1.1 Capital

1.1.1 Capital Ratio (Capital adequacy under Basel III)

1.1.2 Share Capital

1. The Bank, has allotted 2,61,31,493 equity shares of face value of RS.10.00 each to its eligible employees under “Oriental Bank of Commerce - Employee Share Purchase Scheme” [OBC-ESPS] at an issue price of R 71.76 per share on 16^th February, 2019. The Issue price was fixed by the Remuneration Committee of the Board (designated as Compensation Committee for ESPS) at a discount of 25% on the floor price of R 95.67 per share. The Bank has received Rs. 187.52 crores under the ESPS scheme.

Pursuant to SEBI (Share Based Employee Benefits) Regulations, 2014 and as per the Guidance Note issued by the Institute of Chartered Accountants of India, the element of the discount allowed per share amounting to RS.23.91 aggregating to RS.62.48 crore has been debited to “Payment to and Provision for employee.

2. The Bank has received capital infusion from the Government of India in two tranches viz. RS.5500 crore on 31^st December 2018 and RS.1186 crore on 31^st January 2019. Accordingly, upon receipt of all requisite approvals, the following shares were allotted to the Government of India on Preferential basis:

(i) 57,23,20,499 equity shares at an Issue price of RS.96.10 (including premium of RS.86.10) per share aggregating to RS.5500 crore

(ii) 13,89,89,804 equity shares at an Issue price of RS.85.33 (including premium of RS.75.33) per share aggregating to RS.1186 crore

Subsequent to the aforesaid allotments, the shareholding of Government of India has increased froRs.77.23% as at 31^st March 2018 to 87.58% as at 31^st March 2019.

[In the previous year, the Bank had allotted 28,65,97,110 equity shares to Government of India on preferential basis at an Issue price of RS.124.60 (including premium of RS.114.60) per share aggregating to RS.3571 crore]

*During the year, the Bank redeemed 8.75% Upper Tier II Bonds aggregating to RS.500.00 Crore on exercise of Call Option with the prior approval of RBI.

1.2 Investments

1.2.1 The detail of investments and the Movement of Provisions held towards Depreciation on Investments of the bank are given below:

Note: -

1) * Others include Investment in Mutual Funds, Venture Funds, Security Receipts, State Govt. Special Bonds and Recapitalisation Bonds.

2) ** Out of total investment of RS.13942.84 Crore in Unrated securities, RS.13245.35 Crore is in exempted investment consisting of equity shares R 1721.91 Crore, venture fund RS.164.24 Crore, JV-INS RS.218.50 Crore, NCDs RS.545.62 Crore, Preference Shares RS.330.80 Crore and Special Government Bonds R 10264.28 Crore.

Hence, unrated un-exempted investment is RS.697.49 Crore (RS.18.82 Crore Preference Share, RS.672.56 Crore in Bonds & Debenture and RS.6.11 Crore in Security Receipts)

3) *** Out of total investment in unlisted securities RS.15797.96 Crore, RS.15166.58 Crore is in exempted investments consisting of CD RS.1777.95 Crore, CP RS.617.15 Crore, NCDs RS.549.25 Crore, PSU Bonds RS.427.48 Crore, JV RS.218.50 Crore, VCF RS.164.24 Crore, Mutual Fund RS.35.00 Crore, SR RS.374.06 Crore, Special Bond RS.10257.00 Crore and Shares RS.745.95 Crore (RS.415.15 Crore in Equity shares and RS.330.80 Crore in Pref. Shares)

Hence, investment in unlisted securities is RS.631.38 Crore (RS.8.82 Crore Preference Share & RS.622.56 Crore in Bonds & Debenture)

1.2.2 Sale and Transfers to/from HTM category:

The value of sales and transfers of securities to /from HTM category during period froRs.1^st April 2018 to 31^st March 2019 has exceeded 5 % of book value of investments held in HTM category at the beginning of the year.

Disclosure in terms of extant RBI guidelines to the extent the provision equivalent to excess of book value over market value is not made is as under:

The 5 per cent threshold referred to above excludes the following:

a) One time transfer of securities to / from HTM category with the approval of Board of Directors permitted to be undertaken by banks at the beginning of the accounting year.

b) Sales to the Reserve Bank of India under pre announced OMO auctions.

c) Repurchase of Government Securities by Government of India from banks

d) Sale of securities or transfer to AFS / HFT consequent to the reduction of ceiling on SLR securities under HTM, in addition to the shifting permitted at the beginning of the accounting year.

1.3.1 Disclosure on Risk Exposure in Derivatives

i) Qualitative Disclosure:

(a) Operations in the Treasury Department are segregated into three functional areas, i.e. Front Office, Mid Office and Back Office equipped with necessary infrastructure and trained Officers, whose responsibilities are well defined.

(b) The Treasury Policy of the Bank lays down the types of financial derivative instruments, scope of usage, approval process. Derivative transactions contain interest rate risk, counterparty risk, market risk, currency risk, settlement risk, open position risk and operational risk. Treasury Policy specifies the internal control limits like open position limits, deal size limits, stop-loss limits, deal initiating authority for trading/hedging in approved instruments to contain the risk and maximize return on the derivative transactions.

(c) The mid office monitors the transactions in the trading books and also measures the financial risks for the transactions in the trading book on a daily basis by way of calculating Mark to market (MTM) of positions. The Mid Office is monitored and controlled by Risk Management Department.

(d) The Bank also has a policy for hedging its balance sheet exposures. The treasury policy of the Bank spells out the approval process for hedging the exposures.

(e) The hedging/trading transactions are recorded separately. The hedge transactions are accounted for on accrual basis. All trading contracts are marked to market and resultant gross loss is accounted for ignoring the gain on a prudence basis.

(f) The Bank is Trading Member of National Stock Exchange (NSE). The Bank has set up the necessary infrastructure for Front, Mid and Back Office operations, daily mark to market (MTM) and margin obligations, wherever required, are settled with the exchanges as per guidelines issued by the regulators.

Treasury Policy has been drawn up in accordance with RBI guidelines.

Bank’s net funded exposure for risk category-wise country exposures for each country is less than 1% of bank’s total assets as on 31.03.2019 and as such no provision is required in terms of RBI guidelines.

(ii) The Provisioning Coverage Ratio (PCR) for the Bank as on 31.03.2019 is 75.84% (previous year 64.07%), which is calculated taking into account the total technical write offs.

1.3.2 Divergence in assets Classification and provisioning for NPAs.

As part of Risk Based Supervision (RBS) exercise for the year ended 31st March, 2018, the Reserve Bank of India had pointed out divergence in respect of Bank’s assets classification and provisioning in certain accounts. However, as the divergence pointed out was below the threshold limits specified by RBI, the same is not required to be disclosed. The Bank has duly accounted for the impact of the above in its financial statements for the year ended 31^st March, 2019.

* Gross NPAs as per iteRs.2 of Annex to DBOD Circular DBOD. BP.BC.No.46/21.04.048/2009-10 dated September 24, 2009 which specified a uniform method to compute Gross Advances, Net Advances, Gross NPAs and Net NPAs.

** Technical or prudential write off is the amount of non-performing loans which are outstanding in the books of the respective branches, but have been written off (fully or partially) at Head office level. (DBOD No. BP.BC.6421.04.048/2009-10 dated 1^st December 2009 on Provisioning coverage for advances)

1.3.3 Details of non-performing financial assets purchased / sold

Banks which purchase non-performing financial assets from other banks shall be required to make the following disclosures in the Notes to Accounts to their Balance sheet:

a) Details of non-performing financial assets purchased:

The cumulative provision towards Standard Assets held by the Bank as at the year-end amounting to RS.642.46 Crore (previous year RS.548.96 Crore) is included under the head Other Liabilities and Provisions in Schedule 5 to the Balance Sheet.

1.4.1 Strategic Debt Restructuring (SDR) Scheme

During the year, Bank has invoked Strategic Debt Restructuring (SDR) as per RBI guidelines in the following companies and acquired shares pursuant to invocation of SDR. The details of shares acquired are as under:-

Bank’s net funded exposure for risk category-wise country exposures for each country is less than 1% of Bank’s total assets and as such no provision is required in terms of RBI guidelines.

1.4.2 (i) Unhedged Foreign Currency Exposure

Bank has laid down Board approved policy for managing and monitoring Un-hedged Foreign Currency Exposure of corporate including SMEs. Based on the available data and financial statements and the declaration from borrowers, the Bank has estimated the liability of Rs. 25.18 Crore (Previous Year Rs. 22.64 Crore) as on 31st March, 2019 on unhedged Foreign Currency Exposure to their constituents in terms of RBI circular DBOD. NO. BP.BC.85/21.06.200/2013-14 dated 15^th January 2014 and subsequent clarification vide circular no. DBOD.No. BP.BC.116/21.06.200/2013-14 dated 3^rd June 2014. The outstanding provision on Unhedged Exposure as on 31.03.2019 is Rs. 25.18 Crore (Previous Year Rs. 22.64 Crore).

(ii) Spreading of MTM Losses

Reserve Bank of India circularDBR No. BP.BC. 113/21.04.048/2017-18 dated June 15, 2018 grants banks an option to spread provisioning for mark to market (MTM) losses on investments held in AFS and HFT categories for the quarter ended June 30, 2018 equally over up to four quarters, commencing with the quarter ending June 30, 2018. Accordingly, RS.577.36 Crore have been charged to the profit and loss account during the financial year ended March 31, 2019 towards such MTM losses and the balance unamortized amount is NIL as on March 31, 2019.

(As compiled and certified by the management and relied upon by the Auditors).

1.5 Miscellaneous Disclosures

1.5.1 Penalties imposed by RBI under Banking Regulation Act, 1949:

Reserve Bank of India has imposed penalty of Rs. 3.50 crore (Rs. Three crore fifty lakh only) on the Bank during the year ending 31^st March 2019, under the provision of Section 47(A) (1) (c) read with section 46 (4) (i) of the Banking Regulation Act 1949.

1.5.2 In compliance of RBI letter no.DBR No.BP.13018/21.04.048/2015-16 dated 12.04.2016 and further in compliance with RBI letter No.3992/21.04.048/2016-17 and further to RBI letter No.DBR.BP.7201/21.04.132/2017-18 dated 08.02.2018, Bank has retained provision of Rs.29.29 Crore being 5% of the existing outstanding of Rs.585.88 Crore as on 31st March, 2019 under food credit availed by State Government of Punjab.

1.5.3 In respect of one premises costing RS.0.25 Crore (Previous year RS.0.25 Crore), registration/sale/title deeds in favour of the Bank are pending.

1.6 Disclosure in terms of Accounting Standards issued by the Institute of Chartered Accountants of India.

1.6.1 Accounting Standard AS-5 - Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies:

There are no material prior period items. There is no change in the Accounting Policy as compared to the previous year.

1.6.2 Accounting Standard AS- 10 - Property Plant and Equipment/Fixed Assets

Subsequent to the revised Accounting Standards- 10 applicable from April 1, 2018, depreciation of RS.17.73 Crore for the year on the revalued portion of the fixed assets has been transferred from the Revaluation Reserve to Revenue and Other reserve.

1.6.3 Accounting Standard AS-12 Accounting for Government Grants

During the year 2018-19 the Bank has received a sum of Rs.1.64 crore as Grant Assistance under the Scheme “Support for setting up of Aadhaar Enrolment and update Centers (AECs)” and Rs.0.43 crore as “Incentive for installation of BHIM Aadhaar Pay devices”. The Bank has treated the grant as deferred income which is recognised in the profit and loss statement on a systematic and rational basis over the useful life of the asset. Accordingly, the Bank has booked a sum of Rs.0.69 crore as income in the Profit & Loss account during the year 2018-19.

1.6.4 Accounting Standard AS-15 - Employee Benefits:

The Bank is following AS-15 (revised 2005) ‘Employee Benefits’. The defined employee contribution/ benefit schemes are as under:-

a. Provident Fund

The Bank pays fixed contribution to Provident Fund at predetermined rates to a separate Trust, which invests the funds in permitted securities. The contribution to the fund for the period is recognized as expense and is charged to the profit & loss account. The obligation of the Bank is limited to such fixed contribution.

b. Gratuity

The officers who had joined the service or became officer before 1st January, 1983 are entitled for Gratuity under Rules subject to MaximuRs.20 months.

The Officers who had joined the service on or after 1st January, 1983 are entitled for Gratuity under The Payment of Gratuity Act or Officer’s Service Regulation, whichever is higher.

The workmen are entitled for gratuity under The Payment of Gratuity Act or Bipartitle Settlement, whichever is higher.

The Officers / Workmen who had rendered continuous services of five years or more are eligible for gratuity on superannuation, resignation and termination. Further, in case of death, the minimum service required is one year. The gratuity fund is managed by separate trust and is funded by the Bank. The liability of the same is recognized on the basis of actuarial valuation.

c. Pension

The Bank has a defined benefit pension scheme. The scheme applies to existing employees of the Bank as on 29.09.1995 who have opted for the pension scheme and to all the employees joining, thereafter but before 01.04.2010. The scheme is managed by a separate Trust and the liability for the same is recognized on the basis of actuarial valuation.

d. Sick leave

In compliance to RBI observations, the Bank has provided for RS.4.49 Crore towards sick leaves during the year ended 31st March, 2019 (RS.11.87 Crore during the previous year).

e. Other Defined Retirement Benefits (ODRB)

Other Defined Retirement Benefits (ODRB) include leave encashment, settlement at home town for employees and dependents and post-retirement medical benefit for MD, CEO and ED. These are unfunded and are recognized on the basis of actuarial valuation.

The summarized position of various defined benefits recognized in the profit and loss account and balance sheet along with the funded status are as under:

Note:

- The estimates of future salary increases considered in actuarial valuation, takes into account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

- The provision for LFC is at RS.46.96 Crore (previous year RS.45.19 Crore) and Staff settlement expenses at RS.4.47 Crore (previous year RS.4.27 Crore) which are as per Actuarial Certificate.

1.6.5 Accounting Standard AS-17 - Segment Reporting:

a) The Business Segments, which is the Primary Segment include:

- Treasury Operations

- Corporate / Wholesale Banking

- Retail Banking

- Other Banking Business Operations

b) The Geographical segments are recognized as the Secondary Segment. As the Bank is not carrying on any foreign operations, the only reportable geographical segment is of Domestic operations.

- Treasury Operations: Treasury operations consist of dealing in securities and Money Market Operations

- Corporate / Wholesale Banking: Includes all advances to trusts, partnership firms, companies and statutory bodies which are not included under “Retail Banking”

- Retail Banking: The exposure up to RS.5.00 Crore to individual, HUF, Partnership firm,Trust, Private Ltd. Companies, Public ltd. Companies , Co-operative societies etc. or to a small business is covered under retail Banking. Small business is one where average of last three years’ annual turnover (Actual for existing & projected for new entities) is less than RS.50 Crore.

- Other Banking business operations: Includes all other Banking operations not covered under Treasury, Wholesale Banking and Retail Banking Segments. Other Banking business is the residual category.

c) The segment revenue is shown after interest on average intersegment funds used in Treasury Operations. The interest on inter segment funds has been charged at the rate based on the movements in Cost of Funds i.e. percentage of total interest expended to average working funds for the year.

Allocation of Expenses, Assets and Liabilities: Expenses incurred at Head office/ Controlling Office directly attributable either to Corporate / Wholesale and Retail Banking Operations or to Treasury Operations segment, are allocated accordingly. Expenses not directly attributable are allocated on the basis of the ratio of outstanding advances in each segment except the provision for sacrifice interest (bifurcated on the basis of outstanding restructured advances) and provision for FITL & Standard restructured standard advances (bifurcated on the basis of outstanding standard restructured advances).The Bank has certain common assets and liabilities, which cannot be attributed to any segment, and the same are treated as unallocated.

1.6.6 Accounting Standard AS-18 - Related Party:

Details pertaining to Related Party Transactions in respect of key managerial personnel of the Bank are as follows:-

Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited - Joint Venture. The transactions with joint venture have not been disclosed in view of para 9 of the AS -18 Related Party Disclosures issued by ICAI, which exempts state controlled enterprises from making any disclosure pertaining to transactions with other related state controlled enterprises.

Further, in terms of Paragraph 5 of AS 18, transactions in the nature of Banker-Customer relationship have not been disclosed including those with Key Management Personnel.

1.6.7 Accounting Standard AS-19 - Leases:

The Bank has not entered into any transaction of Financial Lease. Operating lease primarily comprises of office premises, which are renewable at the option of the Bank. Lease payment for assets taken on operating lease are recognized as an expense in the Profit and Loss Account.

1.6.8 Accounting Standard 22 - Accounting for Taxes on income:

i. Current Tax

a. In view of taxable losses, the Bank is not required to make any provision for income tax.

b. The disputed tax demands of R 3,300.77 Crore outstanding as on 31st March, 2019 (previous year RS.1,297.82 Crore) have been shown in Schedule No 12 - Contingent Liabilities under the head “Claims against the Bank not acknowledged as debt”.

c. Other assets {Schedule 11 (iii)} include RS.3,210.94 Crore (previous year R 2,656.86 Crore) towards disputed Income Tax paid by the Bank / adjusted by the authorities and also include MAT Credit Entitlement of RS.136.89 Crore (previous year RS.136.89). Provision is not considered necessary in respect of aforesaid disputed demands based on several judicial pronouncements / counsels opinions.

ii. Deferred Tax

The Bank has recognized deferred tax assets and liabilities. The breakup of deferred tax assets and liabilities into major items is given below:

* Based on the review and certainity of availability of future taxable income, the Bank has recognized Deferred Tax Assets during the current year of R 2,917 Crores, on account of unabsorbed depreciation and carry forward losses, and an amount of R 675 Crores on account of regulatory provisions for non performing loan assets (NPA).

1.6.9 Accounting Standard - 28 - Impairment of Assets:

The Bank’s assets substantially comprise of financial assets, which are not covered by AS-28 ‘Impairment of Assets’. In the opinion of Bank’s management there is no impairment in the value of its non-financial assets in terms of said Accounting Standard.

1.6.10 Accounting Standard - 29 - Provisions, Contingent Liabilities and Contingent Assets:

The Contingent Liabilities as stated in schedule 12 [clause (I) and (VI)] to the accounts mentioned above are dependent upon the outcome of Court/ arbitration/out of Court settlements, disposal of appeals, and the amount being called up, terms of contractual obligations, devolvement and raising of demand by concerned parties, as the case may be. No liability is expected in respect of clause (I) and (VI) of the said schedule.

1.7.1 Letter of Comforts

The Bank issues Letter of Comforts (LOCs) on behalf of its various constituents against the credit limits sanctioned to them. RBI vide its circular A.P. (DIR Series) Circular No. 20 dated 13.03.2018, has discontinued the issuance of Letter of Comfort for raising buyer’s credit. Bank has complied with the circular and has discontinued the issuance of Letter of Comfort. 4 LOCs for Rs.9.00 Crore are outstanding as on 31^st March 2019, since these pertains to Capital Account transactions, which have not fallen due as on 31.03.2019.

Brief details of LOCs are as under:-

1.7.2 Off Balance Sheet SPVs sponsored (domestic & overseas) - Nil

1.7.3 Credit Default Swaps (CDS): Bank has policy in place for Credit default Swaps. However, no CDS transaction has been under taken by the Bank during the F.Y. 2018-19.

1.7.4 Transfer to Depositor Education and Awareness Fund (DEAF)

As complied and certified by the management and replied upon the auditors.

Qualitative Disclosure around LCR

Liquidity Coverage Ratio (LCR) standard has been introduced with the objective that a Bank maintains an adequate level of unencumbered High Quality Liquid Assets (HQLAs) that can be converted into cash to meet its liquidity needs for a 30 calendar day time horizon under a significantly severe liquidity stress scenario. The stock of liquid assets should enable the Bank to survive until day 30 of the stress scenario, by which time it is assumed that appropriate corrective actions can be taken. Minimum LCR has to be maintained at 100% with effect from January 01, 2019. LCR has been defined as Stock of high quality liquid assets (HQLAs) over Total net cash outflows over the next 30 calendar days. Liquid assets comprise of high quality assets that can be readily sold or used as collateral to obtain funds in a range of stress scenarios. There are two categories of assets included in the stock of HQLAs, viz. Level 1 and Level 2 assets. Level 1 assets are with 0% haircut while Level 2A assets are with a minimuRs.15% haircut and Level 2B Assets, with a minimuRs.50% haircut.

The total net cash outflows is the total expected cash outflows minus total expected cash inflows for the subsequent 30 calendar days. Total expected cash inflows and outflows are calculated by multiplying the outstanding balances of various categories of contractual receivables and types of liabilities and off-balance sheet commitments by the rates at which they are expected to flow in or drawn down.

The main drivers of LCR results and the evolution of the contribution of inputs to the LCR calculation over time:

i. The main drivers of LCR results are High Quality liquid assets (HQLA) in the form of excess SLR over mandatory SLR requirement, MSF eligible SLR securities (presently upto 2% of NDTL) and providing additional liquidity facility in the form of Facility to Avail Liquidity for LCR (FALLCR) upto 13 % of NDTL. RBI vide circular dated September 27, 2018 has increased the FALLCR to 13% of NDTL froRs.11% earlier.

ii. Intra-period changes as well as changes over time: The LCR for the 1st quarter of FY 2018-19 stood at 100.03%. The same increased to 122.14% for the 2nd Quarter of FY 2018-19 due to increase in HQLA. The LCR for the 3rd Quarter further increased to 126.43% and the same decreased to 116.45% for the 4th quarter of FY 2018-19 due to increase in Outflow. The average LCR for the FY 2018-19 stood at 119.13%.

iii. The composition of HQLA : HQLA Mainly consists of Cash including excess CRR, excess SLR, Govt. securities upto 2% of NDTL within the mandatory SLR requirement (MSF), Govt. Securities upto 13% of NDTL within the mandatory SLR requirement (FALLCR), Marketable securities representing claims on or claims guaranteed by sovereigns, Public Sector Entities (PSEs) or multilateral development Banks that are assigned a 20% risk weight, Corporate bonds not issued by a Bank/financial institution/NBFC or any of its affiliated entities, which have been rated AA- or above by an Eligible Credit Rating Agency, Commercial Papers not issued by a Bank/ PD/ financial institution or any of its Affiliated entities etc.

iv. Concentration of funding sources: The Bank has well diversified deposit base, three depositors had aggregate deposits in excess of 1% of the total liabilities of the Bank as on 31st March, 2019. The deposit by the largest depositor contributed 1.82% of the total liabilities and 2.12% of the total deposits as on 31st March, 2019.

v. Derivative exposures and potential collateral calls: - NIL

vi. Currency mismatch in the LCR: - NIL

vii. A description of the degree of centralization of liquidity management and interaction between the group’s units: The Bank is not having any subsidiary. The Liquidity Management is undertaken at Corporate Office by Treasury Department.

viii. Other inflows and outflows in the LCR calculation that are not captured in the LCR common template but which the institution considers to be relevant for its liquidity profile. - NIL

1.7.5 Break up of provisions and contingencies shown

under the head expenditure in profit and loss account

1.7.6 During the year 2018-19, no draw drawn from reserves has been made.

1.7.7 Fraud reported and provision made during the year 2018-19

During the year, 319 cases of fraud amounting to R 2410.89 Crore were reported and provision of R 2288.24 Crore (excluding recovery made & amount Written off) has been made.

1.7.8 Inter Office Accounts

Inter Office Accounts between branches, controlling offices and head office are being reconciled on an ongoing basis and no material effect is expected on the profit and loss account of the current year.

1.7.9 Payment to Micro, Small & Medium Enterprises under the Micro, Small & Medium Enterprises Development Act, 2006

As on date the categorization of MSME vendor is being done manually and not captured in the system. Further the Bank has not received any claim from any MSME vendor for interest on account of delayed payment and/or for the principal during Financial Year 2018-19.

1.7.10 Priority Sector Lending Certificate (PSLC)

The Bank purchased PSLCs amounting to RS.9000/- Crore (Previous Year: RS.11484.50Crore) during the year ended March 31, 2019 under following categories:

The Bank did not sell any PSLC during the year ended March 31, 2019 (Previous Year: Nil)

1.7.11 Previous year figures have been regrouped/ reclassified, wherever necessary, to conform to current year classification. In cases where disclosures have been made for the first time in terms of RBI guidelines / Accounting Standards, previous year’s figures have not been mentioned.

1.7.12 Contingent liabilities

Movement of provisions against contingent liabilities as on 31^st March, 2019.

Note: Data shown here is as on 25 March’19 as the MIS was closed earlier due to FY-18-19 closing activities.

1.7.13 As per RBI circular no DBR.NO.BPBC.18/21.04.048/2018-19 dated 01.01.2019 the details of MSME Borrower accounts restructured during quarter ended 31.03.2019 is as under.

1.7.14 As per RBI Circular no RBI/2017-18/186 DBR No. BP.BC.108/21.04.048/2017-18 dated 06.06.2018, MSME borrower get benefitted in assets classification as on 31.03.2019 is as under.

1.7.15 During the year, the Bank has revalued the premises forming part of its fixed assets schedule. These premises are revalued based on the reports of external independent valuers as per premises policy of the Bank approved by the Board. The surplus arising from the revaluation amounting to R 127.99 crores is shown as “Revaluation Reserves” under “Reserves and Surplus”.

1.7.16 Categorization of Investments

In accordance with Reserve Bank of India guidelines and as stated in Accounting Policy No. 4, investment portfolio has been categorized as under:

HTM - Held to Maturity; HFT - Held for Trading; AFS - Available for Sale

1.7.18 In respect of investments under Held to Maturity category, the premium amount amortized during the year is RS.106.35 Crore (previous year RS.135.36 Crore) and the same has been accounted for in Schedule No.13 under the head ‘Interest Earned’ as deduction from ‘Income on Investments’.

1.7.19 The Bank has transferred Securities amounting to RS.6022.38 Crore (Previous year RS.23582.96 Crore), from ‘Held to Maturity’ category to ‘Available for Sale’ category and RS.4703.23 Crore (Previous year RS.3202.99 Crore) from ‘Available for Sale’ to ‘Held to Maturity’ category, during the year which is in accordance with RBI guidelines. The total Mark to Market depreciation on shifting of above mentioned securities was RS.86.05 Crore (previous year RS.35.65 Crore), and the same has been charged to Profit and Loss Account.

1.7.20 Investment towards capital contribution in Joint Venture Company for Life Insurance Business with Canara Bank and HSBC under the name and style of “Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited” as on 31.03.2019 is RS.218.50 Crore, which amounts to 23% capital contribution by the bank. Further there is no investment in the current year as well as in previous year. The said investment has been classified under "Held to Maturity’ category under the head investment in joint ventures, as the intention is to hold as joint venture investment although the holding is less than 25% as required under RBI norms. The Bank has obtained permission of RBI to classify the same under HTM category. In the opinion of the management the impact in the value of the said investment on account of initial losses is not permanent in nature and hence no provision is considered necessary.