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1 ½ III ¹œ III œïˆå úˆå µ Basel III Pillar III Disclosures ˆÅ ˆÅ ½ ž ú ö Ä ÿˆå ˆ½Å ½ œ» ú œ Äœ ü½åÿ ˆÄÅ ( ½ III) ˆ½Å œ 3 ˆ½Å Š Ä œïˆå úˆå µ ( Ÿ ½ ˆÅ š œ ) Disclosures (on consolidated basis) under Pillar 3 in terms of New Capital Adequacy Framework (Basel III) of Reserve Bank of India as on ú ûå 1À ºœÏ ½Š ˆÅ ½ œ» ú œ Äœ œïˆå úˆå µ ˆÅ ü½åÿ ˆÄÅ ÿˆå ÁûöÅ õ ¾ œ Ÿ ½ ˆÅ š œ Š» í ½ í¾, ½ ˆÅ Ÿ»í Ÿ Ê ½Ä ÿˆå í¾. (i) Š ºµ Ÿ ˆÅ œïˆå úˆå µ ƒˆå ƒä ˆÅ Ÿ / Š Ÿ ½ Name of the entity / Country of incorporation ¾ ú ÿˆå./ ž The Nainital Bank Ltd. / India Á ˆ¾Å œ Ÿ ˆ½ÄÅ. / ž BOB Capital Markets Ltd /India Á ˆÅ Ä. / ž BOB Cards Ltd. / India õ ¾ Š ½ ½ Ä ¹ Ä ¹ ¹Ÿ ½ / ž Baroda Global Shared services Limited / India ÿˆå ÁûöÅ õ ¾ ( ½ )./ ½ Bank of Baroda (Botswana) Ltd./ Botswana ÿˆå ÁûöÅ õ ¾ (ˆ½Å )./ ˆ½Å Bank of Baroda (Kenya) Ltd. / Kenya ÿˆå ÁûöÅ õ ¾ (»Š )./»Š Bank of Baroda (Uganda) Ltd. / Uganda ÿˆå ÁûöÅ õ ¾ (Š )./ Š Bank of Baroda (Guyana) Inc. /Guyana ÿˆå ÁûöÅ õ ¾ ( { )./ { Bank of Baroda (Tanzania) Ltd. /Tanzania Æ ƒˆå ƒä ˆÅ ½ Ÿ ½ˆÅ ˆ½Å ½ ˆÅ ½ ˆ½Å Š Ä Ÿ ˆÅ Š í¾ (/ íú ) Whether the entity is included under accounting scope of (/No) Ÿ ½ˆÅ ˆÅú œ Ö ˆÅ µ Ä Explain the method of ƒ ƒ š ƒ ƒ š ƒ ƒ š ƒ ƒ š ƒ ƒ š ƒ ƒ š ƒ ƒ š ƒ ƒ š ƒ ƒ š DF 1. Scope of application and Capital Adequacy The framework of disclosures applies to Bank of Baroda, on consolidated basis, which is the top bank in the group (i) Æ ƒˆå ƒä ˆÅ ½ Ÿ ½ˆÅ ˆ½Å Ÿ ˆÅ ½ ˆ½Å Š Ä Ÿ ˆÅ Š í¾ (/ íú ) Whether the entity is included under regulatory scope of (yes / no) Qualitative Disclosures: Ÿ ½ˆÅ ˆÅú œ Ö ˆÅ µ Ä Explain the method of ƒ ƒ š ƒ ƒ š ƒ ƒ š ƒ ƒ š ƒ ƒ š ƒ ƒ š ƒ ƒ š ƒ ƒ š ƒ ƒ š Ÿ ½ˆÅ ˆÅú œ Ö Ÿ Ê ˆ½Å ˆÅ µ Ê ˆÅ µ Ä Explain the reasons for difference in the method of Ÿ ½ˆÅ ˆ½Å ˆ½Å ˆÅ íú ½ ˆ½Å Š Ä Ÿ ½ ˆÅ ˆÅ Š í¾ ½ ˆÅ µ Ê ˆÅ µ Ä Explain the reasons if consolidated under only one of the scopes of 1

2 ¹«ÄˆÅ ¹ œ ½ Ä Annual Report ƒˆå ƒä ˆÅ Ÿ / Š Ÿ ½ Name of the entity / Country of incorporation ÿˆå ÁûöÅ õ ¾ µ ½ ½Š ½./ µ ½ ½Š ½ Bank of Baroda Trinidad &Tobago Ltd. / Trinidad &Tobago ÿˆå ÁûöÅ õ ¾ ( )./ Bank of Baroda (Ghana) Ltd. /Ghana ÿˆå ÁûöÅ õ ¾ (» ú ÿ )./» ú ÿ Bank of Baroda (New Zealand) Ltd. / Zealand ÿˆå ÁûöÅ õ ¾ (».ˆ½Å)./».ˆ½Å. BOB (UK) Ltd. / UK ƒ ûå Ä ƒûå ƒ ½ Ê ˆ Åœ ú. / ž India First Life Insurance Company Ltd. / India ƒ ƒ ½ ÿˆå (Ÿ ½ ) ú ú/ Ÿ ½ India International Bank (Malaysia) Bhd. / Malaysia ƒ ƒ üå ½. / ž India Infradebt Ltd. / India ƒ Ê { ÿˆå Ÿ ½ / { Indo Zambia Bank Limited / Zambia õ ¾ œ ½ ½ Ÿ ¾ ½ Ÿ Ê ˆ Åœ ú./ž Baroda Pioneer Asset Management Co. Ltd. / India Æ ƒˆå ƒä ˆÅ ½ Ÿ ½ˆÅ ˆ½Å ½ ˆÅ ½ ˆ½Å Š Ä Ÿ ˆÅ Š í¾ (/ íú ) Whether the entity is included under accounting scope of (/No) Ÿ ½ˆÅ ˆÅú œ Ö ˆÅ µ Ä Explain the method of ƒ ƒ š ƒ ƒ š ƒ ƒ š ƒ ƒ š ºœ ú Ÿ ½ˆÅ œ Ö Proportionate Consolidaton Method ºœ ú Ÿ ½ˆÅ œ Ö Proportionate Consolidaton Method ºœ ú Ÿ ½ˆÅ œ Ö Proportionate Consolidaton Method ƒ Æ ú œ Ö Equity Method ƒ Æ ú œ Ö Equity Method Æ ƒˆå ƒä ˆÅ ½ Ÿ ½ˆÅ ˆ½Å Ÿ ˆÅ ½ ˆ½Å Š Ä Ÿ ˆÅ Š í¾ (/ íú ) Whether the entity is included under regulatory scope of (yes / no) íú No Ÿ ½ˆÅ ˆÅú œ Ö ˆÅ µ Ä Explain the method of ƒ ƒ š ƒ ƒ š ƒ ƒ š ƒ ƒ š Ÿ ˆÅ œ» ú ½ ½ ˆÅú Š ƒä ˆÅŸ ˆÅ ú Š ƒä í¾ The investment asset is deducted from regulatory capital ºœ ú Ÿ ½ˆÅ œ Ö Proportionate Consolidaton Method ºœ ú Ÿ ½ˆÅ œ Ö Proportionate Consolidaton Method ƒ Æ ú œ Ö Equity Method ƒ Æ ú œ Ö Equity Method Ÿ ½ˆÅ ˆÅú œ Ö Ÿ Ê ˆ½Å ˆÅ µ Ê ˆÅ µ Ä Explain the reasons for difference in the method of ˆÅ ú úÿ ˆ Åœ ú œ Š» Ÿ ˆÅ ½Ä Regulatory guidelines applied to an insurance entity Ÿ ½ˆÅ ˆ½Å ˆ½Å ˆÅ íú ½ ˆ½Å Š Ä Ÿ ½ ˆÅ ˆÅ Š í¾ ½ ˆÅ µ Ê ˆÅ µ Ä Explain the reasons if consolidated under only one of the scopes of Ÿ ˆÅ ½Ä Regulatory guidelines

3 ½ III ¹œ III œïˆå úˆå µ Basel III Pillar III Disclosures ƒˆå ƒä ˆÅ Ÿ / Š Ÿ ½ Name of the entity / Country of incorporation õ ¾ œ ½ ï ú ˆ Åœ ú œï../ ž Baroda Pioneer Trustee Co. Pvt Ltd / India õ ¾ î œï ½ ŠÏ Ÿ úµ ÿˆå/ ž Baroda Uttar Pradesh Gramin Bank / India õ ¾ ½ ú ŠÏ Ÿ úµ ÿˆå/ ž Baroda Rajasthan Kshetriya Gramin Bank / India Æ ƒˆå ƒä ˆÅ ½ Ÿ ½ˆÅ ˆ½Å ½ ˆÅ ½ ˆ½Å Š Ä Ÿ ˆÅ Š í¾ (/ íú ) Whether the entity is included under accounting scope of (/No) Ÿ ½ˆÅ ˆÅú œ Ö ˆÅ µ Ä Explain the method of ƒ Æ ú œ Ö Equity Method ƒ Æ ú œ Ö Equity Method ƒ Æ ú œ Ö Equity Method õ ¾ Š º ŠÏ Ÿ úµ ÿˆå/ ž Baroda Gujarat Gramin Bank / India ƒ Æ ú œ Ö Equity Method. Ÿ»í ˆÅú ½ ú ƒˆå ƒ Ê ˆÅú» ú íê Ÿ ½ˆÅ ˆ½Å Ÿ ˆÅ Š í¾à ¾ ú ÿˆå. Á ˆ¾Å œ Ÿ ˆ½ÄÅ. Á ˆÅ Ä. õ ¾ Š ½ ½ Ä ¹ Ä ¹ ¹Ÿ ½ / ž ÿˆå ÁûöÅ õ ¾ ( ½ ). ÿˆå ÁûöÅ õ ¾ (ˆ½Å ). ÿˆå ÁûöÅ õ ¾ (»Š ). ÿˆå ÁûöÅ õ ¾ (Š ). ÿˆå ÁûöÅ õ ¾ ( ). ÿˆå ÁûöÅ õ ¾ µ ½ ½Š ½. ÿˆå ÁûöÅ õ ¾ ( ). ÿˆå ÁûöÅ õ ¾ (» ú ÿ ). ÿˆå ÁûöÅ õ ¾ (».ˆ½Å.). ƒ ƒ ½ ÿˆå (Ÿ ½ ) ú ú ƒ ƒ üå ½. ƒ Ê { ÿˆå Ÿ ½ õ ¾ œ ½ ½ Ÿ ¾ ½ Ÿ Ê ˆ Åœ ú. õ ¾ œ ½ ï ú ˆ Åœ ú œï.. õ ¾ î œï ½ ŠÏ Ÿ úµ ÿˆå õ ¾ ½ ú ŠÏ Ÿ úµ ÿˆå õ ¾ Š º ŠÏ Ÿ úµ ÿˆå Æ ƒˆå ƒä ˆÅ ½ Ÿ ½ˆÅ ˆ½Å Ÿ ˆÅ ½ ˆ½Å Š Ä Ÿ ˆÅ Š í¾ (/ íú ) Whether the entity is included under regulatory scope of (yes / no) Ÿ ½ˆÅ ˆÅú œ Ö ˆÅ µ Ä Explain the method of ƒ Æ ú œ Ö Equity Method ƒ Æ ú œ Ö Equity Method ƒ Æ ú œ Ö Equity Method ƒ Æ ú œ Ö Equity Method Ÿ ½ˆÅ ˆÅú œ Ö Ÿ Ê ˆ½Å ˆÅ µ Ê ˆÅ µ Ä Explain the reasons for difference in the method of Ÿ ½ˆÅ ˆ½Å ˆ½Å ˆÅ íú ½ ˆ½Å Š Ä Ÿ ½ ˆÅ ˆÅ Š í¾ ½ ˆÅ µ Ê ˆÅ µ Ä Explain the reasons if consolidated under only one of the scopes of a. List of group entities considered for : The Nainital Bank Ltd. BOB Capital Markets Ltd BOB Cards Ltd. Baroda Global Shared services Limited/India Bank of Baroda (Botswana) Ltd. Bank of Baroda (Kenya) Ltd. Bank of Baroda (Uganda) Ltd. Bank of Baroda (Guyana) Inc. Bank of Baroda (Tanzania) Ltd. Bank of Baroda Trinidad &Tobago Ltd. Bank of Baroda (Ghana) Ltd. Bank of Baroda (New Zealand) Ltd. BOB (UK) Ltd. India International Bank (Malaysia) Bhd. India Infradebt Ltd. Indo Zambia Bank Limited Baroda Pioneer Asset Management Co. Ltd. Baroda Pioneer Trustee Co. Pvt Ltd Baroda Uttar Pradesh Gramin Bank Baroda Rajasthan Kshetriya Gramin Bank Baroda Gujarat Gramin Bank 3

4 ¹«ÄˆÅ ¹ œ ½ Ä Annual Report ú. Ÿ»í ˆÅú ½ ú ƒˆå ƒ Ê ˆÅú» ú íê Ÿ ½ˆÅ ˆ½Å Ÿ ˆÅ ½ ˆÅ ½ Ê ½ Ê ˆ½Å Š Ä Ÿ ½ˆÅ ˆ½Å Ÿ íú ˆÅ Š í¾ À b. List of group entities not considered for both under the accounting and regulatory scope of : ƒˆå ƒä ˆÅ Ÿ / Š Ÿ ½ Name of the entity / country of incorporation ƒˆå ƒä ˆÅ œïÿ º ˆÅ Ä Principle activity of the entity ˆºÅ º œ ƒ Æ ú ( ¾ ˆÅ š ˆÅ ƒˆå ƒä ˆ½Å ½ ˆÅ º œ Ÿ Ê Š í¾) Total balance sheet equity (as stated in the accounting balance sheet of the legal entity) ˆºÅ ƒ Æ ú Ÿ Ê ÿˆå ˆ½Å ½ ˆÅ (%) % of bank s holding in the total equity ƒˆå ƒä ˆ½Å œ» ú Ê Ÿ Ê ÿˆå ˆ½Å ½ ˆÅ Ÿ ˆÅ œï š Regulatory treatment of bank s investments in the capital instruments of the entity ˆºÅ º œ ( ¾ ˆÅ š ˆÅ ƒˆå ƒä ˆ½Å ½ ˆÅ º œ Ÿ Ê Š í¾) Total balance sheet assets (as stated in the accounting balance sheet of the legal entity)» / NIL (ii) ú. Ÿ Ÿ ˆÅ œïˆå úˆå µ Ÿ ½ˆÅ ˆ½Å Ÿ ˆÅú Š ƒä Ÿ»í ˆÅú ƒˆå ƒ Ê ˆÅú» úà (ii) Quantitative Disclosures: c. List of group entities considered for : ( ` ½ Ÿ ½ / Amt in ` Lakhs) ƒˆå ƒä ˆÅ Ÿ / Š Ÿ ½ ( ¾ ˆÅ œ ½Æ (i) Ÿ Ê Ä Š í¾) Name of the entity / country of incorporation (as indicated in (i)a. above) ¾ ú ÿˆå./ ž The Nainital Bank Ltd. / India Á ˆ¾Å œ Ÿ ˆ½ÄÅ. / ž BOB Capital Markets Ltd /India Á ˆÅ Ä. / ž BOB Cards Ltd. / India õ ¾ Š ½ ½ Ä ¹ Ä ¹ ¹Ÿ ½ / ž Baroda Global Shared services Limited/India ÿˆå ÁûöÅ õ ¾ ( ½ )./ ½ Bank of Baroda (Botswana) Ltd./ Botswana ÿˆå ÁûöÅ õ ¾ (ˆ½Å )./ ˆ½Å Bank of Baroda (Kenya) Ltd. / Kenya ÿˆå ÁûöÅ õ ¾ (»Š )./»Š Bank of Baroda (Uganda) Ltd. / Uganda ÿˆå ÁûöÅ õ ¾ (Š )./ Š Bank of Baroda (Guyana) Inc. / Guyana ÿˆå ÁûöÅ õ ¾ ( )./ Bank of Baroda (Tanzania) Ltd. / Tanzania ƒˆå ƒä ˆÅ œïÿ º ˆÅ Ä Principle activity of the entity ÿ ˆ ÅŠ Banking Š ¾ ÿ ˆ ÅŠ Non Banking Š ¾ ÿ ˆ ÅŠ Non Banking Š ¾ ÿ ˆ ÅŠ Non Banking ÿ ˆ ÅŠ Banking ÿ ˆ ÅŠ Banking ÿ ˆ ÅŠ Banking ÿ ˆ ÅŠ Banking ÿ ˆ ÅŠ Banking ˆºÅ º œ ƒ Æ ú ( ¾ ˆÅ š ˆÅ ƒˆå ƒä ˆ½Å ½ ˆÅ º œ Ÿ Ê Š í¾) Total balance sheet equity (as stated in the accounting balance sheet of the legal entity) ˆºÅ º œ ( ¾ ˆÅ š ˆÅ ƒˆå ƒä ˆ½Å ½ ˆÅ º œ Ÿ Ê Š í¾) Total balance sheet assets (as stated in the accounting balance sheet of the legal entity)

5 ½ III ¹œ III œïˆå úˆå µ Basel III Pillar III Disclosures ƒˆå ƒä ˆÅ Ÿ / Š Ÿ ½ ( ¾ ˆÅ œ ½Æ (i) Ÿ Ê Ä Š í¾) Name of the entity / country of incorporation (as indicated in (i)a. above) ÿˆå ÁûöÅ õ ¾ µ ½ ½Š ½./ µ ½ ½Š ½ Bank of Baroda Trinidad &Tobago Ltd. / Trinidad &Tobago ÿˆå ÁûöÅ õ ¾ ( )./ Bank of Baroda (Ghana) Ltd. /Ghana ÿˆå ÁûöÅ õ ¾ (» ú ÿ )./» ú ÿ Bank of Baroda (New Zealand) Ltd. / New Zealand Á (».ˆ½Å)./».ˆ½Å. BOB (UK) Ltd. / UK ƒ ûå Ä ƒûå ƒ ½ Ê ˆ Åœ ú. / ž India First Life Insurance Company Ltd. / India ƒ ƒ ½ ÿˆå (Ÿ ½ ) ú ú/ Ÿ ½ India International Bank (Malaysia) Bhd. / Malaysia ƒ ƒ üå ½. / ž India Infradebt Ltd. / India ƒ Ê { ÿˆå Ÿ ½ / { Indo Zambia Bank Limited / Zambia õ ¾ œ ½ ½ Ÿ ¾ ½ Ÿ Ê ˆ Åœ ú./ ž Baroda Pioneer Asset Management Co. Ltd. / India õ ¾ œ ½ ï ú ˆ Åœ ú œï../ ž Baroda Pioneer Trustee Co. Pvt Ltd / India õ ¾ î œï ½ ŠÏ Ÿ úµ ÿˆå/ ž Baroda Uttar Pradesh Gramin Bank / India õ ¾ ½ ú ŠÏ Ÿ úµ ÿˆå/ ž Baroda Rajasthan Kshetriya Gramin Bank / India õ ¾ Š º ŠÏ Ÿ úµ ÿˆå/ ž Baroda Gujarat Gramin Bank / India ƒˆå ƒä ˆÅ œïÿ º ˆÅ Ä Principle activity of the entity ÿ ˆ ÅŠ Banking ÿ ˆ ÅŠ Banking ÿ ˆ ÅŠ Banking Š ¾ ÿ ˆ ÅŠ Non Banking Š ¾ ÿ ˆ ÅŠ Non Banking ÿ ˆ ÅŠ Banking Š ¾ ÿ ˆ ÅŠ Non Banking ÿ ˆ ÅŠ Banking Š ¾ ÿ ˆ ÅŠ Non Banking Š ¾ ÿ ˆ ÅŠ Non Banking ÿ ˆ ÅŠ Banking ÿ ˆ ÅŠ Banking ÿ ˆ ÅŠ Banking ˆºÅ º œ ƒ Æ ú ( ¾ ˆÅ š ˆÅ ƒˆå ƒä ˆ½Å ½ ˆÅ º œ Ÿ Ê Š í¾) Total balance sheet equity (as stated in the accounting balance sheet of the legal entity) ˆºÅ º œ ( ¾ ˆÅ š ˆÅ ƒˆå ƒä ˆ½Å ½ ˆÅ º œ Ÿ Ê Š í¾) Total balance sheet assets (as stated in the accounting balance sheet of the legal entity)

6 ¹«ÄˆÅ ¹ œ ½ Ä Annual Report ú. ƒˆå ƒ Ê ˆÅ Ÿ / Š Ÿ ½ Name of the subsidiaries / country of incorporation ƒä. ž ú º«Š Ê Ÿ Ê œ» úš Š Ê ˆÅú ˆºÅ ½ Ÿ ½ˆÅ ˆ½Å Ÿ ˆÅ ½ Ÿ Ê Ÿ íú ˆÅú Š ƒä íÿ Ä ½ ú Š ƒä í¾ À ƒ ½ Ê ƒˆå ƒ Ê ˆÅ Ÿ / Š Ÿ ½ Name of the insurance entities / country of incorporation ƒˆå ƒä ˆÅ œïÿ º ˆÅ Ä Principle activity of the entity úÿ ƒˆå ƒ Ê Ÿ Ê ÿˆå ˆ½Å ˆºÅ ¹ í ˆÅú ˆºÅ ( Ä ÄŸ íú Ÿ» ), ½ ½ Ÿ -ž í¾ À ƒˆå ƒä ˆÅ œïÿ º ˆÅ Ä Principle activity of the entity d. The aggregate amount of capital deficiencies in all subsidiaries which are not included in the regulatory scope of i.e. that are deducted: ˆºÅ º œ ƒ Æ ú ( ¾ ˆÅ š ˆÅ ƒˆå ƒä ˆ½Å ½ ˆÅ º œ Ÿ Ê Š í¾) Total balance sheet equity (as stated in the accounting balance sheet of the legal entity)» / Nil ˆºÅ ƒ Æ ú Ÿ Ê ÿˆå ˆ½Å ½ ˆÅ (%) % of bank s holding in the total equity œ» úš ˆÅ Ÿ Capital deficiencies e. The aggregate amounts (e.g. current book value) of the bank s total interests in insurance entities, which are riskweighted: ( ` ½ Ÿ ½ / Amt in ` Lakhs) ˆºÅ º œ ƒ Æ ú ( ¾ ˆÅ š ˆÅ ƒˆå ƒä ˆ½Å ½ ˆÅ º œ Ÿ Ê Š í¾) Total balance sheet equity (as stated in the accounting balance sheet of the legal entity)» / Nil ˆºÅ ƒ Æ ú Ÿ Ê ÿˆå ˆ½Å ½ ˆÅ % / ½ Š þæ ˆÅ ºœ % of bank s holding in the total equity / proportion of voting power ½ Ÿ ž œ Ö œï ½Š ˆÅ ½ Ÿ œ»µ Ä ˆÅ ¾ ú œ Ö œï ½Š ˆÅ ½ ˆÅ Ÿ ˆÅ œ» ú œ Ÿ Ÿ ˆÅ œïž Quantitative impact on regulatory capital of using risk weighting method versus using the full deduction method ûå. ÿ ˆ ÅŠ Ÿ»í Ÿ Ê Ÿ ˆÅ œ» ú š Ê ˆ½Å ï ûå Ÿ Ê ˆÅ ½ƒÄ œï š õ À œï š õ Ê ˆ½Å š Ÿ Ê Ÿ ½ ½ Ê ˆÅ ú ˆÅ» ¹ ¹ Ÿ Š» í¾. Ÿ»í ƒˆå ƒ Ê ˆ½Å ú œ» úš š Ê ˆÅ µ œï š í¾. ú ûå 2 À œ» ú œ Äœ. ÿˆå Ÿ ˆÅ Ä Ê, Ÿ µ Ê í š ˆÅ Ê ˆÅ ½ œï í Ê ½ º ½ ˆ½Å Æ œ ½{ Ê, ƒ ˆ½Å Ÿ» Ÿ Ê í ˆ½Å ½ Ÿ ½ ˆ½Å œ» ú ˆÅú í¾. ÿˆå ˆ½Å œ Ÿ ˆÅ ĈŠœ» ú ½ Ê ˆ½Å ˆÅúˆ¼Å ½ Ÿ / œ» ú Ÿ Á ¾ ˆÅ ½ í½ º ˆÅ ºœ ž «ˆÅ œ» ú œ Äœ š Ä µ œï ÇÅ ( ƒä ú œ ú) ú í¾ ˆÅ ž ú ½ Ÿ Ê œ» ú ˆÅ ½ œ ˆÅ ³Åœ ½ ˆÅ ˆÅ ˆ½Å. ž ú { Ä ÿˆå ˆ½Å ½Ä Ê ˆ½Å º ÿˆå ½ µ ½ Ÿ ˆ½Å Ÿ ˆÅúˆ¼Å œ Ö, œ ½ Ÿ ˆ½Å š ž» ˆ½Å ˆÅ œ Ö ú ˆÅú Š µ ˆ½Å ½ Ÿ í½ º Ÿ ˆÅúˆ¼Å š ˆÅ œ Ö œ ú í¾. œ» úš ˆÅ ĈŠœ ½, Ÿ ˆÅ { ³ Ê ÿˆå ˆÅú Š š Ê ½ í ½ ½ ½ ½ Ÿ ½ œïž í ½ ú í¾. ÿˆå ˆÅú œ» úš f. Any restrictions or impediments on transfer of funds or regulatory capital within the banking group: In regard to restriction and impediments local laws and regulation of host countries are applicable. The transfer of Capital funds within the Group entities is restricted. DF 2. Capital Adequacy a. Bank maintains capital to cushion the risk of loss in value of exposure, businesses etc. so as to protect the interest of depositors, general creditors and stake holders against any unforeseen losses. Bank has a well-defined Internal Capital Adequacy Assessment Process (ICAAP) policy to comprehensively evaluate and document all risks and to provide appropriate capital so as to evolve a fully integrated risk/ capital model for both regulatory and economic capital. In line with the guidelines of the Reserve Bank of India, the Bank has adopted Standardized Approach for Credit Risk, Basic Indicator Approach for Operational Risk and Standardized Duration Approach for Market Risk for computing CRAR. The capital requirement is affected by the economic environment, regulatory requirement and by the risk arising from bank s activities. Capital Planning exercise of the bank is carried out every year to ensure the adequacy of capital at 6

7 ½ III ¹œ III œïˆå úˆå µ Basel III Pillar III Disclosures ½ ˆÅ Ó½ ĈŠœ Ê ˆ½Å œ Ä ˆ½Å Ÿ, ˆÅ ˆÅ ĈŠŸ ú ˆ½Å ¾ Ÿ Ê ž ú, œ» ú œ Äœ ˆÅ ½ º ä ˆÅ í¾. œ» úš ½ ˆÅú œï ÇÅ Ÿ Ê ÿˆå Ÿ ˆÅú Ÿ ú ˆÅ í¾à ÿˆå ˆÅú Ÿ ¾» œ» úš ˆÅ. ˆÅ ½ µ ú, ú ½ Ÿ œï ¼ î ˆ½Å ž Ä Ÿ Ê š µ ú œ» ú ž «ˆÅú œ» úš ½ Š ½ ú «Ä ˆÅ ½ š Ÿ Ê ˆÅ ˆÅú ú í¾. œ» úš ½ ˆÅ ½ «ÄˆÅ š œ ½ š ˆÅ í¾. ÿˆå ˆÅú ú ˆÅ œ» ú œ Äœ Ÿ» ˆÅ ú (» Ÿ 13% œ» ú œ Äœ ºœ Ÿ - Ÿ œ ÿˆå ˆ½Å µ Ä º ) Ÿ Ê š Ä œ» ú ˆÅ ½ í¾, ƒ ˆ½Å íú ÿˆå ˆÅú ú ž «Ÿ Ê ˆÅ ½ ¼ Ö ˆ½Å œ» ú ˆÅ ½ ½ í¾ ˆÅ ˆÅ» Ÿ œ» ú ˆÅ ½ š œ ˆ½Å. ºŸ ˆ½Å š œ ÿˆå œ ½ ½ ˆÅ Ÿ ˆ½Å ºŸ ½ ½ Ÿ Ê œ» ú Š ¼íú ˆÅ í¾. ÿˆå ˆ½Å ½ ˆÅ Ÿ Ÿ íú š œ ÿˆå ˆÅú œ» ú œ Äœ ˆÅú Ÿ ú ˆÅú ú í¾. Ÿ ½¹ˆÅ š œ ( ¹ ` Ê Ÿ Ê) ( ú) µ ½ Ÿ ˆ½Å œ» úš ˆÅ (` Ê Ÿ Ê) Ÿ ˆÅúˆ¼Å œ Ö ˆ½Å š š ú ž Š À ` œï ž» úˆå µ Æ œ ½ À» ( ú) ½ Ÿ ˆ½Å œ» úš ˆÅ ½ Ÿ À ` ½ ú Ÿ ºÍ Ÿ ½ Ÿ ( µ Ä í ) À ` ƒ Æ ú ½ Ÿ À ` ( ú) œ ½ Ÿ ˆ½Å œ» úš ˆÅ š ž» ˆ½Å ˆÅ œ Ö À ` Ÿ ˆÅúˆ¼Å œ Ö ( Š» í ½) À (ƒä) ˆÅ ÁŸ ƒ Æ ú 1 ˆºÅ œ» úš ºœ ÿˆå ÁûöÅ õ ¾ ( Ÿ ½ ˆÅ š œ ) À ˆºÅ» ˆ½Å ˆÅ ÁŸ ƒ Æ ú 1 œ» ú À 9.64% ˆºÅ» ˆ½Å 1 œ» ú À 10.56% ˆºÅ œ» úà 12.80% ú ûå 3. µ ½ Ÿ ˆ½Å ž Ä Ÿ Ê Ÿ œïˆå úˆå µ ÿˆå ˆÅú µ ½ ˆÅ ½ Š úäˆ¼å ˆÅ ½ ˆ½Å ÿˆå ˆÅú Ÿ ú íÿà Š ¾ «œ ˆÅ ( œ ú ) À Š ¾ «œ ˆÅ ( œ ú ) ˆÅ ½ µ ŠÏŸ í¾ í ÂÀ i. Ÿ ú ú µ ˆ½Å ž Ä Ÿ Ê 90 ½ š ˆÅ ˆÅú š ˆ½Å Ÿ» š ˆÅ / ˆÅ ½ í ½ ú í¾. ii. ½ ï É / ˆÅ š ( ½ ú / ú ú) ˆ½Å š Ÿ Ê Ÿ í í¾. iii. ú ½ Š à ˆ¼Å 90 Ê ½ š ˆÅ ˆÅú š ˆ½Å ½ í ½ íÿ. the times of changing economic conditions, even at the time of economic recession. In capital planning process the bank reviews: Current capital requirement of the bank The targeted and sustainable capital in terms of business strategy, policy and risk appetite. The future capital planning is done on a three-year outlook. The capital plan is revised on an annual basis. The policy of the bank is to maintain capital as prescribed in the ICAAP Policy (minimum 13.00% Capital Adequacy Ratio or as decided by the Bank from time to time). At the same time, Bank has a policy to maintain capital to take care of the future growth in business so that the minimum capital required is maintained on continuous basis. On the basis of the estimation bank raises capital in Tier-1 or Tier-2 with due approval of its Board of Directors. The Capital Adequacy position of the bank is reviewed by the Board of the Bank on quarterly basis Consolidated Basis (Amt in ` Lakhs) (b) (c) (d) (e) Capital requirements for credit risk: Portfolios subject to Standardized approach: ` Securitizations exposures: Nil Capital requirements for market risk: - Interest rate risk: ` Foreign exchange risk (including gold): ` Equity risk: ` Capital requirements for operational risk: Basic Indicator Approach: ` The Standardized Approach (if applicable): Common Equity Tier 1, and Total Capital ratios: Bank of Baroda (Consol Basis): Common Equity Tier I capital to Total RWA: 9.64% Tier I capital to Total RWA: 10.56% Total Capital: 12.80% DF 3. General disclosures in respect of Credit Risk a. The policy of the bank for classifying bank s loan assets is as under: NON PERFORMING ASSETS (NPA): A non-performing asset (NPA) is a loan or an advance where: (i) Interest and/ or installment of principal remain overdue for a period of more than 90 days in respect of a term loan, (ii) The account remains out of order in respect of an Overdraft/Cash Credit (OD/CC), (iii) The bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted, 7

8 ¹«ÄˆÅ ¹ œ ½ Ä Annual Report iv. œ š ûå Ê ˆ½Å ½ ûå ú Ÿ ¾ Ÿ Ê í½ º Ÿ» ˆÅú ˆÅ œ ˆÅ ½ í ½ í¾. v. Ÿ ú š ˆÅú ûå Ê ˆ½Å ˆÅ ûå ú Ÿ ¾ Ÿ í½ º Ÿ» ˆÅú ˆÅ œ ˆÅ ½ í ½ í¾. ˆÅ ú ½ ú / ú ú ½ ˆÅ ½ ` Ÿ ' ½ ˆ½Å ³Åœ Ÿ Ê Ÿ Š ½ Ÿ Ê úˆ¼å úÿ / í µ úÿ ½ š ˆÅ 90 ½ š ˆÅ ˆÅ í ú í ½. ½ ½ Ÿ Ÿ Ê Ÿ Ê, í  Ÿ» œ Š ½ Ÿ Ê ˆÅ ½«úˆ¼Å úÿ / í µ úÿ ½ ˆÅŸ í í ½ ½ ˆÅ º -œ ˆÅú ú ˆÅ ½ ³Åœ ½ 90 Ê ˆ½Å ú š ˆ½Å ¾ Ÿ ½ ˆÅ Š ˆÅú» ú í½ º Ÿ ½«íú í ½ ½ ½ ½ Ê ˆÅ ½ ` Ÿ ' ½ ˆÅú ª½µ ú Ÿ Ê Ÿ ½Š. ˆÅ ú ž ú µ º š ˆ½Å Š Ä ÿˆå ˆÅ ½ ½ ˆÅ ú ž ú ½ ú ˆÅ ½ ½ ' Ÿ ½Š í ÿˆå š Ä ˆÅú Š ƒä ½ ú ˆÅ ½ íú ˆÅú ú í¾. Š ¾ «œ ˆÅ ½ ( œ ú ƒä) œï ž» Ê ˆ½Å š Ÿ Ê í  /Ÿ» š ˆÅ í¾, ÿˆå œï ž» Ê œ ˆÅú Š µ íú ˆÅ í¾ ½ ˆ½Å Ÿ» Ÿ Ê Ÿ» Ý ˆ½Å Ÿ º œï š ˆÅ í¾. Š ¾ «œ ˆÅ ½ ( œ ú ƒä) ½ Š ¾ «œ ˆÅ ŠÏŸ ( œ ú ) ˆ½Å Ÿ íú í¾, ½ ˆÅí ½ íÿ í ÂÀ (i) / ˆÅ (œ œ Æ œï œ Ê í ) ½ í¾ ¾ 90 Ê ½ š ˆÅ Ÿ ˆÅ î í í¾. (ii) í š Ÿ ú ½ Ê œ í  š Ä ž ˆÅ ž ºŠ íú ˆÅ Š í¾, ˆÅ œ Ä Ê í Š» í ½ í¾. (iii) ƒ Æ ú ½ Ê ˆ½Å Ÿ Ÿ ½ Ÿ Ê, í  ˆÅ ú ˆ Åœ ú ˆ½Å ½ Ê ˆ½Å ½ ˆÅ ½ œ Ÿ» œï ˆ Åœ ú ` 1/- ˆÅ Š í¾. ž ú { Ä ÿˆå ˆ½Å ½ Ê ˆ½Å º Ô º œ ˆÅú ºœ š ˆ½Å ˆÅ µ ƒ Æ ú ½ Ê ˆÅú Š µ ž ú œ ú ƒä ˆ½Å ³Åœ Ÿ Ê ˆÅú ú í¾. (iv) Š ÄŸ ˆÅ Ä œï œ ˆÅú Š ƒä ˆÅ ½ƒÄ µ º š ÿˆå ˆÅú í Ê Ÿ Ê œ ú í¾ ½ Š ÄŸ ˆÅ Ä š Ÿ ú ½ Ê í ú ˆÅú Š ƒä ˆÅ ú ž ú œï ž» Ÿ Ê ½ ˆÅ ½ œ ú ƒä ½Ÿ À Ÿ Š. œ, ˆ½Å š Ÿ ú ½ íú œ ú ˆ½Å ³Åœ Ÿ Ê Š ú䈼å íÿ ½ Š ÄŸ ˆÅ Ä ú ˆÅ ú ˆÅ Ä «œ ½ Ÿ Ê ˆÅ Š ½ œ ú íú Ÿ Š. (v) Ê / Ÿ ½ ½ ½ ˆÅ ŠÏŸ ˆ½Å ³Åœ Ÿ Ê Ÿ ½ ½ íÿ, ½ œ Š» í ½ ½ ½ œ ú ƒä Ÿ Ê ˆ½Å š š ú íÿ. ÿˆå ˆÅú Š ¾ «œ ˆÅ Ê ˆÅ ½ Ÿ -3- ª½ µ Ê Ÿ Ê Š úäˆ¼å ˆÅ Š í¾. Ÿ ˆÅ Ÿ ˆÅ ½ ž œï, ½ ú ½ í¾ ½ ˆÅ 12 Ÿ íú Ê ˆÅú š ½ ˆÅŸ Ÿ º š ˆ½Å Š ¾ «œ ˆÅ íú í ½. Šš ˆÅ ú ž ú ˆÅ ½, 12 Ÿ íú Ê ˆ½Å Ÿ ˆÅ ª½µ ú Ÿ Ê ½ í ½ ˆÅú Ÿ Ê ½ Šš ˆ½Å ³Åœ Ÿ Ê Š úäˆ¼å ˆÅ ½Š. í ú í ú ½ ž œï ½ ú ½ íÿ í ÿˆå ˆÅ à ½ œ ú ˆÅ Ê ž ú Ä ÿˆå ˆ½Å ú µ œ ú í ½. í ú Ê Ÿ Ê œ š œï ž» ˆÅ» ú ½Š Ÿ», ˆÅ ½«/ ½ Ê ˆÅ 10% ½ š ˆÅ íú í ½ í¾. (iv) The installment of principal or interest thereon remains overdue for two crop seasons for short duration crops, (v) The installment of principal or interest thereon remains overdue for one crop season for long duration crops. An OD/CC account is treated as 'out of order' if the outstanding balance remains continuously in excess of the sanctioned limit/drawing power for more than 90 days. In cases where the outstanding balance in the principal operating account is less than the sanctioned limit/drawing power, but there are no credits continuously for 90 days as on the date of Balance Sheet or credits are not enough to cover the interest debited during the same period, these accounts are treated as 'out of order'. Any amount due to the bank under any credit facility is overdue if it is not paid on the due date fixed by the bank. Non Performing Investments (NPI): In respect of securities, where interest/principal is in arrears, the Bank does not reckon income on the securities and makes appropriate provisions for the depreciation in the value of the investment. A non-performing investment (NPI), similar to a non-performing advance (NPA), is one where: (i) Interest/ installment (including maturity proceeds) is due and remains unpaid for more than 90 days. (ii) This applies mutatis-mutandis to preference shares where the fixed dividend is not paid. (iii) In the case of equity shares, in the event the investment in the shares of any company is valued at ` 1 per company on account of the non-availability of the latest balance sheet in accordance with the Reserve Bank of India instructions. Those equity shares are also reckoned as NPI. (iv) If any credit facility availed by the issuer is NPA in the books of the bank, investment in any of the securities, including preference shares issued by the same issuer would also be treated as NPI and vice versa. However, if only the preference shares are classified as NPI, the investment in any of the other performing assets issued by the same issuer may not be treated as NPA. (v) The investments in debentures / bonds which are deemed to be in the nature of advance are subjected to NPI norms as applicable to investments. Non Performing Assets of the Banks are further classified in to three categories as under: Sub standard Assets A sub standard asset is one which has remained NPA for a period less than or equal to 12 months. Doubtful Assets An asset would be classified as doubtful if it has remained in the sub standard category for 12 months. Loss Assets A loss asset is one where loss has been identified by the bank or by internal or external auditors or the RBI inspection. In loss assets realizable value of security available is less than 10% of balance outstanding/ dues. 8

9 ½ III ¹œ III œïˆå úˆå µ Basel III Pillar III Disclosures ˆÅ Ä ú œï ÇÅ ÿˆå ˆÅú, µ ½ Ÿ œï š ˆ½Å Ÿ í œ»µ Ä ½ Ê ˆÅ ½ Ÿ ˆÅ ½ íº œ»µ Ä ³Åœ ½ œ ž «µ ú ½ ú í¾, ½ ˆÅ Ÿ º í¾ À Ä ˆ½Å ž ½ Ê Ÿ Ê Æ œ ½ ( µ ) úÿ, µ Ê ˆ½Å ž œïˆå ¾ ˆ½Å ŠÏºœ Ô ½Š µ µ Ÿ Ê í í ÿˆå Ÿ Ê ž Ê ˆ½Å œï š ˆÅ Ê ˆ½Å µ œï ˆÅ ½ š ú ½ˆÅ š ˆÅ µ µ œï ÇÅ - úˆ¼å œ» Ä ú µ, úˆå ˆÅ, Ÿ» ˆÅ, úˆ¼å, ½ úˆå µ, Ÿ ú Š ¾» ú ˆ½Å š Ÿ Ê œï ÇÅ Ÿ» š Ä µ ÿˆå ˆÅ µ ½ Ÿ Ä, ¾ œïµ ú Ÿ º í¾ µ ½ Ÿ Ä ½ Ÿ œï š ƒ œïˆå ˆÅ ˆÅ ÿˆå ˆ½Å š Ê ˆÅú º, ˆÅ œ ½Ä ½ ¼ Ö Ÿ ¼ Ö º ä ˆÅ ½ ˆ½Å ½ š ˆÅ Ê ˆ½Å ĈŠŸ» Ÿ Ê õ ½î ú í ½ ž ú í š ˆÅ Ê ˆ½Å í í Ê. ÿˆå œ ½ î ú š Ê ˆÅ ½ ÇÅ Ÿ ˆÅ ³Åœ ½ º ¾ ˆÅ Š ½ ˆÅ ž ¾ Ê ˆÅ ½ ½ õ ˆ½Å ÿˆå ˆ½Å Ÿ Ê ¾ Ó½ Ê ˆÅ ½ œï œ ˆÅ ˆ½Å. Ä ˆÅú ž «ïú œï Ÿ ˆÅ Ê ˆÅ ½ ½ Ö úˆ½å ½ œ» ˆÅ ½ ˆ½Å Š î ˆ½Å ž ½ ˆ½Å Ÿ Ÿ ½ Ÿ Ê Ä ˆ½Å ž œ ˆÅ ½ Ê Ÿ Ê º ½ ¼ Ö ½ œï œ ˆÅ. Ô Ÿ µ ˆ¼Å ˆÅ ˆÅ ¾ œ ûå ˆÅ ½ í ½Š œï ˆÅ. ž µ ú Š ½ô ˆÅ ½ ˆÅ š ¾ Ÿ œ µ º š œ š ˆÅ. úˆ¼å œ» Ä, úˆ¼å œ Ÿ Š, œ Ä ½ µ ¾ º úä ˆÅ Ÿ ½ íº µ œï š ˆÅ ¾ ˆÅ ½ œïž ú ˆÅ ÿˆå Ÿ Ê ˆÅ Š µ ˆ¼Å ˆÅ ˆÅú ˆ½Å µ ž Š ˆÅ ½ Š ºµ î ºÆ ˆ½Å. Š ºµ î Ÿ» ˆÅ œ ˆ½Å ¼ ½Ä Ê ˆÅ œ»µ Ä ºœ š ˆÅ œïž œ»µ Ä Š ½ ˆÅ ½ íº µ œï Ê œ ˆÅ Ä íú ˆÅ. ž Ÿ ˆÅ ˆÅ Ê ½«³Åœ ½ ž ú Ä ÿˆå / œï š ˆÅ Ê, Æ œ ½ Ÿ Ê, œï Ÿ ˆÅ œï œ ½ ˆ½Å Ÿ Ê, œ í ¾ Š úäˆå µ ½Ä, œ» ú œ Äœ, µ ½ Ÿ œï š ½Ä Ê ˆÅú ºœ ˆÅ. ÿˆå ˆÅú ¾ œïµ ÿˆå Ÿ Ê ½ Ÿ œï š ˆÅ ĈŠœ Ê ˆÅú ½ ½ Ÿ ˆÅ ½Ä ˆ½Å ½ Ä ½ ˆÅ Ê ˆÅú ˆÅ œ Ÿ ˆÅ Š ˆÅ Š í¾. Strategies and Processes: The bank has a well defined Loan Policy & Investment Policy covering the important areas of credit risk management as under: Exposure ceilings to different sectors of the economy, different types of borrowers and their group and industry Fair Practice Code in dispensation of credit Discretionary Lending Powers for different levels of authority of the bank Processes involved in dispensation of credit pre-sanction inspection, rejection, appraisal, sanction, documentation, monitoring, and recovery. Fixation of pricing. The Credit Risk philosophy, architecture and systems of the bank are as under: Credit Risk Philosophy: To optimize the risk and return envisaged in order to see that the Economic Value Addition to Shareholders is maximized and the interests of all the stakeholders are protected alongside ensuring corporate growth and prosperity with safety of bank s resources. To regulate and streamline the financial resources of the bank in an orderly manner to enable the various channels to achieve the common goal and objectives of the Bank. To comply with the national priorities in the matter of deployment of institutional finance to facilitate achieving planned growth in various productive sectors of the economy. To instill a sense of credit culture enterprise-wide and to assist the operating staff. To provide need-based and timely availability of credit to various borrower segments. To strengthen the credit management skills namely presanction, post-sanction monitoring, supervision and followup measures so as to promote a healthy credit culture and maintain quality credit portfolio in the bank. To deal with credit proposals more effectively with quality assessment, speedy delivery, in full compliance with extant guidelines. To comply with various regulatory requirements, more particularly on Exposure norms, Priority Sector norms, Income Recognition and Asset Classification guidelines, Capital Adequacy, Credit Risk Management guidelines etc. of RBI/other Authorities. Architecture and Systems of the Bank: Risk management Committee of Board has been constituted by the Board to specifically oversee and co-ordinate Risk Management functions in the bank. 9

10 ¹«ÄˆÅ ¹ œ ½ Ä Annual Report µ ú Ê í ž µ ½ Ÿ ú Ê ˆÅ ½ ¾ ˆÅ ½ ¾ ˆÅ ÇÅ º ä ˆÅ ½, µ œï ˆÅ ½ š ú ú Ê ¾ ÿˆå ˆÅú Ô Ÿ ½ Ÿ œï š ˆÅ ½Ä ˆÅú Ÿ ½ ½ ˆÅ ½ ˆ½Å µ ú Ÿ ˆÅ Š ˆÅ Š í¾. µ œï Ê ˆ½Å Ÿ ˆÅ Ê, î ú œï Ê, ½ Š Ÿ ˆÅ Ê Ê Ÿ ˆÄÅ ˆ½Å š Ÿ Ê Ÿ ˆÅ ú ¾ ˆÅ. µ ½ Ÿ œï š ˆÅ š Ä úÿ Ê ˆ½Å í œ í,, ½ ½ µ ½ Ÿ µ š ú ˆÅ Ä ½ ½ íÿ. ½ Ä / Ÿ ˆÅ Ê ¾ ˆÅ Š ½ Ÿ Ÿ ž úÿ Ê ˆÅ ½ Š» ˆÅ ˆÅ ºœ º ä ˆÅ. ½ Ÿ Ÿ» ˆÅ œïµ Ê ˆÅ ½ ¾ ˆÅ, Ÿ ƒä ˆÅ ˆÅ ˆÅ ¾ µ ž Š ˆÅú Š ºµ î ˆÅú ½ ½, Ÿ Ê ˆÅú œ í ˆÅ Ÿ Ê ˆÅ ½ œ» ˆÅ. ž Š Ÿ» ˆÅ ˆÅ, Ä, Ô ½Š œ º Ÿ ˆÅ ½ ¾ ˆÅ, µ ž Š œ ú ½œ ˆÅ œ ú µ ˆÅ. š Ä Ÿ Ê ¾ Ÿ Š Ä ½Ä Ê ˆÅú œ»µ Ä ³Åœ ½ ºœ ˆ½Å µ ºœ º ÄŠ ú œïµ ú Ÿ Ê ºš. ½ Ÿ œ ½Ä Š ˆÅú ž œïˆ¼å ¾ / ˆÅ œ Ö ÿˆå ˆ½Å œ œ ½ µ ½ Ÿ ˆ½Å Ÿ» µ ½ Ÿ ½ Š œïµ ú œ š í¾. µ ½ Ÿ Ê ˆÅ ½ ˆÅŸ ˆÅ ½ ˆ½Å œïž ú œ Ê Ÿ Ê ˆÅ ú ž ú ½«Ÿ Ê ½ Ÿ ˆÅú ž Ê ˆÅ œ Š, º õ Š ºµ ½ ½, ÿˆå ˆÅú Ÿ ŠÏ ˆÅ Ä ú ¾ µ ú ˆ½Å º³Åœ œ ½ ½ Ÿ Ä Ÿ Ê ˆÅ ½ œ» ˆÅ ½ ˆ½Å Ê ˆÅú ˆÅúŸ Ê ˆÅ ½ ú Ÿ í¾. ÿˆå ˆÅú Ÿ» µ ½ Ÿ ½ Š œïµ ú Ä«ïú œ œ ½ í½ ³Åœ ¾ æ ˆÅú Ÿ í œ»µ Ä œï ÇÅ Ê œ š í¾ ¾ í ÿˆå ˆÅ ½ µ Ê Ÿ Ê»ˆÅ ˆÅú ž Ê ˆÅ š Ä µ ˆÅ ½»ˆÅ ˆÅú Š ž ú ˆÅ œ Š ½ Ÿ Ê í ½Š ˆÅ ú í¾ ¾ ƒ œïˆå í œïµ ú ÿˆå ˆÅ ½ œ Ö Ÿ ĵ Š ºµ î ˆÅ ½ ˆÅ ½ Ÿ Ê Ÿ ˆÅ ú í¾. µ ½ Ÿ ˆ½Å š Ÿ Ê Ÿ Ÿ ˆÅ œïˆå úˆå µ ( ) ˆºÅ ˆÅ µ ½ Ÿ Æ œ ½ Credit Policy Committee has been set up to formulate and implement various credit risk strategy including lending policies and to monitor Bank s Enterprise-wide Risk Management function on a regular basis. Formulating policies on standards for credit proposals, financial covenants, rating standards and benchmarks. Credit Risk Management cells deal with identification, measurement, monitoring and controlling credit risk within the prescribed limits. Enforcement and compliance of the risk parameters and prudential limits set by the Board/regulator etc., Laying down risk assessment systems, developing MIS, monitoring quality of loan portfolio, identification of problems and correction of deficiencies. Evaluation of Portfolio, conducting comprehensive studies on economy, industry, test the resilience on the loan portfolio etc., Improving credit delivery system upon full compliance of laid down norms and guidelines. The Scope and Nature of Risk Reporting and / or Measurement System: The Bank has in place a robust credit risk rating system for its credit exposures. An effective way to mitigate credit risks is to identify potential risks in a particular asset, maintain healthy asset quality and at the same time impart flexibility in pricing assets to meet the required risk-return parameters as per the bank s overall strategy and credit policy. The bank s robust credit risk rating system is based on internationally adopted frameworks and global best practices and assists the bank in determining the Probability of Default and the severity of default, among its loan assets and thus allows the bank to build systems and initiate measures to maintain its asset quality. Quantitative Disclosures in respect of Credit Risk:- (a) Total Gross Credit Risk Exposure: µ Particulars ˆºÅ ˆÅ µ ½ Ÿ À ( Æ œ ½{ ) Total Gross Credit Risk : (Exposure) ( ` ½ Ÿ ½ / Amt in ` Lakhs) š š Fund Based Š ¾ š š Non-Fund Based ( ú) Æ œ ½ ˆÅ ž ¾Š ½ ˆÅ µ, ( š š Š ¾ š Š - Š ) µ Particulars ˆºÅ ˆÅ µ ½ Ÿ À ( Æ œ ½{ ) ( ½» + ½» º«Š ) Total Gross Credit Risk : (Exposure) (Domestic + Domestic Subsidiaries) ˆºÅ ˆÅ µ ½ Ÿ À ( Æ œ ½{ ) ( ½ ú + ½ ú º«Š ) Total Gross Credit Risk : (Exposure) (Overseas + Overseas Subsidiaries) (b) Geographic distribution of exposures, (Fund based and Non-fund based separately) ( ` ½ Ÿ ½ / Amt in ` Lakhs) š š Fund Based Š ¾ š š Non-Fund Based

11 ½ III ¹œ III œïˆå úˆå µ Basel III Pillar III Disclosures ( ú) Æ œ ½ ˆÅ Ô ½Š ƒœ µ ( ½») ( š š Š ¾ š š Š - Š ) (c) Industry type distribution of exposures (Consolidated) (Fund based and Non-fund based separately): ÇÅŸ Sr No Ô ½Š Industry š š FB Exposure Š ¾ - š š NFB Exposure ˆºÅ Total 1 1 A Mining and Quarrying ˆÅ ½ 2A.1 Coal A.2 Other ú. Ô œï ˆÅ µ 4B. Food Processing ú.1 ú ú 5B.1 Sugar ú.2 Ô ½ œ 6B.2 Edible Oils and Vanaspati ú.3 7B.3 TEA ú.4 ˆÅ ûåú 8B.4 Coffee ú.5 9B.5 Others ú. œ ½ œ Ä 10C. Bevarages ú.1 Ÿ ˆ»Å Ÿ ˆ»Å œ 11C.1 Tobacco and tobacco products ú.2 12C.2 Others ú. ¾Æ ƒ 13D. Textiles ú.1 ˆÅ Á ¾Æ ƒ 14D.1 Cotton Textile ú.2» ¾Æ ƒ 16D.2 Jute Textile ú.3 í œ / ú 16D.3 Handicraft/Khadi ú.4 ˆÅ 17D.4 Silk ú.5» 18D.5 Woolen ú.6 19D.6 Others ú Ÿ Ê ½ œ Š Ÿ 20 Out of D to spinning Mills ƒÄ. Ÿ õ ¾ Ÿ õ œ 21E. Leather and Leather products ûå. ˆÅ «ˆÅ «œ 22F. Wood and Wood products ú. ˆÅ Š ˆÅ Š œ 23G. Paper and Paper products œ ½ ï ½ Ÿ 24H. Petroleum ¾ œ 25I. Chemicals and Chemical Products Ä ˆÅ 26I1. Fertilizers ïš ûå Ÿ Ä» ˆÅ 27I.2 Drugs and Pharmaceuticals œ ½ ï ½-ˆ½ÅŸ úˆå 28I.3 Petro-Chemicals I.4 Other ½. œ ˆÅ œ 30 J.Rubber Plastic and their Products ˆ½Å. Š Š ½ 31K. Glass and Glassware úÿ Ê úÿ Ê œ 32L. Cement and Cement Products Ÿ. Ÿ» š º š º œ 33M. Basic Metal and Metal Products Ÿ.1 ¾í ú 34M.1 Iron and Steel Ÿ.2 š º š º œ 35M.2 Other Metal and Metal Products Ÿ ƒ ú Š 36N. All Engineering ƒ ¾Æ ï ½ Æ 37N.1 Electronics ƒ ú Š 38N.2 Other Engg

12 ¹«ÄˆÅ ¹ œ ½ Ä Annual Report ÇÅŸ Sr No 39 ½. Ô ½Š Industry š š FB Exposure í, í œ º ½Ä ¾ œ í œ ˆÅ 39O. Vehicles,vehicle parts and Transport Equipments Š ¾ - š š NFB Exposure ˆºÅ Total œ ú. ½Ÿ ¾ ú 40P. Gems and Jewellery Æ». Ÿ ĵ 41Q. Construction R. Infrastructure œ í 43R.1 Transport ½ ½ 44R.1.1 Railways õˆå œ í 45R.1.2 Roadways Ÿ 46R.1.3 Aviation œ í 47R.1.4 Waterways œ í 48R.1.5 Others Transport Ä 49R.2 Energy Ô º ½ - ï -- ïú» 50R.2.1Electricity gen-trans--distribution ƒ Ÿ Ê ½ ú ½ Ä 51R of which state electricity Board ½ 52R.2.2 Oil Š ¾ / ú ( ½ ½ œ ƒœ ƒ ) 53R.2.3 Gas/LNG (STORAGE AND PIPELINE R.2.4 OTHER ½ ˆÅŸ» ˆ½Å 55R.3 TELECOMMUNICATION R.4 OTHERS Ž 57R.4.1 WATER SANITATION Ÿ ˆÅ µ ˆÅ 58R.4.2 Social and Commercial Infrastructure R.4.3 Others Ô ½Š 60S Other Industries ž ú Ô ½Š (ˆºÅ ) All Industries «ŠÏŸ Residuary other advances ú.1 µ 61T.1 Education Loan ú.2 Ÿ ½ 62T.2 Aviation Sector ú.3 ˆÅ ŠÏŸ T.3 Other residuary Advances ˆºÅ µ ŠÏŸ Total Loans & Advances Ô ½Š Ê Ÿ Ê µ Æ œ ½{, ˆÅ Æ œ ½{ ÿˆå ˆ½Å ˆºÅ µ Æ œ ½{ ˆ½Å 5% ½ š ˆÅ í¾, ƒ œïˆå í¾, Credit exposure in industries where exposure is more than 5% of the total credit exposure of the bank (Consolidated) are as follows: ÇÅŸ. Sr no Ô ½Š Industry 1 ƒ üå ïæ Infrastructure 2 Ÿ» š º ¾ š º œ Basic Metal and Metal Products Æ œ ½{ ( ` ½ Ÿ ½ ) Exposure (Amt in ` Lakhs) ˆºÅ ½» Æ œ ½{ ˆÅ % % of Total Domestic Exposure % % 12

13 ½ III ¹œ III œïˆå úˆå µ Basel III Pillar III Disclosures ú. Ê ˆÅú «œ œ Æ ˆÅ ½«µ À ( ` ½ Ÿ ½ ) Ÿ š Time Bucket Ê ï ÿˆå ˆ½Å œ ˆÅ ú ½«Cash and Balance with Central Banks ÿˆå ˆ½Å œ ½«Ÿ Š œ» œ ½ Balances with Banks & Money at call & short notice ŠÏŸ Advances ½ Investments Fixed assets Other assets ˆºÅ Total (ƒä) œ ú ˆÅú (ˆºÅ ) ÇÅŸ ˆÅ ª½µ ú d. Residual maturity breakdown of assets: (Amt in ` Lakhs) 1 D 2-7 D 8-14 D D 31-2 M 2-3 M 3-6 M 6-12 M 1-3 Y 3-5 Y Over 5 Y TOTAL Sr. No. Asset Category (e) Amount of NPAs (Gross): ` Ÿ ½ (ˆºÅ ) Amount in ` Lakhs (Total) ( ûå) œ ú ( ˆÅ ) (f) NPAs (Gross): Ÿ ˆÅ Substandard Šš 1 Doubtful Šš 2 Doubtful Šš 3 Doubtful í Loss ( ú) ºÖ œ ú (g) Net NPA s ˆºÅ Total ( ) œ ú ºœ (h) NPA Ratios ˆÅ ŠÏŸ Ê Ÿ Ê ˆÅ œ ú Gross NPAs to gross advances 10.38% ŠÏŸ Ÿ Ê œ ú Net NPAs to net advances 4.68% ( ƒä) œ ú ( ˆÅ ) ˆÅ Ÿ» Ÿ Ê (i) Movement of NPA(Gross) œï ž ˆÅ ½«Opening balance ½ õ Additions ˆÅŸ ú Reductions Any other adjustments due to Exchange Diff Ÿ ½«Closing balance ( ½) «œï š (j) Specific Provision œï ž ˆÅ ½«Opening balance «Ä ˆ½Å ¾ ˆÅ Š œï š Provision made during the year ؽ (ˆÅ ¾ ú Ÿ ) Write off (Deduction &Exch Diff) š ˆÅ œï š ˆÅ œï ½ Any Other Adjustments 0.00 Ÿ ½«Closing balance ½ ½ ؽ ½ ½ úš ½ íú µ œ Ÿ ½ Ÿ ˆÅ Š íÿ» ú, ½ úš ½ íú µ œ Ÿ ½ Ÿ ˆÅú Š ƒä íÿ (ˆ½Å) Ÿ œï š (k) General Provision Write-offs that have been booked directly to income statement Recoveries that have been booked directly to income statement

14 14 ¹«ÄˆÅ ¹ œ ½ Ä Annual Report (ƒä) œ ú ˆÅú (ˆºÅ ) (e) Amount of NPAs (Gross): ( ) œï ž ˆÅ ½«Opening balance ( Ÿ ) š ˆ½Å ¾ ˆÅ Š œï š Provision made during the year Ø ˆ¼Å (ˆÅ ¾ ú ¹ ¹ Ÿ ) Write off (Deduction &Exch Diff) 0.00 š ˆÅ œï š ½ ˆÅ œï ½ Write-back of excess provisions Æ ½¹ Š œï š Closing Provision ĈŠ¹ ½ Non Performing Investments ĈŠ¹ ½ ˆÅú ¹ (l) Amount of Non-Performing Investments ĈŠ¹ ½ ½ í½ º Ÿ» Ý œï š Ê ˆÅú ¹ (m) Amount of provisions held for nonperforming investment ( ) ½ ½ œ Ÿ» Ý ˆ½Å ¹ œï š Ê ˆÅ Ÿ» Ÿ Ê (n) Movement of provisions for depreciation on investments œï ž ˆÅ ½«Opening balance š ˆ½Å ¾ ˆÅ Š œï š Provisions made during the period Ø ½ Write-off 9.98 š ˆÅ œï š ½ ˆÅ œï ½ Write-back of excess provisions ¹ Ÿ ½«Closing balance ( ½) œïÿ º Ô ½Š ˆÅ œ úä œïˆå (o) By major Industry or Counter party type (œ ú½) ½Ä 5 Ô ½Š ½ ˆÅú œ ú ¹ ½¹ ˆÅ Ÿ ½ Ÿ ½ œ š ž» š ½Æ ƒ ¹ Ÿ ½ NPA amount of top 5 industries Basic Metal & Metal products Infrastructure Textiles Mining and Quarrying Aviation Sectors ii) Specific provision of the above mentioned 5 industries ii) œ ½Æ œ Ô ½Š ½ ˆ½Å «œï š iii).» š Ÿ ½ «œï š iii) a- Specific provisions during the current period iii) ú.» š Ÿ ½ ؽ ½ Ÿ ½ iii) b- Write offs during the current «œï š ½ í «ž ¾Š ½ ˆÅ ½ Š ½ œï š ˆÅ œ ú ˆÅú «œï š (p) period Amt. of Gross NPAs provided separately by significant geographical areas including specific provisions Specific Provisions ˆÅ œ ú Gross NPA ½» Dom ½» º«Š Dom subsidiary «úï Intl «úï º«Š Intl subsidiary «œï š Specific Provisions ½» Dom ½» º«Š Dom subsidiary «úï Intl «úï º«Š Intl subsidiary

15 ½ III ¹œ III œïˆå úˆå µ Basel III Pillar III Disclosures ú ûå 4 À µ ½ Ÿ À Ÿ ˆÅúˆ¼Å œ Ö ˆ½Å í œ ½ ÄûÅ ½ ½ í½ º œïˆå úˆå µ Ÿ ˆÅúˆ¼Å œ Ö ˆ½Å í ÿˆå, ž ú Ä ÿˆå ºŸ ½ ž ú ƒä ú ƒä ( à µ Ÿ» ˆÅ ) ú ƒä, ÇÅ, ûå (ƒ ), ƒ ú, Ÿ ½ ( Ÿ ƒä ½ Š Ê ú ÁûÅ ƒ.) ½» Æ œ ½ ˆ½Å ψŠˆÄÅ ƒ œï.. ˆÅú ½» µ Æ œ ½ í½ º ½ Š ˆÅ ½ úˆå ˆÅ í¾. ½ ú µ Æ œ ½ ˆ½Å ÿˆå ½µ Ä œ», Ÿ» ú ûå ˆÅú ½ Š úˆå ˆÅ í¾. ÿˆå, ˆÅ œ ½Ä ½ Ä ˆÅ ½ œï «ˆ½Å (œ ú ƒä) š ˆÅ Ä Ê ˆÅ ½ ƒä ú ƒä ½ ½ Š ½ ½ ˆÅ ½ œï ½ í ˆÅ í¾ ¾ í  ˆÅíú ½ ú ½ Š œ š í¾, í  ½ Ÿ œ Ê ˆÅú Š µ ˆ½Å ƒ ½ Š Ê ˆÅ œ ½Š ˆÅ í¾. Ÿ ú œïÿ º ½ Ÿ Ÿ»í Ê Ÿ Ê Ÿ ˆÅúˆ¼Å œ Ö (Ÿ» ˆÅ ¾ Š ¾ Ÿ» ˆÅ ) ˆ½Å º ½ Ÿ ˆÅŸ ˆÅ ½ ˆ½Å œ ä, ½ Ÿ ˆÅ ˆÅ ½«ƒ œïˆå íÿ. DF 4. Credit Risk : Disclosures for Portfolios Subject to the Standardized Approach Under Standardized Approach the bank accepts rating of all RBI approved ECAI (External Credit Assessment Institution) namely CARE, CRISIL, Fitch (India), ICRA, SMERA (SME Rating Agency of India Ltd.) and Brickwork India Pvt Ltd for domestic credit exposures. For overseas credit exposures the bank accepts rating of Standard & Poor, Moody s and Fitch. The bank encourages Corporate and Public Sector Entity (PSE) borrowers to solicit credit ratings from ECAI and has used these ratings for calculating risk weighted assets wherever such ratings are available. The exposure amounts after risk mitigation subject to Standardized Approach (rated and unrated) in the following three major risk buckets are as under: ½ Ÿ ž ˆÅú ª½µ ú Category of Risk Weight ˆºÅ ( ` ½ Ÿ ½ ) TOTAL (Amt in ` Lakhs) 100% ½ Ÿ ž ½ ˆÅŸ Below 100% risk weight 32,339, % ½ Ÿ ž 100% risk weight 16,237, % ½ Ÿ ž ½ š ˆÅ More than 100 % risk weight 6,505, ú Ÿ ˆÅ ¾ ú CRM DEDUCTED 3,355, ˆºÅ Æ œ ½{ ( ûå ú+ ûå ú) Total Exposure ( FB+NFB) 58,438, ú ûå 5. ŠÏŸ ½ Ÿ» ˆÅ µ À Ÿ ˆÅúˆ¼Å œ Ö ˆÅ œïˆå úˆå µ. ÿˆå œ ½ š ˆÅ Ä Ê œ Æ œ ½ ( š š Š ¾ š š ) ˆÅ ½ ˆÅ ½ ˆ½Å ž œïˆå ˆÅú œï ž»  ( ½ ˆÅ œ æ ĈŠ³Åœ Ÿ Ê ž ú í ½ ˆÅ ú í¾) œï œ ˆÅ ½ íÿ. ÿˆå ½ ž ú { Ä ÿˆå ˆ½Å - ½Ä Ê ˆ½Å º ˆºÅŽ ŠÏŸ ½ Ÿ» ˆÅ ½ ˆ½Å ½ Ÿ Ê Æ œ ½ Ÿ Ê ˆÅŸ ú ˆÅú ú ˆÅ ½ œ í¾. ˆÅíú ˆÅ œ ½Ä ½ Š ú ŠÏŸ ½ Ÿ» ˆÅ ½ ˆ½Å ³Åœ Ÿ Ê œ š í¾, ŠÏŸ ½ Ÿ œ š Š ú ˆÅú úÿ ˆÅ Š ú Ê ˆÅ ½ ˆÅ í¾. Ÿ À Ÿ œïˆå ˆÅú œï ž»  (Ÿ º œï ž»  œ æ ĈŠœï ž» Â) ú ú íÿ. 1. ÁˆÅ, Ÿ ú ú ƒ ¾ ú Â. 2. ž» Ÿ, Š, œ Ÿ ú ú ¾ ú Â. 3. ºŸ ½» ú ˆ½Å º ½ 4. ÿˆå ˆÅú š ˆ¼Å Ÿ Â. 5. «ïú œïÿ µ œ, ˆÅ ˆÅ œ, ƒ ú œ Á Â, ˆ½Å Íú / ˆÅ Ê ú ˆÅú Š ƒä œï ž»  ƒ 6. µ œï ž» - ˆÅ œ ½ô ˆ½Å ǽŠ½ Š ½ ú ºŸ ½ 7. µ œï ž» - ½ Š íú ˆÅú Š ƒä ˆÅ œ ½ô ˆ½Å ˆÅ ÿˆå ú 8. Ÿ» º û Å Ê ˆÅú» Ê 9. Š ¾ š š º š Ê ˆ½Å œ ½ ½ ˆÅ ú Ÿ Ä. 10. µ Ä µ Ä ž»«µ ÿˆå ˆ½Å œ, ÿˆå ˆÅ ½ œïž œï ž» Ê ˆ½Å Ÿ» ˆÅ ˆ½Å š Ÿ Ê ½í ú œ š í¾. ÿˆå ½ œ ÇÅŸ 4 ½ 10 œ œï ž» Ê ˆÅ ½ µ ½ Ÿ í½ º Ÿ ˆÅúˆ¼Å œ Ö ½ -II ˆ½Å Š Ä µ ½ Ÿ ˆÅŸ ú ˆ½Å ˆÅ ˆÅ ˆ½Å ³Åœ Ÿ Ê í¾ DF 5. Credit risk mitigation: Disclosures for Standardized Approaches (a) Bank obtains various types of securities (which may also be termed as collaterals) to secure the exposures (Fund based as well as Non-Fund based) on its borrowers. Bank has adopted reduction of exposure in respect of certain credit risk mitigant, as per RBI guidelines. Wherever corporate guarantee is available as credit risk mitigant, the credit risk is transferred to the guarantor to the extent of guarantee available. Generally following types of securities (whether as primary securities or collateral securities) are taken: 1. Moveable assets like stocks, moveable machinery etc. 2. Immoveable assets like land, building, plant & machinery. 3. Shares as per approved list 4. Bank s own deposits 5. NSCs, KVPs, LIC policies, Securities issued by Central & State Governments etc. 6. Debt securities - rated by approved credit rating agency- with certain conditions 7. Debt securities- not rated- issued by a bank- with certain conditions 8. Units of Mutual funds 9. Cash Margin against Non-fund based facilities 10. Gold and Gold Jewelry. The bank has well-laid out policy on valuation of securities charged to the bank. The securities mentioned at Sr. No. 4 to 10 above are recognized as Credit Risk Mitigants for on-balance sheet netting under Basel-II standardized approach for credit risk, following Comprehensive Approach of Basel II norms. 15

16 ¹«ÄˆÅ ¹ œ ½ Ä Annual Report ú. ÿˆå ˆ½Å µ ½ Ÿ ˆ½Å Ÿ Ê Š ú Ê ˆ½Å œïÿ º œïˆå Ÿ º íÿà ¾ Æ ˆÅ ( Æ Š Š ) ˆÅ œ ½Ä ½ à / œ ú ƒä ˆ½Å Íú ˆÅ ˆÅ ƒä ú ú ú ú ú ú Ÿ ƒä ú Ÿ œ æ ĈŠœïÿ º À ÿˆå ˆÅú ˆÅú Ÿ - Ê ˆ½Å œ ½ ½ µ Ê Ÿ Ê ¾ ˆÅ ú œï ž» Ê, ƒä ú œ Á Ê ˆ½Å œ ½ ½ µ Ê Ÿ Ê œ š í ½ ½ íÿ Ä ½ ˆºÅ ú Ÿ ˆÅ œïÿ º ž Š í ½ ½ íÿ. ú Ÿ œï ž», Š ¾ š š º š Ê ¾ ½ Š Ê ¾ µ -œ Ê Ÿ Ê ž ú ú ú íÿ. ÿˆå ˆ½Å Æ œ ½ Ä ˆ½Å š Ÿ Ê ú Ÿ ˆ½Å ³Åœ Ÿ Ê œ š œ Š Ê ( ½ ˆ½Å º ) Ÿ Ê ˆ½Å Íú / ˆÅ, ƒä ú ú ú, ú ú ú ƒä, ˆÅ œ úä ˆÅú œ ½ ˆÅŸ ½ Ÿ ž ½ ÿˆå œï Ÿ ˆÅ ú (Ÿ º À œ ½ Ê, º«Š ú Ö ˆ Åœ ) íê (-) ½í ½ Š ú Š ƒä í¾, Ÿ íÿ. œï ½ˆÅ µ ½ Ÿ ž Š ˆ½Å ˆºÅ Æ œ ½, ½ ˆÅ œ î ú œ æ ĈŠˆÅ ˆÅ Š í¾, Ÿ Ä ˆÅ ½ Š ½ ˆ½Å œ ä Ÿ º í¾à The main types of guarantors against the credit risk of the bank are: Individuals (Personal guarantees) Corporate/PSEs Central Government State Government ECGC CGTMSE CRM collaterals available in Loans Against Bank s Own Deposit and Loans against Government Securities, LIC Policies constitute a major percentile of total CRM. CRM securities are also taken in non fund based facilities like Guarantees and Letters of Credit. Eligible guarantors (as per Basel-II) available as CRM in respect of Bank s exposures are mainly Central/ State Government, ECGC, CGTSI, Banks & Primary Dealers with a lower risk weight than the counter party AND other entities (mainly parent, subsidiary and affiliate companies) rated AA(-) or better. b. For each credit risk portfolio, total exposure that is covered by eligible financial collateral, after application of haircut is as under: ( ` ½ Ÿ ½ / Amt in ` Lakhs) µ ½ Ÿ œ ½ ÄûÅ ½ ½ Credit Risk Portfolio Total ½ ú Š ú Domestic Sovereign ½ ú Š ú Foreign Sovereigns 0.00 Ä ˆÅ ½ ˆÅú ƒˆå ƒ Public Sector Entities Ÿ ú ú, ú ƒ ƒ Ÿ ûå MDBS, BIS and IMF 0.00 ÿˆå ½ œ ½ Claims on Banks œï ¹Ÿ ˆÅ ú Ä Primary Dealers ˆÅ Áœ ½Ä ½ Corporate ½ ú ½ ž Š Reg Retail Portfolio ú œ î Residential Property µ ˆÅ ƒ ½ Commercial Real Estate Ä«ª½ µ Specified Categories Other Assets ˆöºÅ TOTAL

17 ½ III ¹œ III œïˆå úˆå µ Basel III Pillar III Disclosures ú. Æ œ ½ Ê ˆÅ µ, ½ ˆÅ Š Ê ˆÅ ˆÅ Š íÿ, (ž ú { Ä ÿˆå ºŸ ) c. Details of exposures that are covered by Guarantees (permitted by RBI) ( ` ½ Ÿ ½ / Amt in ` Lakhs) ³Åœ Ä ˆÅ ½ ˆÅú ƒˆå ƒ ÿˆå Ê œ ½ Ÿ ˆÅ ½ ž Š ½ ˆÅú œïˆ¼å Nature asset desc Public Sector Entity Claims on Banks ú ƒä ú ú ú DICGC ú ú ûå ú CGFT ƒä ú ú ú ECGC ú ú ûå ú Ÿ ƒä CGTMSE µ Š ú AA & A Gty ˆÅ Š ú State govt gty ˆ½Å Íú ˆÅ Š ú Central govt gty ÿˆå Š ú Gty by Banks ˆÅ Áœ ½Ä ½ Corporate Regulatory Retail Portfolio ú œ î µ ˆÅ ƒ ½ Ä«ª½ µ Residential Property Comml. Real Estate Specified Categories Other Assets ˆöºÅ TOTAL ú ûå 6.œÏ ž» úˆå µ. ÿˆå ˆÅú œï ž» ú í¾ ½ ½ Ä ºŸ ½ ˆÅ Š í¾. ú ˆ½Å º œï ž» ˆÅ ½ ½ ½ ž Š ˆÅú œïˆ¼å ½ µ ( µ, Á ½ µ, œ œ î Ê ˆ½Å œ ½ ½ ŠÏŸ, ¾ Æ ˆÅ µ Ͻ ˆÅ à Ä) ƒä š ž» œ ½ µ íÿ. ú. ˆÅ 31 Ÿ Ä, 2017 ˆÅ ½ ÿˆå ˆ½Å œ œ ú Ê ˆÅ ½ œï ž» ˆÅ ½ ˆÅ ˆÅ ½ƒÄ Ÿ Ÿ íú í¾. œï ž» úˆå µ ˆ½Å š Ÿ Ê œï š Æ œ ½ ˆÅ ˆÅ ½ƒÄ Ÿ Ÿ íú í¾. ÿˆå ú ½ Š œï ž» ˆÅ µ Æ œ ½ ˆÅú Ÿ º í¾à DF 6. Securitization: a. The Bank has a Securitization Policy duly approved by its Board. As per the Policy the nature of portfolio to be securitized are retail loans (housing loans, auto loans, and advance against properties, personal loans and credit cards) SSI and Infrastructure projects loans. b. The Bank does not have any case of its assets securitized as on 31 st March 2017 There is no case of retained exposure in respect of securitization Amount of securitization exposure purchased by the bank is as under: - ( ` ½ Ÿ ½ / Amt in ` Lakhs) à µ ½ Š ˆ½Å º ½ Ÿ ž ª½µ ú Risk weight category as per external credit rating íú Ÿ» Book value ÿ ˆ ÅŠ ºˆÅ ˆ½Å Š Ä ú Š ú Amt held under banking book ½ Ÿ ž % RW % ½ Ÿ Ÿ ½ Ÿ» Risk adjusted value ˆºÅ /Total» /NIL 17

18 ¹«ÄˆÅ ¹ œ ½ Ä Annual Report ú. ÿˆå ˆÅú «Ä ˆ½Å ¾ œ ú ˆÅ ú ž ú Ÿ ˆÅ ˆÅ œï ž» ˆÅ µ ˆÅ ½ ˆÅú ˆÅ ½ƒÄ ½ íú í¾. ú ûå 7. œ íú Ÿ Ê ½ Ÿ ÿˆå ½ Ÿ ˆÅ ½ ½ ú ž í Ÿ Ê Š úäˆ¼å ˆÅ í¾ ½ Ÿ» Ê Ÿ Ê œï ˆ»Å œ Ê ˆ½Å ˆÅ µ í ½ ˆÅ ú í¾. œ íú Ÿ Ê ½ Ÿ ˆ½Å í Ÿ ½ Ÿ ˆÅ œï š ˆÅ íÿà ½ Ÿ ˆÅ Ê ú ½ Ÿ Ÿ» ½ Ÿ ½ Ÿ œï š ˆ½Å ÿˆå ˆ½Å ½ ˆÅ Ÿ ½ ž úÿ š Ä ˆÅú íÿ ¾ ½ ˆÅ œ úÿ, í ½š ˆÅ úÿ, ¾ Ÿ» ½ Ÿ úÿ. ½ Ÿ úÿ, º ú Š Ê ½ œ ½ Ÿ Ê ˆÅ ½ ˆÅ ú íÿ. í ½š ˆÅ úÿ,» úˆ¼å ¾» úˆ¼å í Ê ˆÅ ½ š Ÿ Ê ½ ú í¾. ÿˆå ½ ž ú Ä ÿˆå ˆ½Å - ½Ä Ê ˆ½Å º ž Š œ ½ Ÿ ½ š œ» ú œïž ˆÅú Š µ ˆÅ ½ ˆ½Å ˆÅ Ÿ º œ Ö ¾ ˆÅú í¾ Ÿ ˆÅúˆ¼Å š œ Ö. ƒ œïˆå ˆÅ œ» ú œïž ˆÅ ½ ½ Ÿ ž Ê Ÿ Ê ³Åœ ˆÅ Š í¾. µ ½ Ÿ ˆ½Å ˆÅ ½ Ÿ ž Ê, ½ Ÿ ¾ œ ½ Ÿ ˆÅ ½ ½ -III ˆ½Å Š Ä ÿˆå ˆ½Å ú š Ä µ ˆÅ ½ ˆ½Å í Ÿ Ê í¾. ˆÅ 31 Ÿ Ä 2017 ˆÅ ½ ½ Ÿ (Ÿ ˆÅúˆ¼Å š œ Ö ˆ½Å º ) š ú œ» ú œïž ½ Ÿ ú Ÿ º íÿ. c. The bank does not presently plan to securities any of its standard assets during the year DF 7. Market risk in trading book: The Bank defines market risk as potential loss that the Bank may incur due to adverse developments in market prices. The following risks are managed under Market Risk in trading book: Interest Rate Risk Currency Risk Price risk To manage risk, Bank s Board has laid down various limits such as Aggregate Settlement limits, Stop loss limits and Value at Risk limits. The risk limits help to check the risks arising from open market positions. The stop loss limit takes in to account realized and unrealized losses. Bank has put in place a proper system for calculating capital charge on Market Risk on Trading Portfolio as per RBI Guidelines, viz., Standardized Duration Approach. The capital charge thus calculated is converted into Risk Weighted Assets. The aggregate Risk Weighted Assets for credit risk, market risk and operational risk are taken into consideration for calculating the Bank s CRAR under Basel-III Risk Weighted Assets and Capital Charge on Market Risk (as per Standardized Duration Approach) as on 31 st March 2017 are as under: 10.25% œ» Ÿ œ» ú œïž ( ½ Ÿ ½ ) Minimum Capital Charge at 10.25% (Amt in Lakhs) ½ Ÿ Interest Rate Risk ƒ Æ ú ½ Ÿ Equity Position Risk ½ ú Ÿ ºÍ ½ Ÿ Foreign Exchange Risk ˆºÅ œ» ú œïž Total Capital Charge ú ûå 8. œ ½ Ÿ ž ú Ä ÿˆå ˆ½Å - ½Ä Ê ˆ½Å º ÿˆå ½ œ ½ Ÿ í½ º œ» ú ˆÅ Ê ˆÅ ˆÅ ˆÅ ½ ˆ½Å š ž»» ˆÅ œ Ö œ ú í¾. Ÿ»» ˆÅ œ Ö ˆ½Å Š Ä Š 3 «½ô ˆÅú ¾ ˆÅ ½ ½ Ÿ ž ˆÅ ½ ˆÅ ½ š Ÿ Ê Š í¾. ú ûå 9. ÿ ˆ ÅŠ í Ê Ÿ Ê ½ Ÿ ( ƒä ú ú). ½ Ÿ ˆÅ ½ ½ œ Ö Ê ˆ½Å Ÿ š Ÿ ½ š Ä Ÿ ú ˆÅ í¾. (i) ½ Ÿ œ (œ œ ˆÅ ½«µ ) ( œ š )À ƒ œ Ö ˆ½Å í Ê Ÿ Ê œ Ä Ê ˆÅ ÿˆå ˆÅú ºÖ œ œ õ ½ ½ ˆÅ œïž ˆÅ ½«µ ˆÅ í¾. ½ Ÿ œ ˆÅ ½ ž œ Ê Ÿ Ê Ÿ º ½ «ˆÅ í¾. 1. ½ ½ Ÿ À Ê ¾ ½ Ê ˆ½Å 1% Ÿ œ Ä ˆÅ ºŸ Š Š í¾. 2. Ê ˆ½Å ª½µ ú- ž œ Ä Ê ˆÅ ºŸ Š Š í¾ ¾ ½ ½ Ê œ ž ú Š» í ½ ½ íÿ. 3. ½ í ˆÅ œï ¼ ˆ½Å º š ½ Ÿ Ÿ í ˆÅ œ ½ Ÿ ˆÅ ºŸ Š Š í¾. DF 8. Operational risk In line with RBI guidelines, Bank has adopted the Basic Indicator Approach to compute the capital requirements for Operational Risk. Under Basic Indicator Approach, average income of last 3 years is taken into consideration for arriving at Risk Weighted Assets. DF 9. Interest rate risk in the Banking Book (IRRBB) a. The interest rate risk is measured and monitored through two approaches: (i) Earning at Risk (Traditional Gap Analysis) (Short Term): The immediate impact of the changes in the interest rates on net interest income of the bank is analyzed under this approach. The Earning at Risk is analyzed under different scenarios: 1. Yield curve risk: A parallel shift of 1% is assumed for assets as well as liabilities. 2. Bucket wise different yield changes are assumed for the assets and the same are applied to the liabilities as well. 3. Basis risk and embedded option risk are assumed as per historical trend. 18

19 ½ III ¹œ III œïˆå úˆå µ Basel III Pillar III Disclosures (ii) ú. (i) ƒ Æ ú ˆÅ ĈŠŸ» ( š ½«µ ) ( ú Ä š ) í ˆÅ Ä Ê ½ Ê ˆÅú ½ š š ˆÅú Š µ ˆÅ ˆ½Å ˆÅ í¾ ˆÅ ƒ Æ ú ˆÅú ½ š š ˆÅ š Ä µ ˆÅ ˆ½Å. ƒ œ Ö ˆÅ ½ Ÿ Ê œ Ä í½ º ½ Ÿ Ê Ÿ É Ÿ í¾. ƒ Æ ú ˆ½Å ĈŠŸ» œ œïž ˆÅ ½ ¾ ž ú { Ä ÿˆå ½ ½ «ˆÅ í¾, Ÿ Ê œ 200 š ˆÅú í½ º ½ «ˆÅ í¾. š œ œ Æ ˆ½Å í Ö ˆÅ ½ ½ š š ˆÅú Š µ Ÿ Ê œï ºÆ ˆÅ í¾. ÿ ˆ ÅŠ í Ê Ÿ Ê ÿˆå ˆ½Å ½ Ÿ ˆÅ ½«µ ½ Ê ½» ½ ú œ Ê ˆ½Å ˆÅ í¾. ½» œ Ê ˆ½Å ƒ Æ ú ˆ½Å ĈŠŸ» ˆÅ ˆÅ Š ú Ÿ íú š œ ˆÅú ú í¾. Ä Ÿ ½ ¼ Ö / ˆÅŸ ú ½ Ÿ ½ œ Ä í½ º ĈŠŸ» Ÿ º íÿà ½ Ÿ œ Ä À Ê Ÿ Ê 200 ½ œ Áƒô à ˆÅú ¼ Ö ˆ½Å ˆÅ µ ˆÅ «Ä ˆÅ ˆÅú š ˆ½Å ˆÅ 31 Ÿ Ä 2017 ˆÅ ½ ˆÅú ½ ú ˆ½Å š Ÿ ½ Ê Ÿ Ê íº œ Ä ˆÅú ºÖ œ œïž ˆÅ ½ Ÿ µ ú Ÿ Ê Š í¾ À (ii) Economic Value of Equity (Duration Gap Analysis) (Long term) Modified duration of assets and liabilities is computed separately to finally arrive at the modified duration of equity. This approach assumes parallel shift in the yield curve for a given change in the yield. Impact on the Economic Value of Equity is also analyzed for a 200 bps rate shock as required by RBI. Market linked yields for respective maturities are used in the calculation of the Modified Duration. The analysis of bank s Interest Rate Risk in Banking Book (IRRBB) is done for both Domestic as well as Overseas Operations. The Economic value of equity for Domestic Operations is measured and monitored on a quarterly basis. b. The increase (decline) in earnings and economic value for change in interest rate shocks are as under:- (i) Earning at Risk: The following table sets forth the impact on the net interest income of changes in interest rates on interest sensitive positions as on 31 st March 2017, for a period of one year due to 200 basis point upward movement in the interest rate: ( ` ½ Ÿ ½ / Amt in ` Lakhs) Ÿ ºÍ Currency Ê Ÿ Ê 200 ½ œ Áƒô à ¼¹Ö 200 Basis point upward movement in the interest rates ƒä INR º ½ EUR ú úœ ú GBP º ú USD Rest ii) ĈŠŸ» À 31 Ÿ Ä 2017 ˆÅ ½ Ê ˆÅú ½ ú ˆ½Å š Ÿ Ê Ê Ÿ Ê íº œ Ä ˆÅ ƒ Æ ú ˆ½Å ĈŠŸ» œ œïž Ÿ µ ú Ÿ Ê Š í¾ (ii) Economic Value: The following table sets forth the impact on economic value of equity of changes in interest rates on interest sensitive positions at 31 st March 2017, ( ` ½ Ÿ ½ / Amt in ` Lakhs) Ÿ ºÍ Currency Ê Ÿ Ê 200 ½ œ Áƒô à ˆÅú ¼ Ö ˆ½Å ˆÅ µ ƒ Æ ú ˆ½Å Ÿ» Ÿ Ê œ Ä Change in Market Value of Equity due to 200 basis point upward movement in interest rate. ƒä INR º ½ EUR ú úœ ú GBP º ú USD / Rest Rest