75.3** NA NA 6.6** NA
Note: (*) Data for fiscal 2021, (**) Branches as of 28th February 2022, (***) Banking outlets including bank branches, ultra-small branches and asset centres
as reported by the players, $ Data as of December 2021, For calculating total business per branch, advances + retail deposits have been used (^) Branches
as of December 2021, ^^As of 28th February 2022, Source: Company reports, CRISIL Research

Capital SFB has the highest retail deposits and total business per employee as well as outstanding advances per employee

Capital SFB has retail deposits worth Rs 35.8 million per employee which is the highest amongst the considered peer set as of
fiscal 2022. It is also highest in terms of total business per employee with Rs 64.0 million. Capital SFB is 2 nd highest in terms
of income per employee with Rs. 3.8 million revenue per employee behind only ESAF SFB which has Rs. 4.6 million revenue
per employee. It is the highest in terms of outstanding advances per employee with Rs 28.2 million advances per employee in
fiscal 2022.

Per employee comparison (FY22)

Outstanding
Income per Retail deposit Total business
(Rs Million) No. of employees advances per
employee per employee per employee
employee
AU SFB 27,817 2.5 16.6 12.6 29.1
Equitas SFB 17,607 2.3 11.0 9.6 20.6
Ujjivan SFB 16,895 1.9 9.6 5.9 15.5
Jana SFB 16,768^ 1.8^ 7.8^ NA NA
ESAF SFB 3,803* 4.6* 21.5* 23.1* 44.6*
Utkarsh SFB 12,617 1.6 8.1 4.8 12.9
Fincare SFB 11,733 1.4 6.0 4.5 10.5
Suryoday SFB 5,252 2.0 9.0 5.7 14.8
Capital SFB 1,644 3.8 28.2 35.8 64.0
North East SFB 2,025* 1.6* 8.2* NA NA
(^) Employees Data as of 28th February 2021, (*) Data as of fiscal 2021,
Source: Company reports, CRISIL Research

Product mix

Capital SFB has the most diversified portfolio among peers, with book size in multiple asset classes as of fiscal 2022. Most of
the SFBs are pure MFI turned SFB, and hence still have a huge concentration in MFI products whereas Capital SFB has about
23% of portfolio concentration towards MSME whereas Agriculture accounts for 38% of portfolio and 24% of portfolio
accounts for Mortgages and 15% accounts for consumer lending and NBFC lending.

Product mix of all SFBs and banks (as of end-fiscal 2022)

Micro Vehicle/Auto Mortgage MSME Large & mid-

Gold loans Agriculture Others
Finance Loans loans Finance corporate loans
AU SFB - 36% 6% 35% 17% - - 6%
Equitas SFB 19% 25% - 52% 4% - - 1%
Ujjivan SFB 67% - 15% 9% - - - 9%
ESAF SFB* 85% - - - 5% - - 10%
Utkarsh SFB 75% 2% 3% 8% 9% - - 3%
Fincare SFB 76% - 12% - - 6% - 6%
Suryoday SFB 67% 7% 9% 5% - - 13%
Capital SFB - - 24% 23% - - 38% 15%
Note: * Data is as of March 2021
Source: Company reports, CRISIL Research

Geography Mix of SFBs

Capital SFB has focused more in rural and semi-urban areas

North east SFB has highest branch concentration towards Rural and Semi-urban areas followed by Capital SFB. Also, both the
SFB’s have very minimal presence/No presence in Metropolitan areas.

4
Region-wise functioning offices (FY22)

Rural Semi-urban Urban Metropolitan

AU SFB 12% 37% 27% 24%
Equitas SFB 10% 34% 33% 23%
Ujjivan SFB 21% 27% 30% 21%
Jana SFB 17% 13% 33% 37%
ESAF SFB 12% 57% 19% 12%
Utkarsh SFB 26% 36% 21% 17%
Fincare SFB 12% 58% 22% 8%
Suryoday SFB 23% 36% 21% 19%
Capital SFB 43% 30% 21% 5%
North East SFB 51% 38% 11% 0%
Source: RBI, CRISIL Research

Comparison of Capital SFB with private banks in India

Capital SFB has the fifth highest growth in deposit in comparison with private sector banks

Bandhan bank has the highest growth in deposits at 30% between fiscal 2020 to fiscal 2022. Capital SFB has 97% retail deposits,
which is the second best amongst all private sector banks for whom data is available. Capital SFB, despite being an SFB has
CASA ratio which is similar to some of the leading private sector banks like HDFC Bank, Axis Bank, ICICI Bank.

Private Players comparison

Interest rate Highest

Total Growth in
Retail Deposit offered on Interest rate
(Rs Billion) Deposits- deposits CASA (%)
(%) Savings offered on
FY22 (FY20-FY22)
Account*** retail TD**
HDFC Bank 15,592 17% 48.20% 81% 3.00% 6.10%
ICICI Bank 10,646 18% 48.70% NA 3.00% 6.10%
Axis Bank 8,217 15% 45.00% 80% 3.00% 5.75%
Kotak Mahindra Bank 3,101 9% 60.99% 89% 3.50% 5.90%
IndusInd Bank 2,937 21% 42.70% NA 3.50%^ 6.75%
IDBI Bank 2,331 2% 56.77% 95% 3.00% 5.80%
Federal Bank 1,817 9% 36.94% 94% 2.40% 6.10%
Jammu & Kashmir Bank 1,147 8% 56.55% NA 2.90% 5.55%
IDFC First Bank 1,056 27% 48.44% 64% 4.00%^ 5.90%
South Indian Bank 891 4% 33.21% 96% 2.50%^ 5.85%
Bandhan Bank 963 30% 41.61% 77% 3.00%^ 7.00%
Karnataka Bank 804 6% 32.97% 100% 2.75%^ 5.70%
RBL Bank 790 17% 35.29% 39% 4.25%^ 6.75%
Karur Vysya Bank 687 8% 34.81% NA 2.25%^ 6.35%
City Union Bank 477 8% 32.56% NA 3.00%^ 5.55%
DCB Bank 347 7% 26.75% 72% 2.25%^ 6.60%
CSB Bank 202 13% 33.66% 0% 2.10%^ 6.00%
Nainital Bank 75 -1% NA NA 2.85% 5.75%
Capital SFB 60 17% 42.16% 97% 3.50%^ 6.60%
**Highest rate of interest on TD is considered for all time periods, *** Interest Rate for Savings Account with balance up to Rs. 50 lakhs as of August 2022, ^
Interest Rate for Savings Account with balance up to Rs. 1 lakh as of August 2022
Source: Company reports, CRISIL Research

In comparison with private banks, Capital SFB has one of the best levels of write-off as a % of loan book

In fiscal 2022, HDFC bank has lowest GNPA of 1.2% followed by CSB Bank which has GNPA of 1.8%. Also, Capital SFB
has very low write-offs in fiscal 2022 which is 0.0% of loan book, one of the lowest compared to all the private sectors banks.

NPA of Private banks

(Rs Billion) GNPA (%) Write-offs as a % of loan book

Axis Bank 2.8% 0.0%
Bandhan Bank 6.5% 1.2%
City Union Bank 4.7% 1.5%
CSB Bank 1.8% 0.6%
DCB Bank 4.3% 0.3%
Federal Bank 2.8% 0.6%
HDFC Bank 1.2% 0.7%
ICICI Bank 3.6% 1.2%

5
 IDBI Bank 19.1% 2.0%
IDFC First Bank 2.6% 3.6%
IndusInd Bank 2.3% 1.8%
Jammu & Kashmir Bank 5.3% 1.1%
Karnataka Bank 3.9% 0.1%
Karur Vysya Bank 6.0% 1.5%
Kotak Mahindra Bank 2.3% 0.4%
Nainital Bank 12.1% 3.1%
RBL Bank 4.4% 0.8%
South Indian Bank 5.9% 1.1%
Capital SFB 2.5% 0.0%
Source: Company reports, CRISIL Research

As per the CRISIL Research analysis, it seems that the SFBs already having experience with the products across asset and
liability side are better off in comparison to others on account of accumulated knowledge, systems and can going ahead focus
on expansion with removal of geographical barriers. Additionally, a lot of these banks have increasingly invested in digital
initiatives like digital only savings accounts and fixed deposits on DIY models with digital KYC, virtual RMs, phygital model
for asset side products, etc. These products or suites became more relevant in the pandemic helping the SFBs reduce physical
touch points. Usage of analytics for cross sell, appraisal, penetration of various products etc. are some additional digital
initiatives finding use amongst these banks and have significantly helped them bring down costs and enhance the offering to
their customers.

The presence of digital ID and the proliferation of mobile phones in addition to the foray of world class payment systems in the
country have been utilised extensively by the SFBs either through in-house development or with tie-ups with third party fintechs
etc. Many of these banks have digital transactions to the tune of more than ~50% of their overall transactions and are further
seeing them rise.

List of formulae

Parameters Formula
RoA Profit after tax / average of total assets on book
RoE Profit after tax / average net worth
NIM (Interest income – interest paid) / average of total assets on book
Cost to income Operating expenses / (net interest income + other income)
Cost of funds Interest paid / (average of deposits and borrowings)
Non-interest income (Total income – interest income)/ average of total assets on book
PPOP Total Income – Interest Expense – Operating expense
Credit cost Provisions / average of total assets on book
Credit to Deposit Ratio Advances / Deposit
Fee income to Total asset Fee Income / Average total assets
Slippage Ratio Additions to Gross NPAs during the year / advances of previous year (at beginning of the year)

6
 SELECTED STATISTICAL INFORMATION

The following information is included for analytical purposes. Certain non-GAAP financial measures and certain other
statistical information relating to our operations and financial performance have been included in this section. We compute
and disclose such non-GAAP financial measures and such other statistical information relating to our operations and financial
performance as we consider such information to be useful measures of our business and financial performance, and because
such measures are frequently used by securities analysts, investors and others to evaluate the operational performance of
financial services businesses, many of which provide such non-GAAP financial measures and other statistical and operational
information when reporting their financial results. Such non -GAAP measures and other statistical and operational information
are not measures of operating performance or liquidity defined by generally accepted accounting principles. These non-GAAP
financial measures and other statistical and other information relating to our operations and financial performance may not
be computed on the basis of any standard methodology that is applicable across the industry and therefore may not be
comparable to financial measures and statistical information of similar nomenclature that may be computed and presented by
other banks in India or elsewhere.

Average Balance Sheet, Interest Earned/Expended and Yield/Cost

The tables below present the average balances for interest-earning assets and interest-bearing liabilities of our Bank together
with the related interest income and expense amounts, resulting in the presentation of the average yields and cost for each
period. The average yield on average assets is the ratio of interest income to average interest-earning assets. The average cost
on average interest-bearing liabilities is the ratio of interest expense to average interest-bearing liabilities.

(₹ in million, except percentages)

As at and for the
Quarter ended June 30, 2022 Quarter ended June 30, 2021
Average Balance Interest Yield/ Average Interest Yield/
[A] Earned/ Cost (%) Balance Earned/ Cost (%)
Expended [C = B/A] [A] Expended [C = B/A]
[B] [B]
Interest-earning assets:
Advances 45,913.50 1,171.26 10.20% 36,375.60 1,001.53 11.01%
Investments 13,874.40 236.23 6.81% 11,829.40 208.92 7.06%
Interbank placement 6,287.00 99.35 6.32% 6,644.60 106.27 6.40%
Others 1,607.80 17.99 4.48% 5,460.60 47.64 3.49%
Total interest earning assets 67,682.70 1,524.83 9.01% 60,310.20 1,364.36 9.05%
Non-interest-earning assets:
Fixed assets 856.11 - - 863.80 - -
Other assets 3,391.89 - - 3,086.00 - -
Total non-interest-earning assets 4,248.00 - - 3,949.80 - -
Total assets 71,930.70 - - 64,260.00 - -
Interest-bearing liabilities:
CASA 26,080.98 209.09 3.21% 21,953.01 181.72 3.31%
Term Deposits 34,898.33 524.89 6.02% 31,844.89 513.62 6.45%
Total Deposits 60,979.30 733.98 4.81% 53,797.90 695.34 5.17%
Borrowings 5,231.40 92.24 7.05% 5,358.20 98.53 7.36%
Total interest-bearing liabilities 66,210.70 826.22 4.99% 59,156.10 793.87 5.37%
Non-interest-bearing liabilities:
Capital and reserves 5,331.84 - - 4,602.10 - -
Other liabilities 388.16 - - 501.80 - -
Total non-interest-bearing liabilities 5,720.00 - - 5,103.90 - -
Total liabilities 71,930.70 - - 64,260.00 - -

(₹ in million, except percentages)

As at and for the
Year ended March 31, 2022 Year ended March 31, 2021 Year ended March 31, 2020
Average Interest Yield/ Average Interest Yield/ Average Interest Yield/
Balance Earned/ Cost (%) Balance Earned/ Cost (%) Balance Earned/ Cost (%)
[A] Expended [C = B/A] [A] Expended [C = B/A] [A] Expended [C = B/A]
[B] [B] [B]
Interest-earning assets:
Advances 40,139.30 4,373.02 10.89% 33,090.00 3,724.31 11.26% 28,587.70 3,306.60 11.57%
Investments 12,401.70 860.23 6.94% 12,268.80 846.81 6.90% 10,085.00 729.05 7.23%
Interbank placement 6,183.10 387.1 6.26% 5,738.20 423.25 7.38% 5,529.60 499.96 9.04%
Others 4,532.20 161.83 3.57% 3,482.70 120.02 3.45% 950.40 45.74 4.81%
Total interest earning 63,256.30 5,782.18 9.14% 54,579.70 5,114.39 9.37% 45,152.70 4,581.35 10.15%
assets
Non-interest-earning assets:
Fixed assets 845.16 - - 888.90 - - 897.17 - -
Other assets 3,472.34 - - 2,975.60 - - 2,930.53 - -

7
 As at and for the
Year ended March 31, 2022 Year ended March 31, 2021 Year ended March 31, 2020
Average Interest Yield/ Average Interest Yield/ Average Interest Yield/
Balance Earned/ Cost (%) Balance Earned/ Cost (%) Balance Earned/ Cost (%)
[A] Expended [C = B/A] [A] Expended [C = B/A] [A] Expended [C = B/A]
[B] [B] [B]
Total non-interest- 4,317.50 - - 3,864.50 - - 3,827.70 - -
earning assets
Total assets 67,573.80 - - 58,444.20 - - 48,980.40 - -
Interest-bearing liabilities:
CASA 23,611.93 764.51 3.24% 19,012.50 660.58 3.47% 15,630.09 554.53 3.55%
Term Deposits 33,219.67 2,089.70 6.29% 30,002.80 2,122.56 7.07% 25,966.91 1,983.86 7.64%
Total Deposits 56,831.60 2,854.21 5.02% 49,015.30 2,783.14 5.68% 41,597.00 2,538.39 6.10%
Borrowings 5,292.20 375.15 7.09% 4,603.50 345.14 7.50% 3,707.40 316.73 8.54%
Total interest-bearing 62,123.80 3,229.36 5.20% 53,618.80 3,128.28 5.83% 45,304.40 2,855.12 6.30%
liabilities
Non-interest-bearing liabilities:
Capital and reserves 4,827.37 - - 4,258.38 - - 3,329.43 - -
Other liabilities 622.63 - - 567.02 - - 346.57 - -
Total non-interest- 5,450.00 - - 4,825.40 - - 3,676.00 - -
bearing liabilities
Total liabilities 67,573.80 - - 58,444.20 - - 48,980.40 - -
Notes:
1. Average balances of all interest earning assets and interest bearing liabilities represent average of daily outstanding balances.
2. Average for non-interest earning assets and non-interest bearing liabilities represent average of month end outstanding balances for the given period.
3. Interest earned on advances includes interest on advances net of NPAs interest reversals. Interest earned on investments includes interest earned on
government securities, treasury bills, cash management bill, bonds and other securities. Interest earned on interbank placements include interest on
interbank deposits and interest earned on others include interest earned on money at call and short notice, reverse repo and others.
4. Interest expended comprises interest expended on deposits and borrowings.
5. Yield/Cost is calculated as interest earned/expended divided by the average balance.
6. Borrowings include borrowing from the other banks & institutions, refinance from SIDBI & NABARD and Tier II debt instruments.
7. CASA includes outstanding balances of current deposits and saving deposits as at the end of the periods
8. Other assets include cash in hand, balance with the Reserve Bank of India in current account, balances with banks in current accounts and other non-
interest earning assets.
9. Other liabilities include bills payable, interest accrued on deposits, provision on NPAs and standard assets and other non-interest bearing liabilities.

Analysis of Changes in Interest Earned and Interest Expended by Volume and Rate

The following tables set forth the analysis of the changes in our Bank’s interest earned and interest expended between average
volume and changes in rates.
(₹ in million, except percentages)
Year ended March 31, 2022 vs Year ended March 31, 2021
Net Changes in Interest Change in Average Volume Change in Average Rate
Interest earned:
Advances 648.71 767.99 (119.28)
Investments 13.42 9.22 4.20
Interbank placements (36.15) 27.85 (64.00)
Others 41.81 37.47 4.34
Total interest earned [A] 667.79 842.54 (174.75)
Interest expended:
Deposits 71.07 392.55 (321.48)
Borrowings 30.01 48.82 (18.81)
Total interest expended [B] 101.08 441.37 (340.29)
Net Interest Income [A-B] 566.71 401.17 165.54

Year ended March 31, 2021 vs Year ended March 31, 2020
Net Changes in Interest Change in Average Volume Change in Average Rate
Interest earned:
Advances 417.71 506.74 (89.03)
Investments 117.76 150.73 (32.97)
Interbank placements (76.71) 15.39 (92.10)
Others 74.27 87.26 12.99
Total interest earned [A] 533.03 760.12 (227.09)
Interest expended:
Deposits 244.75 421.22 (176.47)
Borrowings 28.41 67.18 (38.77)
Total interest expended [B] 273.16 488.40 (215.24)
Net Interest Income [A-B] 259.87 271.72 (11.84)
Notes:
1. The changes in interest earned, interest expended and Net Interest Income between the periods have been reflected as attributed either to volume or rate
changes. For purposes of this table, changes that are due to both volume and rates have been allocated solely to changes in rate.
2. Change in average volume is computed as the increase in average balances for the year multiplied by yield/cost for Fiscal 2022 and Fiscal 2021, as the
case may be.

8
3. Change in average rate represents the average balance for Fiscal 2022 and Fiscal 2021, as the case may be, multiplied by change in rates during the
respective year during the relevant year.
4. Other includes interest earned and money at call at short notice, reverse repo etc.

Yields, Interest Spread, Cost of Funds and Net Interest Margin

The following tables set forth, for the periods indicated, the yields, spreads and interest margins on the Bank's interest-earning
assets. Unless otherwise indicated average balances are the averages for the period
(₹ in million, except percentages)
Quarter ended Quarter ended
June 30, 2022 June 30, 2021
Interest earned(1) [A] 1,524.83 1,364.36
Of which:
Interest/discount earned on advances/bills [B] 1,171.26 1,001.53
Interest expended(2) [C] 826.22 793.87
Of which:
Interest expended on Deposits[D] 733.98 695.34
Net Interest Income [E =A-C] 698.61 570.49
Average Interest-Earning Advances(3) [F] 45,913.5 36,375.60
Average Total Interest-Earning Assets(4) [G] 67,682.70 60,310.20
Average Total Assets [H] 71,930.70 64,260.00
Average total Deposits [I] 60,979.30 53,797.90
Average Total Interest-Bearing Liabilities(5) [J] 66,210.70 59,156.10
Average Total Interest-Earning Assets as a percentage of Average Total Interest-Bearing
102.22% 101.95%
Liabilities [K = G/J]
Average Interest-Earning Advances as a percentage of Average Total Assets [L = F/H] 63.83% 56.61%
Average Total Interest-Earning Assets as a percentage of Average Total Assets [M = G/H] 94.09% 93.85%
Average Total Interest-Bearing Liabilities as a percentage of Average Total Assets [N =
92.05% 92.06%
J/H]
Yield on Average Total Interest-Earning Assets [O = A/G] 9.01% 9.05%
Yield on Average Interest-Earning Advances [P = B/F] 10.20% 11.01%
Cost of deposit[Q=D/I] 4.81% 5.17%
Interest spread[R=P-Q] 5.39% 5.84%
Net Interest Margin (%) [R = E/H] 3.88% 3.55%
Cost of funds(6) 4.99% 5.37%
Notes:
1. Interest earned includes interest earned on Advances, investments and others.
2. Interest expended includes interest expended on deposits and borrowings.
3. Average interest earnings advances represent average of daily balances of advances for the period.
4. Average total interest earning assets include average balances of advances, Investments and other interest earning assets.
5. Average interest-bearing liabilities includes average of daily balances of deposits and borrowings.
6. Cost of fund is interest expanded on average interest-bearing liabilities.
(₹ in million, except percentages)
Year ended Year ended Year ended
March 31, 2022 March 31, March 31,
2021 2020
Interest earned(1) [A] 5,782.18 5,114.39 4,581.35
Of which:
Interest/discount earned on advances/bills [B] 4,373.02 3,724.31 3,306.60
Interest expended(2) [C] 3,229.36 3,128.28 2,855.12
Of which:
Interest expended on Deposits[D] 2,854.21 2,783.14 2,538.39
Net Interest Income [E =A-C] 2,552.82 1,986.11 1,726.23
Average Interest-Earning Advances(3) [F] 40,139.30 33,090.00 28,587.70
Average Total Interest-Earning Assets(4) [G] 63,256.30 54,579.70 45,152.70
Average Total Assets [H] 67,573.80 58,444.20 48,980.40
Average total Deposits [I] 56,831.60 49,015.30 41,597.00
Average Total Interest-Bearing Liabilities(5) [J] 62,123.80 53,618.80 45,304.40
Average Total Interest-Earning Assets as a percentage of Average Total Interest-
101.82% 101.79% 99.67%
Bearing Liabilities [K = G/J]
Average Interest-Earning Advances as a percentage of Average Total Assets [L =
59.40% 56.62% 58.37%
F/H]
Average Total Interest-Earning Assets as a percentage of Average Total Assets [M =
93.61% 93.39% 92.19%
G/H]
Average Total Interest-Bearing Liabilities as a percentage of Average Total Assets [N
91.93% 91.74% 92.49%
= J/H]
Yield on Average Total Interest-Earning Assets [O = A/G] 9.14% 9.37% 10.15%
Yield on Average Interest-Earning Advances [P = B/F] 10.89% 11.26% 11.57%
Cost of deposit[Q=D/I] 5.02% 5.68% 6.10%
Interest spread[R=P-Q] 5.87% 5.58% 5.47%
Net Interest Margin [R = E/H] 3.78% 3.40% 3.52%
Cost of funds 5.20% 5.83% 6.30%

9
Notes:
1. Interest earned includes interest earned on Advances, investments and others.
2. Interest expended includes interest expended on deposits and borrowings.
3. Average interest earnings advances represent average of daily balances of advances for the period.
4. Average total interest earning assets include average balances of advances, Investments and other interest earning assets.
5. Average interest-bearing liabilities includes average of daily balances of deposits and borrowings.
6. Cost of fund is interest expanded on average interest-bearing liabilities.

Financial Ratios of our Bank

I. Ratios on Average total assets:

The following tables set forth important ratios of the Bank on average total assets for the periods indicated

For the Quarter For the Quarter For the Year ended For the Year ended For the Year ended
ended June 30, ended June 30, March 31, 2022 March 31, 2021 March 31, 2020
2022 2021

Interest Spread(1) 5.39% 5.84% 5.87% 5.58% 5.47%

Net Interest Margin(2) 3.88% 3.55% 3.78% 3.40% 3.52%
Non-interest Income(3) 0.58% 0.68% 0.80% 0.78% 0.88%
Net total Income(4) 4.46% 4.23% 4.58% 4.18% 4.40%
Operative expenses(5) 2.87% 2.83% 2.90% 2.96% 3.33%
Operating margin(6) 1.59% 1.40% 1.68% 1.22% 1.07%
Credit Cost(7) 0.24% 0.40% 0.43% 0.30% 0.36%
ROA(8) 1.02% 0.76% 0.93% 0.70% 0.52%
Notes:
1. Interest spread is the difference of yield on advances and cost ofdeposits.
2. Net interest margin is the difference of interest earned and interest expended divided by the average total assets.
3. It is ratio of non-interest income to average total assets. Non-interest income includes income from insurance, commission income, profits on sale of
investments, fees received from PSLC sale and other miscellaneous income.
4. Net total income ratios is total of net interest and non-interest income.
5. It is ratios of total operating expense other than interest expended to average total assets.
6. Operating margin is difference between net total income and operating expense ratios.
7. It is ratio of total provisions created for advances to average total assets. Provision includes provision created during the period for NPAs and standard
advances.
8. ROA represents ratios of profit after tax to average total assets.

II. Other Key ratios:

The following tables set forth certain key financial indicators of the bank for the periods indicated:

For the Quarter For the Quarter For the Year For the Year For the Year
ended June 30, ended June 30, ended March 31, ended March 31, ended March 31,
2022 2021 2022 2021 2020
Cost to income ratio(1) 64.37% 66.79% 63.42% 70.75% 75.77%
Operating expense to average 2.87% 2.83% 2.90% 2.96% 3.33%
total assets(2)
RO AUM(3) 1.59% 1.34 % 1.56% 1.23% 0.89%
ROE(4) 13.89% 10.65% 12.95% 9.51% 7.73%
Dividend pay-out ratio(5) - - 5.47% 6.67% -
CD Ratio(6) 76.68% 67.13% 77.55% 72.07% 74.79%
Deposit to advances ratio(7) 130.41% 148.96% 128.96% 138.75% 133.71%
CASA to total deposit ratio(8) 43.14% 40.48% 42.16% 40.07% 36.31%
Retail Term Deposit to Total 96.62% 94.72% 95.45% 95.99% 89.00%
term deposit ratio(9)
LCR(10) 210.31% 381.14% 229.19% 441.49% 357.57%
Notes:
1. Cost to income ratio is calculated as a ratio of operating expenses divided by total operating income (total of net interest income and non-interest
income).
2. It represents ratios of total operating expense other than interest expended to average total assets.
3. RO AUM is ratio of Profit after tax to average advances. Average advances is average of daily balances of advances.
4. ROE is ratio of profit after tax to average net worth. Average net worth is average of opening and closing balances of Capital plus reserves and surplus.
5. Dividend pay-out ratio is the ratio of dividend to adjusted net profit (after dividend tax).
6. Credit to deposit ratio is calculated as a ratio of total advances to total deposits as at end of the period.
7. Deposit to advances ratio represents ratio of total deposits to total advances as at end of period.
8. CASA includes outstanding balances of current deposits and saving deposit as at the end of the periods. To derive ratio, total CASA is divided by total
deposits.
9. Retail term deposit excludes bulk deposit and interbank term deposit. Bulk deposit includes deposit of ₹ 20 mn and above.
10. LCR is the ratio of unencumbered High Quality Liquid Assets(HQLA) to Estimated Net Cash Outflows over the next 30 calendar days. The data is based
on quarterly average.

10
Source of Funding

Our Bank’s funding operations are designed to ensure stability, low cost of funding and effective liquidity management. Our
Bank’s primary source of funds is retail deposits. Below table sets forth the information of our Bank’s various sources of
funding:

As at June 30, 2022 As at June 30, 2021 As at March 31, As at March 31, As at March 31,
2022 2021 2020
Amount % of Amount % of Amount % of Amount % of Amount % of
(₹ in total (₹ in total (₹ in total (₹ in total (₹ in total
million) liabilities million) liabilities million) liabilities million) liabilities million) liabilities
CASA 26,583.42 36.12% 22,194.46 33.80% 25,494.01 35.64% 20,926.34 32.85% 16,146.74 30.29%
Time Deposit 35,039.53 47.61% 32,634.57 49.70% 34,969.58 48.88% 31,284.36 49.10% 28,319.49 53.13%
Total deposits 61,622.95 83.72% 54,829.03 83.51% 60,463.59 84.52% 52,210.70 81.95% 44,466.23 83.43%
Total borrowings 5,648.10 7.67% 5,424.4 8.26% 4,984.30 6.97% 6,167.2 9.68% 4,209.2 7.90%
Shareholders’ 5,362.19 7.29% 4,642.03 7.07% 5,157.81 7.21% 4,507.90 7.08% 4,067.80 7.63%
funds
Other liabilities 969.18 1.32% 763.03 1.16% 933.51 1.30% 826.58 1.30% 555.54 1.04%
and provisions
Total liabilities 73,602.41 100.00% 65,658.49 100.00% 71,539.21 100.00% 63,712.38 100.00% 53,298.77 100.00%

Deposits

The following tables set forth, for the periods indicated, our Bank’s deposits and the percentage composition by each category
of deposits.

As at June 30, 2022 As at June 30, 2021 As at March 31, 2022 As at March 31, 2021 As at March 31, 2020
Amount % of total Amount % of total Amount % of total Amount % of total Amount % of
(₹ in deposits (₹ in deposits (₹ in deposits (₹ in deposits (₹ in total
million) million) million) million) million) deposits
Demand 2,205.72 3.58% 2,036.15 3.71% 2,328.98 3.85% 2,072.66 3.96% 1,333.17 3.00%
Deposits
Saving 24,377.70 39.56% 20,158.31 36.77% 23,165.03 38.31% 18,853.68 36.11% 14,813.57 33.31%
Deposits
Term 35,039.53 56.86% 32,634.57 59.52% 34,969.58 57.84% 31,284.36 59.93% 28,319.49 63.69%
Deposits
Total 61,622.95 100.00% 54,829.03 100.00% 60,463.59 100.00% 52,210.70 100.00% 44,466.23 100.00%
Deposits

Retail, Bulk, Institutional and NRI Deposits

The details of Retail Deposits and Bulk Deposits are as set forth below:

As at June 30, 2022 As at June 30, 2021

As at March 31, As at March 31, 2021 As at March 31,
2022 2020
Amount % of Amount % of Amount % of Amount % of Amount % of
(₹ in total (₹ in total (₹ in total (₹ in total (₹ in total
million) deposits million) deposits million) deposits million) deposits million) deposits
CASA [A=B+C] 26,583.42 43.14% 22,194.46 40.48% 25,494.01 42.16% 20,926.34 40.07% 16,146.74 36.31%
CASA from domestic 24,848.05 40.32% 20,703.75 37.76% 23,872.76 39.48% 19,514.42 37.38% 14,853.01 33.40%
clients [B]
CASA from NRI 1,735.37 2.82% 1,490.71 2.72% 1,621.25 2.68% 1,411.92 2.70% 1,293.73 2.91%
clients[C]
Term 35,039.53 56.86% 32,634.57 59.52% 34,969.58 57.84% 31,284.36 59.93% 28,319.49 63.69%
deposits[D=E+F+G+H]
Retail Domestic Term 30,071.50 48.80% 27,253.24 49.71% 29,601.59 48.96 % 26,375.19 50.52% 21,786.72 49.00%
Deposits[E]
Bulk Term 686.65 1.11% 882.46 1.61% 759.99 1.26% 689.34 1.32% 1,391.64 3.13%
Deposits[F]*
Interbank Term 434.75 0.71% 840.57 1.53% 809.36 1.34% 565.45 1.08% 1,722.67 3.87%
Deposits[G]
NRI Term deposits[H] 3,846.63 6.24% 3,658.30 6.67% 3,798.64 6.28% 3,654.38 7.00% 3,418.46 7.69%
Total 61,622.95 100% 54,829.03 100% 60,463.59 100% 52,210.70 100% 44,466.23 100%
Deposits[I=A+D]
Bulk deposits (I) 1,184.24 1.92% 1,723.09 3.14% 1,590.50 2.63% 1,254.84 2.40% 3,114.31 7.00%
Retail deposits (II) 60438.71 98.08% 53,105.94 96.86% 58873.09 97.37% 50,955.86 97.60% 41,351.92 93.00%
Total deposits (I+II) 61,622.95 100% 54,829.03 100% 60,463.59 100% 52,210.70 100% 44,466.23 100%

*excludes Interbank Term Deposits and NRI Term Deposits having balance of ₹20 million and above as at the date

Notes:

11
1. Bulk deposits include term deposits account having balance of ₹20 million and above as at the date.
2. Retail deposits includes deposit other than bulk deposit
3. Interbank Term deposits include term deposits from other banks.
4. NRI deposits includes deposits from non-resident clients.

Deposits Based on Category of Branches

The following table sets forth, as at the dates indicated, deposits and the percentage composition by location of Branches

As at June 30, 2022 As at June 30, 2021 As at March 31, 2022 As at March 31, As at March 31,
2021 2020
Amount % of total Amount % of Amount % of Amount % of Amount % of
(₹ in deposits (₹ in total (₹ in total (₹ in total (₹ in total
million) million) deposits million) deposits million) deposits million) deposits
Metropolitan 2,832.38 4.60% 2,560.14 4.67% 3,209.90 5.31% 2,680.66 5.13% 2,556.45 5.75%
Urban 9,810.23 15.92% 9,071.24 16.54% 10,103.65 16.71% 8,535.78 16.35% 8,188.67 18.42%
Semi Urban 25,216.32 40.92% 22,347.55 40.76% 24,189.07 40.01% 21,382.45 40.95% 17,928.36 40.32%
Rural 23,764.02 38.56% 20,850.09 38.03% 22,960.97 37.97% 19,611.82 37.56% 15,792.75 35.52%
Total
Deposits 61,622.95 100.00% 54,829.03 100.00% 60,463.59 100.00% 52,210.70 100.00% 44,466.23 100.00%

Ticket size wise breakup

Following table sets forth the average ticket size of deposits:

(Amount in ₹)
Quarter ended Quarter ended Year ended March Year ended March Year ended March
June 30, 2022 June 30, 2021 31, 2022 31, 2021 31, 2020
Demand Deposits 1,17,413 1,13,840 1,27,945 1,17,831 89,486
Saving Deposits 42,216 38,410 40,881 37,079 32,499
Time Deposits 3,60,341 3,40,085 3,60,947 3,34,882 3,38,014
Total Deposits 88,860 85,850 88,691 84,283 80,192
Note:
1. For calculating ticket size deposit outstanding as at end of period is divided by number of accounts in that category.

Average Deposits, Interest Expended and Cost of Deposit

The table below presents our Bank’s average balances for deposits together with the related interest expended by category of
deposits, resulting in the presentation of the cost for each period. Average balance is calculated as the average of daily balances.

(₹ in million, except percentages)

As at the
Quarter ended June 30, 2022 Quarter ended June 30, 2021
Average Interest Expended Cost (%) Average Interest Cost (%)
Balance [A] [B] [C=B/A] Balance [A] Expended [B] [C=B/A]
Demand Deposits [A] 2,157.29 - - 2,114.68 - -
Savings Bank Deposits [B] 23,923.69 209.09 3.50% 19,838.33 181.72 3.66%
CASA [C=A+B] 26,080.98 209.09 3.21% 21,953.01 181.72 3.31%
Term Deposits [D] 34,898.32 524.89 6.02% 31,844.89 513.62 6.45%
Total Deposits 60,979.30 733.98 4.81% 53,797.90 695.34 5.17%
(E= C + D)

As at the
Year ended March 31, 2022 Year ended March 31, 2021 Year ended March 31, 2020
Average Interest Cost (%) Average Interest Cost (%) Average Interest Cost (%)
Balance [A] Expended [C=B/A] Balance [A] Expended [C=B/A] Balance [A] Expended [C=B/A]
[B] [B] [B]
Demand Deposits 2,052.11 - - 2,163.93 - - 1,886.97 - -
[A]
Savings Bank 21,559.82 764.51 3.55% 16,848.57 660.58 3.92% 13,743.12 554.53 4.03%
Deposits [B]
CASA [C=A+B] 23,611.93 764.51 3.24% 19,012.50 660.58 3.47% 15,630.09 554.53 3.55%
Term Deposits [D] 33,219.67 2,089.70 6.29% 30,002.80 2,122.56 7.07% 25,966.91 1,983.86 7.64%
Total Deposits 56,831.60 2854.21 5.02% 49,015.30 2,783.14 5.68% 41,597.00 2,538.39 6.10%
(E= C + D)

Deposit Turnover Ratio

Below table sets forth rollover ratios of bank.

12
 Quarter ended Quarter ended Year ended March Year ended March Year ended March
June 30, 2022 June 30, 2021 31, 2022 31, 2021 31, 2020
Roll Over ratio 92.00% 91.82% 89.73% 91.01% 90.73%
Notes:
1. Rollover’ refers to the reinvestment of maturity proceeds in a new term deposit. The rollover ratio is calculated by dividing the renewed term deposits
during the period by total term deposits matured during the period.

Total Borrowings

The following table sets forth, for the periods indicated, information related to Bank’s borrowings, which are comprised
primarily of refinance and Tier II bonds.
(₹ in million, except percentages)
Quarter ended Quarter ended Year ended March 31, Year ended Year ended
June 30, 2022 June 30, 2021 2022 March 31, 2021 March 31,
2020
Period-end balance of Tier II 2,469.10 2,147.40 2,147.4 1,921.20 1,607.20
bonds[A]
Period-end balance of others 3,179.00 3,277.00 2,836.9 4,246.00 2,602.00
borrowings[B]
Period-end balance of total 5,648.10 5,424.40 4,984.3 6,167.20 4,209.20
borrowings[C=A+B]
Average balance of Tier II 2,310.02 1,906.83 2,087.42 1,722.49 1,718.42
bonds[D]
Average balance of others 2,921.38 3,451.37 3,204.78 2,881.01 1,988.98
borrowings [E]
Average balance of total 5,231.40 5,358.20 5,292.20 4,603.50 3,707.40
borrowings[F=D+E]
Interest expended on Tier II 58.54 49.18 212.57 180.18 181.14
bonds[G]
Interest expended on others 33.70 49.35 162.58 164.96 135.59
borrowings [H]
Interest expended on total 92.24 98.53 375.15 345.14 316.73
borrowings [I=G+H]
Average cost of Tier II bonds 10.14% 10.32% 10.18% 10.46% 10.54%
[K=G/D]
Average cost of other 4.61% 5.72% 5.07% 5.73% 6.82%
borrowings[L=H/E]
Average cost of total 7.05% 7.36% 7.09% 7.50% 8.54%
borrowings[M=I/F]
Notes:
1. Average balances have been computed on the basis of daily outstanding balances.
2. Other borrowings include Refinance from SIDBI & NABARD, money market borrowings and borrowings from other banks.

Advances Portfolio

The table sets forth below Bank’s gross advances by product groups as at the dates indicated.

Classification As at June 30, 2022 As at June 30, 2021 As at March 31, 2022 As at March 31, 2021 As at March 31, 2020
of Advances Amount % of Amount % of Amount % of Amount % of Amount % of
(₹ in total (₹ in total (₹ in total (₹ in total (₹ in total
million) advances million) advances million) advances million) advances million) advances
Bills 3.28 0.01% 5.01 0.01% 3.44 0.01% 5.18 0.01% 6.10 0.02%
Purchased and
Discounted
Cash Credits, 22,998.69 48.67% 18,775.96 51.01% 23,443.99 50.00% 19,736.11 52.45% 18,815.79 56.58%
Overdrafts and
Loans
Repayable on
Demand
Term Loans 24,250.33 51.32% 18,027.51 48.98% 23,439.60 49.99% 17,888.58 47.54% 14,433.77 43.40%
Total 47,252.30 100% 36,808.49 100% 46,887.03 100% 37,629.87 100% 33,255.66 100%
Advances

The table below sets forth the Bank’s advances by segment as at dates indicated:

As at June 30, 2022 As at June 30, 2021 As at March 31, As at March 31, As at March 31, 2020
2022 2021
Amount % of Amount % of total Amount % of Amount % of Amount % of total
(₹ in total (₹ in advances (₹ in total (₹ in total (₹ in advances
million) advances million) million) advances million) advances million)
Agriculture 17,470.69 36.97% 13,576.07 36.88% 17,807.44 37.98% 14,232.11 37.82% 12,744.44 38.32%

13
 As at June 30, 2022 As at June 30, 2021 As at March 31, As at March 31, As at March 31, 2020
2022 2021
Amount % of Amount % of total Amount % of Amount % of Amount % of total
(₹ in total (₹ in advances (₹ in total (₹ in total (₹ in advances
million) advances million) million) advances million) advances million)
MSME & 10,845.27 22.95% 9,597.98 26.08% 10,926.22 23.30% 9,730.45 25.86% 8,895.12 26.75%
Trading
Mortgage 11,996.48 25.39% 8,339.01 22.66% 11,284.49 24.07% 8,096.45 21.52% 6,396.88 19.24%
Others 6,939.86 14.69% 5,295.43 14.38% 6,868.88 14.65% 5,570.86 14.81% 5,219.22 15.69%
Out of others 3,228.45 6.83% 1,948.01 5.29% 3,191.29 6.81% 2,066.41 5.49% 1,774.25 5.34%
- Large
corporates
Out of others 3,711.41 7.86% 3,347.42 9.09% 3,677.59 7.84% 3,504.45 9.32% 3,444.97 10.35%
– Others
including
Consumption
Total 47,252.30 100% 36,808.49 100% 46,887.03 100% 37,629.87 100% 33,255.66 100%
Advances

The table below sets forth the Bank’s advances by secured and unsecured as at dates indicated:

As at June 30, 2022 As at June 30, 2021 As at March 31, 2022 As at March 31, 2021 As at March 31, 2020
Amount % of total Amount % of total Amount % of total Amount % of total Amount % of total
(₹ in advances (₹ in advances (₹ in advances (₹ in advances (₹ in advances
million) million) million) million) million)
Secured 47,126.27 99.73% 36,602.49 99.44% 46,746.92 99.70% 37,399.91 99.39% 32,946.43 99.07%
Unsecured 126.03 0.27% 205.99 0.56% 140.11 0.30% 229.96 0.61% 309.23 0.93%
Total 47,252.30 100% 36,808.49 100% 46,887.03 100% 37,629.87 100% 33,255.66 100%
Advances

The table below sets forth the Bank’s advances by exposure limits as at given dates:

As at June 30, 2022 As at June 30, 2021 As at March 31, 2022 As at March 31, 2021 As at March 31, 2020
Amount % of total Amount % of total Amount % of total Amount % of total Amount % of total
(₹ in advances (₹ in advances (₹ in advances (₹ in advances (₹ in advances
million) million) million) million) million)
Upto 25 32,045.99 67.82% 23,842.63 64.77% 30,706.77 65.49% 23,661.34 62.88% 19,774.69 59.46%
lacs
25-50 lacs 5,483.89 11.61% 4,606.18 12.51% 6,243.03 13.32% 5,244.16 13.94% 4,678.42 14.07%
Above 50 9,722.42 20.57% 8,359.67 22.71% 9,937.23 21.19% 8,724.37 23.18% 8,802.55 26.47%
lacs
Total 47,252.30 100% 36,808.49 100% 46,887.03 100% 37,629.87 100% 33,255.66 100%
Advances

Disbursement of Advances
(₹ in million)
Quarter ended Quarter ended Year ended March Year ended March Year ended March
June 30, 2022 June 30, 2021 31, 2022 31, 2021 31, 2020
Upto 25 lacs 3,753.63 1,811.94 12,390.50 9,464.26 9,721.14
More than 25 lacs 1,141.05 632.44 6,035.80 3,986.51 3,695.35
Total 4,894.68 2,444.38 18,426.30 13,450.77 13,416.49

The table below sets forth the Bank’s advances by category of branches:

As at June 30, 2022 As at June 30, 2021 As at March 31, 2022 As at March 31, 2021 As at March 31, 2020
Amount % of total Amount % of total Amount % of total Amount % of total Amount % of
(₹ in advances (₹ in advances (₹ in advances (₹ in advances (₹ in total
million) million) million) million) million) advances
Rural 11,276.69 23.86% 8,568.80 23.28% 11,115.73 23.71% 8,607.95 22.88% 7,502.97 22.56%
Semi Urban 16,921.78 35.81% 13,404.80 36.42% 17,061.53 36.39% 14,055.82 37.35% 12,550.10 37.74%
Urban 14,591.07 30.88% 10,873.67 29.54% 14,250.70 30.39% 10,994.29 29.22% 9,318.67 28.02%
Metropolitan 4,462.76 9.45% 3,961.21 10.76% 4,459.07 9.51% 3,971.81 10.55% 3,883.91 11.68%
Total 47,252.30 100% 36,808.49 100% 46,887.03 100% 37,629.87 100% 33,255.66 100%
Advances

The table below sets forth the Bank’s average ticket size of advances as at end of periods indicated:

14
 (₹ in million)
Quarter ended Quarter ended Year ended Year ended Year ended
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020
Agriculture 1.22 1.21 1.22 1.22 1.25
MSME & Trading 1.98 2.04 1.99 2.02 1.96
Mortgage 1.14 1.11 1.13 1.1 1.17
Large Corporate 124.83 90.56 111.23 87.70 79.55
Others including
0.63 0.57 0.60 0.55 0.50
Consumption
Overall 1.32 1.27 1.31 1.26 1.20
Note:
1. Ticket size is calculated by dividing sanctioned amount of outstanding advances with number of clients in the sector.

The below table sets for the weighted average interest rate among the different sectors on outstanding at end of the periods indicated:

Quarter ended Quarter ended Year ended Year ended Year ended
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020
Agriculture 12.06% 12.33% 12.08% 12.36% 12.56%
MSME & Trading 10.16% 10.52% 10.19% 10.58% 10.89%
Mortgage 10.88% 11.33% 10.95% 11.40% 11.64%
Large Corporate 11.19% 12.15% 11.19% 12.27% 13.13%
Others including 9.21% 9.68% 9.23% 9.71% 10.36%
Consumption
Overall yield 11.04% 11.38% 11.09% 11.44% 11.74%

Priority Sector Lending

Being a Small finance bank, Bank is required to lend through advances 75.00% of their adjusted net bank credit (“ANBC”) or
credit equivalent amount of off-balance sheet exposures, whichever is higher, to specified sectors known as “priority sectors”,
subject to certain exemptions permitted by RBI from time to time. Priority sector advances include advances to agriculture
sector, micro and small enterprises, weaker sections, housing and education finance up to certain ceilings. Bank is required to
comply with the priority sector lending requirements on a quarterly basis.

The tables below set out Bank’s outstanding Priority Sector advances (as defined by the Government and the RBI) by sector
and as a percentage of ANBC as at the dates indicated.

As at June 30, 2022 As at June 30, 2021 As at March 31, As at March 31, 2021 As at March 31, 2020
2022
Advances % of Advances % of Advances % of Advances % of Advances % of
(₹ in ANBC (₹ in ANBC (₹ in ANBC (₹ in ANBC (₹ in ANBC
million) million) million) million) million)
Agriculture 17,470.69 50.92% 13,576.07 47.42% 17,807.44 53.75% 14,232.11 49.49% 12,744.44 55.68%
& allied
activities
Industry and 10,639.82 31.01% 9,166.07 32.01% 10,653.02 32.16% 9,185.74 31.95% 8,367.41 36.56%
services
(Micro &
small,
Medium and
large)
Others 4,459.15 13.00% 2,516.23 8.79% 4,141.20 12.50% 2,374.62 8.26% 1,907.65 8.33%
Total Gross 32,569.66 94.93% 25,258.37 88.22% 32,601.66 98.41% 25,792.47 89.70% 23,019.51 100.58%
PSL

The tables below set out Bank’s net PSL position on quarterly average basis:
(₹ in million, except percentages)
As at June 30, As at June 30, As at March 31, As at March 31, As at March 31,
2022 2021 2022 2021 2020
ANBC 34,308.49 28,632.31 31,322.17 26,006.10 20,752.73
Gross Priority Sector Lending 32,569.66 25,258.37 28,921.16 23,855.10 20,729.63
(PSL)
PSLC Purchased/sold (Net) 2,500.00 2,500.00 4,225.00 3,500.00 4,000.00
Net PSL 30,069.66 22,758.37 24,696.16 20,355.10 16,729.63
Net PSL achievement 87.64% 79.48% 78.85% 78.27% 80.61%

Recognition of NPAs and Provisioning

RBI classification and provisioning requirements

15
The Bank is classifying the advances in accordance with the RBI guidelines. The Credit policy of the Bank contains detailed
guidelines in this regard. As per the stated guidelines, an asset is classified as non-performing if:

- interest and/or instalment of principal remains overdue for more than 90 days in respect of term loans.
- the account remains out of order in respect of Overdraft/Cash Credit (CC/OD), and in respect of bills purchased and
discounted, if
- the bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted,
- the instalment of principal or interest thereon remains overdue for two crop seasons for short duration crops,
- the instalment of principal or interest thereon remains overdue for one crop season for long duration crops

The advances are further categorised into Standard, Sub-standard, Doubtful and Loss Assets category as detailed below:

1 Standard asset Standard Assets refer to performing assets which continue to generate income for the
bank and do not carry more than the normal risk attached to the business.
2 Sub-standard asset A Sub-standard Asset is one which has remained NPA for a period less than or equal to
12 months.
3 Doubtful asset An asset is classified as doubtful if it had remained in the sub-standard category for 12
months. Doubtful assets are sub-classified into the following three categories.
3.1 Doubtful 1 An asset which has remained in Doubtful category for upto 1 year (i.e. NPA for 12-24
months)
3.2 Doubtful 2 An asset which has remained in Doubtful category for 1 to 3 years (i.e. NPA for 24-48
months)
3.3 Doubtful 3 An asset which has remained in Doubtful category for more than 3 years (i.e. NPA for
more than 48 months)
4 Loss asset A loss asset is one where the loss has been identified by the bank or internal or external
auditors or the RBI inspection, but the amount has not been written off wholly. In other
words, such an asset is considered uncollectible.

Further, the Bank has also automated the Income Recognition, Asset Classification and Provisioning process w.e.f. June 30,
2021. With regard to the NPA accounts, the Income is recognised on cash basis and the provisioning is calculated automatically
by the system.

A detailed view of the asset bucketing as per the above categories is presented below:
(₹ in million)
Quarter ended Quarter ended Year ended March Year ended March Year ended March
June 30, 2022 June 30, 2021 31, 2022 31, 2021 31, 2020
Standard Assets 45,868.57 35,896.06 45,715.69 36,847.44 32,670.59
Sub-standard 640.93 374.67 506.51 239.66 306.68
Assets
Doubtful Assets 742.80 537.76 664.83 542.78 278.39
Loss Assets - - - - -
Total 47,252.30 36,808.49 46,887.03 37,629.87 33,255.66

Provisioning Requirements

In order to provide for the expected losses out of the loan portfolio, the Bank has a detailed Provisioning policy in place which
is in compliance with the RBI regulations. A snapshot of the provisioning guidelines are as follows:

Standard asset The provisioning requirements for all types of standard assets stands as below.
(a) Farm Credit to agricultural activities and Small and Micro Enterprises (SMEs) sectors at 0.25 per cent;
(b) advances to Commercial Real Estate (CRE) Sector at 1.00 per cent;
(c) advances to Commercial Real Estate – Residential Housing Sector (CRE - RH) at 0.75 per cent
(d) all other loans and advances not included in (a) (b) and (c) above at 0.40 per cent.
(e) the Medium Enterprises will attract 0.40% standard asset provisioning.
Sub-standard (i) A general provision of 15 percent on total outstanding should be made without making any allowance for
asset ECGC guarantee cover and securities available.
(ii) The ‘unsecured exposures’ which are identified as ‘substandard’ would attract additional provision of 10
per cent, i.e., a total of 25 per cent on the outstanding balance.

Unsecured exposure is defined as an exposure where the realizable value of the security, as assessed by the
bank/approved valuers/Reserve Bank’s inspecting officers, is not more than 10 percent, ab-initio, of the
outstanding exposure.
Doubtful asset 100 percent of the extent to which the advance is not covered by the realizable value of the security to which the
bank has a valid recourse and the realizable value is estimated on a realistic basis.

In regard to the secured portion, provision may be made on the following basis, at the rates ranging from 25 percent
to 100 percent of the secured portion depending upon the period for which the asset has remained doubtful:

Period for which the advance has Provision requirement (%)

remained in ‘doubtful’ category

16
 Up to one year 25
One to three years 40
More than three years 100
Loss asset Loss assets should be written off. If loss assets are permitted to remain in the books for any reason, 100 percent of
the outstanding should be provided for.
Restructured asset Provision for restructured accounts, unless restructured under specific schemes, shall be created as per the rates and
conditions prescribed by RBI from time to time and the Bank’s policy for Restructuring of Loans.

The following tables set forth the Bank’s provisions for possible credit losses at the dates indicated :

(₹ in million, except percentages)

Quarter ended Quarter ended Year ended Year ended Year ended
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020
Provision held (including 865.75 600.39 823.07 535.82 358.34
standard assets provision)
Provision held as percentage 1.83 % 1.63% 1.76 % 1.42% 1.08%
of Gross Advances
Provision held as percentage 62.56 % 65.80% 70.26 % 68.48% 61.25%
of Gross NPAs

The following tables set forth the SMAs and NPAs position:

June 30, 2022 June 30, 2021

Term Loans CC/OD Limits Agri limits Total Term Loans CC/OD Limits Agri limits Total
SMA 1 4.48% 1.41% 0.00% 2.53% 5.20% 1.98% 0.50% 3.08%
SMA 2 3.61% 0.26% 0.00% 1.91% 2.87% 0.10% 2.00% 2.12%
NPA 1.72% 5.90% 3.50% 2.93% 1.24% 5.98% 2.57% 2.48%

March 31, 2022 March 31, 2021 March 31, 2020

Term Loans CC/OD Limits Agri limits Total Term Loans CC/OD Limits Agri limits Total Term CC/OD Agri Total
Loans Limits limits
SMA 1 3.56% 1.45% 0.00% 2.02% 3.44% 1.46% 0.44% 2.06% 5.02% 2.85% 8.63% 5.89%
SMA 2 2.65% 0.20% 0.00% 1.37% 3.08% 1.41% 3.45% 2.92% 4.18% 1.90% 4.54% 3.86%
NPA 1.48% 5.85% 2.51% 2.50% 0.78% 5.78% 2.08% 2.08% 0.51% 4.92% 1.57% 1.76%

Non-Performing Assets

The following table sets forth information about Bank’s NPA portfolio as at end of periods mentioned:
(₹ in million, except percentages)
For the
Quarter ended June 30, Quarter ended June Year ended March 31, Year ended March 31, Year ended March 31,
2022 30, 2021 2022 2021 2020
Gross Provision % of Gross Provision % of Gross Provision % of Gross Provision % of Gross Provision % of
NPA NPA NPA NPA NPA NPA NPA NPA NPA NPA

Agriculture 591.13 231.57 3.38% 342.94 135.99 2.53% 435.36 189.46 2.44% 294.95 123.38 2.07% 204.51 58.78 1.60%

MSME & 612.34 252.38 5.65% 380.04 180.31 3.96% 538.25 230.72 4.93% 374.56 182.76 3.85% 304.36 83.57 3.42%
Trading
Mortgage 89.66 31.17 0.75% 72.01 28.47 0.86% 77.88 27.52 0.69% 62.92 24.53 0.78% 28.64 9.21 0.45%

Others 90.60 73.02 1.31% 117.44 41.76 2.22% 119.85 91.33 1.74% 50.00 30.34 0.90% 47.56 21.01 0.91%

Total NPA 1383.73 588.14 2.93% 912.43 386.54 2.48% 1,171.34 539.03 2.50% 782.43 361.01 2.08% 585.07 172.57 1.76%

The following table sets forth information movement of NPAs during the given periods:
(₹ in million, except percentages)
Quarter Quarter Year ended Year ended Year ended
ended June ended June March 31, March 31, March 31,
30, 2022 30, 2021 2022 2021 2020
Opening balance of Gross NPAs at the beginning of 1171.34 782.43 782.43 585.07 339.56
the period
Additions during the period 294.32 176.16 781.13 248.53 421.9
Less: Reductions during the period on account of 21.78 4.69 61.87 16.53 32.06
recovery
Less: Reductions during the period on account of 60.15 41.47 329.69 34.49 144.27
upgradations
Less: Reductions during the period on account of - - 0.66 0.15 0.06
write-offs (including technical write-offs)
Gross NPAs [A] 1383.73 912.43 1171.34 782.43 585.07

17
 Quarter Quarter Year ended Year ended Year ended
ended June ended June March 31, March 31, March 31,
30, 2022 30, 2021 2022 2021 2020
Total provision towards NPAs [B] 588.15 386.54 539.03 361.01 172.57
Net NPAs [C= A- B] 795.58 525.89 632.31 421.42 412.50
Gross Advances [D] 47,252.30 36,808.49 46,887.03 37,629.87 33,255.66
Net Advances [E = D-B] 46,664.15 36,421.95 46,348.00 37,268.86 33,083.08
Gross NPAs as a percentage of gross advances [F = 2.93% 2.48% 2.50% 2.08% 1.76%
A/D] (%)
Net NPAs as a percentage of net advances [G = C/E] 1.70% 1.44% 1.36% 1.13% 1.25%
(%)
Provision for standard assets [H] 277.60 213.85 284.04 174.81 185.77
Total of provision towards NPAs and provision 865.75 600.39 823.07 535.82 358.34
towards standard assets [I = B + H]
Total of provision towards NPAs and provision 1.83% 1.63% 1.76% 1.42% 1.08%
towards standard assets held as percentage of gross
advances (%) [J=I/D]
Total provision towards NPAs held as percentage of 42.50% 42.36% 46.02% 46.14% 29.50%
gross NPAs (%) [K=B/A]*
Outstanding balance of technical written-off accounts - - - - -
[L]
Provision coverage ratio [M = (B+L)/(A+L)/(%) 42.50% 42.36% 46.02% 46.14% 29.50%

The following tables set forth the Ageing wise NPA provision:
(₹ in million, except percentages)
NPA Ageing As at June 30, 2022 As at June 30, 2021
Particulars Amount Provision PCR Amount Provision PCR
Above 5 years 72.07 72.07 100.00% 42.88 42.88 100.00%
2-5 years 383.14 289.82 75.64% 259.2 156.21 60.27%
1-2 years 287.59 117.16 40.74% 235.69 106.82 45.32%
upto 1 year 640.93 109.10 17.02% 374.67 80.63 21.52%
Total 1,383.73 588.15 42.50% 912.43 386.54 42.36%

(₹ in million, except percentages)

NPA Ageing As at March 31, 2022 As at March 31, 2021 As at March 31, 2020
Particulars Amount Provision PCR Amount Provision PCR Amount Provision PCR

Above 5 57.98 57.98 100% 37.89 37.89 100.00% 7.75 7.75 100.00%
years
2-5 years 437.10 311.08 71.17% 219.49 132.55 60.39% 128.26 70.66 55.09%
1-2 years 169.75 49.42 29.11% 285.4 130.23 45.63% 142.38 46.21 32.46%
upto 1 year 506.51 120.55 23.80% 239.66 60.34 25.18% 306.68 47.95 15.63%
Total 1171.34 539.03 46.02% 782.43 361.01 46.14% 585.07 172.57 29.50%

Restructuring of Advances

A restructured account is one where for economic or legal reasons relating to the borrower's financial difficulty, the Bank grants
to the borrower concessions that the Bank would not otherwise consider. Restructuring would normally involve modification
of terms of the advance/securities, which would generally include, among others, alteration of repayment period/repayable
amount/ the amount of instalments/ rate of interest (due to reasons other than competitive reasons).

The Bank has implemented the guidelines issued by the RBI vide its circular “Micro, Small and Medium Enterprises (MSME)
sector – Restructuring of Advances” and “Resolution Framework for COVID-19-related Stress” dated August 06, 2020; and
“Resolution Framework 2.0 – Resolution of Covid-19 related stress of Micro, Small and Medium Enterprises (MSMEs)” and
“Resolution Framework – 2.0: Resolution of Covid-19 related stress of Individuals and Small Businesses” dated May 05, 2021
wherein the Banks were permitted to restructure the existing accounts without a downgrade in the asset classification subject
to the conditions specified therein.

The details of restructured accounts are as follows:

(₹ in million)
As at June As at June 30, As at March 31, As at March 31, As at March 31,
30, 2022 2021 2022 2021 2020
Restructured Advances 1,327.70 1,161.55 1,357.59 847.78 -
Amount outstanding
structuring Provision 126.58 92.40 134.19 53.37 -

18
Concentration of Advances and Deposits

As at June 30, As at June 30, As at March 31, As at March 31, As at March 31,
2022 2021 2022 2021 2020
Deposits
10 largest deposit 2.33% 2.51% 3.20% 2.56% 5.88%
holders
20 largest deposit 3.61% 3.88% 4.73% 3.70% 7.64%
holders
Advances
10 largest borrowers 3.91% 3.18% 4.02% 3.17% 4.03%
20 largest borrowers 6.36% 5.49% 6.53% 5.70% 6.81%
Note:
1. Deposit concentration represents aggregate exposure concentration to top depositors including CASA and term deposits.
2. Borrower concentration represents the exposure concentration of top borrowers in credit portfolio of the Bank. Exposure includes both fund based and
non-fund based exposure, calculated as per Exposure norms prescribed by the Reserve Bank of India.

Capital Adequacy

Bank is subject to the CAR requirements prescribed by the RBI i.e. to maintain a minimum CAR of 15.00%, based on the total
capital to risk-weighted assets. The following table sets forth information relating to the CAR of Bank as of the periods
indicated:
(₹ in million, except percentages)
As at June 30, As at June 30, As at March 31, As at March 31, As at March 31,
2022 2021 2022 2021 2020
Tier I Capital 5,123.94 4,462.43 4,908.56 4,335.80 3,955.04
Tier II Capital 2,297.09 1,998.02 2,017.03 1,680.68 1,442.58
Total Capital 7,421.03 6,460.45 6,925.59 6,016.48 5,397.62
Total Risk Weighted 38,032.17 30,595.85 37,168.97 30,380.21 28,241.45
Assets
Capital Adequacy Ratio
Tier I Capital (%) 13.47% 14.59% 13.21% 14.27% 14.00%
Tier II Capital (%) 6.04% 6.53% 5.42% 5.53% 5.11%
Total Capital (%) 19.51% 21.12% 18.63% 19.80% 19.11%

Investment Portfolio

The following table sets forth, as at the dates indicated, information related to our total net investment portfolio.
(₹ in million)
As at June 30, 2022 As at June 30, 2021 As at March 31, As at March 31, As at March 31,
2022 2021 2020
Government 13,773.48 11,803.72 13,555.23 12,107.36 10,518.75
Securities
Certificate of - - - - -
Deposit
Mutual Funds - - - - -
Corporate Bonds - - - -
Equity Shares 15.40 15.40 15.40 15.16 -
Total 13,788.88 11,819.12 13,570.63 12,122.52 10,518.75

(₹ in million)
As at June 30, As at June 30, As at March 31, As at March 31, As at March 31,
2022 2021 2022 2021 2020
Held to Maturity 10,301.87 8,132.45 9,892.76 8,725.32 7,264.70
Available for Sale 3,487.01 3,686.67 3,677.87 3,397.20 3,203.77
Held for Trading - - - - 50.28
Total Portfolio 13,788.88 11,819.12 13,570.63 12,122.52 10,518.75

Interest Sensitivity Analysis

The following table sets forth the interest rate sensitivity analysis of Bank’s assets and liabilities as June 30, 2022, which is
prepared/compiled based on guidelines provided by the RBI.
(₹ in million)
As at June 30, 2022
Up to Three Over Three Months Over One Year Over Five Non-Sensitive Total
Months to One Year to Five Years Years
Cash and Balances with 660.00 - - - 3,543.39 4,203.39
RBI
Balances with Other 1,634.88 4,450.22 271.34 - 613.87 6,970.31
Banks

19
 As at June 30, 2022
Up to Three Over Three Months Over One Year Over Five Non-Sensitive Total
Months to One Year to Five Years Years
Investments 549.37 335.05 1,745.02 11,144.04 15.40 13,788.88
Advances 11,451.79 23,893.17 10,695.43 623.77 - 46,664.16
Other Assets 326.14 522.17 26.74 1.49 1,099.13 1,975.67
Total Assets 14,622.18 29,200.61 12,738.53 11,769.30 5,271.79 73,602.41
Capital and Reserves - - - - 5,362.19 5,362.19
Borrowings 714.60 1,028.90 1,950.90 1,953.70 - 5,648.10
Deposits 10,512.90 21,427.69 29,539.42 142.94 - 61,622.95
Other Liabilities 15.27 44.79 9.39 0.22 899.50 969.17
Total Liabilities 11,242.77 22,501.38 31,499.71 2,096.86 6,261.69 73,602.41

Asset Liability Gap

The following table sets forth the maturity pattern of certain items of assets and liabilities as at June 30, 2022, which is
prepared/compiled based on guidelines provided by the RBI:
(₹ in million, except percentages)
As on June 30, 2022
1-30 Days 30-90 Days 3-6 Months 6-12 1-3 Years 3-5 Years Over 5 Years Total
Months
Cash and Bank 2,103.95 1,710.53 1,354.53 3,386.60 1,437.25 18.42 1,162.42 11,173.70
Balance
Advances 6,110.41 1,165.19 1,653.85 3,270.31 26,018.28 5,601.80 2,844.32 46,664.16
Investments 3,006.57 276.31 371.08 792.50 4,603.65 73.70 4,665.07 13,788.88
Fixed Assets - - - - - - 841.10 841.10
Other Assets 266.99 91.87 85.33 67.58 366.97 9.79 246.04 1,134.57
Total Assets 11,487.92 3,243.90 3,464.79 7,516.99 32,426.15 5,703.71 9,758.95 73,602.41
Capital & - - - - - - 5,362.19 5,362.19
Reserve
Deposits 3,645.28 1,544.35 2,268.00 4,464.75 25,449.71 123.80 24,127.06 61,622.95
Borrowings 76.40 638.20 224.20 804.70 1,671.90 279.00 1,953.70 5,648.10
Other Liabilities 268.29 54.94 34.66 43.42 472.84 41.87 53.15 969.17
Total Liabilities 3,989.97 2,237.49 2,526.86 5,312.87 27,594.46 444.67 31,496.09 73,602.41
Liquidity Gap 7,497.95 1,006.41 937.93 2,204.12 4,831.69 5,259.04 -21,737.14 -
Cumulative 7,497.95 8,504.36 9,442.29 11,646.41 16,478.10 21,737.14 - -
Liquidity Gap
Cumulative 3,989.97 6,227.46 8,754.32 14,067.19 41,661.65 42,106.32 73,602.41 -
Liabilities
Cumulative 187.92% 136.56% 107.86% 82.79% 39.55% 51.62% - -
Liquidity Gap as
a percentage of
Cumulative
Liabilities (%)

Productivity Ratios

The following table sets forth certain information relating to Bank’s productivity ratios:

Quarter ended Quarter ended Year ended Year ended Year ended
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020
Number of branches 165 159 161 158 150
ATMs 167 161 163 160 151
Digital transactions 78.54% 67.95% 71.18% 54.48% 46.10%
Share
Deposits per Branch 380.39 354.88 379.08 339.03 318.75
Advances per Branch 291.68 238.24 293.96 244.35 238.39
Disbursements per 30.21 15.82 115.53 87.34 96.18
Branch
Note:
1. The above numbers have been computed on average number of branches.
2. The digital transaction share has been computed as a percentage of digital transactions over total non-cash transactions during the relevant period.

(₹ in million, except count)

Quarter ended Quarter ended Year ended Year ended Year ended
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020
Total number of 1,675 1,641 1,644 1,614 1,649
employees
Deposits per employee 37.17 33.59 37.12 32.00 28.86
Advances per 28.50 22.55 28.78 23.06 21.58
employee
20
 Quarter ended Quarter ended Year ended Year ended Year ended
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020
Disbursements per 2.95 1.50 11.31 8.24 8.71
employee
Note: The above numbers have been computed on average number of employees.

21
 FINANCIAL STATEMENTS

RESTATED FINANCIAL INFORMATION

(The remainder of this page is intentionally left blank)

22
INDEPENDENT AUDITOR’S EXAMINATION REPORT ON RESTATED FINANCIAL
INFORMATION

The Board of Directors

Capital Small Finance Bank Limited
Midas Corporate Park, 3rd Floor,
37, G.T. Road,
Jalandhar, Punjab- 144 001

Dear Sirs /Madams,

1. We have examined the attached Restated Financial Information of Capital Small Finance Bank (the “Bank”)
comprising the Restated Statement of Assets and Liabilities as at June 30, 2022, June 30, 2021, March 31, 2022,
2021 and 2020, the Restated Statement of Profit & Loss, the Restated Cash Flow Statement for the three months
periods ended June 30, 2022 and June 30, 2021 and for each of the years ended March 31, 2022, 2021 and 2020,
the summary statement of significant accounting policies and other explanatory information as approved by the
board of directors of the Bank (“Board of Directors”) at their meeting held on August 31, 2022, for the purpose
of inclusion in the addendum to Draft Red Herring Prospectus (‘DRHP’), Red Herring Prospectus (“RHP”) and
Prospectus (collectively, the “Offer Documents”) prepared by the Bank in connection with its proposed Initial
Public Offer of equity shares of face value of Rs.10 each (“IPO”) prepared in terms of requirements of:

a. Section 26 of Part I of Chapter III of The Companies Act, 2013 (the “Act”);

b. Relevant provisions of the Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2018, as amended (“ICDR Regulations”); and

c. The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of
Chartered Accountants of India (‘ICAI’), as amended from time to time (the ‘Guidance Note’)

2. The Bank’s Board of Directors is responsible for the preparation of the Restated Financial Information for the
purpose of inclusion in the Offer Documents to be filed with Securities and Exchange Board of India, BSE
Limited, National Stock Exchange of India Limited and Registrar of Companies, situated at Chandigarh (“RoC
Chandigarh”) in connection with the proposed IPO of the Bank. The Restated Financial Information has been
prepared by the management of the Bank on the basis of preparation stated in note 5.2 to the Restated Financial
Information. The Board of Directors responsibility includes designing, implementing and maintaining adequate
internal control relevant to the preparation and presentation of the Restated Financial Information. The Board of
Directors is also responsible for identifying and ensuring that the bank complies with the Act, ICDR Regulations
and the Guidance Note.

3. We have examined such Restated Financial Information taking into consideration:

a) The terms of reference and our engagement agreed with you vide our engagement letter dated August 23,
2021, in connection with the proposed IPO of the Bank;

b) The Guidance Note also requires that we comply with the ethical requirements of the Code of Ethics issued
by the ICAI;

c) Concepts of test checks and materiality to obtain reasonable assurance based on verification of evidence
supporting the Restated Financial Information; and

d) The requirements of Section 26 of the Act and applicable provisions of the ICDR Regulations. Our work
was performed solely to assist you in meeting your responsibilities in relation to your compliance with the
Act, the ICDR Regulations and the Guidance Note in connection with the Proposed IPO.

4. The Restated Financial Information have been compiled by the management from:

a) Audited interim financial statements of the Bank as at and for the three months ended June 30, 2022 and
June 30, 2021 and audited financial statements of the Bank for the years ended March 31, 2022, 2021 and
2020 prepared in accordance with the Accounting Standard (AS) 25 specified under section 133 of the
Companies Act 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014, which have been approved

23
 by the Board of Directors in their meeting held on August 31, 2022, May 13, 2022, September 23, 2021, May
11, 2021, May 16, 2020 respectively..

5. For the purpose of our examination, we have relied on

a) Auditor’s reports issued by us dated August 31, 2022 and September 23, 2021 on the audited interim financial
statements of the Bank as at and for the three months period ended June 30, 2022 and June 30, 2021,
respectively, as referred in Paragraph 4 above.

b) Auditor’s reports issued by us, dated May 13, 2022 on the audited financial statements of the bank as at and
for the year ended March 31, 2022, as referred in Paragraph 4 above.

c) Auditor’s reports issued by Previous Auditor MSKC & Associates, dated May 11, 2021 and May 16, 2020 on
the audited financial statements of the Bank as at for the years ended March 31, 2021 and 2020 respectively,
as referred in Paragraph 4 above.

The audited financial statements for the years ended March 31, 2021, and March 31, 2020 and the
independent auditors' reports thereon issued by the Previous Auditors have been furnished to us by the
Bank. We have examined and reported on the restated financial information for the years ended March 31,
2021, and 2020. The adjustments in so far as it relates to the amounts, disclosures, material errors, regrouping,
reclassification, etc., included in respect of the years ended March 31, 2021 and 2020 is restricted to and
based solely on the audited financial statements and auditor's reports issued by the Previous Auditor for such
years. We have not performed any additional procedures other than those stated herein and do not accept
any responsibility of whatsoever nature in this regard.

6. Based on the above and according to the information and explanations given to us, we report that the Restated
Financial Information:

a) have been prepared after incorporating adjustments for the changes in accounting policies, material errors
and regrouping/reclassifications retrospectively in the financial years ended March 31, 2022, March 31 2021,
March 31 2020 and three months ended June 30, 2021 to reflect the same accounting treatment as per the
accounting policies and grouping/classifications followed as at and for the three months period ended June
30, 2022.

b) There are no qualifications in the auditors’ reports on the audited financial statements of the Bank as at and
for the three month periods ended June 30, 2022 and June 30, 2021 and years ended March 31, 2022, 2021
and 2020; and

Emphasis of matter paragraphs included in the auditors’ report on the financial statements as at and for the
three month periods ended June 30, 2022 and June 30 2021 and for the year ended March 31, 2022 , March
31, 2021 and March 31 2020 which does not require any corrective adjustment in the Restated Financial
Information, are as follows:

Emphasis of Matter – June 30, 2022

We draw attention to Note 4.6 of the of Schedule 18 to the financial statements regarding the impact of the
Covid 19 pandemic. The extent to which any new wave of COVID-19 will impact the bank's results will
depend on ongoing as well as future developments, including, among other things, any new information
concerning the severity of the COVID-19 pandemic, and any action to contain its spread or mitigate its
impact whether government-mandated or elected by us.

Our opinion is not modified in respect of this matter.

Emphasis of Matter – June 30, 2021

We draw attention to Note 3.4 of the of Schedule 18 to the financial statements, which describes the extent
to which the COVID-19 pandemic will continue to impact the Bank’s financial statements will depend on
future developments, which are uncertain.
Our opinion is not modified in respect of this matter.

Emphasis of Matter – March 31, 2022

We draw attention to Note 4.6 to the financial statements, which describes the extent to which the COVID-
19 pandemic will continue to impact the Bank’s financial statements will depend on future developments,
which are uncertain.

24
 Our opinion is not modified in respect of this matter.

Emphasis of Matter – March 31, 2021

We draw attention to Note 3.3 of the Schedule 18 to the financial statements, which describes the extent to
which the COVID-19 pandemic will continue to impact the Bank’s financial statements will depend on future
developments, which are uncertain.
Our opinion is not modified in respect of this matter.

Emphasis of Matter – March 31, 2020

We draw attention to Schedule 18(3.1) to the financial statements, which describes that the extent to which
the COVID-19 Pandemic will impact the Bank's financial statements will depend on future developments,
which are highly uncertain. Considering the circumstances as described in Schedule 18(3.1) to the financial
statements, the Bank has made a provision of Rs. 7.7 Crores for the year ended March 31, 2020.
Our opinion is not modified in respect of this matter.

c) have been prepared in accordance with the Act, ICDR Regulations and the Guidance Note.

7. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality
Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance
and Related Services Engagements

8. The Restated Financial Information do not reflect the effects of events that occurred subsequent to the respective
dates of the report on the audited financial statements mentioned in paragraph 4 above.

9. In our opinion, the Restated Financial Information, read with Summary of Significant Accounting Policies
disclosed in Note 2 of Schedule 17, accompanying this report, are prepared after making adjustments and
regroupings as considered appropriate and have been prepared in accordance with the Act, ICDR Regulations and
the Guidance Note.

10. This report should not in any way be construed as a reissuance or re-dating of any of the previous audit reports
issued by us or Previous Auditor, nor should this report be construed as a new opinion on any of the financial
statements referred to herein.

11. We have no responsibility to update our report for events and circumstances occurring after the date of the report.

12. Our report is intended solely for use of the Board of Directors for inclusion in the offer documents to be filed
with Securities and Exchange Board of India, National Stock Exchange of India Limited, BSE Limited and the
RoC Chandigarh in connection with proposed IPO. Our report should not be used, referred to, or distributed for
any other purpose except with our prior consent in writing. Accordingly, we do not accept or assume any liability
or any duty of care for any other purpose or to any other person to whom this report is shown or into whose
hands it may come without our prior consent in writing.

For T R Chadha & Co LLP

Chartered Accountants
Firm's Registration No.: 006711N/ N500028

Hitesh Garg
Partner
Membership No.: 502955
UDIN: 22502955AQOVWI9186
Place: New Delhi
Date: 01-09-2022

25
 Annexure 1- Restated Statement of Assets and Liabilities
(All amounts in ₹ million except otherwise stated)

As on As on As on As on As on
PARTICULARS Annexure
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020

CAPITAL & LIABILITIES

Capital 6 342.34 340.03 340.44 339.10 338.07

Reserve and Surplus 7 5,019.85 4,302.00 4,817.37 4,168.80 3,729.73
Deposits 8 61,622.95 54,829.03 60,463.59 52,210.70 44,466.23
Borrowings 9 5,648.10 5,424.40 4,984.30 6,167.20 4,209.20
Other Liabilities and provisions 10 969.17 763.03 933.51 826.58 555.54

Total 73,602.41 65,658.49 71,539.21 63,712.38 53,298.77

ASSETS

Cash and Balances with Reserve Bank of India 11 4,203.39 8,191.54 3,639.95 7,217.24 2,212.33
Balances with Banks and Money at call and
12 6,970.31 7,435.27 6,550.61 5,686.99 5,945.16
Short Notice
Investments 13 13,788.88 11,819.12 13,570.63 12,122.52 10,518.75
Advances 14 46,664.16 36,421.95 46,348.00 37,268.86 33,083.08
Fixed assets 15 841.10 851.25 835.87 865.54 906.24
Other Assets 16 1,134.57 939.36 594.15 551.23 633.21

Total 73,602.41 65,658.49 71,539.21 63,712.38 53,298.77

Contingent Liabilities 17 394.73 358.85 456.21 383.51 370.71

Bills for Collection - - - - -
Significant Accounting Policies 5
Notes forming part of the Restated Financial
Statements 22

The annexures referred to above form an integral part of the restated statement of assets and liabilities. The Restated Statement of Assets and Liabilities has been
prepared in conformity with Form A to the Third Schedule of the Banking Regulation Act, 1949.

As per our report of even date

For T R Chadha & Co. LLP For and on behalf of The Board of
Chartered Accountants Capital Small Finance Bank Limited
FRN: 006711N/N500028

Sarvjit Singh Samra Rakesh Soni Gurpreet Singh Chug

Managing Director & Director Director
Chief Executive Officer
Hitesh Garg DIN: 00477444 DIN: 07262045 DIN: 01003380
Partner
Membership No.: 502955

Munish Jain Amit Sharma

Date : September 01, 2022 Chief Financial Officer & Company Secretary
Place : New Delhi Chief Operating Officer Mem. No. FCS10888
Date : September 01, 2022
Place : Jalandhar

26
Annexure 2- Restated Statement of Profit and Loss
(All amounts in ₹ million except otherwise stated)

Quarter ended Quarter ended Year ended Year ended Year ended
PARTICULARS Annexure June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020
(3 months) (3 months) (12 months) (12 months) (12 months)

INCOME
Interest Earned 18 1,524.83 1,364.36 5,782.18 5,114.39 4,581.35
Other Income 19 104.30 109.83 541.85 458.34 429.61

Total 1,629.13 1,474.19 6,324.03 5,572.73 5,010.96

EXPENDITURE
Interest Expended 20 826.22 793.87 3,229.36 3,128.28 2,855.12
Operating Expenses 21 516.89 454.24 1,962.53 1,729.59 1,633.33
Provisions and Contingencies (Refer note 46 of 103.19 104.25 506.45 307.02 268.69
Annexure 22)

Total 1,446.30 1,352.36 5,698.34 5,164.89 4,757.14

PROFIT
Net profit for the period 182.83 121.83 625.69 407.84 253.82
Profit brought forward 1,670.21 1,262.88 1,262.88 987.72 837.67

Total 1,853.04 1,384.71 1,888.57 1,395.56 1,091.49

APPROPRIATIONS
Transfer to Statutory Reserves - - 156.42 101.96 63.45
Transfer to Special Reserve - - 18.04 6.92 1.12
Transfer to/ (from) Revenue and Other Reserves - 0.14 (0.14) -
(Investment Reserve Account) -
Transfer to Revenue and Other Reserves 16.56 23.94 31.94
- -
(Investment Fluctuation Reserve)
Dividend - - 27.20 - 6.02
Tax on Dividend - - - - 1.24
Balance carried over to Balance sheet 1,853.04 1,384.71 1,670.21 1,262.88 987.72

Total 1,853.04 1,384.71 1,888.57 1,395.56 1,091.49

EARNING PER SHARE
Basic (₹) 5.35* 3.59* 18.41 12.04 8.18
Diluted (₹) 5.34* 3.57* 18.22 11.98 8.16
Face value (₹) 10.00 10.00 10.00 10.00 10.00
*not-annualized
Significant Accounting Policies 5
Notes forming part of the Restated Financial 22
Statements

The annexures referred to above form an integral part of the restated statement of profit and loss. The Restated Statement of Profit and Loss has been prepared in
conformity with Form A to the Third Schedule of the Banking Regulation Act, 1949.

As per our report of even date

For T R Chadha & Co. LLP For and on behalf of The Board of
Chartered Accountants Capital Small Finance Bank Limited
FRN: 006711N/N500028

Sarvjit Singh Samra Rakesh Soni Gurpreet Singh Chug

Managing Director & Director Director
Chief Executive Officer
Hitesh Garg DIN: 00477444 DIN: 07262045 DIN: 01003380
Partner
Membership No.: 502955

Munish Jain Amit Sharma

Date : September 01, 2022 Chief Financial Officer & Company Secretary
Place : New Delhi Chief Operating Officer Mem. No. FCS10888
Date : September 01, 2022
Place : Jalandhar

27
 Annexure 3- Restated Statement of Cash Flows
(All amounts in ₹ million except otherwise stated)

Quarter ended Quarter ended Year ended Year ended Year ended
PARTICULARS June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020
(3 months) (3 months) (12 months) (12 months) (12 months)

CASH FLOW FROM OPERATING ACTIVITIES

Net Profit before Taxes 243.34 161.52 844.89 537.37 345.82

Adjustments For-
Depreciation Charge on Fixed Assets 66.98 41.42 161.16 164.92 153.37
Loan Loss Provision 42.68 64.56 287.25 177.49 176.69
(Profit)/ Loss on Sale of Fixed Assets 0.12 0.02 0.06 (0.01) 0.18
Employee Stock Option Expense 3.48 3.25 38.35 22.12 16.12
Depreciation/ (Reversal of Depreciation) on Investments - (0.24) (0.24) 0.24 (0.06)
356.60 270.53 1,331.47 902.13 692.12
Adjustments For-
(Increase) in Term Deposits with other Banks (141.18) (1,495.42) (722.31) (1,159.63) (144.89)
Decrease/ (Increase) In Investments (218.25) 303.64 (1,447.86) (1,604.02) (1,907.45)
Decrease/ (Increase) In Advances (365.27) 821.39 (9,257.16) (4,374.22) (7,167.85)
Increase In Deposits 1,159.36 2,618.33 8,252.89 7,744.47 7,793.65
Decrease/ (Increase) In Other Assets (532.42) (389.08) (28.13) 81.03 46.49
(Decrease)/ Increase In Other Liabilities & Provisions 22.72 (112.01) (28.39) 282.00 1.62
281.56 2,017.38 (1,899.51) 1,871.76 (686.31)
Direct Taxes Paid (net of refunds) (49.13) (29.31) (207.90) (128.58) (112.81)

NET CASH FLOW FROM/ (USED IN) OPERATING ACTIVITIES 232.43 1,988.07 (2,107.41) 1,743.18 (799.12)

CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Fixed Assets (72.72) (27.26) (134.94) (129.26) (225.63)

Proceeds from Sale of Fixed Assets 0.39 0.11 3.39 5.05 1.04

NET CASH FLOW USED IN INVESTING ACTIVITIES (72.33) (27.15) (131.54) (124.21) (224.59)

CASH FLOW FROM FINANCING ACTIVITIES

Net Proceeds from equity shares issued under preferential

18.06 9.04 13.07 10.14 1,301.89
allotment on private placement basis/ ESOP allotment
Net Proceeds from the new issue of Unsecured Redeemable Non- 321.70 226.20 226.20 314.00 (169.60)
Convertible Bonds/ (Redemption of Bonds)
Net Increase/ (Decrease) in Borrowings/Refinance 342.10 (969.00) (1,409.10) 1,644.00 795.00
Dividend Payment (including Corporate Dividend Tax) - - (27.20) - (7.25)

NET CASH FLOW FROM/ (USED IN) FINANCING ACTIVITIES 681.86 (733.76) (1,197.03) 1,968.14 1,920.04

Net Increase/ (Decrease) in Cash & Cash Equivalents 841.96 1,227.16 (3,435.98) 3,587.11 896.32
Cash & Cash Equivalents in the beginning of the period 3,975.30 7,411.28 7,411.28 3,824.16 2,927.84
Cash & Cash Equivalents at the end of the period 4,817.25 8,638.44 3,975.30 7,411.28 3,824.16

Notes-
1. The above Cash Flow Statement has been prepared under the indirect method as set out in Accounting Standard 3 on Cash Flow Statements specified under
Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Accounting Standards) Amendment
Rules, 2016.
2. Figures in bracket indicate cash outflow.

As per our report of even date

For T R Chadha & Co. LLP For and on behalf of The Board of
Chartered Accountants Capital Small Finance Bank Limited
FRN: 006711N/N500028

Sarvjit Singh Samra Rakesh Soni Gurpreet Singh Chug

Managing Director & Director Director
Chief Executive Officer
Hitesh Garg DIN: 00477444 DIN: 07262045 DIN: 01003380
Partner
Membership No.: 502955

Munish Jain Amit Sharma

Date : September 01, 2022 Chief Financial Officer & Company Secretary
Place : New Delhi Chief Operating Officer Mem. No. FCS10888
Date : September 01, 2022
Place : Jalandhar

28
Annexure 4- Statement of Adjustments to Audited Financial Statements

1. Material Adjustments, Change in Accounting Policy and Change in Estimates

The accounting policies and estimates as at and for the quarter ended June 30, 2022 are materially consistent with the policies adopted for
each of the quarter ended June 30, 2021 and years ended March 31, 2022, March 31, 2021 and March 31, 2020. However, during the
quarter ended June 30, 2022, estimated useful life of Office Equipment and Automated Teller Machines (ATMs) have been revised.
Depreciation on these assets has been charged prospectively over the revised useful life of assets. Consequently, Profit After Tax for the
quarter ended June 30, 2022 was lower by ₹20.40 million.

Restated Financial Statements have been prepared based on the respective audited financial statements for the quarters ended June 30,
2022 and 2021 and years ended March 31, 2022, 2021 and 2020.

2. Non-adjusting items
2.1 Emphasis of matter paragraph in auditor’s report
Emphasis of matter paragraphs included in the auditors’ report on the financial statements as at and for the quarters ended June 30, 2022
and June 30 2021 and for the years ended March 31, 2022 and March 31 2021 which does not require any corrective adjustment in the
Restated Financial Information, are as follows:

Emphasis of Matter – June 30, 2022

We draw attention to Note 4.6 of the of Schedule 18 to the financial statements regarding the impact of the Covid 19 pandemic. The extent
to which any new wave of COVID-19 will impact the bank's results will depend on ongoing as well as future developments, including,
among other things, any new information concerning the severity of the COVID-19 pandemic, and any action to contain its spread or
mitigate its impact whether government-mandated or elected by us.

Our opinion is not modified in respect of this matter.

Note 25.6.1 of restated financial statements represents the note 3.4 of the of Schedule 18 of the audited financial statements for the
quarters ended June 2022.

Emphasis of Matter – June 30, 2021

We draw attention to Note 3.4 of the of Schedule 18 to the financial statements, which describes the extent to which the COVID-19
pandemic will continue to impact the Bank’s financial statements will depend on future developments, which are uncertain.

Our opinion is not modified in respect of this matter.

Note 25.6.2 of restated financial statements represents the note 3.4 of the of Schedule 18 of the audited financial statements for the
quarters ended June 2021.

Emphasis of Matter – March 31, 2022

We draw attention to Note 4.6 to the financial statement, which describes that the extent to which any new wave of COVID-19 impact
the Bank's results is uncertain as it depends upon the future trajectory of the pandemic.

Our opinion is not modified in respect of this matter.

Note 25.6.3 of restated financial statements represents the note 4.6 of the of Schedule 18 of the audited financial statements for the
year ended March 2022.

Emphasis of Matter – March 31, 2021

We draw attention to note 3.3 of the of Schedule 18 to the financial statements, which describes the extent to which the COVI D-19
pandemic will continue to impact the Bank’s financial statements will depend on future developments, which are uncertain.

Our opinion is not modified in respect of this matter.

Note 25.6.4 of restated financial statements represents the note 3.3 of the of Schedule 18 of the audited financial statements for the
year ended March 2021.

Emphasis of Matter – March 31, 2020

We draw attention to Schedule 18(3.1) to the financial statements, which describes that the extent to which the COVID-19 Pandemic
will impact the Bank's Financial statements will depend on future developments, which are highly uncertain. Considering the
circumstances as described in Schedule 18(3.1)10 the Financial statements, the Bank has made a provision of 7.7 crores for the year
ended March 31, 2020.

29
 Our opinion is not modified in respect of this matter.

Note 25.6.5 of restated financial statements represents the note 3.1 of the of Schedule 18 of the audited financial statements for the
year ended March 2020.

3. Material Regrouping and Reclassifications

Appropriate adjustments have been made in the restated summary statement of assets and liabilities, restated summary statement of profit
and loss and restated summary statement of cash flows in accordance with the requirements of the Securities and Exchange Board of India
(Issue of Capital and Disclosure Requirements) Regulations, 2018 (as amended), by reclassification of the corresponding items of income,
expense, assets, liabilities and cash flows in order to bring them in line with the groupings as per the audited financial statements of the
Bank as at and for the quarter ended June 30, 2022.

As per the Master Direction on Financial Statements - Presentation and Disclosures issued by the RBI dated August 30, 2021, provision/
(write-back) of mark-to-market depreciation on investments in AFS and HFT categories (net) has been classified under Other Income.
Hitherto, the Bank was classifying such Provisions / (write-back) under Provisions and Contingencies.

Further, in Annexure 7- Restated Statement of Reserves and Surplus, sub-heads of Investment Reserve Account and Investment Fluctuation
Reserve have been merged into Revenue and Other Reserves sub-head.

For the quarter ended June 2021

(₹ in millions)
As per Audited
Changes due Balance after
Particulars Financials for
to Regrouping Regrouping
June 30, 2021
Profit and Loss
Other Income 109.59 0.24 109.83
Provisions and Contingencies 104.01 0.24 104.25

As per Audited
Changes due Balance after
Particulars Financials for
to Regrouping Regrouping
June 30, 2021
Reserve and Surplus
Investment Reserve Account 13.00 (13.00) -
Investment Fluctuation Reserve 67.95 (67.95) -
Revenue and Other Reserves 19.06 80.95 100.01

For the year ended March 2021

(₹ in millions)
As per Audited
Changes due Balance after
Particulars Financials for
to Regrouping Regrouping
March 31, 2021
Profit and Loss
Other Income 458.58 (0.24) 458.34
Provisions and Contingencies 307.26 (0.24) 307.02

As per Audited
Changes due Balance after
Particulars Financials for
to Regrouping Regrouping
March 31, 2021
Reserve and Surplus
Investment Reserve Account 13.00 (13.00) -
Investment Fluctuation Reserve 67.95 (67.95) -
Revenue and Other Reserves 26.39 80.95 107.34

For the year ended March 2020

(₹ in millions)
As per Audited
Changes due Balance after
Particulars Financials for
to Regrouping Regrouping
March 31, 2020
Profit and Loss
Other Income 429.55 0.06 429.61
Provisions and Contingencies 268.63 0.06 268.69

As per Audited
Changes due Balance after
Particulars Financials for
to Regrouping Regrouping
March 31, 2020
Reserve and Surplus
Investment Reserve Account 13.14 (13.14) -
Investment Fluctuation Reserve 44.01 (44.01) -
Revenue and Other Reserves 16.13 57.15 73.28

30
 (₹ in millions)
As per Audited
Changes due Balance after
Particulars Financials for
to Regrouping Regrouping
March 31, 2020
Assets and Liabilities
Other Liabilities and Provisions- Bills Payable 179.63 (0.26) 179.37
Other Liabilities and Provisions- Others (including provisions) 133.45 0.26 133.71

4. Material Errors

There are no material errors that require any adjustment in the Restated Financial Statements.

31
Annexure 5- Significant Accounting Policies forming part of the Restated Financial Statements

5.1 CORPORATE INFORMATION

Capital Small Finance Bank Limited (‘the Bank’), a banking company incorporated under the Companies Act, 1956, is engaged in providing a
wide range of banking and financial services including retail & commercial banking and treasury operations. The Bank is governed by the
Banking Regulation Act, 1949 and the Companies Act, 2013. The name of the Bank has been included in the Second Schedule to the Reserve
Bank of India Act, 1934 vide Reserve Bank of India ('the RBI' or 'RBI') notification dated February 16, 2017. The Bank operates in India and
does not have any branch outside India.

5.2 BASIS OF PREPARATION

The Restated Financial Information of the Bank comprise of the Restated Statement of Assets and Liabilities as at June 30, 2022, June 30,
2021, March 31, 2022, 2021 and 2020, the Restated Statement of Profit & Loss, the Restated Cash Flow Statement for the quarters ended
June 30, 2022 and June 30, 2021 and for each of the years ended March 31, 2022, 2021 and 2020, the summary statement of significant
accounting policies and other explanatory information (collectively, the “Restated Financial Information”). The Restated Financial Information
is prepared by the management of the Bank for the purpose of inclusion in addendum to be filed against the Draft Red Herring Prospectus
(“DRHP”)/ Red Herring Prospectus (“RHP”) and Prospectus (collectively referred as the “Offer Documents”) filed in connection with its proposed
Initial Public Offer of equity shares (“IPO”) in terms of requirements of:

a. Section 26 of Part I of Chapter III of The Companies Act, 2013 (the “Act”);

b. Relevant provisions of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as
amended (“ICDR Regulations”); and

c. The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India (‘ICAI’),
as amended from time to time (the ‘Guidance Note’).

The Restated Financial Information have been compiled by the management from the audited interim financial statements of the Bank as at
and for the three month ended June 30, 2022 and June 30, 2021 and audited financial statements of the Bank as at and for each of the years
ended March 31, 2022, 2021 and 2020 -

a. prepared in compliance with the generally accepted accounting principles in India ("Indian GAAP") and in accordance with statutory
requirements prescribed under the Banking Regulation Act, 1949, circulars and guidelines issued by the RBI from time to time (RBI
guidelines), Accounting Standards referred to in Section 133 of the Companies Act, 2013 (the Act) read with Rule 7 of the Companies
(Accounts) Rules, 2014 and the Companies (Accounting Standards) Amendment rules, 2016 to the extent applicable and practices
prevailing within the banking industry in India, which have been approved by the Board of Directors at their meeting held on September 01,
2022, September 23, 2021,May 13, 2022, May 11, 2021 and May 16, 2020 respectively;

b. prepared after incorporating adjustments for the changes in accounting policies, material errors and regrouping/reclassifications
retrospectively in the financial years ended March 31, 2021, March 31 2020 and three month ended June 30, 2021 to reflect the same
accounting treatment as per the accounting policies and grouping/classifications followed as at and for the three-month period ended June
30, 2022;

c. there are no qualifications in the auditors’ reports on the audited financial statements of the Bank as at and for the three month periods
ended June 30, 2022 and June 30, 2021 and as at and for years ended March 31, 2022, 2021 and 2020; and

d. have been prepared in accordance with the Act, ICDR Regulations and the Guidance Note

The Restated Financial Information have been prepared under the historical cost convention and on accrual basis except where otherwise
stated.

The Restated Financial Information are presented in Indian Rupees rounded off to the nearest millions unless otherwise stated.

5.3 USE OF ESTIMATES

The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions considered
in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the period. The
management believes that the estimates used in preparation of financial statements are prudent and reasonable. Actual results could differ
from estimates and the differences between the actual results and the estimates are recognized prospectively in the period in which the results
are known/materialized.

32
5.4 PROPERTY, PLANT AND EQUIPMENT AND DEPRECIATION

5.4.1 Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment if any. The cost of an asset comprises
its purchase price and any cost directly attributable to bringing the asset to its working condition and location for its intended use.
Subsequent expenditure on fixed assets after its purchase is capitalized only if such expenditure results in an increase in the future
benefits from such asset beyond its previously assessed standard of performance.

5.4.2 Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Depreciation
on tangible fixed assets has been provided on the straight-line method as per the useful life prescribed in Schedule II to the Companies
Act, 2013. Leasehold improvements are amortized over the duration of the primary lease period or useful life whichever is less.

5.4.3 Intangible assets are amortized on a straight-line basis over their estimated useful life. The amortization period is reviewed at the end
of each financial year and the amortization period is revised to reflect the changed pattern, if any.

5.4.4 The rates of depreciation for key fixed assets, which are not lower than the rates, calculated on the basis of the useful life specified in
the Schedule II to the Companies Act, 2013, is as follows-

Asset Depreciation rate per annum

Computers 33.33%

Automated Teller Machines (ATMs) 9.50%

Mobile Phones 33.33%

Cash Sorting Machines 33.33%

Software and System Development Expenditure 20.00%

5.4.5 All other Assets are depreciated on the rates, calculated on the basis of useful life specified in the Schedule II to the Companies Act,
2013, as detailed below-

Asset Depreciation rate per annum

Plant and Machinery 6.33%

Office Equipment 19.00%

Furniture & Fixture 9.50%

Motor Car 11.88%

Two Wheeler 9.50%

Cycle 9.50%

5.4.6 Assets purchased/sold during the period are depreciated on a pro-rata basis.

5.4.7 An item of fixed asset is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The gain
or loss arising on de-recognition is recognized in the Profit & Loss account.

5.4.8 Gains or losses arising from disposal or retirement of tangible fixed assets are measured as the difference between the net disp osal
proceeds & the carrying amount of the asset and are recognized on net basis, within “Other Income” as Profit/(Loss) on sale of fixed
asset, as the case maybe, in the Profit and Loss account in the period of disposal or retirement.

5.4.9 Assets individually costing up to ₹5,000/- are depreciated fully in the year of acquisition. Further, profit on sale of premises by the Bank
is appropriated to capital reserve, net of transfer to Statutory Reserve and taxes, in accordance with RBI guidelines.

5.5 IMPAIRMENT OF ASSETS

The carrying amount of fixed assets is reviewed at the Balance Sheet date to determine if there are any indications of impairment based on
internal/ external factors. In case of impaired assets, the impaired assets, the impairment loss i.e. the amount by which the carrying amount of
the asset exceeds its recoverable value is charged to the Profit and Loss account to the extent the carrying amount of fixed assets exceeds its
estimated recoverable amount.

5.6 INVESTMENTS

Classification and valuation of the Bank's investments are carried out in accordance with the RBI guidelines which are as follows:

33
5.6.1 Categorization of Investments
The Bank classifies its investment at the time of purchase into one of the following three categories:
 Held to Maturity (HTM) – Securities acquired with the intention to hold till maturity.
 Held for Trading (HFT) – Securities acquired with the intention to trade.
 Available for Sale (AFS) – Securities which do not fall within the above two categories.

5.6.2 Classification of Investments

For the purpose of disclosure in the Balance Sheet, investments in India are classified under six groups viz., (i) Government Securities,
(ii) Other Approved Securities, (iii) Shares, (iv) Debentures and Bonds, (v) Investments in Subsidiaries and/or Joint Ventures and (vi)
Other Investments.

Investments outside India are classified under three groups viz., (i) Government Securities (Including local authorities), (ii) Subsidiaries
and/or Joint Ventures abroad and (iii) Other Investments.

5.6.3 Acquisition cost

5.6.3.1 Brokerage, commission, etc. pertaining to investments, paid at the time of acquisition is charged to the Profit and Loss account.
5.6.3.2 Cost of investments is computed based on the weighted average cost method.

5.6.4 Valuation of Investments

5.6.4.1 Held to Maturity – Each security in this category is carried at its acquisition cost or amortized cost. Any premium on acquisition of
the security is amortized over the balance period to maturity. The amortized amount is classified under Interest earned – Income
on investments (Item II of Annexure 18). The book value of the security is reduced to the extent of amount amortized during the
relevant accounting period. Diminution, other than temporary, is determined and provided for each investment individually.

5.6.4.2 Held for Trading – Securities are valued scrip-wise and depreciation / appreciation is aggregated for each classification. Net
appreciation in each classification is ignored, while net depreciation is provided for.

5.6.4.3 Available for Sale – Securities are valued scrip-wise and depreciation / appreciation is aggregated for each classification. Net
appreciation in each classification, is ignored, while net depreciation is provided for.

5.6.4.4 Market value of government securities (excluding treasury bills) is determined on the basis of the prices / YTM declared by the
Primary Dealers Association of India (PDAI) jointly with the Financial Benchmark India Private Limited (FBIL).

5.6.4.5 Treasury bills are valued at carrying cost, which includes discount amortized over the period to maturity.

5.6.4.6 Unquoted equity shares are valued at the break-up value, if latest balance sheet is available or at ₹1 as per the RBI guidelines.

5.6.4.7 Security purchase and sale transactions are recorded under Settlement Date method of accounting.

5.6.4.8 Provision for non-performing investments is made in conformity with the RBI guidelines.

5.6.4.9 Profit in respect of investments sold from HTM category is included in the Profit on Sale of Investments and an equivalent am ount
(net of taxes, if any, and net of transfer to Statutory Reserves as applicable to such profits) is appropriated from the Profit and
Loss account to Capital Reserve account.

5.6.4.10 In the event, provisions created on account of depreciation in the AFS or HFT categories are found to be in excess of the required
amount in any year, the excess is credited to the Profit and Loss account and an equivalent amount (net of taxes, if any, and net of
transfer to Statutory Reserves as applicable to such excess provisions) is appropriated to an Investment Reserve Account (IRA)
which forms the part of Revenue and Other Reserves under the head Reserve and Surplus in Balance Sheet. The balance in IRA
is used to meet provision on account of depreciation in AFS and HFT categories by transferring an equivalent amount to the Profit
and Loss Appropriation account as and when required.

5.6.4.11 Units of the scheme of Mutual Funds are valued at the lower of cost and Net asset value (NAV) provided by the respective schemes
of Mutual Funds.

5.6.4.12 In accordance with the RBI guidelines, repurchase and reverse repurchase transactions in government securities and corporate
debt securities are reflected as borrowing and lending transactions respectively.

5.6.4.13 Borrowing cost on repo transactions is accounted for as interest expense and revenue on reverse repo transactions is
accounted for as interest income.

5.6.5 Broken period Interest

Broken period interest on debt instruments is treated as a Revenue item.

34
 5.6.6 Transfer of Security between Categories

Transfer of Securities from one category to another is carried out as per the RBI guidelines at acquisition cost or book value or market
value, whichever is lower, on the date of transfer and the depreciation, if any, on such transfer is fully provided for.

5.7 ADVANCES

5.7.1 Advances are classified as per the RBI guidelines into standard, sub-standard, doubtful and loss assets. Advances are stated net of
specific loan loss provision.

5.7.2 Specific provisions for non-performing advances and floating provisions are made in conformity with the RBI guidelines.

5.7.3 In addition, the Bank considers accelerated provisioning based on past experience, evaluation of securities and other related factors.

5.7.4 Provisions on Standard Assets are made @ 0.40% of the outstanding advances. Further, as per the RBI guidelines, the standard asset
provisioning on individual housing loans sanctioned on and after June 07, 2017, is made @ 0.25%. However, provision for banks direct
advances to agriculture and SME sectors is made @ 0.25%, medium enterprises sector is made @ 0.4%, commercial real estate sector
is made @ 1% and housing loans at teaser rates @ 2% in pursuance to the RBI circulars issued from time to time. Further the same
is shown under the head ‘Other Liabilities and Provisions’ of the restated statement of assets and liabilities.

5.7.5 Amounts recovered during the period against bad debts written off in earlier accounting periods are credited to the Profit and Loss
account.

5.7.6 Provision no longer considered necessary in the context of the current status of the borrower as a performing asset, are written back to
the Profit and Loss account to the extent such provisions were charged to the Profit and Loss account.

5.7.7 The Bank considers a restructured account as one where the Bank, for economic or legal reasons relating to the borrower’s fin ancial
difficulty, grants to the borrower concessions that the Bank would not otherwise consider. Restructuring would normally involve
modification of terms of the advance/ securities, which would generally include, among others, alteration of repayment period / repayable
amount / the amount of instalments/ rate of interest (due to reasons other than competitive reasons). Restructured accounts are
classified as such by the Bank only upon approval and implementation of the restructuring package. Necessary provision for diminution
in the fair value of a restructured account is made and classification thereof is as per the extant RBI guidelines. Provision for restructuring
is considered at borrower level.

5.7.8 The Bank enters into transactions for the sale/purchase of Priority Sector Lending Certificates (PSLCs) through the RBI platform. There
is no transfer of risks or loan assets. The net fee received for the sale of PSLCs is recorded as ‘Miscellaneous Income’ (Annexure 19)
and the net expense paid on purchase of PSLC is recorded as ‘Miscellaneous Expense’ (Annexure 21).

5.8 NET PROFITS

The Net Profits have been arrived at after:

 Provisions for Income Tax in accordance with the statutory requirements

 Provisions on Advances
 Adjustments to the value of Investments
 Other usual and necessary provisions

5.9 REVENUE RECOGNITION

Income is accounted on Accrual basis except in the following cases:

 Income on Non-Performing Assets is recognized on realization basis as per the RBI guidelines.
 Interest which remains overdue for 90 days on securities not covered by Government Guarantee is recognized on realization basis as per
the RBI guidelines.
 Commission (other than on Deferred Payment Guarantees and Government Transactions), Exchange and Brokerage are recognized on
realization basis. However, Commission, Exchange and Brokerage on loan accounts is recognized as and when charged to the borrower
account.
 Interest on Overdue Bills is recognized on Realization Basis as per the RBI guidelines.

5.10 EMPLOYEE BENEFITS

5.10.1 Provident Fund: As per the statute, contribution towards provident fund for certain employees is made to the regulatory authorities,
where the Bank has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Bank does not carry
any further obligations, apart from the contributions made on a monthly basis.

35
 5.10.2 Gratuity: Every employee is entitled to a benefit equivalent to 15 days’ salary last drawn for each completed year of service in line with
the Payment of Gratuity Act, 1972. The same is payable at the time of separation from the Bank or retirement, whichever is earlier. The
benefits vest after five years of continuous service.

The Gratuity scheme of the Bank is a defined benefit scheme and the expense for the period is recognized on the basis of actu arial
valuation at the Balance Sheet date. The present value of the obligation under such benefit plan is determined based on independent
actuarial valuation using the Projected Unit Credit Method which recognizes each period of service that gives rise to additional unit of
employee benefit entitlement and measures each unit separately to build up the final obligation. Actuarial losses/ gains are recognized
in the Profit and Loss Account in the year in which they arise. Payment obligations under the Group Gratuity scheme are manag ed
through a fund maintained by ICICI Prudential Life Insurance under separate Trust set up by the Bank.

5.10.3 Compensated absences: Provision for compensated absences is made on the basis of actuarial valuation as at the Balance Sheet
date. The actuarial valuation is carried out using the Projected Unit Credit Method.

5.10.4 Share-based payments: The measurement and disclosure of employee stock options offered by the Bank is as per the Guidance Note
on Accounting for Employee Share-based Payments issued by the Institute of Chartered Accountants of India.

The cost of equity-settled transactions for stock options granted after the period ending March 31, 2021 is measured using the fair value
method and for stock options granted prior to such period, is measured using the intrinsic value method. The costs are recogn ized,
together with a corresponding increase in the ‘Stock options outstanding account’ under Annexure 7- Restated Statement of Revenue
& Other Reserves Account. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting
date reflects the extent to which the vesting period has expired and the Bank’s best estimate of the number of equity instruments that
will ultimately vest. The expense or credit recognized in the statement of profit and loss for a period represents the movement in
cumulative expense recognized as at the beginning and end of that period and is recognized in employee benefits expense.

5.10.5 The Code on Social Security, 2020 relating to employee benefits during employment and post-employment benefits has received
Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code
will come into effect has not been notified.
5.11 LEASE

5.11.1 Lease arrangements where risk and rewards incidental to ownership of an asset substantially vest with the lessor are recognized as
operating leases.
5.11.2 Lease rentals under operating lease are charged to the Profit and Loss account on straight line basis over the lease term in accordance
with AS-19, Leases.

5.12 SEGMENT REPORTING

The disclosure relating to segment information is in accordance with AS-17, Segment Reporting and as per the RBI guidelines.

Business Segment
The Bank’s business has been segregated into four segments namely Treasury, Wholesale Banking, Retail Banking and other Banking
Operations.

Geographical Segment
Since the business operations of the Bank are primarily concentrated in India, the Bank is considered to operate only in the domestic
segment.

5.13 EARNINGS PER SHARE

5.13.1 Earnings per share is calculated by dividing the Net Profit or Loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
5.13.2 Diluted earnings per equity share are computed using the weighted average number of equity shares and dilutive potential equity shares
outstanding as at end of the period except when its results are anti-dilutive.

5.14 TAXES

Tax expenses comprise of current and deferred taxes. Current tax is measured at the amount expected to be paid to the tax authorities in
accordance with the Income Tax Act, 1961. Deferred taxes reflect the impact of current year timing differences between taxable income
and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on th e tax rates
and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized, in general, only to the
extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can
be realized; where there is unabsorbed depreciation and/or carry forward of losses under tax laws, deferred tax assets are recognized only
if there is virtual certainty supported by convincing evidence that such deferred tax asset can be realized against future taxable income.

36
 Current tax assets and liabilities and deferred tax assets and liabilities are off-set when they relate to income taxes levied by the same
taxation authority, when the Bank has a legal right to off-set and when the Bank intends to settle on a net basis.

Current tax assets and liabilities and deferred tax assets and liabilities are calculated at the rates u/s Section 115 BAA of the Income Tax
Act 1961. Accordingly, as per the section 115 JB, Minimum Alternate Tax is not applicable.

5.15 PROVISIONS AND CONTINGENT LIABILITIES & CONTINGENT ASSETS

5.15.1 A provision is recognized when there is a present obligation as a result of past events and it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions
are not discounted to its present value and are determined based on best estimate required to settle the obligation at the Balance Sheet
date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

5.15.2 A disclosure of contingent liability is made when there is:

 possible obligation arising from a past event, the existence of which will be confirmed by occurrence or non-occurrence of one
or more uncertain future events not within the control of the Bank; or

 a present obligation arising from a past event which is not recognized as it is not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

5.15.3 When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no
provision or disclosure is made.
5.15.4 Contingent assets, if any, are not recognized in the financial statements since this may result in the recognition of income that may
never be realized.
5.15.5 In cases where the available information indicates that the loss on the contingency is reasonably possible but the amount of loss cannot
be reasonably estimated, a disclosure to this effect is made in the financial statements. In case of remote possibility, neither provision
nor disclosure is made in the financial statements.

5.16 CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash in hand (including balance in ATM), balances with the RBI, balances with other banks in current
accounts and money at call and short notice.

5.17 TRANSACTION INVOLVING FOREIGN EXCHANGE

5.17.1 All transactions in foreign currency are recognized at the exchange rate as notified by the Foreign Exchange Dealers Association of
India (FEDAI).
5.17.2 Foreign currency monetary items are reported using the exchange rate prevailing at the Balance Sheet date.

5.17.3 Non-monetary items which are measured in terms of historical cost denominated in foreign currency are reported using the exchange
rate as notified by Foreign Exchange Dealers Association of India (FEDAI) at the date of transaction. Non-monetary items which are
measured at Fair Value or other similar value denominated in a foreign currency are translated using the exchange rate at the date
when such value is determined.

5.17.4 Exchange differences arising on settlement of monetary items or on reporting of such monetary items at rates different from those at
which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or expense
in the year in which they arise.

37
Annexures forming part of the Restated Statement of Assets and Liabilities
(All amounts in ₹million except otherwise stated)

As on As on As on As on As on
PARTICULARS
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31,2020

ANNEXURE 6- RESTATED STATEMENT OF CAPITAL

Authorised Capital

5,00,00,000 equity shares of ₹10 each (5,00,00,000- March 500.00 500.00 500.00 500.00 350.00
31, 2022; June 30, 2021; March 31, 2021 and 3,50,00,000-
March 31, 2020)

Issued, Subscribed and Paid-up Capital

3,42,34,104 equity shares issued of ₹10 each fully paid-up 342.34 340.03 340.44 339.10 338.07
(March 31, 2022- 3,40,44,091; June 30, 2021- 3,40,02,967;
March 31, 2021- 3,39,10,681 and March 31, 2020-
3,38,07,217)

Total 342.34 340.03 340.44 339.10 338.07

ANNEXURE 7 – RESTATED STATEMENT OF RESERVES AND SURPLUS

I. Statutory Reserves
Opening Balance 729.60 573.18 573.18 471.22 407.77
Additions during the period - - 156.42 101.96 63.45
Total 729.60 573.18 729.60 573.18 471.22

II. Capital Reserves

Opening Balance 0.16 0.16 0.16 0.16 0.16
Total 0.16 0.16 0.16 0.16 0.16

III. Special Reserves

Opening Balance 36.42 18.38 18.38 11.45 10.33
Additions during the period - - 18.04 6.93 1.12
Total 36.42 18.38 36.42 18.38 11.45

IV. Share Premium

Opening Balance 2,233.89 2,206.86 2,206.86 2,185.90 937.27
Additions during the period 38.84 18.70 27.03 20.96 1,289.01
Deductions during the period - - - - (40.38)
Total 2,272..73 2,225.56 2,233.89 2,206.86 2,185.90

V. Revenue and Other Reserves

Opening Balance 147.09 107.34 107.34 73.28 25.21
Additions during the period 3.72 3.25 55.04 46.06 48.07
Deductions during the period 22.92 10.58 15.29 12.00 -
Total 127.89 100.01 147.09 107.34 73.28

VI. Balance in Profit & Loss Account 1,853.05 1,384.71 1,670.21 1,262.88 987.72

Grand Total 5,019.85 4,302.00 4,817.37 4,168.80 3,729.73

38
 As on As on As on As on As on
PARTICULARS
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31,2020

ANNEXURE 8 – RESTATED STATEMENT OF DEPOSITS

A I Demand Deposits
From banks 0.12 0.62 0.02 0.65 2.20
From others 2,205.60 2,035.53 2328.96 2,072.01 1,330.97
II. Saving Bank Deposits 24,377.70 20,158.31 23,165.03 18,853.68 14,813.57
III Term deposits
From banks 434.75 840.57 809.36 565.45 1,722.67
From others 34,604.78 31,794.00 34,160.22 30,718.91 26,596.82
Total 61,622.95 54,829.03 60,463.59 52,210.70 44,466.23

BI Deposits of branches in India 61,622.95 54,829.03 60,463.59 52,210.70 44,466.23

II Deposits of branches outside India - - - - -
Total 61,622.95 54,829.03 60,463.59 52,210.70 44,466.23

ANNEXURE 9- RESTATED STATEMENT OF BORROWINGS

I. Borrowings in India
i) Reserve Bank of India - - - - 810.00
ii) Other Banks - - - - -
iii)Other Institutions and Agencies 3,179.00 3,277.00 2,836.90 4,246.00 1,792.00
iv)Unsecured Redeemable Non-Convertible Bonds 2,079.10 1,757.40 1,757.40 1,531.20 1,217.20
(Subordinated debt - Tier II Capital)
v)Hybrid debt Capital instrument issued as debentures 390.00 390.00 390.00 390.00 390.00
II. Borrowings outside India - - - - -
Total (I + II) 5,648.10 5,424.40 4,984.30 6,167.20 4,209.20

Secured Borrowings included in I and II above 3,179.00 3,277.00 2836.90 4,246.00 2,602.00

ANNEXURE 10- RESTATED STATEMENT OF OTHER LIABILITIES

AND PROVISIONS

I. Bills Payable 403.13 266.91 333.77 419.44 179.37

II. Inter-office adjustments (net) - 3.75 3.98 - 0.36
III. Interest accrued 69.68 63.16 55.51 53.59 56.33
IV Provision for taxes (net of taxes paid in advance/ TDS) 45.48 9.43 26.09 - -
V. Others (including provisions) 173.28 205.93 230.12 178.74 133.71
VI. Contingent provision against standard assets 277.60 213.85 284.04 174.81 185.77
Total 969.17 763.03 933.51 826.58 555.54

ANNEXURE 11- RESTATED STATEMENT OF CASH AND BALANCE

WITH RESERVE BANK OF INDIA

I. Cash in hand (including Cash at ATM) 657.58 628.00 552.57 579.61 610.17
II. Balance with Reserve Bank of India
a) in Current Accounts 2,885.81 2,293.54 2,517.38 1,917.63 1,602.16
b) in Other Accounts 660.00 5,270.00 570.00 4,720.00 -
Total (I +II) 4,203.39 8,191.54 3,639.95 7,217.24 2,212.33

ANNEXURE 12- RESTATED STATEMENT OF BALANCE WITH

BANKS AND MONEY AT CALL & SHORT NOTICE

I. In India

I) Balance with banks

a) in Current Accounts 613.87 446.89 335.35 194.04 112.19
b) in Other Deposit Accounts 6,356.44 6,988.38 6,215.26 5,492.95 4,333.33

II) Money at call and short notice

a) With Banks - - - - -
b) With other Institutions - - - - 1,499.64
Total (I) 6,970.31 7,435.27 6,550.61 5,686.99 5,945.16

39
 As on As on As on As on As on
PARTICULARS
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31,2020

II Outside India
a) in Current Accounts - - - - -
b) in Other Deposits Accounts - - - - -
c) Money at call and short notice - - - - -
Total (II) - - - - -

Grand Total (I+II) 6,970.31 7,435.27 6,550.61 5,686.99 5,945.16

ANNEXURE 13- RESTATED STATEMENT OF INVESTMENTS

I Investments in India in
i) Government securities 13,773.48 11,803.72 13,555.23 12,107.36 10,518.75
ii) Other approved securities - - - - -
iii) Shares 15.40 15.40 15.40 15.40 -
iv) Debentures and Bonds - - - - -
v) Subsidiaries and/or joint ventures - - - - -
vi) Others - - - - -
Total (I) 13,788.88 11,819.12 13,570.63 12,122.76 10,518.75
II Investments outside India in
i) Government securities (including local authorities) - - - - -
ii) Subsidiaries and/or joint ventures abroad - - - - -
iii) Other Investments - - - - -
Total (II) - - - - -

Grand Total (I+II) 13,788.88 11,819.12 13,570.63 12,122.76 10,518.75

III. Gross value of Investments 13,788.88 11,819.12 13,570.63 12,122.76 10,518.75

Provision for Depreciation - - - (0.24) -
Net value of Investments 13,788.88 11,819.12 13,570.63 12,122.52 10,518.75

ANNEXURE 14- RESTATED STATEMENT OF ADVANCES

A i) Bills purchased and discounted - - - - 4.92

ii) Cash credits, overdrafts and loans repayable on demand 22,581.37 18,466.92 23,048.89 19,438.52 18,670.93
24,082.79 17,955.03 23,299.11 17,830.34 14,407.23
iii) Term Loans
Total 46,664.16 36,421.95 46,348.00 37,268.86 33,083.08

B i) Secured by Tangible Assets 45,670.95 35,392.51 45,258.79 36,231.28 32,783.73

ii) Covered by Bank/ Government Guarantees 888.69 857.80 972.51 839.91 -
Unsecured
104.52 171.64 116.70 197.67 299.35
iii)
Total 46,664.16 36,421.95 46,348.00 37,268.86 33,083.08
C I) Advances in India
i) Priority Sector (Refer note 25.2 of Annexure 22) 32,200.30 25,029.49 32,299.60 25,577.63 22,913.65
ii) Public Sector - - - - -
0.10 - - - 0.10
iii) Banks
14,463.76 11,392.46 14,048.40 11,691.23 10,169.33
iv) Other
Total (I) 46,664.16 36,421.95 46,348.00 37,268.86 33,083.08
II) Advances outside India
i) Due from Banks - - - - -
ii) Due from Others - - - - -
a) Bills Purchased & Discounted - - - - -
b) Syndicated Loans - - - - -
c) Others - - - - -
Total (II) - - - - -

Grand Total (I+II) 46,664.16 36,421.95 46,348.00 37,268.86 33,083.08

40
 As on As on As on As on As on
PARTICULARS
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31,2020

ANNEXURE 15- RESTATED STATEMENT OF FIXED ASSETS

I. Premises
At cost as on 31st March of the preceding year 107.64 64.52 64.52 64.52 64.52
Additions during the period - - 43.12 - -
Deductions during the period - - - - -
Total 107.64 64.52 107.64 64.52 64.52
Depreciation
As at 31st March of the preceding year 0.72 - - - -
Charge for the period 0.34 - 0.72 - -
Total 1.06 - 0.72 - -
Net Block I 106.58 64.52 106.92 64.52 64.52

II. Other Fixed Assets (including furniture & fixtures)

At cost as on 31st March of the preceding year 1,728.69 1,646.16 1,646.16 1,530.63 1,308.52
Additions during the period 72.72 27.26 91.81 129.26 225.63
Deductions during the period 0.74 0.30 9.28 13.73 3.52
Total 1,800.67 1,673.12 1,728.69 1,646.16 1,530.63
Depreciation
As at 31st March of the preceding year 999.74 845.15 845.15 688.91 537.86
Charge for the period 66.64 41.42 160.44 164.92 153.37
Reversed on sale 0.23 0.18 5.85 8.69 2.32
Total 1,066.15 886.39 999.74 845.14 688.91

Net Block II 734.52 786.73 728.95 801.02 841.72

Grand Total (I & II) 841.10 851.25 835.87 865.54 906.24

ANNEXURE 16- RESTATED STATEMENT OF OTHER ASSETS

i) Inter-office adjustments (net) 0.97 - - - -

ii) Interest accrued 876.56 773.50 391.53 407.87 491.13
iii) Taxes paid in advance/ TDS (net of provision for taxes) - - - 15.69 14.80
iv) Stationery & Stamps 4.33 3.26 3.64 2.91 2.50
v) Non-banking assets acquired in satisfaction of claims - - - - -
vi) Others (includes deposits placed with SIDBI & NABARD
on account of shortfall in priority sector target amounting
to ₹ 2.50 mn as on June 30,2022, ₹2.40 mn as on March 252.71 162.60 198.98 124.76 124.78
31, 2022 & nil as on June 30, 2021 ,March 31, 2021 and
March 31,2020)
Total 1,134.57 939.36 594.15 551.23 633.21

ANNEXURE 17- RESTATED STATEMENT OF CONTINGENT LIABILITIES

i) Claims against the Bank not acknowledged as debts - - - - -

ii) Liability for partly paid investments - - - - -
iii) Liability on account of outstanding forward exchange
contracts - - - - -
iv) Guarantees given on behalf of constituents
(a) In India 324.38 300.12 370.49 327.14 321.33
(b) Outside India - - - - -
v) Acceptances, endorsements and other obligations - 13.38 13.64 13.16 13.56
vi) Other items for which bank is contingently liable. 70.35 45.35 72.08 43.21 35.82
Total 394.73 358.85 456.21 383.51 370.71

41
Annexures forming part of the Restated Statement of Profit and Loss
(All amounts in ₹million except otherwise stated)

Quarter ended Quarter ended Year ended Year ended Year ended
PARTICULARS June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31,2020
(3 months) (3 months) (12 months) (12 months) (12 months)

ANNEXURE 18- RESTATED STATEMENT OF INTEREST EARNED

I. Interest/ discount on advances/ bills 1,171.26 1,001.53 4,373.02 3,724.31 3,306.60

II. Income on investments 236.23 208.92 860.23 846.81 729.05
III. Interest on balance with Reserve Bank of India
and inter-bank funds 117.32 153.91 548.88 543.27 545.67
IV. Others 0.02 - 0.05 - 0.03
Total 1,524.83 1,364.36 5,782.18 5,114.39 4,581.35

ANNEXURE 19- RESTATED STATEMENT OF OTHER INCOME

I. Commission, exchange and brokerage 93.32 71.25 426.34 295.52 288.41

II. Profit/(Loss) on sale of investments (Net) 0.48 20.31 29.50 83.99 57.13
III. Profit/(Loss) on revaluation of investments (Net) - 0.24 0.24 (0.24) 0.06
IV. Profit/(Loss) on sale of Land, building & other assets (Net) (0.12) (0.01) (0.06) 0.02 (0.18)
V Profit/(Loss) on Exchange Transactions (Net) 10.59 6.75 27.49 20.76 35.80
VI Income earned by way of dividends etc. - - - - -
VII Miscellaneous income 0.03 11.29 58.34 58.29 48.39
Total 104.30 109.83 541.85 458.34 429.61

ANNEXURE 20- RESTATED STATEMENT OF INTEREST EXPENDED

I. Interest on deposits 733.98 695.34 2,854.21 2,783.14 2,538.39

II. Interest on Reserve Bank of India/ inter-bank borrowings 0.63 0.05 1.22 20.03 6.44
III. Others 91.61 98.48 373.93 325.11 310.29
Total 826.22 793.87 3,229.36 3,128.28 2,855.12

ANNEXURE 21- RESTATED STATEMENT OF OPERATING EXPENSES

I. Payments to and provisions for employees 266.44 251.04 1,065.60 904.30 846.42
II. Rent, taxes and lighting 62.74 63.21 259.09 258.65 249.65
III. Printing and stationery 7.87 7.44 24.02 21.99 31.46
IV. Advertisement and publicity 1.63 1.02 3.81 1.76 3.82
V. Depreciation on bank property 66.98 41.42 161.16 164.92 153.37
VI. Directors fees, allowances & expenses 1.94 0.92 4.95 2.32 2.67
VII Auditors fees and expenses 0.80 1.00 8.27 4.89 4.87
VIII Law charges - - - 0.05 0.02
IX Postage, Telegrams, Telephones etc. 9.29 6.27 32.90 28.57 25.57
X Repairs and maintenance 19.31 12.91 76.30 61.38 52.18
XI Insurance 23.58 20.00 82.90 70.72 57.46
XII Other expenditure 56.31 49.01 243.53 210.04 205.84
Total 516.89 454.24 1,962.53 1,729.59 1,633.33

42
 ANNEXURE 22- Notes forming part of the restated summary statements

22.1 Capital
22.1.1 Capital to risk-weighted asset ratio (‘Capital Adequacy Ratio’) of the Bank, as on June 30, 2022 has been calculated by using the capital
measurement approaches as detailed below:
(a) Credit Risk has been measured by using Basel II Standardized Approach for credit risk, in accordance with the RBI circular no DBR. NBD.
No.26/ 16.13.218/2016-17, dated October 06, 2016 on “Operating Guidelines for Small Finance Banks”.

(b) Market Risk and Operation Risk have not been considered for measurement of Capital Adequacy Ratio as per the letter issued by the
Reserve Bank of India vide reference number DBR.NBD.No.4502/16.13.218/2017-18 dated November 08, 2017 to all the small finance
banks.

22.1.2 Regulatory Capital

Composition of Regulatory Capital is as under-

(₹ in millions)
Quarter ended Quarter ended Year ended Year ended Year ended
S. No. Particulars June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020

1. Common Equity Tier 1 Capital (CET 1) 5,123.94 4,462.43 4,908.56 4,335.80 3,955.04
2. Additional Tier 1 Capital - - - - -
3. Tier 1 Capital (1+2) 5,123.94 4,462.43 4,908.56 4,335.80 3,955.04
4. Tier 2 Capital 2,297.09 1,998.02 2,017.03 1,680.68 1,442.58
5. Total Capital (Tier 1 + Tier 2) 7,421.03 6,460.45 6,925.59 6,016.48 5,397.62
6. Total Risk Weighted Assets (RWAs) 38,032.17 30,595.85 37,168.97 30,380.21 28,241.45
7. CET 1 Ratio (CET 1 as a percentage of RWAs) 13.47% 14.59% 13.21% 14.27% 14.00%
8. Tier 1 Ratio (Tier 1 capital as a percentage of RWAs) 13.47% 14.59% 13.21% 14.27% 14.00%
9. Tier 2 Ratio (Tier 2 capital as a percentage of RWAs) 6.04% 6.53% 5.42% 5.53% 5.11%
10. Capital to Risk Weighted Assets Ratio (CRAR) (Total
19.51% 21.12% 18.63% 19.80% 19.11%
Capital as a percentage of RWAs)
11. Leverage Ratio 6.82% 6.66% 6.73% 6.67% 7.27%
12. Percentage of the shareholding of
(a) Government of India
- - - - -
(b) State Government
(c) Sponsor Bank
13. Amount of paid-up equity capital raised during the
1.90 0.93 1.34 1.03 53.26
period
14. Amount of non-equity Tier 1 capital raised during the
period of which
(a) Basel III compliant Perpetual Non-Cumulative
- - - - -
Preference Shares
(b) Basel III compliant Perpetual Debt Instruments
15. Amount of Tier 2 capital raised during the period 321.70 313.50 313.50 314.00 -

22.1.3 Movement in Capital during the period is as below:

(₹ in millions)

Quarter ended Quarter ended Year ended Year ended Year ended
Particulars
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020

1. Amount of equity (Face Value) raised on

private placement under preferential
allotment/ allotment of employee stock 1.90 0.93 1.34 1.03 53.26
options
2. Amount of debt raised as Upper Tier-II
capital - - - - -

3. Amount of subordinated debt raised as

Tier-II capital (Lower Tier-II capital) 321.70 313.50 313.50 314.00 -

43
22.1.4 Tier I Capital Infusion
(₹ in millions)

Quarter ended Quarter ended Year ended Year ended Year ended
Particulars June 30, 2022 June 30, 2021 March 31,2022 March 31, 2021 March 31, 2020

Opening Balance 340.44 339.10 339.10 338.07 284.81

Addition pursuant to Amount of
equity raised on private placement
basis under preferential allotment/ 1.90 0.93 1.34 1.03 53.26
allotment of employee stock
options
Closing Balance 342.34 340.03 340.44 339.10 338.07

22.1.5 Tier 2 Capital

Issue during the period

The Bank has raised Unsecured Redeemable Non-Convertible Lower Tier II Bond, detailed as below:

(₹ in millions)
Date of
Period Series Coupon (%) Tenure Amount
Allotment
Year ended March
Series XVIII 18-Nov-20 9.25% 10 Years 314.00
2021

Quarter ended
June 2021 and
Series XIX 29-Jun-21 9.25% 10 Years 313.50
Year ended March
2022

Quarter ended
Series XX 12-May-22 9.25% 10 Years 321.70
June 2022

Maturity during the period

The following Unsecured Redeemable Non-Convertible Lower Tier II Bonds have matured:
(₹ in millions)

Period Series Date of Maturity Coupon (%) Amount

Series I 17-Sep-19 11.00% 50.30

Series II 29-Sep-19 11.00% 36.00

Year ended March 2020
Series III 24-Oct-19 11.00% 27.80

Series IV 27-Mar-20 10.00% 55.50

Quarter ended June 2021 Series V 04-Jun-21 11.00% 57.10

and year ended March
2022 Series VI 18-Jun-21 11.00% 30.20

Maturity Profile of total debentures outstanding as on June 30, 2022:

Unsecured Redeemable Non-Convertible Lower Tier II Bonds

(₹ in millions)

Series Amount Maturity Date

11% Tier II Bonds Series VII 60.40 25-Aug-22

11% Tier II Bonds Series VIII 50.30 04-May-23

11% Tier II Bonds Series IX 31.00 20-May-23

11% Tier II Bonds Series X 94.70 24-May-24

10.50% Tier II Bonds Series XII 120.00 17-Feb-26

44
 9.75% Tier II Bonds Series XIV 159.00 25-Nov-26

9.25% Tier II Bonds Series XV 209.50 15-May-28

10% Tier II Bonds Series XVI 180.00 28-Feb-29

10% Tier II Bonds Series XVII 225.00 31-Mar-29

9.25% Tier II Bonds Series XVIII 314.00 18-Nov-30

9.25% Tier II Bonds Series XIX 313.50 29-Jun-31

9.25% Tier II Bonds Series XX 321.70 12-May-32

TOTAL 2,079.10

Unsecured Redeemable Non-Convertible Upper Tier II Bonds

(₹ in millions)
Series Amount Maturity Date
11.75% Upper Tier II Bonds Series XI 140.00 31-Mar-30
11.75% Upper Tier II Bonds Series XIII 250.00 30-Mar-31

TOTAL 390.00

22.1.6 Proposed Dividend

(₹ in millions)

Quarter ended Quarter ended Year ended Year ended Year ended
Particulars June 30, 2022 June 30, 2021 March 31,2022 March 31, 2021 March 31, 2020

Dividend per equity share (₹) - - 1.00 0.80 -

Amount of dividend - - 34.23 27.13 -

According to the AS 4 - ‘Contingencies and events occurring after the balance sheet date’ as notified by the Ministry of
Corporate Affairs through amendments to Companies (Accounting Standards) Amendment Rules, 2016, the Bank has not
accounted proposed dividend (including tax) as a liability for the accounting periods. However, the Bank has reckoned
proposed dividend in determining capital funds for computing capital adequacy ratio.

22.1.7 Drawdown from Reserves

(₹ in millions)

Quarter ended Quarter ended Year ended Year ended Year ended
Particulars June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020

Investment Reserve Account - - - 0.14 -

Securities Premium Account - - - - 40.38**
Revenue & Other Reserves Account* 22.92 10.58 15.29 11.86 -
*The drawdown from Revenue and Other Reserves Account is against the employee stock options allotted during the period.
** The drawdown from the Securities Premium is against the share issue expenses incurred on the equity capital raised during the period.

22.1.8 Creation/(Reversal) of Investment Reserve Account

The Bank has appropriated amounts as stated under to Investment Reserve Account, net of applicable taxes and statutory reserve
requirement, as per the applicable RBI guidelines.
(₹ in millions)
Quarter ended Quarter ended Year ended Year ended Year ended
Period June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020
During the period - - 0.14 (0.14) -

Closing Balance 13.14 13.00 13.14 13.00 13.14

45
 23 Asset Liability Management

23.1 Maturity Pattern of certain items of Assets & Liabilities is as under:

(₹ in millions)

Over 2 Over 3 Over 6 Over 3

31 days Over 1
months months months year
2-7 8-14 15 to 30 and year and Above 5
As on Next day and upto and and and Total
days days days upto 2 upto 3 years
3 upto 6 upto 1 upto 5
months years
months months year years

June 30, 2022 1,737.62 1,455.61 1,455.19 1,461.99 560.68 604.51 1,653.85 3,270.31 26,018.28 5,601.80 2,844.32 46,664.16
June 30, 2021 121.98 39.65 108.86 2,768.56 482.97 524.22 1,380.90 2,657.79 22,354.80 4,074.44 1,907.78 36,421.95
Loans & March 31, 2022 1,753.28 1,491.84 1,466.70 1,470.35 510.18 542.14 1,655.46 3,126.46 26,276.35 5,339.13 2,716.11 46,348.00
Advances March 31, 2021 110.59 30.69 99.80 5,108.93 429.35 478.11 1,454.34 2,854.42 20,942.20 3,895.96 1,864.47 37,268.86
March 31, 2020 - - - - - 5,121.25 1,234.73 2,532.91 19,245.18 3,532.99 1,416.02 33,083.08
June 30, 2022 2,393.05 93.02 41.70 478.80 148.21 128.10 371.08 792.50 4,603.65 73.70 4,665.07 13,788.88
June 30, 2021 1,732.86 69.61 33.59 194.07 141.18 57.07 175.58 384.27 3,901.07 35.35 5,094.47 11,819.12
March 31, 2022 2,483.90 75.69 24.36 433.62 81.18 103.21 231.58 441.33 4,331.27 65.75 5,298.74 13,570.63
Investment
March 31, 2021 2,467.42 60.45 38.77 202.62 74.28 76.68 243.86 366.29 3,689.62 51.85 4,850.68 12,122.52
March 31, 2020 2,632.90 37.52 21.16 71.91 183.56 246.68 356.90 769.66 2,821.63 72.81 3,304.02 10,518.75
June 30, 2022 291.03 497.35 184.44 2,672.46 797.37 746.98 2,268.00 4,464.75 25,449.71 123.80 24,127.06 61,622.95
June 30, 2021 265.19 312.65 187.90 1,072.56 800.43 312.04 990.37 2,118.69 21,646.12 57.17 27,065.91 54,829.03
Deposits March 31, 2022 263.63 361.74 139.60 2,311.84 474.78 578.22 1,307.09 3,152.33 23,824.21 79.60 27,970.55 60,463.59
March 31, 2021 212.10 293.84 116.31 988.12 418.24 344.43 1,372.82 2,058.63 20,466.78 59.78 25,879.66 52,210.70
March 31, 2020 1,713.06 215.69 116.80 413.44 1,055.27 1,389.07 2,044.79 4,199.65 15,387.89 244.32 17,706.25 44,466.23
June 30, 2022 - - 76.40 - 536.80 101.40 224.20 804.70 1,671.90 279.00 1,953.70 5,648.10
June 30, 2021 - - 135.00 - 451.00 51.00 225.00 610.00 2,041.40 120.00 1,791.00 5,424.40
Borrowing March 31, 2022 - - 69.30 - 69.30 69.30 668.30 705.80 1,491.30 279.00 1,632.00 4,984.30
March 31, 2021 16.00 - 835.00 - 51.00 138.30 653.00 730.00 2,051.70 214.70 1,477.50 6,167.20
March 31, 2020 - - 110.00 - 26.00 26.00 678.00 566.00 1,343.70 176.00 1,283.50 4,209.20
June 30, 2022 - - - - - - - - - - - -
Foreign June 30, 2021 - - - - - - - - - - - -
Currency March 31, 2022 - - - - - - - - - - - -
Assets March 31, 2021 - - - - - - - - - - - -
March 31, 2020 7.28 - - - - - - - - - - 7.28

Classification of Assets and Liabilities under the maturity buckets is based on the same estimates and assumptions as used by the Bank for compiling the
return submitted to the Reserve Bank of India.

46
 23.2 Liquidity Coverage Ratio

Liquidity Coverage Ratio (LCR) is a measure to ensure that a bank has an adequate stock of unencumbered High Quality Liquid Assets (HQLA) to survive in a significant liquidity stress lasting for a
period of 30 days. LCR is defined as a ratio of HQLA to the total net cash outflows estimated for the next 30 calendar days.

As per the RBI directions, the Banks are prescribed to maintain minimum LCR as per the following time frame:

Particulars By January 1, 2019 From January 1, 2020 From January 1, 2021

Minimum LCR 80% 90% 100%

The table below sets out the average LCR of the Bank for the quarters ended June 2022, June 2021 and other quarters of financial year 2021-22:
(₹ in millions)

Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended
June 30, 2021 Sept 30, 2021 Dec 31, 2021 March 31, 2022 June 30, 2022
Total Total Total Total Total Total Total Total Total Total
Liquidity Coverage Ratio (LCR)
Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted
Value Value Value Value Value Value Value Value Value Value
(average) (average) (average) (average) (average) (average) (average) (average) (average) (average)
High Quality Liquid Assets
1 Total High Quality Liquid Assets 18,377.5 16,406.9 19,375.2 17,019.3 16,402.0
(HQLA)
Cash Outflows
2 Retail deposits and deposits
from small business
customers, of which:
(i) Stable deposits 15,672.6 783.6 16,749.5 837.5 17,159.3 858.0 17,397.1 869.9 16,778.0 838.9
(ii) Less stable deposits 31,756.8 3,175.7 31,937.6 3,193.8 34,568.3 3,456.8 35,341.3 3,534.1 37,118.4 3,711.8
Unsecured wholesale funding, of
3 which:
Operational deposits (all - - - - - - - - - -
(i) counterparties)
Non-operational deposits (all 3,144.9 1,311.8 3,192.1 1,419.2 5,407.5 3,030.8 7,424.2 4,173.8 6,947.1 3,950.9
(ii) counterparties)
(iii) Unsecured debt - - - - - - - - - -
4 Secured wholesale funding 3.80 - 10.8 - 8.4 - 10.6 - 20.3 -
5 Additional requirements, of which
(i) Outflows related to derivative
exposures and other collateral - - - - - - - - - -
requirements
(ii) Outflows related to loss of
- - - - - - - - - -
funding on debt products
(iii) Credit and liquidity facilities 2,272.3 161.9 2,281.2 152.9 2,397.6 168.1 2,349.9 163.0 2,062.6 142.1

47
6 Other contractual funding
504.5 504.5 366.4 366.4 335.2 335.2 457.8 457.8 316.8 316.8
obligations
7 Other contingent funding
368.4 11.9 341.8 11.2 343.4 11.3 399.1 13.0 420.3 13.9
obligations
8 Total Cash Outflows 5,949.5 5,981.0 7,860.2 9,211.6 8,974.5

Cash Inflows
9 Secured lending (e.g. reverse repos) 5,678.2 - 3,436.8 - 6,196.4 - 3,438.5 - 686.1 -
10 Inflows from fully performing
716.3 425.3 804.9 470.1 818.2 487.2 918.3 545.4 911.2 551.3
exposures
11 Other cash inflows 808.3 702.4 770.1 664.2 767.5 661.6 1,346.3 1,240.4 730.0 624.1
12 Total Cash Inflows 7,202.8 1,127.7 5,011.9 1,134.3 7,782.1 1,148.8 5,703.0 1,785.8 2,327.3 1,175.4
13 Total HQLA 18,377.5 16,406.9 19,375.2 17,019.3 16,402.0
14 Total Net Cash Outflows 4,821.8 4,846.7 6,711.5 7,425.8 7,799.0
15 Liquidity Coverage Ratio (%) 381.14% 338.52% 288.69% 229.19% 210.31%

The Bank during the quarter ended June 30, 2022 maintained average HQLA of ₹16,402 million against the average net cash outflows of ₹7,799 million. The entire HQLA was Level 1 HQLA. The average
LCR of the Bank for the quarter ended June 30, 2022 was 210.31% which is well above the regulatory threshold of 100%.

HQLA primarily included government securities in excess of minimum Statutory Liquidity Ratio (SLR), the extent allowed under the Marginal Standing Facility (MSF) and the Facility to Avail Liquidity for
LCR (FALLCR). Additionally, cash, balances in excess of cash reserve requirement with RBI.

For the purposes of LCR computation, the Bank has considered all inflows and outflows that may have a quantifiable impact under the liquidity stress scenario.

The average weighted and unweighted amounts have been calculated considering simple average.

48
The table below sets out the average LCR of the Bank for Financial Year 2020-21:

(₹ in millions)

Quarter Ended Quarter Ended Quarter Ended Quarter Ended

June 30, 2020 Sept 30, 2020 Dec 31, 2020 March 31, 2021
Total Total Total Total Total Total Total Total
Liquidity Coverage Ratio (LCR)
Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted
Value Value Value Value Value Value Value Value
(average) (average) (average) (average) (average) (average) (average) (average)
High Quality Liquid Assets
1 Total High Quality Liquid Assets (HQLA) 12,943.8 15,033.0 18,700.8 18,254.1
Cash Outflows
2 Retail deposits and deposits from
small business customers, of which:
(i) Stable deposits 20,727.5 1,036.4 21,559.1 1,078.0 23,453.9 1,172.7 15,624.2 781.2
(ii) Less stable deposits 17,700.8 1,770.1 18,522.8 1,852.3 23,393.9 2,339.4 29,705.8 2,970.6
3 Unsecured wholesale funding, of which:
(i) Operational deposits (all counterparties) 0.1 - 0.1 - 0.1 - - -
(ii) Non-operational deposits (all counterparties) 3,591.4 1,290.7 3,074.7 1,329.7 1,735.9 1,232.0 3,323.6 1,444.9
(iii) Unsecured debt - - - - - - - -
4 Secured wholesale funding 1.1 1.1 - - 15.2 - 19.4 -
5 Additional requirements, of which
(i) Outflows related to derivative exposures
- - - - - - - -
and other collateral requirements
(ii) Outflows related to loss of funding on
- - - - - - - -
debt products
(iii) Credit and liquidity facilities 2,049.9 153.3 2,296.4 179.4 2,430.7 181.8 2,333.1 174.0
6 Other contractual funding obligations 419.0 419.0 513.6 513.6 378.0 378.0 505.5 505.5
7 Other contingent funding obligations 364.0 11.6 312.7 10.2 336.5 10.9 374.4 12.0
8 Total Cash Outflows 4,682.2 4,963.2 5,314.8 5,888.2
Cash Inflows
9 Secured lending (e.g. reverse repos) 1,484.6 1,088.0 2,711.9 - 5,362.3 - 5,219.8 -
10 Inflows from fully performing exposures 273.1 273.1 579.6 439.8 729.3 423.4 699.5 408.4
11 Other cash inflows 987.3 881.8 1,098.3 992.7 515.1 410.2 1,451.1 1,345.3
12 Total Cash Inflows 2,745.0 2,242.9 4,389.8 1,432.5 6,606.7 833.6 7,370.4 1,753.7
13 Total HQLA 12,943.8 15,033.0 18,700.8 18,254.1
14 Total Net Cash Outflows 2,439.3 3,530.7 4,481.1 4,134.7
15 Liquidity Coverage Ratio (%) 530.64% 425.78% 417.32% 441.49%

49
The table below sets out the average LCR of the Bank for Financial Year 2019-20:

(₹ in millions)

Quarter Ended Quarter Ended Quarter Ended Quarter Ended

June 30, 2019 September 30, 2019 December 31, 2019 March 31, 2020
Total Total Total Total Total Total Total Total
Liquidity Coverage Ratio (LCR)
Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted
Value Value Value Value Value Value Value Value
(average) (average) (average) (average) (average) (average) (average) (average)
High Quality Liquid Assets
1 Total High Quality Liquid Assets (HQLA) 9,139.7 9,425.7 10,467.6 10,403.9
Cash Outflows
2 Retail deposits and deposits from small
business customers, of which:
(i) Stable deposits 8,060.6 403.0 8,262.4 413.1 8,597.4 429.9 8,508.5 425.4
(ii) Less stable deposits 24,967.9 2,496.8 26,512.8 2,651.3 27,680.9 2,768.1 28,596.5 2,859.7
3 Unsecured wholesale funding, of which:
(i) Operational deposits (all counterparties) 0.10 0.0 1.3 0.30 1.1 0.2 3.6 0.2
(ii) Non-operational deposits (all counterparties) 3,054.2 694.6 2,702.6 748.7 4,591.5 1,085.9 2,752.4 1,122.5
(iii) Unsecured debt - - - - - - - -
4 Secured wholesale funding - - - -
5 Additional requirements, of which - -
(i) Outflows related to derivative exposures and
- - - - - - - -
other collateral requirements
(ii) Outflows related to loss of funding on debt
- - - - - - - -
products
(iii) Credit and liquidity facilities 2,191.8 186.0 1,898.7 152.8 2,103.2 147.8 1,939.5 161.0
6 Other contractual funding obligations 305.3 305.3 510.4 510.4 369.4 369.4 665.5 665.5
7 Other contingent funding obligations 363.1 11.7 329.0 10.7 323.4 10.5 295.9 9.5
8 Total Cash Outflows 4,097.4 4,487.3 4,811.8 5,243.8
Cash Inflows
9 Secured lending (e.g. reverse repos) 827.2 827.2 370.7 370.7 1,983.3 1,983.3 344.2 344.2
10 Inflows from fully performing exposures 257.8 257.8 287.6 287.6 451.4 451.4 564.6 564.6
11 Other cash inflows 341.7 235.7 424.4 318.4 1,289.1 1,183.2 1,531.1 1,425.4
12 Total Cash Inflows 1,426.7 1,320.7 1,082.7 976.7 3,723.8 3,617.9 2,439.9 2,334.2
13 Total HQLA 9,139.7 9,425.7 10,467.6 10,403.9
14 Total Net Cash Outflows 2,776.8 3,510.6 1,193.9 2,909.6
15 Liquidity Coverage Ratio (%) 329.16% 268.49% 870.16% 357.57%

50
 23.3 Net Stable Funding Ratio (NSFR)

The Bank pursuant to the RBI guidelines on NSFR has been subjected to the Basel III NSFR standards from 1st October 2021. The Bank at June 30, 2022
maintained Available Stable Funding (ASF) of ₹64,419.02 million against the RSF requirement of ₹5,4328.31 million. NSFR aims to improve the
resiliency of banks by promoting long-term funding stability. It mandates banks to maintain a stable funding profile vis-à-vis the composition of their
assets and off-balance sheet activities. It reduces the probability of erosion of a bank’s liquidity position due to disruptions to its regular sources of
funding. The NSFR guidelines of RBI stipulates the applicable Required Stable Funding ("RSF") factor for each category of asset and Available Stable
Funding ("ASF") factor for each type of funding source. NSFR represents the ratio of the bank's ASF to RSF.

The table below sets out the NSFR position of the Bank as on June 30, 2022:
(₹ in millions)
Unweighted value by residual maturity
NSFR Weighted Value
No maturity < 6 months 6 months to < 1 year >= 1 year

ASF item
1 Capital: (2+3) 5,609.55 - - 2,327.40 7,936.95

2 Regulatory Capital 5,609.55 - - 2,077.40 7,686.95

3 Other Capital Instruments - - - 250.00 250.00

4 Retail deposits and deposits from small business customers: (5+6) 24,877.32 13,399.44 13,654.27 5,248.28 52,774.43

5 Stable Deposits 6,298.11 5,231.19 4,234.99 1,394.81 16,370.88

6 Less Stable Deposits 18,579.21 8,168.26 9,419.28 3,853.47 36,403.54

7 Wholesale funding: (8+9) 1,706.10 1,247.09 824.83 665.62 1,768.75

8 Operational deposits - - - - -

9 Other Wholesale funding 1,706.10 1,247.09 824.83 665.62 1,768.75

10 Other Liabilities: (11+12) 721.80 938.80 804.70 1,577.20 1,938.90

11 NSFR Derivative liabilities

12 All other liabilities and equity not included in the above
721.80 938.80 804.70 1,577.20 1,938.90
categories
13 Total ASF (1+4+7+10) 64,419.02

14 Total NSFR high-quality liquid assets (HQLA) 11,299.49

15 Deposits held at other financial institutions for operational purposes 613.90 151.98 170.72 21.64 479.12

16 Performing loans and securities:

349.30 4,764.02 3,837.40 36,917.85 35,810.82
(17+18+19+21+23)
17 Performing loans to financial institutions secured by Level 1 HQLA - - - - -

18 Performing loans to financial institutions secured by non- Level 1 - - - - -

HQLA and unsecured performing loans to financial institutions
19 Performing loans to non-financial corporate clients, loans to retail and
small business customers, and loans to sovereigns, central banks, and
349.00 4,758.74 3,827.22 27,624.73 28,481.33
PSEs, of which:
20 With a risk weight of less than or equal to 35% under the Basel II - - - 4.03 2.62
Standardised Approach for credit risk
21 Performing residential mortgages, of which: 0.30 5.28 10.18 9,293.12 7,329.49

22 With a risk weight of less than or equal to 35% under the Basel II - 0.04 0.42 5,528.24 4104.41
Standardised Approach for Credit Risk
23 Securities that are not in default and do not qualify as HQLA, including - - - - -
exchanges traded equities
24 Other assets: (sum of rows 25 to 29) 2,382.32 3,921.96 3,119.28 805.10 6,353.75

25 Physical traded commodities, including gold - - - - -

26 Assets posted as initial margin for derivative contracts and 10.11 - - 48.00 49.39

51
 contributions to default funds of CCPs
27 NSFR Derivative assets - - - - -

28 NSFR derivative liabilities before deduction of variation margin posted - - - - -

29 All other assets not included in the above categories 2,372.21 3,921.96 3,119.28 757.10 6,304.36

30 Off- Balance sheet items 3.23 1,901.76 1,376.61 4,550.97 385.14

31 Total RSF 3,348.75 10,739.73 8,504.01 42,295.56 54,328.31

32 Net Stable Funding Ratio (%) 118.57%

The table below sets out the NSFR position of the Bank as on March 31, 2022:

(₹ in millions)
Unweighted value by residual maturity
No maturity < 6 months 6 months to < 1 year >= 1 year Weighted Value
NSFR

ASF item
5,392.41 - - 2,087.00 7,479.41
1 Capital: (2+3)
5,392.41 - - 1,837.00 7,229.41
2 Regulatory Capital
- - - 250.00 250.00
3 Other Capital Instruments
23,632.01 12,992.65 13,124.83 5,432.63 51,005.18
4 Retail deposits and deposits from small business customers: (5+6)
6,582.81 5,143.99 4,233.22 1,418.86 16,580.88
5 Stable Deposits
17,049.20 7,848.66 8,891.61 4,013.77 34,424.30
6 Less Stable Deposits
1,862.00 1,387.31 1,414.48 617.67 1,955.93
7 Wholesale funding: (8+9)
8 Operational deposits - - - - -
1,862.00 1,387.31 1,414.48 617.67 1,955.93
9 Other Wholesale funding
698.86 876.20 705.80 1,315.30 1,668.20
10 Other Liabilities: (11+12)
11 NSFR Derivative liabilities - - -
698.86 876.20 705.80 1,315.30 1,668.20
12 All other liabilities and equity not included in the above categories
62,108.72
13 Total ASF (1+4+7+10)
RSF Item
10,569.45
14 Total NSFR high-quality liquid assets (HQLA)
335.40 182.57 147.06 21.46 343.25
15 Deposits held at other financial institutions for operational purposes
Performing loans and securities:
16 341.39 5,570.81 3,664.29 36,139.24 35,691.00
(17+18+19+21+23)
17 Performing loans to financial institutions secured by Level 1 HQLA - - - - -
Performing loans to financial institutions secured by non- Level 1 HQLA
18 - - - - -
and unsecured performing loans to financial institutions
Performing loans to non-financial corporate clients, loans to retail and
19 small business customers, and loans to sovereigns, central banks, and
341.37 5,564.11 3,650.79 27,483.00 28,750.60
PSEs, of which:
With a risk weight of less than or equal to 35% under the Basel II
20 - - - 4.10 2.70
Standardised Approach for credit risk
0.01 6.70 13.50 8,656.20 6,940.40
21 Performing residential mortgages, of which:
With a risk weight of less than or equal to 35% under the Basel II - -
22 0.30 5,103.60 3,892.80
Standardised Approach for Credit Risk
Securities that are not in default and do not qualify as HQLA, including
23 - - - - -
exchanges traded equities
1,832.24 3,594.32 3,816.25 636.50 5,517.64
24 Other assets: (sum of rows 25 to 29)
25 Physical traded commodities, including gold - - - - -

52
 Assets posted as initial margin for derivative contracts and
26 9.97 - - 48.00 49.27
contributions to default funds of CCPs
27 NSFR Derivative assets - - - - -
28 NSFR derivative liabilities before deduction of variation margin posted - - - - -
1,818.27 3,594.32 3,816.25 588.50 5,468.37
29 All other assets not included in the above categories
5.17 2,088.23 1,159.39 4,059.13 357.91
30 Off- Balance sheet items
2,514.19 11,435.92 8,787.00 40,856.26 52,479.26
31 Total RSF
32 Net Stable Funding Ratio (%) 118.35%

53
24 Investments

24.1 Composition of Investment Portfolio

As at June 30, 2022

(₹ in millions)
Investments in India Investments outside India
Government Other Shares Debentures Subsidiaries Others Total Government Subsidiaries Others Total Investments
Particulars Securities Approved and Bonds and/or joint Investments in securities and/or joint outside India Total Investments
Securities ventures India (including local ventures
authorities)
Held to Maturity
Gross 10,301.87 - - - - - 10,301.87 - - - - 10,301.87
Less: Provision for non-
- - - - - - - - - - - -
performing investments (NPI)
Net 10,301.87 - - - - - 10,301.87 - - - - 10,301.87
Available for Sale
Gross 3,471.61 - 15.40 - - - 3,487.01 - - - - 3,487.01
Less: Provision for depreciation
- - - - - - - - - - - -
and NPI
Net 3,471.61 - 15.40 - - - 3487.01 - - - - 3,487.01
Held for Trading
Gross - - - - - - - - - - - -
Less: Provision for depreciation
- - - - - - - - - - - -
and NPI
Net - - - - - - - - - - - -
Total Investments 13,773.48 - 15.40 - - - 13,788.88 - - - - 13,788.88
Less: Provision for non-
- - - - - - - - - - - -
performing investments
Less: Provision for depreciation
- - - - - - - - - - - -
and NPI
Net 13,773.48 - 15.40 - - - 13,788.88 - - - - 13,788.88

As at June 30, 2021

(₹ in millions)
Investments in India Investments outside India
Government Other Shares Debentures Subsidiaries Others Total Government Subsidiaries Others Total Investments
Particulars Securities Approved and Bonds and/or joint Investments in securities and/or joint outside India Total Investments
Securities ventures India (including local ventures
authorities)
Held to Maturity
Gross 8,132.45 - - - - - 8,132.45 - - - - 8,132.45
Less: Provision for non-
- - - - - - - - - - - -
performing investments (NPI)
Net 8,132.45 - - - - - 8,132.45 - - - - 8,132.45
Available for Sale
Gross 3,671.27 - 15.40 - - - 3,686.67 - - - - 3,686.67

54
Less: Provision for depreciation
- - - - - - - - - - - -
and NPI
Net 3,671.27 - 15.40 - - - 3,686.67 - - - - 3,686.67
Held for Trading
Gross - - - - - - - - - - - -
Less: Provision for depreciation
- - - - - - - - - - - -
and NPI
Net - - - - - - - - - - - -
Total Investments 11,803.72 - 15.40 - - - 11,819.12 - - - - 11,819.12
Less: Provision for non-
- - - - - - - - - - - -
performing investments
Less: Provision for depreciation
- - - - - - - - - - - -
and NPI
Net 11,803.72 - 15.40 - - - 11,819.12 - - - - 11,819.12

As at March 31, 2022

(₹ in millions)
Investments in India Investments outside India
Government Other Shares Debentures Subsidiaries Others Total Government Subsidiaries Others Total Investments
Particulars Securities Approved and Bonds and/or joint Investments in securities and/or joint outside India Total Investments
Securities ventures India (including local ventures
authorities)
Held to Maturity
Gross 9,892.76 - - - - - 9,892.76 - - - - 9,892.76
Less: Provision for non-
- - - - - - - - - - - -
performing investments (NPI)
Net 9,892.76 - - - - - 9,892.76 - - - - 9,892.76
Available for Sale
Gross 3,662.47 - 15.40 - - - 3,677.87 - - - - 3,677.87
Less: Provision for depreciation
- - - - - - - - - - - -
and NPI
Net 3,662.47 - 15.40 - - - 3,677.87 - - - - 3,677.87
Held for Trading
Gross - - - - - - - - - - - -
Less: Provision for depreciation
- - - - - - - - - - - -
and NPI
Net - - - - - - - - - - - -
Total Investments 13,555.23 - 15.40 - - - 13,570.63 - - - - 13,570.63
Less: Provision for non-
- - - - - - - - - - - -
performing investments
Less: Provision for depreciation
- - - - - - - - - - - -
and NPI
Net 13,555.23 - 15.40 - - - 13,570.63 - - - - 13,570.63

55
 As at March 31, 2021
(₹ in millions)
Investments in India Investments outside India
Government Other Shares Debentures Subsidiaries Others Total Government Subsidiaries Others Total Investments
Particulars Securities Approved and Bonds and/or joint Investments in securities and/or joint outside India Total Investments
Securities ventures India (including local ventures
authorities)
Held to Maturity
Gross 8,725.32 - - - - - 8,725.32 - - - - 8,725.32
Less: Provision for non-
- - - - - - - - - - - -
performing investments (NPI)
Net 8,725.32 - - - - - 8,725.32 - - - - 8,725.32
Available for Sale
Gross 3,382.04 - 15.40 - - - 3,397.44 - - - - 3,397.44
Less: Provision for depreciation
- - (0.24) - - - (0.24) - - - - (0.24)
and NPI
Net 3,382.04 - 15.16 - - - 3,397.20 - - - - 3,397.20
Held for Trading
Gross - - - - - - - - - - - -
Less: Provision for depreciation
- - - - - - - - - - - -
and NPI
Net - - - - - - - - - - - -
Total Investments 12,107.36 - 15.40 - - - 12,122.76 - - - - 12,122.76
Less: Provision for non-
- - (0.24) - - - (0.24) - - - - (0.24)
performing investments
Less: Provision for depreciation
- - - - - - - - - - - -
and NPI
Net 12,107.36 - 15.16 - - - 12,122.52 - - - - 12,122.52

As at March 31,2020
(₹ in millions)
Investments in India Investments outside India
Government Other Shares Debentures Subsidiaries Others Total Government Subsidiaries Others Total Investments
Particulars Securities Approved and Bonds and/or joint Investments in securities and/or joint outside India Total Investments
Securities ventures India (including local ventures
authorities)
Held to Maturity
Gross 7,264.70 - - - - - 7,264.70 - - - - 7,264.70
Less: Provision for non-
- - - - - - - - - - - -
performing investments (NPI)
Net 7,264.70 - - - - - 7,264.70 - - - - 7,264.70
Available for Sale
Gross 3,203.77 - - - - - 3,203.77 - - - - 3,203.77
Less: Provision for depreciation
- - - - - - - - - - - -
and NPI
Net 3,203.77 - - - - - 3,203.77 - - - - 3,203.77
Held for Trading
Gross 50.28 - - - - - 50.28 - - - - 50.28

56
Less: Provision for depreciation
- - - - - - - - - - - -
and NPI
Net 50.28 - - - - - 50.28 - - - - 50.28
Total Investments 10,518.75 - - - - - 10,518.75 - - - - 10,518.75
Less: Provision for non-
- - - - - - - - - - - -
performing investments
Less: Provision for depreciation
- - - - - - - - - - - -
and NPI
Net 10,518.75 - - - - - 10,518.75 - - - - 10,518.75

24.2 Movement of Provisions for Depreciation and Investment Fluctuation Reserve

(₹ in millions)
Quarter ended Quarter ended Year ended Year ended Year ended
Particulars
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020
i. Movement of provisions held towards depreciation on
investments
a) Opening balance - 0.24 0.24 - 0.06
b) Add: Provisions made during the period - - 0.15 0.44 0.71
c) Less: Write off/ write back of excess provisions during the
- (0.24) (0.39) (0.20) (0.77)
period

d) Closing balance - - - 0.24 -

ii. Movement of Investment Fluctuation Reserve
a) Opening balance 84.50 67.95 67.95 44.01 12.07
b) Add: Amount transferred during the period - - 16.56 23.94 31.94
c) Less: Drawdown - - - - -
d) Closing balance 84.50 67.95 84.50 67.95 44.01
iii. Closing balance in IFR as a percentage of closing balance
2.42% 1.84% 2.30% 2.00% 1.37%
of investments in AFS and HFT/ Current category

57
24.3 Sale and Transfer of Investments

During the quarters ended June 30, 2022 and June 30, 2021 and years ended March 31, 2022, March 31, 2021 and March 31,2020, there is no sale/
transfer of securities to/ from Held to Maturity (HTM) category exceeding 5% of the book value of the investments held in HTM category at the
beginning of the year, which requires the disclosure as per the RBI guidelines.

However, the Bank after approval of the Board of Directors, at the beginning of the accounting year, has transferred government securities within the
categories as stated below:
During the quarter ended June 30, 2022
(₹ in millions)
Category
Book Value Market Value
From To
Held to Maturity Available for Sale 354.63 371.52
Total 354.63 371.52
The Bank has not sold any security from HTM category during the period.
During the quarter ended June 30, 2021 and year ended March 31, 2022
(₹ in millions)
Category
Book Value Market Value
From To
Held to Maturity Available for Sale 913.81 967.43
Available for Sale Held to Maturity 259.83 270.10
Total 1,173.64 1,237.53
The Bank has not sold any security from HTM category during the period.
During the year ended March 31, 2021
(₹ in millions)
Category
Book Value Market Value
From To
Held to Maturity Available for Sale 1,167.88 1,263.41
Total 1,167.88 1,263.41
The Bank has not sold any security from HTM category during the period.
During the year ended March 31, 2020
The Bank has neither shifted any security nor sold any HTM security during the year ended March 2020.

24.4 Non- SLR Investment Portfolio

24.4.1 Issuer Composition of Non-SLR investments

As on June 30, 2022
(₹ in millions)
No. Issuer Amount Extent of Extent of ‘Below Extent of ‘Unrated’ Extent of
Private Investment Grade’ Securities ‘Unlisted’
Placement Securities Securities

1. 2. 3. 4. 5. 6. 7.
i. PSUs - - - - -
ii. FIs - - - - -
iii. Banks - - - - -
iv. Private Corporates 15.40 15.40 - - 15.40
v. Subsidiaries/ Joint - - - - -
Ventures
vi. Others - - - - -
vii. Provision held
- - - - -
towards depreciation
Total 15.40 15.40 - - 15.40

58
As on June 30, 2021

(₹ in millions)
No. Issuer Amount Extent of Extent of ‘Below Extent of ‘Unrated’ Extent of
Private Investment Grade’ Securities ‘Unlisted’
Placement Securities Securities

1. 2. 3. 4. 5. 6. 7.
i. PSUs - - - - -
ii. FIs - - - - -
iii. Banks - - - - -
iv. Private Corporates 15.40 15.40 - - 15.40
v. Subsidiaries/ Joint - - - - -
Ventures
vi. Others - - - - -
vii. Provision held
- - - - -
towards depreciation
Total 15.40 15.40 - - 15.40

As on March 31, 2022

(₹ in millions)
No. Issuer Amount Extent of Extent of ‘Below Extent of ‘Unrated’ Extent of
Private Investment Grade’ Securities ‘Unlisted’
Placement Securities Securities

1. 2. 3. 4. 5. 6. 7.
i. PSUs - - - - -
ii. FIs - - - - -
iii. Banks - - - - -
iv. Private Corporates 15.40 15.40 - - 15.40
v. Subsidiaries/ Joint - - - - -
Ventures
vi. Others - - - - -
vii. Provision held
- - - - -
towards depreciation
Total 15.40 15.40 - - 15.40

As on March 31, 2021

(₹ in millions)
No. Issuer Amount Extent of Private Extent of ‘Below Extent of ‘Unrated’ Extent of
Placement Investment Grade’ Securities ‘Unlisted’
Securities Securities

1. 2. 3. 4. 5. 6. 7.
i. PSUs - - - - -
ii. FIs - - - - -
iii. Banks - - - - -
iv. Private Corporates 15.40 15.40 - - 15.40
v. Subsidiaries/ Joint - - - - -
Ventures
vi. Others - - - - -
vii. Provision held
towards (0.24) (0.24) - - (0.24)
depreciation
Total 15.16 15.16 - - 15.16

As on March 31, 2020

The Bank does not hold any investment in Non-SLR category as on March 31, 2020.

24.4.2 Non performing Non- SLR investments

The Bank does not have any non-performing Non-SLR investment during the quarters ended June 30, 2022 and June 30, 2021 and during the
years ended March 31, 2022, March 31, 2021 and March 31, 2020.

59
24.5 Repo/Reverse Repo

During the quarter ended June 30, 2022

The Bank has undertaken MSF, Tri-party repo/reverse repo, Automated Sweep In Sweep Out (ASISO) during the year with Clearing Corporation
of India Ltd. (CCIL) and RBI as part of money market operations.

(₹ in millions)

Minimum Maximum Daily Average Outstanding as on

Outstanding during Outstanding outstanding June 30, 2022
Particulars
the period during the period during the period (Face Value)
(Face Value) (Face Value) (Face Value)
Securities sold under repo:
1. Government Securities - 1,379.70 60.98 -
2. Corporate Debt Securities - - - -
3. Any other securities - - - -

Securities purchased under reverse repo:

1. Government Securities - 2,000.00 600.66 -
2. Corporate Debt Securities - - - -
3. Any other securities - - - -

During the quarter ended June 30, 2021

The Bank has undertaken MSF, Tri-party repo/reverse repo, Automated Sweep In Sweep Out (ASISO) during the period with
Clearing Corporation of India Ltd. (CCIL) and RBI as part of money market operations.
(₹ in millions)
Minimum Maximum Daily Average Outstanding as on
Outstanding Outstanding Outstanding June 30, 2021
Particulars during the period during the period during the period (Face Value)
(Face Value) (Face Value) (Face Value)

Securities sold under repo:

1. Government Securities - 99.98 5.16 -

2. Corporate Debt Securities - - - -
Securities purchased under reverse repo:
1. Government Securities 2,840.00 7,680.00 5,703.52 5,270.00
2. Corporate Debt Securities - - - -

During the year ended March 31, 2022

The Bank has undertaken MSF, Tri-party repo/reverse repo and Long Term Repo transactions during the Period with Clearing
Corporation of India Ltd. (CCIL) and RBI as part of money market operations.
(₹ in millions)

Minimum Maximum Daily Average Outstanding as

Outstanding Outstanding Outstanding on June 30, 2020
Particulars during the period during the period during the period (Face Value)
(Face Value) (Face Value) (Face Value)

Securities sold under repo:

1. Government Securities - 599.95 34.46 -
2. Corporate Debt Securities - - - -
3. Any other securities - - - -
Securities purchased under reverse repo:
1. Government Securities 270.00 8,980.00 4,688.79 570.00
2. Corporate Debt Securities - - - -
3. Any other securities - - - -

60
During the year ended March 31, 2021

The Bank has undertaken MSF, Tri-party repo/reverse repo, Automated Sweep In Sweep Out (ASISO) and Long Term Repo transactions during
the year with Clearing Corporation of India Ltd. (CCIL) and RBI as part of money market operations.
(₹ in millions)
Minimum Maximum Daily Average Outstanding as on
Outstanding Outstanding Outstanding March 31, 2021
Particulars during the year during the year during the year (Face Value)
(Face Value) (Face Value) (Face Value)

Securities sold under repo:

1. Government Securities - 1,099.75 385.89 -

2. Corporate Debt Securities - - - -

Securities purchased under reverse repo:

1. Government Securities - 7,469.50 3,688.02 4,720.00

2. Corporate Debt Securities - - - -

During the year ended March 31, 2020

The Bank has undertaken MSF, Tri-party repo/ reverse repo and Long Term Repo transactions during the year with Clearing Corporation of India Ltd.
(CCIL) and RBI as part of money market operations.
(₹ in millions)
Minimum Maximum Daily Average Outstanding as on
Outstanding Outstanding Outstanding March 31, 2020
Particulars
during the year during the year during the year (Face Value)
(Face Value) (Face Value) (Face Value)
Securities sold under repo:

1. Government Securities - 1,159.89 113.05 810.00

2. Corporate Debt Securities - - - -

Securities purchased under reverse repo:

1. Government Securities - 3,798.43 854.96 1499.65

2. Corporate Debt Securities - - - -

24.6 Security Receipts

The Bank does not hold any investment in Security Receipts during the quarters ended June 30, 2022 and June 30, 2021 and years ended March
31, 2022, March 31, 2021 and March 31, 2020.

61
25 Asset Quality

25.1 Classification of advances and provisions held

As on June 30,2022
(₹ in millions)

Standard Non-performing Total

Total Non-
Total Standard Sub-
Doubtful Loss performing
Advances Standard
Advances
Gross Standard Advances and NPAs
Opening balance 45,715.69 506.51 664.83 - 1,171.34 46,887.03
Add: Additions during the period 294.32
Less: Reductions during the period# 81.93
Closing balance 45,868.57 640.93 742.80 - 1,383.73 47,252.30

#
Reduction in Gross NPAs due to:

i) Upgradation 60.15
ii) Recoveries (excluding recoveries from upgraded
accounts) 21.78

iii) Technical/Prudential Write off -

iv) Write off other than those mentioned under iii)
above -

Provisions (excluding Floating Provisions)

Opening balance of provisions held 284.04* 120.56 418.47 - 539.03 823.07
Add: Fresh provisions made during the period 93.54
Less: Excess provision reversed/ Write-off loans 44.42
Closing balance of provisions held 277.60* 109.10 479.05 - 588.15 865.75

Net NPAs
Opening balance 385.95 246.36 0.00 632.31 632.31
Add: Fresh additions during the period 200.78 200.78
Less: Reductions during the period 37.51 37.51
Closing balance 531.83 263.75 0.00 795.58 795.58

Floating Provisions - - - - - -
Opening Balance - -
Add: Additional provisions made during the period - -
Less: Amount drawn down during the period - -
Closing balance of floating provisions - -

Technical write-offs and the recoveries made

- - - - - -
thereon

62
 Opening balance of Technical/Prudential written-
offs accounts - -
Add: Technical/ Prudential write-offs during the
period - -
Less: Recoveries made from previously
technical/prudential written-off accounts during the
period - -
Closing balance - -

*During the quarter ended June 30, 2022, the general provision against standard assets includes provision of ₹126.58 million created in accordance
with RBI Circular “Micro, Small and Medium Enterprises (MSME) sector –Restructuring of Advances” and “Resolution Framework for COVID-19-
related Stress” issued on August 06, 2020.

As on June 30,2021
(₹ in millions)

Standard Non-performing Total

Total Non-
Total Standard Sub-
Doubtful Loss performing
Advances Standard
Advances
Gross Standard Advances and NPAs
36,847.44 239.66 542.78 - 782.43 37,629.87
Opening balance
176.16
Add: Additions during the period
46.16
Less: Reductions during the period#
35,896.06 374.67 537.76 - 912.43 36,808.49
Closing balance

#
Reduction in Gross NPAs due to:

i) Upgradation 41.47
ii) Recoveries (excluding recoveries from upgraded
accounts) 4.69

iii) Technical/Prudential Write off -

iv) Write off other than those mentioned under iii)
above -

Provisions (excluding Floating Provisions)

174.81 * 60.34 300.68 - 361.01 532.82
Opening balance of provisions held
37.47
Add: Fresh provisions made during the period
11.94
Less: Excess provision reversed/ Write-off loans
213.85 * 80.63 305.91 - 386.54 600.39
Closing balance of provisions held

Net NPAs
179.32 242.10 - 421.42 421.42
Opening balance
138.69 138.69
Add: Fresh additions during the period
34.22 34.22
Less: Reductions during the period
294.04 231.85 - 525.89 525.89
Closing balance

Floating Provisions - - - - - -
Opening Balance - -

63
 Add: Additional provisions made during the period - -
Less: Amount drawn down during the period - -
Closing balance of floating provisions - -

- - - - - -
Technical write-offs and the recoveries made thereon
Opening balance of Technical/Prudential written-offs
accounts - -
Add: Technical/ Prudential write-offs during the
period - -
Less: Recoveries made from previously
technical/prudential written-off accounts during the
period - -
Closing balance - -
*During the quarter ended June 30, 2021, the general provision against standard assets includes provision of ₹92.41 million created in accordance with RBI Circular
“Micro, Small and Medium Enterprises (MSME) sector –Restructuring of Advances” and “Resolution Framework for COVID-19-related Stress” issued on August 06,
2020.

As on March 31,2022

(₹ in millions)

Standard Non-performing Total

Total Non-
Total Standard Sub-
Doubtful Loss performing
Advances Standard
Advances
Gross Standard Advances and NPAs
36,847.44 239.66 542.78 - 782.43 37,629.87
Opening balance
781.13
Add: Additions during the period
392.22
Less: Reductions during the period#
45,715.69 506.51 664.83 - 1,171.34 46,887.03
Closing balance

#
Reduction in Gross NPAs due to:

i) Upgradation 329.69
ii) Recoveries (excluding recoveries from upgraded
accounts) 61.87

iii) Technical/Prudential Write off -

iv) Write off other than those mentioned under iii)
above 0.66

Provisions (excluding Floating Provisions)

174.81* 60.34 300.68 - 361.01 535.82
Opening balance of provisions held
280.51
Add: Fresh provisions made during the period
102.49
Less: Excess provision reversed/ Write-off loans
284.04* 120.56 418.47 - 539.03 823.07
Closing balance of provisions held

64
 Net NPAs
179.32 242.10 - 421.42 421.42
Opening balance
500.62 500.62
Add: Fresh additions during the period
289.73 289.73
Less: Reductions during the period
385.95 246.36 - 632.31 632.31
Closing balance

Floating Provisions - - - - - -
Opening Balance - -
Add: Additional provisions made during the period - -
Less: Amount drawn down during the period - -
Closing balance of floating provisions - -

- - - - - -
Technical write-offs and the recoveries made thereon
Opening balance of Technical/Prudential written-offs
accounts - -
Add: Technical/ Prudential write-offs during the period - -
Less: Recoveries made from previously
technical/prudential written-off accounts during the
period - -
Closing balance - -
*During the year ended March 31, 2022, the general provision against standard assets includes provision of ₹134.19 million (year ended March 31, 2021 amounts to
₹53.37 million) created in accordance with RBI Circular “Micro, Small and Medium Enterprises (MSME) sector –Restructuring of Advances” and “Resolution Framework
for COVID-19-related Stress” issued on August 06, 2020 and May 05, 2021.

As on March 31,2021

(₹ in millions)

Standard Non-performing Total

Total Non-
Total Standard Sub-
Doubtful Loss performing
Advances Standard
Advances
Gross Standard Advances and NPAs
32,670.59 306.68 278.39 - 585.07 33,255.66
Opening balance
248.53
Add: Additions during the period
51.17
Less: Reductions during the period#
36,847.44 239.66 542.78 - 782.43 37,629.87
Closing balance

#
Reduction in Gross NPAs due to:

i) Upgradation 16.53
ii) Recoveries (excluding recoveries from upgraded
accounts) 34.49

iii) Technical/Prudential Write off 0.15

iv) Write off other than those mentioned under iii)
above -

65
Provisions (excluding Floating Provisions)
185.77 47.95 124.62 - 172.57 358.34
Opening balance of provisions held
202.62
Add: Fresh provisions made during the period
14.18
Less: Excess provision reversed/ Write-off loans
174.81 60.34 300.68 - 361.01 535.82
Closing balance of provisions held

Net NPAs
258.73 153.77 - 412.50 412.50
Opening balance
45.91 45.91
Add: Fresh additions during the period
36.99 36.99
Less: Reductions during the period
179.32 242.10 - 421.42 421.42
Closing balance

Floating Provisions - - - - - -
Opening Balance - -
Add: Additional provisions made during the period - -
Less: Amount drawn down during the period - -
Closing balance of floating provisions - -

- - - - - -
Technical write-offs and the recoveries made thereon
Opening balance of Technical/Prudential written-offs
accounts - -
Add: Technical/ Prudential write-offs during the period - -
Less: Recoveries made from previously
technical/prudential written-off accounts during the
period - -
Closing balance - -

As on March 31,2020
(₹ in millions)

Standard Non-performing Total

Total Non-
Total Standard Sub-
Doubtful Loss performing
Advances Standard
Advances
Gross Standard Advances and NPAs
25,748.25 170.95 168.61 - 339.56 26,087.81
Opening balance
421.90
Add: Additions during the period
176.39
Less: Reductions during the period#
32,670.59 306.68 278.39 - 585.07 33,255.66
Closing balance

#
Reduction in Gross NPAs due to:

i) Upgradation 144.27
ii) Recoveries (excluding recoveries from upgraded
accounts) 32.06

66
iii) Technical/Prudential Write off -
iv) Write off other than those mentioned under iii)
above 0.06

Provisions (excluding Floating Provisions)

84.30 29.27 68.08 - 97.35 181.65
Opening balance of provisions held
111.83
Add: Fresh provisions made during the period
36.61
Less: Excess provision reversed/ Write-off loans
185.77 47.95 124.62 - 172.57 358.34
Closing balance of provisions held

Net NPAs
141.68 100.53 - 242.20 242.20
Opening balance
310.07 310.07
Add: Fresh additions during the period
139.77 139.77
Less: Reductions during the period
258.73 153.77 - 412.50 412.50
Closing balance

Floating Provisions - - - - - -
Opening Balance - -
Add: Additional provisions made during the period - -
Less: Amount drawn down during the period - -
Closing balance of floating provisions - -

- - - - - -
Technical write-offs and the recoveries made thereon
Opening balance of Technical/Prudential written-offs
accounts - -
Add: Technical/ Prudential write-offs during the period - -
Less: Recoveries made from previously
technical/prudential written-off accounts during the
period - -
Closing balance - -

67
 25.2 Sector-wise Advances

(₹ in millions)

Quarter ended June 30, 2022 Quarter ended June 30, 2021

Sr.
Sector Outstanding Percentage of Gross Outstanding Percentage of Gross
No. Gross
Total Gross NPAs NPAs to Total Total NPAs to Total Advances
NPAs
Advances Advances in that sector Advances in that sector

A) Priority Sector

1 Agriculture & allied activities 17,470.69 591.13 3.38% 13,576.07 342.94 2.53%

2 Advances to industries sector 2,156.40 100.32 4.65% 1,887.59 48.00 2.54%

Of which advances to Textile 268.12 65.00 24.24% 279.62 0.53 0.19%

Advances to Iron/Steel and 357.22 335.99 14.77 4.40%

- -
Metal
3 Services 8,483.43 342.73 4.04% 7,278.48 148.34 2.04%

Of which advances to Traders 4,843.76 231.91 4.79% 3,869.22 110.24 2.85%

4 Personal Loans - - - - - -

5 Others 4,459.14 9.47 0.21% 2,516.23 9.32 0.37%

Sub-total (A) 32,569.66 1,043.65 3.20% 25,258.37 548.60 2.17%

B) Non - Priority Sector

1 Agriculture & allied activities - - - - - -

2 Industry 53.41 - - 47.41 - -

3 Services 360.14 169.30 47.01% 695.77 183.70 26.40%

Of which advances to Traders 205.45 169.30 82.41% 431.91 183.70 42.53%

4 Personal Loans 104.56 10.79 10.32% 146.43 4.44 3.03%

5 Others 14,164.53 159.99 1.13% 10,660.51 175.69 1.65%

Of which advances to NBFCs 3,037.62 57.95 1.91% 1,948.01 88.68 4.55%

Sub-Total (B) 14,682.64 340.08 2.32% 11,550.12 363.83 3.15%

TOTAL (A+B) 47,252.30 1,383.73 2.93% 36,808.49 912.43 2.48%

68
 Year ended March 31, 2022 Year ended March 31, 2021 Year ended March 31, 2020

Sr. No. Sector Percentage of Percentage of Percentage of

Outstanding Gross NPAs to Outstanding Gross NPAs to Outstanding Gross NPAs to
Gross NPAs Gross NPAs Gross NPAs
Total Advances Total Advances Total Advances Total Advances in Total Advances Total Advances in
in that sector that sector that sector
A) Priority Sector
1 Agriculture & allied activities 17,807.45 435.36 2.44% 14,232.11 294.95 2.07% 12,744.44 204.51 1.60%

2 Advances to industries sector 2,260.30 32.73 1.45% 1,802.31 49.87 2.77% 1,956.42 32.90 1.68%

Of which advances to Textile 279.60 0.54 0.19% 264.29 2.41 0.91% 407.62 - -

Advances to Iron/Steel and

385.51 - - 275.14 14.77 5.37% 240.40 - -
Metal
3 Services 8,392.72 330.57 3.94% 7,383.43 140.49 1.90% 6,411.00 71.40 1.11%
Of which advances to Traders 4,795.72 223.58 4.66% 3,953.51 104.49 2.64% 3,233.23 46.07 1.42%

4 Personal Loans - - - - - - - - -
5 Others 4,141.19 8.57 0.21% 2,374.62 6.68 0.28% 1,907.65 4.85 0.25%
Sub-total (A) 32,601.66 807.23 2.48% 25,792.47 491.99 1.91% 23,019.51 313.66 1.36%

1 Agriculture & allied activities - - - - - - - - -

2 Industry 44.55 - - 57.35 - - 114.21 - -

3 Services 442.24 174.94 39.56% 926.82 184.20 19.87% 951.26 200.06 21.03%

Of which advances to Traders 273.20 174.94 64.04% 544.70 184.20 33.82% 527.71 200.06 37.91%

4 Personal Loans 111.73 10.75 9.62% 162.46 4.07 2.51% 216.67 2.51 1.16%
5 Others 13,686.85 178.42 1.30% 10,690.77 102.17 0.96% 8,954.01 68.84 0.77%

Of which advances to NBFCs 2,975.99 84.14 2.83% 2,066.41 24.98 1.21% 1,774.25 24.98 1.41%

Sub-Total (B) 14,285.37 364.11 2.55% 11,837.40 290.44 2.45% 10,236.15 271.41 2.65%
TOTAL (A+B) 46,887.03 1,171.34 2.50% 37,629.87 782.43 2.08% 33,255.66 585.07 1.76%

69
25.3 Ratios

Quarter ended Quarter ended Year ended Year ended Year ended
Particulars June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020
Gross NPA to Gross Advances 2.93% 2.48% 2.50% 2.08% 1.76%
Net NPA to Net Advances 1.70% 1.44% 1.36% 1.13% 1.25%
Provision Coverage Ratio 42.50% 42.36% 46.02% 46.14% 29.50%

25.4 Provision on Standard Assets

(₹ in millions)
Quarter ended Quarter ended Year ended Year ended Year ended
Particulars June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020

Provisions towards Standard Assets 0.49 39.03 114.04 (10.95) 101.47

The cumulative provision towards standard assets held by the Bank as at the quarter ended June 30, 2022 amounted to ₹277.60 million (₹213.85 million as
at quarter ended June 30, 2021; ₹284.04 million as at the year ended March 31, 2022; ₹174.81 million as at the year ended March 31, 2021 and ₹185.77
million as at the year ended March 31, 2020).

As on June 30, 2022, the general provision against standard assets includes provision of ₹126.58 million (₹92.41 million as on June 30, 2021; ₹134.19
million as on March 31, 2022 and ₹53.37 million as on March 31, 2021) created in accordance with RBI Circular "Micro, Small and Medium Enterprises
(MSME) sector –Restructuring of Advances" and "Resolution Framework for COVID-19-related Stress" issued on August 06, 2020 and May 05,
2021.
The general provision includes provision of ₹77.00 million as on March 31, 2020 created in accordance with RBI Circular 'COVID19 Regulatory Package -
Asset Classification and Provisioning' and 'COVID-19 – Regulatory Package.

25.5 Overseas Assets, NPAs and Revenue

The Bank does not hold any overseas asset/ NPA as at June 30, 2022, June 30, 2021, March 31, 2022, March 31, 2021 and March 31, 2020. No overseas
operations were undertaken during the quarters ended June 30, 2022, June 30, 2021, March 31, 2022, March 31, 2021 and March 31, 2020, hence revenue
from overseas operations is nil.

25.6 Impact on account of COVID-19 on Advances

25.6.1 For the quarter ended June 30, 2022

India is emerging from the COVID-19 virus, a global pandemic that affected the world economy over the last two years. The extent to which any new wave
of COVID-19 will impact the bank's results will depend on ongoing as well as future developments, including, among other things, any new information
concerning the severity of the pandemic, and any action to contain its spread or mitigate its impact whether government-mandated or elected by us.

25.6.2 For the quarter ended June 30, 2021

During the year 2020-21, the first wave of COVID-19 got over and the economy started to pick up. However, before the end of the fiscal, the second wave
had already knocked the doors of the country. The second wave turned out to be more devastating, both, in number of cases as well as the damage it
caused to the people’s lives and business activities. The borrowers who were able to sail out of the wave one, even they were not able to manage the
operations easily. Regional lockdowns worsened the situation.

The consequent slowdown during the period led to a decrease in loan originations, the sale of third party products, the use of cards by customers and the
efficiency in collection efforts. Various government sponsored schemes as well as the schemes for resolution of stress launch ed by the Reserve Bank of
India are being implemented across the trades to enable the borrowers to survive the stress phase. Moreover, the industrial activities are picking up pace
again and will give boost to the economy. The pandemic shall continue to impact the Bank’s advance portfolio so long as the COVID-19 is completely
eradicated. However, the Bank is also putting in all the efforts to minimize the impact of the pandemic.

25.6.3 For the year ended March 31, 2022

Following the easing of lockdown measures, there was gradual improvement in economic activity in the second half of Financial Year 2021-2022. In Financial
Year 2022, India experienced two more waves of the Covid-19 pandemic that led to the re-imposition of regional lockdowns which were subsequently lifted.
The impact of COVID-19, including changes in customer behaviour and pandemic fears, as well as restrictions on business and individual activities, led to
substantial impact on the economic activities. The disruptions following the outbreak, impacted loan originations, the sale of third-party products and the
efficiency in collection efforts resulting in increase in customer defaults and resulting in increase in provisions there against. Since the number of cases have
reduced significantly and Government of India has withdrawn most of the Covid-19 related restrictions but the extent to which any new wave of COVID-19
impact the Bank’s result is uncertain as it depends upon the future trajectory of the pandemic.

70
 25.6.4 For the year ended March 31, 2021

Consequent to the outbreak of the COVID-19 pandemic, the Government of India, on March 24, 2020, introduced a strict 21-day lockdown. Subsequently,
the national lockdown was lifted by the government, but regional lockdowns continue to be implemented in areas with a significant number of COVID-19
cases.

The impact of COVID-19, including changes in customer behaviour and pandemic fears, as well as restrictions on business and individual activities, has led
to significant volatility in global and Indian financial markets and a significant decrease in global and local economic activities. The slowdown during the year
led to a decrease in loan originations, the sale of third party products, the use of cards by customers and the efficiency in collection efforts. This may lead to
a rise in the number of customer defaults and consequently an increase in provisions there against. The extent to which the COVID-19 pandemic, including
the current “second wave” that has significantly increased the number of cases in India, will continue to impact the Bank's results will depend on ongoing as
well as future developments, which are highly uncertain, including, among other things, any new information concerning the severity of the COVID-19
pandemic and any action to contain its spread or mitigate its impact whether government-mandated or elected by us.

25.6.5 For the year ended March 31, 2020

The pandemic due to COVID-19 continues to spread across the globe. This has deaccelerated economic activity and has increased volatility in the financial
markets. Many organizations, including the Bank, have introduced various containment measures since it was declared as a pandemic by the World Health
Organization (WHO) on March 11, 2020. The Government of India, on March 24, 2020, introduced a strict 21-day lockdown which subsequently got increased
to 19 days more to contain the community spread of the catastrophic virus. The extent to which the COVID-19 pandemic will affect the Bank’s earning
capacity will depend upon future developments, which are highly uncertain. In accordance with the RBI guidelines relating to COVID-19 Regulatory Package
dated March 27,2020 and April 17, 2020, the Bank has granted a moratorium of three months on the payment of all installments and/ or interest as applicable
falling due between March 1, 2020 and May 31, 2020 to the eligible borrowers classified as standard, even if overdue, as on February 29, 2020. For all such
accounts where the moratorium is granted, the asset classification will remain standstill during the moratorium period. In respect of accounts in default but
standard as on the date of the balance sheet and where asset classification benefit has been extended for the moratorium/deferral period in accordance
with the guidelines issued by the Reserve Bank of India, provision of 10 per cent of the outstanding of such accounts is/ will be created in phased manner
i.e. 5% for the quarter ended March 31, 2020 and remaining 5% will be created during the quarter ending June 30, 2020.

The Bank has created general provision of ₹77.00 million for the period ended March 31, 2020 in respect to impact due to COVID-19 which is in excess of
the provision required as per the RBI guidelines.

The details are as under:

(₹ in millions)
Year ended
S. No Particulars
March 31, 2020

Respective amount in SMA/overdue categories, where the moratorium/deferment was extended, in terms of paragraph
1 5,136.80
2 and 3 of the circular

2 Respective amount where asset classification benefits is extended 641.00

3 Provisions made during the quarter ended March 31, 2020 in terms of paragraph 5 of the circular 77.00
4 Provisions adjusted during the respective accounting periods against slippages in terms of paragraph 6 of the circular. -

5 Residual provision as on date in terms of paragraph 6 of the circular. 77.00

25.7 Restructuring of Accounts

25.7.1 Disclosure on Prudential Framework on Resolution of Stressed Assets dated June 07, 2019

The Reserve Bank of India has issued guidelines on Prudential Framework on Resolution of Stressed Assets, dated June 07, 2019. The
Bank has not restructured any account under the framework during the quarters ended June 30, 2022 and June 30, 2021 and years
ended March 31, 2022, March 31, 2021 and March 31, 2020.

25.7.2 Restructuring under “Resolution Framework – 1.0: Resolution Framework for COVID-19-related Stress” and “Resolution
Framework – 2.0: Resolution of Covid-19 related stress of Individuals and Small Businesses” during the year ended March 31,
2022:
(₹ in millions)
Type of borrower Exposure to accounts classified Of (A), aggregate debt Of (A) amount Of (A) amount paid Exposure to accounts
as Standard consequent to that slipped into NPA written off during by the borrowers classified as Standard
implementation of resolution during the half-year the half-year during the half- consequent to
plan – Position as at September year2 implementation of
30, 2021 (A)1 resolution plan –
Position as at March 31,
2022
Personal Loans 284.87 16.02 - 4.80 264.05
Corporate persons* - - - - -
Of which MSMEs - - - - -
Others 34.03 - - 2.92 31.10
Total 318.90 16.02 - 7.72 295.16
* As defined in Section 3(7) of the Insolvency and Bankruptcy Code, 2016

1
includes requests received till September 30, 2021 implemented subsequently
2
Net of increase in exposure during the period

71
 25.7.3 Restructuring under RBI guidelines on “Micro, Small and Medium Enterprises (MSME) sector – Restructuring of Advances”
(₹ in millions)
As on June 30, 2022 As on June 30, 2021 As on March 31, 2022 As on March 31,2021
No. of
No. of accounts No. of accounts No. of accounts
Amount Amount Amount accounts Amount
restructured restructured restructured
restructured
251 1,022.44 182 923.40 255 1046.80 132 807.10

The Bank has not restructured any account under the framework during the year ended March 31, 2020.

72
 25.7.4 Particulars of Accounts Restructured (other than under Covid -19 and MSME restructuring schemes)

Micro, Small and Medium Retail (excluding agriculture and

Agriculture and allied activities Corporate (excluding MSME) Total
Enterprises (MSME) MSME)
Particulars

June June March March June June March March June June March March June June March March June June March March
2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021

Number of
- - - - - - - - - - - - - - - - - - - -
borrowers
Standard Gross Amount - - - - - - - - - - - - - - - - - - - -

Provisions held - - - - - - - - - - - - - - - - - - - -
Number of
- - - - - - - - - - - - - - - - - - - -
borrowers
Sub-
Gross Amount - - - - - - - - - - - - - - - - - - - -
Standard
Provisions held - - - - - - - - - - - - - - - - - - - -
Number of
- - - - - - - - - - - - - - - - - - - -
borrowers
Doubtful Gross Amount - - - - - - - - - - - - - - - - - - - -
Provisions held - - - - - - - - - - - - - - - - - - - -
Number of
- - - - - - - - - - - - - - - - - - - -
borrowers
Total Gross Amount - - - - - - - - - - - - - - - - - - - -

Provisions held - - - - - - - - - - - - - - - - - - - -

The Bank has not restructured any account during the year ended March 31, 2020.

73
25.8 Details of loans transferred/acquired under the master directions of Reserve Bank of India on Transfer of Loan Exposures date d
September 24, 2021

The Bank has not transferred/acquired any stressed loan or loan not in default during the quarters ended June 30, 2022 and year ended March 31,
2022.

25.9 Details of loans to any intermediary for onward lending to third party

The Bank has not given any loan to any intermediary for onward lending to third party during the quarters ended June 30, 2022 and June 30, 2021
and years ended March 31, 2022, March 31, 2021 and March 31, 2020. Further, the Bank has also not received any fund from any party(s) (Funding
Party) with the understanding that the Bank shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf
of the bank (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries during the quarters ended
June 30, 2022 and June 30, 2021 and years ended March 31, 2022, March 31, 2021 and March 31, 2020.

25.10 Fraud Accounts

Quarter ended Quarter ended Year ended Year ended Year ended
Particulars
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020
Number of frauds reported - - - - -

Amount involved in fraud (₹ in millions) - - - - -

Amount of provision made for such
- - - - -
frauds (₹ in millions)
Amount of Unamortized provision
debited from ‘other reserves’ as at the - - - - -
end of the period (₹ in millions)

25.11 Divergence in Asset Classification and Provisioning for NPAs

The Bank had been subjected to assessment by the Reserve Bank of India ('RBI') for the position as on March 31, 2021 and nil NPA divergence
was observed by the RBI.

Further, assessment was carried out by the RBI for the position as on March 31, 2020 (covering financial years 2018-19 and 2019-20). The
divergence observed by RBI for the reference period in respect of the Bank's asset classification and provisioning under the applicable prudential
norms on income recognition, asset classification and provision is below the regulatory threshold requirement for the disclosure and hence the
disclosure, under RBI circular No. RBI/2016-17/283 DBR.BP.BC.No.63/21.04.018/2016-17 April 18, 2017 read with circular No. RBI/2018-19/157
DBR.BP.BC.No.32/21.04.018/2018- 19 dated April 1, 2019, are not made in the Restated Financial Statements.

The Bank has not been subjected to assessment by the RBI for the Financial Year 2021-22 and thereon as on the date of this report.

25.12 Sale of Financial Asset under Securitization/Asset Reconstruction

The Bank has not sold any financial asset to Securitization/ Reconstruction Company for Asset Reconstruction during the quarters ended June 30,
2022 and June 30, 2021 and years ended March 31, 2022, March 31, 2021 and March 31, 2020.

25.13 Sale/Purchase of Non-performing financial assets

The Bank has not purchased/sold any Non-performing financial assets from/to other banks during the quarters ended June 30, 2022 and June 30,
2021 and years ended March 31, 2022, March 31, 2021 and March 31, 2020.

25.14 Letter of comfort

The Bank has not issued any letter of comfort during the quarters ended June 30, 2022 and June 30, 2021 and years ended March 31, 2022,
March 31, 2021 and March 31, 2020.

25.15 Credit Default Swaps

The Bank has not entered into any Credit Default Swaps (CDS) during the quarters ended June 30, 2022 and June 30, 2021 and years ended
March 31, 2022, March 31, 2021 and March 31, 2020.

74
26 Exposures

26.1 Exposure to Real Estate Sector

(₹ in millions)
Quarter ended Quarter ended Year ended Year ended Year ended
Particulars June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020

1. Direct exposure
i. Residential Mortgages –
Lending fully secured by mortgages on
residential property that is or will be
occupied by the borrower or that is
rented;
a. Individual Housing Loans eligible for
4,324.78 2,500.58 3948.42 2,360.37 1,891.01
inclusion in Priority Sector advances

b. Others 5,229.51 3,896.30 4896.33 3,743.61 2,564.98

ii. Commercial Real Estate –

Lending secured by mortgages on
commercial real estate (office buildings,
retail space, multi-purpose commercial
premises, multi-family residential
buildings, multi-tenanted commercial 2,872.34 1,942.13 2,785.55 1,992.51 1,940.90
premises, industrial or warehouse
space, hotels, land acquisition,
development and construction, etc.).
Exposure would also include non-fund
based (NFB) limits;

iii. Investments in Mortgage Backed

Securities (MBS) and other securitized
exposures –
- - - - -
a. Residential

b. Commercial Real Estate - - - - -

2. Indirect Exposure
Fund based and non-fund based
exposures on National Housing Bank 187.42 108.34 92.69 113.22 131.22
(NHB) and Housing Finance Companies
(HFCs).
Total Exposure to Real Estate Sector 12,614.05 8,447.35 11,722.99 8,209.71 6,528.11

75
 26.2 Exposure to Capital Market
(₹ in millions)
Quarter ended Quarter ended Year ended Year ended Year ended
Particulars
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020

i. direct investments in equity shares, convertible

15.40 15.40 15.40 15.40 -
bonds, convertible debentures and units of
equity-oriented mutual funds the corpus of which
is not exclusively invested in corporate debt;

ii. advances against shares/bonds/debentures or - - - - -

other securities or on clean basis to individuals
for investment in shares (including
IPOs/ESOPs), convertible bonds, convertible
debentures and units of equity oriented mutual
funds;
iii. advances for any other purpose where shares or
- - - - -
convertible bonds or convertible debentures or
units of equity oriented mutual funds are taken as
primary security.
iv. advances for any other purpose to the extent - - - - -
secured by the collateral security of shares or
convertible bonds or convertible debentures or
units of equity oriented mutual funds i.e. where
the primary security other than
shares/convertible bonds/convertible
debentures/units of equity oriented mutual funds
does not fully cover the advances;
v. secured and unsecured advances to - - - - -
stockbrokers and guarantees issued on behalf of
stockbrokers and market makers;
vi. loans sanctioned to corporates against the
- - - - -
security of shares/bonds/debentures or other
securities or on clean basis for meeting
promoter’s contribution to the equity of new
companies in anticipation of raising resources;
vii. bridge loans to companies against expected - - - - -
equity flows/issues;

viii. underwriting commitments taken up by the banks - - - - -

in respect of primary issue of shares or
convertible bonds or convertible debentures or
units of equity oriented mutual funds;

ix. financing to stockbrokers for margin trading; - - - - -

x. all exposures to venture capital funds (both - - - - -

registered and unregistered)
Total Exposure to Capital Market 15.40 15.40 15.40 15.40 -

26.4 Risk Category Wise Country Exposure

The Bank is currently operating in the Northern Indian states of Punjab, Haryana, Rajasthan, Himachal and Delhi and in the Union Territory of Chandigarh.
Hence, the Bank does not have any country risk exposure.

26.5 Unsecured Advances against Intangible Assets

The Bank has not extended any advance against intangible securities such as charge over the rights, licenses, authority etc. during the quarters ended
June 30, 2022 and June 30, 2021 and years ended March 31, 2022, March 31, 2021 and March 31, 2020.

26.6 Details of factoring exposure

The factoring exposure of the Bank as at June 30, 2022 and June 30, 2021 and years ended March 31, 2022, March 31, 2021 and March 31, 2020 is nil.

76
26.7 Intra group exposure

The Bank has no intra group exposure during the quarters ended June 30, 2022 and June 30, 2021 and years ended March 31, 2022, March 31, 2021
and March 31, 2020.

26.8 Unhedged Foreign currency exposure

The Bank does not have any unhedged foreign currency exposure as on June 30, 2022 and June 30, 2021 and as on March 31, 2022, March 31, 2021
and March 31, 2020.

26.9 Details of Single Borrower Limit (SBL), Group Borrower Limit (GBL) exceeded by the Bank

The Bank has not exceeded the prudential exposure limits for Single Borrower Limit (SBL) and Group Borrower Limit (GBL) during the quarters ended
June 30, 2022 and June 30, 2021 and years ended March 31, 2022, March 31, 2021 and March 31, 2020.

27 Concentration of Deposits, Advances, Exposures and NPAs

27.1 Concentration of Deposits

(₹ in millions)

Quarter ended Quarter ended Year ended Year ended Year ended
Particulars June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020

Total Deposits of twenty largest

2,223.50 2,127.48 2,859.19 1,929.32 3,399.37
depositors

Percentage of Deposits of twenty largest

3.61% 3.88% 4.73% 3.70% 7.64%
depositors to Total Deposits of the Bank

27.2 Concentration of Advances

(₹ in millions)

Quarter ended Quarter ended Year ended Year ended Year ended
Particulars
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020

Total Advances to twenty largest

3,424.17 2,656.63 3,452.32 2,738.50 2,680.62
borrowers

Percentage of Advances to twenty

largest borrowers to Total Advances of 6.36% 5.49% 6.53% 5.70% 6.81%
the Bank

Concentration of advances has been calculated by taking the total credit exposure to the top twenty borrowers identified on the basis of the RBI
circular on Exposure Norms.

27.3 Concentration of Exposures

(₹ in millions)

Quarter ended Quarter ended Year ended Year ended Year ended
Particulars
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020

Total Exposure to twenty largest

3,424.17 2,656.63 3,452.32 2,738.50 2,680.62
borrowers/ customers

Percentage of Exposures to twenty

largest borrowers/ customers to Total
6.36% 5.49% 6.53% 5.70% 6.81%
Exposure of the Bank on Borrowers/
customers

Concentration of exposures has been calculated by taking the total credit and investment exposure to the top twenty borrowers identified on the
basis of the RBI circular on Exposure Norms.

77
 27.4Concentration of NPAs
(₹ in millions)

Quarter ended Quarter ended Year ended Year ended Year ended
Particulars
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020

Total Exposure to the top twenty

656.20 458.86 613.88 403.94 396.71
NPA accounts

Percentage of exposures to the

twenty largest NPA exposure to 47.42% 50.29% 52.41% 51.63% 67.81%
total Gross NPAs

28 Derivatives

The Bank has not undertaken any derivative business during the quarters ended June 30, 2022 and June 30, 2021 and years ended March 31, 2022,
March 31, 2021 and March 31, 2020.

29 Securitization transactions

The Bank has not done any securitization transactions during the quarters ended June 30, 2022 and June 30, 2021 and years ended March 31, 2022, March
31, 2021 and March 31, 2020.

30 Off Balance Sheet SPVs sponsored

The Bank does not hold any sponsored off balance sheet SPVs during the quarters ended June 30, 2022, June 30, 2021, March 31, 2022, March 31, 2021
and March 31, 2020.

31 Transfer to Depositor Education and Awareness Fund (DEAF)

(₹ in millions)
Quarter ended Quarter ended Year ended Year ended Year ended
Particulars June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020

Opening balance of amount transferred to DEAF 51.71 41.66 41.66 34.02 25.85

Add: Amount transferred to DEAF during the period 3.52 3.28 10.40 8.81 8.45
Less: Amounts reimbursed by DEAF towards claims 1.17 0.14 0.36 1.17 0.28
Closing balance of amounts transferred to DEAF 54.06 44.80 51.71 41.66 34.02

32 Segment Reporting

Segment details in compliance with AS-17 and pursuant to the Reserve Bank of India guidelines, are as under:
(₹ in millions)
Business Corporate/ Other Banking
Treasury Retail Banking Total
Segments Wholesale Banking Operations
Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
Particulars ended ended ended ended ended ended ended ended ended ended
June 2022 June 2021 June 2022 June 2021 June 2022 June 2021 June 2022 June 2021 June 2022 June 2021

Revenue 354.05 383.13 127.47 105.92 1,113.22 958.61 34.40 26.28 1,629.13 1,473.95

Result (4.96) 11.30 19.90 3.63 362.32 259.50 29.47 22.19 406.74 296.62

Unallocated Expenses 163.39 135.10

Operating Profit (PBT) 243.34 161.52

Income Taxes 60.51 39.69

Extraordinary profit/Loss - - - - - - - - - -

Net Profit 182.83 121.83

78
 Other Information :

Segment Assets 21,195.02 24,454.62 4,988.45 3,759.49 46,951.27 37,126.36 16.97 15.35 73,151.71 65,355.82

Unallocated Assets 450.70 302.68

Total Assets 73,616.78 65,658.49

Segment Liabilities - - 1,252.85 1,796.44 64,317.04 56,910.49 - - 65,569.89 58,706.93

Unallocated Liabilities 2,670.33 2,309.53

Total Liabilities 68,240.22 61,016.46

(₹ in millions)
Corporate/
Business Other Banking
Treasury Wholesale Retail Banking Total
Segments Operations
Banking
Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year
ended ended ended ended ended ended ended ended ended ended ended ended ended ended ended
Particulars
March March March March March March March March March March March March March March March
2022 2021 2020 2022 2021 2020 2022 2021 2020 2022 2021 2020 2022 2021 2020

Revenue 1,438.90 1,474.07 1,331.85 455.86 402.27 386.19 4,299.81 3,595.63 3,178.10 129.45 101.00 114.76 6,324.03 5,572.97 5,010.90

Result 66.06 132.20 269.30 39.41 18.30 4.50 1,247.24 837.92 465.43 111.66 86.56 102.26 1,464.37 1,074.98 841.49

Unallocated 619.48 537.61 495.66

Expenses

Operating 844.89 537.37 345.82

Profit (PBT)

Income 219.20 129.53 92.00

Taxes

Extraordinar
- - - - - - - - - - - - - - -
y profit/Loss

Net Profit 625.69 407.84 253.82

Other Information :

Segment 20,751.51 22,747.46 16,848.30 5,091.04 3,941.08 3,796.55 45,253.42 36,574.87 32,337.71 8.23 15.92 15.68 71,104.20 63,279.33 52,998.24
Assets

Unallocated 435.01 433.06 300.53

Assets

Total Assets 71,539.21 63,712.38 53,298.77

Segment 813.45 1,562.96 1,331.65 3,293.96 62,456.26 55,819.94 43,415.09 0.20 - - 64,019.42 57,151.59 47,522.50
- -
Liabilities
Unallocated 2,361.98 2,052.89 1,708.47
Liabilities

Total 66,381.40 59,204.48 49,230.97

Liabilities

Note:
i. The Bank is operating in Domestic Segment so there is only one geographic segment.
ii. Inter Segment transactions are based on transfer pricing as determined by the management consent.

79
 33 Related Party Disclosure

i. Related parties as per Accounting Standard 18

Key Management Personnel:

a. Mr. Sarvjit Singh Samra - Managing Director & Chief Executive Officer
b. Mr. Munish Jain - Chief Financial Officer & Chief Operating Officer
c. Mr. Amit Sharma - Company Secretary (with effect from May 17, 2019)
d. Mr. Sahil Vijay - Company Secretary (till May 17, 2019)
e. Mr. S.K. Dhawan – Head of Credit (KMP w.e.f. October 22, 2021)
f. Mrs. Richa Mahajan – Chief Compliance Officer (KMP w.e.f. October 22, 2021)
g. Mr. Raghav Aggarwal – Chief Risk Officer (KMP w.e.f October 22, 2021)

Relatives of Key Management Personnel:

a. Mr. Sarvjit Singh Samra: Mr. Amarjit Singh Samra, Mr. Amardeep Samra, Mrs. Surinder Kaur Samra, Mrs. Navneet Kaur Samra, Mrs.
Amarpreet Kaur Hayer, Mr. Shahbaz Singh Samra, Mr. Sangram Singh Samra and Sarvjit Singh Samra HUF.
b. Mr. Munish Jain: Mr. Kimti Lal Jain, Mr. Vishal Jain, Mrs. Usha Jain, Mrs. Ruchi Jain, Mrs. Ritu Jain, Mr. Aagam Jain, Mr. Gaurish Jain
and Munish Jain HUF.
c. Mr. Amit Sharma: Mr. Mangal Chand Sharma, Mrs. Bimla Sharma, Mrs. Gitika Sharma, Mr. Kunal Sharma, Miss Amayra Sharma, Mrs.
Poonam Sharma, Mrs. Seema Sharma, Mr. Ajay Sharma and Mrs. Sheetal Sharma.
d. Mr. Sahil Vijay: Mr. Vijay Kumar, Mrs. Kusum Talwar, Mrs. Deepika Sharma and Mr. Aviral Vijay
e. Mr. S.K. Dhawan: Mrs. Jeewan Asha, Mrs. Sujata Dhawan, Mrs. Rajni Dhawan, Mr. Vijay Kumar Dhawan, Mr. Ashwani Kumar Dhawan,
Mr. Arun Kumar Dhawan and Mr. Anil Kumar Dhawan.
f. Mrs. Richa Mahajan: Mr. Gaurav Mahajan, Mr. Arnav Mahajan, Miss Arshia Mahajan, Mrs. Neelam Sehgal, Mr. R.K. Sehgal and Mr.
Akhil Sehgal.
g. Mr. Raghav Aggarwal: Mr. Sunil Aggarwal, Mrs. Indu Aggarwal, Mrs. Himani Mittal and Mr. Karan Aggarwal

Associates/ Joint Ventures/ Others:

a. Capital Foundation Trust

ii. The balances payable to/receivable from the related parties of the Bank are given below:
(₹ in millions)
Associates/ Relatives of Key
Items/ Key Management
As on Parent Subsidiary Joint Ventures/ Management Total
Related Party Personnel
Others Personnel

June 30, 2022 - - - 8.90 20.20 29.10

June 30, 2021 - - - 4.00 15.70 19.70
Borrowings March 31,2022 - - - 2.40 19.20 21.60
March 31, 2021 - - - 1.00 14.70 15.70
March 31, 2020 - - - 1.00 12.70 13.70
June 30, 2022 - - 10.93 12.84 39.70 63.48
June 30, 2021 - - 4.58 7.79 57.14 69.51
Deposits March 31, 2022 - - 8.15 14.29 39.37 61.81
March 31, 2021 - - 3.55 11.25 31.77 46.56
March 31, 2020 - - 1.88 5.55 30.31 37.74
June 30, 2022 - - - - - -
June 30, 2021 - - - - - -
Placement of March 31, 2022 - - - - - -
Deposits
March 31, 2021 - - - - - -
March 31, 2020 - - - - - --
June 30, 2022 - - - 7.96 0.34 8.29

June 30, 2021 - - - 2.20 - 2.20

Advances March 31, 2022 - - - 8.10 0.15 8.25
March 31, 2021 - - - - - -
March 31, 2020 - - - 0.09 - 0.09

80
 June 30, 2022 - - - - - -

June 30, 2021 - - - - - -

Investments March 31, 2022 - - - - - -

March 31, 2021 - - - - - -

March 31, 2020 - - - - - -

June 30, 2022 - - - - - -

June 30, 2021 - - - - - -

Non funded
March 31, 2022 - - - - - -
commitments
March 31, 2021 - - - - - -

March 31, 2020 - - - - - -

June 30, 2022 - - - - - -

June 30, 2021 - - - - - -

Leasing/ HP
arrangements March 31, 2022 - - - - - -
availed
March 31, 2021 - - - - - -

March 31, 2020 - - - - - -

June 30, 2022 - - - - - -

June 30, 2021 - - - - - -

Leasing/ HP
arrangements March 31, 2022 - - - - - -
provided March 31, 2021 - - - - - -

March 31, 2020 - - - - - -

iii. The maximum balances payable to/receivable from the related parties of the Bank during the period are given below:

(₹ in millions)
Associates/ Relatives of Key
Items/ Key Management
Period ended Parent Subsidiary Joint Ventures/ Management Total
Related Party Personnel
Others Personnel
June 30, 2022 - - - 8.90 20.20 29.10
June 30, 2021 - - - 4.00 19.70 23.70
Borrowings March 31, 2022 - - - 4.00 23.20 27.20
March 31, 2021 - - - 1.00 14.70 15.70
March 31, 2020 - - - 1.50 15.10 16.60
June 30, 2022 - - 14.97 18.27 45.55 78.79
June 30, 2021 - - 7.10 19.16 63.94 90.20
Deposits March 31, 2022 - - 10.43 27.37 99.46 137.25
March 31, 2021 - - 4.05 24.56 71.59 100.19
March 31, 2020 - - 4.56 65.09 123.13 192.78
June 30, 2022 - - - - - -
June 30, 2021 - - - - - -
Placement of March 31, 2022 - - - - - -
Deposits
March 31, 2021 - - - - - -
March 31, 2020 - - - - - -
June 30, 2022 - - - 11.43 0.51 11.93
Advances June 30, 2021 - - - 2.22 - 2.22
March 31, 2022 - - - 9.48 0.15 9.63

81
 March 31, 2021 - - - 0.07 0.15 0.22
March 31, 2020 - - - 4.35 0.11 4.46
June 30, 2022 - - - - - -
June 30, 2021 - - - - - -
March 31, 2022 - - - - - -
Investments
March 31, 2021 - - - - - -
March 31, 2020 - - - - - -
June 30, 2022 - - - - - -
June 30, 2021 - - - - - -
Non funded
March 31, 2022 - - - - - -
commitments
March 31, 2021 - - - - - -
March 31, 2020 - - - - - -
June 30, 2022 - - - - - -
June 30, 2021 - - - - - -
Leasing / HP
arrangements March 31, 2022 - - - - - -
availed March 31, 2021 - - - - - -
March 31, 2020 - - - - - -
June 30, 2022 - - - - - -
June 30, 2021 - - - - - -
Leasing / HP
arrangements March 31, 2022 - - - - - -
provided March 31, 2021 - - - - - -
March 31, 2020 - - - - - -

iii. The details of transactions of the Bank with its related parties during the period are given below:

(₹ in millions)
Associates/ Relatives of Key
Items/ Key Management
Period ended Parent Subsidiary Joint Ventures/ Management Total
Related Party Personnel
Others Personnel
June 30, 2022 - - - - - -
June 30, 2021 - - - - - -
Purchase of
March 31, 2022 - - - - - -
fixed assets
March 31, 2021 - - - - - -
March 31, 2020 - - - - - -
June 30, 2022 - - - - - -
June 30, 2021 - - - - - -
Sale of fixed
March 31, 2022 - - - - - -
assets
March 31, 2021 - - - - - -
March 31, 2020 - - - - - -
June 30, 2022 - - 0.05 0.37 1.06 1.48
June 30, 2021 - - 0.02 0.16 0.79 0.97
Interest paid March 31, 2022 - - 0.08 0.93 4.07 5.08
March 31, 2021 - - 0.06 0.71 3.90 4.67
March 31, 2020 - - 0.06 0.77 3.58 4.41
June 30, 2022 -
- - 0.13 0.01 0.14

82
 Interest June 30, 2021 - - - 0.03 - 0.03
received March 31, 2022 - - - 0.48 0.01 0.49
March 31, 2021 - - - - 0 0
March 31, 2020 - - - 0.06 0 0.06
June 30, 2022 - - - 1.17 4.10 5.28
Receiving of June 30, 2021 - - - 1.12 3.92 5.04
Services
March 31, 2022 - - - 4.54 15.89 20.43
(Leasing)
March 31, 2021 - - - 4.53 15.85 20.38
March 31, 2020 - - - 4.48 15.75 20.23
June 30, 2022 - - - 19.51 0.71 20.22
Receiving of June 30, 2021 - - - 9.14 0.68 9.82
Services March 31, 2022 - - - 36.23 2.32 38.55
(Salary) March 31, 2021 - - - 25.24 1.70 26.94
March 31, 2020 - - - 25.67 1.27 26.94
June 30, 2022 - - - - - -
June 30, 2021 - - - - - -
Management
March 31, 2022 - - - - - -
Contracts
March 31, 2021 - - - - - -
March 31, 2020 - - - - - -
June 30, 2022 - - 2.90 - - 2.90
June 30, 2021 - - 1.93 - - 1.93
CSR Expense/ 7.71 7.71
March 31, 2022 - - - -
Contribution 6.15 6.15
March 31, 2021 - - - -
March 31, 2020 - - 5.25 - - 5.25

For a person being a KMP for the current year or part thereof, the consideration paid during the complete financial year has been disclosed.

34 Leases

Operating Leases

The Bank has commitments under long term non-cancellable operating leases primarily for premises. The terms of renewal and escalation clauses are
those normally prevalent in the agreements of similar nature. Following is a summary of future minimum lease rental commitments for such non-
cancellable operating leases.
(₹ in millions)
Particulars Quarter ended Quarter ended Year ended Year ended Year ended
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020
Not later than one year 9.57 12.77 10.80 13.91 15.49
Later than one year and not later than five years 17.71 25.00 19.00 31.00 24.86
Later than five years 30.02 32.27 30.47 38.65 29.78
Total Minimum lease rental commitments 57.31 70.04 60.28 83.56 70.13

Total lease rental expenditure under cancellable and non-cancellable operating leases debited to Profit and Loss account during the quarter ended
June 30, 2022 is ₹43.37 million (during quarter ended June 30, 2021 is ₹41.84 million and during the year ended March 31, 2022 is 169.73 million,
during the year ended March 31, 2021 is ₹168.29 million and year ended March 31, 2020 is ₹169.40 million.

Finance Lease

The Bank has not taken any asset under finance lease during the quarters ended June 30, 2022 and June 30, 2021 and years ended March 31, 2022,
March 31, 2021 and March 31, 2020.

83
35 Earnings Per Share

Particulars Quarter ended Quarter ended Year ended Year ended Year ended
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020

Net profit after tax available for equity shares 182.83 121.83 625.69 407.84 253.82
(₹ in millions)

Weighted average number of equity shares 34,154,499 33,922,273 33,995,016 33,861,909 31,046,437

Weighted average number of equity shares

34,261,398 34,117,184 34,338,552 34,041,782 31,116,679
for diluted earnings

Basic Earnings per share (₹) 5.35* 3.59* 18.41 12.04 8.18

Diluted Earnings per share (₹) 5.34* 3.57* 18.22 11.98 8.16

Face Value per share (₹) 10.00 10.00 10.00 10.00 10.00
*not-annualized

36 Disclosure of Complaints

36.1.1 Customer Complaints pertaining to Retail Payment Channels (RTGS/NEFT, Automated Teller Machine (ATM)/ Point of Sale (POS)
Transactions/Ecommerce Transactions, BBPS, IMPS, etc.)

Quarter ended Quarter ended Year ended Year ended Year ended
S.no. Particulars March 31, 2022 March 31, 2021 March 31, 2020
June 30, 2022 June 30, 2021
Complaints received by bank from its
customers
Number of complaints pending at beginning of the
1 11 8 8 4 15
period
2 Number of complaints received during the period* 322 265 1,439 762 630
3 Number of complaints disposed during the period 321 265 1,436 758 641
Of which, number of complaints rejected by the
3.1 105 95 444 216 147
Bank
Number of complaints pending at the end of the
4 12 8 11 8 4
period
Maintainable complaints received by the Bank
from the OBOs
Number of maintainable complaints received by
5 2 - 5 5 4
the Bank from OBOs
Of 5, number of complaints resolved in favor of
5.1 2 - 1 - -
the Bank by Bos
Of 5, number of complaints resolved through
5.2 - - 4 - 1
conciliation/ mediation/ advisories issued by Bos
Of 5, number of complaints resolved after passing
5.3 - - - - -
of Awards by BOs against the Bank
Number of awards unimplemented within the
6 - - - - -
stipulated time (other than those appealed)
*Out of the above complaints, 316 complaints are related to acquiring banks during the current quarter ending June 30, 2022. (252 for quarter ended
June 2021; 1,379 for year ended March 31, 2022; 722 for year ended March 31, 2021; 600 for year ended March 31, 2020).

36.1.2 Customer Complaints other than above:

S.no. Particulars Quarter ended Quarter ended Year ended Year ended Year ended
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020
Complaints received by bank from its
customers
Number of complaints pending at beginning of the 5 3 3 1 6
1
period
2 Number of complaints received during the period 61 79 297 291 159

3 Number of complaints disposed during the period 63 75 295 289 164

Of which, number of complaints rejected by the 17 19 86 52 -

3.1
Bank
Number of complaints pending at the end of the 3 7 5 3 1
4
period

84
 Maintainable complaints received by the Bank
from the OBOs
Number of maintainable complaints received by 2 3 18 28 20
5
the Bank from OBOs
Of 5, number of complaints resolved in favor of 1 2 13 10 3
5.1
the Bank by Bos
Of 5, number of complaints resolved through - - 6 5 9
5.2
conciliation/ mediation/ advisories issued by Bos
Of 5, number of complaints resolved after passing
5.3 - - - - -
of Awards by BOs against the Bank
Number of awards unimplemented within the
6 - - - - -
stipulated time (other than those appealed)

36.1.3 Top 5 grounds of Complaints received by the Bank during the quarter ended June 30, 2022:

% increase/
Number of
Number of decrease in the
complaints Number of complaints Of 5, number of
Grounds of complaints, (i.e. complaints pending number of
received pending at the end of complaints pending
complaints relating to) at the beginning of complaints received
during the the period beyond 30 days
the period over the previous
period
period
1 2 3 4 5 6
Ground - 1
Internet/Mobile/Electronic 10 212* 28.48% 9 2
Banking
Ground - 2 ATM/Debit Cards 3 107* (1.83%) 3 -

Ground - 3 Loans and 2 13 0% 1 -

Advances
Ground - 4 Account
Opening/ Difficulty in - 12 71.43% - -
operations
Ground - 5 Levy of charges
without prior notice/ - 10 11.11% - -
excessive charges/
foreclosure Charges
Others
(Complaints not covered in 1 29 (29.27%) 2 -
above top 5 grounds)

Total 16 383 11.34% 15 2

*316 complaints are related to acquiring banks.

Top 5 grounds of Complaints received by the Bank during the quarter ended June 30, 2021:

% increase/
Number of
Number of decrease in the
complaints Number of complaints Of 5, number of
Grounds of complaints, (i.e. complaints pending number of
received pending at the end of complaints pending
complaints relating to) at the beginning of complaints received
during the the period beyond 30 days
the period over the previous
period
period
1 2 3 4 5 6
Ground - 1
Internet/Mobile/Electronic 1 165* 292.86% 7 1
Banking
Ground - 2 ATM/Debit Cards 6 109* 28.24% 2 -

Ground - 3 Loans and

- 13 44.44% 1 -
Advances
Ground - 4 Staff Behaviour - 10 (9.09%) 1 -
Ground - 5 Foreclosure
3 9 12.50% 3 1
Charges
Others
(Complaints not covered in 1 38 26.67% 1 -
above top 5 grounds)
Total 11 344 85.95% 15 2
*252 complaints are related to acquiring banks.

85
 Top 5 grounds of Complaints received by the Bank during the year ended March 31, 2022

Number of
Number of % increase/ decrease
complaints Number of complaints Of 5, number of
Grounds of complaints, (i.e. complaints in the number of
pending at the pending at the end of complaints pending
complaints relating to) received during the complaints received
beginning of the year beyond 30 days
year over the previous year
the year
1 2 3 4 5 6
Ground - 1
-
Internet/Mobile/Electronic 1 908* 172.67% 8
Banking
-
Ground - 2 ATM/Debit Cards 6 551* 14.08% 5

Ground - 3 Loans and -

- 58 34.88% 2
Advances
Ground - 4 Levy of charges
without prior notice/
3 40 (6.98)% - -
Excessive charges/
Foreclosure Charges
Ground - 5 Account
Opening/ Difficulty in - 33 6.45% - -
operation of accounts
Others
-
(Complaints not covered in 1 146 21.67% 1
above top 5 grounds)
Total 11 1,736 64.86% 16 -
*1,379 complaints are related to acquiring banks

Top 5 grounds of Complaints received by the Bank during the year ended March 31, 2021:

Number of
Number of % increase/ decrease
complaints Number of complaints Of 5, number of
Grounds of complaints, (i.e. complaints in the number of
pending at the pending at the end of complaints pending
complaints relating to) received during the complaints received
beginning of the year beyond 30 days
year over the previous year
the year
1 2 3 4 5 6
Ground - 1 ATM/Debit Cards 4 483* (17.86%) 6 -
Ground - 2
Internet/Mobile/Electronic 333* 389.70% 1 -
-
Banking

Ground - 3 Foreclosure
1 43 290.91% 3 3^
Charges
Ground - 4 Loans and
43 13.16% - -
Advances -

Ground - 5 Staff Behaviour 35 600% - -

-
Others
(Complaints not covered in - 116 46.84% 1 1^
above top 5 grounds)
Total 5 1,053 33.46% 11 4
* 722 complaints are related to acquiring banks ^Representation raised with OBO office/other bank

Top 5 grounds of Complaints received by the Bank during the year ended March 31, 2020:

Number of
Number of % increase/ decrease in
complaints Number of complaints Of 5, number of
Grounds of complaints, (i.e. complaints the number of
pending at the pending at the end of complaints pending
complaints relating to) received during complaints received
beginning of the year beyond 30 days
the year over the previous year
the year
1 2 3 4 5 6
Ground - 1 ATM/Debit Cards 16 588* 6.52% 4 -
Ground - 2
Internet/Mobile/Electronic 2 68* 1600%^ - -
Banking

86
Ground - 3 Loans and
- 38 442.86% - -
Advances
Ground - 4 Account
opening/Difficulty in - 22 266.67% - -
operations
Ground - 5 Foreclosure
1 11 10% 1 -
Charges
Others
(Complaints not covered in 2 62 195.24% - -
above top 5 grounds)
Total 21 789 31.50% 5 -
* 600 complaints are related to acquiring banks ^ The Mobile Banking app was launched in March 2019

36.1.4 Awards Passed by the Banking Ombudsman

Quarter ended Quarter ended Year ended Year ended Year ended
Particulars June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020

No of Unimplemented Awards at the beginning of - - - - -

the period
No. of Awards passed by the Banking Ombudsmen - - - - -
during the period
No. of Awards implemented during the period - - - - -

No. of Unimplemented Awards at the end of the - - - - -

period

37 Disclosure of Penalties Imposed by the RBI

There has been no penalty imposed by the Reserve Bank of India on the Bank except that of ₹0.11 million during quarter ended June 2022 for non-
replenishment of ATMs in terms of RBI circular no. RBI/2021-22/84 DCM (RMMT) No. S153/11.01.01/2021-22 on Monitoring of Availability of Cash in ATMs
dated August 10, 2021.

There has been no penalty imposed by the RBI during the quarter ended June 30, 2021 and years ended March 31, 2022, March 31, 2021 and March 31,
2020.

38 Remuneration

38.1.1 Qualitative Information with reference to Whole Time Directors / Managing Director & Chief Executive Officer/Material Risk Takers (MRT)
1. Nomination and Remuneration Committee
The Bank has constituted Nomination and Remuneration Committee (NRC) for overseeing and governing the compensation polices of the Bank.
The committee oversees the framing, review and implementation of compensation policy of the Bank on behalf of the Board for Managing Director
& Chief Executive Officer, Whole Time Directors & Material Risk Takers.

The Board of Directors in the meeting held on May 11, 2021 reconstituted the Nomination and Remuneration Committee. The Committee has four
members including two members from Risk Management Committee of the Board. The majority of the members of the committee are independent
non-executive Directors consisting of the following Members:

 Mr. Gurpreet Singh Chug, Chairman

 Mr. Sham Singh Bains, Member
 Mr. Gurdeep Singh, Member
 Mr. Rakesh Soni, Member

2. Philosophy and Key Objectives

The Compensation Policy (“the Policy”) of the Bank aims at the Bank’s philosophy to recruit, motivate, reward and retain employees who believe in,
and live by, our culture and values. The Bank endeavors to encourage entrepreneurship by creating a working environment that motivates high
performance so that all employees can positively contribute to the strategy, vision, goals and values of the Bank. The key objectives of the Policy
are:
 To support the organization’s strategy by helping to build a competitive, high performance and innovative company with an entrep reneurial
culture that attracts, retains, motivates and rewards high-performing employees;
 To promote the achievement of strategic objectives within the company’s risk appetite;
 To promote / support positive outcomes across the economic and social context in which the company operates and
 To promote an ethical culture and responsible corporate citizenship.

87
  To ensure that the remuneration of “MD & CEO”, “Whole Time Directors” & Material Risk Takers is fair and reasonable in the context of
overall Bank’s remuneration.
 Adherence to principles of good corporate governance, as depicted in “best practice” and regulatory frameworks
 Make a clear distinction between levels of accountability and pay package.

2. Fixed Pay
The fixed pay is the base element of the remuneration that reflects the employee’s role or position in the Bank and is payable for doing the expected
job, including but not limited to basic salary, statutory bonus, allowances, perquisites, profit in lieu of salary and any other component paid, measured
on the cost to company basis. Guaranteed remuneration is paid on monthly basis and is normally benchmarked against the financial services market
and is aligned to the expected operational performance.

3. Variable Pay
The variable pay is the reward element of the remuneration, focused to create a performance culture in the Bank, is payable as a reward to
individuals or teams for achieving strong results in terms of pre-determined goals. The variable remuneration of an employee(s) can be short term
or long term depending upon the category of the employee(s): (1) Short Term Variable Remuneration is paid on not greater than yearly frequency
on the basis of performance based scorecard or individual employee rating; or/and (2) Long Term Variable Remuneration is paid on more than
annual frequency on the basis of longevity and long-term performance of the employee in the form of ESOPs only (including Cash Linked Stock
Appreciation Rights).

 The variable pay should be:

 Atleast 100% but not more than 200% of the fixed pay in case of Managing Director and CEO and Whole Time Director;;
 Atleast 50% but not more than 70% (earlier 60%) of the fixed pay for executive overseeing one business line and atleast 75% (earlier
50%) but not more than 125% (earlier 70%) of the fixed pay for executive overseeing more than one business line in case of other
MRTs..
 Out of above, 50% of the variable pay should be via non cash instruments. In case, any the executive, is barred by statute or regulation
from grant of Share-linked Instruments, the whole amount can be paid via cash.
 Within the said range and as per the above ceiling, the NRC decides the short term variable pay %age for the Period keeping in the view
the various factors including but not limited to present and prospective capital position, market dynamics and risk position of the Bank.
 The variable pay is linked with the performance of the executive and performance of the Bank during the period and accordingly the
performance measurement is done basis various key performance indicators including:
 Individual Rating;
 Profitability Achievement;
 Business Growth Achievement;
 Credit Risk (NPA position, SMA 2 position);
 Market Risk (LCR, Duration gap Analysis);
 Solvency Risk (Leverage Ratio, Capital Adequacy Ratio)

 A minimum of 60% of the total variable pay (including at least 50% of the cash component if cash component is ₹2.5 million or more), should
be deferred over a period of 3 years. Further, in case of various events, the deferred compensation is subject to the malus arrangement.
 The Variable pay in case of Managing Director and CEO and Whole Time Director is subject to approval from the Reserve Bank of India.

4. Guaranteed Bonus
The Bank does not allow any guaranteed bonus except bonus payable under the Payment of Bonus Act. Further, the Joining/Signing bonus is
permissible in the context of hiring of executive in the form of ESOPs only and be limited to the first year. Further, the Bank will not grant severance
pay other than accrued benefits (gratuity, retiral benefits, etc.) except in case where it is mandatory by any statute.

5. Hedging
The Bank does not provide any facility or funds or permit employees to insure or hedge their compensation structure to offset the risk alignment
effects embedded in their compensation arrangement.

88
38.1.2 Quantitative Information with reference to Whole Time Directors/Managing Director & Chief Executive Officer/Material Risk Takers

S. No. Particulars Quarter ended June 30, 2022 Quarter ended June 30, 2021 Year ended March 31, 2022 Year ended March 31, 2021 Year ended March 31, 2020
A Number of meetings held by the Number of Meetings: 2 Number of Meetings: 1 Number of Meetings: 6 Number of Meetings: 2 Number of Meetings: 5
Remuneration Committee during the No remuneration is being paid No remuneration is being paid No remuneration is being No remuneration is being No remuneration is being paid
financial period and remuneration paid to its to members except the sitting to members except the sitting paid to members except paid to members except the to members except the sitting
members. fees. fees. the sitting fees. sitting fees. fees.

B.1 Number of employees having received a

variable remuneration award during the - - 2 2 1
financial period.
B.2 Number and total amount of sign-on awards
- - - - -
made during the financial period.
B.3 Details of guaranteed bonus, if any, paid as
- - - - -
joining / sign on bonus
B.4 Details of severance pay, in addition to
- - - - -
accrued benefits, if any.
C.1 Total amount of outstanding deferred Total amount of deferred Total amount of deferred Total amount of deferred Total amount of deferred
remuneration, split into cash, shares and remuneration as On June 30, remuneration as on June 30, remuneration as on March remuneration as on March
share-linked instruments and other forms. 2022 (cumulative including the 2021 is: 31, 2022 (cumulative 31, 2021 is:
previous year remuneration) is  Cash incentive ₹7.18 including the previous year  Cash incentive ₹7.18
• Cash incentive ₹10.56 million; and remuneration) is million; and -
million; and  No. of options granted-  Cash incentive  No. of options granted
• No. of options granted 19,251 ₹12.50 million; and 19,251
32,133  No. of options
granted 38,550
C.2 Total amount of deferred remuneration paid Total amount of deferred
out in the financial period. remuneration paid out during
the quarter ended June 30,
2022 (cumulative including the
previous year remuneration) is - - - -
• Cash incentive ₹1.94 million;
and
• No. of options exercised:
6,417
D Breakdown of amount of remuneration  Fixed pay ₹5.09 million  Fixed pay ₹6.47 million  Fixed pay ₹22.5 million  Fixed pay ₹23.41 million  Fixed pay ₹9.20 million
awards for the financial period to show fixed  Variable pay (cash)  Variable pay (cash)  Variable pay (cash) ₹1.07
and variable, deferred and non-deferred. ₹13.4 million for FY ₹12.77 million for FY million
2021-22 out of which 2020-21
₹6.7 million is deferred. out of which ₹7.18 million
 Variable pay (ESOPs is deferred
to MRT) 19,299 options

89
 out of which 19,299  Variable pay (ESOPs
options are deferred. granted to MRT) 19,251
The variable remuneration options
payable to MD & CEO shall out of which 19,251
be paid subject to approval options are deferred
from the RBI.
The variable remuneration
payable to MD & CEO shall
be paid subject to approval
from RBI
E.1 Total amount of outstanding deferred Total amount of deferred Total amount of deferred Total amount of deferred Total amount of deferred
remuneration and retained remuneration remuneration as On June 30, remuneration as on June 30, remuneration as on March remuneration as on March
exposed to ex post explicit and / or implicit 2022 (cumulative including the 2021 is: 31, 2022 (cumulative 31, 2021 is:
adjustments. previous year remuneration) is  Cash incentive ₹7.18 including the previous year  Cash incentive ₹7.18
• Cash incentive ₹10.56 million; and remuneration) is million; and -
million; and  No. of options granted  Cash incentive  No. of options granted
• No. of options granted 19,251 ₹12.50 million; and 19,251
32,133  No. of options
granted 38,550
E.2 Total amount of reductions during the
financial period due to ex- post explicit - - - - -
adjustments.
E.3 Total amount of reductions during the
financial period due to ex- post implicit - - - - -
adjustments.
F Number of MRTs identified. 2 2 2 2 Not applicable
G.1 Number of cases where malus has been
- - - - -
exercised.
G.2 Number of cases where clawback has been
- - - - -
exercised
G.3 Number of cases where both malus and
- - - - -
clawback have been exercised
H The mean pay for the bank as a whole
The Bank does not have any The Bank does not have any The Bank does not have The Bank does not have any The Bank does not have any
(excluding sub-staff) and the deviation of the WTD other than MD. WTD other than MD. any WTD. WTD other than MD. WTD other than MD.
pay of each of its WTDs from the mean pay

90
39 Disclosure on remuneration to Non-Executive Directors

Remuneration by way of sitting fees to the Non-Executive Directors for attending meetings of the Board and its committees during the quarter ended June
30, 2022 amounted to ₹0.80 million (₹0.92 million during the quarter ended June 30, 2021; ₹3.60 million during the year ended March 31, 2022; ₹2.32
million during the year ended March 31, 2021 and ₹2.67 million for the year ended March 31, 2020).

Further, during the current quarter, the Bank has paid remuneration amounting to ₹1.14 million (₹0.30 million during the quarter ended June 30, 2021; ₹1.35
million during the year ended March 31, 2022; ₹1.13 million during the year ended March 31, 2021 and ₹0.68 million for the year ended March 31, 2020) to
the Non-Executive Directors.

40 Accounting for employee share based payments

40.1 Capital Small Finance Bank Limited – Employees Stock Option Plan 2018 (“CSFB ESOP 2018”) was approved by the shareholders of the Bank, in
the Annual General Meeting held on August 18, 2018 amended further on October 22, 2021, for granting equity stock options to its employees and
directors (other than independent directors) and Capital Small Finance Bank Limited – Employees Stock Option Plan for Material Risk Takers (“CSFB
ESOP for MRTs”) was approved by the shareholders of the Bank on July 11, 2020 amended further on October 22, 2021, for granting equity stock
options to its material risk takers.

40.2 The Stock Options will be equity settled.

40.3 The accounting for stock options is in accordance with the Guidance Note on Accounting for Employee Share-based Payments issued by the
Institute of Chartered Accountants of India.

40.4 The Nomination and Remuneration Committee of the Bank is empowered to administrate, implement and superintend the plan. Its powers include
determination of eligible employees, determine the parameters for grant of options, vesting conditions, determination of exercise period, among others.

40.5 The details of the schemes are as under:

Scheme Grant Date of Grant Vesting Exercise Period Exercise Method of

Price per Settlement
option
CSFB ESOP 2018 Tranche 1 April 30, 2019 Graded Vesting: Twelve months ₹98 Equity
April 30, 2020- 25% from the date of
April 30, 2021- 30%
vesting
April 30, 2022- 45%

CSFB ESOP for Tranche 1 April 30, 2021 Graded Vesting: Twelve months ₹10 Equity
MRTs April 30, 2022- 33.33% from the date of
April 30, 2023- 33.33%
vesting
April 30, 2024- 33.33%

CSFB ESOP 2018 Tranche 2 July 15, 2021 September 30, 2023- Twelve months ₹98 Equity
100% from the date of
vesting

CSFB ESOP 2018 Tranche 3 September 01, August 31, 2024- 100% Twelve months ₹98 Equity
2021 from the date of
vesting

CSFB ESOP for Tranche 2 April 30, 2022 Graded Vesting: Twelve months ₹10 Equity
MRTs April 30, 2023- 33.33% from the date of
April 30, 2024- 33.33% vesting
April 30, 2025- 33.33%

CSFB ESOP 2018 Tranche 4 June 15, 2022 August 31, 2024- 100% Twelve months ₹98 Equity
from the date of
vesting

91
 40.6 Activity in the options outstanding-
Under CSFB ESOP 2018 -

Quarter ended Quarter ended Year ended Year ended Year ended
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March31, 2020
Particulars
(Number of (Number of (Number of (Number of (Number of
Options) Options) Options) Options) Options)
Options outstanding, beginning of period 5,72,439 4,65,511 4,65,511 6,50,496 -
Granted during the period 76,000 - 3,26,750 - 6,50,496
Exercised during the period 1,83,596 92,286 1,33,410 1,03,464 -
Forfeited / Lapsed during the period 39,350 37,363 86,412 81,521 -
Options outstanding, end of period 4,25,493 3,35,862 5,72,439 4,65,511 6,50,496

Options exercisable 73,243 88,037 47,940 38,823 -

Under CSFB ESOP for MRTs-

Quarter ended Quarter ended Year ended

June 30, 2022 June 30, 2021 March 31, 2022
Particulars
(Number of (Number of (Number of
Options) Options) Options)
Options outstanding, beginning of period 19,251 - -

Granted during the period 19,299 19,251 19,251

Exercised during the period 6,417 - -

Forfeited/ Lapsed during the period - - -

Options outstanding, end of period 32,133 19,251 19,251
Options exercisable - - -

40.7 The table below shows the fair value of options and inputs considered for calculating them as per the Black Scholes method-

CSFB ESOP 2018 CSFB ESOP 2018 CSFB ESOP 2018 CSFB ESOP 2018
Particulars
(Tranche 1) (Tranche 2) (Tranche 3) (Tranche 4)
Date of grant April 30, 2019 July 15, 2021 September 01, 2021 June 15, 2022
Fair Value of option (₹) 132.17 181.18 185.29 222.93
Risk-free interest rate (%) 6.65%-6.99% 5.06% 5.14% 6.89%
Expected life (years) 1.50-3.50 years 2.71 years 3.50 years 2.71 years
Expected volatility (%) 31.53%-33.01% 44.03% 41.80% 43.67%
Expected dividend rate (%) 0% 0% 0% 0%

CSFB ESOP for CSFB ESOP for

Particulars
MRTs (Tranche 1) MRTs (Tranche 2)
Date of grant April 30, 2021 April 30, 2022

Fair Value of option (₹) 255.04 294.14

Risk-free interest rate (%) 4.13%-5.15% 4.96%-6.20%

Expected life (years) 1.50-3.50 years 1.50-3.50 years

Expected volatility (%) 42.07%-50.86% 44.64%-45.80%

Expected dividend rate (%) 0% 0%

40.8 The RBI vide its clarification dated August 30, 2021 on guidelines on compensation of whole time directors/chief executive officers/material risk takers and
control function staff, advised banks that the fair value of the share linked instruments on the date of grant should be recognized as an expense for all
instruments granted after the period ending March 31, 2021. Accordingly, the Bank measures the cost of ESOP using the fair value method for stock
options granted post March 31, 2021 including grant to the Material Risk Takers as a part of their variable compensation and uses the intrinsic value
method for stock options granted prior to the said period. Had the Bank used the fair value model to determine compensation, which had nil incremental
cost during the quarter ended June 30, 2022, for periods prior to year ended March 31, 2022 its profit after tax and earnings per share as reported would
have changed as indicated below-

92
 (₹ in millions)

Quarter ended Year ended Year ended Year ended

Particulars
June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020

Restated Profit after tax as reported 121.83 625.69 407.84 253.82

Add: ESOP cost using intrinsic value method (net of tax) 2.43 15.31 16.55 12.07
Less: ESOP cost using fair value method (net of tax) (2.77) (17.65) (19.08) (13.91)
Profit after tax (adjusted) 121.49 623.35 405.31 251.98
Earnings Per Share -
Basic (₹)*
- As reported 3.59 18.41 12.04 8.18
- Adjusted for ESOP using fair value method 3.58 18.34 11.97 8.12
Diluted (₹)*
- As reported 3.57 18.22 11.98 8.16
- Adjusted for ESOP using fair value method 3.54 18.02 11.85 8.08

*not-annualized for quarter ended June 2021

93
 41 Staff Retirement Benefits

41.1 Reconciliation of opening and closing balance of the present value of the defined benefit obligation for the gratuity benefit of the
Bank is as below:

(₹ in millions)
Quarter ended Quarter ended Year ended Year ended Year ended
Particulars
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020

Defined benefit obligation liability

Opening Obligations 73.49 64.52 64.52 53.11 40.53

Service Cost 2.35 2.41 9.97 9.88 8.77

Interest Cost 1.33 1.11 4.45 3.65 3.11

Actuarial (Gain)/Loss (4.02) (1.81) (1.93) (0.82) 3.12

Liabilities extinguished on settlement - - - - -

Benefits Paid (1.96) (1.03) (3.51) (1.30) (2.42)

Obligations at last date of the period 71.19 65.20 73.49 64.52 53.11

Plan Assets at fair value

Opening Plan Assets, at fair value 74.45 64.80 64.80 54.28 40.74

Expected return on plan assets 1.30 1.11 4.47 3.93 2.99

Actuarial Gain/(Loss) (3.14) (0.05) (1.32) 2.99 1.11

Assets distributed on settlement

Contributions - - 10.02 4.90 11.86

Benefits Paid (1.96) (1.03) (3.51) (1.30) (2.42)

Plan Assets at fair value at last date of the

period
Fair Value of Plan Assets at the end of the 70.65 64.83 74.45 64.80 54.28
period
Present Value of the defined benefit obligation 71.19 65.20 73.49 64.52 53.11
at the end of the period
Asset/(Liability) at last date of the period (0.54) (0.37) 0.96 0.28 1.17

Experience adjustments on Plan Liabilities (0.59) 0.86 (1.86) (1.82) (2.48)

Experience adjustments on Plan Assets (3.14) (0.05) (1.32) 2.99 1.11

Cost for the period - - - - -

Service Cost 2.35 2.42 9.97 9.88 8.77

Interest Cost 1.33 1.11 4.45 3.65 3.11

Expected Return on Plan Assets (1.30) (1.12) (4.47) (3.94) (2.99)

Actuarial (Gain)/Loss (0.88) (1.76) (0.61) (3.81) 2.01

Net Cost 1.50 0.65 9.33 5.78 10.90

Investment details of Plan Assets

Plan assets are invested in insurer managed

funds.
Assumptions

Interest Rate 7.72% 7.00% 6.90% 6.87%

7.26%
Salary escalation rate 5.00% 5.00% 5.00% 5.25%
5.00%
Estimated rate of return on plan assets 7.50% 6.80% 6.90% 7.25%
7.00%

94
 41.2 The actuarial liability of compensated absences of accumulated earned and sick leaves of the employees of the Bank is as below:

(₹ in millions)
Quarter ended Quarter ended Year ended Year ended Year ended
Particulars
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020

Earned Leaves 45.72 40.04 40.96 31.15 35.04

Sick Leaves 9.79 9.61 10.17 8.82 8.88
Total Actuarial Liability 55.51 49.65 51.13 39.97 43.92
Assumptions
Interest Rate 7.72% 7.00% 7.26% 6.90% 6.87%
Salary Escalation Rate 5.00% 5.00% 5.00% 5.00% 5.25%

The estimate of salary growth rate takes into account of inflation, market dynamics, seniority, promotion and other relevant factors on long-term basis.

41.3 Unamortized Pension and Gratuity Liabilities

The Bank does not have any unamortized liability against pension and gratuity during the quarters June 30, 2022 and June 30, 2021 and years ended
March 31, 2022, March 31, 2021 and March 31, 2020.

42 Business Ratios

Quarter ended Quarter ended Year ended Year ended Year ended
Particulars June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020
i. Interest Income as a percentage to 2.08% 2.08% 8.46% 8.65% 9.24%
Working Funds1
ii. Non-interest income as a percentage 0.14% 0.17% 0.79% 0.78% 0.87%
to Working Funds1
iii. Cost of Deposits 4.81% 5.17% 5.02% 5.88% 6.10%
iv. Net Interest Margin2 3.81% 3.55% 3.74% 3.40% 3.52%
v. Operating Profit3 as a percentage to
Working Funds1 1.56% 1.36% 1.66% 1.21% 1.05%
vi. Return on Assets4 1.00% 0.76% 0.92% 0.69% 0.51%
vii. Business5 (Deposits plus advances)
per employee6 (₹ in million) 65.34 55.78 64.97 54.89 48.42
viii. Profit per employee (Operating
Profit)6 (₹ in million) 0.17 0.14 0.69 0.44 0.33

1
Working funds have been reckoned as average of total assets as reported to Reserve Bank of India in Form X under Section 27 of the Banking
Regulation Act, 1949, during the period.
2
Net Interest Margin has been computed based on the Net Interest income (Interest Income – Interest Expense) and average of total assets as reported to
Reserve Bank of India in Form X under Section 27 of the Banking Regulation Act, 1949, during the period.
3
Operating profit is the net profit for the period before provisions and contingencies and is annualized.
4
Return on Assets is calculated with reference to monthly average working funds (Working funds taken as total of assets excluding accumulated losses, if
any) and is annualized.
5
For the purpose of computation of business per employee, business is calculated by adding deposits and advances excluding inter-bank deposits.
6
Productivity ratios are based on average number of employees.

43 Bancassurance Business
(₹ in millions)
Quarter ended Quarter ended Year ended Year ended Year ended
Income from
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020

1. Life insurance 16.00 13.32 72.75 53.80 52.81

2. General Insurance 6.36 5.34 25.62 22.02 20.09

44 Marketing and Distribution

(₹ in millions)
Quarter ended Quarter ended Year ended Year ended Year ended
Fee/remuneration received
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020

Marketing and Distribution - - - - -

95
45 Details of Priority Sector Lending Certificates (PSLC)-
(₹ in millions)

Quarter ended June 30, 2022 Quarter ended June 30, 2021
Type of PSLC
PSLC bought PSLC sold PSLC bought PSLC sold

Agriculture - 4500 - 3,750

Small and Marginal Farmers 2000 - 1,250 -

Micro enterprises - - - -

General - - - -

Total 2000 4500 1,250 3,750

(₹ in millions)

Year ended March 31, 2022 Year ended March 31, 2021 Year ended March 31, 2020

Type of PSLC PSLC bought PSLC sold PSLC bought PSLC sold PSLC bought PSLC sold

Agriculture - 9,850 - 6,650 - 5,200

Small and Marginal Farmers 3,450 - 1,650 - 700 -

Micro enterprises - - - - - -

General - - 500 - - -

Total 3,450 9,850 2,150 6,650 700 5,200

46 Provisions and Contingencies

The break-up of the provisions and contingencies included in profit and loss account is given hereunder:
(₹ in millions)
Quarter ended Quarter ended Year ended Year ended Year ended
Particulars
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020
#
Provisions towards Taxes 60.51 39.69 219.20 129.53 92.00
Provisions towards Standard Assets 0.49 39.03 114.04 (10.95) 101.47
Provision towards Non-performing
42.19 25.53 173.21 188.44 75.22
Advances
Total 103.19 104.25 506.45 307.02 268.69

#
Amount of Provisions made for Income tax

(₹ in millions)

Quarter ended Quarter ended Year ended Year ended Year ended
Particulars
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020

Income Tax 68.52 54.43 249.68 127.68 112.95

Deferred Tax (8.01) (14.74) (30.48) 1.85 (20.95)

96
47 Deferred Tax Asset

Other Assets include deferred tax asset of an amount equal to ₹76.13 million (quarter ended June 30, 2021 is ₹52.38 million) and for the year ended
March 31, 2022 is equal to ₹68.12 million, for March 31, 2021 is ₹37.64 million and for March 31, 2020 is ₹39.48 million as detailed below:
(₹ in millions)
Quarter ended Quarter ended Year ended Year ended Year ended
Particulars
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020
Deferred Tax Assets 85.30 67.27 85.25 54.92 58.80
Loan Loss Provisions 69.87 53.82 71.49 44.00 46.75
Others 15.43 13.45 13.76 10.92 12.05

Deferred Tax Liabilities 9.17 14.89 17.13 17.28 19.32

Depreciation on Fixed Assets - 10.27 7.97 12.66 16.44

Special Reserve under section 36(i)(viii) 9.17 4.62 9.17 4.62 2.88

Deferred Tax Assets/ (Liabilities) (Net) 76.13 52.38 68.12 37.64 39.48

48 Status of Ind AS Implementation

As per RBI circular RBI/2015 -16/315 DBR.BP.BC. No.76/21.07.001/2015-16 dated 11th February 2016 Implementation of Indian Accounting Standards
(Ind AS), Banks are advised that scheduled commercial banks (excluding RRBs) shall follow the Indian Accounting Standards as notified under the
Companies (Indian Accounting Standards) Rules, 2015, subject to any guideline or direction issued by the RBI in this regard. Banks in India currently
prepare their financial statements as per the guidelines issued by the RBI, the Accounting Standards notified under section 133 of the Companies Act,
2013 and generally accepted accounting principles in India (Indian GAAP). In January 2016, the Ministry of Corporate Affairs issued the roadmap for
implementation of new Indian Accounting Standards (Ind AS), which were based on convergence with the International Financial Reporting Standards
(IFRS), for scheduled commercial banks, insurance companies and non-banking financial companies (NBFCs). In March 2019, RBI deferred the
implementation of Ind AS for banks till further notice as the recommended legislative amendments were under consideration of Government of India.
The Bank had undertaken preliminary diagnostic analysis of the GAAP differences between Indian GAAP vis-a-vis Ind AS and shall proceed for ensuring
the compliance as per applicable requirements and directions in this regard and the Bank is submitting Proforma Ind AS Financial Statements to the
RBI on a half yearly basis.

49 Payment of DICGC Insurance Premium

(₹ in millions)
Quarter ended Quarter ended Year ended Year ended Year ended
S.No Particulars
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020
.
1. Payment of DICGC Insurance Premium 42.51 36.90 76.16 63.79 45.28

2. Arrears in payment of DICGC premium - - - - -

50 Dues to Micro, Small and Medium Enterprises

On the basis of information and records available with the management and confirmation sought by the management from suppliers on their registration
with the specified authority under MSMED, there have been no reported cases of delay in payments to Micro, Small and Medium Enterprises or of interest
payments due to delay in such payments during the quarters ended June 30, 2022 and June 30, 2021 and years ended March 31, 2022, March 31, 2021
and March 31, 2020.

51 Corporate Social Responsibility

(₹ in millions)
Particulars Quarter ended Quarter ended Year ended Year ended Year ended
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020
Total amount to be spent for the respective
11.52 7.70 7.70 6.11 5.25
financial year

Amount spent during the period 2.90 1.93 7.70 6.15 5.25

Remaining amount to be spent for the

8.62 5.77 - - -
financial year

The Bank has formulated a trust in the name of Capital Foundation. The CSR expenses are taken care by the Capital Foundation or directly through the
Bank. The above expenditure of ₹2.90 million (₹1.93 million for the quarter ended June 30, 2021; ₹7.70 million for the year ended March 31, 2022; ₹6.15
million for the year ended March 31, 2021 and ₹5.25 million for the year ended March 31, 2020) has been contributed to the Capital Foundation Trust during
the period or has been spent directly by the Bank.

97
52 Description of Contingent Liabilities

Particulars Description

Guarantees given on behalf of As a part of its commercial banking activities, the Bank issues bank
constituents in India. guarantees on behalf of its customers.

Acceptances, endorsements and Includes Letters of credit issued on behalf of the customers that
other obligations. enhances the credit standing of the Bank’s customers.

Other items for which Bank is Includes capital commitments and amount transferred to the RBI under
contingently liable. the Depositor Education and Awareness Fund (DEAF).

53 Investor Education and Protection Fund

There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Bank.

54 Other Expenditure

Other expenditure includes amount paid for security & service charges that are exceeding 1% of the total income of the Bank.
(₹ in millions)
Particulars Quarter ended Quarter ended Year ended Year ended Year ended
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020
Other Expenditure - 18.13 65.00 92.27 89.77
(Security & Service charges)

55 Payment to Auditors

(₹ in millions)
Quarter ended Quarter ended Year ended Year ended Year ended
Particulars
June 30, 2022 June 30, 2021 March 31, 2022 March 31, 2021 March 31, 2020
Audit Fees 0.80 1.00 4.51 4.00 3.40
Other Certificate Fees - - 2.90* 0.65 -
Out of Pocket Expenses - - 0.50 0.24 1.48

*excludes ₹0.95 million paid on behalf of Selling Shareholders.

98
 OTHER MATERIAL UPDATES

1) Subsequent to the filing of the Draft Red Herring Prospectus, there have been the following updates to our Board of
Directors: (i) the tenure of Madan Gopal Sharma who was the Part-time Chairman and Independent Director on our Board,
has been completed on April 23, 2022 and he has ceased to be a Director on our Board; (ii) Navin Kumar Maini, an
Independent Director on our Board, has been appointed as the Part-time Chairman of our Bank for a period of three years
with effect from April 24, 2022, pursuant to a resolution passed by our Board on December 9, 2021; (iii) Sarvjit Singh
Samra has been reappointed as the Managing Director and Chief Executive Officer of our Bank for a period of three years
with effect from April 24, 2022, pursuant to a resolution passed by our Board on November 12, 2021 and a special
resolution passed by our Shareholders on March 31, 2022; (iv) Balbir Singh has been appointed as a Non-Executive
Director, liable to retire by rotation, nominated by SIDBI on our Board with effect from March 9, 2022, pursuant to a
resolution passed by our Board on March 9, 2022 and by our Shareholders on August 5, 2022, in place of Rahul
Priyadarshi, who was the earlier nominee director of SIDBI on our Board; and (v) Nageswara Rao Yalamanchili has been
appointed as an Independent Director on our Board for a period of five years with effect from June 29, 2022 pursuant to
a resolution passed by our Board on June 29, 2022 and by our Shareholders on August 5, 2022. The requisite details in
relation to the aforementioned changes, as well as the updated Board shall be disclosed appropriately in the Red Herring
Prospectus and the Prospectus, as and when filed with the RoC, the SEBI and the Stock Exchanges.

2) Subsequent to the filing of the Draft Red Herring Prospectus, the settlement application which was voluntarily filed by
our Bank before the SEBI on September 2, 2021 (and physically submitted on September 8, 2021), has been disposed of,
and the concerned proceedings have been settled pursuant to a settlement order passed by the SEBI on June 10, 2022. An
amount of ₹ 580,000 had been recommended to be paid by our Bank in connection with the settlement, which has been
paid by our Bank on April 22, 2022. Further, the compounding application filed with the National Company Law Tribunal,
Chandigarh bench has been disposed of pursuant to its order dated November 26, 2021, whereby a compounding fee of ₹
800,000 was levied on our Bank. The said compounding fee has been paid by our Bank on December 2, 2021. The requisite
details in relation to the aforementioned updates shall be disclosed appropriately in the Red Herring Prospectus and the
Prospectus, as and when filed with the RoC, the SEBI and the Stock Exchanges.

3) Pursuant to certain amendments suggested by the RBI pursuant to its email dated February 4, 2022, the articles of
association of our Bank were amended, and the amended articles of association of our Bank were approved pursuant to a
resolution passed by our Shareholders on March 31, 2022. The requisite details in relation to the aforementioned
amendments shall be disclosed appropriately in the Red Herring Prospectus and the Prospectus, as and when filed with
the RoC, the SEBI and the Stock Exchanges.

99
 DECLARATION

I hereby certify and declare that all relevant provisions of the Companies Act and the guidelines/regulations/rules issued by the
Government of India or the guidelines/regulations issued by SEBI, established under section 3 of the SEBI Act, as the case may
be, have been complied with and no statement, disclosure and undertaking made in this Addendum is contrary to the provisions
of the Companies Act, 2013, the SCRA, the SCRR, the SEBI Act or rules made or guidelines or regulations issued thereunder,
as the case may be. I further certify that all statements in this Addendum are true and correct.

SIGNED BY THE DIRECTOR OF OUR BANK

___________________________________
Navin Kumar Maini
Part-Time Chairman and Independent Director

Place: New Delhi

Date: September 12, 2022

100
 DECLARATION

I hereby certify and declare that all relevant provisions of the Companies Act and the guidelines/regulations/rules issued by the
Government of India or the guidelines/regulations issued by SEBI, established under section 3 of the SEBI Act, as the case may
be, have been complied with and no statement, disclosure and undertaking made in this Addendum is contrary to the provisions
of the Companies Act, 2013, the SCRA, the SCRR, the SEBI Act or rules made or guidelines or regulations issued thereunder,
as the case may be. I further certify that all statements in this Addendum are true and correct.

SIGNED BY THE DIRECTOR OF OUR BANK

___________________________________
Sarvjit Singh Samra
Managing Director and Chief Executive Officer

Place: Jalandhar
Date: September 12, 2022

101
 DECLARATION

I hereby certify and declare that all relevant provisions of the Companies Act and the guidelines/regulations/rules issued by the
Government of India or the guidelines/regulations issued by SEBI, established under section 3 of the SEBI Act, as the case may
be, have been complied with and no statement, disclosure and undertaking made in this Addendum is contrary to the provisions
of the Companies Act, 2013, the SCRA, the SCRR, the SEBI Act or rules made or guidelines or regulations issued thereunder,
as the case may be. I further certify that all statements in this Addendum are true and correct.

SIGNED BY THE DIRECTOR OF OUR BANK

___________________________________
Srinath Srinivasan
Non-Executive Director

Place: Mumbai
Date: September 12, 2022

102
 DECLARATION

I hereby certify and declare that all relevant provisions of the Companies Act and the guidelines/regulations/rules issued by the
Government of India or the guidelines/regulations issued by SEBI, established under section 3 of the SEBI Act, as the case may
be, have been complied with and no statement, disclosure and undertaking made in this Addendum is contrary to the provisions
of the Companies Act, 2013, the SCRA, the SCRR, the SEBI Act or rules made or guidelines or regulations issued thereunder,
as the case may be. I further certify that all statements in this Addendum are true and correct.

SIGNED BY THE DIRECTOR OF OUR BANK

________________________________________
Mahesh Parasuraman
Non-Executive Director

Place: Bangalore
Date: September 12, 2022

103
 DECLARATION

I hereby certify and declare that all relevant provisions of the Companies Act and the guidelines/regulations/rules issued by the
Government of India or the guidelines/regulations issued by SEBI, established under section 3 of the SEBI Act, as the case may
be, have been complied with and no statement, disclosure and undertaking made in this Addendum is contrary to the provisions
of the Companies Act, 2013, the SCRA, the SCRR, the SEBI Act or rules made or guidelines or regulations issued thereunder,
as the case may be. I further certify that all statements in this Addendum are true and correct.

SIGNED BY THE DIRECTOR OF OUR BANK

________________________________________
Balbir Singh
Non-Executive Director

Place: Chandigarh
Date: September 12, 2022

104
 DECLARATION

I hereby certify and declare that all relevant provisions of the Companies Act and the guidelines/regulations/rules issued by the
Government of India or the guidelines/regulations issued by SEBI, established under section 3 of the SEBI Act, as the case may
be, have been complied with and no statement, disclosure and undertaking made in this Addendum is contrary to the provisions
of the Companies Act, 2013, the SCRA, the SCRR, the SEBI Act or rules made or guidelines or regulations issued thereunder,
as the case may be. I further certify that all statements in this Addendum are true and correct.

SIGNED BY THE DIRECTOR OF OUR BANK

________________________________________
Dinesh Gupta
Non-Executive Director

Place: Jalandhar
Date: September 12, 2022

105
 DECLARATION

I hereby certify and declare that all relevant provisions of the Companies Act and the guidelines/regulations/rules issued by the
Government of India or the guidelines/regulations issued by SEBI, established under section 3 of the SEBI Act, as the case may
be, have been complied with and no statement, disclosure and undertaking made in this Addendum is contrary to the provisions
of the Companies Act, 2013, the SCRA, the SCRR, the SEBI Act or rules made or guidelines or regulations issued thereunder,
as the case may be. I further certify that all statements in this Addendum are true and correct.

SIGNED BY THE DIRECTOR OF OUR BANK

________________________________________
Gurpreet Singh Chug
Independent Director

Place: Jalandhar
Date: September 12, 2022

106
 DECLARATION

I hereby certify and declare that all relevant provisions of the Companies Act and the guidelines/regulations/rules issued by the
Government of India or the guidelines/regulations issued by SEBI, established under section 3 of the SEBI Act, as the case may
be, have been complied with and no statement, disclosure and undertaking made in this Addendum is contrary to the provisions
of the Companies Act, 2013, the SCRA, the SCRR, the SEBI Act or rules made or guidelines or regulations issued thereunder,
as the case may be. I further certify that all statements in this Addendum are true and correct.

SIGNED BY THE DIRECTOR OF OUR BANK

________________________________________
Harmesh Khanna
Independent Director

Place: Gurugram
Date: September 12, 2022

107
 DECLARATION

I hereby certify and declare that all relevant provisions of the Companies Act and the guidelines/regulations/rules issued by the
Government of India or the guidelines/regulations issued by SEBI, established under section 3 of the SEBI Act, as the case may
be, have been complied with and no statement, disclosure and undertaking made in this Addendum is contrary to the provisions
of the Companies Act, 2013, the SCRA, the SCRR, the SEBI Act or rules made or guidelines or regulations issued thereunder,
as the case may be. I further certify that all statements in this Addendum are true and correct.

SIGNED BY THE DIRECTOR OF OUR BANK

________________________________________
Rakesh Soni
Independent Director

Place: Ludhiana
Date: September 12, 2022

108
 DECLARATION

I hereby certify and declare that all relevant provisions of the Companies Act and the guidelines/regulations/rules issued by the
Government of India or the guidelines/regulations issued by SEBI, established under section 3 of the SEBI Act, as the case may
be, have been complied with and no statement, disclosure and undertaking made in this Addendum is contrary to the provisions
of the Companies Act, 2013, the SCRA, the SCRR, the SEBI Act or rules made or guidelines or regulations issued thereunder,
as the case may be. I further certify that all statements in this Addendum are true and correct.

SIGNED BY THE DIRECTOR OF OUR BANK

________________________________________
Gurdeep Singh
Independent Director

Place: Jalandhar
Date: September 12, 2022

109
 DECLARATION

I hereby certify and declare that all relevant provisions of the Companies Act and the guidelines/regulations/rules issued by the
Government of India or the guidelines/regulations issued by SEBI, established under section 3 of the SEBI Act, as the case may
be, have been complied with and no statement, disclosure and undertaking made in this Addendum is contrary to the provisions
of the Companies Act, 2013, the SCRA, the SCRR, the SEBI Act or rules made or guidelines or regulations issued thereunder,
as the case may be. I further certify that all statements in this Addendum are true and correct.

SIGNED BY THE DIRECTOR OF OUR BANK

________________________________________
Sham Singh Bains
Independent Director

Place: Jalandhar
Date: September 12, 2022

110
 DECLARATION

I hereby certify and declare that all relevant provisions of the Companies Act and the guidelines/regulations/rules issued by the
Government of India or the guidelines/regulations issued by SEBI, established under section 3 of the SEBI Act, as the case may
be, have been complied with and no statement, disclosure and undertaking made in this Addendum is contrary to the provisions
of the Companies Act, 2013, the SCRA, the SCRR, the SEBI Act or rules made or guidelines or regulations issued thereunder,
as the case may be. I further certify that all statements in this Addendum are true and correct.

SIGNED BY THE DIRECTOR OF OUR BANK

________________________________________
Nageswara Rao Yalamanchili
Independent Director

Place: Mumbai
Date: September 12, 2022

111
 DECLARATION

I hereby certify and declare that all relevant provisions of the Companies Act and the guidelines/regulations/rules issued by the
Government of India or the guidelines/regulations issued by SEBI, established under section 3 of the SEBI Act, as the case may
be, have been complied with and no statement, disclosure and undertaking made in this Addendum is contrary to the provisions
of the Companies Act, 2013, the SCRA, the SCRR, the SEBI Act or rules made or guidelines or regulations issued thereunder,
as the case may be. I further certify that all statements in this Addendum are true and correct.

SIGNED BY THE CHIEF FINANCIAL OFFICER OF OUR BANK

________________________________________
Munish Jain
Chief Operating Officer and Chief Financial Officer

Place: Jalandhar
Date: September 12, 2022

112
 DECLARATION BY OMAN INDIA JOINT INVESTMENT FUND II

Oman India Joint Investment Fund II hereby confirms that all statements, disclosures and undertakings made or confirmed by
it in this Addendum about or in relation to itself, as one of the Investor Selling Shareholders and its portion of the Offered
Shares, are true and correct. Oman India Joint Investment Fund II assumes no responsibility for any other statements, disclosures
and undertakings, including any statements, disclosures and undertakings, made by, or relating to the Bank or any other Selling
Shareholder or any person(s) in this Addendum.

_____________________________________________
Signed for and on behalf of Oman India Joint Investment Fund II
Name: Srinath Srinivasan
Designation: CEO – Oman India Joint Investment Fund Management Company Private Limited
Date: September 12, 2022
Place: Mumbai

113
 DECLARATION BY PI VENTURES LLP

PI Ventures LLP hereby confirms that all statements, disclosures and undertakings made or confirmed by it in this Addendum
about or in relation to itself, as one of the Investor Selling Shareholders and its portion of the Offered Shares, are true and
correct. PI Ventures LLP assumes no responsibility for any other statements, disclosures and undertakings, including any
statements, disclosures and undertakings, made by, or relating to the Bank or any other Selling Shareholder or any person(s) in
this Addendum.

______________________________________________
Signed for and on behalf of PI Ventures LLP
Name: Narayanan Venkitraman
Designation: Authorized Signatory
Date: September 12, 2022
Place: Mumbai

114
 DECLARATION BY AMICUS CAPITAL PRIVATE EQUITY I LLP

Amicus Capital Private Equity I LLP hereby confirms that all statements, disclosures and undertakings made or confirmed by
it in this Addendum about or in relation to itself, as one of the Investor Selling Shareholders and its portion of the Offered
Shares, are true and correct. Amicus Capital Private Equity I LLP assumes no responsibility for any other statements, disclosures
and undertakings, including any statements, disclosures and undertakings, made by, or relating to the Bank or any other Selling
Shareholder or any person(s) in this Addendum.

______________________________________________
Signed for and on behalf of Amicus Capital Private Equity I LLP
Name: Mahesh Parasuraman
Designation: Designated Partner
Date: September 12, 2022
Place: Bangalore

115
 DECLARATION BY AMICUS CAPITAL PARTNERS INDIA FUND I

Amicus Capital Partners India Fund I hereby confirms that all statements, disclosures and undertakings made or confirmed by
it in this Addendum about or in relation to itself, as one of the Investor Selling Shareholders and its portion of the Offered
Shares, are true and correct. Amicus Capital Partners India Fund I assumes no responsibility for any other statements,
disclosures and undertakings, including any statements, disclosures and undertakings, made by, or relating to the Bank or any
other Selling Shareholder or any person(s) in this Addendum.

______________________________________________
Signed for and on behalf of Amicus Capital Partners India Fund I
Name: Mahesh Parasuraman
Designation: Designated Partner
Date: September 12, 2022
Place: Bangalore

116
 DECLARATION BY THE OTHER SELLING SHAREHOLDERS

Each Other Selling Shareholder hereby confirms that all statements, disclosures and undertakings made or confirmed by it in
this Addendum about or in relation to itself, as an Other Selling Shareholder and its portion of the Offered Shares, are true and
correct. Each Other Selling Shareholder assumes no responsibility for any other statements, disclosures and undertakings,
including any statements, disclosures and undertakings, including any statements made or confirmed by, or relating to, the Bank
or any other Selling Shareholder or any person(s) in this Addendum.

For and on behalf of Gurdev Singh Samra (jointly with Balbir Kaur Samra), Rashpal Singh (jointly with Surinder
Kaur), Tarlochan Singh Hyare, Avtar Singh Samra (jointly with Rashpal Singh Samra), Manjoo Sardana, Gaurav Goel,
Jasvinder Kaur, Darshna Devi, Rekha Jindal, Richa Mahajan, Gurnam Singh (jointly with Bahadur Singh and Amrik
Singh), Ramesh Kaur, Parminder Singh, Joginder Singh Dhillon, Vijay Kumar Bhandari (jointly with Sneh Bhandari),
Kuldeep Krishan Sardana (jointly with Suman Sardana), Jagjit Singh Shergill, Gurdip Singh Shergill, Nilam Singh
Shergill, Anureet Pattar, and Rajinder Kumar Sehgal (jointly with Neelam Sehgal and Akhil Sehgal)

______________________________________________
Signed for and on behalf of the Other Selling Shareholders
Name: Amit Sharma
Designation: Company Secretary and Compliance Officer
Date: September 12, 2022
Place: Jalandhar

117