1. Capital

1.1 Capital Issue

During the year, 12,32,035 equity shares of '10 each fully paid (Previous Year 12,90,864 equity shares of '10 each fully paid) were allotted on various dates to the employees who exercised their stock options, and consequently, the share capital of the Bank increased by '1.23 crores (Previous Year '1.29 crores) and share premium by '84.48 crores (Previous Year '84.79 crores).

1.2 Capital Adequacy Ratio

The Bank computes Capital Adequacy Ratio as per Basel III Capital Regulations issued by RBI.

Under Basel III Capital Regulations, the Bank has to maintain a Minimum Total Capital of 11.50% including Capital Conversion Buffer at 2.50%, of the total risk weighted assets. Out of the Minimum Total Capital (excluding CCB of 2.50%), at least 5.50% of risk weighted assets, shall be from Common Equity Tier 1 capital and at least 7.00% from Tier 1 capital. The capital adequacy ratio of the Bank.

During the current year, the bank has not raised any non-equity Tier 1 capital and Tier 2 capitals. The Bank has redeemed unsecured, redeemable, subordinated Tier 1 Basel III compliant non-convertible taxable Bonds by exercising the call option on April 18, 2022 of '1,000 crores.

During the Previous Year, the Bank has raised unsecured, redeemable, subordinated Tier 2 Basel III compliant non-convertible taxable Bonds on October 29, 2021, through private placement basis at par, aggregating to total size of '2,800 crores with a tenor of 10 years which will augment Capital Funds as well as the long-term resources of the Bank. Further, the Bank has redeemed unsecured, redeemable, subordinated Tier 1 Basel III compliant non-convertible taxable Bonds by exercising the call option on March 22, 2022 of '1,000 crores.

3.2 Exchange Traded Interest Rate Derivatives

The Exchange Traded Interest Rate Derivatives undertaken during the year ended March 31,2023, and March 31, 2022, was Nil.

3.3 Risk Exposure in Derivatives

Derivatives Policy approved by the Board of Directors defines the framework for carrying out derivatives business and lays down policies and processes to measure, monitor and report risk arising from derivative transactions. The policy provides for appropriate risk limits for different derivative products and action to be initiated in case of breaches. As part of the Derivatives Policy, the Bank has a Product Suitability and Customer Appropriateness Policy, which is used to classify customers on the basis of their need for various derivative products and their competence in understanding such products and the attendant risks involved.

The Bank undertakes derivative transactions for hedging customers' exposure, hedging the Bank's own exposure, as well as for trading purposes, wherever permitted by RBI. The customers use these derivative products to hedge their forex and interest rate exposures, in accordance with extant regulatory guidelines. The Bank has a policy on assessing the collateral required for undertaking derivative transactions with clients as well as counterparty banks. The credit appraisal process determines the collateral requirements. The Bank retains the right to terminate transactions as a risk mitigation measure in certain circumstances.

The use of derivatives for hedging purposes is governed by the board approved Derivative policy. Bank uses derivative contracts for hedging fixed rate, floating rate or foreign currency assets/liabilities to protect the variability in the fair value or the cash flow of the underlying Balance Sheet item. For hedge transactions, the Bank earmarks the underlying (asset or liability) at the inception of the hedge itself. The effectiveness is assessed at the time of inception of the hedge and periodically thereafter. Derivative transactions designated as "Hedges" are accounted on an accrual basis except the swap designated with an asset/ liability that is carried at market value or lower of cost or market value. In that case, the swap is marked to market with the resulting gain or loss recorded as an adjustment to the market value of designated asset or liability. In case any transaction fails the effectiveness, the same is re-designated as a trading deal and appropriate accounting treatment is followed.

The premium or discount arising on inception of forward exchange contracts, not intended for trading purpose, is amortized over the life of the contract as interest income/expense.

Risk Management Department of the Bank is responsible for measuring, reporting and monitoring risk arising from derivatives transactions. It functions independent of Treasury Business Department and undertakes the following activities:

• Monitoring risk limits on derivatives portfolio against prescribed policies and limits on a daily basis;

• Daily review of product-wise profitability and activity reports for derivatives operations;

• Daily submission of MIS to the Top Management; and

• Review of collaterals that are generally kept as cash or cash equivalent for securing derivative transactions.

The Risk Management function applies many quantitative tools and methods such as Value at Risk, PV01, Greeks, stop-loss limits, counterparty limits, deal size limits and overnight position limits.

Refer Note 17.5 for the accounting policy on derivatives.

4.4 Particulars of resolution plan and restructuring

During the year ended March 31, 2023, the Bank has implemented Resolution Plan for two borrowers having total exposure of '175.45 crores (Previous Year - Nil) in accordance with the RBI Circular dated June 7, 2019, on Prudential Revised Framework for Resolution of Stressed Assets ("Framework").

4.5 Divergence in Asset Classification and Provisioning for NPA

RBI vide circular no. DOR.ACC.REC.No.74/21.04.018/2022-23 dated October 11,2022, has directed that banks shall make suitable disclosures in the financial statement for the year ended March 31, 2023, wherever (a) the additional provisioning requirement assessed by RBI exceeds 10 percent of the reported profit before provisions and contingencies for the reference period, or (b) the additional Gross NPA identified by RBI exceeds 10 percent of the reported incremental Gross NPA for the reference period, or both. Based on the criteria mentioned in the RBI circulars, no disclosure on divergence in asset classification and provisioning for NPA is required with respect to RBI Supervisory Programme for Assessment of Risk and Capital completed during the year pertaining to the year ended March 31, 2022.

5.2 Liquidity Coverage Ratio (LCR)

The Bank has adopted the Basel III framework on liquidity standards, prescribed by the Reserve Bank of India (RBI) and has put in place requisite systems and processes to enable periodic automated computation and reporting of the Liquidity Coverage Ratio (LCR). The LCR is aimed at measuring and promoting the short-term resilience of the liquidity risk profile of banks by ensuring maintenance of sufficient High Quality Liquid Assets (HQLA) that can be easily and immediately converted into cash to meet the liquidity needs for a 30 calendar day liquidity stress scenario.

The LCR Ratio is calculated by dividing the Bank's stock of HQLA by its total net cash flows over a 30 calendar day stress period, measured on a daily basis for the following 30 days. The prime driver of LCR is determined by its HQLA and the proportion of retail and wholesale funding sources. The HQLA comprises of two parts, i.e., Level 1 HQLA constituents which are primarily cash, excess CRR, SLR securities in excess of the minimum SLR requirement and a portion of mandatory SLR as permitted by the RBI (under MSF and FALLCR) and Level 2 HQLA constituents which are investments in highly rated non-financial corporate bonds and listed equity investments considered with the prescribed regulatory haircuts. The average HQLA for the quarter ended March 31,2023 was '89,289 crores, as against '98,823 crores for the quarter ended March 31,2022. The Cash outflows are determined by multiplying the outstanding balances of the various types/ categories of liabilities by the outflow run-off factor and the cash inflows are calculated by multiplying the outstanding balances of the various categories of contractual receivables by inflow run-offs at which they are expected to flow in. Expected derivative cash outflows and inflows are calculated for outstanding contracts in accordance with laid down valuation methodologies and regulatory guidelines. All significant outflows and inflows determined in accordance with the RBI guidelines and are included in the LCR computation as per the prescribed template. Other contractual funding and borrowings which are expected to run down in a 30 day time frame are included in the cash outflows. There are no intragroup exposures for the Bank.

The Bank has maintained LCR well above the minimum regulatory requirements during the FY 2022-23. The average LCR maintained by the Bank for the quarter ended March 31, 2023 was at 122.96% against 126.33% for the quarter ended March 31, 2022.

The Asset Liability Committee (ALCO) of the Bank is a decision-making unit responsible for implementing the liquidity and interest rate risk management strategies of the Bank in line with its risk management objectives and ensures adherence to the risk tolerance/ limits set by the Board. Liquidity Risk Management of the Bank is centralised and is undertaken by the Asset Liability Management Function in the Global Markets Group in accordance with the Board approved policies.

The Bank's funding sources are diversified across various sources and tenors. The Bank monitors the concentration of funding from various counterparties and segments. The Bank adheres to the regulatory and internal limits on inter-bank liabilities and call money borrowings. Apart from LCR, the Risk Management Department measures and monitors the liquidity profile of the Bank with reference to the Board approved policy and regulatory limits and undertakes liquidity stress testing periodically.

6.5 Advances against book debts

Advances secured by tangible asset includes advances against book debts amounting to '47,206.00 crores (Previous Year '41,110.36 crores).

The above information is based on the methodology adopted by the management and relied upon by the auditors.

6.6 Details of factoring exposure

The factoring exposure of the Bank as at March 31, 2023, is '4,110.32 crores (Previous Year '2,603.48 crores).

6.7 Details of Intra-Group Exposure

Intra-Group Exposure as on March 31,2023- Nil (Previous Year Nil)

6.8 Unhedged Foreign Currency Exposure (UFCE) of Clients

Foreign exchange risk is the risk of loss arising out of adverse movements in foreign exchange rates affecting both on-balance sheet and off-balance sheet exposures. The foreign exchange positions that are not effectively hedged either by way of natural hedge or through forward contracts/ derivatives expose a client to the risk of loss due to volatility in the foreign exchange rates. The Bank assesses the risk arising out of such UFCE of the clients at the time of credit appraisal and monitors the same at regular intervals. The provision for standard assets as of March 31,2023, included an amount of '62 crores (Previous Year '58.00 crores) towards UFCE. Further, capital held under Basel III Capital Regulations, as of March 31,2023, includes an amount of '138.36 crores (Previous Year '178.17 crores) on account of UFCE, computed at the applicable risk weights.

6.9 Single Borrower limit and Group Borrower Limit

During the year ended March 31, 2023, and year ended March 31, 2022, the Bank's credit exposures to single borrowers and group borrowers were within the prudential limits prescribed by RBI.

12. Penalties imposed by RBI

During the FY 2022-23, Reserve Bank of India vide their letter dated June 29, 2022 imposed a monetary penalty of ' One crore on the Bank under Sections 35, 35A, 46 and 47A of the Banking Regulation Act, 1949 in relation to transactions in accounts opened through OTP based e-KYC in non-face-to-face mode. In addition, Reserve Bank of India imposed a penalty of '10,000 on November 14, 2022 as one of the Bank's ATM had a "cash out" situation for more than 10 hours during August 2022. Also, there were two instances of penalty of '10,000 each and one instance of penalty of '20,000 levied by Reserve Bank of India on September 19, 2022, December 27, 2022 and on March 20, 2023 respectively, for non-adherence to the regulatory guidelines pertaining to exchange of mutilated/soiled notes and coins by branches.

During the year ended March 31,2022, a penalty of '1 crore was imposed by the Reserve Bank of India for non-adherence with certain provisions of directions issued by RBI on 'Lending to Non-Banking Financial Companies (NBFCs)', 'Bank Finance to Non-Banking Financial Companies (NBFCs)', 'Loans and Advances - Statutory and Other Restrictions'. Also, Reserve Bank of India imposed penalty of '50,000 vide their letter 418/08.05.09/2021-22 dated October 04, 2021 for non-reporting of Currency Chest transactions on September 27, 2021.

13. Disclosure on Remuneration

Compensation and Nomination & Remuneration Committee

Effective October 1, 2022, the Compensation Committee was merged with the Nomination and Remuneration Committee (NRC) and was renamed Compensation and Nomination & Remuneration Committee (C & NRC). The C & NRC presently comprises four members, all of these members are Independent Directors including the Chairperson of the Committee. On aspects relating to remuneration, the mandate of the C & NRC is to establish, implement and maintain remuneration policies, procedures and practices that help to achieve effective alignment between remuneration and risks. The Compensation and Nomination & Remuneration Committee is mandated to oversee framing, review and implementation and of the Compensation Policy of the Bank as per the RBI guidelines on Compensation of Whole Time Directors/ Chief Executive Officers/ Risk Takers and Control function staff. The C & NRC is also required to ensure that the cost to income ratio of the Bank supports the remuneration expense of the Bank consistent with the objective of maintaining sound capital adequacy ratio. The Compensation and Nomination & Remuneration Committee also reviews compensation policies of the Bank with a view to attract, retain and motivate talent. The Compensation and Nomination & Remuneration Committee also looks after the administration and superintendence of grant of Options under the Employee Stock Option Schemes.

Compensation Policy

From April 1, 2020 onwards, the Bank has implemented the RBI Guidelines on Compensation of Whole Time Directors /Chief Executive Officers/Material Risk Takers and Control Function Staff, issued vide circular dated November 4, 2019.

The Bank has formulated a Compensation Policy in alignment with the RBI guidelines, covering all components of compensation including Fixed pay, Perquisites, Performance bonus, Guaranteed bonus (joining/ sign-on bonus), Share-linked instruments (Employee Stock Option Plan), Retirement benefits such as Provident Fund and Gratuity.

The key objectives of the policy are:

(i) Benchmark employee compensation for various job positions and skills with that of the market.

(ii) Maintain an optimal balance between Fixed and Variable pay

(iii) Pay for 'Position, Performance and Person'.

(iv) Be risk conscious and dissuade excessive risk taking (Focus on revenues and profits is balanced by emphasis on risk, operational health, compliance and governance).

(v) Build employee ownership and long term association through Long term incentive plans (ESOPs, Deferred Bonus).

(vi) Be compliant with all regulatory and statutory guidelines.

Some of the important features of the Compensation Policy are as follows:

(i) Basis the RBI description of Material Risk Takers, the Bank defines Material Risk Takers (MRTs) as critical personnel belonging to the business line functions of Corporate & Commercial Banking, Global Markets, Gems and Jewellery, Consumer, Consumer Finance Division, etc. whose functioning and decisioning impacts the Bank materially on tangible performance aspects of Revenues, Costs, and Profits. The Material Risk Takers are identified in accordance with the qualitative and quantitative criteria specified by the RBI guidelines, such as nature of their role necessitating making risk related decisions, size of business portfolio, role criticality, being amongst 0.3% of staff with highest remuneration in the Bank. The Risk controllers are defined as personnel critical to the functioning of the business support functions of Finance & Accounts, Risk, Credit, Operations, Human Resources, Inspection and Audit, Information Technology, Digital, Compliance, Investor Relations, Secretarial, Legal, Corporate Services, etc. These functions support the business line functions through back- office business processes and their functioning does not have a revenue impact through business generation.

As a governance measure, the Bank applies similar Compensation Principles applicable to the WTDs/ CEO/ MRTs to the identified Risk Controllers of the Bank.

(ii) In respect of WTDs/ CEO/ Material Risk Takers/ Risk Controllers of the Bank, the Compensation policy provides for a reasonable annual increase in fixed pay in line with the market benchmarks. Their individual increments are linked to their annual performance rating. The quantum of annual increment and increment percentages at various performance rating levels are decided on the basis of the financial performance of the Bank. Further, on a case to case basis, the Bank may provide a higher increment percentage based on the individual's performance, role and criticality.

(iii) The quantum of overall variable pay to be disbursed in a year for all eligible employees including the Material Risk Takers and Risk Controllers may vary from year to year on the basis of the financial performance of the Bank in the financial year. Deterioration in the financial performance of the Bank in a given Financial Year would lead to a contraction in the total variable compensation, which can even be reduced to zero.

(iv) Employee compensation is linked to performance. Increments and Variable pay are linked to the annual performance rating. Annual Performance Rating for an employee is arrived on the basis of tangible performance against pre-set Key Results Areas (KRAs)/ Goals at the beginning of the financial year.

(v) The individual Variable pay is linked to the annual performance rating, and based on variable pay grids that outline variable pay

as a percentage of Fixed Pay i.e., Cost to Company at various rating levels for a grade band. Exceptional variable pay may be paid to select high performers on a case to case basis within the limits stipulated in the RBI guidelines.

(vi) As per the new RBI Compensation policy effective April 01, 2020, the overall compensation of WTDs/CEOs/Material Risk Takers/ Risk Controllers comprises Fixed Pay and Variable Pay. The Variable Pay for FY22 paid to the Material Risk Taker and Risk Controllers was a mix of cash and share linked instruments. The Bank followed the Variable pay composition and Deferral guidelines as per the RBI policy.

(vii) The Bank has made applicable the malus/ claw-back arrangements with the concerned employees in case of deferred variable pay. The criteria would be negative financial performance of the Bank and/or relevant line of business in any year, assessed divergence in the bank's provisioning of Non-Performing Assets (NPAs), material failure of risk management controls, breach of internal rules or regulations, integrity/ staff accountability issues, etc As applicable, malus arrangement would adjust deferred remuneration before vesting and claw-back arrangement would adjust deferred remuneration after vesting.

(viii) The Compensation Policy does not provide for guaranteed bonus or sign on bonus in cash. However, in case of select critical hires, joining/ sign on bonus can be granted in form of pre-hiring ESOPs (a one-time grant made at the time of joining).

(ix) The Compensation Policy does not provide for severance pay other than the accrued benefits of Gratuity, Provident Fund, Leave encashment wherever applicable, for any employee of the Bank. Retirement benefits in the form of Provident Fund and Gratuity are as per the Bank's HR policies which are in line with the statutory norms.

(x) All Perquisites for WTDs/ CEO/ Material Risk Takers/ Risk Controllers are laid down in the HR Policies of the Bank.

(xi) For WTDs /CEO/ Material Risk Takers/ Risk Controllers, share linked instruments such as ESOPs form a part of the Variable pay and are a part of the total compensation. For other employees, ESOPs do not form a part of the Variable Pay. ESOPs are very selectively granted to attract and retain talent. ESOPs are not granted with a defined periodicity. ESOP grant criteria include grade of the employee, criticality of the position in terms of business continuity and growth, market value of the position/ perceived future value creation, performance and behavioural track record of the employee.

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

The Reserve Bank of India (RBI) issued a circular in February 2016, requiring Scheduled Commercial Banks to implement Indian Accounting Standards (Ind AS) from April 1, 2018. Vide a press release dated 05 April 2018 the implementation was deferred by one year. The legislative amendments recommended by the Reserve Bank towards implementation of Ind AS are still under consideration of the Government of India. Accordingly, RBI had, through a notification dated March 22, 2019, deferred the Ind AS implementation until further notice.

Pursuant to the RBI Circular dated February 11, 2016, the Bank had formed a Steering Committee, comprising members from cross-functional areas, for the purpose of reviewing and monitoring the progress of implementation. The Bank had set up a Working Group under the guidance of the Steering Committee and has conducted Gap Assessment and identified the differences between the current accounting framework and Ind AS, including the identification of the accounting policy options provided under Ind AS 101, First Time Adoption.

The Audit Committee of the Board of Directors has an oversight on the progress of the Ind AS implementation. In accordance with RBI directions, the Bank has been submitting half yearly standalone pro forma Ind- AS financial statements along with other computations to the RBI, from time to time.

15.3 Contingent Liabilities

The Bank's pending litigations include claims against the Bank by clients and counterparties and proceedings pending with tax authorities. The Bank has reviewed its pending litigations and proceedings and has adequately made, provisions wherever required and disclosed as contingent liabilities wherever applicable. Claims against the Bank not acknowledged as debts

comprise of tax demands of '199.05 crores (Previous Year ' 334.05 crores) in respect of which the Bank is in appeal, and legal cases sub judice of '439.19 crores (Previous Year ' 399.34 crores). The Bank carries a provision of '11.92 crores (Previous Year ' 7.41 crores) against legal cases sub judice. The amount of contingent liabilities is based on management's estimate, and it is not probable that any liability is expected to arise out of the same.

15.4 The Bank has a process to assess periodically all long-term contracts (including derivative contracts), for material foreseeable losses. As at March 31,2023, as well as March 31,2022, the Bank has reviewed and made adequate provision as required under any law or an accounting standard for material foreseeable losses on such long term contracts (including derivative contracts).

15.5 During the year as well as the Previous Year ended March 31, 2022, the Bank has transferred requisite amounts to the Investor Education and Protection Fund, without any delay.

15.6 Corporate Social Responsibility (CSR)

In accordance with the provisions of the Companies Act, 2013, during the year, the Bank was required to spend on CSR activities an amount of '107.52 crores (Previous Year '107.41 crores).

15.9. 1 On September 25, 2020, the shareholders of the Bank approved the IndusInd Bank Employee Stock Option Scheme 2020 (ESOS 2020), which comprehensively replaced the erstwhile Employee Stock Option Scheme 2007 (ESOS 2007) that was approved by the shareholders earlier on September 18, 2007. ESOS 2020 enables the Board and the Compensation Committee to grant such number of stock options of the Bank not exceeding 7% of the aggregate number of paid up equity shares of the Bank, in line with the guidelines issued by the SEBI. The options vest at one time or at various points of time as stipulated in the Award Confirmation issued by the Compensation Committee, and there shall be a minimum period of one year between the grant of option and vesting of the option. The unvested options shall expire by such period as stipulated in the Award Confirmation or five years from the grant of options whichever is earlier, or such further or other period as the Compensation Committee may determine. The exercise price for each grant is decided by the Compensation Committee, which is normally based on the latest available closing price and shall not be lower than the face value of the shares. Upon vesting, the options have to be exercised within a maximum period of five years or such period as may be determined by the Compensation Committee from time to time. The stock options are equity settled where the employees will receive one equity share per stock option.

Pursuant to a Composite Scheme of Arrangement with the erstwhile Bharat Financial Inclusion Limited, the shareholders of the Bank approved the IBL Special Incentive ESOS for BFIL Merger 2018 (ESOS 2018) on December 11,2018. ESOS 2018 was approved with a pool of 57,50,000 options which are equity settled. 50% of the options vest over a period of three years from the grant date and the remaining options vest over a period of three years from the first anniversary of the grant date. Upon vesting, the options have to be exercised within a maximum period of five years.

ESOS 2020 and ESOS 2018 are, hereinafter, collectively referred to as ESOS.

As at March 31, 2023, the Compensation Committee of the Bank has granted a total of 5,33,77,879 options that includes 48,090,073 options granted under ESOS 2020 and 52,87,806 options granted under ESOS 2018, as set out below:

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 share-linked instruments granted to such personnel on the date of grant should be recognized as an expense for all the instruments granted after the accounting period ending March 31, 2021. Accordingly, the Bank has changed its accounting policy from the intrinsic value method to the fair value method for all share-linked instruments granted after March 31,2021. The fair value of the stock-based compensation is estimated on the date of grant using Black-Scholes option pricing model and is recognized as compensation expense over the vesting period. The compensation so recognized in respect of which exercise of options is outstanding, is shown as Employee Stock Options Outstanding on the face of the Balance Sheet.

The fair market price is the latest closing price prior to the date of the meeting of the Compensation Committee in which stock options are granted, available on the stock exchange on which the shares of the Bank are listed. Since shares are listed on more than one stock exchange, the exchange where the Bank's shares have been traded highest on the said date is considered for this purpose.

Expected volatility is a measure of the amount by which the equity share price is expected to fluctuate during a period. The measure of volatility used in Black - Scholes option pricing model is the annualized standard deviation of the continuously compounded rates of return on the share over a period of time. Expected volatility has been computed by considering the historical data on daily volatility in the closing equity share price on the National Stock Exchange of India Limited (NSE), over a prior period equivalent to the expected life of the options, till the date of the grant.

The Bank has changed valuation of stock-based compensation to fair value using Black-Scholes model from intrinsic value starting April 1,2021. ESOPs granted from April 1, 2021 are valued at fair value of the stock-based compensation is estimated on the date of grant using Black-Scholes model and is recognized as compensation expense over the vesting period. ESOPs been granted before April 1, 2021 are still valued at intrinsic value and if these options were valued at fair value then as a result, 'Employees cost' for the year ended March 31, 2023 would have been higher by '8.82 crores with a consequent reduction in profit after tax.

15.12 Proposed Dividend

The Board of Directors, in their meeting held on April 24, 2023, have proposed a final dividend of ' 14 per equity share amounting to '1,086.25 crores. The proposal is subject to the approval of shareholders at the ensuing 29th Annual General Meeting and accordingly, this proposed dividend amounting to '1,086.25 crores are not recognized as a liability on March 31, 2023 and the same has not been considered as an appropriation from the Profit and Loss Account for the year ended March 31, 2023.

Dividend for the year ended March 31, 2022, paid during the year pursuant to the approval of the shareholders at the 28th Annual General Meeting, at the rate of '8.50 per equity share amounting to '658.88 crores including corporate dividend tax, has been considered as an appropriation from the Profit and Loss Account during the year.

15.13 Letters of Comfort

The Bank has not issued any letters of comfort during the year ended March 31, 2023 (Previous Year Nil).

15.14 The Micro, Small and Medium Enterprises Development Act, 2006 that came into force from October 2, 2006, provides for certain disclosures in respect of Micro, Small and Medium enterprises. There have been no reported cases of delays in payments to micro and small enterprises or interest payments due to delays in such payments.

15.15 During the financial year ended March 31, 2023, other than the transactions undertaken in the normal course of banking business and in accordance with extant regulatory guidelines and Bank's internal policies, as applicable:

1. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Bank to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Bank ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

2. No funds have been received by the Bank from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Bank shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note: Fixed Assets, tax paid in advance and tax deducted at source (net of provisions), stationery and stamps, non-banking assets acquired in satisfaction of claims, and others which cannot be allocated to any segments, have been classified as unallocated assets; Depreciation on Fixed Assets has been classified as unallocated expenses. The unallocated liabilities include share capital, employee stock option outstanding, reserves and surplus, dividend and others.

The above information is extracted from the Management Information System of the Bank and relied on by the auditors.

* RBI's Master Direction on Financial Statements - Presentation and Disclosures, requires to sub-divide 'Retail banking' into (a) Digital Banking and (b) Other Retail Banking segment. Accordingly, Retail banking Revenue and Results includes income from digital banking amounting to ?511.84 crore and ?176.53 crore respectively for the quarter ended March 2023.

Geographic Segments:

The business operations of the Bank are largely concentrated in India. Activities outside India are restricted to resource mobilization in the international markets and lending to a few overseas entities through the IFSC Banking Unit at the GIFT City, Gujarat. Since the Bank does not have material earnings emanating from foreign operations, the Bank is considered to operate only in domestic segment.

17. Previous Year's figures have been regrouped/ reclassified wherever necessary.