Inauguration of 's Damuadhunga, Haldwani Branch

In office : Shri Mukesh Sharma, Chairman & CEO funs'kd eaMy Board of Directors

funs'kd eaMy Board of Directors

Shri Mukesh Sharma Chairman & CEO

Shri R. K. Arora Shri S. Gnanavel

Dr. V. P. S. Arora CA Neeraj Sharda CA Mradul Kumar Agarwal

Shri Atuil Kumar Aggarwala Dr. Mrs. K. K. Sharma Shri Rakesh Nema Executives

Vice Presidents

Shri Pramod Kumar Shri D. K. Kandpal Shri Pradeep Kumar Kala Chief Operating Officer Associate Vice Presidents

Shri S. N. Dubey Shri Narendra Sharma Shri B. S. Rachora Shri Ravindra Saxena Shri K.C. Tewari

Shri Deep Chandra Shri G. C. Pant Shri Raman Kumar Gupta Shri B. C. Chandola Shri Sanjay Lal Sah

Shri Amar Singh Shri M.C. Pant Shri U. C. Ruwali Shri V K Mehrotra Shri V K Agarwal

Shri Bhuvanesh Saxena Shri H C Pant Shri D K Lal Shri V K Khanna Shri B. K Joshi Performance Highlights 2015-16

 Total Business of the Bank increased from ` 7,941 crore as on 31st March, 2015 to ` 8,050 crore as on 31st March, 2016.

 Total Deposits stood at ` 5,311 crore against ` 5,344 crore last year.

 Gross Advances registered a growth of 5.46% over previous year to reach at ` 2,739 crore against ` 2,597 crore last year.

 Share of CASA to Total Deposits increased to 34.88% in comparison to last year’s 34.36%.

 C. D. Ratio of the Bank improved and stood at 51.57% in comparison to last year’s 48.59%.

 Bank’s Net owned Funds increased to ` 525.44 crore as on March 31st, 2016 as against ` 494.68 crore last year.

 Cost of Deposits decreased to 7.02% as on March 31st, 2016 as against 7.23% last year.

 Yield on Advances stood at 11.69% in comparison to last year’s 12.18%.

 Priority Sector Lending stood at 56.01% of Adjusted Net Bank Credit (ANBC) against RBI stipulation of minimum 40%.

 Operating Profit of the Bank stood at ` 83.48 crore as on 31st March, 2016 against ` 105.41 crore as on 31st March, 2015.

 Net Profit of the Bank remained at ` 46.97 crore as on 31st March, 2016, against ` 67.18 crore as on 31st March, 2015.

 Capital Adequacy Ratio stood at 15.75% as per Basel-II and 15.69% as per Basel-III norms as compared to last year’s 14.71% as per Basel-II and 14.86% as per Basel-III norms.

 Gross NPA to Gross Advances stood at 4.42% as on March 31st, 2016 as against 3.02% last year.

 Net NPA to Net Advances stood at 1.05% in comparison to last year’s 0.00%.

 Net Interest Margin (NIM) stood at 3.02% in comparison to last year’s 3.20%.

 Return on Average Assets stood at 0.80% in comparison to last year’s 1.26%.

 Business per Employee increased to ` 10.78 crore from ` 9.88 crore as compared to last year and Profit per Employee stood at ` 0.07 crore in comparison to last year’s ` 0.09 crore.

 Book Value per Share increased to ` 76.68 as on March 31st, 2016 as against ` 71.86 last year.

 Earning per Share (EPS) was ` 6.96 as on March 31st, 2016 as against ` 9.95 last year.

 All branches working on CBS platform with RTGS/NEFT and SMS Alert, Mobile Banking & Net Banking facilities. fo"k;&lwph Contents

funs'kd eaMy dh fjiksVZ 1 Report of the Board of Directors

cklsy III fiyj 3 izdVhdj.k 29 Basel III Pillar 3 Disclosures

31 ekpZ] 2016 dh fLFkfr ds vuqlkj rqyu&i= 61 Balance Sheet as on 31st March 2016

31 ekpZ] 2016 dks lekIr gq, o"kZ dk ykHk vkSj gkfu [kkrk 62 Profit & Loss Account for the Year Ended 31st March, 2016

rqyu&i= dh vuqlwfp;ka 63 Schedules to Balance Sheet

[kkrksa ij fVIif.k;ka 73 Notes on Accounts

Statement of Cash Flow for the Year Ended 31st March, 31 ekpZ] 2016 dks lekIr gq, o"kZ ds udnh izokg dk fooj.k 99 2016

Yks[kk ijh{kdksa dh fjiksVZ 100 Auditors’ Report

gekjh 'kk[kk;sa 107 Our Branch Network funs’kdksa dh fjiksVZ Directors’ Report

funs’kd eaMy dh 94oha fjiksVZ 94th Report of the Board of DIRECTORS fiz; va’k/kkjdksa] Dear Members, vkids funs’kdksa dks foÙkh; o"kZ 2015&16 ds ys[kk ijhf{kr rqyu Ik=] The Directors of your Bank feel immense pleasure in presenting ykHk&gkfu [kkrs ,oa udnh izokg fooj.kh rFkk O;olk; o ifjpkyu the 94th Annual Report of the Bank along with statement of fooj.kh ds lkFk cSad dh 94oha fjiksVZ izLrqr djrs gq, g"kZ gSA the Audited Balance Sheet, Profit & Loss Account, Cash-Flow Statement and the Report on Business and Operations for the Financial Year 2015-16. egRoiw.kZ izn’kZu ladsrd% KEY PERFORMANCE INDICATORS:

 cSad dk ldy O;olk; tks] 31 ekpZ] 2015 dks :- 7941 djksM+ Fkk]  Total Business of the Bank increased from ` 7,941 crore as 31 ekpZ] 2016 dks :- 8050 djksM+ jgkA on 31st March, 2015 to ` 8,050 crore as on 31st March, 2016.  cSad dh dqy tek jkf’k #-5311 djksM+ jgh] tks foxr o"kZ #-5344  Total Deposits stood at ` 5,311 crore against ` 5,344 crore djksM+ FkhA last year.  cSad ds ¼ldy½ vfxze] tks foxr o"kZ :- 2597 djksM+ Fks] 5-46  Gross Advances registered a growth of 5.46% over previous izfr’kr o`f) n’kkZrs gq,] bl o"kZ :- 2739 djksM+ jgsA year to reach at ` 2,739 crore against ` 2,597 crore last year.

 dqy tek jkf’k esa de ykxr okyh tek jkf’k (CASA) dk va’k tks  Share of CASA to Total Deposits increased to 34.88% in foxr o"kZ 34-36 izfr’kr Fkh] bl o"kZ c<+dj 34-88 izfr’kr jghA comparison to last year’s 34.36%.   _.k tek vuqikr foxr o"kZ ds 48-59 izfr’kr ls c<+dj bl o"kZ C. D. Ratio of the Bank improved and stood at 51.57% in 51-57 izfr’kr jgkA comparison to last year’s 48.59%.  cSad dh 'kq) futh fuf/k tks foxr o"kZ #-494-68 djksM+ Fkh] ls c<+dj  Bank’s Net owned Funds increased to ` 525.44 crore as on st 31 ekpZ] 2016 dks #- 525-44 djksM+ jghA March 31 , 2016 as against ` 494.68 crore last year.

st  tek ykxr foxr o"kZ ds 7-23 izfr’kr ls ?kVdj bl o"kZ 7-02  Cost of Deposits decreased to 7.02% as on March 31 , izfr’kr jghA 2016 as against 7.23% last year.  vfxzeksa ls vk; 11-69 izfr’kr jgh tksfd fiNys o"kZ 12-18 izfr’kr  Yield on Advances stood at 11.69% in comparison to last jgh FkhA year’s 12.18%.  lek;ksftr 'kq) cSad _.k dk 56-01 izfr’kr izkFkfedrk izkIr {ks= dks  Priority Sector Lending stood at 56.01% of Adjusted Net fn;k x;k tcfd blds fy, Hkk-fj-cSa- }kjk fu/kkZfjr U;wure ekud Bank Credit (ANBC) against RBI stipulation of minimum 40 izfr’kr gSA 40%.  ifjpkyu ykHk 31-03-2016 dks #-83-48 djksM+ jgk] tks 31-03-2015  Operating Profit of the Bank stood at` 83.48 crore as on 31st dks #-105-41 djksM+ FkkA March, 2016 against ` 105.41 crore as on 31st March, 2015.

st  'kq) ykHk] tks foxr o"kZ :- 67-18 djksM+ Fkk] 31 ekpZ] 2016 dks  Net Profit of the Bank remained at ` 46.97 crore as on 31 st #-46-97 djksM+ jgkA March, 2016, against ` 67.18 crore as on 31 March, 2015.

 iwath Ik;kZIrrk vuqikr csly&II ekudksa ds vuqlkj 15-75 izfr’kr  Capital Adequacy Ratio stood at 15.75% as per Basel-II and rFkk csly III ekudksa ds vuqlkj 15-69 izfr’kr jgk tksfd foxr o"kZ 15.69% as per Basel-III norms as compared to last year’s 14.71% as per Basel-II and 14.86% as per Basel-III norms. esa iwath Ik;kZIrrk vuqikr csly&II ekudksa ds vuqlkj 14-71 izfr’kr rFkk csly III ekudksa ds vuqlkj 14-86 izfr’kr jgh FkhA

 ldy vfxzeksa esa ldy xS-fu-vk- ¼,u-ih-,-½ tks foxr o"kZ 3-02  Gross NPA to Gross Advances stood at 4.42% as on March izfr’kr Fkh 31 ekpZ] 2016 dks 4-42 izfr’kr jghaA 31st, 2016 as against 3.02% last year.

 'kq) xS-fu-vk- ¼,u-ih-,-½ dk izfr’kr 1-05 izfr’kr jgk tks fd foxr  Net NPA to Net Advances stood at 1.05% in comparison to o"kZ esa 'kwU; izfr’kr FkhA last year’s 0.00%.  'kq) C;kt vUrj ¼,uvkbZ,e½ 3-02 izfr’kr jgk tks fd fiNys o"kZ  Net Interest Margin (NIM) stood at 3.02% in comparison to 3-20 izfr’kr FkkA last year’s 3.20%.

1 funs’kdksa dh fjiksVZ Directors’ Report

 vkSlr vkfLr;ksa ls izkfIr 0-80 izfr’kr jgh tks fd fiNys o"kZ 1-26  Return on Average Assets stood at 0.80% in comparison to izfr’kr jgh FkhA last year’s 1.26%.

 izfr deZpkjh O;olk; #- 9-88 djksM+ ls c<+dj #- 10-78 djksM+ jgk  Business per Employee increased to ` 10.78 crore from ` vkSj izfr deZpkjh ykHk #-0-07 djksM+ jgk tks fd fiNys o"kZ #-0-09 9.88 crore as compared to last year and Profit per Employee djksM+ jgk FkkA stood at ` 0.07 crore in comparison to last year’s ` 0.09 crore.

 izfr 'ks;j cgh ewY; tks foxr o"kZ #-71-86 Fkk 31 ekpZ] 2016 dks  Book Value per Share increased to ` 76.68 as on March c<+dj #-76-68 jgkA 31st, 2016 as against ` 71.86 last year.

st  izfr 'ks;j vk; ¼bZ-ih-,l-½] tks foxr o"kZ #-9-95 Fkh] 31 ekpZ] 2016  Earning per Share (EPS) was ` 6.96 as on March 31 , 2016 dks :- 6-96 jghA as against ` 9.95 last year.  cSad dh lHkh 'kk[kk,a vkj-Vh-th-,l-@,u-bZ-,Q-Vh] ,l-,e-,l- ,yVZ]  All branches working on CBS platform with RTGS/NEFT eksckby cSafdax vkSj uSV cSafdax lqfo/kkvksa ds lkFk lh-ch-,l- iVy ij and SMS Alert, Mobile Banking & Net Banking facilities. dk;Z dj jgh gsSaA oSf’od vkfFkZd ifjn`’; GLOBAL ECONOMIC SCENARIO oSf’od vkfFkZd xfrfof/k;ksa dh izxfr vUrjkZ"Vªh; O;kikj xfrfof/k;ksa esa The progress of global economic activity remained soft due eanh ds dkj.k uje cuh jghA detksj ekax o oLrqvksa dh dherksa esa ujeh to slump in international trade activities. On the back of Weak demand and soft commodity prices, the chances of deflation in ds dkj.k dqN mUur vFkZO;oLFkkvksa esa ladqpu dh laHkkouk j¶rkj idM+ some key Advanced Economies (AEs) have gained momentum. jgh gSA blds dkj.k nqfu;k ds dsUnzh; cSadksa dks viuh ekSfnzd uhfrvksa dks This has required the central bankers of the world to rewrite their ,d u, n`f"Vdks.k ls fy[kuk vko’;d gks x;k gSA detksj vkSj vfLFkj monetary policies with a new outlook. Weak and volatile market cktkj Hkkouk,a rFkk fu;fer #i ls iwath dk cfgZizokg mHkjrh cktkj sentiments and regular capital outflows are affecting the most to vFkZO;oLFkkvksa dks lcls vf/kd izHkkfor dj jgs gSaA the Emerging Market Economies (EMEs). dbZ vUrjkZ"Vªh; ,tsfUl;ksa us oSf’od vFkZO;oLFkk ds fy, vkSj detksjh ds Several international agencies have downgraded their financial tksf[ke esa o`f) ds dkj.k tks fd flrEcj] 2015 ls vkSj vf/kd detksj forecasts due to rise in downside risks for the global economy gks xbZ gSa] vius foÙkh; iwokZuqeku ?kVk fn;s gSaA ftalksa dh dherksa o O;kikj which has weakened further since September, 2015. Instability izokg esa vfLFkjrk ds lkFk iwath izokg esa c<+rs tksf[ke] fofue; njksa o in commodity prices and trade flows coupled with rising risks in capital flows, exchange rates and financial markets are the foÙkh; cktkjksa esa c<+rs tksf[ke vkfn ds dkj.k gSa ftUgksaus vkSj vf/kd factors which have added to the downside risks more recently. detksjh ds tksf[ke dks c<+k fn;k gSA lHkh vFkZO;oLFkkvksa esa fuos’k esa Lower investment across economies remains the main reason deh /kheh o`f) dk eq[; dkj.k jgk gSA for slow growth. vfLFkj oSf’od foÙkh; ifjfLFkfr;ksa ds dkj.k tuojh] 2016 esa foÙkh; In January, 2016 financial markets witnessed increased stress cktkjksa esa ncko esa o`f) ns[kh x;hA Hkfo’; esa phu dh vFkZO;oLFkk esa due to unstable global financial conditions. In future, weakening detksjh ,oa phu dh eqnzk ds voewY;u us eqnzk ds cfgokZg dks lek;ksftr of the Chinese economy and the depreciation of the Renminbi (RMB) set off capital outflows from China and triggered sell-offs dj fn;k rFkk mUur o mHkjrh vFkZO;oLFkkvksa esa 'ks;j o _.k ekdsZV eas in equity and debt markets across Advanced Economies (AEs) fcdokyh dks izsfjr dj fn;kA oSf’od foÙkh; cktkj cSadksa dh vkfLr;ksa and Emerging Market Economies (EMEs). The global financial dh xq.koÙkk o ykHkiznrk esa deh ls izHkkfor gSA are affected by the decline in the asset quality & profitability of .

Hkkjrh; vkfFkZd ifjn`’; INDIAN ECONOMIC ENVIRONMENT miHkksDrk ewY; lwpdkad vk/kkfjr eqnzkLQhfr 2016&17 esa 5 izfr’kr ds The CPI inflation is projected to moderate in 2016-17 to around 5 vklikl jgus dh laHkkouk gS tcfd okLrfod ldy ?kjsyw mRikn ds per cent while real GDP growth is projected to improve gradually 2016 esa dze’k% 7-6 izfr’kr rd lq/kkj dk vuqeku gSA oSf’od foÙkh; to 7.6 per cent in 2016-17. Heightened global financial market cktkj dh vfLFkjrk f’k[kj ij gS tks bu iwokZuqekuksa ds fy, eq[; pqukSrh volatility continues to pose major risks to these projections. cuh gqbZ gSA

2 funs’kdksa dh fjiksVZ Directors’ Report

Hkkjrh; fjtoZ cSad }kjk 2016 ds fy;s Lo;a ds fy, fu/kkZfjr eqnzkLQhfr The inflation target of 6 per cent for January 2016 set for itself by dk y{; tks rnuUrj ekWusVjh ikfylh QzseodZ ,xzhesaUV ¼,e-ih-,Q-,-½ ds the Reserve and subsequently adopted formally vUrxZr vaxhÑr fd;k x;k Fkk] izkIr dj fy;k x;kA eqnzkLQhfr dh nj under the Monetary Policy Framework Agreement (MPFA) was achieved. With inflation targets having been met consecutively ds y{; tuojh] 2015 ls yxkrkj izkIr gksuk yphys ßbU¶yslu VkjxsfVax since January 2015, it entrenches credibility in the commitment ÝseodZß ¼,Q-vkbZ-Vh-½ ds izfr izfrc)rk esa fo’oluh;rk iSnk djrk to the flexible inflation targeting (FIT) framework. Inflation gSA orZeku esa eqnzLQhfr nj ,Q-vkbZ-Vh- }kjk vaxhÑr 4 ± 2 izfr’kr is currently within the 4 ± 2 per cent band adopted for FIT. dh lhek ds vUnj gSA rn~uqlkj vxyk izeq[k y{; 2016&17 ds vUr Accordingly, the next milestone is set at 5 per cent for inflation rd 5 izfr’kr eqnzkLQhfr nj dk gSA foÙk ea=h us 2016&17 dk dsUnzh; by the end of 2016-17. In his speech presenting the Union ctV is’k djrs gq, vius vfHkHkk"k.k esa ?kks"k.kk dh fd Hkkjrh; fjtoZ Budget for 2016-17, the Union Finance Minister announced that the Act is being amended to provide cSad ,DV&ekWusVjh ikWfylh ÝseodZ ,oa ,d ekWusVjh ikWfylh desVh dks statutory basis for a monetary policy framework and a Monetary lkafofèkd vk/kkj iznku djus gsrq la’kksf/kr fd;k tk jgk gSA Policy Committee (MPC). uoEcj] 2015 ls dPps rsy dh dherksa esa egRoiw.kZ ujeh ,oa 2016&17 The significant softening of crude oil prices since November ds fy, dPps rsy dh uhph dherksa ds ladsr orZeku ekSfnzd uhfr ds 2015 together with the signals in futures prices suggest a lower vkèkkj ifjn`’; esa jgs gSaA nwljs 2016 ds fy, ckgjh ekax dh laHkkouk vc crude oil price for 2016-17 in this MPR’s baseline scenario. N% ekg iwoZ ifjdfYir ekax ls de gS ,oa detksjh dk tksf[ke fcxM+rs Secondly, prospects for external demand for 2016 are now weaker than envisaged six months back, with downside risks gq, lw{e vkfFkZd n`f"Vdks.k ,oa mHkjrh gqbZ cktkj vFkZO;oLFkkvksa ds fy, amplified by the worsening macroeconomic outlook and tighter rax foÙkh; ifjfLFkfr;ksa ls c<+ x;k gSA lexzr% oSf’od tksf[ke esa financial conditions for emerging market economies (EMEs). egRoiw.kZ o`f) gqbZ gSA Overall, global risks have increased significantly.

Hkkjrh; cSafdax ifjn`’; INDIAN BANKING SCENARIO fujUrj oSf’od lqLrh ds chp fofHkUu lajpukRed lq/kkjksa ds ykxw gksus] Among the continued global slowness, domestic growth lkekU; ekulwu dh mEehn] miHkksDrk ewY; lwpdkad eqnzLQhfr nj esa outlook remains positive for 2016-17 mainly on account of deh ,oa c<+rs gq, futh miHkksx ds pyrs 2016&17 ds fy;s ?kjsyw fodkl various structural reforms undertaken, expectations of a normal monsoon, easing of CPI inflation and rising private consumption. dk n`f"Vdks.k ldkjkRed gSA xzkeh.k ,oa lkekftd cqfu;knh

?kjsyw xfrfof/k;ka 2016&17 dh nwljh v/kZ&okf"kZd vof/k esa lqLr gqbZ gSaA Domestic activity slowed in the second half of 2015-16. Aggregate ldy ekax #ds gq, fLFkj fuos’k] detksj xzkeh.k miHkksx rFkk yxkrkj demand was restrained by stalling fixed investment, weak rural ekSfnzd lesdu ds dkj.k ckf/kr gqbZ gSA ldy vkiwfrZ Ñf"k ij vYi consumption and the ongoing fiscal consolidation. Aggregate supply moderated with the impact of deficient monsoons on ekulwu ds vlj ls uje jgh gSA ?kVrh gqbZ ykxrksa ls ykHkkfUor gksdj agriculture. Gross value added in industry benefited from the m|ksxksa ds ldy ewY; esa o`f) gqbZ gS tcfd lsok,a foLrkj dh fLFkfr decline in input costs while services remained in expansion esa jghaA mode. vuqlwfpr okf.kfT;d cSadksa ds O;olk; esa deh vkbZ tSlk fd tek&jkf’k;ksa The growth in business of scheduled commercial banks (SCBs) o vfxze nksuksa dh o`f) nj esa deh ls ifjyf{kr gksrk gSA ldy xSj slowed as was reflected in a further decline in both deposit and fu"ikfnr vkfLr;ksa ¼th,uih,½ dk vuqikr ekpZ o flrEcj] 2015 ds chp credit growth. The gross non-performing advances (GNPAs) ratio increased between March and September 2015, whereas, c<+k gS tcfd iquZxfBr LVsUMMZ vfxzeksa dk vuqikr leku vof/k esa de the restructured standard advances ratio declined during the gqvkA vuqlwfpr okf.kfT;d cSadksa esa iwath ds tksf[ke /kkfjr vkfLr;ksa ls same period. The capital to risk-weighted assets ratio (CRAR) vuqikr esa ¼lhvkjvkj½ 2015&16 dh igyh N%ekgh esa dqN fxjkoV vkbZ of SCBs registered some deterioration during the first half of gSA lkoZtfud {ks= ds cSadksa dk lhvkj,vkj vuqikr cSad lewgksa esa iqu% 2015-16. Public sector banks (PSBs) continued to record the lcls de jgkA lowest CRAR among the bank groups. cSad vfxzeksa dh o`f) esa deh] fo’ks"kdj mu {ks=ksa esa tgka vkfLr xq.koÙkk The decline in bank credit growth, especially in sectors where ij ncko vis{kkÑr vf/kd gS vU; dkjdksa ds vykok cSadksa ds vius asset quality stress is comparatively higher, is indicative, among other factors, of banks’ current focus on ‘cleaning up’ of their rqyui= dks LoPN cukus ds Åij dsfUnzr gksus dk ladsr gSA bl ifjizs{; balance sheets. In view of this, developing the corporate bond

3 funs’kdksa dh fjiksVZ Directors’ Report esa dkWjiksjsV ckW.M cktkj dks fodflr djuk vFkZO;oLFkk ds nh?kZdkfyd market has assumed added urgency given the need of the foÙkiks"k.k dh vko’;drk ds pyrs vfr vko’;d gks x;k gSA economy for long term financing. cSadksa] fo’ks"kdj lkoZtfud {ks= ds cSadksa ds izn’kZu esa lq/kkj esa lcls cM+h The pressure on asset quality continues to be the biggest ck/kk vkfLr xq.koÙkk ij ncko gS] blls lh/ks&lh/ks fucVuk ;g lqfuf’pr impediment in improving the performance of banks, especially the public sector banks (PSBs), which needs to be tackled head- djus ds fy, vko’;d gS fd vfxzeksa dh o`f) nj vuqdwyre Lrj ls on to ensure that bank credit growth is not allowed to settle at a de Lrj ij u cuh jg ldsA level lower than what is considered optimum. fu;ked uqL[kksa ¼csly&III iwath vko’;drkvksa ds ykxw gksus ls½ ds dkj.k Apart from additional capital requirements on account of vfrfjDr iwath vko’;drkvksa ds vykok cSadksa dks vkfLr xq.koÙkk ruko regulatory prescriptions (with the phasing in of Basel III capital ds vlj ds dkj.k orZeku fLFkfr ls ikj ikus ds fy;s Hkh vfrfjDr iwath requirements), banks need further capital cushion to tide over dh vko’;drk gSA the current situation due to the impact of asset quality stress. cSad ds dk;Zdyki BANK’S PERFORMANCE mijksDr ifjn`’; ds vUrxZr fofo/k ekudksa esa gekjs cSad ds dk;Zdyki Under the above scenario the Bank’s performance on various fuEukuqlkj jgs & parameters was as listed below: foÙkh; miyfC/k;ka FINANCIAL HIGHLIGHTS ¼#- djksM+ esa½ (` in Cr.) 31-03-16 31-03-15 Ø- S. as on As on fooj.k dh fLFkfr dh fLFkfr Particulars la- ds vuqlkj ds vuqlkj No. 31.03.2016 31.03.2015

1. dqy C;kt vk; 536.12 507.55 1. Total Interest Income 536.12 507.55

d- vfxzeksa ls C;kt ds #Ik esa vk; 306.27 288.25 (a) Interest Income from Advances 306.27 288.25

[k- fuos’kksa ls C;kt ds #Ik esa vk; 101.48 95.22 (b) Interest Income from Investments 101.48 95.22

Xk- vU; 128.37 124.08 (c) Others 128.37 124.08

2. xSj C;kt vk; 28.94 49.20 2. Non Interest Income 28.94 49.20

dqqy vk;&d ¼1$2½ 565.06 556.75 TOTAL INCOME – A (1+2) 565.06 556.75

3. dqy C;kt tks fn;k x;k 359.28 337.70 3. Total Interest Expended 359.28 337.70

d- Tkek ij fn;k x;k C;kt 359.18 337.60 (a) Interest Expended on Deposits 359.18 337.60

[k- vU; C;kt O;; 0.10 0.10 (b) Other Interest Expenses 0.10 0.10

4. LVkQ ykxr 83.31 77.68 4. Staff Cost 83.31 77.68

5. vU; ifjpkyu ykxr 38.99 35.96 5. Other Operating Costs 38.99 35.96

Lkdy [kpsZ&[k ¼3$4$5½ 481.58 451.34 Total Expenses – B (3+4+5) 481.58 451.34

ifjpkyu ykHk ¼d&[k½ 83.48 105.41 Operating Profit (A-B) 83.48 105.41

izko/kku vkSj vkdfLedrk,a&x 36.51 38.23 Provision & Contingencies – C 36.51 38.23

'kq) ykHk ¼d&[k&x½ 46.97 67.18 Net Profit (A-B-C) 46.97 67.18

4 funs’kdksa dh fjiksVZ Directors’ Report foÙkh; vuqikr FINANCIAL RATIOS

Ø- 31-03-16 dh 31-03-15 dh S. As on As on fooj.k Particulars la- fLFkfr ds vuqlkj fLFkfr ds vuqlkj No. 31.03.2016 31.03.2015

1. tek dh vkSlr ykxr (%) 7.02 7.23 1. Average Cost of Deposits (%) 7.02 7.23

2. vfxzeksa ls vkSlr izkfIr (%) 11.69 12.18 2. Average Yield on Advances (%) 11.69 12.18

3. 'kq) C;kt ekftZu (%) 3.02 3.20 3. Net Interest Margin (%) 3.02 3.20

4. vkfLr;ksa ls vkSlr izkfIr(%) 0.80 1.26 4. Average Return on Assets (%) 0.80 1.26

vkSlr dk;Z’khy fuf/k esa Staff Expenses to Avg. Working 5. 1.42 1.46 5. 1.42 1.46 LVkQ dk [kpZ (%) Fund (%) vkSlr dk;Z’khy fuf/k ij Operating Profit to Avg. Working 6. 1.42 1.98 6. 1.42 1.98 Funds (%) ifjpkyu ykHk (%) 7. izfr 'ks;j vk; ¼#0 esa½ 6.96 9.95 7. EPS (in `) 6.96 9.95 8. izfr 'ks;j cgh ewY; ¼:0 esa½ 76.68 71.86 8. Book Value per share (in `) 76.68 71.86 iwath dh Ik;kZIrrk CAPITAL ADEQUACY csly II ds ekudksa ds vUrxZr cSad dh iwath dh i;kZIrrk tks foxr o"kZ Bank’s Capital Adequacy under Basel-II norms stood 15.75% 14-71 izfr’kr Fkh] bl o"kZ 15-75 izfr’kr jghA 31-03-2016 dks ldy against 14.71% last year. Out of the Total Capital Adequacy, Tier-I capital was 15.24% and Tier-II was 0.51% as on 31.03.2016. iwath dh i;kZIrrk esa Vh;j&I iwath 15-24 izfr’kr rFkk Vh;j&II iwath 0-51 izfr’kr jghA csly III ekudksa ds vUrxZr 31-03-2016 dks cSad dh iwath dh i;kZIrrk The Capital Adequacy under Basel-III norms stood at 15.69% 15-69 izfr’kr jgh ftlesa fV;j&I iwath 15-25 izfr’kr rFkk fV;j&II out of which, Tier I Capital was 15.25% & Tier II was 0.44% as iwath 0-44 izfr’kr gSA on 31.03.2016.

31-03-2016 dks cSad dh 'kq) futh fuf/k ~:- 525-44 djksM+ gS tcfd 31- The Net Owned Funds of the Bank is ` 525.44 crore as on 03-2015 dks ;g :- 494-68 djksM+ FkhA bl izdkj blesa foxr foÙkh; o"kZ 31.03.2016 against ` 494.68 crore as on 31.03.2015 representing ls 6-22 izfr’kr dh o`f) gqbZA a strengthening of capital by 6.22% over previous financial year. tek laxzg.k DEPOSIT MOBILISATION cSad dh tek jkf’k;ka tks 31-03-15 dks :- 5344 djksM+ Fkha] 31-03-2016 dks Deposits of the Bank stood at ` 5,311 crore as on 31.03.2016 0-63 izfr’kr dh deh ds lkFk #- 5311 djksM+ jghaA 31-03-2016 dks dqy in comparison to ` 5,344 crore as on 31.03.2015 showing deceleration of 0.63%. The share of low cost deposit was tek jkf’k;ksa esa de ykxr okyh tek jkf’k;ka 34-88 izfr’kr jgha tcfd 34.88% as on 31.03.2016 as against 34.36% in previous year. foxr o"kZ ;s 34-36 izfr’kr FkhaA tek jkf’k;ksa dh ykxr 31-03-2015 dh The Cost of Deposit decreased from 7.23% as on 31.03.2015 to 7-23 izfr’kr ls ?kVdj 31-03-2016 dks 7-02 izfr’kr jghA 7.02% as on 31.03.2016.

dqy tek jkf'k@Total Deposit

5 funs’kdksa dh fjiksVZ Directors’ Report

de ykxr okyh tek jkf'k@CASA [Low Cost Deposit)

tekjkf'k;ksa dk feJ.k@ Deposit Mixture 31 ekpZ 2016 dks 31 ekpZ 2015 dks as on 31st March 2016 as on 31st March 2015

vfxze vfHkfu;kstu CREDIT DEPLOYMENT 31-03-2016 dks cSad dk ldy _.k c<+dj #- 2739 djksM+ gks x;k The Gross Advances of the Bank increased to ` 2,739 crore as tcfd 31-03-2015 dks ;g :- 2597 djksM+ FkkA bl izdkj blesa foxr on 31.03.2016 from ` 2,597 crore on 31.03.2015, showing a rise o"kZ ls 5-46 izfr’kr dh o`f) gqbZA of 5.46% over previous year.

ldy vfxze@Gross Advances

6 funs’kdksa dh fjiksVZ Directors’ Report izkFkfedrk izkIr {ks= dks _.k iwoZ dh rjg gh Hkk0fj0cSa0 }kjk fuèkkZfjr The Priority Sector Advances of the Bank continued to be higher 40 izfr’kr dh U;wure lhek ls vf/kd jgkA 31-03-2016 dks cSad dk than regulatory stipulation of RBI @40%. The Gross Priority izkFkfedrk izkIr {ks= dks ldy vfxze :- 1471 djksM+ jgk tcfd 31-03- Sector Advances of the Bank stood at ` 1,471 crore as on 2015 dks ;g :- 1523 djksM+ FkkA bl izdkj izkFkfedrk izkIr {ks= dks 31.03.2016 against ` 1,523 crore as on 31.03.2015 representing _.k cSad ds lek;ksftr 'kq) _.k dk 56-01 izfr’kr jgkA 56.01% of Adjusted Net Bank Credit (ANBC).

izkFkfedrk izkIr {ks=ksa dks _.k@Priority Sector Advances

cSad dk [kqnjk _.k tks 31-03-2015 dks :- 755 djksM+ Fkk] 31 ekpZ] 2016 Retail Advances of the Bank stood at ` 730 crore as on March dks 3-31 izfr’kr dh eanh vafdr djrs gq, #- 730 djksM+ jgkA 31st, 2016 against ` 755 crore as on 31st March, 2015, registering a deceleration of 3.31%. vfxzeksa ls vkSlr izkfIr] tks foxr o"kZ 12-18 izfr’kr Fkh] 31-03-2016 dks The Yield on Advances stood at 11.69% as on 31.03.2016 11-69 izfr’kr jghA against 12.18% as on 31.03.2015. u;s iz;kl NEW INITIATIVES vkt dh oSf’od ifjfLFkfr;ksa esa u dsoy lQyrkiwoZd cSafdax ifjpkyu Extensive use of information technology has become a necessity ds fy, vfirq xzkgdksa dh c<+rh gqbZ ekaxksa dh larqf"V ds fy, Hkh lwpuk not only to carry out successful banking operations but also izkS|kSfxdh dk O;kid iz;ksx vko’;d gks x;k gSA fiNys nks n’kdksa esa to satisfy growing customer demands in present globalized rduhdh izxfr us cSafdax dks iquHkkZf"kr fd;k gSA xzkgdksa dks vkSj vfèkd environment. In last two decades, the technology has redefined dq’kyrk ls vkSj izHkkoiw.kZ

 dqN fpfUgr dsUnzksa ij ,Vh,e LFkkfir dj xzkgdksa dks ,Vh,e lqfoèkk  Providing of ATM services to customers by installation of iznku djukA ATMs at selected centers.

 vius orZeku ,oa lEHkkfor xzkgdksa dks MsfcV dkMZ tkjh djus dk  Issuance of Debit Card to our existing as well as prospective dk;Z izxfr ij gSA customers is in progress.

 viuh Lo;a dh lhVh,l Dyh;fjax izkjEHk djukA  Process for starting our own CTS clearing.

 lh-ch-,l- flLVe esa ,u-ih-,- eksM~;wy dk dk;kZUo;u izxfr  Implementation of NPA module in CBS (FinCraft) is under ij gSA process.

7 funs’kdksa dh fjiksVZ Directors’ Report

 dksj cSafdax lkSY;wlal lkQ~Vos;j dks fQudzkQ~V ¼uSfyVks flLVEl  Shift to Finacle (Infosys) platform in CBS from FinCraft fy-½ ls fQusdy ¼bUQksfll½ IysVQkeZ esa ys tkukA (Nelito Systems Ltd.) platform fodkl DEVELOPMENTS  {ks=h; dk;kZy;ksa o iz/kku dk;kZy; ds chp ohfM;ks dkUQzsfUlax dk  Successfully established video conferencing facility be- lQyrkiwoZd lapkyuA tween Regional Offices and Head Office.

 cSad dh vpy vkfLr;ksa dh fuxjkuh ds fy, ,lsV eSustesaUV ekM~;wy  Successfully implemented Assets Management module to dk lQyrkiwoZd izkjEHkA track Fixed Assets of the Bank and made Investment mod- ule live in CBS (FinCraft).

 ,u,lh,p IysVQkeZ ij bZlh,l MsfcV VªkUtsD’ku dk lQyrkiwoZd  Successfully implemented ECS Debit Transaction through izkjEHkA NACH platform. vkfLr xq.koÙkk izcU/ku ASSET QUALITY MANAGEMENT xS-fu-vk- ls fuiVus dh fn’kk esa vf/klfdz; joS;k viuk;k rFkk olwyh ds The Bank has a proactive approach towards tackling NPAs and iz;klksa ij /;ku dsfUnzr fd;kA vkfLr;ksa dk oxhZdj.k fuEukuqlkj gS%& focused recovery efforts. Asset classifications of the Bank are detailed below: vkfLr oxhZdj.k ASSET CLASSIFICATION ¼#0 djksM+ esa½ (` in Cr.) 31-03-16 dh fLFkfr 31-03-15 dh fLFkfr As on 31.03.2016 As on 31.03.2015 ds vuqlkj ds vuqlkj

jkf’k izfr'kr jkf’k izfr'kr Amount % Amount %

ekud 2,617.58 95.58% 2,518.37 96.98% Standard 2,617.58 95.58% 2,518.37 96.98%

voekud 55.92 2.04% 23.23 0.89% Sub-Standard 55.92 2.04% 23.23 0.89% lafnX/k 44.74 1.63% 37.03 1.43% Doubtful 44.74 1.63% 37.03 1.43% gkfudj vkfLr 20.39 0.75% 18.28 0.70% Loss assets 20.39 0.75% 18.28 0.70%

ldy vfxze 2,738.63 100.00% 2,596.91 100.00% Gross Advances 2,738.63 100.00% 2,596.91 100.00%

vkfLr;ksa dk oxhZdj.k @ Assets Classification 31 ekpZ 2016 dks 31 ekpZ 2015 dks as on 31st March 2016 as on 31st March 2015

31-03-2016 dks cSad dh ldy xSj fu"iknd vkfLr;ka #- 121-04 djksM+ Gross NPA of the Bank increased to ` 121.04 crore as on jgha tcfd 31-03-15 dks ;s :- 78-54 djksM+ FkhaA pkyw foÙkh; o"kZ ds 31.03.2016 from ` 78.54 crore as on 31.03.2015. The Bank nkSjku cSad iqjkus xS-fu-vk- [kkrksa ds lkFk gky gh esa xS-fu-vk- esa lfEefyr endeavors to recover and upgrade recently added NPA accounts u;s [kkrksa dks lq/kkjus vkSj mUgsa mPprj Lrj ij ykus ds iz;kl dj jgk along with old NPA accounts during the current financial year. gSA cSad ds 'kq) ,u-ih-,- dk 'kq) vfxze ls vuqikr 1-05 izfr’kr jgkA Net NPA to Net Advances stood at 1.05% level.

8 funs’kdksa dh fjiksVZ Directors’ Report fuos’k ifjpkyu INVESTMENT OPERATIONS fofHkUu izfrHkwfr;ksa esa cSad ds dqy fuos’k tks 31-3-2015 dks #- 1378-15 Total Investments of the Bank in various securities stood at ` djksM+ Fk]s 31 ekpZ] 2016 dks #- 1381-41 djksM+ jgsA dqy fuos’k dh 35-46 1,381.41 crore as on 31.03.2016 against ` 1,378.15 crore on izfr’kr izfrHkwfr;ka ÞfcØh gsrq miyC/k Js.khß ,oa ÞVsªfMax ds fy, vk;ksftr 31.03.2015. Out of total investments, 35.46% securities have been “marked to market” in “Available for Sale (AFS) category Js.khß esa Þcktkj ewY; ij fpfUgrß gSa rFkk 'ks"k 64-54 izfr’kr izfrHkwfr;ka & Held for Trading (HFT)” and rest 64.54% is classified under ÞifjiDork vof/k rd j[ks x, fuos’kß Js.kh esa oxhZÑr gSaA “Held to Maturity (HTM)” category. fuos’kksa esa ysu&nsu] izkfIr;ksa esa lokZf/kd o`f) djus rFkk ewY; gzkl ls The investment transactions were taken with a view to maximize lafoHkkx dks lqjf{kr j[kus ds lkFk&lkFk i;kZIr rjyrk cuk;s j[kus ds yield, protect portfolio against depreciation and simultaneously fy, fd;k x;kA ensuring sufficient liquidity. ykHkiznrk PROFITABILITY cSad dk ldy ykHk tks 31-03-2015 dks #- 105-41 djksM+ Fkk] 31-03- Operating Profit of the Bank stood at ` 83.48 crore as on 31st st 2016 dks 20-80 izfr’kr deh n’kkZrs gq, #- 83-48 djksM+ jgkA vuqekfur March, 2016 against ` 105.41 crore as on 31 March, 2015 showing a decrease of 20.80%. After making all provisions ns;rkvksa ds fy, lHkh izko/kku djus ds ckn 30-08 izfr’kr dh deh for estimated liabilities, the Net Profit of the Bank stood at ` n’kkZrs gq, cSad dk 'kq) ykHk 31-03-2016 dks #-46-97 djksM+ jgk tcfd 46.97 crore as on 31st March, 2016, against ` 67.18 crore as 31-03-2015 dks ;g #- 67-18 djksM+ FkkA izfr 'kk[kk O;olk; 31-03-2015 on 31st March, 2015, showing a decrease of 30.08%. Business ds #- 65-63 djksM+ dh rqyuk esa 31-03-16 dks #- 65-44 djksM+ jgkA ?kkVk per branch remained at ` 65.44 crore as on 31.03.2016 in nsus okyh mu 16 'kk[kkvksa esa ls tks 31-03-2015 ls igys [kksyh xbZ Fkh comparison to last year’s ` 65.63 crore as on 31.03.2015. Out 2 'kk[kk,a ykHk vftZr djus yxh gSaA rFkkfi 31-03-2016 dks gkfu nsus of 16 loss making branches opened before 31.03.2015, 02 branches turned profitable. However the total number of loss okyh 'kk[kkvksa dh la[;k 18 jgh ftuesa ls 2 'kk[kk,a pkyw foÙkh; o"kZ ds making branches as on 31.03.2016 stood at 18 which included nkSjku [kksyh xbaZA 02 branches opened during the current financial year. vkarfjd fu;U=.k O;oLFkk INTERNAL CONTROL SYSTEM cSad dk fujh{k.k izHkkx mfpr ykxr ls cSad ds dk;Z dykiksa ij Inspection division of the Bank is promoting effective control on izHkkoiw.kZ fu;a=.k dks c<+kus ds dk;Z dj jgk gSA csgrj i;Zos{k.k vkSj the affairs of the Bank at a reasonable cost. The ‘Risk Based fu;a=.k ds fy, o"kZ ds nkSjku Þtksf[ke vk/kkfjr vkarfjd ys[kk ijh{kkß Internal Audit’ system has been suitably adopted during the O;oLFkk dks ;qfDrlaxr #i ls viuk;k x;k gSA fujh{k.k izHkkx funs’kd year to have better supervision and control. Audit committee of eaMy dh vads{k.k lfefr dks Hkh vkSj vf/kd izHkkoiw.kZ

9 funs’kdksa dh fjiksVZ Directors’ Report foÙkh; lekos’ku ;kstuk ¼2000 ls de vkcknh okys xkao½% gekjs Financial Inclusion Plan (villages having population below cSad dks mÙkjk[k.M esa 387 xkao rFkk mÙkj izns’k esa 27 ,sls xkao ftudh 2,000): Our Bank has been allotted 387 villages in vkcknh 2000 ls de gS] cSafdax lsok,a miyC/k djkus ds fy, vkoafVr State and 27 villages in for providing Banking fd;s x;s gSaA Services in the villages having population below 2,000. foÙkh; lek;kstu ;kstuk ds vUrxZr yxHkx 200 xkoksa esa cSafdax lqfo/kk,a Under the FI Plan, till date 40 BCAs have been engaged for iznku djus gsrq vkt rd 40 ch-lh-,- fu;qDr fd;s x;s gSaA providing Banking services in approx. 200 villages. ch-lh- ,tsaUVksa }kjk [kksys x;s dqy ch,lchMh, [kkrksa dh la[;k 31-03- Total numbers of BSBDA accounts opened through BC agents 2016 dks 10271 gS ftuesa #-2-63 yk[k tek jkf’k gSA are 10,271 as on 31.03.2016 with credit balance of ` 2.63 lakh. Hkkjrh; fjtoZ cSad ds funsZ’kkuqlkj 2016&19 foÙkh; lekos’ku ;kstuk On the direction of Reserve Bank of India (RBI) FI Plan for 2016- rS;kj dh tk jgh gSA ge ,Q-vkbZ- Iyku 2016&19 esa vkoafVr fd;s x, 19 is under preparation. We are committed to provide banking lHkh xkaoksa esa cSafdax lsok,a nsus ds fy;s dfVc) gSaA services in all the allotted villages during the FI Plan 2016-19. iz/kkuea=h tu /ku ;kstuk ¼ih,etsMhokbZ½ PRADHAN MANTRI JAN DHAN YOJNA (PMJDY) foLr`r foÙkh; lekos’ku ;kstuk ds fdz;kUo;u ds fy, lEekuuh; For the implementation of Comprehensive Financial Inclusion izèkkuea=h Jh ujsUnz eksnh us 28&08&2014 dks iz/kkuea=h tu /ku ;kstuk Plan, Hon’able Prime Minister Mr. Narendra Modi launched Pradhan Mantri Jan Dhan Yojna (PMJDY) on 28.08.2014. Under dk Jhx.ks’k fd;kA bl ;kstuk ds vUrxZr cSadksa dks funsZ’k fn;k x;k fd the scheme banks were directed to open Basic Savings Bank mu lHkh ?kjksa ds] ftudk fdlh cSad esa [kkrk ugha gS] dss lk/kkj.k cpr Deposit accounts of all the households, who do not have bank [kkrs [kksys tk,aA izR;sd [kkrk /kkjd dks ,d #is ,-Vh-,e-@MsfcV dkMZ] accounts. Every account holder is to be given a RuPay ATM/ ftlesa #-1-00 yk[k dk ,DlhMsUVy chek doj miyC/k gS fn;k tkuk gSA Debit card with in built accidental cover of `1.00 lac. fHkUu&fHkUu jkT;ksa ds ,l-,y-ch-lh- us cSadksa dks fo’ks"k dSEi yxkdj iz-e- SLBCs of different states have allotted SSAs/villages/wards t-/k-;ks- ds vUrxZr ch-,l-ch-Mh- [kkrs [kksyus ds fy, ,l-,l-,-@xkao@ to banks for opening BSBD accounts under PMJDY. We have okMZ vkoafVr fd;s gSaA geus 31&03&2016 rd 46844 ,ssls [kkrs [kksys gSa opened 46,844 accounts and mobilized deposit of ` 7.46 crore ftuesa #-7-46 djksM+ dk tek laxzg.k fd;kA till 31.03.2016. vVy isa’ku ;kstuk ATAL PENSION YOJNA (APY) ;g ;kstuk gekjs cSad dh lHkh 'kk[kkvksa ds ljdkj ds lkekftd ykHk This scheme was launched in our bank in the month of December ;kstuk dks leFkZu ds #i esa fnlEcj] 2015 esa izkjEHk dh x;hA 31 ekpZ] 2015 in all our branches to support government’s social benefits st 2016 rd geus 142 yksxksa dks lwphc) dj fy;k FkkA scheme. Till 31 March, 2016 we have enrolled 142 persons. iz/kkuea=h lqj{kk chek ;kstuk ¼ih,e,lchokbZ½ PRADHAN MANTRI SURAKSHA BIMA YOJNA rFkk izèkkuea=h thou T;ksfr chek ;kstuk (PMSBY) & PRADHAN MANTRI JEEVAN JYOTI BIMA ¼ih,etstschokbZ½ YOJNA (PMJJBY) ;s ;kstuk,a gekjs cSad esa Hkkjr ljdkj ds lHkh yksxksa dk chek djkus dh These schemes were launched in our bank from the month of eqfge ds vUrxZr ebZ] 2015 esa izkjEHk dh xbZaZA 31 ekpZ]2016 rd geus May 2015 to support government of India’s initiative of insuring st ih,e,lchokbZ esa 21497 yksxksa dks rFkk ih,etstschokbZ esa 8060 yksxksa all the people. Till 31 March, 2016 we have enrolled 21,497 persons in PMSBY and 8,060 persons in PMJJBY. dks lwphc) fd;k FkkA 'kk[kk tky ,oa 'kk[kk foLrkj dk;ZØe BRANCH NETWORK & EXPANSION PROGRAMME cSad us o"kZ ds nkSjku &2& ubZ 'kk[kk,a [kksyha ftuls 31-03-2016 dks The Bank has opened -02- new branches during the year bldh dqy 'kk[kkvksa dh la[;k 123 gks xbZA cSad dk foÙkh; o"kZ 2016&17 increasing its tally to 123 as on 31.03.2016. The Bank is proposing to open 15 more branches in F.Y. 2016-17. esa 15 vkSj 'kk[kk,a [kksyus dk izLrko gSA

10 funs’kdksa dh fjiksVZ Directors’ Report cSad dh orZeku 'kk[kkvksa dk {ks=okj oxhZdj.k fuEukuqlkj gS Area wise Position of Branches orZeku 'kk[kkvksa dk {ks=okj oxhZdj.k Area-wise Branches 'kk[kkvksa dh la[;k No. of Branches Ø- la- {ks= S. No. Area 2016 2015 2016 2015 1 egkuxjh; 24 24 1 Metro 24 24 2 'kgjh 29 29 2 Urban 29 29 3 v)Z’kgjh 40 39 3 Semi-Urban 40 39 4 xzkeh.k 30 29 4 Rural 30 29 dqy 123 121 Total 123 121

31 ekpZ 2015 dks 'kk[kkvksa dk {ks=okj foLrkj Area-wise Spread of the Branches at the year ended on 31st March, 2016

orZeku esa cSad dh 'kk[kk;sa ns’k ds 5 jkT;ksa esa gSaA budk jkT; okj fooj.k The Bank is having its presence in -05- states of the country. uhps fn;k x;k gS & The State wise position of branches is given below: 'kk[kkvksa dh jkT; okj fLFkfr STATE WISE POSITION OF BRANCHES

jkT;okj 'kk[kk,a State-wise Branches 'kk[kkvksa dh la[;k S. No. of Branches Ø- la- jkT; Area 2016 2015 No. 2016 2015 1 mÙkjk[k.M 69 68 1 Uttarakhand 69 68 2 mÙkj izns'k 31 30 2 Uttar Pradesh 31 30 3 fnYyh 16 16 3 16 16 4 gfj;k.kk 5 5 4 5 5 5 jktLFkku 2 2 5 2 2 dqy 123 121 Total 123 121

'kk[kkvksa dk jkT;okj foLrkj State-wise Spread of the Branches at the year ended on 31st March, 2016

11 funs’kdksa dh fjiksVZ Directors’ Report ekuo lalk/ku dh fLFkfr HUMAN RESOURCE POSITION cSad ds dqy deZpkfj;ksa dh laoxZ okj la[;k bl izdkj jgh % The cadre wise strength of Bank staff was as under:

Ø-la- laoxZ 2016 2015 S. No. Cadre 2016 2015 1 dk;Zikyd 22 18 1 Executive 22 18 2 vf/kdkjh 326 343 2 Officers 326 343 3 fyfid 276 288 3 Clerks 276 288 4 v/khuLFk deZpkjh 92 102 4 Sub-Ordinate Staff 92 102 5 va’kdkfyd v/khuLFk deZpkjh 82 84 5 Part Time Sub-Staff 82 84 dqy ;ksx 798 835 TOTAL 798 835

31 ekpZ] 2016 dks ekuo lalk/ku dh fLFkfr Human Resource Position as on 31st March, 2016

deZpkfj;ksa dh mijksDr fLFkfr ds vfrfjDr 31&03&2016 dks cSad esa 50 In addition to the above listed position of the Human Resources izcU/ku izf’k{kq ¼eSusteSUV Vª~suht½ FksA in the Bank, there were -50- Management Trainee in the Bank as on 31.03.2016. fofHkUu laoxksZa@xzsM esa vf/kdkfj;ksa@LVkQ lnL;ksa dh vko’;drk dh In order to cater the need of officers/staff members in various iwfrZ ds fy, vkSj deZpkfj;ksa dks inksUufr dk volj nsus ds fy;s nl cadres/grades and extend career progression opportunities vèkhuLFk deZpkfj;ksa dks fyfid laoxZ esa] ukS fyfid deZpkfj;ksa dks to the employee, -Ten- Subordinate Staff were promoted vfèkdkjh laoxZ&dfu"B izcU/ku xzsM@Ldsy& I esa] 21 dfu"B izcU/ku to Clerical Cadre, -Nine- Clerks were promoted to JMGS-I, xzsM@Ldsy& I ls e/; izcU/ku xzsM@Ldsy& II esa] 10 e/; izcU/ku xzsM@ -Twenty One- Officers were promoted from JMGS-I to MMGS- Ldsy&II ls e/; izcU/ku xzsM@Ldsy&III esa] 7 e/; izcU/ku xzsM@Ldsy& II, -Ten- Officers were promoted from MMGS-II to MMGS-III and III ls ofj"B izcU/ku xzsM@Ldsy& IV esa inksUur fd;s x;sA pkj izcU/ku -Seven- Officers were promoted in MMGS-III to SMGS-IV. Four izf’k{kq dfu"B izca/ku xzsM@Ldsy I esa lek;ksftr fd;s x;sA cSad us 30 Management Trainees were absorbed in JMGS-I. The Bank has fyfidksa dh HkrhZ dh izfdz;k izkjEHk dj nh gSA initiated process of recruitment of -30- clerks. fofHkUu oxZ ds deZpkfj;ksa dks fuCldke] uks,Mk] ,u-vkbZ-ch-,e-] iq.ks Various categories of Staff were deputed to and attended vkSj ch-vkbZ-vkj-Mh-] y[kuÅ rFkk cM+kSnk vdkneh esa izf’k{k.k dk;Zdze training programmes at NIBSCOM-Noida, NIBM-Pune, BIRD- Lucknow and Baroda Academy. They also participated in esa lgHkkfxrk ds fy;s Hkstk x;kA mUgksaus Hkkjrh; fjtoZ cSad rFkk jkT; specific workshops/seminars arranged by Reserve Bank of Lrjh; cSadlZ lfefr vkfn }kjk vk;ksftr fof’k"V odZ’kki@lsfeukj esa India/State Level Bankers Committee etc. Besides, Training Hkh lgHkkfxrk dhA mijksDr ds vykok cSad ds vius LVkQ izf’k{k.k dsUnzz] Programmes were also carried out at Bank’s own Training gY}kuh esa izf’k{k.k dk;Zdze Hkh pyk, x,A Centre, at Haldwani. lehf{kr o"kZ ds nkSjku 303 LVkQ lnL;] cSad }kjk rkRdkfyd fpUruh; During the year under review -303- staff members attended fo"k;ksa ij vk;ksftr fofHkUu izf’k{k.k dk;Zdzeksa] lsfeukjksa@dk;Z’kkykvksa various training programmes, seminars/workshops on the esa lfEefyr gq,A subject of immediate concern to the Bank.

12 funs’kdksa dh fjiksVZ Directors’ Report dkjiksjsV xojuSUl CORPORATE GOVERNANCE cSad dkjiksjsV xojuSUl ds egRo ls ifjfpr gSA og u dsoy oS/kkfud Bank recognizes the importance of corporate governance vis{kkvksa dk vuqikyu dj jgk gS vfirq vius lHkh fgrykHkkfFkZ;ksa ftlesa at all levels. The Bank is not only complying with statutory mlds va’k/kkjd] xzkgd] ljdkj vkSj o`gn #i esa turk lfEefyr gSa ds requirements in this regard but endeavoring to serve the best loksZÙke fgrksa ds fy, lqn`<+ dkjiksjsV xoZuSUl uhfr dk vuqikyu dj to all its stakeholders including Shareholders, Customers, jgk gSA dkjiksjsV xoZusUl ij cSad dk n’kZu ljdkj] Hkk-fj-cSa- vkSj vU; Government and Public at large. The Bank’s philosophy on fgr ykHkkfFkZ;ksa dks loksZPp Lrj dh ikjnf’kZrk ds lkFk lkQ lqFkjk vkSj Corporate Governance is to stick to highest level of transparency, ,dne lgh izdVhdj.k djus dk gS] tSlk fd lEcfU/kr dkuwu ds rgr all fair and accurate disclosures to the Government & Regulatory Authorities and other Stakeholders, as required under relevant mPp Lrj dh O;kolkf;d uSfrdrk dks cuk;s j[kus ds fy;s visf{kr laws, to maintain a high level of business ethics to maximize gS rkfd va’k/kkjdksa ds ewY;ksa dks loksZPp Lrj rd c<+k;k tk lds vkSj shareholders’ value and to protect their interest. The Bank has muds fgrksa dhs lqj{kk dh tk ldsA cSad us funs’kd e.My esa lfEefyr formulated a Code of Conduct for its Directors on the Board funs’kdksa] vius ofj"B izcU/ku ftlesa os O;fDr tks blds LFkkbZ izcU/ku and its Senior Management including personnel forming Core ny ds lnL; gSa] lfEefyr gSa vkSj ifjpkyudrkZ 'kh"kZ vf/kdkfj;ksa ds Management Team and functional Heads of the Bank. fy, ,d vkpkj lafgrk rS;kj dh gSA vPNs dksjiksjsV xojuSUl ds Hkkx ds #i esa gj o"kZ foÙkh; o"kZ dh 'kq#vkr As a part of good Corporate Governance, a status report is also ij bldh fLFkfr fjiksVZ Hkh funs’kd e.My ds lEeq[k leh{kk ds fy, placed before the Board each year for Board’s review at the j[kh tkrh gSA commencement of Financial Year. dkjiksjsV xojuSUl ds vUrxZr ^xzhu bfuf’k,fVo* GREEN INITIATIVE UNDER CORPORATE GOVERNANCE ^^xzhu bfuf’k,fVo** dh 'kq#vkr dEiuh ekeyksa ds ea=ky; }kjk “GREEN INITIATIVE” was introduced by The Ministry of dkjiksjsV xoZuSUl ds ,d Hkkx ds #i esa dh xbZ Fkh rkfd bySDVª~ksfud Corporate Affairs as a part of Corporate Governance, in order ek/;e }kjk dkxt jfgr vuqikyu dk dk;Z fd;k tk ldsA blls to promote paperless compliances through electronic mode. This is to facilitate early communication of the documents nLrkost tYnh Hksts vkSj izkIr fd, tk ldrs gSa vkSj Mkd ds vkus&tkus and evade loss of statutory documents in postal transit. In this esa oS/kkfud nLrkostksa ds [kksus dk Hk; ugha jgrkA bl lEcU/k esa geus regard, we have initiated to send e-mail to the shareholders cSad ds mu va’k/kkjdksa dks bZ&esy Hkstuk 'kq# fd;k gS ftUgksaus viuk who have registered their e-mail addresses with the Bank and bZ&esy irk cSad esa vafdr djk;k gS rFkk cSad dh oSclkbV ls fyad }kjk facilitating them with a link on the Bank’s website, providing free mUgsa cSad ds izi=ksa tSls& okf"kZd lk/kkj.k lHkk dk uksfVl] cSad dh okf"kZd access to documents of the Bank like Notice of Annual General fjiksVZ] ftlesa vU; ds vykok funs’kdksa dh fjiksVZ vkSj ys[kk ijh{kdksa dh Meeting, Annual Report of the Bank which, inter-alia, includes Directors’ Report and Auditors’ Report etc. in order to make fjiksVZ vkfn lfEefyr gSa] miyC/k djk;k gS rkfd cSad ds va’k/kkjdksa ds it more convenient to the shareholders of the Bank to access fy, oS/kkfud izi=ksa dh izkfIr vf/kd lqfo/kktud gks ldsA Statutory documents. Ekwy izcU/kdh; O;fDr KEY MANAGERIAL PERSONNEL dEiuh vf/kfu;e 2013 ds [k.M 203 esa fn;s x;s izko/kku ds vuqlkj Jh In terms of provisions contained in Section 203 of The Companies eqds’k 'kekZ] v/;{k ,oa eq[; dk;Zdkjh vf/kdkjh] Jh iznhi dqekj dkyk] Act 2013, on the date Mr. Mukesh Sharma (Chairman and Chief phQ vkijsfVax vkQhlj ¼lh-vks-vks-½ rFkk phQ QkbZuSfU’k;y vkQhlj Executive Officer), Mr. Pradeep Kumar Kala (Chief Financial ¼lh-,Q-vks-½ vkSj Jh foosd lkg] dEiuh lfpo ewy izcU/kdh; O;fDr dh Officer - CFO) and Mr. Vivek Sah (Company Secretary) are the ifjf/k esa vkrs gSaA Key Managerial Personnel of the Bank. Hkkjrh; fjtoZ cSad us cSad dks v/;{k vkSj izcU/k funs’kd@eq[; dk;Zdkjh Reserve Bank of India has exempted the Bank from ‘Ganguly vf/kdkjh ds inksa dks vyx&vyx djus lEcU/kh Þxkaxqyh desVhß dh Committee’ recommendations pertaining to separating post of flQkfj’kksa ls NwV iznku dh gSA Chairman and Managing Director/Chief Executive officer. funs’kd eaMy BOARD OF DIRECTORS funs’kd e.My dh lajpuk% funs’kd e.My dk xBu dEiuh vfèkfu;e] Composition of Board: The Constitution of the Board is in 2013] cSaddkjh fofu;eu vf/kfu;e 1949 ds lEcfU/kr izko/kkuksa] Hkk-fj-cSa- conformity with relevant provisions of The Companies Act, 2013, ds funsZ’kksa vkSj dkjiksjsV xoZuSUl dh vis{kkvksa ds vuq#i gqvk gSA tSlk The Banking Regulation Act, 1949, RBI directives and Corporate fd cSaddkjh fofu;eu vf/kfu;e 1949 esa fofufnZ"V gS funs’kd e.My Governance requirements. The Board members are persons of ds lnL; lEekuuh;] dq’ky] vuqHkoh ,oa fofHkUu {ks=ksa tSls cSafdax] foÙk] repute, skill having experience & knowledge in various sectors dkuwu] Ñf"k {ks=] ,dkmUVSUlh vkSj vU; {ks=ksa dk Kku j[krs gSaA such as Banking, finance, accountancy, law, agriculture & other areas as specified under The Banking Regulation Act, 1949.

13 funs’kdksa dh fjiksVZ Directors’ Report cksMZ dh ys[kk ijh{kk lfefr dh lajpuk COMPOSITION OF AUDIT COMMITTEE OF BOARD dEiuh vf/kfu;e 2013 ds [k.M 177 ds vuqlkj cSad dh ys[kk ijh{kk In terms of section 177 of The Companies Act, 2013, the lfefr ¼fjiksfVZx dh fnukad dks½ dh lajpuk fuEukuqlkj gS%& composition of the Audit committee of the Board [on the date of reporting] is as follows:

1- Jh uhjt 'kkjnk v/;{k 1. Shri Neeraj Sharda Chairman 2- Jh ,l- Kkuosy lnL; 2. Shri. S. Gnanavel Member 3- Jh vkj-ds-vjksjk lnL; 3. Shri R. K. Arora Member 4- Jh vrqy dqekj vxzoky lnL; 4. Shri Atul Kumar Aggarwala Member 5- Jh jkds’k usek lnL; 5. Shri Rakesh Nema Member 6- phQ vkijsfVax vkQhlj la;kstd 6. Chief Operating Officer Convener dEiuh vf/kfu;e 2013 ds izko/kkuksa ftUgsa cSaddkjh fofu;eu vf/kfu;e Various other Sub-Committees of the Board of the Bank are: 1949 vkSj le;≤ ij tkjh Hkkjrh; fjtoZ cSad ds fn’kk&funsZ’kksa Management Committee of Board, Management Committee of ds lkFk i<+k tk;s ds vuqlkj cSad ds funs’kd e.My dh fofHkUu vU; Board (ALM & RISK Management), Nomination & Remuneration Committee of Board, Customer Service Committee of Board, lfefr;ka gSa% eSusteSaUV desVh vkWQ cksMZ] eSusteSaUV desVh vkWQ cksMZ ¼,- Stakeholders’ Relationship Committee of Board, IT Strategy ,y-,e- ,.M fjLd eSusteSaUV½] uksfeus’ku ,.M jsewujs’ku desVh vkWQ Committee of Board, Corporate Social Responsibility Committee cksMZ] dLVej lfoZl desVh vkWQ cksMZ] LVsdgksYMlZ fjys’kuf’ki desVh of Board, Wilful Defaulters Committee and Large Value of Frauds vkWQ cksMZ] vkbZ-Vh-LV~sªVsth desVh vkWQ cksMZ dkjiksjsV lks’ky fjLikfUl- Committee of Board in accordance with the relevant provisions fofyVh desVh vkWQ cksMZ] foyQqy fMQkYVj desVh vkWQ cksMZ vkSj yktZ of The Companies Act, 2013 read with Banking Regulation Act, osSY;w QzkSM~l desVh vkWQ cksMZA 1949 and Reserve Bank of India Guidelines, issued from time to time. foÙkh; o"kZ 2015&16 ds nkSjku cksMZ dh fofHkUu milfefr;ksa dh vusd During the Financial Year 2015-16, total -08-meetings of the cSBdksa ds vfrfjDr dEiuh vf/kfu;e 2013 esa fn;s x;s lEcfU/kr izko/ Board of Directors were held in compliance of relevant provisions kkuksa ds vuq#i funs’kd e.My dh dqy &8& cSBd gqbZaA of Companies Act, 2013, in addition to several meetings of various Sub-Committees of Board. Jh lqjs’k dqekj xqIrk] v/;{k ,oa eq[; dk;Zdkjh vf/kdkjh us cSad vkQ cM+kSnk esa muds izR;korZu ds dkj.k 15 ekpZ] 2016 dks funs’kd eaMy ls The composition of Board has changed during the period under R;kxi= fn;k gS ,oa Jh eqds’k 'kekZ us fnukad 15-03-2016 ls v/;{k ,oa report. Mr. Suresh Kumar Gupta Chairman & C.E.O of the Bank eq[; dk;Zdkjh vf/kdkjh dk inHkkj xzg.k dj fy;k gSA lehf{kr vof/k resigned on March 15, 2016 due to repatriation to ds nkSjku funs’kd e.My dh lajpuk esa ifjorZu gqvk gSA Jh ,l-th-jko] and Mr. Mukesh Sharma assumed the charge of Chairman & Jh v’kksd tk;loky vkSj Jh iksVykiYyh ujflEgk jko] funs’kdksa us C.E.O of the Bank w.e.f March 15, 2016. During Financial year funs’kd e.My ls R;kx i= fn;k gSA 2015-16, Mr. S.G. Rao, Mr. Ashok Jaiswal and Mr. Potalapally Narsimha Rao, Directors resigned from the Board. cSad] Jh lqjs’k dqekj xqIrk] Jh ih-ujflEgk jko] Jh ,l-th-jko vkSj Jh v’kksd tk;loky] ftuds dk;Zdky esa cSad us izxfr dh ubZ ÅWpkbZ;ka The Board gratefully acknowledges and places on record the gkfly dha] ds izfr muds }kjk cSad ds funs’kdksa ds #Ik esa fn;s x;s valuable contribution and support of Mr. Suresh Kumar Gupta, Mr. S. G. Rao, Mr. Ashok Jaiswal and Mr. Potalapally Narsimha cgqewY; ;ksxnku ,oa lg;ksx ds fy;s ÑrKrkiwoZd vkHkkj O;Dr djrk gS Rao, under whose stewardship the Bank attained new heights rFkk bls fjdkMZ esa vafdr djrk gSA of progress. dEiuh vf/kfu;e 2013 dh /kkjk 134¼5½ ds vUrxZr lwpuk &funs’kdksa ds mÙkjnkf;Ro dk oDrO; & INFORMATION U/S 134 (5) OF THE COMPANIES ACT, 2013 - DIRECTORS’ RESPONSIBILITY STATEMENT funs’kd eaMy ,rn~}kjk ;g fooj.k nsrk gS fd& The Board of Directors hereby state that:  ;g O;Dr fd;k tkrk gS fd okf"kZd [kkrksa dh rS;kjh ds fy;s ykxw  ekudksa dk ikyu fd;k x;k gS rkfd cSad ds dk;Zdykiksa dh lgh It is stated that for preparation of annual accounts, the applicable accounting standards have been followed so as vkSj okLrfod fLFkfr izLrqr dh tk ldsA to give a true and fair view of the state of affairs of the Bank.

14 funs’kdksa dh fjiksVZ Directors’ Report

 iqu%] ;g O;Dr fd;k tkrk gS fd vkids cSad us mu ys[kk uhfr;ksa dks  It is further stated that your Bank has opted such accounting pquk gS rFkk mu ij vey fd;k gS tks gekjs fu.kZ; vkSj vkdyu ds policies and applied them consistently, which in Bank’s vuqlkj mfpr ,oa foosdlEer gSa vkSj foŸkh; o"kZ ds var esa cSad ds judgments and estimates are reasonable and prudent and give a true and fair view of the state of affairs of the Bank at dk;Z&dykiksa rFkk mDr vof/k esa cSad ds ykHk dh lgh ,oa okLrfod the end of the financial year and of the profit of the Bank for fLFkfr dks n'kkZrh gSaA the said period.

 iqu%] funs'kdksa us [kkrksa ds vfHkys[kksa dh ns[k&js[k ds fy, dEiuh  Further, the Directors had taken proper and adequate care vf/kfu;e 2013 ds izko/kkuksa ds vuqlkj mfpr ,oa Ik;kZIr lko/kkuh for the maintenance of accounts and records in accordance cjrh gS rkfd cSad dh vkfLr;ka lqjf{kr jgsa rFkk /kks[kk/kM+h vkSj vU; with the provisions of The Companies Act, 2013 for vfu;ferrkvksa dh igpku ,oa jksdFkke gks ldsA safeguarding the assets of the Bank and for prevention and detection of fraud and other irregularities.

 iqu% cSad us lHkh iz;ksT; fu;eksa ds izko/kkuksa dk vuqikyu lqfuf'pr  Further, the Bank has devised proper systems to ensure djus ds fy;s mfpr O;oLFkk viuk;h gSA ;g O;oLFkk Ik;kZIr gS rFkk compliance with the provisions of all applicable laws and izHkkoh

 iqu% ;g O;Dr fd;k tkrk gS fd funs'kdksa us okf"kZd [kkrksa dks pkyw dkjksckj  It is further stated that Directors had prepared the annual vk/kkj ij rS;kj fd;k gSA accounts on a going concern basis. Okkf"kZd fooj.kh ANNUAL RETURN funs’kd e.My ,rn~}kjk ;g iqf"V djrk gS fd cSad dh 93oha okf"kZd vke The Board of Directors hereby confirms that Annual Return of lHkk ls lEcfU/kr okf"kZd fooj.kh fu/kkZfjr le; lhek ds vUrxZr ,oa the Bank relating to Bank’s 93rd Annual General Meeting has dEiuh vf/kfu;e 2013 ds izko/kkuksa ds vuqlkj jftLVkªj vkQ dEiuht] been filed in prescribed format within stipulated time andin dkuiqj ¼m-iz-½ ds dk;kZy; esa tek dj nh xbZ gSA 94oha okf"kZd vke lHkk conformity with provisions of The Companies Act 2013 with the office of Registrar of Companies Kanpur (UP). Annual Return of ls lEcfU/kr okf"kZd fooj.kh cSad dh vke lHkk ds lEikfnr gksus ds ckn the Bank relating to Bank’s 94th Annual General Meeting shall be tek dj nh tk,xhA filed after conclusion of General Meeting of the Bank. ykHkak’k DIVIDEND vkids funs’kd 31 ekpZ] 2016 dks lekIr gq, o"kZ ds fy, 20 izfr’kr Your Directors recommend final Dividend %@20 for the year ds ykHkka’k dh laLrqfr djrs gSaA ;fn bldh vuqefr feyrh gS rks o"kZ ended 31st March, 2016. Total Dividend outgo for the year 2015- 2015&16 ds ykHkka’k ij #-2-70 djksM+ ds ykHkka’k dj lfgr #- 16-20 16, if approved, would be ` 16.20 crore including Dividend djksM+ O;; gksxkA laLrqr ykHkka’k esa ls 12 izfr’kr dh nj ls vUrfje Tax for ` 2.70 crore. Out of recommended Dividend an Interim Dividend @12%, amounting ` 9.72 crore including Dividend ykHkka’k tks fd 1-62 djksM+ ds ykHkka’k dj lfgr #-9-72 djksM+ dk fn- Tax for ` 1.62 crore, has already been paid to the Members in lEcj] 2015 esa lnL;ksa dks Hkqxrku fd;k tk pqdk gSA vc vo’ks"k ykHkka’k December, 2015. Now residual Dividend @8% shall be payable, 8 izfr’kr dh nj ls lnL;ksa }kjk vuqeksfnr gksus ij ns; gksxkA if approved, by the Members.

Tkksf[ke izcU/ku RISK MANAGEMENT cSad esa ges’kk fofHkUu izdkj ds tksf[keksa dh vk’kadk jgrh gS tks fd cSafdax The Bank is exposed to various risks that are an inherent part O;olk; dk fufgr vax gSA izeq[k tksf[ke tSls fd _.k tksf[ke] cktkj of any banking business. The major risks are credit risk, market tksf[ke] rjyrk tksf[ke o ifjpkyu tksf[ke gSaA LFkk;h o fujUrj fodkl risk, liquidity risk and operational risk. To ensure sustainable and consistent growth, your Bank has developed a sound lqfuf’pr djus ds fy, cSad us ,d Bksl tksf[ke izcU/ku QzseodZ fodflr risk management framework so that the risks assumed by the fd;k gS rkfd cSad }kjk ekuk x;k tksf[ke yxkrkj mfpr #i ls ekik Bank are properly assessed and monitored continuously. It tk lds vkSj mldh fuxjkuh dh tk ldsA ;gka ;g dguk mfpr gS fd may be noted that the ultimate responsibility for setting up the tksf[ke QzseodZ cukuk cSad ds cksMZ dh ije ftEesnkjh gSA izR;sd izdkj risk management framework lies with the Board of the Bank. ds tksf[ke ds fy, fu;a=d #ijs[kk cukus ds iz;kstu ls funs’kd eaMy Policies approved from time to time by the Board of Directors vFkok cksMZ lfefr }kjk le;≤ ij uhfr;ka vuqeksfnr dh tkrh gSA or Committees of the Board form the governing framework for each type of risk. The business activities are undertaken within bu uhfr;ksa ds nk;js esa O;kolkf;d xfrfof/k;ka lapkfyr dh tkrh gSaA these policy frameworks. A brief outline of the mechanism for fofHkUu tksf[keksa ds fu/kkZj.k] ewY;kadu rFkk izca/ku dh izfdz;k la{ksi esa identifying, evaluating and managing various risks within your fuEukuqlkj gS%& Bank is as follows:-

15 funs’kdksa dh fjiksVZ Directors’ Report vkfLr ns;rk izcU/ku ¼,,y,e½ ASSET LIABILITY MANAGEMENT (ALM) rjyrk tksf[ke og tksf[ke gS ftlesa cSad vkfLr;ksa esa o`f) ;k nkf;Roksa Liquidity risk is the risk that the Bank may not be able to fund dks iwjk djus ds fy, fcuk vLohdk;Z {kfr ds dks"k dh O;oLFkk ugha dj increases in assets or meet obligations as they fall due without ldrk gSA C;kt nj tksf[ke og tksf[ke gS ftlls cktkj C;kt njksa esa incurring unacceptable losses. Interest rate risk is the risk where cnyko ls cSad dh vk; esa] 'kq) C;kt vk; ls cnyko ,oa C;kt nj change in market interest rates affects the Bank’s earnings laosnu’khy vkfLr;ksa o ns;rkvksa ds vkfFkZd ewY; esa ifjorZu ds ifj.kke through changes in its Net Interest Income (NII) and the market Lo#i cSad dh lk/kkj.k iwath ds cktkj ewY; esa cnyko ds }kjk udkjkRed value of equity through changes in the economic value of its interest rate sensitive assets and liabilities. The policy framework izHkko iM+rk gSA rjyrk ,oa C;kt nj tksf[ke izcU/ku ds fy, uhfr dh for liquidity and interest rate risk management is established in #ijs[kk cSad dh ,-,y-,e- uhfr esa LFkkfir gS tks fd fu;ked vkns’kksa ls the Bank’s ALM Policy which is guided by regulatory instructions. ekxZnf’kZr gSA vkids cSad us cksMZ }kjk vuqeksfnr dbZ lhek,a r; dh gS Your Bank has established various Board approved limits viz., tSls ifjiDork vUrj lhek] rjyrk vuqikr ds fy, LVkd vuqikr dh maturity gap limits and limits on stock ratios for liquidity ratio and lhek] C;kt nj tksf[ke ds fy, vk; izHkko ,oa cktkj ewY; izHkko dh limits on income impact and market value impact for interest rate lhekA vkids cSad dh vkfLr ns;rk lfefr ¼,Ydks½ ;g lqfuf’pr djrh risk. Your Bank’s Asset Liability Committee (ALCO) ensures that gS rjyrk tksf[ke ,oa C;kt nj tksf[ke lgu’khyrk lhek ds vUnj gSA liquidity risk and interest rate risk are within the tolerance limits. blds vfrfjDr vkids cSad ds ikl ,d O;kid cksMZ }kjk vuqeksfnr ruko Additionally, your Bank has a comprehensive Board approved ijh{k.k dk;Zdze gS tks fd rjyrk ,oa C;kt nj tksf[ke dks 'kkfey djrk stress testing programme covering liquidity and interest rate risk gS tks fd fu;ked ds ekxZn’kZd fl)kUrksa ls lansf[kr gSA which is aligned with the regulatory guidelines. _.k tksf[ke% CREDIT RISK

_.k tksf[ke og tksf[ke gS ftls m/kkjdrkZvksa ds _.k dh xq.koÙkk Credit Risk is defined as the possibility of losses associated with esa deh vkus] izfri{kksa ds vpkud fMQkWYV ;k iksVZQksfy;ks esa deh ls the reduction in the credit quality of borrowers or counterparties lEcfU/kr gkfu dh lEHkkouk ds #i esa ifjHkkf"kr fd;k x;k gSA vkids from outright default of from reduction in portfolio value. Your cSad dk _.k tksf[ke izcU/ku ,d O;kid ,oa lqifjHkkf"kr _.k uhfr ds Bank’s Credit Risk management is governed by a comprehensive }kjk fu;af=r gksrk gS tks fd cksMZ }kjk LohÑr dh x;h gSA iksVZQksfy;ks and well-defined Credit Policy which is approved by the Board. esa vuqfpr dsUnzhdj.k tksf[ke dk fuokj.k djus ds fy, cSad us fofHkUu To manage the undue concentration risk in the portfolios, the m|ksxksa] lsDVj o m/kkjdrkZvksa ds fy, izwMsaf’k;y lhek,a r; dh gSaA Bank has put in place prudential caps across industries, sectors Hkkjrh; fjtoZ cSad ds fn’kkfunsZ’kksa ds vuq#i cSad orZeku esa _.k tksf[ke and borrowers. In accordance with the RBI guidelines, Bank is currently on the Standardized Approach for credit risk. ds fy, LVsUMMkZbTM ,izskp ij dk;Z dj jgk gSA Ckktkj tksf[ke MARKET RISK Ckktkj tksf[ke dk rkRi;Z cktkj njksa vFkok VsªfMax iksVZQksfy;ks ds ewY;ksa Market risk is the possibility of loss a Bank may suffer on esa cktkj fLFkfr;ksa esa izfrdwy ifjorZu ds dkj.k lEHkkfor vkfFkZd gkfu;ksa account of changes in values of its trading portfolio, due to ls gSA vkids cSad us viuh Vsªtjh xfrfof/k;ksa dks fu;af=r o ekWuhVj djus change in market variables. Your Bank has clearly articulated ds fy, Li"V uhfr;ka cuk j[kh gSaA vkids cSad ds VsªfMax iksVZQksfy;ks policies to control and monitor its treasury functions. The market esa cktkj tksf[ke dh ,d lqifjHkkf"kr cksMZ }kjk LohÑr cktkj tksf[ke risk is calculated using Standardized Approach. Market Risk in ikfylh }kjk i;kZIr #i ls ns[kHkky dh tk jgh gSA cktkj tksf[ke dk the trading portfolio of your Bank has been adequately managed vkdyu ekudhÑr fof/k ls fd;k x;k gSA cSad esa cksMZ }kjk LohÑr ,d through a well-defined Board approved market risk policy. The fuos’k uhfr gS ftldk fuos’k ;k VsªfMax djrs le; iw.kZr% ikyu fd;k Bank also has an approved investment policy which is adhered tkrk gSA blds vfrfjDr cSad esa cksMZ }kjk LohÑr ,d ruko ijh{k.k while investing or trading. Additionally, Bank has a Board ikfylh ,oa ÝseodZ gS ftlesa cktkj tksf[ke ruko ijh{k.k ifjn`’; approved stress test policy and framework which encompasses 'kkfey gS rkfd ruko dks ekik tk lds ,oa i;kZIr fu;a=.k mik; fd;s the market risk stress test scenarios so that stress losses can tk ldsA be measured and adequate control measures can be initiated. ifjpkyu tksf[ke OPERATIONAL RISK ifjpkyu tksf[ke dk rkRi;Z vi;kZIr vFkok vlQy vkarfjd ifjpkyu Operational Risk implies the risk of loss resulting from izfØ;k] yksxksa rFkk iz.kkfy;ksa vFkok ckgjh ?kVdksa ls gkfu ds dkj.k gksus inadequate or failed internal processes, people and systems okyk tksf[ke gSA blesa fof/kd tksf[ke Hkh 'kkfey gS] ysfdu dk;Zuhfr or from external events. This includes legal risk, but excludes rFkk izfr"Bk lEcU/kh tksf[ke blesa 'kkfey ugha gSaA ifjpkyu tksf[ke dk strategic and reputation risks. The Operational Risk is calculated vkdyu ewyHkwr lwpd iz.kkyh ls fd;k x;k gSA using the Basic Indicator Approach.

16 funs’kdksa dh fjiksVZ Directors’ Report rjyrk dojst vuqikr LIQUIDITY COVERAGE RATIO (LCR) rjyrk dojst vuqikr cSad rjyrk ds fy, ,d oSf’od U;wure ekud The Liquidity Coverage Ratio (LCR) is a global minimum standard gSA bl vuqikr dk /;s; ;g lqfuf’pr djuk gS fd cSad tks Hkkjrh; for bank liquidity. The ratio aims to ensure that a bank has an fjtoZ cSad }kjk fu/kkZfjr egRoiw.kZ xaHkhj ncko ifjos’k esa 30 dSysaMj adequate stock of unencumbered high-quality liquid assets fnuksa dh vko’;drk dks iwjk djus ds fy, Ik;kZIr Hkkj jfgr mPp dksfV (HQLA) that can be converted into cash easily and immediately to meet its liquidity needs for a 30 calendar day liquidity stress dh vkfLr;ka j[ks ftUgsa udnh esa cnyk tk ldsA twu] 2014 esa Hkkjrh; scenario. In June 2014, RBI released Basel III Framework on fjtoZ cSad us rjyrk ekudksa ij rjyrk dojst vuqikr ¼,ylhvkj½ vkSj Liquidity Standards- Liquidity Coverage Ratio (LCR), Liquidity csly III QzseodZ ij vk/kkfjr ,ylhvkj izdVhdj.k] ekWfuVfjax VwYl Risk Monitoring Tools and LCR Disclosure Standards. Based on tkjh fd;kA bu fn’kkfunsZ’kksa ds vk/kkj ij ,ylhvkj 1 tuojh] 2015 the guidelines, LCR became effective on January 1, 2015 with ls U;wure 60 izfr’kr vko’;drk ds lkFk cjkcj lkykuk o`f) ds lkFk minimum requirement for the ratio is at 60%, increasing in equal 1 tuojh] 2019 rd 100 izfr’kr ds y{; rd igqapus ds y{; ds lkFk annual increments to reach 100% on January 1, 2019. As per ykxw gks x;kA orZeku esa ykxw fn’kkfunsZ’kksa ds vuqlkj 31 ekpZ] 2016 dks the prevailing guidelines on March 2016, your Bank’s monthly lekIr frekgh ds vk/kkj ij vkids cSad dk ,ylhvkj orZeku U;wure average LCR, for the quarter ended March 31, 2016 was above vko’;drk ls Åij vFkkZr 70 izfr’kr ij FkkA the present minimum requirement i.e. 70%. csly III dk;kZUo;u BASEL III IMPLEMENTATION csly III iwath fofu;eksa dk dk;kZUo;u Hkkjrh; cSadksa }kjk 1 vizsy The Basel III capital regulations have been implemented by 2013 ls fd;k x;k gSA csly III esa ljyrk ls ikjxeu ds fy, iawth Indian banks with effect from April 1, 2013. To ensure smooth vko’;drk ds vuq#i leqfpr ikjxeuh; O;oLFkk dh xbZ gS vkSj U;wure transition to Basel III, appropriate transitional arrangements csly III iwath vuqikrksa o iwath ds ?kVdksa ls lEcfU/kr iw.kZ fu;kedh; have been made with capital requirement and disclosures at lek;kstu dh izkfIr ds fy, foÙkh; ifj.kkeksa ds izdk’ku ds lkFk ?kksf"kr consolidated level which are to be disclosed with the publication djus gsrq lHkh vko’;d ?kks"k.kk,a lesfdr Lrj ij dh xbZ gSaA blds of financial results have been provided for meeting the minimum dk;kZUo;u ds fy, ,d vksj iwath dh ifjof/kZr xq.koÙkk ,oa ek=k vkSj Basel III capital ratios, full regulatory adjustments to the components of capital. This implementation requires enhanced nwljh vksj vf/kd izdVhdj.k dh vko’;drk gSA orZeku esa cSad dh iwath quality and quantity of capital on one side and more elaborate csly III ds vUrxZr t#jrksa dks iwjk djus ds fy, i;kZIr gSA disclosure on the other. The bank is adequately capitalized as per the current requirements under Basel III. cSad ds ikl bldh vkUrfjd iwath Ik;kZIrrk izfØ;k ¼vkbZdSi½ esa mu lHkh The Bank has a structured management framework in the tksf[keksa ds egRo dh igpku o ewY;kadu djus ds fy,] ftudk fd cSad Internal Capital Adequacy Assessment Process (ICAAP) for dks lkeuk djuk iM+ ldrk gS rFkk tks cSad ds O;olk; o foÙkh; fLFkfr the identification and evaluation of the significance of all risks ij rkfRod foijhr izHkko Mky ldrs gSaA ,d lajfpr izcU/ku QzseodZ gSA that Bank faces, which may have a material adverse impact on its business and financial position. The Bank has a Board cSad ds ikl ,d cksMZ }kjk LohÑr ruko ijh{k.k QzseodZ gS tks fd cSad approved Stress Testing Framework which forms an integral ds vkbZdSi dk ,d vfHkUu vax gSA ruko ijh{k.k cSad dh pje ijUrq part of the Bank’s ICAAP, stress testing involves the use of lR; izrhr gksus okyh nckoiw.kZ O;olk; fLFkfr;ksa esa laHkkfor lqj{kkfNnzksa various techniques to assess the Bank’s potential vulnerability dk vkdyu djus okyh fofHkUu rduhdksa dks 'kkfey djrk gSA fofHkUu to extreme but plausible stressed business conditions. The tksf[keksa ds Lrj esa ifjorZu ,oa cSad ds rqyui= ds 'kkfey o mlds ckgj changes in the levels of various risks and the changes in the on dh fLFkfr;ksa esa ifjorZu dfYir ^ruko* ifjn`’; ,oa laosnu’khy dkjdksa and off balance sheet positions of the Bank are assessed under ds vUrxZr ewY;kafdr fd;s tkrs gSaA assumed “stress” scenarios and sensitivity factors. Typically, these relate, inter alia, to the impact on the Bank’s profitability and capital adequacy. lkafof/kd ys[kk ijh{kd STATUTORY AUDITORS ys[kk ijh{kdksa dh layXu fjiksVZ dks bl fjiksVZ dk Hkkx cuk;k x;k gSA The appended Auditors Report is made part of this Report. ys[kk ijh{kdksa dh fjiksVZ esa cSaddkjh fofu;eu vf/kfu;e] 1949 o dEiuh Auditors Report contains all the information required by The vf/kfu;e] 2013 ds vUrxZr visf{kr lHkh lwpuk,a cSaddkjh dEifu;ksa Banking Regulation Act, 1949 as well as The Companies Act, ds fy;s visf{kr fof/k ls nh xbZ gSa rFkk ;g 31 ekpZ] 2016 dks cSad ds 2013, in the manner so required for the banking companies and dkedkt dh lgh vkSj fu"i{k fLFkfr n’kkZrh gSaA give a true and fair view of the state of affairs of the Bank as at 31st March, 2016.

17 funs’kdksa dh fjiksVZ Directors’ Report

;g Li"V fd;k tkrk gS fd o"kZ ds nkSjku dsUnzh; lkafof/kd ys[kk ijh{kdksa It is submitted that no changes was made in respect of Central esa dksbZ ifjorZu ugha fd;k x;k D;ksafd orZeku dsUnzh; lkafof/kd ys[kk Statutory Auditors during the year, as existing Central Statutory ijh{kd iqufuZ;qfDr ds fy, ik= Fks vkSj Hkkjrh; fjtoZ cSad us bl lEcU/k Auditors were eligible for re-appointment and required approval esa visf{kr vuqefr iznku dj nh FkhA was granted by Reserve Bank of India in this regard. Tkgka rd 'kk[kk dh lkafof/kd ys[kk ijh{kk dk lEcU/k gS 40 ys[kk ijh{kd As regards, Branch Statutory Audit, 40 Auditors were eligible for iqufuZ;qfDr ds fy, ik= Fks] mUgsa ys[kk ijh{kk dk dk;Z lkSaik x;k vkSj re-appointment and were assigned the audit job and 17 fresh ys[kk ijh{k.k ds dk;Z ds fy, 17 u;s ys[kk ijh{kd fu;qDr fd, x,A Auditors were appointed for audit work. Lkakfof/kd ys[kk ijh{kdksa us ;g iqf"V dh gS fd rqyui= vkSj ykHk&gkafu The Central Statutory Auditors have confirmed that the Balance [kkrk cSaddkjh fofu;eu vf/kfu;e] 1949 dh /kkjk 29 ds izko/kkuksa] ftUgsa Sheet and the Profit and Loss Account have been drawn up in accordance with the provisions of Section 29 of the Banking dEiuh vf/kfu;e 2013 dh /kkjk 133 rFkk dEiuh ¼ys[kk½ fu;e 2014 ds Regulation Act, 1949 read with Section 133 of the Companies fu;e 7 ds lkFk i<+k tk,] ds vuqlkj rS;kj fd;s x, gSaA mUgksaus bl ckr Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, dh Hkh iqf"V dh gS fd bl lEcU/k esa cSafdax fofu;eu vf/kfu;e 1949 2014. They also confirmed compliance of sub section (3) of dh /kkjk 30 ds mifu;e 3 ,oa dEiuh vf/kfu;e 2013 dh /kkjk 143¼3½ Section 30 of the Banking Regulation Act, 1949 as well as ds izko/kkuksa dk Hkh vuqikyu fd;k x;k gSA cSad }kjk bUosLVj ,twds’ku section 143(3) of the Companies Act, 2013. There has been no ,.M izksVsD’ku QaM esa vko’;d /kujkf’k dks varfjr djus esa dksbZ foyac delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Bank. ugha fd;k x;k gSA

18 funs’kdksa dh fjiksVZ Directors’ Report

Okkf"kZd fooj.kh dk va’k@EXTRACT OF ANNUAL RETURN dEiuh vf/kfu;e] 2013 ,oa dEiuh ¼izcU/ku ,oa iz’kklu½ fu;e] 2014 ds fu;e 12¼1½ vkSj vuqHkkx 92¼3½ ds vuqlkj Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company (Management & Administration) Rules, 2014

I. iathdj.k ,oa vU; fooj.k@REGISTRATION & OTHER DETAILS:

1 lhvkbZ,u@CIN U65923UR1922PLC000234

2 iathdj.k fnukad@Registration Date 31/07/1922

3 dEiuh dk uke@Name of the Company THE BANK LIMITED

4 dEiuh dk oxZ@mioxZ@Category/Sub-category of the Company Indian Non-Government Company iathÑr dk;kZy; dk irk ,oa laidZ fooj.k 5 G B PANT ROAD NAINITAL UTTARANCHAL UR 263001 IN Address of the Registered office & contact details

6 D;k dEiuh lwphc) gS@Whether listed company NO jftLVªkj ,oa VªkUlQj ,tsUV dk uke] irk o laidZ fooj.k 7 Name, Address & contact details of the Registrar & Transfer Not Applicable Agent, if any.

II. dEiuh dh izeq[k O;kolkf;d xfrfof/k;ka@PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY ¼dEiuh ds dqy dkjksokj dk 10 izfr’kr ;k vf/kd ;ksxnku nsus okyh O;kolkf;d xfrfof/k;ka½ (All the business activities contributing 10 % or more of the total turnover of the company shall be stated)

dEiuh ds mRikn@lsok dk ,uvkbZlh Ø-la- dqy dkjksckj eq[; mRikn@lsokvksa dk uke o fooj.k dksM S. dk izfr’kr Name and Description of main products / services No. NIC Code of the Product/ % to total service turnover of the company 1 cSafdax lsok,a@BANKING SERVICES 64191 100%

III. 'ks;j gksfYMax iSVuZ@Share Holding Pattern

¼bfDoVh 'ks;j iwath dk dqy iwath ds izfr’kr esa oxhZdj.k½@(Equity share capital breakup as percentage of total equity)

(i) oxZokj va’k /kkfjrk@Category-wise Share Holding o"kZ ds izkjEHk esa 'ks;jksa dh la[;k@ o"kZ ds vUr esa 'ks;jksa dh la[;k@ o"kZ ds No. of Shares held at the beginning of the year No. of Shares held at the end of the year nkSjku dqy izfr’kr va’k/kkjdksa dk oxZ@ dqy 'ks;jksa 'ks;jksa dk ifjorZu@ Category of Shareholders MhesV@ HkkSfrd@ dk izfr’kr MhesV@ HkkSfrd@ % tksM+@Total tksM+@Total izfr’kr@ Demat Physical % of Total Demat Physical % of Change Shares Total during Shares the year v- laizorZd

A. Promoters 1) Hkkjrh;@Indian d½ O;fDr-@v-fg-i- - - - 0.00% - - - 0.00% 0.00% a) Individual/ HUF [k½ dsUnzh; ljdkj - - - 0.00% - - - 0.00% 0.00% b) Central Govt x½ jkT; ljdkj¼jsa½ - - - 0.00% - - - 0.00% 0.00% c) State Govt(s)

19 funs’kdksa dh fjiksVZ Directors’ Report

o"kZ ds izkjEHk esa 'ks;jksa dh la[;k@ o"kZ ds vUr esa 'ks;jksa dh la[;k@ o"kZ ds No. of Shares held at the beginning of the year No. of Shares held at the end of the year nkSjku dqy izfr’kr va’k/kkjdksa dk oxZ@ dqy 'ks;jksa 'ks;jksa dk ifjorZu@ Category of Shareholders MhesV@ HkkSfrd@ dk izfr’kr MhesV@ HkkSfrd@ % tksM+@Total tksM+@Total izfr’kr@ Demat Physical % of Total Demat Physical % of Change Shares Total during Shares the year ?k½ dkjiksjsV laLFkk,a - - - 0.00% - - - 0.00% 0.00% d) Bodies Corp. ³½ cSad@fo-la- - - - 0.00% - - - 0.00% 0.00% e) Banks / FI p½ vU; dksbZ - - - 0.00% - - - 0.00% 0.00% f) Any other mi tksM+ v ¼1½ - - - 0.00% - - - 0.00% 0.00% Sub Total (A) (1) (2) fons’kh@Foreign d½ ,uvkjvkbZ O;fDr - - - 0.00% - - - 0.00% 0.00% a) NRI Individuals [k½ vU; O;fDr - - - 0.00% - - - 0.00% 0.00% b) Other Individuals x½ dkjiksjsV laLFkk,a - - - 0.00% - - - 0.00% 0.00% c) Bodies Corp. ?k½ vU; dksbZ - - - 0.00% - - - 0.00% 0.00% d) Any other mi tksM+ v ¼2½ - - - 0.00% - - - 0.00% 0.00% Sub Total (A) (2) tksM+ ¼v½@TOTAL (A) - - - 0.00% - - - 0.00% 0.00% c- lkoZtfud va’k/kkfjrk

B. Public Shareholding 1. laLFkk,a@Institutions d- E;wpqvy QaM - - - 0.00% - - - 0.00% 0.00% a) Mutual Funds [k- cSad@fo-la- - 66,535,260 66,535,260 98.57% - 66,535,260 66,535,260 98.57% 0.00% b) Banks / FI x- dsUnzh; ljdkj - - - 0.00% - - - 0.00% 0.00% c) Central Govt ?k½ jkT; ljdkj¼jsa½ - - - 0.00% - - - 0.00% 0.00% d) State Govt(s) ³½ m|e iwath dks"k - - - 0.00% - - - 0.00% 0.00% e) Venture Capital Funds p- chek dEifu;ka - - - 0.00% - - - 0.00% 0.00% f) Insurance Companies N- fo-la- fu- - - - 0.00% - - - 0.00% 0.00% g) FIIs t- fons’kh m|e iwath dks"k h) Foreign Venture Capital - - - 0.00% - - - 0.00% 0.00% Funds >- vU;¼fooj.k nsa½ - - - 0.00% - - - 0.00% 0.00% i) Others (specify) mi tksM+ ¼c½¼1½ - 66,535,260 66,535,260 98.57% - 66,535,260 66,535,260 98.57% 0.00% Sub-total (B)(1)

20 funs’kdksa dh fjiksVZ Directors’ Report

o"kZ ds izkjEHk esa 'ks;jksa dh la[;k@ o"kZ ds vUr esa 'ks;jksa dh la[;k@ o"kZ ds No. of Shares held at the beginning of the year No. of Shares held at the end of the year nkSjku dqy izfr’kr va’k/kkjdksa dk oxZ@ dqy 'ks;jksa 'ks;jksa dk ifjorZu@ Category of Shareholders MhesV@ HkkSfrd@ dk izfr’kr MhesV@ HkkSfrd@ % tksM+@Total tksM+@Total izfr’kr@ Demat Physical % of Total Demat Physical % of Change Shares Total during Shares the year xSj laLFkk,a@ 2. Non-Institutions d- dkjiksjsV ckWMht a) Bodies Corp. i) Hkkjrh;@Indian - 29,005 29,005 0.04% 0 29005 29,005 0.04% 0.00% ii) fons’kh@Overseas - - - 0.00% 0 0 - 0.00% 0.00% [k½ O;fDrxr b) Individuals i) #-,d yk[k rd 'ks;jiwath okys O;fDrxr 'ks;j/kkjdksa dh 'ks;jèkkfjrk@Individual - 935,735 935,735 1.39% - 935,735 935,735 1.39% 0.00% shareholders holding nominal share capital upto ` 1 lakh ii) #-,d yk[k ls vfèkd 'ks;jiwath okys O;fDrxr va’k/kkjdksa dh va’kèkkfjrk@ - - - 0.00% 0 0 - 0.00% 0.00% Individual shareholders holding nominal share capi- tal in excess of Rs 1 lakh x- vU; ¼fooj.k nsa½ - - - 0.00% 0 0 - 0.00% 0.00% c) Others (specify) vfuoklh Hkkjrh;@ - - - 0.00% 0 0 - 0.00% 0.00% Non Resident Indians fons’kh dkWjiksjsV ckWMht@ - - - 0.00% - - - 0.00% 0.00% Overseas Corporate Bodies fons’kh ukxfjd@ - - - 0.00% 0 0 - 0.00% 0.00% Foreign Nationals Lkek’kks/ku lnL;@ Clearing - - - 0.00% 0 0 - 0.00% 0.00% Members fuf/k;ka@Trusts - - - 0.00% 0 0 - 0.00% 0.00% fons’kh ckWMht&Mhvkj - - - 0.00% 0 0 - 0.00% 0.00% Foreign Bodies - D R mi tksM+ c ¼2½ - 964,740 964,740 1.43% - 964,740 964,740 1.43% 0.00% Sub-total (B)(2) dqy lkoZtfud¼c½ - 67,500,000 67,500,000 100.00% - 67,500,000 67,500,000 100.00% 0.00% Total Public (B) l- thMhvkj o ,Mhvkj ds fy, vfHkj{kd }kjk èkkfjr 'ks;j - 0.00% 0.00% 0.00% C. Shares held by Custodian for GDRs & ADRs Lkexz ;ksx ¼v$c$l½ - 67,500,000 67,500,000 100.00% - 67,500,000 67,500,000 100.00% 0.00% Grand Total (A+B+C)

21 funs’kdksa dh fjiksVZ Directors’ Report

(iv) 'kh"kZ nl 'ks;j/kkjdksa dk va’k/kkfjrk 'ks;jgksfYMax iSVuZ@Shareholding Pattern of top ten Shareholders

¼funs’kdksa] izeksVlZ ,oa thMhvkj o ,Mhvkj ds /kkjdksa ds vfrfjDr½@(Other than Directors, Promoters and Holders of GDRs and ADRs): o"kZ ds izkjEHk esa va’k/kkfjrk o"kZ ds nkSjku lap;h va’k/kkfjrk Ø- Shareholding at the Cumulative Shareholding la- izR;sd 'kh"kZ 10 'ks;j/kkjdksa ds fy, beginning of the year during the year S. For each of the Top 10 shareholders No. 'ks;jksa dh la[;k dqy 'ks;jksa dk izfr’kr 'ks;jksa dh la[;k dqy 'ks;jksa dk izfr’kr No. of shares % of total shares No. of shares % of total shares 1 cSad vkWQ cM+kSnk M/s. Bank Of Baroda o"kZ ds izkjEHk esa At the beginning of the year 66,530,460 98.57% 66,530,460 98.57% o"kZ ds nkSjku ifjorZu Changes during the year - 0.00% - 0.00% o"kZ ds vUr esa At the end of the year 66,530,460 98.57% 66,530,460 98.57%

eSllZ ftUny ikSyhej M/s. Jindal Polymer 2 izksMDV~l izk-fy- Products P. Ltd o"kZ ds izkjEHk esa At the beginning of the year 28,905 0.04% 28,905 0.04% o"kZ ds nkSjku ifjorZu Changes during the year - 0.00% - 0.00% o"kZ ds vUr esa At the end of the year 28,905 0.04% 28,905 0.04% 3 Jh lat; jkoy Mr. Sanjay Rawal o"kZ ds izkjEHk esa At the beginning of the year 25,173 0.04% 25,173 0.04% o"kZ ds nkSjku ifjorZu Changes during the year - 0.00% - 0.00% o"kZ ds vUr esa At the end of the year 25,173 0.04% 25,173 0.04% 4 Jherh dkek{kh jkoy Mrs. Kamakshi Rawal o"kZ ds izkjEHk esa At the beginning of the year 25,173 0.04% 25,173 0.04% o"kZ ds nkSjku ifjorZu Changes during the year - 0.00% - 0.00% o"kZ ds vUr esa At the end of the year 25,173 0.04% 25,173 0.04% 5 Jh bUnz nso Mr. Indra Dev o"kZ ds izkjEHk esa At the beginning of the year 20,300 0.03% 20,300 0.03% o"kZ ds nkSjku ifjorZu Changes during the year - 0.00% - 0.00% o"kZ ds vUr esa At the end of the year 20,300 0.03% 20,300 0.03% 6 Jh izeksn dqekj mizsrh Mr. Pramod Kumar Upreti o"kZ ds izkjEHk esa At the beginning of the year 18,000 0.03% 18,000 0.03% o"kZ ds nkSjku ifjorZu Changes during the year - 0.00% - 0.00% o"kZ ds vUr esa At the end of the year 18,000 0.03% 18,000 0.03%

Jh eksgu pUnz tks’kh Mr. Mohan Chandra Joshi 7 fel ruqJh tks’kh Ms. Tanushri Joshi o"kZ ds izkjEHk esa At the beginning of the year 18,000 0.03% 18,000 0.03% o"kZ ds nkSjku ifjorZu Changes during the year - 0.00% - 0.00% o"kZ ds vUr esa At the end of the year 18,000 0.03% 18,000 0.03% 8 Jh rkjk pUnz mizsrh Mr. Tara Chandra Upreti o"kZ ds izkjEHk esa At the beginning of the year 17,985 0.03% 17,985 0.03% o"kZ ds nkSjku ifjorZu Changes during the year - 0.00% - 0.00% o"kZ ds vUr esa At the end of the year 17,985 0.03% 17,985 0.03%

22 funs’kdksa dh fjiksVZ Directors’ Report

o"kZ ds izkjEHk esa va’k/kkfjrk o"kZ ds nkSjku lap;h va’k/kkfjrk Ø- Shareholding at the Cumulative Shareholding la- izR;sd 'kh"kZ 10 'ks;j/kkjdksa ds fy, beginning of the year during the year S. For each of the Top 10 shareholders No. 'ks;jksa dh la[;k dqy 'ks;jksa dk izfr’kr 'ks;jksa dh la[;k dqy 'ks;jksa dk izfr’kr No. of shares % of total shares No. of shares % of total shares 9 Jh lquhy dqekj lkg Mr. Sunil Kumar Sah o"kZ ds izkjEHk esa At the beginning of the year 16,875 0.03% 16,875 0.03% o"kZ ds nkSjku ifjorZu Changes during the year - 0.00% - 0.00% o"kZ ds vUr esa At the end of the year 16,875 0.03% 16,875 0.03% 10 Jh eksgu pUnz tks’kh Mr. Mohan Chandra Joshi o"kZ ds izkjEHk esa At the beginning of the year 16,000 0.02% 16,000 0.02% o"kZ ds nkSjku ifjorZu Changes during the year - 0.00% - 0.00% o"kZ ds vUr esa At the end of the year 16,000 0.02% 16,000 0.02%

(v) funs’kdksa ,oa ewy izca/kdh; O;fDr;ksa dh va’k/kkfjrk%@Shareholding of Directors and Key Managerial Personnel:

o"kZ ds izkjEHk esa va’k/kkfjrk o"kZ ds nkSjku lap;h va’k/kkfjrk Ø- izR;sd funs’kd ,oa izR;sd ewy izca/kdh; O;fDr Shareholding at the Cumulative Shareholding la- dh va’k/kkfjrk beginning of the year during the year S. Shareholding of each Directors and each Key No. Managerial Personnel 'ks;jksa dh la[;k dqy 'ks;jksa dk izfr’kr 'ks;jksa dh la[;k dqy 'ks;jksa dk izfr’kr No. of shares % of total shares No. of shares % of total shares Jh eqds’k 'kekZ] Mr. Mukesh Sharma 1 v/;{k ,oa eq[; (Chairman & C.E.O) dk;Zdkjh vf/kdkjh o"kZ ds izkjEHk esa At the beginning of the year - 0.00% - 0.00% o"kZ ds nkSjku ifjorZu Changes during the year - 0.00% - 0.00% o"kZ ds vUr esa At the end of the year - 0.00% - 0.00% 2 Jh vkj-ds-vjksjk Mr. R.K. Arora o"kZ ds izkjEHk esa At the beginning of the year - 0.00% - 0.00% o"kZ ds nkSjku ifjorZu Changes during the year - 0.00% - 0.00% o"kZ ds vUr esa At the end of the year - 0.00% - 0.00% 3 Jh ,l- Kkuosy Mr. S. Gnanavel o"kZ ds izkjEHk esa At the beginning of the year 150 0.0002% 150 0.0002% o"kZ ds nkSjku ifjorZu Changes during the year - 0.00% - 0.00% o"kZ ds vUr esa At the end of the year 150 0.0002% 150 0.0002% izks-¼Mk-½ oh-ih-,l- 4 Prof. (Dr.) V.P.S. Arora vjksjk o"kZ ds izkjEHk esa At the beginning of the year - 0.00% - 0.00% o"kZ ds nkSjku ifjorZu Changes during the year - 0.00% - 0.00% o"kZ ds vUr esa At the end of the year - 0.00% - 0.00%

23 funs’kdksa dh fjiksVZ Directors’ Report

o"kZ ds izkjEHk esa va’k/kkfjrk o"kZ ds nkSjku lap;h va’k/kkfjrk Ø- izR;sd funs’kd ,oa izR;sd ewy izca/kdh; O;fDr Shareholding at the Cumulative Shareholding la- dh va’k/kkfjrk beginning of the year during the year S. Shareholding of each Directors and each Key No. Managerial Personnel 'ks;jksa dh la[;k dqy 'ks;jksa dk izfr’kr 'ks;jksa dh la[;k dqy 'ks;jksa dk izfr’kr No. of shares % of total shares No. of shares % of total shares 5 Jh uhjt 'kkjnk Mr. Neeraj Sharda o"kZ ds izkjEHk esa At the beginning of the year - 0.00% - 0.00% o"kZ ds nkSjku ifjorZu Changes during the year - 0.00% - 0.00% o"kZ ds vUr esa At the end of the year - 0.00% - 0.00% Jh e`nqy dqekj 6 Mr. Mradul Kumar Agarwal vxzoky o"kZ ds izkjEHk esa At the beginning of the year - 0.00% - 0.00% o"kZ ds nkSjku ifjorZu Changes during the year - 0.00% - 0.00% o"kZ ds vUr esa At the end of the year - 0.00% - 0.00% Mk- ¼Jherh½ ds-ds- 7 Dr. (Mrs.) K.K. Sharma ’kekZ o"kZ ds izkjEHk esa At the beginning of the year - 0.00% - 0.00% o"kZ ds nkSjku ifjorZu Changes during the year - 0.00% 0.00% o"kZ ds vUr esa At the end of the year - 0.00% - 0.00% Jh vrqy dqekj 8 Mr. Atul Kumar Aggarwala vxzoky o"kZ ds izkjEHk esa At the beginning of the year 150 0.0002% 150 0.0002% o"kZ ds nkSjku ifjorZu Changes during the year - 0.00% - 0.00% o"kZ ds vUr esa At the end of the year 150 0.0002% 150 0.0002% 9 Jh jkds’k usek Mr. Rakesh Nema o"kZ ds izkjEHk esa At the beginning of the year 150 0.0002% 150 0.0002% o"kZ ds nkSjku ifjorZu Changes during the year - 0.00% - 0.00% o"kZ ds vUr esa At the end of the year 150 0.0002% 150 0.0002% ewy izca/kdh; O;fDr@Key Managerial Personnels

Jh iznhi dqekj Mr. Pradeep Kumar Kala 1 dkyk ¼lh,Qvks½ (CFO) o"kZ ds izkjEHk esa At the beginning of the year - 0.0000% - 0.0000% o"kZ ds nkSjku ifjorZu Changes during the year - 0.00% - 0.00% o"kZ ds vUr esa At the end of the year - 0.0000% - 0.0000%

Jh foosd lkg Mr. Vivek Sah (Company 2 ¼dEiuh lfpo½ Secretary) o"kZ ds izkjEHk esa At the beginning of the year - 0.0000% - 0.0000% o"kZ ds nkSjku ifjorZu Changes during the year - 0.00% - 0.00% o"kZ ds vUr esa At the end of the year - 0.0000% - 0.0000%

24 funs’kdksa dh fjiksVZ Directors’ Report

VI. _.k xzLrrk@INDEBTEDNESS dEiuh dh _.kxzLrrk cdk;k C;kt o izksnHkwr ijUrq Hkqxrku ds fy, vns; C;kt 'kkfey Indebtedness of the Company including interest outstanding/accrued but not due for payment.

¼jkf’k #i;s yk[k esa½@(Amt. `/Lacs) Tkek ds vykok lqjf{kr _.k vlqjf{kr _.k Tkek,a dqy _.kxzLrrk fooj.k@Particulars Secured Loans excluding deposits Unsecured Loans Deposits Total Indebtedness

o"kZ ds izkjEHk esa _.kxzLrrk@Indebtedness at the beginning of the financial year

i) ewy jkf’k@Principal Amount 'kwU;@Nil 'kwU;@Nil 'kwU;@Nil -

ii) C;kt ns; ijUrq Hkqxrku ugha fd;k 'kwU;@Nil 'kwU;@Nil 'kwU;@Nil - x;k@Interest due but not paid iii) C;kt izksnHkwr ijUrq vns;@ 'kwU;@Nil 'kwU;@Nil 'kwU;@Nil - Interest accrued but not due

dqy@Total (i+ii+iii) - - -

foÙkh; o"kZ ds nkSjku _.kxzLrrk esa ifjorZu@Change in Indebtedness during the financial year

* vfrfjDr@Addition 'kwU;@Nil 'kwU;@Nil 'kwU;@Nil -

* deh@Reduction 'kwU;@Nil 'kwU;@Nil 'kwU;@Nil -

'kq) ifjorZu@Net Change - - -

o"kZ ds vUr esa _.kxzLrrk@Indebtedness at the end of the financial year

i) ewy jkf’k@Principal Amount 'kwU;@Nil 'kwU;@Nil 'kwU;@Nil -

ii) C;kt ns; ijUrq Hkqxrku ugha fd;k 'kwU;@Nil 'kwU;@Nil 'kwU;@Nil - x;k@Interest due but not paid iii) C;kt izksnHkwr ijUrq vns;@ 'kwU;@Nil 'kwU;@Nil 'kwU;@Nil - Interest accrued but not due

dqy@Total (i+ii+iii) - - -

*cSad }kjk izkIr tekjkf’k;ka blds O;olk; ds lkekU; fdz;kUo;u esa izkIr gqbZ gSa vkSj dEiuh vf/kfu;e 2013 ds vuqlkj tek ds vUrxZr ugha vkrh gSa vr% 'kkfey ugha dh xbZA@Deposits received by the Bank were in the ordinary course of business and does not amount to deposits in terms of Companies Act, 2013, hence not included. lfpoh; ys[kk ijh{kk SECRETARIAL AUDIT uSuhrky cSad fyfeVsM }kjk vPNh dkWjiksjsV izfdz;k dk ikyu vkSj iz;ksT; Ms. Namrata Srivastava, a Practicing Company Secretary at lkafof/kd izko/kkuksa ds vuqikyu ds fofHkUu igyqvksa dh ys[kk ijh{kk gsrq Gurgaon [Haryana], was appointed as the Secretarial Auditor for the Financial Year 2015-16, in respect to audit various aspects lqJh uezrk JhokLro] dEiuh lfpo dks foÙkh; o"kZ 2015&16 ds fy, of compliance of applicable statutory provisions and adherence lfpoh; ys[kk ijh{kd fu;qDr fd;k x;kA lfpoh; ys[kk ijh{kd us 31 to good corporate practices by The Nainital Bank Limited. The ekpZ] 2016 dks lekIr gksus okys foÙkh; o"kZ esa uSuhrky cSad fyfeVsM] Secretarial Auditor examined the books, papers, minute books, ¼cSaddkjh dEiuh½ }kjk dEiuh vf/kfu;e 2013 ¼vf/kfu;e½ vkSj mlds forms and returns filed and other records maintained by The vUrZxr fn, x, fu;eksa rFkk cSaddkjh fofu;eu vf/kfu;e 1949 vkSj Nainital Bank Limited (“the Banking Company”) for the financial year ended on 31st March, 2016 according to the provisions of, Hkk-fj-cSa- vf/kfu;e] 1934 ds izko/kkuksa ds vuqlkj rS;kj fd, x, cgh] The Companies Act, 2013 (the Act) and the rules made there izi=] dk;Zo`r iqfLrdk] tek dh xbZ foojf.k;ksa vkSj rS;kj fd;s x;s vU; under, The Banking Regulation Act, 1949 & RBI Act, 1934 as fjdkMZ rFkk tgka dgha iz;ksT; gks fuEufyf[kr ds lEcU/k esa tkap dh%& and where applicable with regard to:- d½ fofo/k lkafof/kd jftLVj vkSj nLrkostksa dk j[k&j[kko vkSj muesa a) Maintenance of various statutory registers and documents vko’;d izfof"VA and making necessary entries therein;

25 funs’kdksa dh fjiksVZ Directors’ Report

[k½ QkeZ] fooj.kh] nLrkost vkSj izLrko ftUgsa jftLVªkj vkQ dEiuht] b) Forms, returns, documents and resolutions required to be {ks=h; funs’kd] dsUnz ljdkj] dEiuh ykW cksMZ ;k vU; vf/kdkfj;ksa filed with the Registrar of Companies, Regional Director, ds lEeq[k QkbZy fd;k tkuk visf{kr gSA Central Government, Company Law Board or other authori- ties; x½ cksMZ vkSj funs’kdksa dh fofHkUUu lfefr;ksa dh cSBdksa ds uksfVlA c) Notice of Board and various Committee meetings of Directors;

?k½ funs’kdksa vkSj funs’kdksa dh lHkh lfefr;ksa dh cSaBdsa vkSj ifji= ls d) Meetings of Directors and all the Committees of Directors ikfjr izLrkoA and passing of circular resolutions;

³½ okf"kZd lk/kkj.k lHkk] tks 31 tqykbZ] 2015 dks gqbZ] dks vkgwr djus e) Notice dated 29th June, 2015 for convening of Annual dk 29 twu] 2015 dk uksfVlA General Meeting which was held on 31st July 2015. p½ cksMZ vkSj mldh lfefr;ksa dh cSBdksa vkSj lkekU; cSBdksa dh dk;Zokgh f) Minutes of the proceedings of the Board Meetings, dk dk;Zo`ÙkA Committee Meetings and General Meetings; N½ funs’kd eaMy] funs’kdksa dh lfefr;ksa dk la?kBu vkSj funs’kdksa g) Constitution of the Board of Directors, Committees of ftuesa izcU/k funs’kd vkSj dk;Zdkjh funs’kd Hkh lfEefyr gSa dh Directors and appointment, retirement and reappointment of Directors including Managing Directors and Executive fu;qfDr] fuo`fÙk vkSj iqufuZ;qfDrA Directors; t½ lkafof/kd vkSj vkarfjd ys[kk ijh{kdksa dh fu;qfDr vkSj ekuns;A h) Appointment and remuneration of Statutory & Internal Auditors;

>½ vkarfjd ys[kk ijh{kk ds fy, fujh{k.k foHkkx dh lfefr dk xBuA i) Constitution of Inspection Department Committee for con- ducting internal audit;

´½ dEiuh ds 'ks;jksa dk vUrj.k vkSj lapj.k] 'ks;jksa dks tkjh vkSj j) Transfer and transmission of the Company’s shares, and vkcafVr djuk vkSj 'ks;j lfVZfQdsVksa dh lqiqnZxhA delivery of certificates of shares; V½ ykHkka’k dh ?kks’k.kk vkSj Hkqxrku ftlesa cksMZ vkQ MkbZjsDVlZ }kjk k) Declaration and payment of dividend; including payment of vUrfje ykHkak’k dk Hkqxrku 'kkfey gSA Interim Dividend by the Board of Directors, B½ tSlk fd vf/kfu;e esa visf{kr gS] bUoSLVj ,twds’ku ,oa izksVsDlu l) Transfer of amounts as required under the Act to the Investor fuf/k esa jkf’k dk vUrj.kA Education and Protection Fund; M½ funs’kd eaMy dh fjiksVZA m) Report of the Board of Directors; <½ 31 ekpZ] 2015 ds rqyui= dks izdkf’kr djokuk vkSj mu n) Publishing of Balance sheet as on 31st March, 2015 & filing egRoiw.kZ foojf.k;ksa dks Qkby djuk tSls& cSad dh rjy vkfLr;ka of important returns which are to be submitted to the RBI vkSj ns;rk,a] QkeZ&8 ftUgsa cSafdax jsxqys’ku ,DV] 1949 ds vuqlkj such as return of Bank’s Liquid Assets & Liabilities, as per Hkkjrh; fjtoZ cSad dks izLrqr djuk gSA the Banking regulation Act, 1949. .k½ bULVhV~;wV vkWQ dEiuh lsdzsVjht vkWQ bf.M;k }kjk tkjh o) Compliance with the applicable clauses of the Secretarial Standards issued by the Institute of the Company lsdzsVsfj;y ekudksa ds iz;ksT; izko/kkuksa dk vuqikyuA Secretaries of India r½ lh,lvkj desVh dk xBu ,oa dEiuht ,DV 2013 ds [k.M 135 ds p) CSR Committee constituted and functioning in accordance vuqlkj bldk dk;kZUo;uA with the section 135 of Companies Act, 2013.

Fk½ lkekU;r% vf/kfu;e ds vU; lHkh iz;ksT; izko/kku vkSj mlds q) Generally, all other applicable provisions of the Act and the vUrxZr fu;eA Rules there under. lfpoh; ys[kk ijh{kd us iqf"V dh fd lehf{kr vof/k ds nkSj dEiuh us The Secretarial Auditor confirmed that during the period under lHkh vf/kfu;eksa] fu;eksa] fofu;eksa] fn’kk&funsZ’kksa] ekudksa vkfn ftUkdk review, the Company has generally complied with the provisions Åij mYys[k fd;k x;k gS vkSj tks cSaddkjh dEiuh ij ykxw gksrs gSa of the Act, Rules, Regulations, Guidelines, Standards, etc. fuEufyf[kr izs{k.k ds vk/khu lkekU;r% vuqikyu fd;k gS %& mentioned above and applicable upon a Banking Company, subject to the following observations:

26 funs’kdksa dh fjiksVZ Directors’ Report

ßgkykafd] vf/kd thoUr dkjiksjsV xousZUl ds fy, ge ;s lykg nsrs gSa “…However, in order of more vibrant Corporate Governances, fd cSad ds fofHkUu foHkkxksa dks dEiuh lfpoky; dks ,tsUMk le; ij we suggest that the various departments of the Banks should izLrqr djuk pkfg, rFkk vfrfjDr ,ts.Mk ls tcfd bldh rkRdkfydrk furnish agendas to the Company Secretariat well in time gks ¼fyf[kr dkj.k ds lkFk½ ds vykok cpuk pkfg, rFkk Lohdkj djus ds avoiding additional agendas except in case of urgency with fy;s cksMZ dh fVIif.k;ka feuV~l esa 'kkfey dh tkuh pkfg,A ubZ lfpoh; cogent reasons for such occasions and Board observations for accepting may be incorporated in Minutes. In view of izFkkvksaa ds ykxw gksus ds ifjizs{; esa dEiuh lfpoky; dks ,tsUMk isilZ enforcement of revised Secretarial practices, Company is funs’kdksa ds le{k izLrqr djus esa lfpoh; ekun.Mksa dk tks fd dEiuh required to furnish agenda papers to the Directors by strictly vf/kfu;e 2013 ds [k.M 173¼3½ ds izko/kkuksa ds vuqlkj gSa] dM+kbZ ls observing Secretarial Standards read with provision of section ikyu djuk pkfg,A tgka rd lEHko gks Vscy ,tsUMk ls cpuk pkfg;s 173 (3) of The Companies Act, 2013. As far as possible placing rkfd funs’kdksa ds ikl le; ij ,tsUMk dks i<+us ds fy, i;kZIr volj table agendas are avoided so that the Directors have reasonable gksAß opportunity to read agendas well in time…” lfpoh; vkfMV fjiksVZ cSad }kjk mÙke dkjiksjsV xousZUl izFkkvksa dk The Secretarial Audit Report conform best Corporate vaxhÑr fd;k tkuk iq"V gksrk gSA Governance Practices are adopted by the Bank. Lkfpoh; ys[kk ijh{kd }kjk ;g iqf"V Hkh dh xbZ fd dEiuh dk funs’kd It was further confirmed by the Secretarial Auditor that the e.My dk;Zdkjh funs’kdksa] xSj&dk;Zdkjh funs’kdksa vkSj LorU= funs’kdksa Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors ds mfpr lUrqyu ds lkFk HkyhHkkafr xfBr gSA funs’kd e.My ds laxBu and Independent Directors. The changes in the composition of esa leh{kk vof/k ds nkSjku tks Hkh ifjorZu gqvk og cSaddkjh fofu;eu the Board of Directors that took place during the period under vf/kfu;e] 1949 vkSj dEiuh vf/kfu;e] 2013 ds izko/kkuksa ¼tgka dgha os review were carried out in compliance with the provisions of iz;ksT; gksa½ ds vuq#i gSA the Banking Regulation Act, 1949, and Companies Act, 2013 wherever Applicable. leLr funs’kdksa dks funs’kd e.My dh cSBd lqfuf’pr djus ds fy, Required notice is given to all Directors for scheduled Board uksfVl] dk;Zlwph vkSj dk;Zlwph ij foLr`r uksV de ls de lkr fnu and various Committees Meetings, and detailed agenda notes were sent at least seven days in advance, and a system exists igys Hksts x;s vkSj cSBd ls igys dk;Zlwph ds enksa ij vkxs vkSj lwpuk,a for seeking and obtaining further information and clarifications vkSj Li"Vhdj.k pkgus vkSj izkIr djus dh ,d O;oLFkk gS rkfd os cSBd on the agenda items before the meeting and for meaningful esa vFkZiw.kZ lgHkkfxrk dj ldsaA participation at the meeting. Lkfpoh; ys[kk ijh{kd us iqu% ;g iqf"V dh fd dEiuh esa mlds vkdkj It was further confirmed by the Secretarial Auditor that vkSj ifjpkyu ds vuq#i iz;ksT; dkuwu] fu;e] fofu;eu vkSj fn’kk there are adequate systems and processes in the company funsZ’kksa dh fuxjkuh vkSj vuqikyu lqfuf’pr djus ds fy;s Ik;kZIr izfdz;k commensurate with the size and operations of the company to monitor and ensure compliance with applicable laws, rules, vkSj O;oLFkk gSA regulations and guidelines. cSad ds ikl ,d lqifjHkkf’kr dkWjiksjsV lkekftd mÙkjnkf;Ro uhfr gS The Bank has a well defined Corporate Social Responsibility ,oa bl uhfr esa nh xbZ xfrfof/k;ka dkWjiksjsV lkekftd nkf;Ro desVh (CSR) Policy and the activities detailed in the said policy are ds ek/;e ls laiUu gksrh gSaA vkyksP; o"kZ ds nkSjku cSad us lekt ds executed through Corporate Social Responsibility (CSR) Committee. During the year under reference, the Bank has lrr fodkl ,oa HkykbZ ds fy, vius lh,lvkj izksxzke ds vUrxZr viuh taken effective steps to fulfil its commitment towards sustainable izfrc)rk dks iw.kZ djus ds fy, vkfFkZd lgk;rk LohÑr dj izHkkoh development and well being of the society by approving financial dne mBk, gSaA cSad us uSuhrky ftys ds lqnwj xkao esa ihus ds ikuh dh assistance under its CSR programme. It has approved projects relating to supply of potable water in remote village of Nainital O;oLFkk] xzkeh.k [ksyksa dks izksRlkgu] ßLoPN Hkkjr fe’kuÞ esa Hkkxhnkjh ds district, encouraging rural sports, promoting sanitation through }kjk LoPNrk dks izksRlkgu ,oa lk{kjrk Lrj ds mUu;u ds dk;Zdykiksa contribution under “Swatch Bharat Mission” and supporting dks izksRlkgu vkfn ;kstukvksa dks LohÑr fd;k gSA bl o"kZ cSad us bl activities for upliftment of literacy level etc. During the year, the Bank has approved projects worth ` 26.52 lac. A number of en esa :- 26-52 yk[k dh ;kstuk,sa LohÑr dhaA blds vrfjä vU; other projects received by the Bank could not secure approval ;kstuk,sa Hkh izkIr gqbZ tks dh cSad dh lh,lvkj uhfr ds vuq:i u gksus of the CSR committee as they did not confirm to the objectives ds dkj.k LohÑr ugha dh xbZ cSad vkus okys le; esa lh,lvkj ;kstuk laid down by the CSR Policy of the Bank. However, the Bank shall continue its pursuit to enhance participation under CSR

27 funs’kdksa dh fjiksVZ Directors’ Report ds vUrZxr vius iz;klksa dks c<+k,sxk rkfd lekt ds lrr~ fodkl ds programme in the coming years so as to keep its commitment fy, dk;Z fd;k tk ldrs gSaA towards sustainable growth and development of social objectives at large. vkHkkj ACKNOWLEDGEMENT funs’kd eaMy] Hkkjr ljdkj vkSj Hkkjrh; fjtoZ cSad dks egRoiw.kZ The Board of Directors expresses its sincere thanks to the fn’kkfunsZ’k ,oa lg;ksx ds fy;s /kU;okn nsrk gSA funs’kd eaMy cSad vkWQ Government of India, Reserve Bank of India for the valuable guidance and support. The Board also acknowledges with cM+kSnk ds izfr Hkh mlds }kjk lHkh egRoiw.kZ eqn~nksa ij fn;s x;s cgqewY; gratitude and especially thanks Bank of Baroda for their valuable fn’kk funsZ’k ,oa mfpr le; ij lg;ksx ds fy,] ftlds fcuk orZeku guidance and well-timed support on all vital issues, without ifj.kke izkIr djuk laHko u gksrk] ÑrKrkiwoZd vkHkkj O;Dr djrk gSA which it would not have been feasible for the Bank to achieve funs’kd e.My cSad ds lEekuuh; va’k/kkjdksa] xzkgdksa vkSj vU; lHkh present growth. The Board also records its sincere gratitude to fgr /kkjdksa ds izfr muds lrr~ laj{k.k ds fy, vkHkkj O;Dr djrk gSA the Bank’s valuable shareholders, esteemed customers and all other stakeholders for their continued patronage. The Board funs’kd e.My cSad ds izR;sd deZpkjh dh mlds }kjk iznÙk lefiZr also expresses its appreciation for every employee of the Bank lsokvksa ds fy, Hkh iz’kalk Hkh djrk gSA for their dedicated service. funs’kd eaMy Hkkjrh; cSad la?k ds izfr Hkh mudks Hksts x, elyksa ij The Board of Directors place on records the support and muds lg;ksx ,oa fn’kk&funsZ’k ds fy, vkHkkj O;Dr djrk gSA guidance received from IBA on the issues referred by the Bank. funs’kd eaMy dh vksj ls rFkk mlds fy,] FOR AND ON BEHALF OF THE BOARD OF DIECTORS

LFkku % uSuhrky ¼eqds’k 'kekZ½ PLACE: NAINITAL (MUKESH SHARMA) fnukad % 07 ebZ] 2016 v/;{k ,oa eq[; dk;Zdkjh vf/kdkjh DATE: 07 May, 2016 CHAIRMAN & CEO

Blood donation camp organised on Foundation Day of the Bank at Nainital.

28 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures

csly III fiyj 3 izdVhdj.k ¼31-03-2016½ Basel III Pillar 3 Disclosures (31.03.2016) lkj.kh Mh,Q& 1% ykxw fd;s tkus dk nk;jk Table DF- 1: Scope of Application cSafdax lewg ds izèkku dk uke] ftl ij ;g

laLFkk dk uke@ D;k ml gLrh dks Lkesdu ds rjhds D;k ml gLrh dks Lkesdu ds Lkesdu ds rjhds ;fn lesdu ds dsoy fuxeu ns'k lesdu ds ys[kkadu dks Li"V djsa lesdu ds fofu;ked rjhds dks Li"V esa varj ds dkj.kksa ,d gh nk;js esa nk;js ds varxZr nk;js ds varxZr djsa dks Li"V djsa lesfdr fd;k x;k gks] lfEefyr fd;k x;k gS lfEefyr fd;k x;k gS rks mlds dkj.k Li"V ¼gka@ugha½ ¼gka@ugha½ djsaA

Whether the entity Whether the entity Explain the Explain the reasons Name of the is included under Explain the is included under Explain the reasons for if consolidated entity/(Country of accounting scope of method of regulatory scope of method of difference in under only one Incorporation) consolidation consolidation consolidation consolidation method of of the scopes of (Yes/No) (Yes/No) consolidation consolidation 'kwU;@Nil

[k- lesdu ds ys[kkadu vkSj fofu;ked nksuksa nk;jksa ds varxZr b. List of group entities not considered for consolidation lesdu gsrq fopkj esa u fy, x, lewg gfLr;ksa dh lwphA both under the accounting and regulatory scope of consolidation

,slh dksbZ lewg gLrh ugha gS ftls lesdu ds ys[kkadu vkSj fofu;ked There are no entities in the group which are considered for nksuksa nk;jksa ds varxZr lesdu gsrq fy;k x;k gksA consolidation under both accounting and regulatory scope of consolidation. ii) ek=kRed izdVhdj.k ii) Quanitative Disclosures: x- lesdu gsrq fopkj esa fy, x, lewg gfLr;ksa dh lwph c. List of group entities considered for consolidation ,slh dksbZ lewg gLrh ugha gS ftls fy;k x;k gksA There is no such entity which may be considered for consolidation.

?k- lHkh vuq"kafx;ksa esa iwath esa dfe;kas dh ldy jkf'k ftls d. The aggregate amount of capital deficiencies in all lesdu ds fofu;ked nk;js esa 'kkfey ugha fd;k x;k gS] subsidiaries which are not included in the regulatory vFkkZr~ ftls ?kVk;k x;k gS % scope of consolidation i.e. that are deducted cSad dh ,slh dksbZ vuq"kaxh ugha gS blfy, fdlh vuq"kaxh esa iwath ds vHkko Bank does not have any subsidiary as such there is no scope of dk volj ugha gSA capital deficiency in any of subsidiary. ³ chek laLFkkvksa esa cSad ds dqy fgrksa dh ldy jkf'k;ka ¼tSls e. The aggregate amounts (e.g. current book value) of the Bank’s total interests in insurance entities, which are orZeku cgh ewY;½] tks tksf[ke Hkkfjr gSa % risk-weighted cSad chek laLFkkvksa esa dksbZ #fp ugha j[krk gSA The bank has no interest in insurance entity. p- cSafdax lewg ds Hkhrj fufèk;ka ;k fofu;ked iwath ds varj.k f. Any restrictions or impediments on transfer of funds or ij dksbZ izfrcaèk ;k ckèkk,aA regulatory capital within the banking group dksbZ izfrcUèk ugha gSA There is no restriction.

29 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures lkj.kh Mh,Q&2 % iwath Ik;kZIrrk Table DF-2: Capital Adequacy i) xq.kkRed izdVhdj.k i) Qualitative Disclosures d½ cSad us ,d larqfyr tksf[ke izcUèku lajpuk cukbZ gS ftlesa iwath a) The Bank has put in place a robust Risk Management dks b"Vre cukus vkSj ykHk dks lokZfèkd djus vFkkZr~ miyCèk iwath ls Architecture with due focus on Capital optimization and on profit lokZfèkd O;olk; djus ftlls cnys esa lokZfèkd ykHk ;k bfDoVh ls maximization, i.e. to do maximum business out of the available okilh gksxh ij è;ku dsfUnzr fd;k gSA cSad csly III dh #ijs[kk ds capital which in turn maximize profit or return on equity. Bank vuqlkj oSf'od #i ls LohÑr etcwr tksf[ke O;oLFkk tks lalkèkuksa ds is benchmarking on globally accepted sound risk management dq'ky] lkE;iw.kZ vkSj foosdiw.kZ vkoaVu esa l{ke gS dks cSUp ekdZ cuk jgk system, conforming to Basel III framework, enabling a more gSA efficient equitable and prudent allocation of resources. iwath ;kstuk izfdz;k esa cSad fuEufyf[kr dh leh{kk djrk gS%& In Capital Planning process the bank reviews: • cSad dh pkyw iwathxr vko';drk • Current capital requirement of the Bank • O;kolkf;d O;wg jpuk vkSj tksf[ke vfHk#fp ds lacaèk esa yf{kr vkSj • The targeted and sustainable capital in terms of business Ik;kZIr iwath strategy and risk appetite. iwaath dh vko';drk dh fuxjkuh 'kh"kZLFk dk;Zikydksa dh tksf[ke izcUèku Capital needs are monitored periodically by the Risk lfefr djrh gSA iwaath dh vko';drk dk vfxzeksa] fuos'kksa esa o`f) dh Management Committee comprising Top Executives. Capital mEehn dks è;ku esa j[krs gq, iwokZuqeku yxk;k tkrk gSA requirement is projected annually considering the expected growth in advances, investments etc. cSad ,Dlikstjksa] dkjksckjksa bR;kfn ds ewY; esa gkfu ds tksf[ke dks laHkkyus Bank maintains capital to cushion the risk of loss in value of ds fy, iwath cuk;s j[krk gSA mldh lHkh tksf[keksa ds O;kid ewY;kadu exposure, businesses etc. so as to protect the depositors ,oa mls izysf[kr djus rFkk mlds fy, iwath ds vkoaVu dh iqf"V gsrq ,d and general creditors against losses. Bank has a well defined lqifjHkkf"kr vkarfjd iwath i;kZIrrk ewY;kadu uhfr (ICAAP) gSA Internal Capital Adequacy Assessment Policy (ICAAP) to comprehensively evaluate and document all risks.

Hkkjrh; fjtoZ cSad ds fn’kkfunsZ’kksa ds vuqlkj cSad us vfxze tksf[ke In line with the guidelines of the Reserve Bank of India, the ds fy, ekudhÑr i)fr] ifjpkyu tksf[ke ds fy, vkèkkjHkwr ladsrd Bank has adopted Standardised Approach for Credit Risk, i)fr rFkk lhvkjvkj dh x.kuk ds fy, cktkj tksf[ke gsrq ekudhÑr Basic Indicator Approach for Operational Risk and Standardized vkofèkd i)fr viuk;h gSA Duration Approach for Market Risk for computing CRAR. iwathxr vko’;drk vkfFkZd ifjos’k] fu;ked t:jrsa rFkk cSad dh The capital requirement is affected by the economic environment, xfrfofèk;ksa ls gksus okys tksf[ke ls izHkkfor gksrh gSA cSad dh iwathxr the regulatory requirement and by the risk arising from bank’s activities. The purpose of capital planning of the bank is to ensure vk;kstuk dk mís’; vkfFkZd ifjfLFkfr;ksa ds ifjorZu ds le;] ;gka rd the adequacy of capital at the times of changing economic fd vkfFkZd eanh ds nkSj esa Hkh iwath dh i;kZIrrk dks lqfuf’pr djuk gSA conditions, even at times of economic recession. In capital iwathxr vk;kstu dh izfØ;k esa cSad fuEufyf[kr dh leh{kk djrk gS % planning process the bank reviews:

• cSad dh ekStwnk iawthxr vko';drkA • Current capital requirement of the bank.

• dkjksckj j.kuhfr rFkk tksf[ke izo`fÙk ds lanHkZ esa yf{kr rFkk • The targeted and sustainable capital in terms of business èkkj.kh; iawthA strategy and risk appetite. • Hkfo"; dh iwathxr vk;kstuk vxys rhu o"kZ dks è;ku esa j[kdj dh • The future capital planning is done on a three-year outlook. tkrh gSA

30 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures ii) ek=kRed izdVhdj.k ii) Quantitative Disclosures

Amount S. Øa ¼jkf'k djksM+ esa½ Items (` in Crores) en No. la- 31-03-2016 31.03.2016 ¼[k½ _.k tksf[ke ds fy, iwath vis{kk,a% (b) Capital requirements for Credit Risk • Portfolios subject to Standardized 240.96 240.96 • ekudhÑr n`f"Vdks.k ds vèkhu lafoHkkx Approach • izfrHkwfrdj.k ,Dlikstj ---- • Securitization Exposures ---- ¼x½ Ckktkj tksf[ke ds fy, iwath vis{kk,a (c) Capital requirements for Market Risk • ekudhÑr vofèk n`f"Vdks.k 30.29 • Standardized Duration Approach 30.29 • C;kt nj tksf[ke 23.97 • Interest Rate Risk 23.97 • Foreign Exchange Risk (including • fons'kh eqnzk tksf[ke ¼Lo.kZ lfgr½ ------Gold) • bfDoVh tksf[ke 6.32 • Equity Risk 6.32 Capital requirements for Operational (d) ¼?k½ IkfjpkyukRed tksf[ke ds fy, iwath vis{kk,a Risk • ewy ladsrd n`f"Vdks.k 34.32 • Basic Indicator Approach 34.32 lkekU; bfDoVh fV;j 1] fV;j 1 rFkk dqy Common Equity Tier 1, tier 1 and Total ¼³½ (e) iwath vuqikr % Capital ratios: • Lkesfdr lewg ds fy, • Group CRAR • lhbZVh 1 vuqikr ---- • CET 1 Ratio ---- • fV;j 1 vuqikr ---- • Tier 1 Ratio ---- • fV;j 2 vuqikr ---- • Tier 2 Ratio ---- • lhvkj,vkj ---- • CRAR ---- • ,dy lhvkj,vkj • Stand alone CRAR • lhbZVh 1 vuqikr 15.25% • CET 1 Ratio 15.25% • fV;j 1 vuqikr 15.25% • Tier 1 Ratio 15.25% • fV;j 2 vuqikr 0.44% • Tier 2 Ratio 0.44% • lhvkj,vkj 15.69% • CRAR 15.69% lkj.kh Mh,Q&3 % _.k tksf[ke Table DF-3: Credit Risk Xkq.kkRed izdVhdj.k (i) Qualitative Disclosures d½ _.k vkfLr;ksa dks oxhÑr djus ds fy, cSad dh fuEufyf[kr uhfr a. The policy of the bank for classifying bank’s loan assets is gS %& as under: xSj fu"iknd vkfLr;ka ¼,uih,½ % xSj fu"iknd vkfLr;ka ¼,uih,½ NON PERFORMING ASSETS (NPA): A non performing ,slk _.k ;k vfxze gS tgk¡ & asset (NPA) is a loan or an advance where;

• eh;knh _.k ds lanHkZ esa 90 fnu ls vfèkd dh vofèk ds fy, • interest and/ or installment of principal remain overdue C;kt rFkk@;k ewyèku dh fd’r] vfrns; gks tkrh gSA for a period of more than 90 days in respect of a term loan, • vksoj Mªk¶V@udn mèkkj ¼vksMh@lhlh½ ds lacaèk esa [kkrk • the account remains ‘out of order’ in respect of an vfu;fer ¼vkmV vkWQ vkMZj½ jgk gSA Overdraft/Cash Credit (OD/CC), • [kjhns x, rFkk cÍs [kkrs Mkys x, fcyksa ds lanHkZ esa 90 fnuksa • the bill remains overdue for a period of more than 90 ls vfèkd dh vofèk ls cdk;k vfrns; fcyA days in the case of bills purchased and discounted, • vYikofèk Qlyksa ds fy, _.k ds ekeys esa ewy jkf’k dh fd’r • the installment of principal or interest thereon remains vFkok ml ij cdk;k C;kt nks Qlyh ekSleksa ls vfrns; gks overdue for two crop seasons for short duration crops, tkrk gSA 31 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures

• yEch vofèk dh Qlyksa ds fy, _.k ds ekeys esa ewy jkf’k • the installment of principal or interest thereon remains dh fd’r vFkok ml ij cdk;k C;kt ,d Qlyh ekSle ls overdue for one crop season for long duration crops. vfrns; gks tkrk gSA fdlh Hkh vks-Mh-@lh-lh- [kkrs dks ml fLFkfr esa Þ[kjkcß [kkrk ekuk An OD/CC account is treated as ‘out of order’ if the outstanding tkrk gS tc [kkrs esa LohÑr [email protected] lhek ls vfèkd jkf’k fujUrj balance remains continuously in excess of the sanctioned limit/ :i ls cdk;k jgrh gksA mu ekeyksa esa] tgk¡ ewy ifjpkyuxr [kkrs esa drawing power. In cases where the outstanding balance in the cdk;k 'ks"k LohÑr [email protected] lhek ls de jgrk gks ysfdu tgka principal operating account is less than the sanctioned limit/ drawing power, but there are no credits continuously for 90 days rqyu&i= dh rkjh[k dks fujUrj 90 fnuksa ls dksbZ tek u fd;k x;k as on the date of Balance Sheet or credits are not enough to gks ;k tek dh xbZ jkf’k mlh vofèk esa yxk;s tk jgs C;kt dh iwfrZ ds cover the interest debited during the same period, these accounts fy, i;kZIr u gks ,sls [kkrs [kjkc le>s tkrs gSaA are treated as ‘out of order’ . fdlh Hkh _.k lqfoèkk ds vUrxZr cSad dks ns; fdlh Hkh jkf’k dks ml An amount due to the bank under any credit facility is ‘overdue’ if fLFkfr esa Þvfrns;ß ekuk tkrk gS tc bldk cSad }kjk fuèkkZfjr ns; it is not paid on the due date fixed by the bank. rkjh[k dks Hkqxrku ugha fd;k tkrk gSA cSad dh xSj fu"iknd vkfLr;ksa dks vkxs fuEufyf[kr rhu Jsf.k;ksa esa Non Performing Assets of the Bank are further classified in to oxhZÑr fd;k x;k gS & three categories as under: voekud vkfLr;ka Sub standard Assets voekud vkfLr ls vfHkizk;] ,slh vkfLr;ksa ls gS tks 12 eghuksa ;k A sub standard asset would be one, which has remained NPA mlls de le; ls xSj fu"iknd vkfLr jgh gksA olwyh lacaèkh lHkh for a period less than or equal to 12 months. All the recovery mik;&voekud vfLr;ksa ls Hkh lEcfèkr gSaA ;fn lEiw.kZ vfrns; udn measures are relevant in substandard assets also. If the entire olwyh ds :i esa izkIr gks tkrk gS rks [kkrs dks rqjUr gh ekud Js.kh ds overdues are recovered by way of cash recovery, the account vUrxZr vixzsM fd;k tk ldrk gSA blh izdkj ;fn dksbZ [kkrk rduhdh can be upgraded to standard category immediately. Similarly, if dkj.kksa ls ,uih, ds :i esa oxhZÑr gks tkrk gS rks mls rduhdh dkj.kksa an account is classified as NPA due to technical reasons, the ds lacaèk esa ÞDyh;jsalß izkIr gksus ij vixzsM fd;k tk,xkA account shall be upgraded on clearance of technical reasons. lafnXèk vkfLr;ka Doubtful Assets fdlh Hkh vkfLr dks 12 eghuksa rd voekud Js.kh esa cus jgus dh fLFkfr An asset would be classified as doubtful if it remained in the sub esa lafnXèk ds :i esa oxhÑr fd;k tk,xkA ,sls voekud rFkk lafnXèk standard category for 12 months. Substandard and Doubtful [kkrs tks iqu%lkj.kh c) gks ldrs gksa@ftudh vofèk dk iqufuZèkkZj.k accounts which are subjected to restructuring/rescheduling, fd;k tk ldrk gks dks vofèk ds nkSjku [kkrs ds larks"ktud dk;Z can be upgraded to standard category only after a period of one fu"iknu dks ns[krs gq, ml rkjh[k tc C;kt vFkok ewy jkf’k dk izFke year after the date when first payment of interest or of principal, Hkqxrku fd;k x;k gks rFkk buesa ls tks Hkh igys gks ls ,d o"kZ dh vofèk whichever is earlier, falls due, subject to satisfactory performance ds i’pkr mDr ekud Js.kh esa vixzsM fd;k tk ldrk gSA during the period. gkfudj vkfLr;ka Loss Assets gkfudj vkfLr ls vfHkizk; ,slh vkfLr ls gS tgka gkfu cSad vFkok vkarfjd A loss asset is one where loss has been identified by the bank vFkok ckg; ys[kk ijh{kdksa vFkok Hkkjrh; fjtoZ cSad ds fujh{k.k }kjk or internal or external auditors or the RBI inspection. In Loss irk pyh gksA gkfu vkfLr;ksa esa miyCèk izfrHkwfr dk olwyh ;ksX; ewY; assets, realizable value of security available is not more than cdk;k 'ks"k@ns;ksa dk 10 % ls vfèkd ugha gksrk gSA pwafd izfrHkwfr cSdvi 10% of balance outstanding/ dues. Since security back up will miyCèk ugha gksrk gS vr% iqufuZèkkZj.k@iquLFkkZiu ;fn ;g vko’;d gks not be available, the restructuring/ rehabilitation, if required, is rks bl ij vfr lkoèkkuhiwoZd fopkj fd;k tkrk gSA considered with utmost care. dk;Zuhfr ,oa izfØ;k,a Strategies and Processes cSad dh] _.k tksf[ke izcaèku ds egRoiw.kZ {ks=ksa dks 'kkfey djrs gq, iw.kZ The bank has a well defined Loan Policy & Investment Policy :i ls ifjHkkf"kr _.k uhfr ,oa fuos’k uhfr gS tks fuEukuqlkj gS % covering the important areas of credit risk management as under:

32 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures

• vFkZO;oLFkk ds fofHkUu {ks=ksa esa _.kdÙkkZvksa ds fofHkUu izdkj vkSj • Exposure ceilings to different sectors of the economy, muds xzqi vkSj m|ksx ds fy, ,Dlikstj lhek,aA different types of borrowers and their group and industry.

• _.k forj.k esa mfpr O;ogkj lafgrkA • Fair Practice Code in dispensation of credit. • Discretionary Lending Powers for different levels of authority • cSad ds fofHkUu Lrj ds izkfèkdkfj;ksa ds fy, _.k iznku djus lacaèkh foosdkfèkdkjA of the bank. • _.k forj.k ds lacaèk esa izfØ;k,a&LohÑfr iwoZ fujh{k.k] jí djuk] • Processes involved in dispensation of credit – pre sanction ewY;kadu] LohÑfr] nLrkosthdj.k] ekuhVfjax vkSj olwyhA inspection, rejection, appraisal, sanction, documentation, monitoring, and recovery. • ewY; fuèkkZj.k • Fixation of pricing. cSad dk _.k tksf[ke n’kZu] lajpuk vkSj iz.kkyh The Credit Risk philosophy, architecture fuEukuqlkj gS % and systems of the bank are as under

_.k tksf[ke n’kZu % Credit Risk Philosophy:

• cSad ds _.kksa rFkk muls izkfIr esa vR;fèkd o`f) djuk rkfd cSad • To Optimise the Credit and return envisaged in order that the ds lalkèkuksa dh lqj{kk o dkiksZjsV o`f) ,oa le`f) lqfuf'pr gksus ds Economic Value Addition to Shareholders is maximized and lkFk lHkh fgr èkkjdksa ds fgr lajf{kr gksa ,oa 'ks;j èkkjdksa dks vkfFkZd the interests of all the Stakeholders are protected alongside ykHk esa c<+ksÙkjh gksA ensuring corporate growth and prosperity with safety of bank’s resources.

• cSad vius foÙkh; lalkèkuksa dks Øfed :i ls lqO;ofLFkr vkSj dkjxj • To regulate and streamline the financial resources of the cuk;sa rkfd fofHkUu pSuyksa dks ijLij tksM+k tk lds rFkk cSad ds bank in an orderly manner to enable the various channels to lkekU; y{;ksa vkSj mís';ksa dh izkfIr dh tk ldsA incline and achieve the common goal and objectives of the Bank.

• vFkZO;oLFkk dh fofHkUu jk"Vªh; izkFkfedrkvksa dks ;kstukc)

• m|eokj _.k laLÑfr fodflr djuk vkSj ifjpkyu LVkQ dks • To instill a sense of credit culture enterprise-wide and to lg;ksx iznku djukA assist the operating staff.

• fofHkUu _.k [k.Mksa dks vko';drk ij vkèkkfjr vkSj le; ij _.k • To provide need-based and timely availability of credit to lqfoèkk miyCèk djokukA various borrower segments.

• _.k izcaèku dh n{krk tSls LohÑfriwoZ] LohÑfr mijkar fuxjkuh] • To strengthen the credit management skills namely pre- i;Zos{k.k vkSj vuqorhZ dk;Zokgh ds mik; dks lqn`<+ cukuk rkfd cSad sanction, post-sanction monitoring, supervision and follow- esa dkjxj _.k laLÑfr fodflr dh tk lds rFkk _.k lafoHkkx dks up measures so as to promote a healthy credit culture and xq.koÙkk ;qDr cuk;k tk ldsA maintain quality credit portfolio in the bank.

• xq.koÙkkiw.kZ ewY;kadu ,oa xfr ds lkFk foLr`r ekxZfunsZ'kksa dh iw.kZ • To deal with credit proposals more effectively with quality vuqikyuk ds lkFk _.k izLrkoksa ij vfèkd izHkkoiw.kZ

33 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures cSad dh _.k tksf[ke izcaèku dh lajpuk vkSj iz.kkfy;ka Architecture and Systems of the Bank • cSad esa tksf[ke izcaèku dk;Zdykiksa dh ns[kjs[k rFkk leUo; dk;ksZa ds • A Sub-Committee of Directors has been constituted by fy, cksMZ }kjk funs'kdksa dh ,d milfefr dk xBu fd;k x;k gSA the Board to specifically oversee and co-ordinate Risk Management functions in the bank.

• _.k uhfr;ksa lfgr foHkUu _.k tksf[ke uhfr;ksa dks rS;kj djus vkSj • Credit Policy Committee has been set up to formulate and mu dk fØ;kUo;u lqfuf'pr djus vkSj cSad ds tksf[ke izcaèku dk;kZsa implement various credit risk strategy including lending dh fu;fer ns[k&js[k djus ds fy, _.kuhfr lfefr dk xBu fd;k policies and to monitor Bank’s Risk Management function on x;k gSA a regular basis.

• _.k izLrkoksa ds ekudksa] foÙkh; izlafonkvksa] jsfVax ekudksa rFkk • Formulating of policies on standards for credit proposals, caspekdZ ds lacaèk esa ekud uhfr;ka rS;kj djukA financial covenants, rating standards and benchmarks.

• _.k foHkkx fuèkkZfjr lhekvksa ds Hkhrj igpku] eki] ns[kjs[k rFkk • Credit Department deal with identification, measurement, _.k tksf[ke fu;a=.k lacaèkh dk;Z ns[krk gSA monitoring and controlling credit risk within the prescribed limits.

• cksMZ@fu;kedksa vkfn }kjk rS;kj fd;s x;s tksf[ke iSjkehVlZ rFkk • Enforcement and compliance of the risk parameters and foosdiw.kZ lhekvksa dks ykxw djuk rFkk mudk vuqikyu lqfuf'pr prudential limits set by the Board/regulator etc., djukA

• tksf[ke ewY;kadu iz.kkfy;ksa dks rS;kj djuk] ,e vkbZ ,l dks fodflr • Laying down risk assessment systems, developing MIS, and djuk vkSj _.k lafoHkkx dh xq.koÙkk dh ns[k&js[k] leL;kvksa dh monitoring quality of loan portfolio, identification of problems, igpku] dfe;ksa esa lqèkkj djukA correction of deficiencies. • Improving credit delivery system upon full compliance of laid • rS;kj fd, x, fu;eksa vkSj fn'kk funsZ'kksa dh iw.kZ :i ls vuqikyuk down norms and guidelines. ds fy, _.k lqiqnZxh iz.kkyh esa lqèkkj ykukA tksf[ke fjiksZfVax vkSj@vFkok vkdyu i)fr dk {ks= The Scope and Nature of Risk Reporting o izÑfr and/or Measurement System cSad _.k ,Dlikstj ds fy, dM+h _.k tksf[ke jsfVax iz.kkyh 'kq: djus The Bank has in place a robust credit risk rating system for its tk jgk gSA _.k tksf[keksa dks de djus ds izHkkoh mik;ksa esa fdlh Hkh credit exposures. An effective way to mitigate credit risks is to vkfLr fo’ks"k esa tksf[ke dh laHkkoukvksa dk irk yxkuk] LoLFk vkfLr identify potential risks in a particular asset, maintain a healthy xq.koÙkk dks cuk;s j[kuk rFkk blds lkFk gh cSad dh lexz dk;Zuhfr vkSj asset quality and at the same time impart flexibility in pricing _.kuhfr ds vuq:i visf{kr tksf[ke fjVuZ iSjkehVlZ dks iwjk djus ds assets to meet the required risk-return parameters as per the fy, vkfLr;ksa dh dher yxkus esa yphykiu j[kuk 'kkfey gSA bank’s overall strategy and credit policy. ii) Ekk=kRed izdVhdj.k ii) Quantitative Disclosures

[k½ dqy ldy tksf[ke ,Dlikstj b) Total Gross Credit Risk Exposure

fooj.k jkf'k ¼djksM+ :- esa½ 31-03-2016 Particulars Amount (` in Crores) 31.03.2016 fufèk vkèkkfjr ,Dlikstj 2738.63 Fund Based Exposures 2738.63 fuèkhrj vkèkkfjr ,Dlikstj 88.39 Non-fund Based Exposures 88.39 dqqy ldy _.k ,Dlikstj 2827.02 Total Gross Credit Exposures 2827.02 x½ ,Dlikstjksa dk HkkSxksfyd forj.k% c) Geographic Distribution of Exposures:

jkf'k ¼djksM+ :- esa½ Amount (` in Crores) ,Dlikstj fufèk vkèkkfjr fuèkhrj vkèkkfjr Exposures Fund Based Non-fund Based ,Dlikstj ,Dlikstj Exposures Exposures ?kjsyw ifjpkyu 2738.63 88.39 Domestic operations 2738.63 88.39 vksojlht ifjpkyu ------Overseas operations ------dqqy 2738.63 88.39 Total 2738.63 88.39

34 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures

?k½ ,Dlikstjksa dk m|ksx ds izdkj ds vuqlkj forj.k% d) Industry Type Distribution of Exposures

¼jkf’k djksM+ esa½@(` in Crores)

dza- la- fufèk vkèkkfjr ¼vo'ks"k½ xSj fufèk vkfLr;ka ¼vo'ks"k½ dqy m|ksx@Industry S. No. Fund Based (O/s) Non Fund Based (O/S) Total A [kku ,oa [kuu Minning and Quarrying 14.21 0.04 14.25

A.1 dks;yk Coal 0.00 0.00 0.00

A.2 vU; Other 14.21 0.04 14.25

B QwM izkslsflax Food Processing 56.36 0.00 56.36

B.1 phuh Sugar 0.25 0.00 0.25

B.2 [kkus dk rsy vkSj ouLifr Edible Oils and Vanaspati 29.70 0.00 29.70

B.3 pk; Tea 0.00 0.00 0.00

B.4 dkQh Coffee 0.00 0.00 0.00

B.5 vU; Others 26.41 0.00 26.41

C is; inkFkZ Beverages 0.00 0.00 0.00

C.1 rEckdw o rEckdw mRikn Tobacco and Tobacco Products 0.00 0.00 0.00

C.2 vU; Others 0.00 0.00 0.00

D VSDlVkbZy Textiles 39.49 0.00 39.49

D.1 lwrh VSDlVkbZy Cotton Textile 1.10 0.00 1.10

D.2 twV VSDlVkbZy Jute Textile 0.01 0.00 0.01

D.3 gSUMhdzkQ~V@[kknh Handicraft/Khadi 20.21 0.00 20.21

D.4 flYd Silk 0.00 0.00 0.00

D.5 Åuh Woollen 0.00 0.00 0.00

D.6 vU; Others 18.17 0.00 18.17

VSDlVkbZy esa ls fLifuax feyksa dks Out of D to Spinning Mills 0.00 0.00 0.00

E peM+k vkSj peM+s ds mRikn Leather and Leather Products 1.86 0.00 1.86

F ydM+h vkSj ydM+h ds mRikn Wood and Wood Products 4.99 0.00 4.99

G dkxt vkSj dkxt ds mRikn Paper and Paper Products 12.27 0.00 12.27

H iSVªksfy;e Petroleum 0.83 0.00 0.83

I dSfedy vkSj dSfedy mRikn Chemicals and Chemical Products 17.40 0.10 17.50

I.1 QfVZykbZtj Fertilizers 0.56 0.00 0.56

I.2 nokbZ ,oa QkekZL;wfVdy~l Drugs and Pharmaceuticals 1.01 0.10 1.11

I.3 iSVªks &dSfedYl Petro-Chemicals 0.00 0.00 0.00

I.4 vU; Other 15.83 0.00 15.83

J jcM+ IykfLVd vkSj muds mRikn Rubber Plastic and their Products 34.09 0.00 34.09

K dkap ,oa dkap ds mRikn Glass and Glassware 1.98 0.00 1.98

L lhesaV vkSj lhesaV ds mRikn Cement and Cement Products 2.18 0.00 2.18

35 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures

dza- la- fufèk vkèkkfjr ¼vo'ks"k½ xSj fufèk vkfLr;ka ¼vo'ks"k½ dqy m|ksx@Industry S. No. Fund Based (O/s) Non Fund Based (O/S) Total M ewyHkwr èkkrq ,oa èkkrq mRikn Basic Metal and Metal Products 46.20 0.07 46.27

M.1 Ykksgk ,oa bLikr Iron and Steel 36.58 0.02 36.60

M.2 vU; èkkrq ,oa èkkrq mRikn Other Metal and Metal Products 9.62 0.05 9.67

N lHkh bUthfu;fjax All Engineering 35.69 5.81 41.50

N.1 bySDVªksfuDl Electronics 2.46 0.00 2.46

N.2 vU; bUthfu;fjax Other Engg 33.23 5.81 39.04

Okkgu] okgu ds iqtsZ vkSj VªkaliksVZ Vehicle, vehicle parts and Transport O 3.94 0.00 3.94 bfDoieSaV Equipments

P jRu ,oa vkHkw"k.k Gems and Jewellery 0.00 0.00 0.00

Q fuekZ.k Construction 13.22 0.00 13.22

R vkèkkjHkwr lqfoèkk,a Infrastructure 103.71 0.00 103.71

R.1 VªkaliksVZ Transport 48.71 0.00 48.71

R.1.1 jsyos Railways 0.00 0.00 0.00

R.1.2 jksMost Roadways 0.00 0.00 0.00

R.1.3 ,fo,'ku Aviation 0.00 0.00 0.00

R.1.4 okVjost Waterways 0.00 0.00 0.00

R.1.5 vU; VªkaliksVZ Others Transport 0.00 0.00 0.00

R.2 ÅtkZ Energy 0.00 0.00 0.00

R.2.1 fo|qr mRiknu&Vªkal&laforj.k Electricity gen-trans-distribution 0.00 0.00 0.00

R.2.1.1 ftlesa ls jkT; fctyh cksMZ Of which state electricity board 0.00 0.00 0.00

R.2.2 rssy Oil 0.00 0.00 0.00 xSl@,y-,u-th-¼Hk.Mkj.k ,oa R.2.3 Gas/LNG(Storage and Pipeline) 0.00 0.00 0.00 ikbiykbZu½

R.2.4 vU; Other 0.00 0.00 0.00

R.3 Lakpkj Telecommunication 55.00 0.00 55.00

R.4 vU; Others 0.00 0.00 0.00

R.4.1 okVj lsfuVs'ku Water Sanitation 0.00 0.00 0.00

vkèkkjHkwr lkekftd ,oa Social and Commercial Infrastruc- R.4.2 0.00 0.00 0.00 okf.kfT;d lqfoèkk,a ture

R.4.3 vU; Others 0.00 0.00 0.00

S vU; m|ksx Other Industries 76.61 0.47 77.08

leLr m|ksx ¼ldy½ ALL INDUSTRIES(Total) 465.03 6.49 471.52

vof'k"V vU; vfxze¼mijksDr Residuary other advances 2273.60 81.90 2355.50 esa lfEefyr ugha gS½ (not included above)

Lkdy _.k vkSj vfxze Total Loan & Advances 2738.63 88.39 2827.02

36 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures m|ksxksa dks ml _.k ,Dlikstj tgka cdk;k ,Dlikstj cSad ds lexz ldy _.k ,Dlikstj ds 5 izfr'kr ls vfèkd gS dk fooj.k fuEukuqlkj gS%

Credit Exposure of industries where outstanding exposure is more than 5% of the Total Gross Credit Exposure of the Bank is as follows:

dz- la- m|ksx dqy ,Dlikstj ¼#i;s djksM+ esa½ dqy _.k ,Dlikstj dk izfr'kr S.No. Industry Total Exposure (in Crores) % of Total Gross Credit Exposure 'kwU;@Nil

³½ ifjlEifRr;ksa dk vof'k"V lafonkxr ifjiDork fo'ys"k.k% e) Residual maturity breakdown of assets ¼#i;s djksM+ esa½@(` in Crores) o"kZ ls 1 2-7 8-14 15-28 29–90 3-6 6-12 1-3 3-5 5 tksM+@ vf/kd fnu@D fnu@D fnu@D fnu@D fnu@D eghus@M eghus@M o"kZ@Y o"kZ@Y TOTAL Over 5 Y Hkk-fj-cSa- ds ikl Cash & Bal- 75.00 1.44 14.94 3.21 19.03 37.24 61.65 81.34 2.50 0.65 297.00 udnh ,oa 'ks"k ances with RBI vU; cSadksa ds ikl Balances with 'ks"k rFkk ekax ,oa other Banks & 67.14 50.00 0.00 0.00 45.00 248.09 1078.09 15.11 0.00 0.00 1503.43 vYi lwpuk ij ns; Money at call & jkf'k short notice fuos'k Investments 30.00 9.53 0.00 0.00 287.58 0.00 89.07 84.03 84.72 796.48 1381.41 vfxze Advances 29.52 83.11 96.73 194.04 200.39 83.09 102.35 1399.80 215.00 282.05 2686.08 fLFkj vkfLr;ka Fixed Assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 17.96 17.96 vU; vkfLr;ka Other Assets 10.12 9.99 0.34 0.54 19.77 143.67 0.72 0.20 6.24 6.92 198.51 tksM+ Total 211.78 154.07 112.01 197.79 571.77 512.09 1331.88 1580.48 308.46 1104.06 6084.39

¼#i;s djksM+ esa½@(` in Crores) dz-la- vkfLr Js.kh@Asset Category tksM+@Amount S.No.

f) ,uih, ¼ldy½ % NPAs (Gross)*: 119.37

voekud Substandard 55.24

lafnXèk 1 Doubtful 1 11.73

lafnXèk 2 Doubtful 2 24.74

lafnXèk 3 Doubtful 3 7.39

gkfudj Loss 20.27

g) 'kq) ,uih, Net NPAs 27.73

h) ,uih, vuqikr NPA Ratios

ldy vfxzeksa esa ldy ,uih, Gross NPAs to gross advances (%) 4.42%

fuoy vfxze esa fuoy ,uih, Net NPAs to net advances (%) 1.05%

i) ,uih, ¼ldy½ esa mrkj&p<+ko Movement of NPA (Gross)

izkjafHkd 'ks"k Opening balance 77.41

37 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures

dz-la- vkfLr Js.kh@Asset Category tksM+@Amount S.No.

o`f)+ Additions 57.54

deh Reductions 15.58

vfUre 'ks"k Closing balance 119.37 j) ,uih, ds fy, izkoèkku esa mrkj& p<+ko Movement of provisions for NPAs

izkjafHkd 'ks"k Opening balance 77.41

o"kZ ds nksjku fd;k x;k izkoèkku Provisions made during the period 11.82

cV~Vs [kkrs Write offs 0.09

vfrfjDr izkoèkkuksa dks fudky nsuk Write back of excess provisions 0.00 izkoèkkuksa ds chp vUrj.kksa lfgr dksbZ Any other adjustments, including transfers between provisions 0.00 vU; lek;kstu

vfUre 'ks"k Closing balance 89.14 vk; fooj.k esa lhèks cqd fd;s x;s jkbV&vkQ 0.09 Write-offs that have been booked directly to the income statement vk; fooj.k esa lhèks cqd fd;s x;h olwfy;ka 0.14 Recoveries that have been booked directly to the income statement k) xSj fu"iknd fuos’k dh jkf’k Amount of Non-Performing Investments 0.00 xSj fu"iknd fuos’k ds fy, fd;s x;s l) Amount of provisions held for non-performing investment 0.00 izkoèkku dh jkf’k fuos’k ij ewY;gzkl gsrq izkoèkkuksa esa m) Movement of provisions for depreciation on investments mrkj&p<+ko

izkjafHkd 'ks"k Opening balance 1.08

vofèk ds nkSjku fd;k x;k izkoèkku Provisions made during the period 0.00

cÍs [kkrs Write-off 0.00

vfrfjDr izkoèkkuksa dks fudky nsuk Write back of excess provisions 1.08

vfUre 'ks"k Closing balance 0.00 n) eq[; m|ksx }kjk ;k izfri{kdkj izdkj% By major industry or counter type

,uih,@Amount of NPAs izkoèkku@Provision

5 'kh"kZ m|ksx Top 5 Industries 12.84 12.84 o) HkkSxksfyd {ks=okj fo'ys"k.k Geographic-wise breakup ldy ,uih,@ Gross NPA izko/kku@Provision

?kjsyw Domestic 119.37 89.14

(*Amount is net of interest suspense i.e. 1.67 cr.)

38 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures lkj.kh Mh,Q&4% _.k tksf[ke% ekudhÑr n`f"Vdks.k ds Table DF-4: Credit Risk Disclosures for portfolios vèkhu lafoHkkxksa ds fy, izdVhdj.k subject to Standardised Approach i) Xkq.kkRed izdVhdj.k% i) Qualitative Disclosures d½ ekudhÑr n`f"Vdks.k ds vèkhu lafoHkkxksa ds fy,% a) for portfolios under the Standardised Approach: cSad us fuEufyf[kr _.k ik=rk ,tsfUl;ksa dks _.k ik=rk fuèkkZj.k The Bank has recognized following credit rating agencies for vkSj ekudhÑr n`f"Vdks.k ds vkèkhu iwath izHkkx dh x.kuk ds fy, vkSj the purpose of rating of an exposure & assigning risk weights tksf[ke Hkkj fuèkkfjr djus ds fy, fuEufyf[kr _.k ik=rk fuèkkZj.k for computation of capital charge under standardized approach. lfefr;ksa dks Lohdkj fd;k gS&

?kjsyw _.k ik=rk fuèkkZj.k lfefr;ka& Domestic credit rating agencies:

• dszfMV ,ukfylst ,.M fjlpZ fyfeVsM (CARE) • Credit Analysis & Research Limited (CARE),

• fdzfly fyfeVsM • CRISIL Limited,

• bljk fyfeVsM • ICRA Limited,

• bf.M;k jsfVax¼iwoZ esa fQp bf.M;k½ • India Ratings (Formerly FITCH India)

• fczd odZ • Brickwork

• ,l,ebZvkj, • SMERA

,Dlikstjksa ds izdkj ftuds fy, izR;sd ,tsUlh dk mi;ksx fd;k Types of exposure for which each agency is used: x;k% mijksDr lHkh ,tsfUl;kas dks lHkh izdkj ds ,Dlikstj ds ik=rk fuèkkZj.k All the above agencies are recognized for rating all types of ds fy, Lohdkj fd;k gSA exposures. lkoZtfud fuxZe ik=rk fuèkkZj.kksa dks cSafdax cgh esa rqyuh; A description of the process used to transfer public issue ifjlaifRr;ksa ij varfjr djus gsrq iz;qDr izfdz;k dk o.kZu% ratings onto comparable assets in the banking books: • cSad mu vkfLr;ksa ftudh ifjiDork vofèk 1 o"kZ rd gS y?kq vofèk • Bank has used short term ratings for assets with maturity up dh ik=rk fuèkkZj.k rFkk mu vkfLr;ksa ds fy, ftudh ifjiDork to one year and long term ratings for assets maturing after 1 o"kZ ds ckn gS nh?kZ vofèk dh _.k ik=rk fuèkkZj.k Hkk-fj-cSa- }kjk one year as accorded by the approved external credit rating vuqeksfnr ckg~; _.k ik=rk fuèkkZj.k ,tsfUl;ksa dh jsfVax dks Lohdkj agencies. djrk gSA

• cSad us ,d _.k ik=rk fuèkkZj.k ,tsUlh dh ,d ,Dlikstj ds fy, • Bank has not used one rating of a CRA (Credit Rating _.k ik=rk fuèkkZj.k vkSj nwljh _.k ik=rk fuèkkZj.k ,tsUlh dh Agency) for one exposure and another CRA’s rating for an- nwljs ,Dlikstj mlh dkmUVj ikVhZ ds nwljs ,Dlikstj dks rc rd other exposure on the same counterparty unless only one Lohdkj ugha fd;k gS tc rd fd fn, x, ,Dlikstj ds fy, ,d rating is available for given exposure. _.k ik=rk fuèkkZj.k u miyCèk gksA • #-10 djksM+ ls vfèkd dh jkf'k ckg~; nj fuèkkZj.k ds vkèkhu gSA • Amount above ` 10 Crores are subject to external rating. • cSad us vuqeksfnr _.k ik=rk fuèkkZj.k ,tsfUl;ksa ls dsoy ekaxh xbZ • Bank has used only solicited rating from the recognized fuèkkZfjr nj dks Lohdkj fd;k gSA CRAs. ii) Ekk=kRed izdVhdj.k% ii) Quantitative Disclosures [k½ ekudhÑr n`f"Vdks.k ds vèkhu tksf[ke de djus ds ckn ,Dlikstj b) Amount of the Bank’s Exposures- Gross Advances (Rated dh jkf'k;ksa ds fy,] fuEufyf[kr rhu izeq[k tksf[ke lewagksa esa cSad & Unrated) in Major Risk Buckets -under Standardized dh cdk;k ¼ik=rk fuèkkZj.k fd, rFkk ik=rk fuèkkZj.k u fd,½ jkf'k Approach, after factoring Risk Mitigants (i.e. Collaterals): rFkk os ftudh dVkSrh dh x;h gS %

39 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures

,Dlikstj dh jkf’k ftlesa xSj fufèk vkèkkfjr Hkh lfEefyr gS ekudhÑr The amount of exposure including non-fund based after risk n`f"Vdks.k ¼nj fuèkkZfjr ;k fcuk nj fuèkkZfjr½ ds vkèkhu tksf[ke U;wuhdj.k mitigation subject to Standardized Approach (rated and unrated) ds ckn rhu cM+s tksf[ke lewgksa esa fuEukuqlkj gS % in the following three major risk buckets are as under: ¼jkf'k djksM+ #i;s esa½ Amount (` in Crores) Ø- fufèk vkèkkfjr fuèkhrj vkèkkfjr S. Fund Based Non–Fund Based fooj.k Particulars la- 31-03-2016 31-03-2016 No. 31.03.2016 31.03.2016

1 100 % tksf[ke Hkkj ls de 1589.99 0.00 1 Below 100 % risk weight 1589.99 0.00 2 100 % tksf[ke Hkkj 676.79 43.60 2 100 % risk weight 676.79 43.60 3 100 % tksf[ke Hkkj ls vfèkd 243.29 0.00 3 More than 100 % risk weight 243.29 0.00 4 dqy lhvkj,e dVkSrh 228.56 44.79 4 Total CRM Deducted 228.56 44.79 5 dqy ,Dlikstj 2738.63 88.39 5 Total Exposure 2738.63 88.39 lkj.kh Mh,Q&5 % _.k tksf[ke de djuk % ekudhÑr Table Df-5: Credit Risk Mitigation: Disclosures for n`f"Vdks.k ds fy, izdVhdj.k Standardized Approaches i) Xkq.kkRed izdVhdj.k i) Qualitative Disclosures cSad dh funs'kd e.My }kjk vuqeksfnr laikf'Zod uhfr gS ftlesa Policies and processes for collateral valuation and izfdz;k] mís';] laikf'Zod ds LohÑr izdkjksa vkSj #ijs[kk ftuesa management: The Bank is having a Board approved collateral management policy which lays down the process, objectives, izHkkoiw.kZ laikf'Zod izcaèku ds fy, mfpr izcUèku lwpuk O;oLFkk lfEefyr accepted types of collaterals and the framework including gS fufgr gSA laikf'Zod vkSj xkjfUV;ksa dks mfpr rjhds ls fy;k x;k vkSj suitable management information system for effective collateral fuEufyf[kr ds fy, fu;ksftr fd;k x;k gS%& management ,The Collaterals and guarantees properly taken and managed that would serve to:

• visf{kr udnh izokg dh vi;kZIrrk gksus vFkok u gksus ds dkj.k@_.k • mitigate the risk by providing secondary source of repay- lqfoèkk esa mèkkjdrkZ dh pwd gksus ij iquHkqZxrku ds xkS.k lzksr dks ment in the event of borrower’s default on a credit facility miyCèk djkds tksf[ke dks de djuk( due to inadequacy in expected cash flow or not; • pwd gksus ij iquHkZqxrku ds lzksr ij fu;U=.k izkIr djuk( • gain control on the source of repayment in the event of de- fault;

• mèkkjdrkZ dh Hkqxrku {kerk ds {kj.k ij igys gh psrkouh nsuk( • provide early warning of a borrower’s deteriorating repay- ment ability; and

• tksf[ke Hkkfjr vkfLr;ksa dks le{k j[kuk vksj cps gq, tksf[keksa esa • Optimize risk weighted assets and to address Residual Ik;kZIr #i ls deh ykukA Risks adequately. cSad vius ,Dlikstjksa esa _.k tksf[keksa dks de djus ds fy;s vusd Bank uses a number of techniques to mitigate the credit risks rduhdksa dk mi;ksx dj jgk gSA cSad dh laikf'Zod izcaèku izfdz;k vkSj to which it is exposed. Collateral Management process and cSad dk O;ogkj lewps dk;Zdykiksa ftuesa laikf'Zod ewY;ksa dh lqj{kk practices of the Bank cover the entire activities comprising vkSj laj{k.k] laikf'Zodksa vkSj xkjafV;ksa dh oSèkrk vksj ewY;kadu@vkofèkd security and protection of collateral value, validity of collaterals fujh{k.k lfEefyr gS dks vkosf"Vr djrh gSA and guarantees, and valuation /periodical inspection. ewY;kadu Valuation Assets obtained to secure the loans granted by the Bank are cSad }kjk fn;s x;s _.kksa dh lqj{kk ds fy;s izkIr dh xbZ vkfLr;ka cSad ds subjected to valuation by valuers empanelled by the Bank. iSuy esa j[ks x;s oSY;wvlZ }kjk fd;s x;s ewY;kadu ds vkèkhu gSaA [kkrksa Monetary limits of the accounts, asset classification of the dh ekSfnzd lhek,a] mèkkjdrkZ dh vkfLr;ksa dk oxhZdj.k tks ewY;kadu ds borrower, which is to be subjected to valuation, periodicity of vkèkhu gS] ewY;kadu dh vkofèkdrk cSad dh uhfr fn'kk funsZ'k ¼ikfylh valuation, are prescribed in the Banks’ policy guidelines. Bank xkbMykbUl½ esa fn;s x, gSaA reviews the guidelines on valuation periodically.

40 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures cSad }kjk yh xbZ laikf'Zod ds eq[; izdkjksa dk o.kZu Description of the main types of collateral taken by the Bank tksf[ke ds U;wuhdj.k ds fy, cSad }kjk lekU;r% iz;ksx esa ykbZ xbZ The collateral commonly used by the Bank as risk mitigants laikf'Zod vLrh;k¡ % comprises of

1- LVkWd] py e’khujh bR;kfn tSlh py vkfLr;k¡A 1. Moveable assets like stocks, moveable machinery etc. 2- Hkwfe] Hkou] IykaV rFkk e’khujh tSlh vpy vkfLr;k¡A 2. Immoveable assets like land, building, plant & machinery. 3- cSad dh LokfèkÑr tekjkf’k;k¡A 3. Bank’s own deposits 4- jk"Vªh; cpr izek.ki=] bafnjk fodkl i=] fdlku fodkl i=] 4. NSCs, IVPs, KVPs, Govt. Bonds, RBI Bonds, LIC policies, ljdkj ,oa Hkk-fj-cS- }kjk tkjh ck.M] ,yvkblh ikWfyfl;k¡ bR;kfnA etc. 5- xSj fufèk vkèkkfjr lqfoèkkvksa ds isVs udnh ekftZuA 5. Cash Margin against Non-fund based facilities 6. Gold Jewellery 6- Lo.kZ vkHkw"k.kA 7. Shares as per approved list 7- vuqeksfnr lwph ds vuqlkj 'ks;jA cSad dks izHkkfjr izfrHkwfr;ksa ds ewY;kadu ds lEcUèk esa cSad us lqLi"V uhfr The bank has well-laid out policy on valuation of securities rS;kj dh gSA cSad us Åij Øe la[;k 3 ls 6 ij mfYyf[kr izfrHkwfr;ksa charged to the bank. The Bank has applied securities mentioned dks _.k tksf[ke deh dkjd ds :i esa fy;k gSA at sr.no.3 to 6 above as Credit Risk Mitigants. xkajVhdrkZ dkmaVj ikVhZ ds eq[; izdkj vkSj mudh Main types of Guarantor counterparty and their fo'oluh;rk% creditworthiness: cSad ds _.k tksf[ke ds fo:) xkjaVjksa ds izeq[k izdkj fuEukuqlkj The main types of guarantors against the credit risk of the gS % bank are : • Individuals (Personal guarantees) • oS;fDrd ¼O;fDrxr xkjafV;k½ • Corporate • dkiksZjsV~l • Central Government • dsUnzh; ljdkj • • jkT; ljdkj State Government

• lhthVh,e,lbZZ • CGTMSE lhvkj,e laikf'oZd izfrHkwfr izeq[kr% cSad dh Lo;a dh tek jkf'k;ksa] CRM collaterals are mostly available in Loans Against Bank’s ljdkjh izfrHkwfr;ksa vkSj ,yvkbZlh ikWfyfl;ksa ds isVs _.kksa esa miyCèk gSaA Own Deposit and Loans against Government Securities, LIC Policies/ Shares. lhvkj,e izfrHkwfr;ka] xSj fufèk vkèkkfjr lqfoèkkvksa tSls xkjafV;ksa vkSj CRM securities are also taken in non fund based facilities like _.k&i=ksa esa Hkh yh tkrh gSaA Guarantees and Letters of Credit. ubZ iwath dh Ik;kZIrrk dh #ijs[kk ds vUrxZr iwath dh vko';drk Credit Risk Mitigation recognized by the Bank for the de djus ds fy, cSad }kjk viuk, x, _.k tksf[ke de djus purpose of reducing capital requirement under New Capital okys mik;% Adequacy Framework cSad us ubZ iwath dh Ik;kZIrrk dh #ijs[kk ds vUrxZr iwath dh vko';drk The Bank has recognized Cash, Bank’s own Deposits, Gold & Gold Jewellery as Credit Risk Mitigations for the purpose of de djus ds fy, udnh] cSad dh futh tekjkf'k] Lo.kZ vkSj lksus ds reducing capital requirement under the New Capital Adequacy tsoj dks Lohdkj fd;kA Framework.

41 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures ii) Ekk=kRed izdVhdj.k ii) Quantitative Disclosures ¼djksM+ #i;s esa½ Amount (` in Crores) Øa la- fooj.k 31-03-2016 S. No. PARTICULARS 31.03.2016 ¼[k½ vyx ls izdV fd;s x, izR;sd _.k tksf[ke 273.35 (b) The total exposure (after, where applicable, 273.35 iksVZQksfy;ks ds fy, dqy ,Dlikstj ¼tgka ykxw gks on- or off balance sheet netting) that is cov- ogka rqyu i= ;k rqyu i=srj usfVax ds ckn½ ftls ered by eligible financial collateral after the gs;jdV ykxw djus ds ckn ik= foRrh; laikf'Zod application of haircuts for each separately dis- }kjk fd;k x;k gksA closed credit risk portfolio. ¼x½ vyx ls izdV fd;s x;s izR;sd iksVZQksfy;ks ds fy, ---- (c) The total exposure (after, where applicable, ---- dqy ,Dlikstj ¼tgka ykxw gks ogka rqyu i= ;k on- or off balance sheet netting) that is cov- rqyu i=srj usfVax ds ckn½ tks xkjaVh@_.k Msfjos- ered by guarantees/credit derivatives (when- fVo ¼tgka Hkkjrh; fjtoZ cSad dh fofufnZ"V vuqefr ever specifically permitted by RBI) for each gks½ }kjk doj gksA separately disclosed portfolio lkj.kh Mh,Q&6 % izfrHkwfrdj.k ,Dlikstj % ekudhÑr Table DF-6: Securitization Exposures: Disclosures fofèk ds fy, izdVhdj.k for Standardized Approach i) Qualitative disclosures i) Xkq.kkRed izdVhdj.k The policy guidelines do not undertake any securitization uhfr lacaèkh fn'kk&funsZ'k fdlh izfrHkwfrdj.k ,Dlikstj dks xzg.k ugha exposures. djrhA ii) Quantitative Disclosures ii) Ekk=kRed izdVhdj.k % cSafdax cgh Banking Book

Øa- la- fooj.k 31-03-2016 S.No. Particulars 31.03.2016 'kwU; NIL

VªsfMax cgh% Trading Book

Øa- la- fooj.k 31-03-2016 S.No. Particulars 31.03.2016 'kwU; NIL cSad ds ikl 31&03&2016 dks izfrHkwfrÑr vkfLr dk dksbZ ekeyk ugha gSA The bank does not have any case of its assets securitised as on 31.03.2016. lkj.kh Mh,Q&7 % VsªfMax cgh esa cktkj tksf[ke% Table DF-7: Market Risk in Trading Book i) Xkq.kkRed izdVhdj.k i) Qualitative Disclosures cSad] cktkj tksf[ke dks ,slh laHkkO; gkfu esa oxhZÑr djrk gS tks cktkj The Bank defines market risk as potential loss that the Bank may ewY;ksa esa izfrdwy ifjfLFkfr;ksa ds dkj.k gks ldrh gSA incur due to adverse developments in market prices. cSad us Hkkjrh; fjtoZ cSad ds fn’kk&funsZ’kksa ds vuqlkj O;olk; lafoHkkx Bank has put in place a proper system for calculating capital ij cktkj tksf[ke ls lacafèkr iwath izHkkj dh x.kuk djus ds fy, charge on Market Risk on Trading Portfolio as per RBI ekudhÑr vofèk n`f"Vdks.k uked ,d leqfpr i)fr cukbZ gSA bl Guidelines, viz., Standardised Duration Approach. The capital izdkj vkadfyr iwath izHkkj dks tksf[ke Hkkfjr vkfLr;ksa esa :ikarfjr fd;k charge thus calculated is converted into Risk Weighted Assets. x;k gSA _.k tksf[ke ds fy, ldy tksf[ke Hkkfjr vkfLr;ksa] cktkj The aggregated Risk Weighted Assets for credit risk, market risk tksf[ke vkSj ifjpkyu tksf[ke dks lhvkj,vkj dk fuèkkZj.k djus ds fy, and operational risk are taken in to consideration for arriving at fglkc esa fy;k tkrk gSA the CRAR. The structure and organization of the relevant risk management lEcfUèkr tksf[ke izcUèku ds dk;Z dh lajpuk vkSj laxBu% cSad dh cktkj function: The Market Risk Management Structure in the Bank is tksf[ke izcUèku lajpuk fuEukuqlkj gS& as under:

42 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures

• funs'kd e.My • Board of Directors • funs'kd e.My dh izcUèku lfefr • Management Committee of the Board (MCB) • ,,y,e desVh • ALM Committee • • Tkksf[ke izcUèku lfefr Risk Management Committee ii) Quantitative Disclosures ii) Ekk=kRed izdVhdj.k% ¼djksM+ #i;s esa½ (` in Crore) Øa- iwath dh vko';drk dh jkf'k S. Amount of capital requirement fooj.k Particulars la- 31-03-2016 No. 31.03.2016 d C;kt nj tksf[ke 23.97 (a) Interest Rate Risk 23.97 [k bfDoVh fLFkfr ij tksf[ke 6.32 (b) Equity Position Risk 6.32 x fons’kh eqnzk tksf[ke ---- (c) Foreign Exchange Risk ---- lkj.kh Mh,Q&8 % ifjpkyu tksf[ke Table DF-8: Operational Risk i) Xkq.kkRed izdVhdj.k i) Qualitative Disclosures dk;Z ;kstuk,a ,oa izfdz;k,a% Strategies and processes : cSad dh ifjpkyu tksf[ke izcUèku izfdz;k ,d etcwr laxBukRed laLÑfr The Operational Risk Management process of the Bank is vkSj etcwr ifjpkyu izfdz;k] ftlesa dkjiksjsV ewY;] joS;k] l{kerk] driven by a strong organizational culture and sound operating vkarfjd fu;a=.k laLÑfr] izHkkoh vkarfjd fjiksfVZax vkSj vfuf'pr ;kstuk procedures, involving corporate values, attitudes, competencies, internal control culture, effective internal reporting and lfEefyr gSa }kjk lapkfyr gSA cSad esa ifjpkyu tksf[ke dss izHkkoh izcUèku contingency planning. Policies are put in place for effective ds fy, uhfr;ka cukbZ xbZ gSA management of Operational Risk in the Bank. lEcfUèkr tksf[ke izcUèku dk;ksaZ dh lajpuk vkSj laxBu% The structure and organization of the relevant risk management function

The Operational Risk Management Structure in the Bank is as cSad esa ifjpkyu tksf[ke izcUèku lajpuk fuEukuqlkj gS& under:

• funs'kd e.My • Board of Directors • funs'kd e.My dh izcUèku lfefr • Management Committee of the Board (MCB) • vkfLr izcUèku ns;rk lfefr • Asset Management Liability Committee • tksf[ke izcUèku lfefr • Risk Management Committee tksf[ke fjiksfVZax vkSj@;k ekius dh O;oLFkk dk {ks= vkSj LoHkko% The scope and nature of risk reporting and/or measurement systems tksf[ke fjiksfVZax esa 'kk[kk@dk;kZy; esa yksxksa] izfdz;k] rduhdh vkSj The Risk reporting consists of operational risk loss incidents/ ckg~; ?kVukvksa ls lEcfUèkr ifjpkyu tksf[ke ?kkVs dh ?kVuk,a lfEefyr events occurred in branches/offices relating to people, process, gSA technology and external events. tksf[ke dks de djus vkSj@;k 'kkar djus dh uhfr rFkk de Policies for hedging and/or mitigating risk and strategies djus@'kkar djus okyksa dh lrr~ izHkko'khyrk dh fuxjkuh ds and processes for monitoring the continuing effectiveness fy, izfdz;k,a% of hedges/mitigants Bank has put in place policies for management of Operational cSad us ifjpkyu tksf[ke izcUèku ds fy, uhfr;ka cukbZ gSA uhfr dh #i Risk management. The policy framework contains various js[kk esa ifjpkyu tksf[ke izcUèku tSls& fpUghdj.k] izcUèku] ifjpkyu aspects of Operational risk management such as identification, tksf[ke {ks=ksa dh fuxjkuh vkSj vYihdj.k ds fofHkUu igyw fufgr gSaA management, monitoring & mitigation of Operational risk areas. dk;Zdykiksa dh vkmVlksflZax esa fufgr tksf[ke dks de djus ds fy, cSad In order to address risks involved in Outsourcing of activities, us vkmVlksflZax tksf[ke izcUèku ds fy, uhfr;ka cukbZ gSaA bank has put in place policies for management of Outsourcing Risk. 43 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures ifjpkyuxr tksf[ke iwwath dk vkdyu% Operational Risk capital assessment cSad us ifjpkyu tksf[ke gsrq iwath vko';drkvksa dk vkdyu djus ds The Bank has adopted Basic Indicator Approach for calculating fy;s vkèkkjewy lwpd i|fr viuk;h gSA capital charge for Operational Risk. ii) Xkq.kkRed izdVhdj.k% ii) Quantitative Disclosures 31-03-2016 dks ifjpkyu tksf[ke ds fy;s #- 34-32 djksM+ dk iwath izHkkj Capital charge for operational Risk as on 31.03.2016 was ` jgk vkSj ifjpkyu tksf[ke ds fy;s #- 381-33 djksM+ dh tksf[ke Hkkfjr 34.32 Cr. And Risk Weighted Assets for Operational Risk as on vkfLr;ka jghaA 31.03.2016 was `381.33 Cr. lkj.kh Mh,Q&9 % cSafdax cgh esa C;kt nj tksf[ke Table DF-9: Interest Rate Risk in the Banking Book ¼vkbvkjvkjchch½ (IRRBB) i) Xkq.kkRed izdVhdj.k% i) Qualitative Disclosures cSafdax cgh esa C;kt nj tksf[ke ¼vkbvkjvkjchch½ Interest Rate Risk in Banking Book (IRRBB) C;kt nj tksf[ke og tksf[ke gS tgka cktkj C;kt nj esa ifjorZu Interest rate risk is the risk where changes in market interest cSad dh foRrh; fLFkfr dks izHkkfor djrk gSA pwafd cSad dk rqyu i= rates affect a bank’s financial position. As the bank holds rate sensitive on and off balance-sheets items of different maturity/ fofHkUu ifjiDork@iqu% dher] djSUlh] cktkj ,oa cSapekdZ njksa ds izfr repricing, currencies, markets and benchmark rates, and any laosnu'khy gksrk gS vkSj bu ekudksa esa dksbZ foijhr ?kV&c<+ cSad dks adverse movement in these parameters exposes bank to interest C;kt nj tksf[ke esa Mky nsrh gSA cSad dh cfg;ksa esa C;kt nj tksf[ke rate risk. Interest Rate Risk in Banking Book (IRRBB) reveals cSad dh vk; ij ¼y?kq vofèk dk izHkko½ vkSj 'kq) lEifRr ¼nh?kZ vofèk the impact on bank’s earnings (short-term impact) and net worth izHkko½ dks n'kkZrk gSAC;kt nj esa foijhr mrkj&p<+ko ds dkj.k bldk (long-term impact) due to adverse movement of interest rates ekiu ekfld vkèkkj ij fd;k tkrk gSA and is measured on a monthly basis. laxBukRed #ijs[kk% Organizational Framework cSad dh vkfLr ns;rk izcUèku lfefr¼,Ydks½] funs'kd e.My@ tksf[ke Asset Liability Management Committee (ALCO) of the Bank izcUèku lfefr }kjk LFkkfir tksf[ke lgu'khyrk ds vuqlkj fodkl] vk; is responsible for developing, implementing and managing nj izcUèku dk;Z;kstuk ds dk;kZUo;u vkSj izcUèku ds izfr mRrnk;h gSA interest rate risk management strategy as per the risk tolerance established by the Board of Directors/Risk Management Committee. dk;Z;kstuk vkSj izfdz;k,a% Strategies and Processes cSad mfpr ifjiDork feyku ds lkFk viuh mu vkfLr;ksa vkSj ns;rkvksa The Bank strives to match the price of its assets and liabilities dh dherksa ds feyku ds fy;s iz;kl djrk gS tks vyx&vyx le; coupled with proper maturity matching in-order to reduce the gap esa ifjiDo gks jgh gsSa ;k ftudh iqu% dher yxk;h tk jgh gS ds fy;s in different time buckets which are maturing or getting repriced. iz;kl djrk gS rkfd mudh le; Js.kh ds vUrj dks de fd;k tk ldsA For measurement and management of interest rate risk, Bank vkfLr;ksa] ns;rkvksa vkSj rqyui= ds enksa tks njksa ds izfr laosnu'khy gS adopts both the Traditional Gap Analysis (TGA) and the Duration dh ?kjsyw fLFkfr ds C;kt nj tksf[ke dks ekius vkSj mlds izcUèku ds Gap Analysis (DGA) to its domestic position of assets, liabilities and off-balance sheet items, which are rate sensitive. fy, cSad ikjaifjd vUrj ¼vYikofèk½ fo'ys"k.k vkSj M~;wjs'ku xSi fo'ys"k.k nksuksa dks xzg.k dj jgk gSA C;kt nj tksf[ke iqu% dher yxkus] izkfIr js[kk esa ifjorZu vkSj vkèkkj The interest rate risk arises on account of re-pricing, yield curve tksf[ke dss dkj.k mRiUu gksrk gSA cSad dk y{; bu tksf[keksa tks change, basis risk. The Bank aims at capturing these risks ifjiDork vkSj iqu% dher yxkus ds xyr feyku dh otg ls mRiUu arising from the maturity and re-pricing mismatches both from gksrs gSa dks vk; vkSj vkfFkZd ewY; ds ifjis{k esa fuEufyf[kr rjdhcksa dk earnings perspective and economic value perspective using iz;ksx djrs gq, jksduk gSA techniques viz., 1- varj fo'ys"k.k% C;kt nj tksf[ke dks ekius dk ewyHkwr gfFk;kj 1. Gap Analysis: The basic tool for measuring interest rate C;kt nj laosnu'khyrk fooj.kh dks njksa ds izfr laosnu'khy vkfLr;ksa risk is preparation of Interest Rate Sensitivity Statement vkSj njksa ds izfr laosnu'khy nkf;Roksa vkSj rqyui= ds vyx&vyx (IRS) by grouping various items of Rate Sensitive Assets

44 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures

le; Js.kh ds fofHkUu enksa dks lewghÑr djds cph gqbZ ifjiDork (RSA) and Rate Sensitive Liabilities (RSL) and off balance- ds vuqlkj ;k vxyh iqu% dher yxkus tks igys gks fooj.kh cukuk sheet items into different time buckets according to the re- vkSj 'kq) vUrj ij igqapuk gSA sidual maturity or next re-pricing, whichever is earlier and arriving at the net gap (i.e., RSA - RSL). ,d ldkjkRed ;k vkfLr laosnu'khy varj dk eryc gS cktkj esa C;kt nj esa o`f) ftlds ifj.kke Lo#i 'kq) C;kt vk; esa o`f)A A positive or asset sensitive Gap means that an increase in market interest rates result in an increase in NII. Conversely, ,d udkjkRed ;k ns;rk ds izfr laosnu'khy varj ;g lwfpr djrk a negative or liability sensitive Gap implies that the Bank’s gS fd cktkj C;kt njksa esa o`f) ds ifj.kke Lo#i cSad dh 'kq) C;kt NII could decline as a result of increase in market interest vk; esa deh vk jgh gSA rates.

2- tksf[ke ls vk;% tksf[ke ls vk; lwfpr djrh gS fd D;k cSad bl 2. Earnings at Risk (EaR): Earnings at Risk (EaR) indicates fLFkfr esa gS fd og ldkjkRed varj gksus ds dkj.k C;kt nj esa whether the bank is in a position to benefit by the rise in o`f) ls ykHk dek lds ;k udkjkRed varj gksus ds dkj.k C;kt nj interest rate by having positive gap or benefits by fall in in- esa deh ls ykHk dek ldsA C;kt nj esa lekukUrj f'kQ~V ds dkj.k terest rate by having a negative gap. The impact of repricing vk; ij iqu%dher yxkus ds tksf[ke dk izHkko dk fofHkUu nj lewgksa risk on the earnings due to the parallel shift in interest rate is ij vkdyu fd;k tkrk gSA assessed for different rate shocks. Impact on the earnings is also estimated for yield curve change and basis risk.

3- bfDoVh dk cktkj ewY;% Cknyrh gqbZ C;kt nj dk nh?kZ vofèk 3. Market Value of Equity (MVE): A long-term impact of izHkko cSad dh bfDoVh ds cktkj ewY; ;k 'kq) lEifRr ¼usV oFkZ½ ij changing interest rates is on bank’s Market Value of Equity (MVE) or Net-worth as the economic value of bank’s assets, gksrk gS D;ksafd cSad dh vkfLr;ksa dk vkfFkZd ewY;] ns;rk,a vkSj rqyu liabilities and off balance sheet positions get affected due i= dh fLFkfr cktkj C;kt njksa esa ifjorZu ds dkj.k izHkkfor gksrs to variation in market interest rates. The estimated drop in gSaA lewps cSad esa laosnu'khy ifjfLFkfr;ksa esa C;kt nj esa ifjorZu the Market Value of Equity (MVE) as a result of prescribed ls fuèkkZfjr jsV&'kkd ds ifj.kke Lo#i bfDoVh ds cktkj ewY; esa rate shock is estimated by the Duration Gap Analysis (DGA) vkdfyr deh vofèk vUrj fo'ys"k.k ¼Mh-th-,-½ }kjk vuqekfur gSA arising from changes in the value of interest rate sensitive positions across the whole Bank. ii) Ekk=kRed izdVhdj.k% ii) Quantitative Disclosures vk; Tkksf[ke¼ijEijkxr vUrj fo'ys"k.k½¼y?kq vofèk½% Earning at Risk (Traditional Gap Analysis) (Short Term): cSad dh 'kq) C;kt vk; ij C;kt nj esa ifjorZu ds Rofjr izHkko dk The immediate impact of the changes in the interest rates on fo'ys"k.k blds }kjk fd;k tkrk gSA ?kjsyq ifjpkyu ds fy;s tksf[ke ls net interest income of the bank is analyzed under this approach. vk; dk fo'ys"k.k fofHkUu ifjn`';ksa ds vUrxZr fuEukuqlkj fd;k tkrk The Earning at Risk is analyzed under different scenarios for domestic operations as under: gSA • izkfIr js[kk¼doZ½ tksf[ke% vkfLr vkSj ns;rkvksa ds fy;s 1 izfr'kr dk • Yield curve risk: A parallel shift of 1% is assumed for assets lekukUrj ifjorZu ¼f'kQ~V½ eku fy;k x;k gSA as well as liabilities. • vkfLr;ksa ds fy;s lewgokj fofHkUu izkfIr ifjorZuksa dks eku fy;k x;k • Bucket wise different yield changes are assumed for the as- gS vkSj ;gh ckr ns;rkvksa ds fy;s Hkh ykxw gksrh gSA sets and the same are applied to the liabilities as well. ¼:- djksM+ esa½ (` in Crores) &100 chih,l 100 chih,l -100 bps 100 bps vk; ij tksf[ke Earning at Risk -14.41 14.41 -14.41 14.41

45 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures bfDoVh dk vkfFkZd ewY; ¼vofèk vUrj fo'ys"k.k½¼nh?kZ vofèk½ Economic Value of Equity (Duration Gap Analysis) (Long term) • bfDoVh dk vkfFkZd ewY; vkfLr;ksa vkSj ns;rkvksa dh la'kksfèkr vofèk dh x.kuk djds fd;k x;k gS rkfd bfDoVh dh la'kksfèkr vofèk rd • Economic Value of Equity is done by calculating modified duration of assets and the liabilities to arrive at the modified igqapk tk ldsA ?kjsyw ifjpkyu ds fy;s bfDoVh ds vkfFkZd ewY; duration of equity. Impact on the Economic Value of Equity ij izHkko dh leh{kk 200 chih,l jsV 'kkWd ds fy;s vofèk vUrj is analyzed for a 200 bps rate shock at monthly intervals for fo'ys"k.k fofèk ds ekè;e ls ekfld vkèkkj ij dh tkrh gSA domestic operations through Duration Gap Method.

&200 chih,l 200 chih,l -200 bps 200 bps bfDoVh ds vkfFkZd ewY; esa ifjorZu Change in Economic Value of Equity 7.80% (-)7.80% 7.80% (-)7.80% lkj.kh Mh,Q&10 % izfri{kdkj _.k tksf[ke ls lacafèkr Table DF-10: General Disclosures for exposures ,Dlikstjksa ds fy, lkekU; izdVhdj.k related to Counterparty Credit Risk i) Xkq.kkRed izdVhdj.k i) Qualitative Disclosures izfri{kh _.k tksf[ke mls dgk tkrk gS ftlesa izfri{kh udnh izokg ds Counterparty Credit Risk is defined as the risk that the Qkbuy fuiVku ls igys viuk laO;ogkj iwjk dj ysrk gSA ;g MsjhosfVo counterparty to a transaction could default before the final settlement of the transaction’s cash flows and isthe rFkk izfrHkwfr foRriks"k.k laO;ogkj ds fy, tksf[ke dk izeq[k lzksr gSA blh primary source of risk for derivatives and securities financing izdkj yksu ds ekè;e ls _.k tksf[ke dss lacaèk esa cSad dk ,Dlikstj ds transactions. Unlike a Bank’s exposure to credit risk through a leku gh tgka _.k tksf[ke lacaèkh ,Dlikstj ,d i{kh; gS vkSj blesa loan, where the exposure to credit risk is unilateral and only the mèkkj nsus okyk cSad gkfu&tksf[ke dk lkeuk djrk gSA izfri{kh _.k lending bank faces the risk of loss, the counterparty credit risk tksf[ke f}i{kh; gS vFkkZr laO;ogkj dk cktkj ewY; izfri{kh laO;ogkj ls is bilateral in nature i.e. the market value of the transaction can brj ikthfVo ;k fuxsfVo gks ldrk gS vkSj cktkj ?kVdksa ds lapyu ds be positive or negative to either counterparty to the transaction and varying over time with the movement of underlying market lkFk gh fHkUu gks ldrk gSA factors. pwd ds le; ;fn laO;ogkj ;k izfri{kh ds lkFk laO;ogkj iksVZQksfy;ksa An economic loss would occur if the transactions or portfolio esa ldkjkRed vkfFkZd ewY; ifjyf{kr gksrs gSa rks vkfFkZd gkfu mBkuh of transactions with the counterparty has a positive economic iM+ ldrh gSA value at the time of default. cSad fdlh ikVhZ dks MsjhosfVo mRikn nsus ls igys lqfuf'pr djrk gS fd Banks ensures all the due diligence are to be adhered to viz. lHkh xq.koRrkvksa&vFkkZr~ dsokbZlh ekunaMksa] larqf"Viw.kZ O;ogkjksa] ikVhZ dh KYC norms, satisfactory dealing, credit worthiness of the party _.k ik=rk dk ikyu fd;k tk,A before extending any derivative products to the party. ii) Ekk=kRed izdVhdj.k ii) Quantitative Disclosures

jkf'k djksM+ :- esa (Amount `in Crores) dfYir jkf'k orZeku ,Dlikstj Current Ø- S. Notional Amount fooj.k Particulars Exposure la- 31-03-2016 31-03-2016 No. 31.03.2016 31.03.2016 1 fons'kh eqnzk lafonk,a ------1 Foreign Exchange ------2 ikjfLifjd eqnzk C;kt nj ------Contracts dh vnyk&cnyh 2 Cross Currency ------3 ,dy eqnzk C;kt nj dh ------Interest rate Swaps vnyk&cnyh 3 Single Currency ------Interest Rate Swaps ------4 tksM+ 4 Total ------

46 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures lkj.kh Mh,Q&11 % iwath dh lajpuk

Table DF-11: Composition of Capital

Hkkx&2& 31 ekpZ] 2017 ls iwoZ iz;ksx ds fy, rkfydk ¼vFkkZr ckly III ds fu;ked lek;kstu ds vUrj.k dky esa iz;ksx gsrq½ Part II: Template to be used before March 31, 2017 (i.e, during the transition period of Basel III regulatory adjustments)

¼#i;s fefy;u esa½@(` in Million)

ckly III iwoZ i)fr ds Ø- ckly III & lkekU; izdVhdj.k rkfydk&fu;ked lek;kstu ds vUrj.k dky esa iz;ksx gsrq la- ¼vFkkZr 1 vizsy] 2013 ls 31 fnlEcj] 2017 rd½ V~hVesaV ds vkèkhu jkf'k lanHkZ la-@ Amounts Subject to S. Basel III common disclosure template to be used during the transition of regulatory Ref No Pre-Basel III Treat- No. adjustments (i.e. from April 1, 2013 to December 31, 2017) ment lkekU; bZfDoVh fV;j 1 iwath % fy[kr vkSj vkjf{kr fufèk;ka Common Equity Tier 1 capital: instruments and reserves lhèks tkjh dh x;h vgZrk izkIr lkekU; Directly issued qualifying common 1 'ks;j iwath vkSj lacafèkr LVkd vfèk'ks’k ¼'ks;j share capital related stock surplus 1310.00 a= a1+a2 izhfe;e½ (share premium) 2 izfrèkkfjr vk; Retained earnings lafpr vU; O;kid vk; ¼vkSj vU; vkjf{kr Accumulated other comprehensive in- 3 3868.82 fufèk;ka½ come (and other reserves) lhbZVh 1 ls èkhjs&èkhjs lekIr gksus ds vkèkhu Directly issued capital subject to phase 4 lhèks tkjh dh x;h iwath ¼dsoy xSj la;qDr out from CET1 (only applicable to non- LVkd dEifu;ksa ds fy, ykxw½ joint stock companies) lkoZtfud {ks= }kjk iawth Mkyus dks 1 tuo- Public sector capital injections grandfa- jh 2018 rd iqjkus fu;e ds vuqlkj ekU; thered until January 1, 2018 djuk ¼xzkaMQknMZ½ Lkgk;d bdkb;ksa }kjk tkjh dh x;h vkSj Common share capital issued by sub- 5 rhljs i{k ¼lhbZVh 1 lewg esa vuqer jkf'k½ sidiaries and held by third parties }kjk èkkfjr lkekU; 'ks;j iwath (amount allowed in group CET1) fofu;ked lek;kstuksa ls igys lkekU; bZf- Common Equity Tier 1 capital before 6 5178.82 Dovh fV;j 1 iwath regulatory adjustments lkekU; bZfDoVh fV;j 1 iwath % fofu;ked lek;kstu Common Equity Tier 1 capital: regulatory adjustments 7 foosdiw.kZ ewY;kadu lek;kstu Prudential valuation adjustments 8 xqMfoy ¼lacafèkr dj ns;rk dk fuoy½ Goodwill (net of related tax liability) eksVZxst lfoZflax vfèkdkj ds vykok vewrZ Intangibles other than mortgage-servic- 9 vkfLr;ka ¼alacafèkr dj ns;rk dk fuoy½ ing rights (net of related tax liability) 10 vkLFkfxr dj laifRr Deferred tax assets 11 Ukdnh&izokg cpko fjtoZ Cash-flow hedge reserve Shortfall of provisions to expected loss- 12 visf{kr gkfua ds fy, izkoèkkuksa dh deh es 13 fodz; ij izfrHkwfrdj.k ykHk Securitisation gain on sale mfpr ewY; ns;rkvksa ij futh _.k tksf[ke Gains and losses due to changes in own 14 esa ifjorZu ds dkj.k ykHk vkSj gkafu credit risk on fair valued liabilities 15 ifjHkkf"kr&ykHk isa'ku dks"k fuoy laifRr Defined-benefit pension fund net assets futh 'ks;j esa fuos'k ¼fjiksVZ fd, x, rqyu Investments in own shares (if not al- 16 i= esa ;fn igys ls gh iznRr iwath dk ready netted off paid-in capital on re- lek;kstu u fd;k x;k gks½ ported balance sheet) Reciprocal cross-holdings in common 17 lkekU; bZfDoVh esa ijLij dzkl&gksfYMax equity cSafdax] foRrh; vkSj chek laLFkk,a] tks Investments in the capital of banking, fofu;ked lesdu ds nk;js ls ckgj gS] ds financial and insurance entities that are iwath esa fo'ks"k fuos'k dk ik= 'kkVZ iksft'ku outside the scope of regulatory con- 18 solidation, net of eligible short positions, fuoy] tgka cSad dh tkjh 'ks;j iwath 10% where the bank does not own more than ls vfèkd ugha gS ¼10% dh izkjafHkd lhek 10% of the issued share capital (amount ls vfèkd jkf'k½ above 10% threshold)

47 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures

ckly III iwoZ i)fr ds Ø- ckly III & lkekU; izdVhdj.k rkfydk&fu;ked lek;kstu ds vUrj.k dky esa iz;ksx gsrq la- ¼vFkkZr 1 vizsy] 2013 ls 31 fnlEcj] 2017 rd½ V~hVesaV ds vkèkhu jkf'k lanHkZ la-@ Amounts Subject to S. Basel III common disclosure template to be used during the transition of regulatory Ref No Pre-Basel III Treat- No. adjustments (i.e. from April 1, 2013 to December 31, 2017) ment cSafdax] foRrh; vkSj chek laLFkk,a] tks Significant investments in the common fofu;ked lesdu ds nk;js ls ckgj gS] ds stock of banking, financial and insur- ance entities that are outside the scope 19 lkekU; 'ks;j esa egRoiw.kZ fuos'k dk ik= of regulatory consolidation, net of eligi- 'kkVZiksft'ku ¼10% dh izkjafHkd lhek ls ble short positions (amount above 10% vfèkd jkf'k½ fuoy threshold) eksVZxst lfoZflax vfèkdkj ¼10% dh Mortgage servicing rights (amount 20 izkjafHkd lhek ls vfèkd jkf'k½ above 10% threshold) vLFkk;h fHkUurk ls mRiUu vkLFkfxr dj Deferred tax assets arising from tem- 21 laifRr ¼10% dh izkjafHkd lhek ls vfèkd porary differences (amount above 10% jkf'k] lacafèkr dj ns;rk dk fuoy½ threshold, net of related tax liability) 22 15% dh izkjafHkd lhek ls vfèkd jkf'k Amount exceeding the 15% threshold ftuesa ls% foRrh; laLFkkvksa ds lekU; 'ks;j of which: significant investments in the 23 esa egRoiw.kZ fuos'k common stock of financial entities 24 ftuesa ls% ekVZxst lfoZflax vfèkdkj of which: mortgage servicing rights ftuesa ls% vLFkk;h fHkUurk ls mRiUu gksus of which: deferred tax assets arising 25 okyh vkLFkfxr dj vkfLr;ka from temporary differences jk"V~h; fof'k"V fofu;ked lek;kstu ¼26d National specific regulatory adjustments 26 $ 26[k $ 26x $ 26?k½ (26a+26b+26c+26d) ftlesa ls% vlesfdr chek lgk;d daifu;ksa of which: Investments in the equity capi- 26a ds bZfDoVh iwath esa fuos'k tal of the unconsolidated insurance sub- sidiaries ftlesa ls% vlesfdr xSj&foRrh; lgk;d of which: Investments in the equity capi- 26b daifu;ksa ds bZfDoVh iawth esa fuos'k tal of unconsolidated non-financial sub- sidiaries ftlesa ls% cSad ds lkFk xSj&lesfdr izeq[k of which: Shortfall in the equity capital of majority owned financial entities which 26c futh foRrh; laLFkkvksa ds bZfDoVh iwath esa have not been consolidated with the deh bank of which: Unamortised pension funds 26d ftlesa ls% vifj"kksfèkr isa'ku fufèk O;; expenditures Ckkly III iwoZ i)fr ds Vª~hVesaV ds vkèkhu Regulatory Adjustments Applied to jkf'k ds lacaèk esa lkekU; bZfDoVh fV;j 1 ij Common Equity Tier 1 in respect of Amounts Subject to Pre-Basel III Treat- ykxw fofu;ked lek;kstu ment ftlesa ls % ¼lek;kstu dk izdkj izfo"V djsa½ of which: [INSERT TYPE OF ADJUST- mnkgj.k ds fy% ,,Q,l _.k izfrHkwfr;ksa MENT] For example: filtering out of unrealised ij volwy gkfu;ksa dks ckgj fudky nsuk losses on AFS debt securities (not rel- ¼Hkkjrh; lanHkZ esa vizklafxd½ evant in Indian context) ftlesa ls% ¼lek;kstu dk izdkj izfo"V of which: [INSERT TYPE OF ADJUST- djsa½ MENT] ftlesa ls% ¼lek;kstu dk izdkj izfo"V of which: [INSERT TYPE OF ADJUST- djsa½ MENT] vi;kZIr vfrfjDr fV;j 1 vkSj fV;j 2 Regulatory adjustments applied to Com- dVkSrh dks doj djus ds fy, lkekU; mon Equity Tier 1 due to insufficient Ad- 27 bZfDoVh fV;j 1 ij ykxw fofu;ked ditional Tier 1 and Tier 2 to cover deduc- lek;kstu tions lkekU; bZfDoVh fV;j 1 esa dqy fofu;ked Total regulatory adjustments to Com- 28 lek;kstu mon equity Tier 1 29 lkekU; bZfDoVh fV;j 1 iwath ¼lhbZVh1½ Common Equity Tier 1 capital (CET1) 5178.82 vfrfjDr fV;j 1 iwath% fy[kr@Additional Tier 1 capital: instruments lhèks tkjh fd, x, ik= vfrfjDr fV;j 1 Directly issued qualifying Additional Tier 30 fy[kr vkSj lacafèkr vfèk'ks"k ¼'ks;j izhfe;e½ 1 instruments plus related stock surplus ¼31 $ 32½ (31+32)

48 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures

ckly III iwoZ i)fr ds Ø- ckly III & lkekU; izdVhdj.k rkfydk&fu;ked lek;kstu ds vUrj.k dky esa iz;ksx gsrq la- ¼vFkkZr 1 vizsy] 2013 ls 31 fnlEcj] 2017 rd½ V~hVesaV ds vkèkhu jkf'k lanHkZ la-@ Amounts Subject to S. Basel III common disclosure template to be used during the transition of regulatory Ref No Pre-Basel III Treat- No. adjustments (i.e. from April 1, 2013 to December 31, 2017) ment ftlesa ls% ykxw ys[kkadu ekudksa ds varxZr of which: classified as equity under ap- 31 bZfDoVh ds #i esa oxhZÑr ¼lrr xSj⪅h plicable accounting standards (Perpetu- vfèkekuh 'ks;j½ al Non-Cumulative Preference Shares) ftlesa ls% ykxw ys[kkadu ekudksa ds varxZr of which: classified as liabilities under 32 ns;rk ds #i esa oxhZÑr ¼lrr _.k fy[kr½ applicable accounting standards (Per- petual debt Instruments) vfrfjDr fV;j 1 iwath ls pj.kc) #i ls Directly issued capital instruments sub- 33 ckgj ¼Qst vkmV½ gksus ds vkèkhu lhèks tkjh ject to phase out from Additional Tier 1 fd, x, iwath fy[kr Lkgk;d daifu;ksa }kjk tkjh rFkk rhljs i{k Additional Tier 1 instruments (and CET1 }kjk ¼,Vh1 lewg esa vuqer jkf'k rd½ èkkfjr instruments not included in row 5) is- 34 vfrfjDr fV;j 1 fy[kr ¼vkSj 5oha iafDr esa sued by subsidiaries and held by third 'kkfey ugha fd, x, lhbZVh1 fy[kr½ parties (amount allowed in group AT1) ftlesa ls% pj.kc) #i ls ckgj ¼Qst of which: instruments issued by subsidi- 35 vkmV½ gksus ds vkèkhu lgk;d daifu;ksa } aries subject to phase out kjk tkjh fd, x, fy[kr fofu;ked lek;kstu djus ls iwoZ vfrfjDr Additional Tier 1 capital before regula- 36 fV;j iwath 1 tory adjustments vfrfjDr fV;j iwath 1% fofu;ked lek;kstu ls iwoZ Additional Tier 1 capital : before regulatory adjustments Investments in own Additional Tier 1 in- 37 futh vfrfjDr fV;j 1 fy[kr esa fuos'k struments vfrfjDr fV;j 1 fy[krksa esa ikjLifjd Reciprocal cross-holdings in Additional 38 dzkl&gksfYMaXl Tier 1 instruments cSafdax] foRrh; vkSj chek laLFkk,a] tks Investments in the capital of banking, fofu;ked lesdu ds nk;js ls ckgj gS] financial and insurance entities that are ds lkekU; 'ks;j esa fo'ks"k fuos'k dk ik= outside the scope of regulatory con- solidation, net of eligible short positions, 39 'kkVZiksft'ku fuoy] tgka cSad dk laLFkk ds where the bank does not own more tkjh 'ks;j iwath ¼10% dh izkjfEHkd lhek ls than 10% of the issued common share vfèkd jkf'k½ ds 10% ls vfèkd dk LokfeRo capital of the entity (amount above 10% ugha gSA threshold) cSafdax] foRrh; vkSj chek laLFkk,a] tks Significant investments in the capital fofu;ked lesdu ds nk;js ls ckgj gSa] ds of banking, financial and insurance 40 entities that are outside the scope of lkekU; 'ks;j esa egRoiw.kZ fuos'k dk ik= regulatory consolidation (net of eligible 'kkVZiksft'ku fuoyA short positions) jk"V~h; fof'k"V fofu;ked lek;kstu National specific regulatory adjustments 41 ¼41 d $ 41 [k½ (41a+41b) ftuesa ls% xSj&lesfdr chek lgk;d Investments in the Additional Tier 1 cap- 41a daifu;ksa ds vfrfjDr fV;j 1 iwath esa fuos'k ital of unconsolidated insurance subsidi- aries Ckgqer ds LokfeRo okyh foRrh; laLFkkvksa ds Shortfall in the Additional Tier 1 capi- tal of majority owned financial entities 41b vfrfjDr iwath esa deh ftudks cSad ds lkFk which have not been consolidated with lesfdr ugha fd;k x;k gSA the bank Ckkly III iwoZ i)fr ds V~hVesaV ds Regulatory Adjustments Applied to Addi- vkèkhujkf'k;ksa ds lacaèk esa vfrfjDr fV;j tional Tier 1 in respect of Amounts Sub- 1 dks ykxw fd, x, fofu;ked lek;kstu ject to Pre-Basel III Treatment ftlesa ls ¼lek;kstu dk izdkj izfo"V djsa] of which: [INSERT TYPE OF ADJUST- tSls MhVh,½ MENT e.g. DTAs] ftlesa ls ¼lek;kstu dk izdkj izfo"V djsa] of which: [INSERT TYPE OF ADJUST- tSls fon~;eku lek;kstu] ftudh fV;j 1 esa MENT e.g. existing adjustments which ls 50 izfr'kr ij dVkSrh dh xbZ gS½ are deducted from Tier 1 at 50%] ftlesa ls ¼lek;kstu dk izdkj izfo"V djsa½ of which: [INSERT TYPE OF ADJUST- MENT]

49 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures

ckly III iwoZ i)fr ds Ø- ckly III & lkekU; izdVhdj.k rkfydk&fu;ked lek;kstu ds vUrj.k dky esa iz;ksx gsrq la- ¼vFkkZr 1 vizsy] 2013 ls 31 fnlEcj] 2017 rd½ V~hVesaV ds vkèkhu jkf'k lanHkZ la-@ Amounts Subject to S. Basel III common disclosure template to be used during the transition of regulatory Ref No Pre-Basel III Treat- No. adjustments (i.e. from April 1, 2013 to December 31, 2017) ment dVkSrh dks doj djus ds fy, vi;kZIr Regulatory adjustments applied to Addi- 42 fV;j 2 ds dkj.k vfrfjDr fV;j 1 ij tional Tier 1 due to insufficient Tier 2 to ykxw fofu;ked lek;kstu cover deductions vfrfjDr fV;j 1 esa dqy fofu;ked Total regulatory adjustments to Addition- 43 lek;kstu al Tier 1 capital 44 vfrfjDr fV;j 1 iwath ¼,Vh&1½ Additional Tier 1 capital (AT1) fV;j 1 iwath ¼Vh1$lhbZVh1$,Vh1½ Tier 1 capital (T1 = CET1 + AT1) 45 5178.82 ¼29$44½ (29 + 44) fV;j 2 iwath% fy[kr ,oa izkoèkku Tier 2 capital: instruments and provisions lhèks tkjh fd, ik= vfrfjDr fV;j 1 Directly issued qualifying Tier 2 instru- 46 fy[kr vkSj lacafèkr LVkd vfèk'ks"k ments plus related stock surplus fV;j 2 iwath ls pj.kc) #i ls ckgj ¼Qst Directly issued capital instruments sub- 47 vkmV½ gksus ds vkèkhu lhèks tkjh fd, x, ject to phase out from Tier 2 iwath fy[kr Lkgk;d daifu;ksa }kjk tkjh fd;s x;s ,oa r`rh; i{kksa }kjk èkkfjr ¼jkf'k lewg fV;j 2 Tier 2 instruments (and CET1 and AT1 instruments not included in rows 5 or 34) 48 esa vuqer½ fV;j 2 fy[kr ¼rFkk iafDr;ksa 5 issued by subsidiaries and held by third vkSj 34 esa 'kkfey ugha fd;s x;s lhbZVh1 parties (amount allowed in group Tier 2) vkSj ,Vh1 fy[kr½ ftuesa ls% pj.kc) #i ls ckgj ¼Qst vkmV½ of which: instruments issued by subsidi- 49 gksus ds vkèkhu lgk;d daifu;ksa }kjk tkjh aries subject to phase out fd, x, fy[kr 50 Ikzkoèkku Provisions 151.06 Tier 2 capital before regulatory adjust- 51 fofu;ked lek;kstuksa ls igys fV;j 2 iwwath 151.06 ments fV;j 2 iwath% fofu;ked lek;kstu Tier 2 capital: regulatory adjustments 52 futh fV;j 2 fy[kr esa fuos'k Investments in own Tier 2 instruments Reciprocal cross-holdings in Tier 2 in- 53 fV;j 2 fy[krksa esa ikjLifjd dzkl&gksfYMaXl struments cSafdax] foRrh; vkSj chek laLFkk,a] tks Investments in the capital of banking, fofu;ked lesdu ds nk;js ls ckgj gSa] financial and insurance entities that are ds lkekU; 'ks;j esa fo'ks"k fuos'k dk ik= outside the scope of regulatory con- solidation, net of eligible short positions, 54 'kkVZiksft'ku fuoy] tgka cSad dk laLFkk ds where the bank does not own more than tkjh 'ks;j iwath ¼10% dh izkjafHkd lhek ls 10% of the issued common share capi- vfèkd jkf'k½ ds 10% ls vfèkd dk LokfeRo tal of the entity (amount above the 10% ugha gSAA threshold) cSafdax] foRrh; vkSj chek laLFkk,a] tks Significant investments in the capital fofu;ked lesdu ds nk;js ls ckgj gSa] ds banking, financial and insurance entities 55 that are outside the scope of regulatory lkekU; 'ks;j esa egRoiw.kZ fuos'k dk ik= consolidation (net of eligible short posi- 'kkVZiksft'ku fuoy tions) jk"V~h; fof'k"V fofu;ked lek;kstu National specific regulatory adjustments 56 ¼56 d $ 56 [k½ (56a+56b) ftlesa ls% xSj&lesfdr chek lgk;d of which: Investments in the Tier 2 capi- 56a daifu;ksa ds fV;j 2 iwath esa fuos'k tal of unconsolidated subsidiaries ftlesa ls% Ckgqer ds LokfeRo okyh foRrh; of which: Shortfall in the Tier 2 capital of majority owned financial entities which 56b laLFkkvksa ds fV;j 2 iwath esa deh ftudks have not been consolidated with the cSad ds lkFk lesfdr ugha fd;k x;k gSA bank Ckkly III iwoZ i)fr ds V~hVesaV ds vkèkhu Regulatory Adjustments Applied To Tier jkf'k;ksa ds lacaèk esa lkekU; bZfDoVh fV;j 1 2 in respect of Amounts Subject to Pre- ij ykxw fofu;ked lek;kstu Basel III Treatment

50 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures

ckly III iwoZ i)fr ds Ø- ckly III & lkekU; izdVhdj.k rkfydk&fu;ked lek;kstu ds vUrj.k dky esa iz;ksx gsrq la- ¼vFkkZr 1 vizsy] 2013 ls 31 fnlEcj] 2017 rd½ V~hVesaV ds vkèkhu jkf'k lanHkZ la-@ Amounts Subject to S. Basel III common disclosure template to be used during the transition of regulatory Ref No Pre-Basel III Treat- No. adjustments (i.e. from April 1, 2013 to December 31, 2017) ment ftuesa ls ¼lek;kstu dk izdkj izfo"V djsa] of which: [INSERT TYPE OF ADJUST- tSls fon~;eku lek;kstu] ftudh fV;j 2 esa MENT e.g. existing adjustments which ls 50 izfr'kr ij dVkSrh dh xbZ gS½ are deducted from Tier 2 at 50%] ftuesa ls ¼lek;kstu dk izdkj izfo"V djsa½ of which: [INSERT TYPE OF ADJUST- MENT Total regulatory adjustments to Tier 2 57 fV;j 2 iwath esa dqy fofu;ked lek;kstu capital 58 fV;j 2 iwath ¼Vh 2½ Tier 2 capital (T2) 151.06 59 dqy iwath ¼Vhlh = Vh1 $ Vh2½ ¼45$58½ Total capital (TC = T1 + T2) (45 + 58) 5329.88 Ckkly III iwoZ i)fr ds V~hVesaV ds vkèkhu Risk Weighted Assets in respect of jkf'k ds lacaèk esa tksf[ke Hkkfjr vkfLr;ka Amounts Subject to Pre-Basel III Treat- ment ftlesa ls% ¼lek;kstu dk izdkj izfo"V djsa½ of which: [INSERT TYPE OF ADJUST- MENT] ftlesa ls------of which dqy tksf[ke Hkkfjr vkfLr;ka Total risk weighted assets 60 33951.78 ¼60 d $ 60[k $ 60x½ (60a + 60b + 60c) ftlesa ls% dqy dzsfMV tksf[ke Hkkfjr of which: total credit risk weighted as- 60a 26772.88 vkfLr;ka sets ftlesa ls% dqy cktkj tksf[ke Hkkfjr of which: total market risk weighted as- 60b 3365.56 vkfLr;ka sets ftlesa ls% dqy ifjpkyu tksf[ke Hkkfjr of which: total operational risk weighted 60c 3813.34 vkfLr;ka assets iwath vuqikr@Capital ratios lkekU; bZfDoVh fV;j 1 ¼tksf[ke Hkkfjr Common Equity Tier 1 (as a percentage 61 15.25% vkfLr;ksa ds izfr'kr ds #i esa½ of risk weighted assets) fV;j 1 ¼tksf[ke Hkkfjr vkfLr;ksa ds izfr'kr Tier 1 (as a percentage of risk weighted 62 15.25% ds #i esa½ assets) dqy iwath ¼tksf[ke Hkkfjr vkfLr;ksa ds Total capital (as a percentage of risk 63 15.69% izfr'kr ds #i esa½ weighted assets) laLFkk fof'k"V cQj vis{kk ¼U;wure lhbZVh1 Institution specific buffer requirement vis{kk vkSj iwath laj{k.k vkSj izfrpdzh; cQj (minimum CET1 requirement plus capi- 64 tal conservation and countercyclical 6.125% vis{kk,a] tksf[ke Hkkfjr vkfLr;ksa ds izfr'kr buffer requirements, expressed as a ds #i esa O;Dr½ percentage of risk weighted assets) of which: capital conservation buffer re- 65 ftlesa ls% iwath laj{k.k cQj vis{kk,a 0.625% quirement ftlesa ls% cSad fof'k"V izfrpdzh; cQj of which: bank specific countercyclical 66 vis{kk,a buffer requirement 67 ftlesa ls% th&,lvkbZch cQj vis{kk,a of which: G-SIB buffer requirement cQj dh vis{kk iwjk djus ds fy, miyCèk Common Equity Tier 1 available to meet 68 lkekU; bZfDoVh fV;j 1 ¼tksf[ke Hkkfjr buffers (as a percentage of risk weight- vkfLr;ksa ds izfr'kr ds #i esa½ ed assets) jk"V~h; U;wure ¼cklsy III ls fHkUu gks rks½ National minima (if different from Basel III) jk"V~h; lkekU; bZfDoVh fV;j 1 U;wure National Common Equity Tier 1 mini- 69 vuqikr ¼;fn cklsy III U;wure ls fHkUu mum ratio (if different from Basel III 5.50% gks rks½ minimum) jk"V~h; fV;j 1 U;wure vuqikr ¼;fn cklsy National Tier 1 minimum ratio (if differ- 70 7.00% III U;wure ls fHkUu gks rks½ ent from Basel III minimum)

51 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures

ckly III iwoZ i)fr ds Ø- ckly III & lkekU; izdVhdj.k rkfydk&fu;ked lek;kstu ds vUrj.k dky esa iz;ksx gsrq la- ¼vFkkZr 1 vizsy] 2013 ls 31 fnlEcj] 2017 rd½ V~hVesaV ds vkèkhu jkf'k lanHkZ la-@ Amounts Subject to S. Basel III common disclosure template to be used during the transition of regulatory Ref No Pre-Basel III Treat- No. adjustments (i.e. from April 1, 2013 to December 31, 2017) ment jk"V~h; dqy iwath U;wure vuqikr ¼;fn National total capital minimum ratio (if 71 9.00% cklsy III U;wure ls fHkUu gks rks½ different from Basel III minimum) dVkSrh ds fy, vfèkdre lhek ds uhps dh jkf'k ¼tksf[ke Hkkj ls igys½ Amounts below the thresholds for deduction (before risk weighting) vU; foRrh; laLFkkvksa dh iwath esa Non-significant investments in the capi- 72 xSj&egRoiw.kZ fuos'k tal of other financial entities foRrh; laLFkkvksa ds lkekU; LVkd esa Significant investments in the common 73 egRoiw.kZ fuos'k stock of financial entities ekVZxst lfoZflax jkbV~l ¼lacafèkr dj ns;rk Mortgage servicing rights (net of related 74 dk fuoy½ tax liability) vLFkk;h fHkUurkvksa ls mRiUu vkLFkfxr dj Deferred tax assets arising from tem- 75 vkfLr;ka ¼lacafèkr dj ns;rk dk fuoy½ porary differences (net of related tax li- ability) fV;j 2 esa izkoèkkuksa ds 'kkfey fd;s tkus ij ykxw lhek,a ¼dSIl½ Applicable caps on the inclusion of provisions in Tier 2 EkkudhÑr n`f"Vdks.k ds vkèkhu ,dlikstj Provisions eligible for inclusion in Tier 2 in respect of exposures subject to stand- 76 ds lacaèk esa fV;j 2 iwath esa 'kkfey djus gsrq 151.06 ardised approach (prior to application of ik= izkoèkku ¼lhek ykxw gksus ls iwoZ½ cap) EkkudhÑr n`f"Vdks.k ds varxZr fV;j 2 esa Cap on inclusion of provisions in Tier 2 77 izkoèkkuksa ds 'kkfey fd;s tkus dh lhek 334.66 under standardised approach ¼ij dSi½ vkarfjd jsfVax vkèkkfjr n`f"Vdks.k ds vkèkhu Provisions eligible for inclusion in Tier 2 ,Dlikstj ds lacaèk esa fV;j 2 iwath esa in respect of exposures subject to inter- 78 'kkfey djus gsrq ik= izkoèkku ¼lhek ykxw nal ratings-based approach (prior to ap- gksus ls iwoZ½ plication of cap) vkarfjd jsfVax vkèkkfjr n`f"Vdks.k ds varxZr Cap for inclusion of provisions in Tier 2 79 fV;j 2 esa izkoèkkuksa ds 'kkfey fd;s tkus under internal ratings-based approach dh lhek Qst vkÅV O;oLFkkvksa ds vkèkhu iwath fy[kr ¼dsoy 31 ekpZ 2017 vkSj 31 ekpZ 2022 ds chp ykxw½ Capital instruments subject to phase-out arrangements (only applicable between March 31, 2017 and March 31, 2022) Qst vkÅV O;oLFkkvksa ds vkèkhu lhbZVh 1 Current cap on CET1 instruments sub- 80 fy[krksa ij ekStwnk dSi ject to phase out arrangements dSi ds dkj.k lhbZVh 1 esa ugha 'kkfey dh Amount excluded from CET1 due to cap 81 xbZ jkf'k ¼Hkquk, x, vkSj vofèkiw.kZ fy[krksa (excess over cap after redemptions and ds ckn dSi ds vfrfjDr½ maturities) Qst vkÅV O;oLFkkvksa ds vkèkhu ,Vh 1 Current cap on AT1 instruments subject 82 fy[krksa ij ekStwnk dSi to phase out arrangements dSi ds dkj.k ,Vh 1 eas 'kkfey ugha dh xbZ Amount excluded from AT1 due to cap 83 jkf'k ¼Hkquk, x, vkSj vofèkiw.kZ fy[krksa ds (excess over cap after redemptions and ckn dSi ds vfrfjDr½ maturities) Qst vkÅV O;oLFkkvksa ds vkèkhu Vh 2 Current cap on T2 instruments subject 84 fy[krksa ij ekStwnk dSi to phase out arrangements dSi ds dkj.k Vh 2 esa ugha 'kkfey dh xbZ Amount excluded from T2 due to cap 85 jkf'k ¼Hkquk, x, vkSj vofèkiw.kZ fy[krksa ds (excess over cap after redemptions and ckn dSi ds vfrfjDr½ maturities)

52 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures

VsEIysV ds fy, uksV@Notes to the Templates

VsEIysV dh iafDr la- ¼#- fefy;u esa½@ fooj.k@Particular Row No. of the template (` in Million) 10 lafpr gkfu;ksa ls lac) vkLFkkfxr dj vkfLr;ka Deferred tax assets associated with ---- accumulated losses vkLFkfxr dj ns;rk ls ?kVkbZ xbZ ¼lafpr gkfu;ksa ls Deferred tax assets (excluding those ---- tqM+h gqbZ dks NksM+dj vkLFkfxr dj vkfLr;ka associated with accumulated losses) net of Deferred tax liability iafDr 10 esa bafxr fd;s x;s vuqlkj dqy Total as indicated in row 10 ---- 19 ;fn chek lgk;d daifu;ksa esa fuos'kksa dks iwath ls iwjh If investments in insurance subsidiaries ---- rjg ugha ?kVk;k x;k vkSj mldh ctk; dVkSrh dh are not deducted fully from capital and instead considered under 10% threshold vfèkdre 10 izfr'kr dh lhek ds varxZr ekU; fd;k for deduction, the resultant increase in the x;k rks cSad dh iwath esa ifj.kkeh o`f) capital of bank ftlesa ls% lkekU; bZfDoVh fV;j 1 iwath esa o`f) of which: Increase in Common Equity Tier 1 ---- capital ftlesa ls% vfrfjDr fV;j 1 iwath esa o`f) of which: Increase in Additional Tier 1 capital ---- ftlesa ls% fV;j 2 iwath esa o`f) of which: Increase in Tier 2 capital ----

26 [k@b ;fn xSj&lesfdr xSj&foRrh; lgk;d daifu;ksa dh If investments in the equity capital ---- bZfDoVh iwath esa fuos'k dks ugha ?kVk;k x;k vkSj of unconsolidated non-financial subsidiaries are not deducted and hence, blfy, tksf[ke Hkkj yxk;k x;k rks% risk weighted then: i) lkekU; bZfDoVh fV;j 1 iwath esa o`f) i) Increase in Common Equity Tier 1 capital ----

ii) tksf[ke Hkkfjr vkfLr;ksa esa o`f) ii) Increase in risk weighted assets ---- 50 fV;j 2 iwath esa 'kkfey ik= izkoèkku Eligible Provisions included in Tier 2 capital 151.06 fV;j 2 iwath esa 'kkfey ik= iquewZY;kadu fjtoZ Eligible Revaluation Reserves included in ---- Tier 2 capital iafDr 50 dk dqy Total of row 50 151.06

53 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures

Lkkj.kh Mh,Q&12% iwath dh lajpuk& feyku lacaèkh vis{kk,a

Table DF-12: Composition of Capital- Reconciliation Requirements

Pkj.k 1 @Step 1 ¼jkf'k #- fefy;u esa½@(` in Million)

foRrh; fooj.kksa ds vuqlkj rqyu Lkesdu ds fofu;ked nk;js ds i= fjiksfVax frfFk dh fLFkfr ds varxZr rqyu i= fjiksfVZax frfFk vuqlkj dh fLFkfr ds vuqlkj Balance sheet as in financial Balance sheet under regula- statements tory scope of consolidation As on reporting date As on reporting date A iwath rFkk ns;rk,a Capital & Liabilities i iznRr iwath Paid-up Capital 665.06 665.06 vkjf{kr fufèk rFkk vfèk'ks"k Reserves & Surplus 4579.40 4579.40 vYi 'ks;j èkkfj;ksa dks C;kt Minority Interest 9.94 9.94 dqy iwath Total Capital 5254.40 5254.40 ii Tkekjkf'k;ka Deposits 53105.87 53105.87 ftuesa ls% cSadksa dh tekjkf'k;ka of which: Deposits from banks 3339.92 3339.92 ftuesa ls% xzkgdksa dh tekjkf'k;ka of which: Customer deposits 49765.95 49765.95 ftuesa ls% vU; tekjkf'k;ka of which: Other deposits (pl. specify) ------¼ÑIk;k Li"V djsa½ iii mèkkj Borrowings 1.15 1.15 ftuesa ls%Hkkjrh; fjtoZ cSad ls of which: From RBI ------ftuesa ls% cSadksa ls of which: From banks ------

ftuesa ls% vU; laLFkkvksa rFkk of which: From other institutions & 1.15 1.15 ,tsafl;ksa ls agencies ftuesa ls% vU;¼ÑIk;k Li"V djsa½ of which: Others (pl. specify) ------ftuesa ls% iwath fy[kr of which: Capital instruments ------iv vU; ns;rk,a ,oa izkoèkku Other liabilities & provisions 2482.52 2482.52 dqy Total 60843.94 60843.94 B vkfLr;ka Assets

Hkkjrh; fjtoZ cSad ds ikl udn Cash and balances with Reserve Bank i 2969.97 2969.97 ,oa 'ks"k of India

cSadksa ds ikl 'ks"k vkSj ekax vkSj Balance with banks and money at call 15034.32 15034.32 vYi lwpuk ij izfrns; jkf'k and short notice ii fuos'k Investments: 13814.08 13814.08 ftuesa ls% ljdkjh izfrHkwfr;ka of which: Government securities 11729.09 11729.09 ftuesa ls% vU; vuqeksfnr of which: Other approved securities ------izfrHkwfr;ka ftuesa ls% 'ks;j of which: Shares ------ftuesa ls% fMcsapj rFkk ck.M of which: Debentures & Bonds 1784.99 1784.99

ftuesa ls % vuq"kaxh daifu;ka@ of which: Subsidiaries / Joint Ventures / ------la;qDr mn~;e@lg;ksxh laLFkk,a Associates

ftuesa ls% vU; ¼okf.kfT;d i=] of which: Others (Commercial Papers, 300.00 300.00 E;qP;qvy QaM vkfn½ Mutual Funds etc.)

54 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures

foRrh; fooj.kksa ds vuqlkj rqyu Lkesdu ds fofu;ked nk;js ds i= fjiksfVax frfFk dh fLFkfr ds varxZr rqyu i= fjiksfVZax frfFk vuqlkj dh fLFkfr ds vuqlkj Balance sheet as in financial Balance sheet under regula- statements tory scope of consolidation As on reporting date As on reporting date iii _.k rFkk vfxze Loans and advances 26860.83 26860.83 ftuesa ls% cSadksa dks _.k rFkk of which: Loans and advances to banks 6.57 6.57 vfxze

ftuesa ls% xzkgdksa dks _.k rFkk of which: Loans and advances to 26854.26 26854.26 vfxze customers iv vpy vkfLr;ka Fixed assets 179.60 179.60 v vU; vkfLr;ka Other assets 1985.14 1985.14 ftuesa ls % lk[k ¼xqMfoy½ rFkk of which: Goodwill and intangible assets ------vewrZ vkfLr;ka ftuesa ls% vkLFkfxr dj vkfLr;ka of which: Deferred tax assets ------vi Lkesdu ij xqMfoy Goodwill on consolidation ------vii ykHk rFkk gkfu [kkrs esa ukes 'ks"k Debit balance in Profit & Loss account ------dqy vkfLr;ka Total Assets 60843.94 60843.94

Pkj.k 2@Step 2 ¼jkf'k #- fefy;u esa½@(` in Million)

foRrh; fooj.kksa ds vuqlkj Lkesdu ds fofu;ked nk;js ds lanHkZ la[;k rqyui= fjiksfVZax frfFk dh varxZr rqyui= fjiksfVZax frfFk Ref No. fLFkfr ds vuqlkj dh fLFkfr ds vuqlkj Balance sheet as in financial Balance sheet under statements regulatory scope of As on reporting date consolidation As on reporting date

d@A iwath rFkk ns;rk,a Capital & Liabilities i iznRr iwath Paid-up Capital 675.00 675.00 ,@a1 ftlesa ls% lhbZVh 1 ds fy, ik= of which: Amount eligible for CET1 675.00 675.00 jkf'k ftlesa ls% ,Vh 1 ds fy, ik= of which: Amount eligible for AT1 ------jkf'k vkjf{kr fufèk rFkk vfèk'ks"k Reserves & Surplus 4579.40 4579.40 ftlesa ls% of which: &lkafofèkd vkjf{kfr;ka -Statutory Reserve 1358.14 1358.14

& 'ks;j izhfe;e -Share Premium 635.00 635.00 ,@a2 &dsfiVy fjtoZ -Capital Reserve 46.98 46.98 & LFkkbZ vkfLr;ksa dk . Revaluation of Fixed Assets 46.43 46.43 iquewZY;kadu & vU; vkjf{kfr;ka . Other Reserve 0.55 0.55 & jsosU;w vkSj vU; vkjf{kfr;ka -Revenue and Other Reserve 2539.29 2539.29 &fuos'k vkjf{kfr [kkrk .Investment Reserve Account ------

55 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures

foRrh; fooj.kksa ds vuqlkj Lkesdu ds fofu;ked nk;js ds lanHkZ la[;k rqyui= fjiksfVZax frfFk dh varxZr rqyui= fjiksfVZax frfFk Ref No. fLFkfr ds vuqlkj dh fLFkfr ds vuqlkj Balance sheet as in financial Balance sheet under statements regulatory scope of As on reporting date consolidation As on reporting date & vkjf{kfr ;k [kjkc vkSj .Reserve or Bad and Doubtful Debts 31.25 31.25 lafnXèk _.k & vU; vkjf{kfr&vkLFkfxr dj .Other reserve-deferred tax 0.68 0.68 & vU; vkjf{kfr .Other Reserve 2297.60 2297.60 & fuos'k vkjf{kfr [kkrk .Investment Reserve A/c 18.12 18.12 & fo'ks"k vkjf{kfr èkkjk 36 ds .Special reserve u/s36 191.64 191.64 vUrxZr & orZeku le; dk ykHk tks -Current period profit not recognized ------[kkrs esa ugha fy;k x;k dqy iwath Total Capital 5254.40 5254.40 ii Tkekjkf'k;ka Deposits 53105.87 53105.87 ftuesa ls%cSadska dh tekjkf'k;ka of which: Deposits from banks 3339.92 3339.92 ftuesa ls% xzkgd tekjkf'k;ka of which: Customer deposits 49765.95 49765.95 ftuesa ls %vU; tekjkf'k;ka of which: Other deposits (pl. specify) ------¼ÑIk;k Li"V djsa½ iii mèkkj Borrowings 1.15 1.15 ftuesa ls%Hkkjrh; fjtoZ cSad ls of which: From RBI ------ftuesa ls% cSadksa ls of which: From banks ------ftuesa ls% vU; laLFkkvksa rFkk of which: From other institutions & 1.15 1.15 ,tsafl;ksa ls agencies ftuesa ls %vU; ¼ÑIk;k Li"V of which: Others (pl. specify) ------djsa½ ftuesa ls% iwath fy[kr of which: Capital instruments ------iv vU; ns;rk,a ,oa izkoèkku Other liabilities & provisions 2482.52 2482.52 ftuesa ls%xqMfoy ls lacafèkr of which: DTLs related to goodwill ------MhVh,y ftuesa ls% vewrZ vkfLr;ksa ls of which: DTLs related to intangible ------lacafèkr ekax rFkk eh;knh assets ns;rk,a dqy Total 60843.94 60843.94

56 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures

foRrh; fooj.kksa ds vuqlkj Lkesdu ds fofu;ked nk;js ds lanHkZ la[;k rqyui= fjiksfVZax frfFk dh varxZr rqyui= fjiksfVZax frfFk Ref No. fLFkfr ds vuqlkj dh fLFkfr ds vuqlkj Balance sheet as in financial Balance sheet under statements regulatory scope of As on reporting date consolidation As on reporting date

[k@B vkfLr;ka Assets i Hkkjrh; fjtoZ cSad ds ikl Cash and balances with Reserve 2969.97 2969.97 udn ,oa 'ks"k Bank of India cSadksa ds ikl 'ks"k vkSj ekax vkSj Balance with banks and money at call 15034.32 15034.32 vYi lwpuk ij izfrns; jkf'k and short notice ii fuos'k% Investments: 13814.08 13814.08 ftuesa ls% ljdkjh izfrHkwfr;ka of which: Government securities 11729.09 11729.09 ftuesa ls% vU; vuqeksfnr of which: Other approved securities ------izfrHkwfr;ka ftuesa ls% 'ks;j of which: Shares ------ftuesa ls% fMcsapj rFkk cka.M of which: Debentures & Bonds 1784.99 1784.99 ftuesa ls% vuq"kaxh daifu;ka@ of which: Subsidiaries / Joint Ventures ------la;qDr mn~;e@lg;ksxh / Associates laLFkk,a ftuesa ls% vU; ¼okf.kfT;d i=] of which: Others (Commercial Papers, 300.00 300.00 E;qP;qvy QaM vkfn½ Mutual Funds etc.) iii _.k rFkk vfxze Loans and advances 26860.83 26860.83 ftuesa ls%cSadksa dks _.k rFkk of which: Loans and advances to 6.57 6.57 vfxze banks ftuesa ls%xzkgdksa dks _.k rFkk of which: Loans and advances to cus- 26854.26 26854.26 vfxze tomers iv vpy vkfLr;ka Fixed assets 179.60 179.60 ftuesa ls% xqMfoy rFkk vewrZ of which: Goodwill and intangible as------vkfLr;ka sets v vU; vkfLr;ka Other assets 1985.14 1985.14 ftuesa ls% xqMfoy rFkk vewrZ of which: Goodwill and intangible as------vkfLr;ka sets ftuesa ls% vkLFkfxr dj of which: Deferred tax assets ------vkfLr;ka vi Lkesdu ij xqMfoy Goodwill on consolidation ------vii ykHk rFkk gkfu [kkrs esa ukes 'ks"k Debit balance in Profit & Loss account ------dqy vkfLr;ka Total Assets 60843.94 60843.94

57 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures pj.k 3@Step 3

Ckkly III lkekU; izdVhdj.k VsaEIysV ¼tksM+s x, LraHk lfgr½ dk m)j.k &lkj.kh Mh,Q&11 ¼Hkkx I/II tks Hkh ykxw gks½ lkekU; bZfDoVh fV;j 1 iwath% fy[kr rFkk vkjf{kr fufèk;ka Extract of Basel III common disclosure template (with added column) – Table DF-11 (Part I / Part II whichever, applicable) Common Equity Tier 1 capital: instruments and reserves

¼jkf'k #- fefy;u esa½@(` in Million)

cSad }kjk fjiksVZ dh xbZ fofu;ked Pkj.k 2 ls lesdu ds fofu;ked nk;js iwath ds ?kVd ds varxZr rqyui= ds lanHkZ la[;k@ Component of regulatory capital i=ksa ij vkèkkfjr lzksr reported by bank Source based on reference num- bers /letters of the balance sheet under the regulatory scope of con- solidation from step 2 1 lhèks fuxZfer dh xbZ vgZd lkekU; Directly issued qualifying com- 1310.00 a1 & a2 'ks;j ¼rFkk la;qDr&xSj&LVkd mon share (and equivalent for non-joint stock companies) cap- daifu;ksa ds fy, lerqY;½ iawth rFkk ital plus related stock surplus lacafèkr LVkd vfèk'ks"k dk tksM+ 2 izfrèkkfjr vk; Retained earnings ---- 3 Lakpf;r vU; O;kid vk; vkjf{kr Accumulated other compre- 3868.82 ¼rFkk vU; fufèk;ka½ hensive income (and other re- serves) 4 lhbZVh1 ls gVk, tkus ds vèkhu lhèks Directly issued capital subject to ---- fuxZfer iwath ¼dsoy vla;qDr uku phase out from CET1 (only ap- plicable to non-joint stock com- LVkd daifu;ksa ij ykxw½ panies) 5 vuq"kaxh laLFkkvksa }kjk fuxZfer rFkk Common share capital issued ---- FkMZ ikVhZ }kjk èkkfjr lkekU; 'ks;j by subsidiaries and held by third parties (amount allowed in iwath ¼lewg lhbZVh1 esa vuqer jkf'k½ group CET1) 6 fofu;ked lek;kstuksa ls iwoZ lkekU; Common Equity Tier 1 capital 5178.82 bZfDoVh fV;j 1 iwath before regulatory adjustments 7 foosdiw.kZ ewY;u lek;kstu Prudential valuation adjust- ---- ments 8 xqMfoy ¼lacafèkr dj ns;rk dk fuoy½ Goodwill (net of related tax li- ---- ability)

58 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures

Lkkj.kh Mh,Q&13& fofu;ked iawth fy[krksa dh eq[; Table DF-13: Main Features of Regulatory Capital fo'ks"krk,a Instruments cSad us fdlh izdkj dh fofu;ked iawth fy[kr tkjh ugha fd, gSaA Bank has not issued any kind of regulatory instruments. Lkkj.kh Mh-,Q- 16% bfDoVht% cSafdax cqd fLFkfr dk Table DF-16: Equities: Disclosures for Banking Book izdVhdj.k& Positions fofuos'k [kjhn ds le; VsªfMax ds fy, vk;ksftr Js.kh ¼,p,QVh½] fcdzh Investments are classified at the time of purchase into Held for gsrq miyCèk Js.kh ¼,,Q,l½ rFkk ifjiDork vofèk rd j[ks x;s fuos'k Trade (HFT), Available for Sale (AFS), Held to Maturity (HTM) ¼,pVh,e½ Js.kh esa oxhZÑr fd;s gSa tks fd vkj-ch-vkbZ- ds ekLVj ifji=& categories in line with the RBI master circular- Prudential Norms oxhZdj.k ds fy, foosdiw.kZ ekunaM] fofuos'k lafoHkkx ds oxhZdj.k for classification, valuation and operation of investments portfolio ewY;kadu vkSj ifjpkyu ds fy, foosdiw.kZ ekunaM ds vuqlkj gSaA vkj-ch- by Banks. In accordance with the RBI guidelines, investments vkbZ- ds fn'kk&funsZ'kksa ds vuqlkj lgk;d dEiuh ,oa la;qDr m|e dh in equity of subsidiaries and joint ventures are required to be bfDoVh esa fofuos'k ,pVh,e Js.kh ds vUrxZr oxhZÑr dh tkuh pkfg,A classified under HTM category. For capital adequacy purpose, iwath i;kZIrrk mÌs'; ls] vkj-ch-vkbZ- ds fn'kk&funsZ'kksa ds vuqlkj bfDoVh as per the RBI guidelines, equity securities held under HTM izfrHkwfr;ka ifjiDork vofèk rd j[ks x;s fuos'k cSafdax cqd ds vUrxZr category are classified under Banking book. oxhZÑr gSaA cSad ds ikl cSafdax cqd ds vUrxZr dksbZ bfDoVh izfrHkwfr ugha gSA Bank does not have any equities under banking book yhojst vuqikr Leverage Ratio csly III ds vUrxZr yhojst iwath mik; ¼fjLd osLM dSfiVy QzseodZ The Basel III leverage ratio is defined as the capital measure ds vUrxZr Vh;j I iwath½ ds izdVhdj.k ekunaM ls foHkkftr dj bl (Tier-1 capital of the risk based capital framework) divided by the vuqiky dks izfr'kr esa n'kkZuk gSA cSad ls vis{kk dh tkrh gS fd U;wure exposure measure, with this ratio expressed as a percentage. 4-5 izfr'kr yhojst vuqikr cuk;s j[ksA vkj-ch-vkbZ- ds fn'kk&funsZ'kksa The Bank is required to maintain a minimum leverage ratio of ds vuqlkj] cSad ds fy, yhojst vuqikr ds fy;s okafNr izdVhdj.k 31 4.5%. As per RBI guidelines, disclosures required for leverage ekpZ] 2016 dks fuEuor gSa %& ratio for the Bank at March 31st, 2016 is as follows.

Lkkj.kh Mh,Q 17& ys[kkadu vkfLr;ka cuke yhojst vuqikr ,Dlikstj vkdyu dk rqyukRed lkjka'k DF-17: Summary Comparison of Accounting Assets vs. Leverage Ratio Exposure Measure Ø-la- #i;s ¼fefy;u esa½ en@Item S.No. (` in Million) 1 izdkf'kr foRrh; fooj.kksa ds vuqlkj dqy lesfdr vkfLr;ka Total consolidated assets as per published financial 60843.95 statements 2 cSafdax] foRrh;] chek vFkok okf.kfT;d laLFkkvksa esa ,sls fuos'k Adjustment for investments in banking, financial, ---- ds fy, lek;kstu tks fofu;ked lesdu ds nk;js ds ckgj gSa insurance or commercial entities that are consolidated for accounting purposes but outside the scope of rFkkfi ys[kkadu iz;kstuksa ds fy, ftudk lesdu fd;k x;k gSA regulatory consolidation 3 izorhZ ys[kkadu lajpuk ds vuqlkj rqyu i= dh ekU;rk izkIr Adjustment for fiduciary assets recognised on the ---- izR;;h vkfLr;ksa ds fy, lek;kstu ysfdu ftUgsa yhojst vuqikr balance sheet pursuant to the operative accounting framework but excluded from the leverage ratio ,Dlikstj vkdyu esa 'kkfey ugha fd;k x;k gSA exposure measure 4 MsfjosfVo foRrh; fy[krksa ds fy;s lek;kstu Adjustments for derivative financial instruments ---- 5 izfrHkwfr;ksa ds foRrh;u lacaèkh ysunsuksa ds fy, lek;kstu ¼vFkkZr Adjustment for securities financing transactions (i.e. ---- jsiks vkSj blh rjg dh lqjf{kr mèkkj½ repos and similar secured lending) 6 rqyui=srj enksa ds fy, lek;kstu ¼vFkkZr rqyui=srj ,Dlikstj Adjustment for off-balance sheet items (i.e. conversion 1674.01 dh jkf'k ds led{k dszfMV esa #ikarj.k½ to credit equivalent amounts of off- balance sheet exposures) 7 vU; lek;kstu Other adjustments 525.43 8 yhojst vuqikr ,Dlikstj Leverage ratio exposure 63043.39

59 csly III fiyj 3 izdVhdj.k Basel III Pillar 3 Disclosures

Lkkj.kh Mh,Q 18& yhojst vuqikr lkekU; izdVhdj.k VsEIysV Table DF-18: Leverage Ratio Common Disclosure Template

¼jkf'k #- fefy;u esa½@(` in Million) Øa- la- yhojst vuqikr lajpuk en@Item S. No. Leverage ratio framework rqyui= ij ekStwn On-balance sheet exposures

rqyui= ij ekStwn ensa ¼MsfjosfVo rFkk ,l,QVh dks On-balance sheet items (excluding derivatives and SFTs, 1 61369.38 NksM+dj ijUrq laikf'Zod dks 'kkfey djrs gq,½ but including collateral) ¼cklsy III fV;j 1 iwath ds fuèkkZj.k esa ?kVkbZ xbZ (Asset amounts deducted in determining Basel III Tier 1 2 ---- vkfLr;ksa dh jkf'k ½ capital) rqyui= ij ekStwn dqy ,Dlikstj ¼MsfjosfVo Total on-balance sheet exposures (excluding 3 61369.38 rFkk ,l,QVh dks NksM+dj½ ¼iafDr 1 vkSj 2 dk ;ksx ½ derivatives and SFTs) (sum of lines 1 and 2) MsfjosfVo ,Dlikstj Derivative exposures leLr MsfjosfVo ysunsuksa ls tqM+h izfrLFkkiu Replacement cost associated with all derivatives 4 ykxr ¼vFkkZr ik= udnh #ikarj.k ekftZu dk ---- transactions (i.e. net of eligible cash variation margin) dqy tksM+½ leLr MsfjosfVo ysunsuksa ls tqM+s ih,QbZ ds fy, Add-on amounts for PFE associated with all derivatives 5 ---- iwjd jkf'k transactions

izorhZ ys[kkadu lajpuk ds vuq#i rqyui= vkfLr;ksa Gross-up for derivatives collateral provided where 6 ls ?kVk, x, MsfjosfVo laikf'Zod ds fy, lexz deducted from the balance sheet assets pursuant to the ---- izkoèkku operative accounting framework ¼MsfjosfVo ysunsuksa esa n'kkZ, x, udnh ?kV&c<+ (Deductions of receivables assets for cash variation 7 ---- ekftZu ds fy, izkI; vkfLr;ksa dh dVkSrh½ margin provided in derivatives transactions) ¼xzkgd&lek'kksfèkr dkjksckjh ,Dlikstj ds fy, NwV 8 (Exempted CCP leg of client-cleared trade exposures) ---- izkIr lhlhih ysx½ fyf[kr dzsfMV MsfjosfVo ds fy, lek;ksftr izHkkoh Adjusted effective notional amount of written credit 9 ---- vuqekfur jkf'k derivatives ¼fyf[kr dszfMV MsfjosfVo ds fy, lek;ksftr izHkkoh (Adjusted effective notional offsets and add-on deductions 10 ---- vuqekfur lejkf'k rFkk iwjd dVkSfr;ka½ for written credit derivatives) 11 dqy MsfjosfVo ,Dlikstj ¼iafDr la-4 ls 10 dk tksM+½ Total derivative exposures (sum of lines 4 to 10) ---- izfrHkwfr foRriks"k.k ysunsu ,Dlikstj Securities financing transaction exposures ldy ,l,QVh vkfLr;ksa ¼usfVax ds fy, ekU; ugha½] Gross SFT assets (with no recognition of netting), after 12 ---- fcdzh ys[kkadu ysunsuksa dks lek;ksftr djus ds ckn½ adjusting for sale accounting transactions ¼ldy ,l,QVh vkfLr;ksa ds fy, udn ns;jkf'k;ksa (Netted amounts of cash payables and cash receivables of 13 ---- rFkk udn izkI; jkf'k;ksa dh fuoy jkf'k½ gross SFT assets) 14 ,l,QVh vkfLr;ksa ds fy, lhlhvkj ,Dlikstj CCR exposure for SFT assets ---- 15 ,tsaV ysunsu ,Dlikstj Agent transaction exposures ---- dqy izfrHkwfr foRriks"k.k ysunsu ,Dlikstj ¼iafDr la- Total securities financing transaction exposures 16 ---- 12 ls 15 dk tksM+½ (sum of lines 12 to 15) vU; rqyui=srj ,Dlikstj Other off-balance sheet exposure 17 Lkdy vuqekfur jkf'k ij rqyui=srj ,Dlikstj Off-balance sheet exposure at gross notional amount 6100.09 18 ¼_.k lerqY; jkf'k ds #ikarj.k ds fy, lek;kstu½ (Adjustments for conversion to credit equivalent amounts) -4426.08 19 rqyui=srj ensa ¼iafDr la-17 vkSj 18 dk tksM+½ Off-balance sheet items (sum of lines 17 and 18) 1674.01 iwath vkSj dqy ,Dlikstj Capital and total exposures 20 fV;j 1 iwath Tier 1 capital 5178.82 21 dqy ,Dlikstj ¼iafDr la-3]11]16 vkSj 19 dk tksM+½ Total exposures (sum of lines 3, 11, 16 and 19) 63043.39 yhojst vuqikr Leverage ratio 22 Ckklsy III yhojst vuqikr Basel III leverage ratio 8.21%

60 31 ekpZ] 2016 dh fLFkfr ds vuqlkj rqyu&i= BALANCE SHEET AS ON 31ST MARCH 2016

¼#i;s gtkj esa½@(` in thousands) vuqlwph 31-03-2016 dh fLFkfr 31-03-2015 dh fLFkfr iw¡th vkSj nkf;Ro@CAPITAL AND LIABILITIES SCHEDULE As on 31.03.2016 As on 31.03.2015 iw¡th@Capital 1 675000 675000

vkjf{kfr;ka vkSj vf/k’ks"k@Reserves & Surplus 2 4579405 4271839

tek jkf’k;ka@Deposits 3 53105866 53440429

m/kkj@Borrowings 4 1154 1614

vU; nkf;Ro vkSj mica/k@Other Liabilities & Provisions 5 2482523 1390380

tksM+@Total 60843948 59779262

vkfLr;ka@ASSETS udnh vkSj Hkkjrh; fjtoZ cSad esa vfr’ks"k 6 2969973 2742677 Cash & Balances With Reserve Bank of India cSadksa esa vfr’ks"k vkSj ekax ij rFkk vYi lwpuk ij çkI; /ku 7 15034321 16556502 Balances with Banks & Money at call and Short Notice fuos’k@Investments 8 13814084 13781477

vfxze@Advances 9 26860836 25568455

fLFkj vkfLr;ka@Fixed Assets 10 179595 183639

vU; vkfLr;ka@Other Assets 11 1985139 946512

tksM+@Total 60843948 59779262 lekfJr nkf;Ro@Contingent Liabilities 12 398808 843252 laxzg ds fy, fcy@Bills for collection 9890 7608

çeq[k ys[kk uhfr;ka@Significant Accounting Policies 17

[kkrksa ij fVIif.k;ka@Notes on Accounts 18 Åij mfYyf[kr vuqlwfp;ka rqyu&i= dk vfHkUu vax gSaA

Schedules referred above form an integral part of Balance Sheet eqds'k 'kekZ vkj- ds- vjksjk ,l- Kkuosy Mk- oh-ih-,l-vjksjk Mukesh Sharma R.K.Arora Gnanavel Sendhivel Dr. V.P.S. Arora v/;{k ,oa eq[; dk;Zdkjh vf/kdkjh funs'kd funs'kd funs'kd Chairman & Chief Executive Officer Director Director Director lh-,- uhjt 'kkjnk lh-,- e`nqy dqekj vxzoky vrqy dqekj vxzoky MkW- ¼Jherh½ ds-ds-'kekZ CA Neeraj Sharda CA Mradul Kumar Agarwal Atul Kumar Aggarwala Dr. Mrs.K.K.Sharma funs'kd funs'kd funs'kd funs'kd Director Director Director Director jkds'k usek iznhi dqekj dkyk jeu xqIrk gekjh v|ru fjiksVZ ds vuqlkj Rakesh Nema Pradeep Kumar Kala Raman Gupta as per our report of even date funs'kd phQ vkijsfVax vkQhlj ,lks- okbl izsflMsUV Ñrs fot; eqds'k ,.M dEiuh Director Chief Operating Officer ¼ys[kk ,oa ifjpkyu½ For Vijay Mukesh & Co. ,oa phQ QkbusafU'k;y vkQhlj Associate Vice President lunh ys[kkdkj & Chief Financial Officer (Accounts & Operations) Chartered Accountants ,Qvkj,u 014554,u FRN- 014554N

¼lh-,-eqds'k tSu½@(CA Mukesh Jain) LFkku@Place : ubZ fnYyh@New Delhi lk>snkj@Partner fnukad@Date: 28 .04.2016 ,e,u@MN-094199

61 31 ekpZ] 2016 dks lekIr gq, o"kZ dk ykHk vkSj gkfu [kkrk PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2016 ¼#i;s gtkj esa½@(` In thousands) vuqlwph 31-03-16 dks lekIr o"kZ 31-03-15 dks lekIr o"kZ

SCHEDULE Year ended 31.03.2016 Year ended 31.03.2015 I. vk;@INCOME vftZr C;kt@Interest Earned 13 5361198 5075551 vU; vk;@Other Income 14 289361 492018 tksM+@Total 5650559 5567569 II. EXPENDITURE O;; fd;k x;k C;kt@Interest Expended 15 3592821 3377067 ifjpkyu O;;@Operating Expenses 16 1222972 1136375 micU/k vkSj vkdfLed O;;@Provisions & Contingencies 365066 382308 tksM+@Total 5180859 4895750 III. ykHk@PROFIT o"kZ dk 'kq) ykHk@Net profit for the year 469700 671819 fofu;kstu ds fy, miyC/k ykHk@Profit available for appropriation 469700 671819 IV. fofu;kstu@APPROPRIATIONS varj.k@Transfer To : lkafof/kd vkjf{kfr;ka@Statutory Reserve 117425 167955 jktLo vkSj vU; vkjf{kfr;ka@Revenue & Other Reserves: I) fuos’k vkjf{kfr [kkrk@Investment Reserve Account 0 0 ii) lkekU; vkjf{kfr;ka@General Reserve 168653 295018 iii) fo’ks"k vkjf{kfr;ka@Special Reserve 21630 30655 vUrfje ykHkka'k@Interim Dividend Paid 81000 0 vUrfje ykHkka'k ij ykHkka'k dj@Dividend Tax on Interim Dividend Paid 16195 0 izLrkfor YkkHkka’k@Proposed Dividend 54000 148500 ykHkka’k dj ¼ljpktZ vkSj f’k{kk izfrdj lfgr½ 10797 29691 Dividend Tax (including surcharge & edu.cess) vkjf{kr iwath@Capital Reserve tksM+@Total 469700 671819 izfr 'ks;j vk; ¼:0½@Earnings per Share (Rs) ewy@Basic 6.96 9.95 ruq@Diluted 6.96 9.95 eqds'k 'kekZ vkj- ds- vjksjk ,l- Kkuosy Mk- oh-ih-,l-vjksjk Mukesh Sharma R.K.Arora Gnanavel Sendhivel Dr. V.P.S. Arora v/;{k ,oa eq[; dk;Zdkjh vf/kdkjh funs'kd funs'kd funs'kd Chairman & Chief Executive Officer Director Director Director lh-,- uhjt 'kkjnk lh-,- e`nqy dqekj vxzoky vrqy dqekj vxzoky MkW- ¼Jherh½ ds-ds-'kekZ CA Neeraj Sharda CA Mradul Kumar Agarwal Atul Kumar Aggarwala Dr. Mrs.K.K.Sharma funs'kd funs'kd funs'kd funs'kd Director Director Director Director jkds'k usek iznhi dqekj dkyk jeu xqIrk gekjh v|ru fjiksVZ ds vuqlkj Rakesh Nema Pradeep Kumar Kala Raman Gupta as per our report of even date funs'kd phQ vkijsfVax vkQhlj ,lks- okbl izsflMsUV Ñrs fot; eqds'k ,.M dEiuh Director Chief Operating Officer ¼ys[kk ,oa ifjpkyu½ For Vijay Mukesh & Co. ,oa phQ QkbusafU'k;y vkQhlj Associate Vice President lunh ys[kkdkj & Chief Financial Officer (Accounts & Operations) Chartered Accountants ,Qvkj,u 014554,u FRN- 014554N

¼lh-,-eqds'k tSu½@(CA Mukesh Jain) LFkku@Place : ubZ fnYyh@New Delhi lk>snkj@Partner fnukad@Date: 28 .04.2016 ,e,u@MN-094199 62 rqyu&i= dh vuqlwfp;ka Schedules to Balance Sheet

rqyu&i= dh vuqlwfp;ka Schedules to Balance Sheet vuqlwph 1&iwath@SCHEDULE 1- CAPITAL ¼#i;s gtkj esa½@(` in Thousands)

31-03-2016 dh fLFkfr ds vuqlkj 31-03-2015 dh fLFkfr ds vuqlkj

As on 31/03/2016 As on 31/03/2015 izkf/kd`r iwath ¼10@& :i;s izfr 'ks;j ewY; okys 15]00]00]000 'ks;j½ Authorised Capital (15,00,00,000 Equity Shares of ` 10/- each) 1500000 1500000 ¼foxr o"kZ 10@& :i;s izfr 'ks;j ewY; okys 15]00]00]000 'ks;j½ (Previous Year 15,00,00,000 Equity Shares of ` 10/- each)

tkjh] vfHknŸk] ekaxh xbZ vkSj pqdrk iwath

Issued,Subscribed,Called up and Paid up capital 675000 675000 10@& :0 izfr 'ks;j ewY; okys 675]00]000 'ks;j 675,00,000 Equity Shares of ` 10/- each

tksM+@Total 675000 675000 vuqlwph 2 & vkjf{kfr;k¡ vkSj vf/k’ks"k@SCHEDULE 2- RESERVES & SURPLUS

31-03-2016 dh fLFkfr ds vuqlkj 31-03-2015 dh fLFkfr ds vuqlkj

As on 31/03/2016 As on 31/03/2015 I lakfof/kd vkjf{kfr;k¡@Statutory Reserve vFk’ks"k@Opening Balance 1240711 1072757 o"kZ ds nkSjku ifjo/kZu@Addition during the year 117425 167954 vafre 'ks"k@Closing Balance 1358137 1240711 II iw¡thxr vkjf{kfr;k¡@Capital Reserve 46979 47122

d½@a) iquewZY;u vkjf{kfr;ka@Revaluation Reserve vFk’ks"k@Opening Balance 46574 49106 o"kZ ds nkSjku o`f)@Addition during the year 0 ifjlj ds iquewZY;kadu ds dkj.k gqvk ewY;gzkl Depreciation on account of revaluation of premises -143 -2532 tks ykHk vkSj gkfu [kkrs dks varfjr fd;k x;k transferred to Profit & Loss Account vafre 'ks"k@Closing Balance 46431 46574 [k½@b) vU;@Others 548 548 o"kZ ds nkSjku o`f)@Addition during the year 0 0

vafre 'ks"k@Closing Balance 548 548

III 'ks;j izhfe;e@Share Premium vFk’ks"k@Opening Balance 635000 635000 o"kZ ds nkSjku ifjo/kZu@Addition during the Year o"kZ ds nkSjku dVkSfr;ka@Deduction during the Year vafre 'ks"k@Closing Balance 635000 635000 IV jktLo vkSj vU; vkjf{kfr;k¡@Revenue & Other Reserves (i) fuos’k fopyu vkjf{kfr;k¡@Investment Fluctuation Reserve vFk’ks"k@Opening Balance 0 0 o"kZ ds nkSjku ifjo/kZu@Addition during the Year 0 0 ?kVk,a % lkekU; izko/kku dks varj.k 0 0 Less: Transferred To General Provision vfUre 'ks"k@Closing Balance 0 0

63 rqyu&i= dh vuqlwfp;ka Schedules to Balance Sheet

31-03-2016 dh fLFkfr ds vuqlkj 31-03-2015 dh fLFkfr ds vuqlkj

As on 31/03/2016 As on 31/03/2015 (ii) vU; vkjf{kfr;ka@Other Reserve

vFk’ks"k@Opening Balance 2160878 1862959 tksM+sa % ykHk&gkfu [kkrs ls vUrfjr dh xbZ jkf’k 168653 300554 Addition : Transferred from Profit & Loss Account

dVkSrh@Deduction: 0 2635 vfUre 'ks"k@Closing Balance 2329531 2160878 fuos’k vkjf{kfr [kkrk@Investment Reserve A/c 18117 18117 o"kZ ds nkSjku ifjo/kZu@Addition during the Year 0 0 vafre 'ks"k@Closing Balance 18117 18117 fo'ks"k vkjf{kfr [kaM ds vUrxZr 36 (I) (VIII) 170011 139356 Special reserve u/s 36 ( I ) ( VIII ) o"kZ ds nkSjku ifjo/kZu@Addition during the Year 21630 30655

vafre 'ks"k@Closing Balance 191641 170011

tksM+@Total (IV) 2539289 2349006 ykHk vkSj gkfu [kkrs dk vfr’ks"k V 0 0 Balance in Profit & Loss Account

tksM+@Total (I ls@to V) 4579405 4271839 vuqlwph 3 & fu{ksi@SCHEDULE 3 -DEPOSITS

¼#i;s gtkj esa½@(` in Thousands) 31-03-2016 dh fLFkfr ds vuqlkj 31-03-2015 dh fLFkfr ds vuqlkj

As on 31/03/2016 As on 31/03/2015

d@A I) ekk¡x fu{ksi@Demand Deposits

i) cSadksa ls@From Banks 19870 11711

ii) vU; ls@From Others 2336347 2880173

tksM+@Total 2356217 2891884

II) cpr cSad fu{ksi@Savings Bank Deposits 16166654 15469346

III) lkof/k fu{ksi@Term Deposits

i) cSadksa ls@From Banks 3320045 5181511

ii) vU; ls@From Others 31262950 29897688

tksM+@Total 34582995 35079199

tksM+@Total (I, II ,oa@& III) 53105866 53440429

[k@B I) Hkkjr esa 'kk[kkvksa ds fu{ksi@Deposits of Branches in India 53105866 53440429 Hkkjr ds ckgj 'kk[kkvksa ds fu{ksi@ II) Deposits of Branches 0 0 outside India

tksM+@Total ( I ,oa@& II ) 53105866 53440429

64 rqyu&i= dh vuqlwfp;ka Schedules to Balance Sheet vuqlwph 4& m/kkj@SCHEDULE 4 -BORROWINGS

¼#i;s gtkj esa½@(` in Thousands) 31-03-2016 dh fLFkfr ds vuqlkj 31-03-2015 dh fLFkfr ds vuqlkj

As on 31/03/2016 As on 31/03/2015

I Hkkjr esa m/kkj@Borrowings in India

i) Hkkjrh; fjtoZ cSad@Reserve Bank Of India 0 0

ii) vU; cSad@Other Banks 0 136

iii) Hkkjr ds ckgj m/kkj@Other Institutions and Agencies 1154 1478

II vU; laLFkk,a vkSj vfHkdj.k@Borrowings outside India 0 0

tksM+@Total ( I ,oa@& II) 1154 1614 tekurh m/kkj jkf’k;ka tks mijksDr esa 'kkfey gSa III I 1154 1614 Secured Borrowings Included in I above vuqlwph 5 & vU; nkf;Ro vkSj mica/k@SCHEDULE 5 -OTHER LIABILITIES AND PROVISIONS

31-03-2016 dh fLFkfr ds vuqlkj 31-03-2015 dh fLFkfr ds vuqlkj

As on 31/03/2016 As on 31/03/2015

I lans; fcy@Bills Payable 374726 171749

II varj dk;kZy; lek;kstu ¼’kq)½@Inter Office Adjustments (Net) 0 0

III izksn~Hkwr C;kt@Interest Accrued 81015 78680 vfxze fn;k x;k dj@lzksr ij dkVk x;k dj ¼izko/kku dks NksM+dj½ IV 0 0 Tax Paid in advance/tax deducted at source (net of provisions)

V vU; ¼blesa mica/k 'kkfey gSa½@Others (Including Provisions) 2026782 1139951

tksM+@Total (I ls@to V ) 2482523 1390380 uksV % fV;j iwath gsrq fy, x, xkS.k _.k II Nil Nil NOTE:Subordinated Debts raised in Tier II Capital vuqlwph 6 & udnh vkSj Hkkjrh; fjtoZ cSad esa vfr’ks"k

SCHEDULE 6 -CASH AND BALANCES WITH RESERVE BANK OF INDIA

31-03-2016 dh fLFkfr ds vuqlkj 31-03-2015 dh fLFkfr ds vuqlkj

As on 31/03/2016 As on 31/03/2015 udnh ¼blesa fons’kh djSalh uksV lfEefyr gSa½ I 273936 221165 Cash in hand (Including foreign currency notes) Hkkjrh; fjtoZ cSad esa vfr’kss"k II 2696037 2521512 Balances with Reserve Bank of India

i) pkyw [kkrksa esa@In Current Accounts 2696037 2521512

ii) vU; [kkrksa esa@In Other Accounts 0 0

tksM+@Total (I ,oa@& II) 2969973 2742677

65 rqyu&i= dh vuqlwfp;ka Schedules to Balance Sheet vuqlwph 7 & cSadksa esa vfr’kss"k vkSj ekax ij rFkk vYi lwpuk ij izkI; /ku

SCHEDULE 7 BALANCES WITH BANKS & MONEY AT CALL AND SHORT NOTICE

¼#i;s gtkj esa½@(` in Thousands) 31-03-2016 dh fLFkfr ds vuqlkj 31-03-2015 dh fLFkfr ds vuqlkj

As on 31/03/2016 As on 31/03/2015

I Hkkjr esa@In India

i) cSadksa esa vfr’kss"k@Balances with Banks

pkyw [kkrksa esa@In Current Accouts 222511 626502

vU; tek [kkrksa esa@ In Other Deposit Accounts 14361810 14380000

tksM+@Total 14584321 15006502 ek¡x ij vkSj vYi lwpuk ij izkI; /ku ii) Money at call and short notice

cSadksa esa@With banks 0

vU; laLFkkvksa esa@With other institutions 450000 1550000

tksM+@Total 450000 1550000

tksM+@Total (i ,oa@& ii) 15034321 16556502

II Hkkjr ds ckgj@Outside India 'kwU;@NIL 'kwU;@NIL

tksM+@Total (I ,oa@& II) 15034321 16556502 vuqlwph & 8 fuos’k@SCHEDULE 8- INVESTMENT

31-03-2016 dh fLFkfr ds vuqlkj 31-03-2015 dh fLFkfr ds vuqlkj

As on 31/03/2016 As on 31/03/2015

I Hkkjr esa fuos’k ¼ldy½@Investments in India (Gross) 13814084 13792304

?kVk,¡ % ewY;gzkl ds fy, izko/kku@Less : Provision for Depreciation 0 10827

Hkkjr esa 'kq) fuos’k@Net Investments in India 13814084 13781477

vyx&vyx fooj.k@Break up

i) ljdkjh izfrHkwfr;ka@Government Securities 11729088 10669870

ii) vU; vuqeksfnr izfrHkwfr;ka@Other Approved Securities 0 0

iii) 'ks;j@Shares 0 0

iv) fMcaspj vkSj ca/k i=@Debentures and Bonds 1784996 1631607 leuq"kaxh vkSj@;k la;qDr m|e v) 0 0 Subsidiaries and/or Joint Ventures vi) vU; ¼;w-Vh-vkbZ- dh ;wfuV~l vkSj vU; E;wpwvy QaMl] okf.kfT;d i= 300000 1480000 vkfn½@Others (units of UTI and other mutual funds comm.papers)

tksM+@Total 13814084 13781477

II Hkkjr ds ckgj fuos'k@Investments outside India 'kwU;@Nil 'kwU;@Nil

tksM+@Total (I ,oa@& II) 13814084 13781477

66 rqyu&i= dh vuqlwfp;ka Schedules to Balance Sheet vuqlwph & 9 vfxze@SCHEDULE 9- ADVANCES ¼#i;s gtkj esa½@(` in Thousands) 31-03-2016 dh fLFkfr ds vuqlkj 31-03-2015 dh fLFkfr ds vuqlkj

As on 31/03/2016 As on 31/03/2015 i) Ø; fd;s x;s vkSj ferhdkVs ij Hkqxrku fd;s x;s fofue; i= d½@A 37976 62336 Bills Purchased and Discounted dS’k ØsfMV] vksoj MªkQ~V vkSj ekax ij izfr&lans; m/kkj ii) 16211863 15645002 Cash Credit, Overdrafts and Loans repayable on demand iii) lkof/k m/kkj@Term Loans 10610997 9861117

tksM+@Total 26860836 25568455

[k½@B i) ewrZ vkfLr;ksa }kjk izfrHkwr@Secured by Tangible Assets 25662791 24137739 cSad@ljdkjh izR;kHkwfr;ksa }kjk lajf{kr ii) 0 0 Covered by Bank/Govt. Guarantees iii) vizfrHkwr@Unsecured 1198045 1430716 tksM+@Total 26860836 25568455 x½@C I) Hkkjr esa vfxze@Advances in India i) izkFkfedrk izkIr {ks=@Priority Sector 15101396 14626722 ?kVk,a% chvksch dks tkjh vkbZchihlh@Less: IBPC issued to BOB 1000000 'kq) izkFkfedrk izkIr {ks= _.k@Net Priority Sector 14101396 ii) lkoZtfud {ks=@Public Sector 1724 2866 iii) cSad@Banks 6567 192329 iv) vU;@Others 11751149 10746538 tksM+sa% chvksch ls lgHkkfxrk esa vkbZchihlh 1000000 Add: IBPC participation with BOB 'kq) vU;@Net Others 12751149 II) Hkkjr ds ckgj vfxze@Advances outside India 0 0

tksM+@Total 26860836 25568455 vuqlwph & 10 fLFkj vkfLr;ka@SCHEDULE 10- FIXED ASSETS 31-03-2016 dh fLFkfr ds vuqlkj 31-03-2015 dh fLFkfr ds vuqlkj

As on 31/03/2016 As on 31/03/2015 I ifjlj@Premises ¼iwoZorhZ o"kZ ds 31 ekpZ dh fLFkfr ds vuqlkj ykxr ij@iquewZY;akfdr jkf’k½@At cost/revalued amount as on 31st March of the 121928 120928 preceeding year o"kZ ds nkSjku ifjo/kZu@Addition during the year 0 1000 v|ru vo{k;.k & ¼iquewZY;kadu ds dkj.k o`f)’khy ewY;gzkl lfgr½ Depreciation to date (including incremental depreciation due to 19086 18631 revaluations) Cykd I dk 'ks"k@Closing Block I 102842 103297 vU; fLFkj vkfLr;ka ¼QuhZpj vkSj fQDlpj lfgr½ II Other Fixed Assets (including Furniture & Fixtures) iwoZorhZ o"kZ ds 31 ekpZ dh fLFkfr ds vuqlkj ykxr ij 351349 323665 At cost as on 31st March of the preceeding year o"kZ ds nkSjku ifjo/kZu@Addition during the year 27227 27978 o"kZZ ds nkSjku dVkSfr;ka@Deductions during the year 274 294 v|ru vo{k;.k@Depreciation to date 301549 271007 Cykd II dk 'ks"k@Closing Block II 76753 80342 tksM+@Total (I ,oa@& II) 179595 183639

67 rqyu&i= dh vuqlwfp;ka Schedules to Balance Sheet vuqlwph & 11& vU; vkfLr;ka@SCHEDULE 11- OTHER ASSETS

¼#i;s gtkj esa½@(` in Thousands) 31-03-2016 dh fLFkfr ds vuqlkj 31-03-2015 dh fLFkfr ds vuqlkj

As on 31/03/2016 As on 31/03/2015

I vUrj dk;kZy; lek;kstu ¼’kq)½@Inter Office Adjustment (Net) 19095 26953

II izksn~Hkwr C;kt@Interest Accrued 633280 546615

vfxze :i ls lanŸk@lzksr ij dkVk x;k dj ¼izko/kkuksa dks NksM+dj½ III 98139 41946 Tax Paid in advance/tax deducted at source (net of provisions)

IV ys[ku lkexzh vkSj LVkEi@Stationery & Stamps 55 67

V vU;@Others 1234570 330931

tksM+@Total ( I ls@to V) 1985139 946512 vuqlwph & 12 lekfJr nkf;Ro@SCHEDULE 12- CONTINGENT LIABILITIES

31-03-2016 dh fLFkfr ds vuqlkj 31-03-2015 dh fLFkfr ds vuqlkj

As on 31/03/2016 As on 31/03/2015 cSad ds fo:) nkos ftUgsa _.k ds :i esa Lohdkj ugha fd;k x;k gS I 6348 7299 Claims against the Bank not acknowledged as Debts

II /kks[kk?kM+h ds fo:) nsunkjh@Liability against frauds 0 0

la?kVdksa dh vksj ls nh xbZ izR;kHkwfr;ka III 286417 708562 Guarantees given on behalf of constituents Lohd`fr;ka] cspku vkSj vU; nkf;Ro IV 22901 59968 Acceptances,Endorsements and Other Obligations

V vU;@Other 83142 67423

tksM+@Total ( I ls@to V) 398808 843252 vuqlwph & 13& vftZr C;kt@SCHEDULE 13- INTEREST EARNED

31-03-2016 dh fLFkfr ds vuqlkj 31-03-2015 dh fLFkfr ds vuqlkj

As on 31/03/2016 As on 31/03/2015 vfxzeksa@fofue; i=ksa ij C;kt@ferhdkVk I 3062653 2882531 Interest/Discount on Advances/Bills

II fuos’kksaa ls vk;@Income on Investments 1028934 1014865 952255

o"kZ ds nkSjku ifj’kksf/kr jkf’k -14069 Less:amount amortised during the year Hkkjrh; fjtoZ cSad esa vfr’ks"kksa vkSj vU; vUrj&cSad III fuos’kksa ij C;kt@Interest on Balances with Reserve 1265326 1224327 Bank of India and other Inter Bank Placements

IV vU;@Others 18354 16438

tksM+@Total ( I ls@to IV) 5361198 5075551

68 rqyu&i= dh vuqlwfp;ka Schedules to Balance Sheet vuqlwph & 14& vU; vk;@SCHEDULE 14- OTHER INCOME ¼#i;s gtkj esa½@(` in Thousands) 31-03-2016 dh fLFkfr ds vuqlkj 31-03-2015 dh fLFkfr ds vuqlkj

As on 31/03/2016 As on 31/03/2015 deh’ku] fofue; vkSj nykyh I 38837 36205 Commission,Exchange & Brokerage fuos’kkasa ds foØ; ij ykHk@gkfu II 79117 278622 Profit / Loss on sale of investments III vk;dj okilh ij C;kt@Interest on Income Tax Refund 3670 0 IV izdh.kZ vk;@Miscellaneous Income 161133 168722 V r`rh; ikVhZ dk deh’ku@Third party commission 6604 8469

tksM+@Total (I ls@to V) 289361 492018 vuqlwph & 15& O;; fd;k x;k C;kt@SCHEDULE 15-INTEREST EXPENDED 31-03-2016 dh fLFkfr ds vuqlkj 31-03-2015 dh fLFkfr ds vuqlkj

As on 31/03/2016 As on 31/03/2015 I fu{ksiksa ij C;kt@Interest on Deposits 3591769 3376023 Hkkjrh; fjtoZ cSad@varj cSad m/kkjksa ij C;kt II 241 986 Interest on RBI /Inter Bank Borrowings III vU;@Others 811 58

tksM+@Total ( I ls@to III) 3592821 3377067 vuqlwph & 16& ifjpkyu O;;@SCHEDULE 16- OPERATING EXPENSES 31-03-2016 dh fLFkfr ds vuqlkj 31-03-2015 dh fLFkfr ds vuqlkj

As on 31/03/2016 As on 31/03/2015 deZpkfj;ksa dks Hkqxrku ,oa muds fy, izko/kku I 833051 776832 Payments to and Provisions for Employees

II fdjk;k] dj vkSj jks’kuh@Rent,Taxes and Lighting 96613 86271

III eqnz.k vkSj ys[ku&lkexzh@Printing and Stationery 8107 7452

IV foKkiu vkSj izpkj@Advertisement and Publicity 2883 2589

V cSad dh lEifŸk ij vo{k;.k@Depreciation on Bank’s Property 30988 37070 ?kVkb, & ifjlj ds iquewZY;kadu ds dkj.k izkjf{kr iwath ls lek;ksftr ewY;gzkl@Less:Depreciation adjusted from Capital -143 30845 -2532 34538 reserve on account of revaluation of premises funs’kdksa dh Qhl] HkŸks vkSj O;; VI 1238 1120 Director’s Fees Allowances and Expenses ys[kk ijh{kdksa dh Qhl vkSj O;; ¼blesa 'kk[kk ys[kk ijh{kdksa dh Qhl VII vkSj O;; lfEefyr gSa½@Auditor’s Fees & Expenses 4133 3790 (including Branch Auditor’s fee & expenses)

VIII fof/k izHkkj@Law Charges 4089 4434 Mkd eglwy] rkj] VsyhQksu vkfn IX 6602 6872 Postage,Telegrams,Telephones etc

X ejEer vkSj vuqj{k.k@Repairs and Maintenance 10216 11078

XI chek@Insurance 48859 42809 XII vU; O;;@Other Expenditure 176336 158590

tksM+@Total ( I ls@to XII) 1222972 1136375

69 izeq[k ys[kk uhfr;ka Significant Accounting Policies vuqlwph 17% izeq[k ys[kk uhfr;ka 2015&16 SCHEDULE 17 – SIGNIFICANT ACCOUNTING POLICIES 2015-2016 1- ys[kk vfHk/kkj.kk,¡ 1. ACCOUNTING CONVENTION ;s foŸkh; fooj.k tc rd fd vU;Fkk u crk;k tk;s vofèkxr The financial statements have been prepared on the historical cost basis unless otherwise stated and conform ykxr vk/kkj ij rS;kj fd, x, gSa vkSj ns’k ds cSaddkjh {ks= esa to the statutory provisions and practices prevailing in the fo|eku lkafof/kd izko/kkuksa vkSj iz;klksa ds vuq:i gSaA Banking Sector of the country.

2- fuos’k 2. INVESTMENTS

Hkkjrh; fjtoZ cSad ds fn’kk&funsZ’kksa ds vuqlkj cSad ds fuos’k In accordance with Reserve Bank of India guidelines, lafoHkkx dks fuEufyf[kr Jsf.k;ksa esa oxhZÑr fd;k x;k gS vkSj Investments portfolio of the bank is classified into the izR;sd Js.kh ds fy, Hkkjrh; fjtoZ cSad }kjk fu/kkZfjr ewY;kadu under mentioned categories and the valuation norms, as ekun.Mksa dk vuqikyu fd;k x;k gS % prescribed by RBI have been applied to each category: 2-1-1 ifjiDork vof/k rd j[ks tkus okys fuos’k 2.1.1 Held to Maturity 2-1-2 fcØh ds fy, miyC/k fuos’k 2.1.2 Available for Sale, and 2-1-3 [kjhn&fcØh gsrq j[ks x, fuos’k 2.1.3 Held for Trading

2-2 ÞifjiDork vof/k rd j[ks tkus okysß 'kh"kZZ ds rgr~ vkus okys 2.2 Investment under “Held to Maturity” are valued at cost of fuos’kksa dk ewY;kadu vfHkxzg.k ykxr tc rd ;g vafdr ewY; acquisition unless it is more than the face value in which ftlesa izhfe;e ykxr dks izfrHkwfr;ksa dh 'ks"k ifjiDork vofèk esa case premium is amortized over the remaining maturity ifj’kksf/kr fd;k x;k gS] ls vf/kd ugha gS ij fd;k x;k gSA period of the security.

2-3 ÞfcØh gsrq miyC/kß vkSj Þ[kjhn&fcØh gsrq j[ks x,ß Js.kh ds fuos’k 2.3 Investment held under “Available for Sale” & “Held for cktkj ewY; ij fpfUgr gaSA mudk ewY;kadu ykxr vFkok cktkj Trading” category are marked to market and valued at ewY;] tks Hkh de gS] ij fd;k x;k gSA izR;sd fLØi dk ewY;kadu cost or market value whichever is lower. Individual scrips fd;k x;k gS rFkk ewY;gzkl@vf/kewY;u rqyui= dh Jsf.k;ksa ds are valued and depreciation / appreciation is aggregated vuqlkj Js.khokj tksM+k x;k gSA 'kq) ewY;gzkl dk izko/kku fd;k category wise as per the classification in Balance Sheet. x;k gS fdarq ;fn ;g ewY; o`f) gS rks bldh utjvankt dj nh Net depreciation is provided for and net appreciation, if xbZ gSA any, is ignored. 2-4 ÞfcØh gsrq miyC/kß vkSj Þ[kjhn&fcØh gsrq j[ks x,ß Js.kh ds 2.4 The net provisions arising on account of depreciation in fuos’k esa ewY;gzkl ds dkj.k fd;s x;s 'kq) izko/kkuksa dks ykHk&gkfu “Available for Sale” & “Held for Trading” is charged to Profit & Loss Account and an equivalent amount or the [kkrs esa izHkkfjr fd;k x;k gS rFkk bruh gh jkf’k vFkok Þfuos’k balance available in the “Investment Reserve Account”, vkjf{kr [kkrsß esa miyCèk 'ks"k jkf’k esa ls tks Hkh de gks dks Þfuos’k whichever is less, is transferred from the “Investment vkjf{kr [kkrsß ls ÞykHk&gkfu fofu;kstu [kkrsß dks varfjr fd;k Reserve Account” to the “Profit & Loss Appropriation x;k gSA Account”. ÞfcØh gsrq miyC/kß vkSj Þ[kjhn&fcØh gsrq j[ks x,ß Js.kh esa In case of excess net provision in “Available for Sale” & vfrfjDr 'kq) izko/kku gksus ij mls ykHk&gkfu [kkrs esa tek fd;k “Held for Trading”, the same is credited to Profit & Loss x;k gS vkSj mruh gh jkf’k dk ¼’kq) dj ;fn dksbZ gks ,oa ,sls Account and an equivalent amount (net of taxes, if any, vfrfjDr izko/kku esa iz;ksT; lkafof/kd izkjf{kfr;ksa dks vUrj.k dks and net of transfer to Statutory Reserve as applicable to such excess provisions) is appropriated to the Investment NksM+dj½ fuos’k vkjf{kr [kkrs esa fofu;kstu fd;k x;k gSA Reserve Account. 2-5 fuos’kksa dh fcØh ls ykHk@gkfu dks tks lEcfU/kr fuos’kksa dh Hkkfjr 2.5 Profit/ Loss on sale of investments are recognized in the vkSlr ykxr@muds cgh ewY; ij vk/kkfjr gS dks ykHk&gkfu [kkrs Profit and Loss Account based on the weighted average esa n’kkZ;k x;k gSA cost of the related investments/ book value thereof.

2-6 vutZd izfrHkwfr;ksa ¼tgak C;kt@ewy cdk;k gS½ ds lEcUèk esa vk; 2.6 In respect of non-performing securities (where interest dk vfHkKku ugha fd;k x;k gS vkSj izfrHkwfr;ksa ds ewY; esa gzkl ds /principal is in arrear) income is not recognized, and fy, mfpr izko/kku fd;k x;k gSA appropriate provision is made for depreciation in value of securities. 70 izeq[k ys[kk uhfr;ka Significant Accounting Policies

2-7 fuos’kksa ds vfHkxzg.k dh ykxr esa deh’ku] nykyh] LVkEi 'kqYd] 2.7 Cost of acquisition of investments excludes commission, izksRlkgu jkf’k vkfn dks lfEefyr ugha fd;k x;k gSA brokerage, stamp duty, incentive etc. 2-8 ÞfcØh ds fy, miyC/kß vkSj Þ[kjhn&fcØh gsrq j[ks x,ß Js.kh 2.8 For the purpose of valuation of Investments in “Available ds fuos’kksa ds ewY;kadu ds fy, izkbejh MhylZ ,lksfl,’ku vkWQ for Sale” & “Held for Trading” category, the rates declared bf.M;k ¼ih-Mh-,-vkbZ-½@fQDLM bude euh ekdsZV ,.M MsfjosfVOt by Primary Dealers Association of India (PDAI) / Fixed Income Money Market and Derivatives Association ,lksfl,’ku ¼fQeMk½ vkSj LVkd ,Dlpsat }kjk ?kksf"kr njksa dks (FIMMDA) and quotes of Stock Exchange has been vkèkkj cuk;k x;k gSA considered.

mu fuos’kksa] ftuds fy, ,slh njsa@nke miyC/k ugha gS] dk Investments for which such rates/quotes are not available ewY;kadu Hkkjrh; fjtoZ cSad }kjk fn, x, ekudksa tks uhps fn, x, are valued as per norms laid down by Reserve Bank of gSa ds vuqlkj fd;k x;k gS % India, which are as under:

2-8-1 bfDoVh 'ks;jksa dk ewY;kadu dEiuh ds uohure rqyui= ¼tks 12 2.8.1 Equity Shares are valued as per latest Balance Sheet ekg ls vf/kd iqjkuk u gks½ ;fn miyC/k gks] ds vuqlkj vU;Fkk of the company (not more than 12 months), if available, ,d :i;k izfr dEiuh ds vk/kkj ij fd;k x;k gSA otherwise are valued at Re. 1/- per company. 2-8-2 E;wpwvy QaMksa dh ;wfuVksa esa fuos’k dk ewY;kadu LVkd ,Dlpsat 2.8.2 Investments in Mutual Funds Units are valued as per dh ewY; lwph ds vuqlkj gqvk gSA xSj lwphc) E;wpwvy QaMksa dh Stock Exchange quotation, Investment in non-quoted ;wfuVksa dk ewY;kadu ;kstuk fo’ks"k ds lUnHkZ esa E;wpwvy QaM }kjk Mutual Fund Units are valued on the basis of the latest ?kksf"kr uohure iqu[kZjhn dher ds vkèkkj ij gqvk gSA mu QaMksa repurchase price declared by the Mutual Fund in respect ds ekeys esa tks ykWd bu vof/k esa gaS rFkk tgka iqu[kZjhn dher@ of each particular Scheme. In case of funds with a lock- cktkj nke miyC/k ugha gS ;wfuVksa dk ewY;kadu 'kq) vkfLr ewY; in period, where repurchase price/ market quote is not ¼,u-,-oh-½ ij gqvk gSA ;fn 'kq) vkfLr ewY; miyC/k ugha gS rks available, Units are valued at NAV. If NAV is not available, budk ewY;kadu ykWd bu vof/k dh lekfIr rd ykxr ij fd;k then the same are valued at cost, till the end of the lock-in x;k gSA tc dgha iqu[kZjhn dher miyCèk ugha gS rks ;wfuVksa dk period. Whenever the re-purchase price is not available, ewY;kadu lEcfU/kr ;kstuk ds 'kq) vkfLr ewY; ij gqvk gSA the Units are valued at the NAV of the respective scheme. 2-8-3 'kwU; dwiu ck.Mksa dk ewY;kadu j[kko ykxr vFkkZr~ vfHkxzg.k 2.8.3 Zero coupon bonds are valued at carrying cost ie. ykxr rFkk ml ij vfHkxzg.k ds le; fo|eku nj ls izksn~Hkwr acquisition cost plus discount accrued at the rate fj;k;r ij fd;k x;k gSA cktkj ewY; ds lUnHkZ esa bu ck.Mksa dks prevailing at the time of acquisition. These bonds are cktkj ewY; ij cgh [kkrs esa vafdr fd;k x;k gSA marked to market with reference to market value. 3- vfxze vkSj mu ij izko/kku% 3. ADVANCES AND PROVISIONS THEREON: 3-1 vfxzeksa dk]s mpar C;kt] eqdnek nk;j fd;s x;s [kkrksa ls izkIr 3.1 Advances are shown net of Interest Suspense, amount fofo/k tek [kkrs esa j[kh jkf’k] lkof/k tek jlhn ds :i esa j[kh received and held in Suit filed Sundry Deposits, Margin ekftZu jkf’k ¼lafnX/k@gkfudj [kkrksa ds ekeys esa½] xSj fu"iknd held in form of FDR (in case of doubtful/loss accounts), Provisions have been made for Non Performing Advances vkfLr;ksa ds fy, le;≤ ij Hkkjrh; fjtoZ cSad }kjk fuèkkZfjr in accordance with the prudential norms prescribed by foosdiw.kZ ekudksa ds vuq:i fd;s x;s izkoèkkuksa vkSj vuqnku vkjf{kr Reserve Bank of India from time to time and Subsidy fuf/k ¼xSj fu"iknd vfxzeksa ij½ ?kVkdj fn[kk;k x;k gSA Reserve Fund (on Non-performing advances).

3-2 Hkkjrh; fjtoZ cSad ds foosdiw.kZ ekudksa ds vuqlkj vfxzeksa dks 3.2 Advances are classified as Standard, Sub-Standard, ekud] voekud] lafnX/k vkSj gkfudj vkfLr;ksa esa oxhZd`r fd;k Doubtful and Loss Assets as per prudential norms of x;k gS vkSj mu ds fy, Hkk-fj-cS- }kjk tkjh fn’kk&funsZ’kksa ds the Reserve Bank of India and Provision is made as per vuqlkj izko/kku fd;k x;k gSA guidelines issued by RBI. 4- vpy vkfLr;ka% 4. fIXED ASSETS: vpy vkfLr;ksa dks mudh vof/kxr ykxr vk/kkj ij ys[ks esaa fy;k Fixed Assets are stated at their historical cost except x;k gS flok; dqN ifjljksa ds] ftudk iquewZY;kadu fd;k x;k certain Premises, which were revalued and are stated at Fkk vkSj ftudk iquewZY;kafdr ewY; n’kkZ;k x;k gSA iquewZY;kadu revalued amounts. The surplus on account of revaluation ds dkj.k vkbZ vfrfjDr jkf’k dks Þiwathxr vkjf{kr fuf/kß 'kh"kZ ds stands credited to Revaluation Reserve under the head vUrxZr ÞiquewZY;kadu izkjf{kr fuf/kß esa tek fd;k x;k gSA “Capital Reserve”. 71 izeq[k ys[kk uhfr;ka Significant Accounting Policies

5- LVkQ fgr ykHk % 5. STAFF BENEFITS ekU;rk izkIr xzsP;qVh dks"k] isa’ku fuf/k vkSj lafpr mikftZr NqfV~V;ksa Contribution to recognized Gratuity Fund, Pension Fund ds udnhdj.k ds fy, izko/kku dh x.kuk ,Dpwfj;y vk/kkj ij dh and Provision for encashment of accumulated earned xbZ gSA leaves are accounted for on actuarial basis. 6- vk; vfHkKku % 6. REVENUE RECOGNITION 6-1 vk; dh igpku izksn~Hkou vk/kkj ij dh xbZ gSA xSj fu"iknd 6.1 Income is recognized on accrual basis. In view of vfxzeksa vkSj fuos’kksa ds ekeys esa olwyh dh vfuf’prrk dks ns[krs uncertainty of realization in case of Non-Performing gq, ,slh vk; dks olwyh gksus ij gh vk; esa fy;k x;k gSA Advances and Investments, such income is accounted for only on realization. 6-2 deh’ku ls vk; ¼cSad xkjUVh lfgr½] fofue; vkSj nykyh] 'kqYd] 6.2 Income from Commission (including bank guarantee), ykWdj ds fdjk;s vkSj vfrns; fcyksa ij C;kt dks izkfIr vkèkkj ij Exchange & Brokerage, Fees, Locker Rent and Interest gh vk; ds :i esa fy;k x;k gSA on Overdue Bills is taken on receipt basis.

7- ewY;gzkl% 7. DEPRECIATION

7-1 ewY;àkl vkfLr;ksa ds mi;ksxh thou tSlk fd dEiuh vf/kfu;e] 7.1 The depreciation has been charged on the basis of 2013 dh ßvuqlwph II** ¼ewY;àkflr ewY; (WDV) ds vuqlkj½ esa useful life of asset as prescribed in ‘Schedule II’ of fufnZ"V gS lEcfU/kr vkfLr;ksa dh ykxr ds 5% vof'k"V ewY; dks the Companies Act, 2013 (as per WDV Method) after ysus ds ckn vkfLr;ksa dh 'ks"k mi;ksxh vof/k dks ysdj fd;k x;k taking residual value @ 5% of the cost of the respective gS A assets.

7-2 [kjhn o"kZ esa iwjs o"kZ dk ewY;gzkl yxk;k x;k vkSj fcØh@ 7.2 Depreciation is charged, for full year in the year of fuLrkj.k@lekfIr ds o"kZ esa dksbZ ewY;gzkl ugha yxk;k@ izHkkfjr purchase and no depreciation is provided/ charged in the fd;k x;k gSA year of sale/disposal/deletion.

7-3 dEI;wVjksa vkSj dEI;wVj lks¶Vos;jksa ij ewY;gzkl dk izko/kku Hkkjrh; 7.3 Depreciation on Computers and Computer Software’s are fjtoZ cSad ds fn’kk&funsZ’kksa ds vuqlkj 33-33 izfr’kr dh nj ls provided on Straight Line Method at the rate of 33.33% in ljy js[kk i)fr ij fd;k x;k gSA line with guidelines of Reserve Bank of India.

8- vk; ij dj % 8. TAXES ON INCOME vk;dj ds fy, ys[kkdj.k bULVhV~;wV vkQ pkVZMZ ,dkmUVSaV In compliance with Accounting Standard-22 on vkWQ bafM;k }kjk tkjh ,dkmfUVax ekud&22 ds vuq:i vkLFkfxr Accounting for Taxes on Income issued by The Institute dj vkfLr@ns;rk ds izHkko ij fopkj djrs gq, fd;k x;k gSA of Chartered Accountants of India, accounting for Income vkLFkfxr dj vkfLr@ns;rk dh lax.kuk rqyu i= dh fnukad rd tax is made after considering the effect of Deferred Tax izpfyr dj dh njksa vkSj fu;eksa ds vuqlkj dh xbZ gSA assets/ liabilities. While calculating the deferred tax assets/ liabilities, tax rates and laws that have been enacted or substantively enacted as of Balance Sheet date are applied.

9- dkjiksjsV lkekftd mRrjnkf;Ro ¼lh,lvkj½% 9. Corporate Social Responsibility (CSR)

dEiuh vf/kfu;e 2013 ds [k.M 135 ds vuqlkj cSad ls vis{kk dh According to Section 135 of the Companies Act, 2013, tkrh gS fd og dk-lk-m-¼lh,lvkj½ lfefr cuk;sA cSad us mDr bank is required to have CSR Committee. Bank has ,DV ds izko/kkuksa ds vuqlkj lh-,l-vkj- lfefr ds xBu dh izfdz;k complied with the provisions of the Act regarding iw.kZ dj yh gS A formation of CSR committee.

72 [kkrksa ij fVIif.k;k¡ Notes on Accounts vuqlwph 18% [kkrksa ij fVIif.k;k¡&2015&16 SCHEDULE 18: NOTES ON ACCOUNTS-2015-16 1- ;s [kkrs cSaddkjh fofu;eu vf/kfu;eu] 1949 dh /kkjk 29 ftls 1. The accounts have been drawn up in accordance with the dEiuh vf/kfu;e] 2013 dh /kkjk 128 ds lkFk i<+k tk,] dss izkoèkkuksa provisions of Section 29 of Banking Regulation Act, 1949 ds vuqlkj rS;kj fd, x, gSaA read with the provisions of Section 128 of the Companies Act, 2013.

2- rqyui= esa lHkh vkadM+s Hkkjrh; gtkj #i;s esa n'kkZ;s x;s gSa flok; 2. All figures in Balance Sheet are provided in Indian Rupees in izfr 'ks;j vk; ds ftls #i;s esa n'kkZ;k x;k gS A terms of thousands except EPS, which is shown in Rupees.

3- cgh larqyu vkSj lek/kku 3. BALANCING OF BOOKS AND RECONCILIATION:

3-1 dqN 'kk[kkvksa eas lgk;d cgh@rqyu cgh esa 'ks"k feyku ;k egkcgh 3.1 At some branches, balancing of subsidiary ledgers / bal- esa rn~uq:i fu;a=d [kkrksa ls muds lek/kku dk dk;Z izxfr ij gSA ance books or reconciliation thereof with the corresponding control accounts in General Ledger are in progress.

3-2 [kkrksa ds fofHkUu 'kh"kksZa ftuesa varj 'kk[kk lek;kstu@lek’kks/ku 3.2 Reconciliation of some debit / credit entries outstand- lek;kstu vkfn lfEefyr gS esa cdk;k dqN ukes@tek izfof"V;ksa esa ing in various heads of accounts included in Inter Branch lekèkku dk dk;Z izxfr ij gSA Adjustments/ Clearing adjustments etc are in progress. 3-3 mijksDr cgh larqyu@lek/kku@feyku dk dk;Z tks vHkh iwjk ugha 3.3 Pending completion of aforesaid balancing /reconciliation/ gqvk gS ds ifj.kkeLo:i gksus okys lek;kstu dk [kkrksa ij izHkko matching, the impact of consequential adjustments on the lqfu’pr fd;s tkus ;ksX; ugha gSA accounts is not ascertainable. 4- vfxze 4. ADVANCES: 4-1 ekud vfxzeksa ds fy, fd, x, izko/kku rFkk izko/kku dh ml jkf’k 4.1 Provision made for Standard Advances and Provision made esa ls tks Hkk-fj-cSa- ds foosdiw.kZ ekudksa ds vuqlkj visf{kr jkf’k ls in excess of RBI prudential norms after meeting the write off vf/kd gS gkfudj vkfLr;ksa dh cV~Vs [kkrs Mkyh tkus okyh jkf’k dks of loss assets are included under the head “Other Liabilities and de djds ÞvU; nkf;Ro vkSj micUèkß 'kh"kZ ds vUrxZr lfEefyr Provisions” except the accumulated balance of ` 312.54 Lac up fd;k x;k gS flok; vk;dj vf/kfu;e] 1961 dh /kkjk 36 ¼1½ ¼vii to the close of the year 1997-98 created under Section 36(1) d½ ds vUrxZr o"kZ 1997&98 dh lekfIr rd dh :0 312-54 yk[k (vii a) of the Income Tax Act, 1961, which is continued to be dh lafpr jkf’k ds] ftls fujUrj Þvkjf{kfr;ka vkSj vf/k’ks"kß 'kh"kZ ds shown under the head “Reserve & Surplus”. vUrxZr n’kkZ;k tk jgk gSA 4-2 Hkk0fj0cSa0 ds fn’kk&funsZ’kksa ds vuqlkj cgh _.k ds fo:) fd, x, 4.2 In accordance with guidelines issued by Reserve Bank of vfxzeksa dks ÞewrZ vkfLr;ksa }kjk izfrHkwrß 'kh"kZ ds vUrxZRk lfEefyr India, advances against book debts have been included un- der the head “Secured by Tangible Assets” which is not in fd;k x;k gS tks bULVhV~;wV vkQ pkVZMZ ,dkmUVSUV~l vkWQ bf.M;k line with guidance note issued by The Institute of Chartered }kjk fn, x, ekxZn’kZu uksV ds vuq:i ugha gSA Accountants of India.

5- djksa ds fy, izko/kku 5. PROVISION FOR TAXATION: ,lSleSaV@vk;dj vf/kfu;e dh vihy ds fopkjk/khu ekeyksa ds In respect of pending cases of assessment /appeal under The Income Tax Act, the provisions already made are, in lEcU/k esa U;kf;d mn~?kks"k.kk vkSj@;k U;kf;d lykgdkj dh jk; view of judicial pronouncement and/ or counsel’s opinion, ds vuqlkj igys ls gh fd, izko/kkuksa dks leqfpr ekuk x;k gSA considered to be adequate . 6- Hkk0fj0cSa0 }kjk tkjh fn’kk funsZ’kksa ds vuqlkj fuEufyf[kr 6 In terms of guidelines issued by the RBI the following izdVhdj.k izLrqr fd, tk jgs gSa % disclosures are furnished:

73 [kkrksa ij fVIif.k;k¡ Notes on Accounts

6-1 iwath% 6.1 Capital:

Ø- la- en@Items pkyw o"kZ foxr o"kZ S. No. Current Year Previous Year i) tksf[ke Hkkfjr ifjlEifr dh rqyuk esa iwath dk CRAR (%) 15.75% 14.71 % vuqikr ¼izfr’kr½ ii) tksf[ke Hkkfjr ifjlEifr dh rqyuk esa iwath dk CRAR - Tier I capital (%) 15.24% 14.26% vuqikr & fV;j I iwath ¼izfr’kr½ iii) tksf[ke Hkkfjr ifjlEifr dh rqyuk esa iwath dk CRAR - Tier II Capital (%) 0.51% 0.45% vuqikr & fV;j II iwath ¼izfr’kr½ iv) jk"Vªh;d`r cSadksa esa Hkkjr ljdkj dh 'ks;j èkkfjrk Percentage of the shareholding of the Government of NA NA dk izfr’kr India in nationalized banks v) cSad vkWQ cM+kSnk dh 'ks;j /kkfjrk dk izfr’kr Percentage of Share holding of Bank of Baroda 98.57% 98.57%

vi) fV;j II iwath ds :i esa fn, x, xkS.k _.k Amount of subordinated debt raised as Tier-II capital - - dh jkf’k

csly@BASEL III i) tksf[ke Hkkfjr ifjlEifÙk dh rqyuk esa iwath dk CRAR (%) 15.69% 14.86 % vuqikr ¼izfr'kr½

ii) tksf[ke Hkkfjr ifjlEifÙk dh rqyuk esa fV;j&I CRAR - Tier I capital (%) 15.25% 14.41% iwath ¼izfr’kr½ iii) tksf[ke Hkkfjr ifjlEifÙk dh rqyuk esa fV;j& CRAR - Tier II Capital (%) 0.44% 0.45 % II iwath ¼izfr’kr½

6-2 fuos’k % 6.2 Investments: (Rs in crore) Ø- la- pkyw o"kZ foxr o"kZ en@Items S. No. Current Year Previous Year 1. fuos’kksa dk ewY; Value of investments (i) fuos’kksa dk ldy ewY; Gross value of investments

¼d½@(a) Hkkjr esas In India 1381.41 1379.23 ¼[k½@(b) Hkkjr ls ckgj Outside India 0.00 0.00 (ii) ewY;gzkl ds fy, izko/kku Provision for depreciation

¼d½@(a) Hkkjr esas In India 0.00 1.08 ¼[k½@(b) Hkkjr ls ckgj Outside India 0.00 0.00 (iii) fuos’kksa dk 'kq) ewY; Net value of investments

¼d½@(a) Hkkjr esas In India 1381.41 1378.15 ¼[k½@(b) Hkkjr ls ckgj Outside India 0.00 0.00 fuos’kksa ij ewY;gzkl ds fy, izko/kku esa Movement of provisions held towards 2. mrkj&p<+ko depreciation on investments (i) vFk'ks"k Opening Balance 1.08 3.72 (ii) tksM+sa % o"kZ ds nkSjku fd;k x;k izko/kku Add: Provisions made during the year 0.00 0.00

?kVkb, % o"kZ ds nkSjku vfrfjDr izko/kku dh Less: Write off/Write back of excess provisions (iii) 1.08 2.64 cV~Vs [kkrs esa Mkyh xbZ@iqjkafdr jkf’k during the year (iv) bfr 'ks"k Closing Balance 0.00 1.08

74 [kkrksa ij fVIif.k;k¡ Notes on Accounts

6-2-1 fjiks ¼iqu% [kjhn½ ysu&nsu % 'kwU; 6.2.1 Repo Transactions : NIL

6-2-2 xSj ,l-,y-vkj- fuos’k lafoHkkx % 6.2.2 Non-SLR Investment Portfolio :

1- xSj ,l-,y-vkj- fuos’kksa ds fuxZedŸkkZvksa dk la?kVu 1. Issuer composition of Non SLR investments

¼:- djksM+ esa½@(Rs in crore) ^bUosLVeSaV xzsM ls os izfrHkwfr;ka ^xSj lwphc)* Ø-la- jkf’k izkbosV LFkkiu@ uhps* dh izfrHkwfr;ka ftudh nj tkjhdrkZ@Issuer izfrHkwfr;ka S. No. Amount Private Placement ‘Below investment fuèkkZfjr ugha gSaA Unlisted Grade’ securities Unrated

lkoZtfud {ks= ds miØe 7.20 7.20 0.00 0.00 0.00 (i) PSU (17.05) (11.34) (0.00) (0.00) (0.00)

foŸkh; laLFkku 92.37 51.29 0.00 0.00 0.00 (ii) Financial Institutions (115.45) (66.25) (0.00) (0.00) (0.00)

cSad 15.05 10.02 0.00 0.00 0.00 (iii) Banks (15.15) (10.13) (0.00) (0.00) (0.00)

futh dEiuh 15.51 0.00 0.00 0.00 0.00 (iv) Private Corporate (15.51) (0.00) (0.00) (0.00) (0.00)

lgk;d@la;qDr m|e 0.00 0.00 0.00 0.00 0.00 (v) Subsidiaries/Joint Ventures (0.00) (0.00) (0.00) (0.00) (0.00)

vU; 78.38 0.00 0.00 0.00 0.00 (vi) Others (148.00) (0.00) (0.00) (0.00) (0.00)

ewY;gzkl ds fy, izko/kku 0.00 0.00 0.00 0.00 0.00 (vii) Provisions held for depreciation (0.00) (0.00) (0.00) (0.00) (0.00)

208.50 68.51 0.00 0.00 0.00 tksM+@Total (311.16) (87.71) (0.00) (0.00) (0.00) uksV% dks"Bd esa nh xbZ la[;k,a foxr o"kZ dh la[;kvksa dks n’kkZrh gSaA Note: Figures in bracket indicates previous year’s figures.

2- vutZd gks x;s xSj ,l-,y-vkj- fuos’k & 2. Non performing Non-SLR investments –

¼:- djksM+ esa½@(Rs in crore)

fooj.k@Particulars pkyw o"kZ @Current Year foxr o"kZ@Previous Year

vFk 'ks"k@Opening Balance 0.00 0.00

o"kZ ds nkSjku o`f) ¼1 vizsy] 2015 ls 31 ekpZ] 2016 rd½ 0.00 0.00 Addition during the year(since 1st April 2015 to 31st March 2016)

mijksDr vof/k ds nkSjku deh@Reductions during the above period 0.00 0.00

bfr 'ks"k@Closing balance 0.00 0.00

ldy izko/kku@Total provisions held 0.00 0.00

6-3 O;qRiUu % 'kwU; 6.3 Derivatives : NIL

75 [kkrksa ij fVIif.k;k¡ Notes on Accounts

6-4 vkfLr;ksa dh xq.koÙkk % 6.4 Asset Quality :

6-4-1 vutZd vkfLr;ka & 6.4.1 Non-Performing Asset –

¼:- djksM+ esa½@(Rs in crore)

Ø- la- en@Items pkyw o"kZ foxr o"kZ S. No. Current Year Previous Year

(i) 'kq) vfxze esa 'kq) xS-fu-vk- ¼izfr’kr½ Net NPAs to Net Advances (%) 1.05 0.00

(ii) xS-fu-vk- ¼ldy½ esa mrkj&p<+ko Movement of NPAs (Gross)

d@a vFk’ks"k* Opening balance* 77.41 61.10*

[k@b o"kZ ds nkSjku ifjo/kZu Additions during the year 57.54 26.30

x@c o"kZ ds nkSjku deh Reductions during the year 15.58 9.99

?k@d bfr 'ks"k* Closing balance* 119.37 77.41

(iii) ’kq) xS-fu-vk- esa mrkj&p<+ko Movement of Net NPAs

d@a vFk’ks"k* Opening balance 0.00 0.00

[k@b o"kZ ds nkSjku ifjo/kZu Additions during the year 27.73 0.00

x@c o"kZ ds nkSjku deh Reductions during the year 0.00 0.00

?k@d bfr 'ks"k* Closing balance 27.73 0.00

xS-fu-vk- ds fy, izko/kku esa mrkj&p<+ko Movement of provisions for NPAs (iv) ¼ekud vkfLr;ksa ds fy, izko/kku dks NksM+dj½ (excluding provisions on standard assets)

d@a vFk’ks"k* Opening balance** 77.41 67.07

[k@b o"kZ ds nkSjku fd, x, izko/kku Provisions made during the year 11.82 10.67 vfrfjDr izko/kku dh cV~Vs [kkrs esa Mkyh x;h@ x@ Write-off/ write-back of excess provisions 0.09 0.33 c izfrysf[kr dh xbZ jkf’k

?k@d bfr 'ks"k* Closing balance ** 89.14 77.41

*mpar C;kt dh jkf’k dks ?kVkdj vkbZ jkf’k *Amount is net of interest suspense **bl jkf’k esa vLFkkbZ izko/kku lEefyr gSA ** Amount includes floating provision

76 [kkrksa ij fVIif.k;k¡ Notes on Accounts

6-4-2 iquxZBu ds vk/khu _.k vkfLr;ksa dk fooj.k 6.4.2 Details of Loan Assets subjected to Restructuring

dEiuh _.k iquxZBu rU= ds Yk?kq] lw{e m|ksx _.k iquxZBu Ø- iquxZBu dk izdkj vUrxZr ra= ds vUrxZr vU;@Others ;ksx@Total la- Types of Restructure Under CDR Mechanism Under SME Debt Rest.Mech Sr. vkfLr oxhZ-@Asset Clss. Ekk- voek- Lak- gkfu- ;ksx- Ekk- voek- Lak- gkfu- ;ksx Ekk- voek- Lak- gkfu- ;ksx Ekk- voek- Lak- gkfu- ;ksx No. fooj.k@Details St Ss D Lo Tot St SS D Lo Tot St SS D Lo Tot St SS D Lo Total m/kkjdrkZvksa dh la[;k 472 12 - - 484 472 12 - - 484 No.of Borr.

Ckdk;k jkf'k 37.37 37.37 + 01&04&2015 dks iquxZfBr [kkrs 1. Amt. +5.91*= 0.05 - - 43.33 5.91 = 0.05 - - 43.33 Rest. a/c as on 1.04.2015 O/St 43.28 43.28 izko /kku 2.09 0.01 - - 2.10 2.09 0.01 - - 2.10 Prov. m/kkjdrkZvksa dh o"kZ ds nkSjku u;s iquxZfBr [kkrs la[;k 8 - - - 8 8 - - - 8 Fresh. No.of Borr. Rest. Ckdk;k jkf'k 2. During Amt. 0.59 - - - 0.59 0.59 - - - 0.59 The O/St Year izko /kku Prov. 3 mPphdj.k 0.02 0.02 0.02 0.02 ------Upgradation (03) (03) (03) (03) iquxZ-ek-vk-ftuds fy, cM+s izko/ No.of Borr. 77 - 77 77 - - - 77 kku dh vkSj@;k fo-o- dh lek- - fIr ij tksf[ke Hkkj tksM+us dh vko';drk ugha gS vr% mUgsa vkxkeh foRrh; o"kZ dh 'kq#vkr Amt. O/St 7.24 - - 7.24 7.24 - - - 7.24 ij iquxZ-ds #i esa n'kkZus dh 4 vko';drk ugha gSA Rest. St. Adv.which cease to attract higher prov.and or add. Risk weight at the end of the Prov. FYand hence need not be shown as rest.St. adv.at the beg. Of next FY

m/kkjdrkZvksa dh foRrh; o"kZ ds nkSjku iquxZ- [kkrksa 138 5. la[;k dk Lrj fuEurj gksuk 127 7 4 138 127 7 4 No. of Borro. Downgrading of rest. a/cs during Ckdk;k jkf'k the FY 6.67 0.06 0.04 6.77 6.67 0.06 0.04 6.77 Amt. O/S

o"kZ ds nkSjku cV~Vs [kkrs Mkys 6 x;s iquxZ- [kkrs NIL Write off rest. a/cs during the year m/kkjdrkZvksa dh la[;k 127 4 - 285 7 423 285 127 7 4 423 No. of Borro.

Ckdk;k jkf'k 31-03-2016 dks iquxZZ-[kkrs 7 Amt. O/S 21.98 6.36 0.09 0.04 28.47 21.98 6.36 0.09 0.04 28.47 Rest. a/cs as on 31.03.16

izko /kku 1.79 0.95 0.05 0.04 2.83 1.79 0.95 0.05 0.04 2.83 Prov. uksV% dqN 'kk[kkvksa us xSjbjknru 2014&15 esa dqN iquZxfBr [kkrksa ftudk vf/k'ks"k yxHkx #-5-91 djksM+ gS iquZxfBr iksVZQksfy;ks esa 'kkfey ugha fd;k gS tks vc 'kkfey dj fy;k x;k gS blds izHkko Lo#i 31&03&2016 dks ekud [kkrksa dh la[;k esa vUrj vk;k gSA ftlesa ystj gksVYl fyfeVsM ftldk vf/k'ks"k #-3-15 djksM+ gS vkSj tks Hkkjrh; fjtoZ cSad ds ,,QvkbZ esa tqykbZ] 2015 esa izdk'k esa vk;k FkkA

NOTE: A few of the branches had inadvertently left from reporting accounts which were restructured during FY 2014-15 having aggregate O/s balance of appx. ` 5.91 Crore in the restructured portfolio of the Bank which have been now accounted for and as a result of this, there is difference in the number of standard accounts as on 31.03.2016. This includes an amount of Leisure Hotels Ltd. Having O/s balance ` 3.15 crores which was detected during AFI of RBI in July 2015.

77 [kkrksa ij fVIif.k;k¡ Notes on Accounts

6-4-3 vkfLr;ksa dh iqul±jpuk ds fy, % 'kwU; 6.4.3 Details of financial assets sold to : NIL flD;wfjVkbZts’ku@ iqufuZekZ.k dEiuh Securitisation/Reconstruction dks csph xbZ foÙkh; vkfLr;ksa dk fooj.k Company for Asset Reconstruction

6-4-3 ¼d½ [kjhnh@csph xbZ xSj fu"iknd% 'kwU; 6.4.3 (a) Details of non performance : NIL foÙkh; vkfLr;ksa dk fooj.k financial assets purchases/sold

6-4-4 ekud vkfLr;ksa ds fy, izko/kku 6.4.4 Provisions on Standard Asset

¼:- djksM+ esa½@(Rs in crore) pkyw o"kZ foxr o"kZ en@Item Current Year Previous Year

ekud vkfLr;ksa ds fy, izko/kku@Provisions towards Standard Assets 11.49 8.84

6-4-5 foÙkh; o"kZ 2015&16 ds fy, vLFkkbZ izko/kku 6.4.5 floating Provisions for Financial year 2015-16 ¼:- djksM+ esa½@(Rs in crore)

en@Item pkyw o"kZ@Current Year foxr o"kZ@Previous Year d½ vLFkkbZ izko/kku [kkrs esa vFk’ks"k 40.77 37.02 a) Opening balance in the floating provisions account [k½ ys[kk o"kZ esa fd;s x;s vLFkkbZ izkoèkku dh ek=k 0.00 3.75 b) The quantum of floating provision made in the accounting year x½ ys[kk o"kZ esa fd;s x;s vkgj.k }kjk fxjkoV dh jkf’k 0.00 0.00 c) Amount of draw down made during the accounting year* ?k½ vLFkkbZ izko/kku [kkrs esa bfr 'ks"k 40.77 40.77 d) Closing balance in the floating provision account

6-4-6 izko/kku lqj{kk vuqikr 6.4.6 Provisioning Coverage Ratio

pkyw o"kZ@Current Year foxr o"kZ@Last Year

ldy izko/kku@ldy ,u-ih-,-@Total Provision/Total NPA 89.14 /119.37 77.41/ 77.41 74.67% 100% cSad us 31 ekpZ] 2016 dks ldy ,u-ih-,- ds fy, 74-67 izfr'kr izko/kku lqj{kk vuqikr j[kk tcfd Hkk-fj-cSa- us blds fy, 70 izfr'kr dk ekud fuèkkZfjr fd;k gSA blfy, 'kq) ,u-ih-,- #-27-73 djksM+ gSA ldy izko/kku esa #-40-77 djksM+ dk vLFkkbZ izko/kku lfEefyr gSA The bank has achieved Provisioning Coverage Ratio of 74.67% as against the stipulated RBI provision coverage ratio norm of 70% with reference to the gross NPAs as at 31st March, 2016. Hence the net NPAs stands at ` 27.73 Crore .Total provision includes float- ing provision amounting to ` 40.77 crore.

6-5 O;kolkf;d vuqikr 6.5. Business Ratio Ø-la- pkyw o"kZ ¼izfr'kr½ foxr o"kZ ¼izfr'kr½ en@Item Sr. No. Current Year (%) Previous Year (%) i. dk;Zdkjh fuf/k esa C;kt ls vk; dk izfr’kr 9.14% 9.55% Interest Income as a percentage to Working Funds ii. dk;Zdkjh fuf/k esa xSj C;kt ls vk; dk izfr’kr 0.49% 0.93% Non-interest income as a percentage to Working Funds iii. dk;Zdkjh fuf/k esa ifjpkyu ykHk dk izfr’kr 1.42% 1.98% Operating Profit as a percentage to Working Funds iv. vkfLr;ksa ls izkfIr dk izfr'kr@Return on Assets 0.80% 1.26% v. izfr deZpkjh O;olk; ¼tek vkSj vfxze] cSad tek dks NksM+dj½ ¼:0 djksM+ esa½ 10.78 9.88 Business (Deposits plus Advances excluding Bank deposits) per employee (` in crore) vi. izfr deZpkjh ykHk ¼:0 djksM+ esa½ 0.07 0.09 Profit per employee (` in crore)

78 [kkrksa ij fVIif.k;k¡ Notes on Accounts

6-6 vkfLr ns;rk izcU/ku ¼,-,y-,e-½ 6.6 Asset Liability Management (ALM) vkfLr;ksa vkSj ns;rkvksa ds dqN enksa dh ifjiDork i)fr ds vkadMs+ uhps fn;s x;s gSa ¼;s vkadM+s izcU/ku }kjk ladfyr fd, x, gSa rFkk mu ij ys[kk ijh{kdksa }kjk fo’okl fd;k x;k gSA½ Maturity pattern of certain items of assets and liabilities (as compiled by the management and relied upon by the Auditors) are as under:

¼:- djksM+ esa½@(Rs in crore)

3 ekg ls 6 ekg ls 1 o"kZ ls 3 o"kZ ls 29 fnu 2 ls 8 ls 14 vf/kd vf/kd vf/kd vf/kd 15 ls 28 ls 3 ekg 5 o"kZ ls 7 fnu fnu vkSj 6 ekg vkSj 1 o"kZ vkSj 3 o"kZ vkSj 5 o"kZ ns;rk,a 1 fnu@ fnu rd@ rd@ rd@ vf/kd@ dqy@ rd@ rd@ rd@Over rd@Over rd@Over Liabilities 1 day 15 to 28 29 days Over 3 Over 5 Total 2 to 7 8 to 14 6 months 1 year & 3 years days to 3 months years days days & up to 1 up to 3 & up to 5 months & up to 6 year years years months tek@Deposits 24.49 134.74 133.18 72.23 471.55 826.89 1539.78 2033.23 62.24 12.26 5310.59 (55.83) (121.50) (158.11) (118.08) (372.07) (896.06) (1615.76) (1260.60) (733.33) (12.70) (5344.04)

vfxze@ 29.52 83.11 96.73 194.04 200.39 83.09 102.35 1399.80 215.00 282.05 2686.08 Advances (23.31) (94.58) (96.36) (191.23) (196.11) (51.22) (104.66) (1390.04) (167.11) (282.29) (2596.91) fuos’k@ 30.00 9.53 0.00 0.00 287.58 0.00 89.07 84.03 84.72 796.48 1381.41 Investments (148.00) (0.00) (14.72) (14.80) (403.86) (29.20) (24.50) (107.84) (135.36) (500.95) (1379.23) m/kkj@ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.09 0.00 0.03 0.12 Borrowings (0.02) (0.00) (0.00) (0.00) (0.00) (0.08) (0.00) (0.01) (0.04) (0.01) (0.16) fons’kh eqnzk vkfLr;ka 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Foreign Currency (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) assets fons’kh eqnzk ns;rk,a 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Foreign Currency (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) liabilities uksV % dks"Bd esa fn, x, vkadM+sa foxr o"kZ ds vkadM+ksa dks n’kkZrs gSa Note: Figures in bracket indicates previous year figures

6-7 laosnu’khy {ks= dks m/kkj 6.7 Lending to Sensitive Sector

6-7-1 Hkwfe Hkou {ks= dks _.k 6.7.1 Exposure to Real Estate Sector ¼:- djksM+ esa½@(Rs in crore) Ø-la- pkyw o"kZ foxr o"kZ Js.kh@Category S. No. Current Year Previous Year

d½@A) izR;{k _.k Direct exposure i) vkoklh; ca/kd& vkoklh; lEifÙk tks mèkkj Residential Mortgages – Lending fully 357.72* 365.07 dÙkkZ ds dCts esa gS ;k gksxh ;k mlds }kjk secured by mortgages on residential property (202.27) (215.96) fdjk;s ij nh xbZ gS dks ca/kd cukdj iwjh rjg that is or will be occupied by the borrower lqjf{kr mèkkj ¼izkFkfedrk izkIr {ks= ds vUrxZr or that is rented; (Individual housing loans oxhZd`r O;fDrxr vkokl _.k vkj-ch-vkbZ- ds classified as Priority Sector as per RBI fn'kk&funsZ'kksa ds vuqlkj vyx ls fn[kk;k tk guidelines may be shown separately) ldrk gS½ ii) O;kikfjd Hkwfe Hkou& O;kikfjd Hkwfe Hkou Commercial Real Estate– Lending secured 195.45** 131.18 ¼dk;kZy; Hkou] [kqnjk txg] cgq mn~ns’kh; by mortgages on commercial real estates O;kikfjd ifjlj] vusd ifjokjksa ds vkoklh; (office buildings, retail space, multi-purpose Hkou] vusd O;fDr;ksa dks fdjk;s ij fn;s x;s commercial premises, multi-family residen- O;kolkf;d Hkou] m|ksx ;k xksnke ds fy, txg] tial buildings, multi-tenanted commercial gksVy] Hkwfe ij dCtk] fodkl vkSj lajpuk vkfn½ premises, industrial or warehouse space, dks ca/kd cukdj iwjh rjg lqjf{kr _.kA _.k hotels, land acquisition, development and esa xSj fufèk vk/kkfjr lhek,a Hkh lfEefyr gksaxhA construction, etc.). Exposure would also in- clude non-fund based (NFB) limits;

79 [kkrksa ij fVIif.k;k¡ Notes on Accounts

Ø-la- pkyw o"kZ foxr o"kZ Js.kh@Category S. No. Current Year Previous Year iii) ca/kd ls lefFkZr izfrHkwfr;ksa esa fuos’k rFkk vU; izfrHkwr Investments in Mortgage Backed Securities (MBS) _.k & and other securitised exposures – ¼v½ vkoklh; a. Residential, - - ¼c½ O;kikfjd Hkwfe Hkou b. Commercial Real Estate. - - [k½@B) vizR;{k _.k Indirect Exposure jk"Vªh; vkokl cSad vkSj vkokl foÙkh;u dEifu;ksa dks Fund based and non-fund based exposures 0.00 fuf/k vkèkkfjr vkSj xSj fuf/k vk/kkfjr _.kA on (NHB) and Housing Finance Companies (HFCs) Hkwfe Hkou {ks= dks dqy _.k Total Exposure to Real Estate Sector 553.17 496.25

*blesa LVkQ dks fn, x, vkokl _.kksa dh jkf’k lfEefyr gSA *include staff housing loans. **blesa okf.kfT;d Hkwfe Hkou {ks= dks _.k lEefyr gS& **Exposure to Commercial Real Estate includes & fuf/k vk/kkfjr _.k :- 185-62 djksM++ -Funded Exposure ` 185.62 crore & xSj fuf/k vk/kkfjr _.k :- 9-83 djksM+ -Non Funded Exposure ` 9.83 crore & cSad vkQW cM+kSnk ds lkFk vkbZchihlh :- 45-00 djksM+ -IBPC Participation with ` 45.00 crore lgHkkfxrk Bank of Baroda

6-7-2 iawth cktkj esa ,Dlikstj ¼_.k½ 6.7.2 Exposure to Capital Market ¼:- djksM+ esa½@(Rs in crore) Ø-la- pkyw o"kZ foxr o"kZ fooj.k@Particulars S. No. Current year Previous Year i) bfDoVh 'ks;j] ifjorZuh; ckaMksa] ifjorZuh; fMcsapjksa rFkk direct investment in equity shares, convertible 0.00 0.00 bZfDoVh mUeq[k E;qP;qvy QaMksa dh ;wfuVksa esa izR;{k fuos’k bonds, convertible debentures and units of ftudh laiw.kZ jkf’k dsoy daiuh _.k esa fuosf’kr ugha gSA equity-oriented mutual funds the corpus of which is not exclusively invested in corporate debt; ii) 'ks;jksa ¼vkbZ-ih-vks-@bZ-,l-vks-ih- lfgr½] ifjorZuh; ckaMksa] advances against shares/bonds/ debentures or ifjorZuh; fMcSpjksa] rFkk bZfDoVh mUeq[k E;qP;qvy QaMksa other securities or on clean basis to individuals dh ;wfuVksa esa fuos’k djus ds fy, O;fDr;ksa dks 'ks;jksa@ for investment in shares (including IPOs/ESOPs), ckaMkas@fMacsapjksa vFkok vU; izfrHkwfr;ksa dh tekur ij convertible bonds, convertible debentures, and vFkok cstekurh vk/kkj ij vfxze units of equity-oriented mutual funds; iii) fdlh vU; iz;kstuksa ds fy, vfxze tgka 'ks;j vFkok advances for any other purposes where shares ifjorZuh; ckaM vFkok ifjorZuh; fMcsapj vFkok bZfDoVh or convertible bonds or convertible debentures or mUeq[k E;qP;qvy QaMksa dh ;wfuVksa dks izkFkfed tekur ds units of equity oriented mutual funds are taken as :i esa fy;k tkrk gS primary security; iv) fdUgha vU; iz;kstuksa 'ks;jksa vFkok ifjorZuh; ckaMksa vFkok advances for any other purposes to the extent ifjorZuh; fMcsapjksa vFkok bZfDoVh mUeq[k E;qP;qvy QaMks secured by the collateral security of shares or dh ;wfuVksa leFkZd tekur }kjk jf{kr fgLls dh lhek convertible bonds or convertible debentures rd vFkkZr~ tgka 'ks;jksa@ifjorZuh; ckaMksa@ifjorZuh; or units of equity oriented mutual funds i.e. fMcsapjksa@bZfDoVh mUeq[k E;qP;qvy QaMksa dh ;wfuVksa ls where the primary security other than shares/ convertible bonds/convertible debentures/units brj izkFkfed tekur vfxzeksa dks iw.kZr% doj ugha djrh] of equity oriented mutual funds `does not fully ds fy, vfxze cover the advances; v) LVkWd nykyksa dks tekurh rFkk cstekurh vfxze rFkk secured and unsecured advances to stockbrokers LVkWd nykyksa rFkk ekdsZV esdjksa dh vksj ls tkjh xkjafV;ka and guarantees issued on behalf of stockbrokers and market makers; vi) lalk/ku tqVkus dh izR;k’kk esa ubZ daifu;ksa dh bZfDoVh esa loans sanctioned to corporate against the security izorZd ds va’knku dks iwjk djus ds fy, 'ks;jksa@ckaMksa@ of shares / bonds/debentures or other securities fMcsapjksa vFkok vU; izfrHkwfr;ksa dh tekur ij vFkok or on clean basis for meeting promoter’s fcuk tekur ds daifu;ksa dks eatwj fd, x, _.k contribution to the equity of new companies in anticipation of raising resources; vii) visf{kr bZfDoVh izokgksa@fuxZeksa dh tekur ij daifu;ksa bridge loans to companies against expected dks fn, x, rkRdkfyd ¼fczt½ _.k equity flows/issues; viii) 'ks;jksa@ifjorZuh; ckaMksa vFkok ifjorZuh; fMcsapjksa vFkok underwriting commitments taken up by the bZfDoVh mUeq[k E;qP;qvy QaMksa dh ;wfuVksa ds izkFkfed banks in respect of primary issue of shares or fuxZe ds laca/k esa cSadksa dh gkehnkjh izfrc)rk,a convertible bonds or convertible debentures or units of equity oriented mutual funds; ix) ekftZu VsªfMax ds fy, LVkWd nykyksa dks foÙkiks"k.k financing to stockbrokers for margin trading; x) tksf[ke iwath fuf/k;ksa ¼iathd`r rFkk iathd`r u fd, x, all exposures to Venture Capital Funds (both nksuksa½ esa lHkh ,Dlikstj registered and unregistered) iawth cktkj esa dqy ,Dlikstj ¼_.k½ Total Exposure to Capital Market 0.00 0.00 80 [kkrksa ij fVIif.k;k¡ Notes on Accounts

6-7-3 tksf[ke dh Js.khokj fdlh ns’k dks _.k % 'kwU; 6.7.3 Risk Category wise Country Exposure : NIL 6-7-4 _.k dk fooj.k tgka cSad us O;fDrxr@lewg mèkkjdrkZ ds 6.7.4 Details of Single Borrower Limit (SBL), Group fy;s ;Fkksfpr m/kkj lhek dk mYya?ku fd;k % Borrower Limit (GBL) exceeded by the bank. cSad us fdlh O;fDrxr] lewg [kkrs ds fy;s foosd lEer _.k The Bank has not exceeded the prudential limits in re- lhek dk mYya?ku ugha fd;kA spect of any individual, group account 6.7.5 Unsecured Advances 6-7-5 xSj tekurh vfxze For determining the amount of unsecured advances re- vuqlwph 9 esa n’kkZ;s x;s xSj tekurh vfxzeksa dh jkf’k fuf’pr flected in Schedule 9, the rights, licenses, authorizations, djus ds fy, cSad }kjk foÙkiksf"kr ifj;kstukvksa ¼lajpukRed etc., charged to the bank as collateral in respect of pro- ifj;kstukvksa lkfgr½ esa vf/kdkj] ykbZlSal] vfèkdj.k vkfn tks cSad jects (including infrastructure projects) financed by bank, esa leFkZd tekur ds :i esa gSa dks xkspj izfrHkwfr ds :i esa ugha have not been reckoned as tangible security. Hence such fxuk x;k gSA blfy, ,sls vfxzeksa dks vlqjf{kr ekuk x;k gSA ,slk advances have been reckoned as unsecured. Moreover, dksbZ vfxze ugha gS ftlds fy, vxkspj izfrHkwfr tSls & vf/kdkjksa there is no amount of advance for which intangible secu- ij izHkkj] ykblSal] vf/kdkj vkfn dks flD;ksfjVh ds :i esa j[kk rities such as charge over the rights, licenses, authority, x;k gksA etc has been considered. 6-8 fofo/k 6.8 Miscellaneous 6-8-1 o"kZ ds nkSjku vk; dj ds fy, fd, x, izko/kku dh 6.8.1 Amount of Provisions made for Income-tax during the jkf’k year; ¼:0 djksM+ esa½ (` in crore)

pkyw o"kZ foxr o"kZ Current Year Previous Year vk;dj ds fy, izko/kku 19.55 29.15 Provision for Income Tax 19.55 29.15

6-8-2 Hkk0fj0cSa0 }kjk yxk;s x;s vFkZn.M dk izdVhdj.k% 'kwU; 6.8.2 Disclosure of Penalties imposed by RBI : NIL 7- ys[kk ekudksa ds vuqlkj izdVhdj.k ¼tgk¡ Hkk-fj-cSa- us fn’kk 7. Disclosure as per Accounting Standards (where RBI funsZ’k tkjh fd;s gSaA½ has issued guidelines) 7-1 ys-ek-&15 ¼la’kks-½ dks vaxhdkj djuk % 7.1 Adoption of AS-15(R): cSad us 1 vizSy] 2007 ls vkbZlh,vkbZ }kjk tkjh ys[kk ekud 15 ¼laaa½ & The Bank has adopted Accounting Standard 15 (R) - Employees st deZpkjh fgrykHk dks vaxhdkj fd;k gSA Benefits, issued by ICAI w.e.f. 1 April, 2007. 1. Pension 1- isa’ku Hkkjrh; thou chek fuxe] ctkt ,yk,Ul] ykbZQ bU’;ksjSUl da- The fund is managed by Life Insurance Corporation of India, fy-] vkbZ-lh-vkbZ-lh-vkbZ- iwzMSfU’k;y ykbZQ bU’;ksjSUl d-fy-] bf.M;k Bajaj Allianz Life Insurance Co. Ltd., ICICI Prudential Life Insurance Co. Ltd., India First Life Insurance Co. Ltd, SBI QLVZ ykbZQ bU’;ksjSUl d-fy-] ,l-ch-vkbZ- ykbZQ bU’;ksjSUl d-fy-] Life Insurance Co. Ltd., HDFC Standard Life Insurance ,p-Mh-,Q-lh- LVsUMMZ ykbQ bU';ksjsaUl dEiuh fy-] fjykbUl ykbZQ Company Limited, Reliance Life Insurance Company bU';ksjssaUl dEiuh fy- vkSj vkbZMhchvkbZ QSMjy ykbQ bU';ksjSal Limited and IDBI Federal Life Insurance Co. Ltd. The Bank dEiuh fyfeVsM bl fuf/k ds izcU/ku dk dk;Z djrs gSaA cSad isa’ku charges the annual contribution towards pension fund to its QaM dks okf"kZd ;ksxnku ykHk vkSj gkfu [kkrs ls nsrk gSA cSad viuh Profit & Loss Account. The Bank does not recognize the as- cgh esa vkfLr vkSj ns;rk dk vfHkKku ugha djrk gSA fuf/k dk izcèku set and liability in its books. The fund is managed by a sepa- ,d vyx ekU;rk izkIr U;kl }kjk fd;k tkrk gSA rate recognized Trust.

81 [kkrksa ij fVIif.k;k¡ Notes on Accounts

2- NqV~Vh udnhdj.k 2. Leave encashment bl fuf/k dk izcU/ku Hkkjrh; thou chek fuxe }kjk fd;k tkrk The fund is managed by LIC of India. The Bank charges gSA blds fy, cSad viuk ;ksxnku ykHk vkSj gkfu [kkrs ls nsrk gSA the annual contribution towards the fund to its Profit & vkfLr vkSj ns;rk dk fglkc Kkiu cgh esa j[kk x;k gSA Loss account. The asset and liability are maintained in Memorandum Books.

3. Gratuity 3- xzsP;qVh The fund is managed by SBI Life Insurance Co. Ltd., ,l-ch-vkbZ- ykbZQ bU’;ksjSUl da-fy-] ctkt ,yk,Ul] ykbZQ Bajaj Allianz Life Insurance Co. Ltd., ICICI Prudential Life bU’;ksjSUl da-fy-] vkbZ-lh-vkbZ-lh-vkbZ- izwMSfU’k;y ykbZQ bU’;ksjSUl Insurance Co. Ltd., India First Life Insurance Co. Ltd. da-fy-] bf.M;k QLVZ ykbZQ bU’;ksjSUl da-fy-] ,p-Mh-,Q-lh- LVsUMMZ HDFC Standard Life Insurance Company Ltd, Reliance Life ykbQ bU';ksjsUl dEiuh fyfeVsM] fjyk;Ul ykbZQ bU';ksjsUl Insurance Company Ltd., LIC of India and IDBI Federal Life d-fy-] ,y-vkbZ-lh- vkQ bf.M;k vkSj vkbZ-Mh-ch-vkbZ- QSMjy ykbZQ Insurance Co Ltd. The Bank charges the annual contribu- bU';ksjSal fyfeVsM }kjk xzsP;qVh fuf/k ds izcU/ku dk dk;Z fd;k tkrk tion towards Gratuity fund to its Profit & Loss Account. The gSA cSad xzasP;qVh fuf/k dks fn, tkus okys vius okf"kZd ;ksxnku dks Bank does not recognize the asset and liability in its books. ykHk vkSj gkfu [kkrs ls vnk djrk gSA cSad vkfLr vkSj ns;rk dks The fund is managed by a separate recognized Trust. viuh cfg;ksa esa fpfUgr ugha djrk gSA fuf/k ds izcU/ku dk dk;Z ,d vyx ekU;rk izkIr U;kl }kjk fd;k tkrk gSA 4- deZpkfj;ksa dks vU; fgr ykHk 4. Other Employees Benefits deZpkfj;ksa dks fn, tkus okys vU; fgr ykHk ds lEcU/k esa cSad us In respect of other employees benefit, the Bank has made a vodk'k ds nkSjku ;k=k ds fdjk;ksa esa fj;k;r ¼,y-,Q-lh-½ ds fy, provision of ` 1.25 crores on account of LFC & ` 1.91 crores #-1-25 djksM+ vkSj 31&03&2016 rd vuqxzg jkf'k ds Hkqxrku ds on account of Ex-gratia payment upto 31.03.2016.These provision have been made on the basis of valuation of obli- fy, #- 1-91 djksM+ dk izko/kku fd;k gSA ;g izko/kku ,Dpqjh;y gation carried out by actuarial firm. QeZ }kjk fd;s x;s vkdyu ds vkèkkj ij fd;k x;k gSA

5 ¼d½ ns;rk ds orZeku ewY; esa ifjorZu 5A. Changes in the present value of the obligation ¼:- djksM+ esa½ (` In crores) Leave isa’ku xzsP;wVh NqV~Vh udnhdj.k Pension Gratuity fooj.k Particulars Encashment (Funded) (Funded) ¼fuf/kd½ ¼fuf/kd½ ¼fuf/kd½ (Funded) 1 vizSy] 2015 dks 155.35 37.46 17.45 Present Value of 155.35 37.46 17.45 fuèkkZfjr fgr ykHk ds defined benefit st nkf;Ro dk orZeku ewY; obligation as at 1 April, 2015 C;kt ykxr 12.43 3.00 1.40 Interest Cost 12.43 3.00 1.40 pkyw lsok ykxr 4.14 1.56 0.97 Current service 4.14 1.56 0.97 cost iwoZ lsok ykxr Past Service Cost ?kVk,a% Less: vnk fd, x, fgr ykHk -21.03 -3.75 -2.48 Benefits Paid -21.03 -3.75 -2.48 ,Dpwfj;y gkfu@ ¼ykHk½ 34.10 0.79 3.70 Actuarial (loss)/ 34.10 0.79 3.70 gain 31 ekpZ] 2016 dks 184.99 39.05 21.04 Present value of 184.99 39.05 21.04 fuèkkZfjr fgrykHk ns;rk defined benefits dk orZeku ewY; obligations as at 31st March, 2016

82 [kkrksa ij fVIif.k;k¡ Notes on Accounts

5 ¼[k½ ;kstukc) vkfLr;ksa ds mfpr ewY; esa ifjorZu 5B. Changes in the fair value of Plan Assets ¼:- djksM+ esa½ (` In crores)

NqV~Vh Leave isa’ku xzsP;wVh Pension Gratuity fooj.k udnhdj.k Particulars Encashment ¼fuf/kd½ ¼fuf/kd½ (Funded) (Funded) ¼fuf/kd½ (Funded) 1 vizSy] 2015 dks ;kstukc) 116.71 37.68 17.35 Fair value of Plan Assets 116.71 37.68 17.35 vkfLr;ksa dk mfpr ewY; as at 1st April, 2015

;kstukc) vkfLr;ksa ls 10.91 3.01 1.58 Expected Return of Plan 10.91 3.01 1.58 visf{kr izkfIr] tSlk fd Assets as in the actuarial ,Dpwjh dh fjiksVZ esa fn;k report x;k gS Employer’s Contribution 18.60 4.55 4.59 18.60 4.55 4.59 fu;ksDrk dk ;ksxnku 2015-16 2015&16 Annuities Purchased for 59.85 59.85 lsokfuo`Ùk deZpkfj;ksa ds fy, retirees [kjhnh xbZ ,U;wVht ?kVk,a % - - - Less: - - - iznÙk fgr ykHk -21.03 -3.75 -2.48 Benefits Paid -21.03 -3.75 -2.48 ,Dpwfj;y gkfu@¼ykHk½ 0 0 0 Actuarial loss/(gain) 0 0 0 31 ekpZ] 2016 dks ;kstukc) 185.04 41.49 21.04 Fair value of Plan Assets 185.04 41.49 21.04 as at 31st March, 2016 vkfLr;ksa dk mfpr ewY;

5 ¼x½ 'kq) ,Dpwfj;y ?kkVk@¼ykHk½ 5C. Net Actuarial Loss / (Gain) ¼:- djksM+ esa½ (` In crores) Leave NqV~Vh Pension Gratuity isa’ku xzsP;wVh Particulars Encashment fooj.k udnhdj.k (Funded) (Funded) ¼fuf/kd½ ¼fuf/kd½ (Funded) ¼fuf/kd½ Actuarial Loss / (gain) on 34.10 0.79 3.70 nkf;Roksa ij ,Dpwfj;y gkfu@ 34.10 0.79 3.70 obligation (A) ¼ykHk½ ¼d½ Actuarial Loss / (gain) on 10.91 3.01 1.58 Plan Assets (B) ;kstukc) vkfLr;ksa ij 10.91 3.01 1.58 ,Dpwwfj;y ?kkVk@¼ykHk½ ¼[k½ Net Actuarial loss / (gain) 45.01 3.80 5.28 'kq) ,Dpwfj;y gkfu@¼ykHk½ 45.01 3.80 5.28 Actuarial Loss/(gain) 45.01 3.80 5.28 recognized in the period 45.01 3.80 5.28 fpfUgr ,Dpwfj;y gkfu@¼ykHk½ Unrecognized Actuarial 0.00 0.00 0.00 o"kZ ds vaUr esa fuf’pr u fd;k 0.00 0.00 0.00 loss/ (gain) at the end of the year. x;k ,Dpwfj;y gkfu@¼ykHk½

83 [kkrksa ij fVIif.k;k¡ Notes on Accounts

5¼?k½ ykHk vkSj gkfu [kkrs esa fn;s x;s O;; 5D. Expenses Recognized in Profit & Loss Account ¼:- djksM+ esa½ (` In crores)

NqV~Vh Leave isa’ku xzsP;wVh Pension Gratuity fooj.k udnhdj.k Particulars Encashment ¼fuf/kd½ ¼fuf/kd½ (Funded) (Funded) ¼fuf/kd½ (Funded)

pkyw lsok ykxr 4.14 1.56 0.97 Current Service Cost 4.14 1.56 0.97 C;kt ykxr 12.43 3.00 1.40 Interest Cost 12.43 3.00 1.40 ;kstukc) vkfLr;ksa ls visf{kr -10.91 -3.01 -1.58 Expected Return on Plan -10.91 -3.01 -1.58 izkfIr Assets iwoZ lsok ykxr & fufgr 0.00 0.00 0.00 Past Service Cost – 0.00 0.00 0.00 fgrykHk Vested Benefits iwoZ lsok ykxr & xSj&fufgr 0.00 0.00 0.00 Past Service Cost – Non- 0.00 0.00 0.00 fgrykHk Vested Benefits o"kZ ds nkSjku fuf’pr dh xbZ 0.00 0.00 0.00 Transitional liability 0.00 0.00 0.00 recognized during the laØe.k dkyhu ns;rk year. ?kVk,a % 0.00 0.00 0.00 Less: 0.00 0.00 0.00 'kq) ,Dpwfj;y ?kkVk@¼ykHk½ 45.01 3.80 5.28 Net Actuarial Loss/(gain) 45.01 3.80 5.28 okLro esa fuf’pr fd;k x;k 50.66 5.35 6.07 Net benefits expenses 50.66 5.35 6.07 'kq) fgrykHk O;; actually recognized

5¼³½ rqyu i= esa nh xbZ jkf’k 5.E Amount recognized in the Balance Sheet

NqV~Vh Leave isa’ku xzsP;wVh Pension Gratuity fooj.k udnhdj.k Particulars Encashment ¼fuf/kd½ ¼fuf/kd½ (Funded) (Funded) ¼fuf/kd½ (Funded) ns;rk dk orZeku ewY; 184.99 39.05 21.04 Present value of Obligation 184.99 39.05 21.04 ;kstukc) vkfLr;ksa dk mfpr ewY; 185.04 41.49 21.04 Fair Value of Plan Assets 185.04 41.49 21.04 fuf/kd fLFkfr -0.05 -2.44 0 Funded Status -0.05 -2.44 0

5¼p½ rqyu i= dh fnukad dks eq[; ,Dpwfj;y iwokZuqeku ¼Hkkfjr 5F. Principal Actuarial Assumptions at the Balance Sheet vkSlr ds :i esa iznf’kZr½ date (expressed as weighted average)

NqV~Vh Leave isa’ku xzsP;wVh Pension Gratuity fooj.k udnhdj.k Particulars Encashment ¼fuf/kd½ ¼fuf/kd½ (Funded) (Funded) ¼fuf/kd½ (Funded) fj;k;r nj 7.90 7.90 7.90 Discount rate 7.90 7.90 7.90 ;kstukc) vkfLr;ksa ij izkfIr 9.35 8.00 9.10 Expected rate of return on 9.35 8.00 9.10 dh visf{kr nj Plan Assets osru esa o`f) dh nj 5.00 5.00 5.00 Rate of escalation in salary 5.00 5.00 5.00 {kj.k nj 0 0 0 Attrition rate 0 0 0 viukbZ xbZ fof/k PUC PUC PUC Method Used PUC PUC PUC

84 [kkrksa ij fVIif.k;k¡ Notes on Accounts

7-2 [k.Mokj lwpuk ¼ys[kk ekud 17½ 7.2 Segment Reporting (Accounting Standard 17)

Hkkx ¼d½ % Part A:

O;kolkf;d [k.M ¼:0 djksM+ esa½ Business segments

¼:- djksM+ esa½@(Rs in crore) vU; cSafdax dEiuh@Fkksd cSafdax O;kolkf;d [k.M Vªstjh [kqnjk cSafdax ifjpkyu dqy ;ksx Corporate/ Business Segments Treasury Total Wholesale Banking Other Banking Operation fooj.k@Particulars 2015-16 2015-16 2015-16 2015-16 235.93 59.93 268.17 1.03 565.05 jktLo Revenue (245.52) (67) (243.39) (0.85) (556.76)

52.22 9.40 42.88 1.03 105.52 ifj.kke Result (64.98) (13.92) (52.54) (0.85) (132.29)

vkoaafVr u fd, x, Unallocated 38.99 [kpsZ expenses (35.96) 66.52 ifjpkyu ykHk Operating profit (96.33)

19.55 vk;dj Income taxes (29.15)

vlkekU; ykHk@gkfu Extraordinary profit/ 0 loss (0)

46.97 'kq) ykHk Net profit (67.18)

vU; lwpuk@Other Information

2982.36 587.88 2496.19 0 6066.44 [k.M vkfLr;k¡ Segment assets (3030.54) (732.30) (2196.74) (0) (5959.57)

vkoafVr u dh xbZ 17.95 Unallocated assets vkfLr;ka (18.36)

6084.39 dqy vkfLr;ka Total assets (5977.93)

2670.61 551.21 2340.32 0 5562.15 [k.M ns;rk,a Segment liabilities (2740.18) (686.61) (2059.64) (0) (5486.43)

vkoafVr u dh xbZa Unallocated 522.24 ns;rk,a liabilities (491.50)

6084.39 dqy ns;rk,a Total liabilities (5977.93)

Hkkx [k % Part B:

HkkSxksfyd [k.M % 'kwU; Geographic segments : NIL

85 [kkrksa ij fVIif.k;k¡ Notes on Accounts

7-3- lEcfU/kr i{kksa dk izdVhdj.k ¼ys[kk ekud 18½% 7.3 Related Party disclosures (Accounting Standard 18):

¼:- djksM+ esa½@(Rs in crore) ewy dEiuh ewy dEiuh lg;ksxh izeq[k izcU/kd izeq[k izcU/kd ¼LokfeRo ;k dh vuq'kafx;ka laLFkk dkfeZd lEcU/kh deZpkfj;ksa ds en@lEcfU/kr i{k fu;a=.k ds vuqlkj½ dqy la;qDr m|e Associates/ Key Relatives of Key Items/Related Party Parent Total Parent’s Joint Management Management (as per ownership Subsidiaries ventures Personnel Personnel or control) o"kZ dh lekfIr Borrowings 0.00 0.00 ------ij m/kkj At the year end (0.00) (0.00) 40.00 40.00 lokZf/kd jkf’k Maximum O/s ------(40.00) (40.00) tek Deposit ------tekvksa dk fooj.k Placement of deposits ------

pkyw [kkrk] Current A/c 14.93 14.93 ------o"kZ ds var esa At the year end (53.28) (53.28)

lkof/k tek jkf’k] Fixed Deposit 0.00 0.00 ------o"kZ ds var esa At year end (62.00) (62.00) 75.70 75.70 lokZf/kd jkf’k Maximum O/S ------(78.00) (78.00)

pkyw [kkrs esa Deposit received : 0.00 0.00 izkIr tek jkf’k Current A/c ------(0.00) (0.00) o"kZ ds var esa at the year end lkof/k [kkrs esa Fixed Deposit 0.00 0.00 izkIr tek jkf’k ------at the year end (0.00) (0.00) o"kZ ds var esa 0.00 0.00 lokZf/kd jkf’k Maximum. O/s ------(0.00) (0.00)

vfxze Advances ------

100.00 100.00 tkjh vkbZchihlh IBPC Issued ------(0.00) (0.00)

vkbZchihlh 100.00 100.00 IBPC Participated ------lk>snkjh (0.00) (0.00)

o"kZ ds var esa Investments ------0.00 fuos’k At year end

lokZf/kd jkf’k Maximum O/S ------0.00

o"kZ ds var esa xSSj Non-funded 16.04 16.04 fuf/kd izfrc) commitments ------(14.81) (14.81) rk,a At the year end

16.04 16.04 lokZf/kd jkf’k Maximum O/S ------(27.21) (27.21)

o"kZ ds var esa Non funded 1.60 1.60 tkjh xSSj fuf/kd Commitments issued ------(24.89) (24.89) izfrc)rk,a at the year end

86 [kkrksa ij fVIif.k;k¡ Notes on Accounts

ewy dEiuh ewy dEiuh lg;ksxh izeq[k izcU/kd izeq[k izcU/kd ¼LokfeRo ;k dh vuq'kafx;ka laLFkk dkfeZd lEcU/kh deZpkfj;ksa ds en@lEcfU/kr i{k fu;a=.k ds vuqlkj½ dqy la;qDr m|e Associates/ Key Relatives of Key Items/Related Party Parent Total Parent’s Joint Management Management (as per ownership Subsidiaries ventures Personnel Personnel or control)

26.49 26.49 lokZf/kd jkf’k Maximum O/S ------(24.89) (24.89)

mi;ksx dh xbZ iV~Vknk;h@ Leasing/HP ------fdjk;k [kjhn arrangements availed O;oLFkk

miyC/k djkbZ Leasing/HP xbZa iV~Vknk;h@ arrangements ------fd-[k- O;oLFkk provided

vpy lEifÙk;ksa Purchase of fixed ------dh [kjhn assets Purchase of E;wpqvy Q.M dh 119.00 119.00 Mutual Fund ------(48.00) (48.00) ;wfuVksa dh [kjhn Unit vpy laEifÙk;ksa Sale of fixed assets dh fcØh -- 119.00 119.00 Sale of Mutual ------(62.50) (62.50) E;wpqvy Q.M dh Fund Unit ;wfuVksa dh fcØh 0.02 0.02 iznÙk C;kt Interest paid (0.10) (0.10) 0.31 0.31 iznÙk deh’ku Commission paid (0.22) (0.22) 0.03 0.03 izkIr deh’ku Commission received (0.05) (0.05) ( 0.05) fMfoMsUM vk; Dividend income -- (Nil ) (Nil )

;wfuVksa dh fcØh Profit on sale Nil (Nil ) Nil ls ykHk Of Units

iznRr C;kt Interest Paid 0.08 0.08 ¼vkbZchihlh½ (IBPC) (0.00) (0.00) 2.80 2.80 izkIr C;kt Interest received ------(6.38) (6.38) izkIr C;kt Interest Received 0.13 0.13 ¼vkbZchihlh½ (IBPC) (0.00) (0.00) iznÙk lsok,a Rendering of services ------izkIr lsok,a Receiving of services ------0.40* 0.40* izcU/ku Management ------(0.23 )* (0.23)* uksV %& dks"Bd esa fn, x, vkadM+s foxr o"kZ ds vkadM+s gSaA Note:- Figures in brackets indicate previous year figures. 'ks"k jkf’k;ka iqf"Vdj.k ds vk/khu gSaA Balances are subject to confirmation. *eq-dk-v- vkSj ph-vkW-vkW-dks izcU/kdh; ikfjJfed *Managerial Remuneration to CEO &COO

87 [kkrksa ij fVIif.k;k¡ Notes on Accounts lEcfU/kr i{kksa ds uke o mudk cSad ls lEcU/k Names of the related parties and their relationship with the Bank

(i) ewy dEiuh Parent : cSad vkWQ cM+kSnk Bank of Baroda ¼izeq[k va’k èkkjd½ (Major Shareholder) (ii) izeq[k izcU/kd dkfeZd Key Management (I) Jh ,l-ds-xqIrk Shri S. K. Gupta Personnel ¼v/;{k ,oa eq[; dk;Zdkjh vfèkdkjh½ (Chairman & CEO) 14-01-2013 ls 15-03-2016 rd w.e.f 14.01.2013 to 15.03.2016 Jh eqds'k 'kekZ Shri Mukesh Sharma ¼v/;{k ,oa eq[; dk;Zdkjh vf/kdkjh½ (Chairman & CEO) 15-03-2016 ls w.e.f. 15.03.2016 (II) Jh ujs'k Hkkj}kt Shri Naresh Bhardwaj ¼phQ vkWijsfVax vkQhlj ,oa phQ (Chief Operating Officer & Chief Financial QkbuSfUl;y vkQhlj½ Officer) 31-07-2013 ls 09-02-2016 rd w.e.f. 31.07.2013 to 09.02.2016 Jh iznhi dqekj dkyk Shri Pradeep Kumar Kala ¼phQ vkWijsfVax vkQhlj ,oa phQ (Chief Operating Officer & Chief Financial QkbuSfUl;y vkQhlj½ 14-03-2016 ls Officer) w.e.f. 14.03.2016 (iii) ewy dEiuh dk vuq"kaxh Parent’s Subsidiary (I) ckWc dSfiVy ekdsZV~l fy- BOB Capital Markets Ltd. (II) ckWc dkM~Zl fy- BOB Cards Limited

7-4 vk; ij djksa ds fy, ys[kkdj.k 7.4 Accounting for Taxes on Income ¼ys[kk ekud 22½ (Accounting Standard 22) o"kZ ds var esa vkLFkfxr dj vkfLr@ns;rk dk fo’ysf"kr fooj.k The breakup of deferred tax asset/liability at the year fuEukuqlkj gS% end is as under:

¼:- djksM+ esa½@(Rs in crore) 31.03.2016 ldy vkLFkfxr dj vkfLr ldy vkLFkfxr dj ns;rk en@Item Total Deferred Tax Total Deferred Tax Assets Liability cgh ewY;gzkl ¼fcuk iquewZY;kadu vkjf{kfr Difference between WDV as per book 1.11 - ds½ vkSj vk;dj vf/kfu;e ds vUrxZr (Without Revaluation Reserve) and ewY;gzkl esa varj depreciation under Income Tax Act deZpkjh fgr ykHk ds fy, izko/kku Provision For Employee Benefits 1.09

[k.M 36(i)(viii) ds vUrxZr l`ftr vkjf{kr fuf/k Reserve created u/s 36(i)(viii) -- 6.51 tksM+ Total 2.20 6.51 31-03-2016 dks ldy vkLFkfxr dj ns;rk Total Deferred Tax Liability as 31.03.2016 -- 4.31 31-03-2016 dks lekIr gq, o"kZ ds fy, :0 4-23 djksM++ dh vkLFkfxr dj ns;rk ¼foxr o"kZ :- 0-08 djksM+ dh vkLFkfxr dj ns;rk½ dks ykHk vkSj gkfu [kkrs esa lfEefyr fd;k x;k A izcU/ku dh jk; esa vutZd vkfLr ds fy, izko/kku ds lEcU/k esa fdlh izdkj dk le;kUrj ugha gS blfy, mlds fy, dksbZ vkLFkfxr dj vkfLr ugha j[kh xbZ gSA

Net Addition of Deferred tax Liabilities of ` 4.23 Crore for the year-ended 31.03.2016 (Previous year DTL `0.08 crore) has been recognized in the Profit and Loss Account. In view of the management, there is no timing difference arising in connection with NPA provisions, hence no deferred tax assets have been recognized.

88 [kkrksa ij fVIif.k;k¡ Notes on Accounts

7-5 izfr 'ks;j vk;% 7.5 Earnings per share-

fooj.k@Particulars 31.03.2016 31.03.2015 izfr 'ks;j vk; Earnings per share

d½@a) ewy Basic 6.96 9.95 ruq** Diluted** 6.96 9.95 :-@` 46.97 djksM+@ :-@` 67.18 djksM+@ [k½@b) ¼dj ds ckn½ ykHk ds :i esa vkbZ jkf’k Amount used as numerator (Profit after tax) crore crore 'ks;jksa dk U;wure ewY; :-@` 10/- :-@` 10/- x½@c) Nominal value of shares 10@& izfr’ks;j@per share izfr’ks;j@per share

bfDoVh 'ks;jksa dh Hkkfjr vkSlr Weighted average number of equity shares used as ?k½@d) 67500000 67500000 la[;k ftlls Hkkx fn;k x;kA the denominator **cSad ds ikl o"kZ ds nkSjku ruq izfr 'ks;j vk; dh x.kuk ds fy, dksbZ lEHkkfor ruq bfDoVh 'ks;j ugha gS vkSj izfr 'ks;j ewy vk; ysek&20 ds vuqlkj] dj ds ckn vk;s 'kq) ykHk dks vkSlr Hkkfjr bfDoVh 'ks;jksa dh la[;k ls foHkkftr djds fudkyh xbZ gSA **The bank has no dilutive potential equity shares outstanding during the year for the purpose of computing diluted EPS and the basic earnings per share has been computed by dividing net profit after tax by the weighted average number of equity shares as perAS-20.

7-6 vkfLr;ksa dh {kfr ¼ys[kk ekud 28½ % 7.6 Impairment of Assets (Accounting Standard 28) cSad ds izcU/ku dh jk; eas vkfLr;ksa dh ,slh dksbZ {kfr ugha gqbZ gS ftl ij 31-03-16 dh fLFkfr ds vuqlkj fdlh Bksl lhek rd mijksDr ys[kk ekud iz;qDr gksrk gksA pkyw o"kZ ds nkSjku :0 5-00 yk[k dk iwoZor~ rnFkZ izkoèkku fd;k x;k gSA

In the opinion of the Bank’s Management, there is no impairment of the assets to which aforesaid Accounting Standard applies to any material extent as at 31.3.2016 An adhoc provision of ` 5.00 Lac has been continued during the current year.

7-7 lekfJr ns;rk vkSj izko/kkuksa dk fooj.k ¼ys0 ek0 29½ 7.7 Statement of contingent Liability & Provisions (Accounting Standard 29) ¼:- djksM+ esa½@(Rs in crore)

en@Item ys[kk ekud&29 ds vuqlkj izko/kku@Provision As per AS – 29 og jkf’k ftlds o"kZ ds o"kZ ds o"kZ ds nkSjku mi;ksx u dh xbZ o"kZ dh Hkfo'; dh fVIi.kh fy;s cSad lekfJr vkjEHk esa nkSjku mi;ksx dh jkf'k ftls o"kZ lekfIr ij xfrfof/k;ksa ds Remarks :i ls nsunkj gS fd;k x;k ifjo/kZu x;h jkf'k ds nkSjku okil dqy izko/kku lEcU/k esa cM+h Amt. for which izko/kku Addition Amount fd;k x;kA Provision voèkkj.kk,a the Bank is Provision during used Unused amount as at the Major contingently as at the the year during the reversed during close of assumption Liable beginning year the year the year regarding of the Year future events cSad ds fo:) nkos Claims against 0.80 0.20 0.00 0.00 0.03 0.17 * - ftUgsa _.k ugha the Bank not (0.93) (0.31) ( 0.00) (0.00) (0.11) (0.20) le>k x;kA acknowledged as debt la?kVdksa dh vksj Guarantees 28.64 N.A. N.A. N.A. N.A. N.A. * - ls tkjh dh xbZ issued on behalf (70.85) (N.A.) (N.A.) (N.A.) (N.A.) (N.A.) xkjfUV;ka of constituents LohÑfr;ka] cspku vkSj Acceptance 2.29 N.A. N.A. N.A. N.A. N.A. * - vU; nkf;Ro Endorsements (6.00) (N.A.) (N.A.) (N.A.) (N.A.) (N.A.) and other obligations vU; en ftuds fy;s Other items, for 0.11 0.11 0.00 0.00 0.00 0.11 * - cSad lekfJr :i ls which the Bank is (6.85) (0.12) (0.00) (0.00) (0.01) (0.11) mÙkjnk;h gSA contingently liable *,slh ns;rk,a U;k;ky;@e/;LFk@U;k;ky; ls ckgj le>kSrs] eqdneksa ds fuLrkj.k] ekaxh tk jgh jkf’k] lafonk dh 'krksaZ] lEcfUèkr i{kksa }kjk ekax o mlds fodkl ds ifj.kke ij fuHkZj gSaA *Such liabilities are dependent upon the outcome of court/arbitration/out of court settlement, disposal of appeals, the amount being called up, terms of contractual obligations, development and raising of demand by concerned parties respectively.

89 [kkrksa ij fVIif.k;k¡ Notes on Accounts

8- Hkk-fj-cSa- ds fn’kk funsZ’kksa ds vuqlkj cSad ds fuos’k lafoHkkx dks rhu 8. In accordance with RBI guidelines, the Bank’s Investment Jsf.k;ksa esa oxhZÑr fd;k x;k gSA 31-03-16 dh fLFkfr ds vuqlkj portfolio has been classified into three categories. The posi- fuos’kksa dh fLFkfr fuEukuqlkj gS %& tion of holding as on 31.03.2016 is as follows: fuos’kksa dk izfr’kr (% holding) Ø-la- fooj.k 31.03.2016 31.03.2015 S No Particulars 31.03.2016 31.03.2015 1 ifjiDork vof/k rd j[ks x;s 64.54% 52.81% 1 Held to Maturity 64.54% 52.81% 2 fcØh ds fy;s miyC/k 35.46% 45.21% 2 Available for sale 35.46% 45.21% 3 O;kikj ds fy;s j[ks x;s 0.00% 1.98% 3 Held for trading 0.00% 1.98%

9- ykHk&gkfu [kkrs ds ÞO;;ß 'kh"kZ ds vUrxZr Þizko/kku vkSj vkdfLe- 9. Break-up of the items “Provisions and Contingencies” in- drkvksaß esa fuEufyf[kr lfEefyr gS% cluded under the head Expenditure in the Profit & Loss Account: ¼:0 djksM+ esa½ (` in crore)

Ø-la- fooj.k 2015-16 2014-15 Sr.No. 2015-16 2014-15 1. vk;dj ds fy, izko/kku ¼pkyw dj½ 19.55 29.15 1. Provision for Income Tax (Current Tax) 19.55 29.15 Provision for Income Tax 2. 4.23 -1.03 2. vk;dj ds fy, izko/kku ¼vkLFkfxr dj½ 4.23 -1.03 (Deferred Tax) Provision for depreciation in 3. 0.00 0.00 3. fuos’kkas esa ewY; gzkl ds fy, izko/kku 0.00 0.00 investment

4. fu;ked ,u-ih-,- ds fy, izko/kku 11.82 10.67 4. Provision towards NPA Regulatory 11.82 10.67 5. ekud vfxzeksa ds fy, izko/kku 2.65 0.15 5. Provision for standard Advances 2.65 0.15 6. iquxZfBr vfxzeksa ds fy, izko/kku -0.63 2.04 6. Provision for Restructured Advances -0.63 2.04 vU; izko/kku Other provision ( Claim against bank 7. -0.03 0.00 7. -0.03 0.00 ¼cSad jkbVcSd ds fo#) nkok½ write back) 8. 37.59 40.98 8. 37.59 40.98

?kVk,¡ %& izfrysf[kr fuos’kksa ij Less: Excess Provision /Depreciation 9. -1.08 2.64 9. -1.08 2.64 vfrfjDr izko/kku@ewY;gzkl on Investment written back 10. izfrysf[kr fd, x;s vU; izko/kku 0.00 0.11 10. Other Provisions written back 0.00 0.11 tksM+ 36.51 38.23 Total 36.51 38.23 10- f’kdk;rksa dh fLFkfr n’kkZus okyh fooj.kh 10. Statement showing the position of Complaints 10-1 xzkgdksa ls f’kdk;rsa % 10.1 Customer Complaints Øa-la- *2015-16 **2014-15 Sr. No. *2015-16 **2014-15 d½ o"kZ ds vkjEHk esa yafEcr f’kdk;rksa 12 01 a) No. of complaints pending at the 12 01 dh la[;k beginning of the year [k½ o"kZ ds nkSjku izkIr f’kdk;rksa dh 672 1367 b) No. of complaints received dur- 672 1367 la[;k ing the year x½ o"kZ ds nkSjku nwj dh xbZ f’kdk;rksa 681 1356 c) No of complaints redressed dur- 681 1356 dh la[;k ing the year ?k½ o"kZ dh lekfIr ij yfEcr f’kdk;rksa 3 12 d) No. of complaints pending at end 3 12 dh la[;k of the year *;g Li"V fd;k tkrk gS fd o"kZ ds nkSjku izkIr f'kdk;rksa esa ls 659 f'kdk;rsa ,-Vh-,e- ls *It is clarified that out of the complaints received during the year, 659 complaints vlQy ysu&nsu@mUgsa okil djus ds ekeyksa ls lEcfU/kr FkhA iqu% ,slh 659 f'kdk;rksa pertained to ATM failed transactions/ charged back cases. Further Out of 659 such esa ls 658 f'kdk;rsa fu/kkZfjr le; lhek ds vUrxZr lkSgknZziw.kZ k yh xbZ vkSj dsoy 1 f'kdk;r ,slh Fkh tks ekpZ] 2016 ds nkSjku izkIr gqbZ the stipulated time frame and only 1 complaint which was received during the rFkk tks ,uihlhvkbZ ¼/kks[kk/kM+h ns;rk fu/kkZj.k lfefr½ ns;rk ds gVkus dh izfdz;k esa FkhA month end March 2016, is in process of resolution through NPCI ( Fraud Liability Assessment Committee) for shifting of liability. **;g Li"V fd;k tkrk gS fd o"kZ ds nkSjku izkIr f'kdk;rksa esa ls 1357 f'kdk;rsa ,-Vh- **It is clarified that out of the complaints received during the year, 1357 complaints ,e- ls vlQy ysu&nsu@mUgsa okil djus ds ekeyksa ls lEcfU/kr FkhA iqu% ,slh 1357 pertained to ATM failed transactions/ charged back cases. Further Out of 1357 f'kdk;rksa esa ls 1347 f'kdk;rsa fu/kkZfjr le; lhek ds vUrxZr lkSgknZziw.kZ k yh xbZ vkSj dsoy 10 f'kdk;rsa ,slh Fkh tks ekpZ] 2015 ds nkSjku within the stipulated time frame and only 10 complaints which were received dur- izkIr gqbZ rFkk tks lqy>us dh izfdz;k esa FkhA ing the month end March 2015, were in process of resolution.

90 [kkrksa ij fVIif.k;k¡ Notes on Accounts

10-2 cSafdax yksdiky }kjk fn, x, vf/kfu.kZ; % 10.2 Awards Passed by the Banking OMBUDSMAN

Øa-la- 2015-16 2014-15 Sr.No. 2015-16 2014-15 d½ o"kZ ds vkjEHk esa dk;kZfUor u fd, 'kwU; 'kwU; a) No. of unimplemented Awards NIL Nil x, vfËkfu.kZ;ksa dh la[;k at the beginning of the year [k½ o"kZ ds nkSjku cSafdax yksdiky } 'kwU; 'kwU; b) No. of Awards passed by the NIL Nil Banking Ombudsmen during kjk fn, x, vfËkfu.kZ;ksa dh la[;k the year x½ o"kZ ds nkSjku dk;kZfUor fd, x, 'kwU; 'kwU; c) No of Awards implemented NIL Nil vfËkfu.kZ;ksa dh la[;k during the year ?k½ o"kZ dh lekfIr ij dk;kZfUor u 'kwU; 'kwU; d) No. of unimplemented Awards NIL Nil fd, x, vfËkfu.kZ;ksa dh la[;k at the end of the year 10-3 cSadksa }kjk tkjh ySVj vkWQ dEQVZ ¼,y-vks-lh-½ dk 10.3 Disclosure of letter of comfort (LOC) issued by izdVhdj.k Banks:

cSad }kjk tkjh ysVj vkWQ dEQVZ ¼,yvkslh½ 2015-16 2014-15 Disclosure of letter of comfort (LOC) is- 2015-16 2014-15 ds vUrxZr izdVhdj.k 'kwU; 'kwU; sued by Banks: NIL Nil

11- vuq0 tk0@vuq0 tu0 dks _.k 11. Advances to SC/STs ¼:- djksM+ esa½ (Rs in crore) Øa-la- 2015-16 2014-15 Sr. No. 2015-16 2014-15 1 o"kZ dh lekfIr ij vuq-tk-@vuq- 42.45 47.07 1 Outstanding credit to SC/ 42.45 47.07 tu- dks fn, x, _.k dk 'ks"k STs as on 31.03.2016 2 21.89 23.86 o"kZ ds nkSjku vuq0 tk0@vuq0 2 Recovery from SC/STs bor- 21.89 23.86 tu0 ds m/kkjdÙkkZvksaa ls _.k dh rowers during the year olwyh

12- cSad us tksf[ke forj.k vk/kkj ij vUrj cSad lgHkkfxrk ds vUrxZr 12. The bank floated Inter Bank Participation Certificate ` #-100 djksM+ izkFkfedrk izkIr {ks= ds vUrxZr viuh vUrfuZfgr (IBPC) on risk sharing basis for 100.00 Crores against its underlying assets representing Priority Sector Advances, ifjlEifRr;ksa ds fo#) tkjh fd;k tksfd cSad vkWQ cM+kSnk }kjk which was subscribed to by Bank of Baroda. On the other lCldzkbZc fd;k x;kA nwljh vksj cSad us cSad vkWQ cM+kSnk }kjk vius hand the bank also participated in Inter Bank Participation xSj izkFkfedrk izkIr {ks= dh vUrfuZfgr ifjlEifRr;ksa ds fo#) tkjh Certificate floated by Bank of Baroda against the underlying vUrj cSad ikfVZflis'ku esa lgHkkfxrk dhA assets representing their Non Priority Sector Advances. tgk¡ vko’;d le>k x;k gS foxr o"kZ ds vkadM+ksa dks pkyw o"kZ ds Figures for the previous year have been regrouped/ recasted vkadM+ksa ls rqyu ;ksX; cukus ds fy, iqulZewghd`r@iquO;ZofLFkr wherever considered necessary to make them comparable with current year figures. fd;k x;k gSA

91 [kkrksa ij fVIif.k;k¡ Notes on Accounts

vfrfjDr izdVhdj.k Additional Disclosures

I) 31-03-2016 dks vutZd vkfLr;ksa* dk ladsUnz.k I) Concentration of NPAs* as on 31.03.2016 ¼:- djksM+ esa½ (` in Crore)

pkj 'kh"kZLFk vutZd [kkrksa 2015-16 2014-15 Total Exposure to top four NPA 2015-16 2014-15 accounts esa dqy ,Dlikstj 30.00 26.19 30.00 26.19

II) {ks=okj vutZd vkfLr;ka* II) Sector-wise NPAs* ¼:- djksM+ esa½ (` in Crore) lacaf/kr {ks= ds dqy vfxzeksa esa vutZd Percentage of NPAs to total Advances in that sector Ø- vkfLr;ksa dk izfr’kr ¼izkFkfedrk Sl. {ks= Sector (including both Priority & Non la- izkIr ,oa xSj izkFkfedrk 'kkfey½ No. Priority) 2015-16 2014-15 2015-16 2014-15 d`f"k vkSj lac) Agriculture & Allied 1 6.52 2.46 1 6.52 2.46 xfrfofèk;ka Activities m|ksx ¼ekbZØks vkSj y?kq] Industry (Micro & Small, 2 6.25 6.01 2 6.25 6.01 e>kSys vkSj cM+s½ Medium and Large) 3 lsok,a 3.82 1.76 3 Services 3.82 1.76 4 oS;fDrd _.k 2.63 1.65 4 Personal Loans 2.63 1.65

III) vutZd vkfLr;ksa esa mrkj&p<+ko* III) Movement of NPAs*

C;kSjs 2015-16 2014-15 Particulars 2015-16 2014-15

foxr o"kZ fo’ks"k ds 1 vizSy dks ldy Gross NPA* as on 1st April of previous 77.41 61.10 77.41 61.10 vutZd vkfLr;ka* ¼vkjafHkd 'ks"k½ year (Opening Balance)

o"kZ ds nkSjku o`f) ¼u;h vutZd vkfLr;ka½ 57.54 26.30 Additions (Fresh NPAs) during the year 57.54 26.30

mi&tksM+ ¼d½ 134.95 87.40 Sub - Total (A) 134.95 87.40

?kVk,a %& Less :- 2.94 1.26 (i) Js.kh mUu;u (i) Upgradations 2.94 1.26 (ii) olwyh ¼ftu [kkrksa dk Js.kh mUu;u (ii) Recoveries (excluding recoveries 12.55 8.40 12.55 8.40 gqvk gS muls olwyh dks NksM+dj½ made from upgraded accounts

(iii) cÍs [kkrs Mkys x;s 0.09 0.33 (iii) Write – offs 0.09 0.33

mi&tksM+ ¼[k½ 15.58 9.99 Sub - Total (B) 15.58 9.99 pkyw o"kZ ds 31 ekpZ dks ldy vutZd 119.37 77.41 Gross NPA* as on 31st March of current 119.37 77.41 vkfLr;ka* ¼bfr 'ks"k½ ¼d&[k½ year (closing balance) (A-B)

*Hkk-fj-cSa- ds ifji=] fnukad 24-09-2010 dh vis{kkvksa ds vuqlkj ldy xS-fu-vk- *Gross NPAs are net of balance in interest suspense account as per RBI ¼,u-ih-,-½ esa mpar C;kt [kkrs ds 'ks"k dh jkf’k lfEefyr ugha gSA requirements vide circular dated 24.09.2010.

IV) vfxzeksa dk ladsUnz.k IV) Concentration of Advances ¼jkf'k :- djksM+ esa½ (` in Crores)

C;kSjs 2015-16 2014-15 Particulars 2015-16 2014-15 chl lcls cM+s m/kkjdrkZvksa dks nh xbZ dqy Total Advances to twenty largest 489.87 435.20 489.87 435.20 _.kjkf'k borrowers Percentage of advances to twenty cSad ds dqy vfxzeksa esa chl lcls cM+s 17.89% 16.76% largest borrowers to Total Advances of 17.89% 16.76% mèkkjdrkZvksa ds vfxzeksa dk izfr'kr the bank

92 [kkrksa ij fVIif.k;k¡ Notes on Accounts lsDVj okj vfxze Sector wise advances

Pkkyw o"kZ@Current Year foxr o"kZ@Previous Year

Ckdk;k dqy Lkdy xS- l-xS-fu-vk- Ckdk;k dqy Lkdy xS- l-xS-fu-vk- dz- vfxze@ fu-vk-@ dk lsDVj ds vfxze@ fu-vk-@ dk lsDVj ds Outstanding Outstanding la- Gross dqy vfxze Gross dqy vfxze lsDVj@Sector Total Total Sr. NPA ls izfr'kr@ NPAs ls izfr'kr@ No. Advance Percentage of Advance Percentage of ¼:- djksM+ esa½ gross NPA to ¼:- djksM+ esa½ Gross NPA to Total Advance Total Advance in ` ` in Crore in that sector in Crore that sector d@A izkFkfedrk izkIr {ks= Priority Sector 1451.83 83.08 5.72 1497.58 54.3 3.62 1 Ñf"k ,ao lgk;d Agriculture and 510.57 33.65 6.59 439.22 21.16 4.82 dk;Zdyki allied activities 2 izk-izk-{ks- esa ik= Advances to 239.04 19.29 8.06 354.39 7.12 2.01 m|ksxksa dks vfxze industries sector eligible as priority sector lending 3 lsok,a Services 466.88 24.09 5.16 441.94 19.95 4.51 4 oS;fDrd _.k Personal Loan 235.34 6.05 2.57 262.03 6.07 2.32 mi&tksM+ ¼v½+ Sub Total (A) 1451.83 83.08 1497.58 54.30

[k@B xSj izkFkfedrk izkIr Non Priority 1286.79 37.96 2.95 1099.32 24.24 2.20 {ks= Sector

tksM+@ TOTAL 2738.62 121.04 4.42 2596.90 78.54 3.02

93 [kkrksa ij fVIif.k;k¡ Notes on Accounts

,usDlj&1 Annex - 1

Hkkx&v Part A

Lkdy vfxze] ldy xS-fu-vk-] 'kq) vfxze ,oa 'kq) xS-fu-vk- Details of Gross Advances, Gross NPAs, Net Advances dk 31&03&2016 dks fooj.kA and Net NPAs on 31.03.2016

¼jkf'k #i;s djskM+ esa½@(` in crore)

Ø- la- fooj.k@Particulars 31.03.2016 31.03.2015 Sr. No.

1. Ekkud vfxze Standard Advances 2617.58 2518.36

2. Lkdy xSj fu"iknd vkfLr;ka Gross NPAs 121.04 78.54

3. Lkdy vfxze ¼1 $ 2½ Gross Advances (1+2 ) 2738.62 2596.90

4. Lkdy xSj fu"Ikknd vkfLr;ksa dk ldy vfxzeksa ls izfr'kr Gross NPAs as a percentage of Gross 4.42% 3.02 % ¼2@3½ ¼izfr'kr esa½ Advances (2/3) (in %)

5. dVkSfr;ka Deductions

(i) xS-fu-vk- [kkrs ds lUnHkZ esa vkfLr oxhZdj.k ds Provisions held in the case of NPA Accounts 48.37 36.64 vuqlkj fd;k x;k izko/kku ¼xS-fu-vk- ds lUnHkZ esa as per asset classification (including fu/kkZfjr izko/kku ls vf/kd vfrfjDr izko/kku dks additional Provisions for NPAs at higher lfEefyr djrs gq,½ than prescribed rates).

(ii) MhvkbZlhthlh@bZlhthlh Dyse tks izkIr gq, vkSj DICGC / ECGC claims received and held - - lek;kstu gsrq vfu"ikfnr pending adjustment

(iii) va'k Hkqxrku izkIr ,oa mpar [kkrs ;k ,sls fdlh leku Part payment received and kept in Suspense 4.17 3.42 [kkrs esa j[kk x;k Account or any other similar account

(iv) fofo/k [kkrs esa vo'ks"k ¼C;kt iwathdj.k&iquZxfBr Balance in Sundries Account (Interest - - [kkrs½ xS-fu-vk- [kkrksa ds lUnHkZ esa Capitalization - Restructured Accounts), in respect of NPA Accounts

(v) Pky izko/kku Floating Provisions 40.77 40.77

(vi) xS-fu-vk- esa oxhZd`r iquZxfBr [kkrksa ds mfpr ewY; esa Provisions in lieu of diminution in the fair - - deh ds fo#) izko/kku value of restructured accounts classified as NPAs (vii) Ekkud vkfLr;ksa esa oxhZd`r iquZxfBr [kkrksa ds mfpr Provisions in lieu of diminution in the fair 0.69 0.82 ewY; esa deh ds fo#) izko/kku value of restructured accounts classified as standard assets

6. 'kq) vfxze ¼3&5½ Net Advances (3-5) 2644.62 2515.25

7. 'kq) xSj fu"iknd vkfLr;ka Net NPAs 27.73 0.00 {2-5(i + ii + iii + iv + v + vi)} {2-5 (i + ii + iii + iv + v + vi)} 8. 'kq) xS-fu-vk- dk 'kq) vfxze ls izfr'kr ¼7@6½ ¼izfr'kr½ Net NPAs as percentage of Net Advances 1.05 % 0% (7/6) (in %)

94 [kkrksa ij fVIif.k;k¡ Notes on Accounts

V. ,Dlikstj dk ladsUnz.k V. Concentration of Exposures ¼:- djksM+ esa½ (` in Crore)

2015-16 2014-15 2015-16 2014-15

chl lcls cM+s m/kkjdrkZvksa@xzkgdksa ds izfr Total Exposures to twenty largest 534.11 534.49 534.11 534.49 dqy ,Dlikstj borrowers/ customers m/kkjdrkZvksa@xzkgdksa dks cSad ds dqy ,Dlikstj Percentage of Exposures to twenty largest esa chl lcls cM+ss m/kkjdrkZvksa@xzkgdksa dks fn;s 19.50% 20.58% borrowers / customers to Total Exposure of 19.50% 20.58% x;s ,Dlikstj dk izfr’kr the bank on borrowers / customers

VI. tekjkf’k dk ladsUnz.k VI. Concentration of Deposits ¼:- djksM+ esa½ (` in Crore) 2015-16 2014-15 2015-16 2014-15 Total Deposits from twenty largest chl lcls cM+s tekdrkZvksa dh dqy tekjkf’k 877.07 1076.64 877.07 1076.64 Depositors cSad dh dqy tekjkf’k;ksa esa chl lcls cM+s Percentage of Deposits from twenty largest 16.52% 20.14% 16.52% 20.14% tekdrkZvksa dh tekjkf’k;ksa dk izfr’kr customers to Total deposits of the bank

VII. cSadk’;ksjSUl O;olk; VII. Bancassurance Business cSad dks foÙkh; o"kZ 2015&16 ds nkSjku cSadk’;ksjSUl O;olk; ls fuEukuqlkj The total income of the bank in respect of bank assurance busi- :- 67-41 yk[k dh dqy vk; gqbZ % ness was ` 67.41 Lac during the financial year 2015-16, with details as under: ¼:- yk[k esa½ (` in Lac) Amount Ø- jkf’k Sr. b’;ksjSUl dEiuh Insurance Company la- 2015-16 2014-15 No. 2015-16 2014-15 1 ,DlkbZM ykbQ bU’;ksjSUl dEiuh fy- 36.47 38.34 1 Exide Life Insurance Company Ltd. 36.47 38.34 2 us’kuy bU’;ksjSUl dEiuh fy- 27.48 36.48 2 National Insurance Company Ltd 27.48 36.48 3 bafM;k QLVZ ykbQ bU’;ksjSaUl da- fy- 0.00 6.30 3 India First Life Insurance Co. Ltd 0.00 6.30 4 Hkkjrh; thou chek fuxe fy0 3.46 0.00 4 Life Insurance Corpn of India 3.46 0.00 tksM+ 67.41 81.12 Total 67.41 81.12 cSad dks foÙkh; o"kZ 2015&16 ds nkSjku vU; mRiknksa ls fuEukuqlkj :- The total income of the bank in respect of other products was 6-63 yk[k dh vk; gqbZ % `6.63 Lac during the financial year 2015-16, with details as un- der. ¼:- yk[k esa½ (` in Lac) Sr. Amount Ø- jkf’k Company dEiuh No. la- 2015-16 2014-15 2015-16 2014-15 1 Weizmann Forex Ltd. 1.05 1.56 1 foteSau aQksjsDl fy- 1.05 1.56 2 UTIITSL 0.01 0.01 2 ;w-Vh-vkbZ-vkbZ-Vh-,l-,y- 0.01 0.01 3 LVkWd gksfYMax dkjiksjs'ku vkQ bf.M;k fy- 5.57 4.29 3 Stock Holding Corporation of India Ltd. 5.57 4.29 tksM+ 6.63 5.86 Total 6.63 5.86

VIII. MhbZ,,Q ¼tekdrkZ dks f'kf{kr ,oa tkx#d djus ds fy, fufèk½% VIII. DEAF (Depositor Education and Awareness Fund) ¼:- djksM+ esa½ (` in Crore) 2015-16 2014-15 2015-16 2014-15 Mh bZ , ,Q dks varfjr izkjfEHkd tek jkf'k 'kwU; 6.74 - Opening balance of amounts transferred to DEAF 6.74 - tksM+sa% o"kZ ds nkSjku Mh bZ , ,Q dks varfjr jkf'k 1.68 6.74 Add:Amounts Transferred to DEAF during the year 1.68 6.74 ?kVk,a% nkoksa ds fy, Mh bZ , ,Q }kjk izfriwfjr jkf'k 0.11 - Less:Amounts reimbursed by DEAF towards claims 0.11 - Mh bZ , ,Q dks varfjr jkf'k dk bfr'ks"k 8.31 6.74 Closing balance of amounts transferred to DEAF 8.31 6.74

95 [kkrksa ij fVIif.k;k¡ Notes on Accounts

IX. Pkyfuf/k O;kfIr vuqikr% IX. Liquidity Coverage Ratio

¼jkf'k djskM+ esa½@(Amount in crore)

Pkkyw o"kZ@Current year foxr o"kZ@Previous Year Ø- Lkdy xSj Lkdy* Lkdy xSj Lkdy* la- Hkkfjr* ewY; Hkkfjr ewY; Hkkfjr* ewY; Hkkfjr ewY; Sr. ¼vkSlr½@Total ¼vkSlr½@Total ¼vkSlr½@Total ¼vkSlr½@Total No. Unweighted* Weighted* Unweighted Weighted Value Value Value Value (average) (average) (average) (average) mPp xq.koÙkk dh rjy vkfLr@High Quality Liquid Assets mPp xq.koÙkk dh ldy vkfLr Total High Quality Liquid Assets 1 327.72 208.32 ¼,pD;w,y,½ (HQLA) Ukdnh dk ckg~; izokg@Cash Outflows QqVdj tek vkSj NksVs O;kikjh Retail deposits and deposits from 2 2821.38 211.41 2660.84 198.59 xzkgdksa }kjk tek ftlesa ls small business customers, of which: (i) i) fLFkj tek Stable deposits 1414.56 70.73 1349.92 67.50 (ii) ii) de fLFkj tek Less stable deposits 1406.82 140.68 1310.92 131.09 Unsecured wholesale funding, 3 vlqjf{kr Fkksd fu/kh;u] ftlesa ls 313.62 56.99 214.86 10.74 of which: i) ifjpkyuxr tek¼lHkh Operational deposits (all (i) - - - - izfri{kh½ counterparties) ii) xSj ifjpkyuxr tek Non-operational deposits (all (ii) 313.62 56.99 214.86 10.74 ¼leLr izfri{kh½ counterparties) (iii) iii) vlqjf{kr _.k Unsecured debt - - - - 4 lqjf{kr Fkksd fu/kh;u Secured wholesale funding - - - - 5 vfrfjDr vko';drk] ftlesa ls Additional requirements, of which 513.25 28.97 147.54 7.38 i) xkS.k _.k vkSj vU; Outflows related to derivative (i) laikf'Zod vko';drkvksa ls exposures and other collateral - - - - lEcfUèkr cfgxZeu requirements ii) _.k mRiknksa ij foRrh;u Outflows related to loss of funding (ii) - - - - dh gkafu ls lEcfU/kr cfgxZeu on debt products iii) _.k vkSj rjyfuf/k (iii) Credit and liquidity facilities 513.25 28.97 147.54 7.38 lqfo/kk,a 6 vU; lafonkxr foRrh;u ck/;rk Other contractual funding obligations 89.23 89.23 38.13 38.13 7 vU; vkdfLed foRrh;u ck/;rk Other contingent funding obligations 31.16 1.41 10.67 0.53 8 Lkdy udn cfgxZeu Total Cash Outflows 3768.64 388.01 3072.04 255.37 Ukdnh vkxeu@Cash Inflows lqjf{kr m/kkj Secured lending 9 - - - - ¼mnkgj.k ds fy, fjolZ fjiks½ (e.g. reverse repos) iwjh rjg fu"iknd _.kksa ls Inflows from fully performing 10 554.25 351.88 399.08 199.54 vkxeu exposures 11 vU; udn vkxeu Other cash inflows 318.15 262.82 696.08 340.64 12 Lkdy udn vkxeu Total Cash Inflows 872.40 614.70 1095.16 540.18 mPp xq.koRrk dh ldy vkfLr 13 TOTAL HQLA 327.72 208.32 ¼,pD;w,y,½ 14 Lkdy 'kq) udn cfgxZeu Total Net Cash Outflows 97.00 63.84 15 Pkyfuf/k O;kfIr vuqikr ¼%½ Liquidity Coverage Ratio (%) 337.85% 326.30%

*vkSlr Hkkfjr vkSj xSj Hkkfjr jkf'k;ksa dh x.kuk twu 2015] flrEcj] 2015] fnlEcj] 2015 o ekpZ] 2016 ds muds =Sekfld vkSlr ds lkekU; vkSlr ds vk/kkj ij dh xbZ gSA * The average weighted and unweighted amounts are calculated taking their simple average for the quarterly average of June 2015, September 2015, December 2015 and March2016.

96 [kkrksa ij fVIif.k;k¡ Notes on Accounts xq.kkRed Qualitative cSafdax Ik;Zos{k.k ds fy, csly lfefr ¼chlhch,l½ us pyfuf/k O;kfIr The Basel Committee for Banking Supervision (BCBS) had vuqikr ¼,ylhvkj½ bl mn~ns'; ls izLrkfor dh gS fd ;g lqfuf'pr proposed the liquidity coverage ratio (LCR) in order to ensure fd;k tk lds fd cSad ds ikl Ik;kZIr Lrj ij fcuk Hkkj xzLr mPp that a bank has an adequate stock of unencumbered high xq.koRrk dh rjy vkfLr gS ftls rjy fuf/k ds Ik;Zos{kdksa }kjk fufnZ"V quality liquid assets (HQLA) to survive a significant liquidity mYys[kuh; #i ls rhcz ncko dh fLFkfr esa viuh rjyfuf/k dh vko';drk stress lasting for a period of 30 days. LCR is defined as a ratio dh iwfrZ ds fy, 30 fnuksa dh vof/k esa udnh esa cnyk tk ldrk gSA of HQLA to the total net cash outflows estimated for the next Hkkjrh; fjtoZ cSad ds fn'kk funsZ'kksa ds vuqlkj cSadksa }kjk 1 tuojh] 2015 30 calendar days. As per the RBI guidelines the minimum LCR ls j[kk tkus okyk U;wure okafNr pyfuf/k O;kfIr vuqikr ¼,ylhvkj½ required to be maintained by banks shall be implemented in the fuEukuqlkj pj.kc) rjhds ls ykxw fd;k tk;sxkA phased manner from January 1, 2015 as given below.

Tkuojh 1 ls Starting from 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 izkjEHk January 1 U;wure ,ylhvkj 60% 70% 80% 90% 100% Minimum LCR 60% 70% 80% 90% 100% pyfuf/k O;kfIr vuqikr ¼,y lh vkj½ ds nks ?kVd gSa% The LCR has two components: d½ mPp Lrj dh pyfuf/k vkfLr ¼,p D;w ,y ,½ ds LVkd ds ewY; dk (a) The value of the stock of high-quality liquid assets (HQLA) ncko dh fLFkfr esa gksukA in stressed conditions. [k½ ldy 'kq) udnh cfgxZeu% Þldy 'kq) udnh cfgxZeuß 'kCnka'k (b) Total net cash outflows: The term “Total net cash outflows” dks bl izdkj ifjHkkf"kr fd;k x;k gS& fofufnZ"V ncko ds ifjn`'; is defined as “Total expected cash outflows” minus “Total esa ckn ds 30 fnuksa ¼ncko dh vof/k½ ds fy, Þldy visf{kr udnh expected cash inflows” in the specified stress scenario for cfgxZeuß ls Þldy visf{kr udnh vkxeuß dks ?kVkukA the subsequent 30 calendar days (the stressed period). Rkjyfuf/k O;kfIr vuqikr = mPp Lrj dh rjy vkfLr ds LVkd@ LCR = Stock of High Quality Liquid Assets/Total Net Cash vkxkeh 30 fnuksa esa ldy 'kq) udnh cfgxZeu > = 100 çfr'kr Outflows over the next 30 calendar days >=100% mPp Lrj dh rjy vkfLr;ka High Quality Liquid Assets rjy vkfLr esa mPp Lrj dh og vkfLr lekfo"V gS ftls ncko ds Liquid assets comprise of high quality assets that can be readily ifjn`'; dh vof/k esa rRdky cspk tk ldrk gS ;k fuf/k ds izkfIr ds fy, sold or used as collateral to obtain funds in a range of stress laikf'Zod fuf/k ds #i esa mi;ksx esa yk;k tk ldrk gS A mls Hkkj jfgr scenarios. They should be unencumbered i.e. without legal, vFkkZr~ fdlh Hkh izdkj ds fof/kxr] fu;ked ;k ifjpkyuxr~ O;oèkku ls regulatory or operational impediments. Assets are considered to jfgr gksuk pkfg,A vkfLr;ksa dks ml fLFkfr esa mPp xq.koRrk dh rjy be high quality liquid assets if they can be easily and immediately vkfLr le>k tkrk gS tc og vklkuh ls ;k rqjUr mlds ewY; esa cgqr converted into cash at little or no loss of value. The liquidity of an de ;k fcuk uqdlku ds udnh esa ifjofrZr gks tk;s A ,d vkfLr dh asset depends on the underlying stress scenario, the volume to rjyrk fopkjk/khu ncko ifjn`';] eqnzhd`r dh tkus okyh jkf'k dh ek=k be monetized and the timeframe considered. vkSj fu/kkZfjr le; lhek ij fuHkZj djrh gS A cSad dh mPp Lrjh; xq.koRrk dh rjy vkfLr esa eq[;r% lfEefyr Bank’s composition of HQLA mainly consists of gS %&

1- Ukdnh 1. Cash in Hand 2- Uk-fu-v-¼lh-vkj-vkj-½ dk vfrfjDr 'ks"k 2. Excess CRR balance 3- Lka-p-vuq-¼,l-,y-vkj-½ dh U;wure vko';drk ls vf/kd ljdkjh 3. Government securities in excess of minimum SLR require- izfrHkwfr ment 4- pyfuf/k O;kfIr vuqikr ¼,ylhvkj½&'kq) ekax ,oa fe;knh ns;rkvksa 4. Facility to avail liquidity for Liquidity coverage ratio - 8 % of ds 8 izfr'kr ij j[kus ds fy;s rjyrk ds fy;s lqfo/kk NDTL 5- 2d Lrj dh vkfLr;ka 5. Level 2A Assets

97 [kkrksa ij fVIif.k;k¡ Notes on Accounts

Ukdnh ds cfgxZeu esa eq[;r% lfEefyr gSa The Cash Outflow mainly consists of 1- QqVdj tek 1. Retail deposit 2- vlqjf{kr Fkksd foÙkh;u 2. Unsecured Wholesale Funding 3- vU; fof/kd bdkbZ;ksa ds xzkgdksa ds fy;s foRriks"k.k 3. Funding for other legal entity customers udnh vkxeu esa eq[;r% lfEefyr gSa% The cash Inflow mainly consists of 1. Performing advances 1- fu"iknd vfxze 2- og jkf'k tks foÙkh;@Hkk-fj-cSa-@dsUnzh; cSad ls izkIr gksuh gSA 2. Amount to be received from financial and RBI/Central banks

'kq) udnh cfgZxeu dh Hkkjrh; fjtoZ cSad }kjk fofHkUu ns;rk Jsf.k;ksa ,oa The net cash outflows are calculated by applying RBI prescribed vukgfjr izfrc)rkvksa ij fu/kkZfjr cfgZxeu rRoksa dks ykxw djds va'kr% outflow factors to the various categories of liabilities as well as 30 dsySUMj fnu ds vUnj ifjiDo gksus okyh vkfLr;ksa ls lek;ksftr to undrawn commitments, partially offset by inflows from assets dj x.kuk dh tkrh gSA 2014&15 ds nkSjku vkSlr ,ylhvkj 326-30 maturing within 30 days. The average LCR was at 326.30 % izfr'kr Fkk tks 2015&16 esa 337-85 izfr'kr ij gS A vkSlr ,pD;w,y, during 2014-15 which stands as 337.85% for 2015-16. The tks 2014&15 esa #-208-32 djskM+ Fkk c<+dj #-327-72 djksM+ gks x;k gSA average HQLA were ` 208.32 Crore which has risen to ` 327.72 vkSlr udnh cfgZxeu 2014&15 esa #-255-37 djksM+ Fkk tcfd 2015&16 crore. The average cash outflows were ` 255.37 Crore in 2014- esa ;g #-388-01 djksM+ FkkA blh izdkj vkSlr vUrZizokg #-540-18 djksM+ 15 and `388.01 crore in 2015-16. Similarly, the average inflows ls c<+dj #-614-70 djksM+ gks x;k gSA have increased to `614.70 Crore from ` 540.18 crore. ekpZ] 2016 esa lekIr o"kZ esa vkSlr ,ylhvkj 337-85 izfr'kr gS tksfd Average LCR for the year ended March 2016 is 337.85%, which Hkkjrh; fjtoZ cSad }kjk fu/kkZfjr U;wure ekud ls dgha vf/kd gSA is comfortably above RBI prescribed minimum requirement.

Potable water supply project undertaken by Bank at village- Tallakoon, Nainital under CSR.

98 31 ekpZ] 2016 dks lekIr gq, o"kZ ds udnh çokg dk fooj.k STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31ST MARCH 2016

¼#i;s gtkj esa½@(` in Thousands) 31-03-2016 dks lekIr o"kZ 31-03-2015 dks lekIr o"kZ Year Ended 31.03.2016 Year Ended 31.03.2015 d½/A. ifjpkyuxr dk;Zdykiksa ls udnh izokg Cash flow from operating activities : djk/kku ls igys 'kq) ykHk@Net profit before taxes. 665200 963319 fuEufyf[kr ds fy, lek;kstu@Adjustments for : LFkkbZ vkfLr;ksa ij ewY;gzkl@Depreciation on fixed Assets 30845 34538 izfrysf[kr fuos’k ij ewY;gzkl@Depreciation on investment Written back -10827 -26410 fuos’kksa ds fy, fd;k x;k izkoèkku@Provision made on Investment 0 0 vutZd vkfLr;ksa ds fy, izko/kku@Provision in respect of NPA. 118183 106721 iquZxfBr ekud vkfLr;ksa ds fy, izko/kku@Provision for standard assets restr 20300 21987 vU; enksa ds fy, izko/kku@Provision for other items. 0 0 LFkkbZ vkfLr;ksa dh fcØh ij ykHk@¼¼gkfu½@Profit (Loss) on sale of fixed Assets. -107 -45 pkyw o"kZ ds fy, vkLFkfxr dj@Deferred Tax for Current year 42259 -10330 vfrfjDr izko/kku tks izfrysf[kr fd;k x;k@Excess Provision written back -348 -1160 865504 1088620 fuEufyf[kr ds fy, lek;kstu@Adjustment for : fuos’kksa esa ¼o`f)½@deh@(Increase)/Decrease in investments -21780 -2357668 vfxzeksa esa ¼o`f)½@deh@(Increase)/Decrease in advances -1292381 -1198030 vU; vkfLr;ksa esa ¼o`f)½@deh@(Increase)/Decrease in other assets -1373603 63347 m/kkj esa o`f)@¼deh½@Increase/(Decrease) in Borrowings -460 -188 tek esa o`f)@¼deh½@Increase/(Decrease) in deposits -334562 6944624 vU; ns;rkvksa vkSj izko/kkuksa esa o`f)@¼deh½ 970208 -1218220 Increase/(Decrease) in other liabilities and provisions Hkqxrku fd;k x;k izR;{k dj@Direct Taxes paid. -195500 -291500 ifjpkyuxr dk;Zdykiksa ls 'kq) udnh ¼d½ -1382575 3030985 Net Cash from operating Activities (A) [k½/B. fuos’k lEcU/kh dk;Zdykiksa ls udnh izokg Cash flow from investing activities : LFkkbZ vkfLr;ksaa esa ¼o`f)½@deh@(Increase)/Decrease in fixed Assets -26837 -28639 O;kikj ls lEcfU/kr fuos’kksa esa ifjorZu@Changes in Trade related investments 0.00 0.00 leuq"kaxh@vU; ls izkIr ykHkka’k@Dividend received from subsidiaries/others 0.00 0.00 fuos’k lEcU/kh dk;Zdykiksa ls 'kq) udnh ¼[k½ -26837 -28639 Net Cash from investing activities (B) 'ks;j iwath@Share Capital 0.00 0.00 'ks;j ij of/kZr ewY; ¼izhfe;e½@Share Premium 0.00 0.00 vizfrHkwr ekspuh; ckW.M@Unsecured Redeemable Bonds 0.00 0.00 ykHkka’k@Dividend -178191 -172590 vizfrHkwr ekspuh; ckW.Mksa ij fn;k x;k@ns; C;kt 0.00 0.00 Interest paid/payable on unsecured redeemable bonds x½/C. foŸkh; dk;Zdykiksa ls 'kq) udnh ¼x½@Net Cash from financing Activities(c) -178191 -172590 udnh vkSj udn lerqY;ksa esa 'kq) o`f) ¼d½ $ ¼[k½ $ ¼xa½ -1587604 2829756 Net increase in cash & cash equivalents (A)+(B)+(C) o"kZ ds vkjEHk ij udnh o lerqY;@Opening Cash & cash equivalents 19591897 16762141 o"kZ dh lekfIr ij udnh o lerqY;@Closing Cash & cash equivalents 18004293 19591897

99 Yks[kk ijh{kdksa dh fjiksVZ Auditor’s Report

Lora= Yks[kk ijh{kdksa dh fjiksVZ INDEPENDENT AUDITOR’S REPORT UkSuhrky cSad fyfeVsM ds To the Members of va’k/kkjdksa ds izfr The Nainital Bank Limited ,dy foÙkh; foojf.k;ksa ij fjiksVZ Report on the Standalone Financial Statements 1- geus uSuhrky cSad fyfeVsM ¼blds ckn ftls ßcSadß fy[kk x;k 1. We have audited the accompanying standalone financial statements of The Nainital Bank Limited (‘the Bank’), which gS½ dh] layXu ,dy foojf.k;ksa ftuesa 31 ekpZ] 2016 dk rqyu comprise the Balance Sheet as at 31 March 2016, the Profit Ik=] ykHk&gkafu [kkrk fooj.k vkSj mlh frfFk dks lekIr gq, o"kZ and Loss Account, the Cash Flow Statement for the year dh udnh izokg fooj.kh vkSj egRoiw.kZ ys[kk uhfr;ksa dk lkjka'k then ended, and a summary of significant accounting poli- rFkk vU; O;k[;kRed lwpuk,a lfEefyr gSa] ys[kk ijh{kk dh gSA cies and other explanatory information. Incorporated in these bu foÙkh; foojf.k;ksa esa gekjs }kjk ys[kk ijhf{kr 5 'kk[kkvksa dh financial statements are the returns of 5 branches audited foojf.k;ka rFkk 'kk[kk ys[kk ijh{kdksa }kjk ijhf{kr 118 'kk[kkvksa dk by us and 118 branches audited by statutory branch audi- tksfd fnYyh] gfj;k.kk] jktLFkku] mÙkjk[k.M ,oa mÙkj izns'k fLFkr tors of bank branches at Delhi, Haryana, Uttar Pradesh, 'kk[kkvksa dh foojf.k;ka lfEefyr gSaA Hkkjrh; fjtoZ cSad ds }kjk Rajasthan and Uttrakhand. The branches audited by us and tkjh fn'kk&funsZ'kksa ds vuqlkj cSad }kjk fu/kkZfjr 'kk[kkvksa dk gekjs those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank }kjk ,oa vU; 'kk[kk ys[kk ijh{kdksa }kjk ijhf{kr dh xbZA by the Reserve Bank of India.

,dy foÙkh; foojf.k;ksa ds fy;s Management’s Responsibility for the Standalone izcU/ku dk nkf;Ro Financial Statements

2- cSad dk funs'kd e.My dEiuh vf/kfu;e 2013 ¼vf/kfu;e½ ds [k.M 2. The Bank’s Board of Directors is responsible for the matters 134 ¼5½ esa fn, x, elyksa ds fy, mÙkjnk;h gS tks bu ,dy foÙkh; stated in section 134(5) of the Companies Act, 2013 (‘the foojf.k;ksa tks foÙkh; fLFkfr;ksa] foÙkh; dk;Zdykiksa vkSj cSad ds Act’) with respect to the preparation of these standalone fi- nancial statements that give a true and fair view of the finan- foÙkh; izokg dh mu ys[kk fl)kUrksa] tks lkekU;r% Hkkjr esa Lohdk;Z cial position, financial performance and cash flows of the gSa rFkk vf/kfu;e ds [k.M 133 ds vUrxZr fufnZ"V ys[kk ekudksa Bank in accordance with the accounting principles gener- ftUgsa dEiuh ¼ys[kk½ fu;e 2014 ds fu;e 7 ds lkFk rFkk cSafdax ally accepted in India, including the Accounting Standards jsX;wys'ku ,DV 1949 ds lsD'ku 29 ds izko/kkuksa vkSj Hkkjrh; fjtoZ specified under section 133 of the Act, read with Rule 7 of cSad }kjk le;≤ ij tkjh fofHkUu fn'kk&funsZ'kksa o ifji=ksa ds the Companies (Accounts) Rules, 2014 and provisions of Section 29 of the Banking Regulation Act, 1949 and circu- vuqlkj i<+k tk;s] dk fooj.k lgh vkSj fu"i{k fLFkfr n'kkZrk gSA lars and guidelines issued by the Reserve Bank of India bl nkf;Ro esa vf/kfu;e ds izko/kkuksa ds vuqlkj cSad dh vkfLr;ksa (‘RBI’) from time to time. This responsibility also includes dh lqj{kk rFkk /kks[kk/kM+h rFkk vU; vfu;feÙkkvksa dks jksdus vkSj maintenance of adequate accounting records in accordance mudk irk yxkus] mfpr ys[kk uhfr;ksa ds p;u vkSj dk;kZUo;u] with the provisions of the Act for safeguarding of the assets ;Fkksfpr vkSj foosdiw.kZ fu.kZ; ysus vkSj vkadyu djus rFkk Ik;kZIr of the Bank and for preventing and detecting frauds and other irregularities; selection and application of appropriate vkarfjd foÙkh; fu;a=.k dh #ijs[kk ds dk;kZUo;u] fdz;kUo;u vkSj accounting policies; making judgments and estimates that j[k&j[kko] tks ,slh foÙkh; foojf.k;ksa tks lgh ,oa fu"i{k fLFkfr are reasonable and prudent; and design, implementation n'kkZrh gSa vkSj fdlh Hkh vokLrfodrk pkgs og /kks[kk/kM+h dh otg and maintenance of adequate internal financial controls, ls gks ;k =qfVo'k] ls eqDr gks] ls lEcfU/kr ys[kk fjdkMZ dks iwjk that were operating effectively for ensuring the accuracy djus vkSj mldh ;FkkFkZrk dks lqfuf'pr djus ds fy, izHkkoiw.kZ

3- gekjk nkf;Ro gS fd ge Lo;a }kjk dh xbZ ys[kk ijh{kk ds vkèkkj 3. Our responsibility is to express an opinion on these stan- ij bu ,dy foÙkh; foojf.k;ksa ij viuh jk; izdV djsaA dalone financial statements based on our audit.

100 Yks[kk ijh{kdksa dh fjiksVZ Auditor’s Report

4- geus vf/kfu;e ds izko/kkuksa] ys[kkdj.k vkSj ys[kk ijh{kk ds ekudksa 4. We have taken into account the provisions of the Act, the vkSj mu elyksa dks ftUgsa vf/kfu;e ds izko/kkuksa vkSj fu;eksa ds accounting and auditing standards and matters which are vUrxZr ys[kk ijh{kdksa dh fjiksVZ esa lfEefyr djuk visf{kr gS dks required to be included in the audit report under the provi- laKku esa fy;k gSA sions of the Act and the Rules made there under. 5- geus cSad dk bldh 'kk[kkvksa lfgr vf/kfu;e ds [k.M 143 ¼10½ 5. We conducted our audit of the Bank including its branches in accordance with Standards on Auditing (‘the Standards’) ds vUrxZr tkjh ekudksa ds vuq#i ys[kk ijh{kk dk dk;Z fd;kA bu specified under section 143(10) of the Act. Those Standards ekudksa ds vuqlkj ;g visf{kr gS fd ge uSfrd vis{kkvksa dk ikyu require that we comply with ethical requirements and plan djsa vkSj ys[kk ijh{kk dh ;kstuk ,oa fdz;kUo;u bl izdkj djsa rkfd and perform the audit to obtain reasonable assurance about ;g lqfuf'pr gks lds fd foÙkh; foojf.k;ka fdlh Hkh =qfViw.kZ dFku whether the financial statements are free of material mis- ls eqDr gSaA statements.

6- ys[kk ijh{kk ds dk;Z esa foÙkh; foojf.k;ksa esa fn, x, vkadM+ksa vkSj 6. An audit involves performing procedures to obtain audit izdVhdj.k ds leFkZu esa fn, x, lk{;ksa ds vk/kkj ij dk;Z fu"iknu evidence about the amounts and the disclosures in the fi- dh izfdz;k dh tkrh gSA p;u dh xbZ izfdz;k ys[kk ijh{kd ds fu.kZ; nancial statements. The procedures selected depend on the ij fuHkZj djrh gS ftlesa foÙkh; foojf.k;ksa esa =qfViw.kZ dFku pkgs auditor’s judgment, including the assessment of the risks of oks /kks[ks ls gks ;k xyrh ls] ds tksf[ke dk vkdyu Hkh lfEefyr material misstatement of the financial statements, whether gSA mu tksf[keksa dk vkadyu djrs le; ys[kk ijh{kd cSad }kjk due to fraud or error. In making those risk assessments, the lgh ,oa fu"i{k foÙkh; foojf.k;ksa dh rS;kjh ds lEcU/k esa vkUrfjd auditor considers internal financial control relevant to the foÙkh; fu;a=.k ij fopkj djrk gS rkfd og ys[kk ijh{kk dh #ijs[kk Bank’s preparation of the financial statements that give a tks ml fLFkfr esa mfpr gks rS;kj dj ldsA ysfdu ;g dEiuh dh true and fair view in order to design audit procedures that foÙkh; foojf.k;ksa ds fy, Ik;kZIr vkUrfjd foÙkh; fu;U=.k O;oLFkk are appropriate in the circumstances. An audit also includes vkSj ,sls fu;U=.k ds ifjpkyuxr izHkko'khyrk ij fopkj O;Dr djus evaluating the appropriateness of accounting policies used ds mn~ns'; ls ugha gSA ys[kk ijh{kk esa cSad ds funs'kdksa }kjk viuk;h and the reasonableness of the accounting estimates made xbZ ys[kk uhfr;ksa dh leqfprrk] ys[kkuqekuksa ds vkSfpR; rFkk foÙkh; by the Bank’s Directors, as well as evaluating the overall foojf.k;ksa ds lexzrk izdVhdj.k dk vkadyu Hkh lfEefyr gSA presentation of the financial statements.

7- gesa fo’okl gS fd tks lk{; gesa izkIr gq, gSa os ,dy foÙkh; 7. We believe that the audit evidence we have obtained is suf- fooj.kksa dh ys[kk ijh{kk ls lEcfU/kr jk; nsus ds fy;s i;kZIr vkSj ficient and appropriate to provide a basis for our audit opin- mfpr vk/kkj iznku djrs gSaA ion on the standalone financial statements. jk; Opinion 8- gekjh jk; rFkk loksZÙke tkudkjh esa rFkk gesa fn;s x;s Li"Vhdj.k 8. In our opinion and to the best of our information and ac- ds vk/kkj ij mijksDr ,dy foojf.k;ka vkSj mDr [kkrs vkSj mu cording to the explanations given to us, the aforesaid stan- ij nh xbZ fVIif.k;k¡] cSafdax fofu;eu vf/kfu;e 1949 rFkk dEiuh dalone financial statements give the information required by vfèkfu;e 2013 ds vUrxZr visf{kr lwpuk,a cSaddkjh dEifu;ksa the Banking Regulation Act, 1949 as well as the Companies Act, 2013 in the manner so required for banking companies ds fy;s visf{kr fof/k ls nsrh gSa rFkk 31 ekpZ] 2016 dks cSad ds and give a true and fair view in conformity with accounting dke&dkt vkSj mlh fnu lekIr o"kZ dks blds ykHk vkSj udnh principles generally accepted in India of the state of affairs izokg dh lgh vkSj fu"i{k fLFkfr cSadksa ds dkedkt ds lEcU/k esa of the Bank as at 31st March, 2016, and its profit and its cash lkekU;r% Lohdk;Z ys[kk fl)kUrksa ds vuqlkj n'kkZrh gSaA flows for the year then ended. vU; fof/kd vkSj fu;ked ekeyksa ij fjiksVZ Report on Other Legal and Regulatory Requirements 9- rqyu&Ik= ,oa ykHk&gkfu [kkrk cSaddkjh fofu;eu vfèkfu;e] 1949 9. The Balance Sheet and the Profit and Loss Account have dh /kkjk 29 ds izko/kkuksa ftUgsa dEiuh vfèkfu;e 2013 dh èkkjk 133 been drawn up in accordance with the provisions of Section rFkk dEiuh ¼ys[kk½ fu;e 2014 ds fu;e 7 ds lkFk Ik<+k tk,] ds 29 of the Banking Regulation Act, 1949 read with Section 133 of the Companies Act, 2013 read with Rule 7 of the vuqlkj rS;kj fd, x, gSaA Companies (Accounts) Rules, 2014.

10- tSlk fd cSaddkjh fofu;eu vf/kfu;e 1949 ds [k.M 30 ds mi[k.M 10. As required by sub section (3) of section 30 of the Banking ¼3½ ds vuqlkj visf{kr gS ge lwfpr djrs gSa fd % Regulation Act, 1949, we report that:

101 Yks[kk ijh{kdksa dh fjiksVZ Auditor’s Report

d½ os leLr lwpuk,a vkSj Li"Vhdj.k tks gekjh loksZÙke tkudkjh a) we have obtained all the information and explanations vkSj fo’okl ls ys[kk ijh{kk ds fy, vko’;d Fks] gesa fey x, which, to the best of our knowledge and belief, were gSa vkSj geus bUgsa lUrks"ktud ik;k gSA necessary for the purpose of our audit and have found them to be satisfactory;

[k½ gekjh tkudkjh esa vk;s cSad ds ysu&nsu cSad ds vf/kdkj {ks= b) The transactions of the Bank, which have come to our esa fd, x, gSaA notice, have been within the powers of the Bank. x½ cSad ds dk;kZy;ksa o 'kk[kkvksa ls izkIr foojf.k;ka ys[kk ijh{kk c) The returns received from the offices; and branches of gsrq Ik;kZIr ik;h x;haA the Bank have been found adequate for the purposes of our audit.

11- tSlk fd dEiuh vf/kfu;e 2013 ds [k.M 143 ¼3½ ds vuqlkj 11. Further, as required by section 143(3) of the Act, we further visf{kr gS ge iqu% lwfpr djrs gSa fd %& report that:

i) os leLr lwpuk,a vkSj Li"Vhdj.k tks gekjh loksZÙke tkudkjh i) we have sought and obtained all the information and vkSj fo’okl ls ys[kk ijh{kk ds fy, vko’;d Fks] geus ekaxs explanations which to the best of our knowledge and rFkk ;g gesa fey x, gSa belief were necessary for the purpose of our audit;

ii) gekjh jk; esa cSad us ;Fkksfpr ys[kk cfg;ka] tgka rd budh ii) In our opinion, proper books of account as required by tkap ls izdV gksrk gS ;Fkkfof/k rS;kj dh gSa vkSj mu 'kk[kkvksa law have been kept by the Bank so far as it appears ftudh geus ys[kk ijh{kk ugha dh g]S ls mfpr foojf.k;ka tks from our examination of those books and proper gekjs }kjk dh tk jgh ys[kk ijh{kk ds fy, Ik;kZIr g]Sa izkIr dj returns adequate for the purposes of our audit have yh xbZ gSaA been received from branches not visited by us..

iii) cSad ds 'kk[kk ys[kk ijh{kdksa }kjk dEiuh vf/kfu;e 2013 ds [k.M iii) The reports on the accounts of the branch offices 143 ¼8½ ds vUrxZr ys[kk ijhf{kr 'kk[kkvksa ds [kkrksa ij fjiksVZ audited by branch auditors of the Bank under section Hkh gesa Hksth xbZ gS vkSj bUgsa bl fjiksVZ esa fy;k x;k gSA 143(8) of the Companies Act 2013 have been sent to us and have been properly dealt with by us in preparing this report.

iv) rqyu&i= vkSj ykHk&gkfu [kkrk rFkk udnh izokg fooj.kh iv) The Balance Sheet, the Profit and Loss Account and ftuls ;g fjiksVZ lEcfUËkr gS ys[kk cfg;ksa vkSj mu 'kk[kkvksa the Cash Flow Statement dealt with by this report are ls] ftudh geus ys[kk ijh{kk ugha dh gS] izkIr foojf.k;ksa ls in agreement with the books of account and with the feyku dj rS;kj fd;s x;s gSaA returns received from the branches not visited by us. v) In our opinion, the aforesaid standalone financial v) gekjh jk; esa mijksDr ,dy foÙkh; foojf.k;ka vf/kfu;e ds [k.M statements comply with the Accounting Standards 133 esa fofufnZ"V ys[kk ekudksa ftUgsa dEiuh ¼ys[kk½ fu;e] 2014 ds specified under Section 133 of the Act, read with Rule fu;e 7 ds lkFk i<+k tk;s] ds vuqlkj gSa vkSj os vkj-ch-vkbZ- }kjk 7 of the Companies (Accounts) Rules, 2014, to the fu/kkZfjr ys[kk uhfr;ksa ds izfrdwy ugha gSaA extent they are not inconsistent with the accounting policies prescribed by RBI;

vi) 31 ekpZ] 2016 dks izkIr funs’kdksa }kjk fn, x, fyf[kr vi) on the basis of written representations received from izfrosnuksa ftUgsa funs’kd eaMy us fjdkMZ esa fy;k gS] ds vk/kkj the directors as on 31 March 2016 taken on record ij dksbZ Hkh funs’kd 31 ekpZ] 2016 dks vf/kfu;e ds [k.M 164 by the Board of Directors, none of the directors is ¼2½ dh 'krksZa ds vuqlkj funs’kd ds in ds fy, vik= ugha gSA disqualified as on 31 March 2016 from being appointed as a director in terms of Section 164 (2) of the Act : and

vii) with respect to the adequacy of the internal financial vii) cSad dh foÙkh; fjiksZfVax ij vkUrfjd foÙkh; fu;a=.k dh Ik;kZIrrk ds lUnHkZ esa ,oa ,sls fu;U=.kksa dh ifjpkyukRed controls over financial reporting of the Bank and the operating effectiveness of such controls, refer to our izHkko ds fy;s gekjh izFkd fjiksVZ vuqyXud ¼d½ dk lanHkZ ysaA separate Report in “Annexure A”. viii) gekjh jk; esa ,oa leqfpr lwpuk ,oa Li"Vhdj.k ds vk/khu vU; viii) with respect to the other matters to be included in the ekeyksa esa] ftUgsa dEiuh ¼ys[kk ijh{kk vkSj ys[kk ijh{kd½ fu;e 2014 Auditor’s Report in accordance with Rule 11 of the

102 Yks[kk ijh{kdksa dh fjiksVZ Auditor’s Report

ds fu;e 11 ds vuqlkj ys[kk ijh{kk dh fjiksVZ esa lfEefyr djuk Companies (Audit and Auditors) Rules, 2014, in our gS%& opinion and to the best of our information and according to the explanations given to us:

d½ cSad us viuh foÙkh; foojf.k;ksa esa fopkjk/khu eqdneksa ds (a) the Bank has disclosed the impact of pending viuh foÙkh; fLFkfr ij izHkko dks mtkxj fd;k gS& ns[ksa litigations on its financial position in its financial foÙkh; foojf.k;ksa dh vuqlwph 18&uksV 7-7A statements - Refer Schedule 18 - Note 7.7 to the financial statements;

[k½ cSad us nh?kZ vof/k dh ,slh dksbZ lafonk ftlesa vuqekfur b) The Bank did not have any long-term contracts lafonk,a Hkh lfEefyr gSa] ftlesa dksbZ iwokZuqekfur uqdlku including derivative contracts for which there were gk]s ugha dh gSA any material foreseeable losses and x½ cSad us nh?kZ vof/k dh ,slh dksbZ lafonk] ftlesa vuqekfur c) There has been no delay in transferring amounts, lafonk,a Hkh lfEefyr gSa] ugha dh gS ftlesa dksbZ required to be transferred, to the Investor iwokZuqekfur gkafu dh vk'kadk gksA Education and Protection Fund by the Bank.

d`rs fot; eqds'k ,.M dEiuh For Vijay Mukesh & Co. lunh ys[kkdkj Chartered Accountant ,Q-vkj-,u- 014554,u FRN: 014554N g0@& Sd/- LFkku% ubZ fnYyh ¼lh, eqds'k tSu½ Place of Signature: New Delhi (CA MUKESH JAIN) fnukad% 28-04-2016 l-la- 094199 Date of Report: 28/04/2016 M. NO. 094199

103 Yks[kk ijh{kdksa dh fjiksVZ Auditor’s Report uSuhrky cSad fyfeVsM ¼cSad½ dh ,dy foÙkh; foojf.k;ksa Annexure A to the Independent Auditor’s Report of ij Lora= ys[kk ijh{kdksa dh leku frfFk dh fjiksVZ dk even date on the Standalone* Financial Statements of layXud ¼d½ The Nainital Bank Limited (‘the Bank’) dEiuh vf/kfu;e] 2013 ds vuqHkkx 143 dh mi/kkjk 3 Report on the Internal Financial Controls under ds [k.M (i) ds vUrxZr vkUrfjd foÙkh; fu;U=.kksa ij Clause (i) of Sub-section 3 of Section 143 of the fjiksVZ Companies Act, 2013 1- geus 31 ekpZ] 2016 dks cSad dh leku frfFk dks lekIr o"kZ dh 1. We have audited the internal financial controls over financial ,dy foÙkh; foojf.k;ksa ds ys[kk ijh{k.k ds la;kstu esa uSuhrky cSad reporting of The Nainital Bank Limited (‘the Bank’), as at 31 March 2016 in conjunction with our audit of the standalone* fyfeVsM dh foÙkh; fjiksfVZax ds Åij vkUrfjd foÙkh; fu;a=.k dk financial statements of the Bank for the year ended on that ys[kk ijh{k.k fd;kA date. vkUrfjd foÙkh; fu;a=.kksa ds fy;s izcU/ku dh Management’s Responsibility for Internal Financial ftEesnkjh Controls 2- bULVhV~;wV vkWQ pkVZM ,dkmUVsUVl vkQ bfUM;k }kjk tkjh dh xbZ 2. The Bank’s Board of Directors is responsible for establishing and maintaining internal financial controls based on the foÙkh; fjiksfVZax ds Åij vkUrfjd fu;a=.k ds vko';d ?kVdksa dks internal control over financial reporting criteria established /;ku esa j[krs gq, cSad }kjk LFkkfir foÙkh; fjiksfVZax ij vkUrfjd by the Bank considering the essential components of internal foÙkh; fu;a=.k dks fu;r djus ,oa cuk, j[kus ds fy, cSad dk control stated in the Guidance Note on Audit of Internal funs'kd eaMy ftEesnkj gSA bu ftEesnkfj;ksa esa i;kZIr vkUrfjd Financial Controls over Financial Reporting (‘the Guidance Note’) issued by the Institute of Chartered Accountants of foÙkh; fu;a=.kksa dk #ikadu ykxw djuk o cuk, j[kuk 'kkfey gS India (‘the ICAI’). These responsibilities include the design, tks fd vius O;olk; ds dq'ky ,oa fu;ec) lapkyu ftlesa cSad implementation and maintenance of adequate internal dh uhfr;ksa ij dk;e jguk] bldh vkfLr;ksa dh lqj{kk] /kks[kk/kM+h o financial controls that were operating effectively for ensuring xyfr;ksa dks jksduk ,oa irk yxkuk ys[kk fjdkWMZ dh lVhdrk ,oa the orderly and efficient conduct of its business, including adherence to Bank’s policies, the safeguarding of its assets, iw.kZrk ,oa fo'oluh; foÙkh; lwpuk dh le; ij rS;kjh tSlk fd the prevention and detection of frauds and errors, the dEiuh vf/kfu;e] 2013 ds v/khu okafNr gS] dks lqfuf'pr djrs gq, accuracy and completeness of the accounting records, and izHkkoiw.kZ rjhds ls dke dj jgs gSaA the timely preparation of reliable financial information, as required under the Companies Act, 2013 (‘the Act’). ys[kk ijh{kdksa dh ftEesnkjh Auditor’s Responsibility 3- gekjh ftEesnkjh gekjs ys[kk ijh{k.k ds vk/kkj ij foÙkh; fjiksZfVax ds 3. Our responsibility is to express an opinion on the Bank’s Åij cSad ds vkUrfjd foÙkh; fu;a=.k ij viuh jk; nsuk gSA geus internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with viuk ys[kk ijh{k.k vkbZlh,vkbZ }kjk tkjh ,oa vf/kfu;e ds vuqHkkx the Guidance Note on Audit of Internal Financial Controls 143¼10½ ds vUrxZr fu/kkZfjr le>s x;s foÙkh; fjiksZfVax ij vkUrfjd over Financial Reporting (‘the Guidance Note’) and the foÙkh; fu;a=.k ij xkbZMsUl uksV vkSj ys[kk ijh{k.k ds ekudksa ds Standards on Auditing (‘the Standards’), issued by the vkèkkj ij tgka rd fd os vkUrfjd ys[kk fu;U=.k ds ys[kk ijh{k.k ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal ij ykxw gksa] fd;k gSA ;s ekud ,oa xkbZMsUl uksV }kjk okafNr gS fd financial controls, both issued by the ICAI. Those Standards ge uSfrd vko';drkvkssa dk ikyu djsa rFkk ys[kk ijh{k.k dh bl and the Guidance Note require that we comply with ethical rjg ;kstuk ,oa fdz;kUo;u djsa fd bl lEcU/k esa mfpr vk'oklu requirements and plan and perform the audit to obtain fey lds fd D;k foÙkh; fjiksZfVax ij i;kZIr vkUrfjd fu;a=.k reasonable assurance about whether adequate internal financial controls over financial reporting was established LFkkfir gS ,oa cuk;s j[kk x;k gs ,oa D;k ,sls fu;a=.k izHkkoh

4- gekjk ys[kk ijh{k.k foÙkh; fjiksZfVax ds Åij vkUrfjd foÙkh; 4. Our audit involves performing procedures to obtain audit fu;a=.k ra= dh i;kZIrrk ,oa mudh ifjpkyu izHkko'khyrk ds evidence about the adequacy of the internal financial lEcU/k esa ys[kk ijh{k.k lk{; izkIr djus dh izn'kZu izfØ;k dks controls system over financial reporting and their operating

104 Yks[kk ijh{kdksa dh fjiksVZ Auditor’s Report

'kkfey djrk gSA foÙkh; fjiksZfVax ds Åij vkUrfjd foÙkh; fu;a=.k effectiveness. Our audit of internal financial controls over ds gekjs ys[kk ijh{k.k esa foÙkh; fjiksZfVax ds Åij vkUrfjd foÙkh; financial reporting included obtaining an understanding of fu;a=.k dh le> izkIr djus] ;g tksf[ke vkdyu djus dh rkfRod internal financial controls over financial reporting, assessing detksjh ekStwn gSA vkUrfjd fu;a=.k dh ifjpkyukRed dk;Z{kerk the risk that a material weakness exists, and testing and tks fd tksf[ke vkdyu ij vk/kkfjr gS 'kkfey gSaA pquh xbZ izfØ;k evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures ys[kk ijh{kd ds fu.kZ;] /kks[kk/kM+h ;k =qfV ds dkj.k foÙkh; fooj.k selected depend on the auditor’s judgement, including the esa rkfRod xyr C;kSjs ds vkdyu ij fuHkZj djrh gSA assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

5- gesa fo'okl gS fd gekjs }kjk fy;k x;k ys[kk ijh{k.k izek.k cSad ds 5. We believe that the audit evidence we have obtained is foÙkh; fjiksZfVax ij vkUrfjd foÙkh; fu;a=.k ds fo"k; esa ,d vkèkkj sufficient and appropriate to provide a basis for our audit iznku djus ds fy, Ik;kZIr ,oa leqfpr gSA opinion on the Bank’s internal financial controls system over financial reporting. foÙkh; fjiksZfVax ij vkUrfjd foÙkh; fu;a=.k Meaning of Internal Financial Controls over Financial dk vFkZ Reporting 6- cSad dh foÙkh; fooj.kh ij vkUrfjd foÙkh; fu;a=.k ,d izfdz;k 6. A bank’s internal financial control over financial reporting is a process designed to provide reasonable assurance gS tks fd foÙkh; fjiksZfVax dh fo'oluh;rk ,oa okg~; mÌs'; ls regarding the reliability of financial reporting and the lkekU;r% Lohd`r ys[kk fl)kUrksa ds vk/kkj ij rS;kj dh xbZ foÙkh; preparation of financial statements for external purposes fooj.kh dh izLrqfr ds fo"k; esa ,d mfpr vk'oklu nsus gsrq rS;kj in accordance with generally accepted accounting dh xbZ gSA cSad dh foÙkh; fjiksZfVax ij vkUrfjd foÙkh; fu;a=.k ¼1½ principles. A bank’s internal financial control over financial reporting includes those policies and procedures that (1) mu vfHkys[kksa ds j[k&j[kko ls lEcU/k j[krh gS tks lgh] Li"V#i ls pertain to the maintenance of records that, in reasonable ,oa leqfpr foLrkj ds lkFk cSad ds ysu&nsu ,oa fuiVkjs dks n'kkZrk detail, accurately and fairly reflect the transactions and gSA ¼2½ i;kZIr vk'oklu nsrk gS fd cSad ds ysu&nsu lkekU;r% dispositions of the assets of the bank; (2) provide reasonable Lohdk;Z ys[kk fl)kUrksa ds vuqlkj foÙkh; fooj.k rS;kj djus gsrq assurance that transactions are recorded as necessary to vuqer vko';d fu;eksa ds vUrxZr ntZ fd;s x;s gSa rFkk cSad dh permit preparation of financial statements in accordance with generally accepted accounting principles, and that izkfIr;ka ,oa O;; dsoy cSad ds izcU/ku o funs'kdksa ds izkf/kdkj ds receipts and expenditures of the bank are being made vk/kkj ij fd;s tk jgs gSaA ¼3½ leqfpr vk'oklu nsuk fd cSad dh only in accordance with authorizations of management and fdlh vkfLr dk tks fd cSad ds foÙkh; fooj.k ij ,d rkfRod izHkko directors of the bank; and (3) provide reasonable assurance Mkyrk gS vuf/kd`r vf/kxzg.k dh le; ij igpku o jksdFkke ds regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the bank’s assets that lEcU/k esa leqfpr vk'oklu nsrk gSA could have a material effect on the financial statements. foÙkh; fjiksZfVax ij vkUrfjd foÙkh; fu;a=.k dh fufgr Inherent Limitations of Internal Financial Controls lhek,a over Financial Reporting

7- vkUrfjd foÙkh; fjiksZfVax ij vkUrfjd foÙkh; fu;a=.k dh fufgr 7. Because of the inherent limitations of internal financial lhekvksa ds dkj.k feyhHkxr dh laHkkouk ;k fu;a=.kksa ij izcU/ku controls over financial reporting, including the possibility dk vR;f/kd ncko rkfRod feF;k dFku tksfd =qfV ;k /kks[kk/kM+h ds of collusion or improper management override of controls, dkj.k gksa] gks ldrs gSa vkSj irk ugha yxk;k tk ldrkA Hkfo’; ds material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the lEcU/k esa foÙkh; fjiksZfVax ij vkUrfjd foÙkh; fu;a=.k ds vkdyu internal financial controls over financial reporting to future dk dksbZ vuqeku ;g tksf[ke j[krk gS fd foÙkh; fjiksZfVax ij foÙkh; periods are subject to the risk that the internal financial fu;a=.k ifjfLFkfr;ksa esa cnyko ds lkFk vi;kZIr gks ldrk gS ;k control over financial reporting may become inadequate uhfr;ksa ,oa dk;Zfof/k;ksa ds lUnHkZ esa vuqikyu dh Lrj ?kV ldrh because of changes in conditions, or that the degree of gSA compliance with the policies or procedures may deteriorate.

105 Yks[kk ijh{kdksa dh fjiksVZ Auditor’s Report jk; Opinion 8- gekjh jk; esa cSad esa lHkh rkfRod lUnHkksZa esa ,d i;kZIr foÙkh; 8. In our opinion, the Bank has, in all material respects, an fjiksZfVax ij vkUrfjd foÙkh; fu;a=.k iz.kkyh gS ,oa ,slh foÙkh; adequate internal financial controls system over financial fjiksZfVax ij foÙkh; fu;a=.k 31 ekpZ] 2016 dks foÙkh; fjiksZfVax reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, ij foÙkh; fu;a=.k ds ekinaM ij tks fd cSad }kjk vkbZlh,vkbZ based on the internal control over financial reporting }kjk tkjh fn'kk&funsZ'k uksV esa of.kZr vkUrfjd foÙkh; fu;a=.k ds criteria established by the Bank considering the essential vfuok;Z dk;Zfof/k;ksa dks /;ku esa j[krs gq, izHkkoiw.kZ #i ls dk;Z components of internal control stated in the Guidance Note dj jgs FksA issued by the ICAI.

d`rs fot; eqds'k ,.M dEiuh For Vijay Mukesh & Co. lunh ys[kkdkj Chartered Accountant ,Q-vkj-,u- 014554,u FRN: 014554N

g0@& Sd/- gLrk{kj dk LFkku% ubZ fnYyh ¼lh, eqds'k tSu½ Place of Signature: New Delhi (CA MUKESH JAIN) fjiksVZ dk fnukad% 28-04-2016 l0la0 094199 Date of Report: 28/04/2016 M. NO. 094199

106 gekjh 'kk[kk,a Our Branch Network

fnYyh@DELHI (16) 8. U;w dksaMyh@New Kondli (M) 9. fodkl ekxZ@Vikas Marg (M) 1. iapdqab;k jksM@Panchkuian Road (M) 10. iIiudyka@Pappankala (M) 2. iViM+xat@Patparganj (M) 11. jksfg.kh lsDVj 16@ Rohini Sector 16 (M) 3. yktir uxj@Lajpat Nagar (M) 12. jksgrd jksM@Rohtak Road (M) 4. ihreiqjk ¼if'pe½@Pitampura (M) 13. lfoZl czkUp] iapdqab;k jksM@Serv. Br. Panchkuian Road (M) 5. 'kkyhekj ckx@Shalimar Bagh (M) 14. lqjgsM+k ¼utQx<+½@Surhera (Najfagarh) (R) 6. vkbZ-ih- ,[email protected] (M) 15. }kjdk@Dwarka (M) 7. fryd uxj@Tilak Nagar (M) 16. fny'kkn xkMZu@Dilshad Garden (M) mÙkjk[kaM@Uttarakhand (65) 50. pkSesy@Chaumel (R) ftyk & [email protected] (4) 51. nsoh/kqjk@Devidhura (R) 17. vYeksM+k ¼eq[;½@Almora (Main) (SU) 52. yksgk?kkV@Lohaghat (R) 18. yksvj eky] vYeksM+k @ Lower Mall, Almora (SU) 53. Vudiqj@Tanakpur (SU) 19. jkuh[ksr@ Ranikhet (SU) ftyk & Å/ke flag [email protected] U.S. NAGAR (15) 20. }kjgkV@ Dwarahat (R) 54. cjk@Bara (R) ftyk & ckxs’[email protected] (3) 55. cktiqj@Bazpur (SU) 21. ckxs'oj@Bageshwar (R) 56. egs'kiqjk¼nksjkgk½] cktiqj7@ (R) 22. cuys[k@Banlekh (R) Maheshpura (Doraha), Bazpur 23. didksV@Kapkot (R) 57. cgjSuh] cktiqj@Bhareni, Bajpur (R) 58. tliqj@Jaspur (SU) ftyk & [email protected] (17) 59. dk'khiqj@Kashipur (SU) 24. uSuhrky ¼eq[;½@Nainital (Main) (SU) 60. fdPNk@Kichha (SU) 25. rYyhrky] uSuhrky@Tallital, Nainital (SU) 26. Hkherky@Bhimtal (R) 61. fdyk[ksM+k@Kilakhera (R) 27. gY}kuh jkeiqj jksM@Haldwani Rampur Road (SU) 62. uxyk ¼iaruxj½@Nagla (Pantnagar) (SU) 28. gY}kuh jsyos cktkj@Haldwani Railway Bazar (SU) 63. :nziqj@Rudrapur (SU) 29. gY}kuh] dkyk

107 gekjh 'kk[kk,a Our Branch Network

mÙkj izns'k@UTTAR PRADESH (28) ftyk & [email protected] MEERUT ftyk & [email protected] (4) 102. esjB@Meerut (U) 86. cjsyh fl- ykbZUl@Bareilly Civil Lines (U) ftyk & [email protected] MORADABAD 87. cjsyh] izHkkr uxj@Bareilly, Prabhat Nagar (U) 103. eqjknkckn@Moradabad (U) 88. cjsyh] Qjhniqj @Bareilly, Faridpur (SU) ftyk & eqt¶[email protected] MUZAFFARNAGAR 89. cgsM+h@Baheri (SU) 104. eqt¶Qjuxj@Muzaffarnagar (U) ftyk & cqyUn'[email protected] ftyk & [email protected] PILIBHIT 90. cqyUn'kgj@Bulandshahar (U) 105. ihyhHkhr@Pilibhit (U) ftyk&xkft+;[email protected] GHAZIABAD (2) ftyk & [email protected] RAMPUR (2) 91. xkft+;kckn@Ghaziabad (U) 106. jkeiqj@Rampur (U) 92. oS'kkyh@Vaishali (U) 107. fcykliqj@Bilaspur (SU) ftyk & dkuiqj@DISTT. – KANPUR (2) ftyk &'kkgtgk¡[email protected] SHAHJAHANPUR 93. dkuiqj@Kanpur (M) 108. 'kkgtgk¡iqj@Shahjahanpur (U) 94. cjkZ&dkuiqj@Barra-Kanpur (M) ftyk & [email protected] SITAPUR ftyk & y[kuÅ@DISTT.- LUCKNOW (6) 109. lhrkiqj@Sitapur (U) 95. f=yksd ukFk jksM] y[kuÅ (M) ftyk & [email protected] SAHARANPUR Triloki Nath Road, Lucknow 110. lgkjuiqj@Saharanpur (U) 96. egkuxj] y[kuÅ@Mahangar, Lucknow (M) ftyk & [email protected] BIJNOR 97. vkf'k;kuk] y[kuÅ@Ashiana, Lucknow (M) 111. uthckckn@Nazibabad (SU) 98. uknku egy ekxZ] y[kuÅ (M) 112. fctukSj@Bijnore (SU) Nadan Mahal Road, Lucknow ftyk xkS- cq- [email protected]. Nagar (2) 99. xkserh uxj] y[kuÅ@Gomti Nagar, Lucknow (M) 113. uks,Mk lSDVj &18@NOIDA Sect. - 18 (U) 100. vkbZvkbZ,e jksM] y[kuÅ@IIM Road, Lucknow (M) 114. uks,Mk lSDVj & 50@NOIDA Sect. - 50 (U) ftyk vkxjk@Distt. Agra 115. /kkeiqj@Dhampur 101. vkxjk@Agra (U) 116. xzsVj uks,Mk@Greater NOIDA (U)

gfj;k.kk@Haryana (5) [email protected] 120. vEckyk@Ambala (U) ftyk&xqM+xk¡[email protected] [email protected] 117. xqM+xk¡o@Gurgaon (U) 121. djuky@Karnal (U) [email protected] jktLFkku@Rajasthan (2) 118. ikuhir@Panipat (U) ftyk&t;[email protected] [email protected] 122. t;iqj@Jaipur (M) 119. Qjhnkckn@Faridabad (U) 123. t;iqj] dksViqryh@Jaipur, Kotputli (SU)

Key : M = Metropolitan egkuxjh; dsUn] U = Urban Centre 'kgjh dsUnz] SU = Semi Urban v)Z'kgjh dsUnz] R = Rural Centre xzkeh.k dsUnz

'kk[kkvksa dh la[;k fofHkUu dsUnzksa [email protected] Branches at various Centers :

1- egkuxjh; dsUnz 2- 'kgjh dsUnz 3- v)Z'kgjh dsUnz 4- xzkeh.k dsUnz Metro Urban Semi Urban Rural 24 29 40 30

{ks=h; dk;kZy;@Regional Offices

1. fnYyh @Delhi 2. gY}kuh@Haldwani 3. nsgjknwu@Dehradun

COMPANY SECRETARY : Vivek Sah, Company Secretary

STATUTORY AUDITORS : M/s. Vijay Mukesh & Company, Chartered Accountants, Delhi.

108 93rd Annual General Meeting

Farewell to Shri S. K. Gupta, Chairman & CEO 0 NTB .5 0 1 2 5 0.50 1 2

Regd Off. : G.B. Pant Road, Nainital - 263001 (Uttarakhand) H.O. : Naini Bank House, 7 Oaks, Mallital, Nainital-263001 (Uttarakhand) Phone : 05942 - 236 138/195, Fax : 05942 - 236 120 email: [email protected] Website : www.nainitalbank.co.in CIN NO.:U 65923UR 1922 PLC 000234