N1ftir I Corporation Bank

WUR lJcl4 Head Office 88, P.B. No. 88, Iciicfl #f TTf Mangaladevi Temple Road, 1• Pandeshwar, - 575001. n1ftir i MANGALURU -575001. FT Tr1W Corporation Bank Karnataka State

T 3TUtU A Premier Public Sector Bank 1ri #W 111TT INVESTOR SERVICES DEPARTMENT Ref.: tISD/117/2019-20 ftFiw Date: 3d r June 2019 To, To, BSE Ltd, The Manager Corporate Relationship Department Listing Department, 1st Floor, New Trading Ring National Stock Exchange of India Ltd. 1h Rotunda Building, P J Towers Exchange Plaza, 5 Floor, Plot No.C/1, C Block Dalal Street, Fort Bandra Kurla Complex, Bandra (E) MUMBAI -400 001 MUMBAI -400 051 http://listinq.bseindia.com-Listing Centre https ://www.connect2nse.com/LISTING/-NEAPS Ref.: Code No.532179 Symbol: CORPBANK

1 ' c Sir,

Annual Report containing Notice of Twenty Second Annual General Meeting of 29th Shareholders of the Bank to be held on June, 2019 *******

17th This has further reference to our letter No.ISD/087/2019-20 dated May 2019 in the above matter: we hereby submit a copy the Annual Report of the Bank sent to the shareholders along with the notice of the Annual General Meeting.

This is in compliance of Regulation 34 (1) (a) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Yours faithfully,

rr S.K. Dash) 31"frfl 'ki1) Deputy General Manager (Company Secretary)

, cida-1 End: IWT as above

E-mail : [email protected] ( :0824-2861888 / 2861500

TT:M WJt Do visit us at www.corpbank.com

dm{f©H$ [anmoQ>© ANNUAL REPORT 2018-2019 {df¶-gyMr CONTENTS {ddaU Particulars n¥ð> g§. Page No. 1. JV Xg df© Ho$ {ZînmXZ H$s {d{eï>VmE§ Performance Highlights for the Last 10 Years 02 2. à~§Y {ZXoeH$ Ed§ _w»` H$m`©nmbH$ A{YH$mar H$m A{^^mfU Managing Director and CEO Statement 03 3. gyMZm Notice 10 4. {ZXoeH$m| H$s [anmoQ>© Directors’ Report 26 5. à~§YZ-dJ© H$m {ddoMZ Ed§ {díbofU Management Discussion & Analysis 37 6. H$mnm}aoQ> A{êmgZ na [anmoQ>© Report on Corporate Governance 76 7. {Z`m_H$s boImnarjm [anmoQ>© Secretarial Audit Report 123 8. {Z`m_H$s AZwnmbZ [anmoQ>© Secretarial Compliance Report 127 9. ZB© ny±Or n`m©ßVVm Ho$ T>m±Mo Ho$ {Xem{ZX}em| Ho$ A§VJ©V àH$Q>rH$aU Disclosure under New Capital Adequacy Framework guidelines 129 10. EH$b VwbZ-nÌ Ed§ bm^-hm{Z boIm Standalone Balance Sheet and Profi t & Loss Account 130 11. g‘o{H$V VwbZ-nÌ Ed§ bm^-hm{Z boIm Consolidated Balance Sheet and Profi t & Loss Account 205 12. H$mn© ~¢H$ {g³¶w[aQ>rµO {b. (AZwf§Jr H§$nZr) Ho$ boIo Accounts of CorpBank Securities Ltd. (Subsidiary Company) 248 13. Zm_m§H$Z \$m_© Nomination Form 279 14. EZEgrEM A{YXoe NACH Mandate 281 15. àm°³gr ’$m‘© Proxy Form 283 ‘w»¶ {dÎmr¶ A{YH$mar Chief Financial Offi cer a{OñQ´>ma Ed§ eo¶a Registrar & Share Shri V. Muthukrishnan lr dr. _wÎmwH¥$îUZ A§VaU EO|Q> Transfer Agent Karvy Fintech Private Limited Company Secretary H$mdr© {\$ZQ>oH$ àm.{b. H§$nZr g{Md Karvy Selenium Tower B, S. K. Dash H mdr© gobo{Z`_ Qmda ~r. ßbmQ g§. Eg. Ho$. Xme 31 Ed§ 32, Plot No. 31 & 32, Statutory Central Auditors Jm{M~modbr, {dÎmr` {µObm Gachibowli, Financial District gm§{d{YH$ H|$Ðr` boIm narjH$ Nanakramguda, Serilingampally M/s Datta Singla & Co. ZmZH«$m_JwSm, go{aqbJån{„ ‘ogg© XÎmm qgJbm EÊS H§ . HYDERABAD–500 032 (Telangana) M/s A. K. Sabat & Co. h¡Xam~mX - 500 032 (Vob§JZm) ‘ogg© E. Ho . g~V EÊS H§ . Xya^mf… 040-67161500/67161514 Phone: 040-67161500/67161514 M/s Pramod & Associates ‘ogg© à_moX EÊS Egmo{gEQ²g \¡ Šg… 040- 23001153 Fax: 040-23001153 M/s Chandran & Raman ‘ogg© M§ÐZ EÊS> am_Z B©-‘ob: [email protected] E-mail: [email protected] ‘ogg© Eg. am_mZ§X Aæà EÊS> H§$. M/s S. Ramanand Aiyer & Co.

~¢H$ Ûmam Omar ~m±S> Ho$ {bE Q´>ñQ>r Trustees for Bond issued by Bank: AmB©S>r~rAmB© Q´>ñQ>r{en g{d©gog {b{_Q>oS> IDBI Trusteeship Services Limited EpŠgg Q´>ñQ>r g{d©gog {b{_Q>oS> Axis Trustee Services Limited E{e`Z {~pëS>¨J, {ZMbm Vb Asian Building, Ground Floor ê$~r Xygam Vb, SW The Ruby, 2nd Floor, SW 17, Ama. H$_mZr _mJ©, ~obmS>© EñQ>oQ> 17, R. Kamani Marg, Ballard Estate 29 goZmnVr ~mnV _mJ© 29 Senapati Bapat Marg _w~§B© - 400 001 MUMBAI – 400 001 XmXa npíM_ Dadar West Xya^mf : 022-40807000 Ph : 022 – 40807000 _w§~B© - 400 028 Mumbai – 400 028 \¡$Šg : 022-66311776/40807080 Fax : 022-66311776/40807080 022-62300442/62300426 Ph : 022-62300442/62300426 B©_ob : [email protected]; Email : [email protected]; Xya^mf : [email protected] [email protected] B©_ob : [email protected] Email : [email protected] do~gmBQ> : http://www.idbitrustee.co.in Website : http://www.idbitrustee.co.in do~gmBQ> : http://www.axistrustee.com Website : http://www.axistrustee.com

ANNUAL REPORT 2018-19 1 df© 2009-10 go 2018-19 VH$ ~¢H$ H$m {ZînmXZ Bank’s Performance from 2009-10 to 2018-19 (am{e ` H$amo‹S>> _| Amount ` in crores) 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 ny±Or Capital 143.44 148.13 148.13 152.91 167.54 167.54 204.50 229.41 333.11 1198.84 Ama{jV {Z{Y`m± Ed§ A{Yeof Reserves & Surplus 5631.43 6989.68 8127.80 9412.78 9917.56 10316.94 11161.39 12482.53 10512.74 15366.02 H$mamo~ma _mZX§S> Business Parameters O_mam{e`m± Deposits 92733.67 116747.50 136142.20 166005.45 193393.01 199345.82 205170.84 220559.62 183315.94 184567.84 A{J«_ Advances 63202.56 86850.40 100469.02 118716.65 137086.30 145066.03 140322.24 140356.79 119868.83 121251.20 {Zdoe Investments 34522.63 43452.74 47474.63 58164.49 66191.21 63412.28 63280.64 64072.98 70349.75 59979.19 Hw$b Am` Total Income 8481.03 10459.62 14510.40 16942.02 19606.29 21038.91 21146.40 22561.78 19941.41 17494.69 ì`` {H$`m J`m ã`mO Interest Expended 5084.35 6195.51 9870.89 11908.23 14174.88 15486.10 15171.78 15020.46 12790.10 10114.16 n[aMmbZJV ì`` Operating Expenses 1259.95 1641.71 1783.55 1996.79 2392.01 2525.36 2879.60 3101.79 3200.88 3486.06 n[aMmbZJV bm^ Operating Profi t 2136.73 2622.40 2855.97 3037.00 3039.40 3027.45 3095.02 4439.53 3950.41 3894.46 {Zdb bm^ Net Profi t 1170.25 1413.27 1506.04 1434.67 561.72 584.26 -506.48 561.21 -4053.94 -6332.98 _w»` AZwnmV Key Ratios ny±Or n`m©ßVVm AZwnmV (%) #12.90 #11.94 #11.38 ##12.21 ##11.80 ##10.88 ##11.90 ##NA ##NA Capital Adequacy Ratio (%) 15.00 ##14.11 ##13.00 ##12.33 ###11.64 ###11.09 ###10.56 ###11.32 ###9.23 ###12.30 Am¡gV AmpñV`m| na à{Vbm^ (%) Return on Average Assets (%) 1.28 1.21 1.06 0.88 0.29 0.28 - 0.23 0.23 -1.67 -3.14 B©pŠdQ>r na à{Vbm^ (%) Return on Equity (%) 20.26 20.70 18.20 16.27 5.72 5.68 - 4.64 4.66 -36.50 -46.21 à{V eoà AO©Z (`) Earnings per Share (`) $81.58 $98.50 $101.67 $96.74 $35.75 $$6.97 $$- 5.48 $$5.17 $$-35.30 $$-30.06 à{V eoà ~hr _yë` (`) Book Value per Share (`) $402.60 $497.62 $558.69 $645.76 $601.95 $$125.16 $$110.94 $$110.82 $$65.12 $$27.63 Am¡gV H$m`©erb ny§Or _| EZAmB©E_ (ã`mO A{O©V H$aZodmbr AmpñV`m±) % 2.85 2.48 2.29 2.10 2.07 2.06 2.12 2.32 3.05 NIM to Average Working Funds(Interest earning assets) 2.41 Hw$b Am` _| ã`mOoVa Am` (%) Non-interest income to total 12.09 10.29 9.49 8.40 7.05 8.21 13.70 11.60 10.70 income (%) 16.95 gH$b A{J«_m| _| gH$b EZnrE (%) Gross NPA to Gross 0.91 1.26 1.72 3.42 4.81 9.98 11.70 17.35 15.35 Advances (%) 1.02

{Zdb A{J«_m| _| {Zdb EZnrE (%) 0.46 0.87 1.19 2.32 3.08 6.53 8.33 11.74 5.71 Net NPA to Net Advances (%) 0.31 bm^m§e Dividend (`) $16.50 $20.00 $20.50 $19.00 $6.75 $$1.40 $$0.00 $$0.00 $$0.00 $$0.00

# ~ogb I Ho$ AZwgma As per Basel I. $$ A§{H$V _yë` à{V eo`a `2/- hoVw $$ For FV `2/- per share ## ~ogb II Ho$ AZwgma As per Basel II. $ A§{H$V _yë` à{V eo`a `10/- hoVw $ For FV `10/- per share ### ~ogb III Ho$ AZwgma As per Basel III.

2 à~§Y {ZXoeH$ Ed§ grB©Amo H$m gÝXoe FROM THE MANAGING DIRECTOR AND CEO

{à` eo`aYmaH$mo§, Dear Shareholders, _wPo Iwer h¡ {H$ _wPo à~§Y {ZXoeH$ Ed§ grB©Amo Ho ê$n _o§ H$m°nmo©aoeZ ~¢H$ H$m I am glad to have the opportunity to lead Corporation Bank ZoV¥Ëd H$aZo H$m Adga {_bm Am¡a MwZm¡VrnyU© g_` _o§ Bg _hmZ ~¢H$ Ho ZoV¥Ëd as MD & CEO and I thank the Government of India for H$s {Oå_oXmar gm¢nZo Ho {bE _¢ ^maV gaH$ma H$mo YÝ`dmX XoVr hy§& h_mao nmg entrusting the responsibility to head this esteemed Bank in AnZo g^r {hVYmaH$mo§ H$m _mZ ~‹TmZo Am¡a h_mar ß`mar 113 dfr©` g§ñWm Ho challenging times. We have the responsibilities to make the Bank modern and techno savvy, to increase the value for all its {nNbo Jm¡ad H$mo dmng bmZo Ho {bE ~¢H$ H$mo AmYw{ZH$ Am¡a VH$ZrH$s gj_ stakeholders and also to bring back the past glory to our beloved ~ZmZo H$s {Oå_oXm{a`m§ h¢& 113 year-old institution. {dÎmr` df© 2018-19 Ho Xm¡amZ AmnHo ~¢H$ Ho {ZînmXZ Ho _w»` {~ÝXwAmo§ It gives me great pleasure to place before you the highlights of H$mo AmnHo g_j aIZo _o§ _wPo ~ohX Iwer hmo ahr h¡& AmnHo ~¢H$ Ûmam A{O©V your Bank’s performance during the financial year 2018-19. CnbpãY`mo§ Am¡a H$s J`r nhbmo§ H$m {ddaU g§b¾ dm{f©H$ {anmoQ© _o§ àXmZ Details of the achievements and initiatives by your Bank are {H$`m J`m h¡& provided in the enclosed Annual Report. Economic Scenario: {dÎmr` n{aX¥í` : As per the provisional estimates of Central Statistics Office H|$Ðr` gm§p»`H$s H$m`m©b` (grEgAmo) Ho$ AZ§{V_ AZw_mZmo§ Ho$ AZwgma, (CSO), the Indian Economy is estimated to grow at 7.0% in ^maVr` AW©ì`dñWm H$m {dÎm df© 2018-19 _o§ 7.0% H$s d¥{Õ H$m AZw_mZ the financial year 2018-19 as against 7.2% growth registered h¡, O~{H$ {nNbo df© Bgr Ad{Y _o§ 7.2% d¥{Õ XO© H$s JB© Wr& {nNbo in the corresponding period last year. Despite a marginal df© _o§ gr_m§V _§Xr Ho ~mdOyX, ^maV Zo Xw{Z`m _o§ g~go VoOr go \¡ bVr à_wI slowdown over the last year, India has cemented its credentials as the world’s fastest expanding major economy in the world. AW©ì`dñWm Ho ê$n _o§ AnZr gmI H$mo _O~yV {H$`m h¡& AmJo ~‹TVo hwE, InV Going forward, the economy is expected to display a better Am¡a {ZOr {Zdoe _o§ ~‹TmoÎmar H$mo XoIVo hwE AW©ì`dñWm _o§ ~ohVa àXe©Z H$s performance, considering the pick-up in consumption and Cå_rX h¡& BgHo Abmdm, {dÎm df© 20 Ho {bE H$_ _wÐmñ\ r{V H$s Cå_rX Zo private investments. Besides, a low inflation expectation for Ama~rAmB© Ûmam _m¡{ÐH$ Za_r Ho {bE Am¡a OJh ~ZmB© h¡, {Oggo {dH$mg H$s FY20 has created further room for monetary easing by the RBI, J{V H$mo g_W©Z {_bZo H$s Cå_rX h¡& which is expected to support the growth momentum.

ANNUAL REPORT 2018-19 3 Ohm§ VH$ ~¢qH$J joÌ H$m g§~§Y h¡, ~¢H$mo§ H$m ì`mnH$ ê$n go gwYma H$aZm As far as banking sector is concerned, reforming banks gaH$ma H$m EH$ _hËdnyU© CÔoí` h¡& gwYmamo§ Ho {hñgo Ho ê$n _o§, gaH$ma Am¡a comprehensively is an important objective of the Government. As part of Reforms, the Governement and Public Sector gmd©O{ZH$ joÌ Ho ~¢H$ (nrEg~r) g§`wº ê$n go g§d{Y©V nhw§M Am¡a godm Banks (PSBs) are jointly committed to launch “PSB Reforms CËH¥$îQVm (B©EEgB©) Ho {bE ""nrEg~r gwYma EOo§Sm'' bm°ÝM H$aZo Ho {bE Agenda” for Enhanced Access and Service Excellence (EASE). à{V~Õ h¢& gwYma EOo§Sm _o§ gmd©O{ZH$ joÌ Ho ~¢H$mo§ H$s N{d ~XbZo Ho {bE The Reforms Agenda addresses key functional areas in public CgHo à_wI H$m`m©Ë_H$ joÌmo§ O¡go g_JŒ àemgZ, {ddoH$nyU© CYma, Omo{I_ sector banks, viz., overall governance, prudent lending, risk à~§YZ, àm¡Úmo{JH$s g§Mm{bV ñdÀN Am¡a ñ_mQ© ~¢qH$J, _mZd g§gmYZ Am{X management, technology driven clean & smart banking, human resources etc. to transform the public sector banks landscape. _o§ ~Xbmd em{_b h¢| & Insolvency and bankruptcy code (IBC) has also provided a {Xdmbm Am¡a {Xdm{b`mnZ g§{hVm (AmB©~rgr) Zo ~¢qH$J joÌ Ho {bE EH$ time-bound resolution framework for the banking sector. IBC g_`~Õ g_mYmZ àUmbr àXmZ H$s h¡& AmB©~rgr Zo ~¢H$mo§ H$mo ~‹So n¡_mZo has helped the banks to expedite the Recovery process leading na EZnrE g_mYmZ Am¡a dgybr Ho {bE dgybr à{HŒ `m H$mo VoO H$aZo _o§ _XX to large-scale NPA resolution and recovery. H$s h¡& Banks are also taking signiﬁ cant steps towards digitalisation and are driving technology enabled banking. The mobile- ~¢H$ ^r {S{OQbmBOoeZ H$s {Xem _o§ _hËdnyU© H$X_ CRm aho h¢ Am¡a gj_ based payments are revolutionising the payment landscape ~¢qH$J VH$ZrH$ AnZm aho h¢& _mo~mBb AmYm{aV ^wJVmZ Xoe Ho ^wJVmZ in the country. Also, the launch of digital platforms viz. psbloansin59minutes.com, TReDS, Udyamimitra etc., helps to n{aX¥í` _o§ HŒ m§{VH$mar ~Xbmd bm aho h¢& BgHo Abmdm, {S{OQb ßboQµ\ m°_© drive digital lending to reach last mile. O¡go psbloansin59minutes.com, Q>rAmaB©S>rEg, CÚ_r{_Ì Am{X H$s ewéAmV {S{OQb CYmar H$mo {eIa VH$ nhw§MmZo _o§ ghm`Vm H$a ahr h¡& The reform measures are creating a strong foundation for improving the performance of banking sector. With the capital gwYmamË_H$ Cnm` ~¢qH$J joÌ Ho àXe©Z H$mo ~ohVa ~ZmZo Ho {bE EH$ _O~yV infusion by the Government of India and expected improvement in their ﬁ nancial performance, the banking sector is expected to AmYma V¡`ma H$a aho h¢& ^maV gaH$ma Ûmam ny§Or bJmZo Am¡a {dÎmr` àXe©Z _o§ position better in the days ahead. gwYma H$s AnojmAmo§ Ho gmW, ~¢qH$J joÌ H$mo AmZo dmbo {XZmo§ _o§ ~ohVa pñW{V Performance Highlights: H$s Cå_rX h¡& The major highlights of your Bank’s performance during {ZînmXZ _w»`m§e : 2018-19 are; {dÎmr` df© 2018-19 Ho Xm¡amZ AmnHo ~¢H$ Ho {ZînmXZ _w»`m§e {ZåZ{b{IV Business Growth: h¢ : Total Business of the Bank has reached `3,05,819.05 crore ì`mnma d¥{Õ : as on 31st March 2019 as against `3,03,184.79 crore as on 31 _mM© 2018 H$mo `3,03,184.79 H$amo‹S µHo _wH$m~bo 31 _mM© 2019 H$mo 31st March 2018, which consists of Deposits `1,84,567.84 ~¢H$ H$m Hw b H$mamo~ma `3,05,819.05 H$amo‹S {Og_o§ 31 _mM© 2019 VH$ crore and total Advances `1,21,251.21 crore as on 31st March Hw b O_m `1,84,567.84 H$amo‹S Ed_² A{JŒ_ `1,21,251.21 H$amo‹S h¢ & 2019. df© Ho Xm¡amZ, ~¢H$ Zo WmoH$ O_m H$mo H$_ H$aZo Am¡a IwXam O_m Ho$ gmW During the year, the Bank concentrated on reducing the Bulk Bgo ~XbZo na Ü`mZ Ho§ {ÐV {H$`m& WmoH$ O_m H$m ñVa 31 _mM© 2018 Ho$ deposits and replacing it with retail deposits. The level of Bulk deposit has come down from 24.67% as at 31.03.2018 to 24.67% go KQ H$a 31 _mM© 2019 H$mo 23.95% VH$ Am J`m h¡& 23.95% as on 31.03.2019. 31 _mM© 2019 H$mo {dÎm df© Ho Xm¡amZ ~¢H$ Ho ~MV ImVm| H$m eof The balance in saving accounts stood at `42,106.72 crore and `42,106.72 H$amo‹S Ed_² Mmby ImVm eof `16,199.76 H$amo‹S Current Account stood at `16,199.76 crore as on 31st March ahr & 2019. Hw b O_m _o§ H$mgm H$s {hñgoXmar 31 _mM© 2018 Ho 29.52% Ho _wH$m~bo Share of CASA in total deposit improved to 31.59% as on 31 _mM© 2019 H$mo ~‹TH$a 31.59% hmo J`r & 31.03.2019 as compared to 29.52% as on 31.03.2018.

4 AmpñV JwUdÎmm Ed§ àmdYmZ : Asset Quality and Provisioning: During the year the severe pressure on quality of assets and the df© Ho Xm¡amZ n{ag§n{Îm`mo§ H$s JwUdÎmm na J§^ra X~md Am¡a AmnHo$ ~¢H$ _o§ rise of NPA in your Bank was not an isolated case but part of EZnrE _o§ d¥{Õ EH$ AbJ _m_bm Zht Wm, ~pëH$ `h nyao CÚmoJ n{aX¥í` H$m overall Industry phenomenon. The Gross NPA of your Bank {hñgm Wm& AmnHo ~¢H$ H$m gH$b EZnrE 31.03.2018 H$mo `22,213.44 decreased from `22,213.44 crore (17.35%) as at 31.03.2018 H$amo‹S (17.35%) go KQ H$a 31.03.2019 H$mo `20,723.68 H$amo‹S to `20,723.68 crore (15.35%) as at 31.03.2019 and Net NPAs (15.35%) Am¡a Bg Ad{Y Ho Xm¡amZ ZoQ EZnrE `14,077.02 H$amo‹S decreased from `14,077.02 crore (11.74%) to `6,926.64 crore (11.74%) go KQ H$a `6,926.64 H$amo‹S (5.71%) hmo J`m & (5.71%) during this period. gH$b EZnrE Ho g§~§Y _o§ àmdYmZ H$daoO AZwnmV 31.03.2019 H$mo The provision coverage ratio as on 31.03.2019 is 83.30% with 83.30% h¡, Omo {XZm§H$ 31.03.2018 H$mo 63.65% Wm& respect to Gross NPA as against 63.65% as at 31.03.2018. The focus during the year was on recovery of NPAs. The Bg df© Ho Xm¡amZ \ moH$g EZnrE H$s dgybr na Wm& H$_©Mm{a`mo§ Zo MwZm¡Vr H$mo employees rose to the challenge and your Bank could effect ñdrH$mam Am¡a AmnHo ~¢H$ Zo {ddoH$nyU© ~Å>o ImVmo§ _o§ {nNbo {dÎmr` df© _o§ a recovery in Prudential written-off accounts to the tune of `318.06 H$amo‹S H$s VwbZm _o§ Bg df© `706.88 H$amo‹S H$s dgybr H$aZo _o§ `706.88 crore as compared to ` 318.06 crore in the previous g\ b ahm & fi nancial year. AmnH$m ~¢H$ AmZo dmbo dfmoª Ho Xm¡amZ MyH$mo§ H$s ~‹TVr àd¥{Îm H$s à^mdr Your Bank will continue its focus and rigorous efforts through amoH$Wm_ Ho {bE MwñV G$U {ZJamZr Am¡a EZnrE dgybr àUmbr Ho _mÜ`_ go vibrant credit monitoring and NPA recovery system to arrest AnZm \ moH$g Am¡a H$R>moa à`mg Omar aIoJm& effectively the rising trend in slippages during the coming years. AÝ` _w»` {ZînmXZ q~Xw : Other key performance indicators: ` ~¢H$ H$s Hw b Am` {dÎm df© Ho Xm¡amZ `2,446.71 H$amo‹S go KQ H$a Total Income of the Bank decreased by 2,446.71 crore during the fi nancial year to reach `17,494.70 crore. `17,494.70 H$amo‹S nhw±M J`r& Interest Spread increased by `670.25 crore (13.85%) during df© Ho Xm¡amZ ã`mO àgma _o§ Ÿ`670.25 H$amo‹S (13.85%) H$s d¥{Õ hwB©& the year. Non-Interest income decreased by `441.01 crore 19.07% H$s ZH$mamË_H$ d¥{Õ Xa Ho gmW J¡a-ã`mO Am` `441.01 H$amo‹S with a negative growth rate of 19.07% whereas non-interest KQ JB©, O~{H$ J¡a-ã`mO ì`` _o§ 8.91% H$s d¥{Õ hwB©& ã`mO ñàoS _o§ d¥{Õ expenditure increased by 8.91%. The increase in Interest Spread EZgrEbQr ImVmo§ Am¡a CÞ`Z {H$E JE ImVmo§ _o§ Aàmß` ã`mO _o§ ZH$X dgybr is on account of cash recovery in unrealised interest in NCLT Ho H$maU h¡& accounts and upgraded accounts. Cost of deposits of the Bank came down from 5.74% for the df© 2017-18 Ho 5.74% Ho _wH$m~bo O_m H$s H$s_V H$_ hmo H$a df© year 2017-18 to 5.40% for the year 2018-19. 2018-19 Ho {bE 5.40% hmo J`r & Operating Profi t of the Bank stood at `3,894.47 crore during ~¢H$ H$m n{aMmbZ bm^ df© 2018-19 Ho Xm¡amZ `3,894.47 H$amo‹S na ahm& the year 2018-19. However, with increased provisioning on hmbm§{H$, EZnrE Ho àmdYmZ _o§ d¥{Õ Ho gmW, ~¢H$ Zo df© 2018-19 Ho$ {bE NPAs, the Bank posted net loss of `6,332.98 crore for the year `6,332.98 H$amo‹S H$m ewÕ KmQm XO© {H$`m& 2018-19. The Bank’s consolidated Net worth stood at `16,651.45 crore 31.03.2019 H$mo ~¢H$ H$m g_o{H$V ZoQdW© `16,651.45 H$amo‹S Wm& as at 31.03.2019.

àmW{_H$Vm àmßV joÌmo§ H$mo G$U : Priority Sector Lending: ~¢H$ Zo àmW{_H$Vm joÌ Ho A{JŒ_mo§ Am¡a CgHo Cn-joÌmo§ Ho VhV {Z`m_H$ The Bank has achieved regulatory target under priority sector bú` hm{gb {H$`m h¡& Hw b àmW{_H$Vm goŠQa G$U 31.03.2019 Ho AZwgma advances and its sub-sectors. Total Priority Sector advances stood at `63,247 crore as on 31.03.2019 which works out `63,247 H$amo‹S na Wm, Omo g_m`mo{OV ZoQ ~¢H$ HŒo {SQ (ANBC) Ho 40% to 43.82% of Adjusted Net Bank Credit (ANBC) as against Ho {Z`m_H$ bú` Ho gmnoj 43.82% h¡& {nNbo dfmoª H$s Vah, AmnHo ~¢H$ the regulatory target of 40%. As in the past years, your Bank Zo {dÎm df© 2018-19 Ho Xm¡amZ a~r Am¡a Iar\ XmoZmo§ _m¡g_mo§ _o§ H¥${f A{JŒ_mo§ conducted special campaigns during Financial Year 2018-19 to H$mo ~‹TmZo Ho {bE {deof A{^`mZ MbmE& BgHo Abmdm, AmnHo ~¢H$ Zo H¥${f augment agriculture advances in both Rabi and Kharif seasons.

ANNUAL REPORT 2018-19 5 g_wXm` H$s {d{eîQ Amdí`H$VmAmo§ H$mo nyam H$aZo Ho {bE joÌ {deof `moOZmE§ Furthermore, your Bank introduced tailor-made area specifi c ewê H$s& amoOJma Am¡a {dH$mg H$s g§^mdZm H$mo XoIVo hwE E_EgE_B© joÌ H$mo schemes to cater to the specifi c needs of the farming community. A number of initiatives was taken by your Bank to support g_W©Z XoZo Ho {bE AmnHo ~¢H$ Ûmam H$B© nhb H$s JB© & MSME sector, given its potential to generate employment and growth. gyú_, bKw Ed§ _Ü`_ CÚ_: ~¢H$ A~ 59 {_ZQ> nmoQ>©b, EH$ Am°ZbmBZ ~mOma, Omo `1 H$amo‹S> VH$ Ho$ Micro, Small & Medium Enterprises : E_EgE_B© F$Um| Ho$ g¡Õm§{VH$ AZw_moXZ 59 {_ZQ> _| H$aZo _| gj_ H$aoJm, na Bank has on-boarded loans in 59 minutes portal, an online Am MwH$m h¡& OrEgQ>r n§OrH¥$V E_EgE_B© CYmaH$Vm©Am| Ho$ g^r F$U àñVmd marketplace, which will enable In Principle approval for MSME loans up to INR 1 Crore in 59 minutes. All credit proposals Bg nmoQ>©b Ho$ _mÜ`_ go àmá {H$ò Om aho h¢& of GST registered MSME borrowers are routed through this ~¢H$ Zo Ama~rAmB© Ho$ {Xem{ZX}em| Ho$ AZwgma dñVw d godm H$a Ho$ VhV portal. n§OrH¥$V E_EgE_B© CYmaH$Vm©Am| H$mo VËnaVm go amhV àXmZ H$s h¡, {Oggo Bank has proactively provided relief for MSME Borrowers N>moQ>r g§ñWmAm| Ho$ {bE F$U H$s {H$ñVm| H$mo MwH$mZo _| AmgmZr hmo ahr h¡ {OÝh| registered under Goods and Services Tax (GST) as per AnZo ^wJVmZ Xm{`Ëdm| H$mo nyam H$aZo _| H${R>ZmB© hmoVr h¡ & RBI guidelines, thereby facilitating easy repayment of loan instalments for smaller entities facing diffi culty in meeting their ~¢H$ Zo Ama~rAmB© Ûmam àXmZ H$s JB© EH$ ~ma nwZgªaMZ gw{dYm Ho$ AZwgma repayment obligations. nmÌ E_EgE_B© CYma ImVm| H$mo nwZgªa{MV {H$`m h¡& Bank has also restructured eligible MSME borrowal accounts as E_EgE_B© _§Ìmb` Ûmam Omar {H$E JE {Xem-{ZX}em| Ho$ g§X^© _|, ~¢H$ Zo per one-time restructuring facility provided by RBI. {dÎmr` df© 2018-19 Ho$ Xm¡amZ nmÌ E_EgE_B© Ho$ {bE 2% ã`mO amhV In terms of guidelines issued by Ministry of MSME, Bank has H$m Xmdm {H$`m h¡& claimed 2% interest subvention for eligible MSMEs during the IwXam F$U : fi nancial year 2018-19. dV©_mZ {dÎm df© 2019-20 Ho$ {bE IwXam F$Um| na A{YH$ Ü`mZ {X`m Om Retail Lending : ahm h¡& ~¢H$ AnZo dV©_mZ EbEnrEg n¡Ho$O, Omo A^r IwXam F$U AmdoXZm| More focus is being given to Retail Lending for the current FY 2019-20. Bank is going to upgrade its present LAPS package, H$mo àg§ñH¥$V H$aZo Ho$ {bE Cn`moJ _| AmVm h¡, H$mo AJbo 2-3 _hrZm| Ho$ which is used to process retail loan applications at present, by AÝXa E§S>-Qy>-E§S> {S>OrQ>mB©OoeZ Ho$ gmW CÞV H$aZo Om ahm h¡& `h h_| Q>Z© implementing End to End Digitisation (Loan Origination AamC§S> Q>mB©_ H$mo H$m\$s hX VH$ H$_ H$aZo Am¡a JwUdÎmm Ed§ {ZJamZr aIZo System) shortly within 2-3 months. This will help us to reduce _| _XX H$aoJm& the turn around time to great extent and also will help to maintain quality and monitoring. {dÎmr` g_mdoeZ : Financial Inclusion: ^maV gaH$ma Zo ^maVr` {aµOd© ~¢H$ H$s {dÎmr` g_mdoeZ `moOZm Ho VhV Government of India has allotted 2291 villages grouped into 894 ~w{Z`mXr ~¢qH$J gw{dYmE§ àXmZ H$aZo Ho {bE nrE_OoSrdmB© Ho VhV 23 amÁ`mo§ Sub Service Areas (SSAs) spread across 23 states under PMJDY _o§ \¡ bo 894 g~ g{d©g E{a`m (EgEgE) _o§ 2291 Jm§dmo§ H$mo Am~§{QV {H$`m for providing basic banking facilities under Financial Inclusion h¡& AmnHo$ ~¢H$ Zo 269 EgEgE na emIm Ho _mÜ`_ go Am~§{QV Jm§dmo§/ Plan of Reserve Bank of India. Your Bank has provided banking EgEgE _o§ ~w{Z`mXr ~¢qH$J Tm§Mm àXmZ {H$`m h¡& eof 625 g~ g{d©g E{a`m infrastructure at the allotted villages/SSAs through brick & mortar branch at 269 SSAs. In the remaining 625 Sub Service _o§ ~¢H$ {_Ì ~ZmH$a ~w{Z`mXr ~¢qH$J Tm±Mo H$mo àXmZ {H$`m Om ahm h¡& 625 Areas (SSAs) banking infrastructure is provided by engaging nrE_OoSrdmB© ñWmZmo§ Ho Abmdm, AmnHo$ ~¢H$ Zo J¡a-nrE_OoSrdmB© ñWmZmo§ _o§ Bank Mitras. Apart from the 625 PMJDY locations, your Ohm§ ^r CZH$s godmE§ Amdí`H$ h¢, 127 ~¢H$ {_Ì aIo h¢ & ~¢H$ Zo h_mao Bank has engaged 127 Bank Mitras in Non-PMJDY locations {bE Am~§{QV 3 Ano{jV {Obmo§ _o§ ~¢qH$J AmCQboQ g{hV emImE§ Imobr wherever services of Bank Mitras are needed. Your Bank has h¢& AmnHo$ ~¢H$ Zo g_ñV ~¢H$ {_Ìmo§ H$mo geº, EgQrŠ`ygr à_m{UV, 1.5.1 opened branches including banking outlets in 3 aspirational districts allotted to us. Your Bank has provided robust, STQC dg©Z go `wº _mBHŒ mo EQrE_ CnbãY H$admE h¢ Am¡a ò g^r AÀNm H$m_ certifi ed, 1.5.1 version compliant Micro ATMs to all the Bank H$a aho h¢& {nZ noS Ho gmW _mBHŒ mo EQrE_ Ûmam g^r ~¢H$ {_Ì Am°Z bmBZ, Mitras and all are functioning well. The Micro ATMs along A§Va g§Mm{bV, AmYma Ed§ {nZ AmYm{aV boZXoZmo§ H$mo g§^mbZo _o§ g_W© h¢& with pin pad have enabled all Bank Mitras to perform online,

6 AmnHo$ ~¢H$ Zo ~¢H$ {_Ì H$s g^r J{V{d{Y`mo§ H$s {ZJamZr Ho {bE 12 A§Mb interoperable, Aadhaar & pin based transactions. Your Bank has H$m`m©b`mo§ _o§ {dÎmr` g_mdoeZ n`©dojH$ {Z`wº {H$E h¢& appointed Financial Inclusion Supervisors at 12 Zonal Offi ces to monitor all the activities of Bank Mitras gm_m{OH$ gwajm `moOZm`| : Social Security Schemes : ^maV gaH$ma Ûmam gm_m{OH$ gwajm `moOZmAm| H$mo {XE JE _hËd H$mo Ü`mZ _| Considering the importance provided by the Govt. of India aIVo hþE, ~¢H$ Zo {dÎm df© 2018-19 Ho$ Xm¡amZ àYmZ _§Ìr OrdZ Á`mo{V ~r_m on the Social Security Schemes, Bank has conducted special `moOZm (nrE_OoOodmB©), àYmZ _§Ìr gwajm ~r_m `moOZm (nrE_Eg~rdmB©) Ed§ campaigns during the FY 2018-19 to promote Pradhan Mantri AQ>b n|eZ `moOZm (EnrdmB©) H$mo àmoËgm{hV H$aZo hoVw {deof A{^`mZ Mbmò& Jeevan Jyoti Bima Yojana [PMJJBY}, Pradhan Mantri Suraksha df© Ho$ Xm¡amZ, ~¢H$ Zo nrE_OoOodmB© Ho$ A§VJ©V 61244, nrE_Eg~rdmB© Ho$ Bima Yojana [PMSBY] and Atal Pension Yojana [APY]. During A§VJ©V 1085044 ZE n§OrH$aU àmá {H$ò& ~¢H$ Zo EnrdmB© Ho$ A§VJ©V ^r the year, Bank had fresh enrolments of 61,244 under PMJJBY 37,312 n§OrH$aU àmá {H$ò& and 1,50,761 under PMSBY apart from renewals of 4,00,295 under PMJJBY and 10,85,044 under PMSBY. Bank also ZE CËnmXmo§ H$s ewéAmV : enrolled 37,312 under APY during the year FY2018-19. New Products launched: • ~¢H$ Zo _m¡OyXm B§QaZoQ ~¢qH$J H$mo EH$ g_H$mbrZ ZE B§QaZoQ ~¢qH$J • Bank has replaced the existing Internet Banking with a AWm©V "E\ B©~rE - {\ ZoH$b B©-~¢qH$J EßbrHo eZ' Ho gmW ~Xb contemporary New Internet Banking viz., “FEBA”- {X`m h¡ {Og_o§ H$B© Vah H$s {deofVmE± Am¡a gw{dYmE§ h¢& Eµ\ B©~rE Finacle e-Banking Application with a host of added 10.09.2018 go JŒmhH$mo§ Ho {bE CnbãY H$am`m J`m h¡& AZwHy bZ `mo½` features and facilities. FEBA has been made available to SoñH$-Qm°n Q—m§OoŠeZ {b{_Q, goë\ -a{OñQ—oeZ, EpßbHo eZ Ho Ëd{aV customers with effect from 10.09.2018. Customizable Cn`moJ Ho {bE _mo~mBb QmoH$Z Eµ\ B©~rE H$s Hw N à_wI {deofVmE§ h¢& desk-top transaction limit, self-registration, Mobile Token for quick access of the application are some of the key ZdrZ nhb : features of FEBA. • ~¢H$ H$m nyU©V: Z`m _mo~mBb ~¢qH$J Eßn H$m°n© B©‹O EÊS—moBS Am¡a New Initiatives: AmB©AmoEg XmoZmo§ ßboQ\ m_moª Ho {bE Omar {H$`m J`m& H$m°n© B©µO YZam{e • Bank’s fully revamped Mobile Banking Solution CorpEASE ñWmZm§VaU, {~b ^wJVmZ, O_m ImobZo Am¡a MoH$ ~wH$ AZwamoY, nmg~wH$ was rolled out for both Android and iOS platforms. à~§YZ, NwÅr H$s OmZH$mar Am{X O¡go ~¢qH$J H$m`moª _o§ gh`moJ H$a JŒmhH$ CorpEASE collaborates a host of banking operations like H$mo CgH$s gw{dYm Ho g_` Am¡a ñWmZ na ~¢qH$J boZXoZ H$aZo _o§ gj_ funds transfer, bill payment, deposit opening & closure, cheque book request, passbook management, holiday ~ZmVm h¡& AmdoXZ A§JŒoOr, qhXr Am¡a AÝ` AmR ^maVr` ^mfmAmo§ - information etc., enabling the customer to do banking H$Þ‹S, V{_b, VobwJw, _b`mb_, _amRr, JwOamVr, n§Om~r Am¡a C{‹S`m transactions at the time and location of his convenience. The _o§ CnbãY h¡& ~¢H$ Zo JŒrZ {nZ [Am°ZbmBZ So{~Q H$mS© {nZ OoZaoeZ] H$s application is available in English, Hindi and eight other gw{dYm ^r ewê H$s h¡, Am¡a JŒmhH$mo§ H$mo CZH$s µOê$aV Ho AZwgma AnZo Indian languages - Kannada, Tamil, Telugu, Malayalam, So{~Q H$mS© H$mo ãbm°H$/AZãbm°H$ H$aZo H$s gw{dYm Xr JB© h¡& Marathi, Gujarati, Punjabi and Oriya. The Bank has also introduced the features of Green Pin [online debit card pin • JŒmhH$mo§ Ho AZw^d Am¡a gw{dYm H$mo ~ohVa H$aZo Ho {bE, Mmby ImVo generation], and a facility for customers to block/unblock ImobZo Ho {bE Kaoby JŒmhH$mo§ Ho {bE ~¢H$ Zo bmBd ""Q>¡~boQ> ~¢qH$J'' their debit cards as per their need. H$s ewéAmV H$s & JŒmhH$ à_mUrH$aU B©Ho dmB©gr Ho _mÜ`_ go {H$`m • To enhance customer experience and convenience, the Bank went live on “TABLET Banking’’ for Domestic customers OmVm h¡ Am¡a {ddaUmo§ H$mo ñdMm{bV ê$n go H$moa ~¢qH$J g_mYmZ _o§ for opening running accounts. Customer authentication is AÚVZ {H$`m OmVm h¡& done through eKYC and the details are parsed and updated in Core Banking Solution automatically. grEgAma Ed§ ge{ºH$aU nhb : CSR and Empowerment Initiatives: 1. H$m°anmoaoeZ ~¢H$ BH$moZm°{_H$ Sodbn_o§Q µ\ mC§SoeZ (gr~rB©S>rE\$) EH$ 1. The Corporation Bank Economic Development J¡a-bm^H$mar Am{W©H$ g§JRZ Q—ñQ h¡, Omo H$m°nmo©aoQ {_eZ Ho gmW Foundation (CBEDF)® a non-profi t economic outfi t Trust gm_m{OH$ Xm{`Ëd H$mo nyam H$aZo Ho AnZo CÔoí`mo§ H$m nmbZ H$a ahm has been pursuing its objectives of fulfi lling social obligation h¡& ~¢H$ H$s g^r grEgAma J{V{d{Y`m± gr~rBSrE\ Ho VËdmdYmZ _o§ in tune with corporate mission. All CSR activities of the

ANNUAL REPORT 2018-19 7 g§Mm{bV H$s OmVr h¢& gr~rB©SrE\ Ho _mÜ`_ go df© 2018-19 Ho Bank are conducted under the aegis of CBEDF. Financial Xm¡amZ gm_m{OH$ gamoH$mamo§ H$s {d{^Þ n{a`moOZmAmo§ Ho {ZînmXZ Ho {bE grants to the extent of `371.65 lakhs were disbursed for execution of various projects of social concerns during the ` 371.65 bmI H$s {dÎmr` AZwXmZ am{e H$m {dVaU {H$`m J`m& AÝ` year 2018-19 through CBEDF. Amongst others, CBEDF Ho gmW gr~rB©SrE\ Zo {dÎm df© 2018-19 Ho Xm¡amZ {ZåZ{b{IV implemented following major CSR projects during à_wI grEgAma n{a`moOZmAmo§ H$mo nyam {H$`m : FY 2018-19. 2. For the welfare of underprivileged, through “CorpKiran”, 2. “ ” H$m°n© {H$aU Ho _mÜ`_ go d§{MVmo§ Ho H$ë`mU Ho {bE, ~¢H$ Zo Bank granted `22.29 lakhs to various Institutions 2018-19 Ho Xm¡amZ {d{^Þ g§ñWmZmo§ H$mo `22.29 bmI énò {XE& during 2018-19. The major activities included providing à_wI J{V{d{Y`mo§ _o§ Jar~ ñHy br ~ÀMmo§ Am¡a AZmWmb`, d¥Õml_, Bench, Desk, Cupboards, Computers, Water purifi er, ~oghmam Kamo§ Ho Am{lVmo§ H$mo ~o§M, SoñH$, Amb_mar, H§ ß`yQa, Ob Pedestral Fans etc., to poor school children and inmates emoYH$, n¡SñQb n§Io Am{X àXmZ H$aZm, emar{aH$ Am¡a _mZ{gH$ ê$n go of orphanages, old age homes, destitute homes, helping physically and mentally challenged people, Ambulance {dH$bm§J bmoJmo§ H$s _XX H$aZm, H$ë`mU_H$amo{V (EZOrAmo), _oaR H$mo to Kalyanam Karoti (NGO), Meerut and three dialysis Eå~wbo§g Am¡a {e_moJm B§ñQrQ²æyQ Am°\ _o{SH$b gmB§goO, {e_moJm H$mo VrZ machines to Shimoga Institutes of Medical Sciences, Sm`{b{gg _erZmo§ H$mo CnbãY H$amZm em{_b Wm& & Shimoga. emIm/EQrE_ {dñVma : Branch/ATM Expansion: • 31.03.2019 H$mo emImAmo§ H$s g§»`m 2,432 Wr& nyao ^maV Ho$ 29 • The number of branches stood at 2,432 as on 31.03.2019. The Bank has pan India presence covering 26 states and amÁ`mo§ Am¡a 7 Ho§ Ð em{gV àXoemo§ _o§ go ~¢H$ H$s CnpñW{V HŒ _e… 26 5 union territories out of 29 states and 7 union territories amÁ`mo§ Am¡a 5 Ho§ Ð em{gV àXoemo§ _o§ h¡| respectively. • EQrE_ H$s g§»`m 3,015 Wr, {OZ_o§ go 651 _oQ—mo _o§, 734 ehar, 951 • Number of ATMs stood 3,015, out of which 651 are in AY© ehar Am¡a 679 JŒm_rU BbmH$mo§ _o§ h¢& 31 _mM©, 2019 H$mo B©-bm°~r Metro, 734 are in Urban, 951 are in Semi urban and 679 H$s g§»`m 345 h¡& are in Rural. The number E-Lobbies as on 31st March, 2019 is 345. nwañH$ma Ed§ gå_mZ : Awards and Accolades: The Bank has taken various encouraging steps towards value ~¢H$ Zo g§dY©Z, {dñVma Am¡a g_mdoer ~¢qH$J H$s {Xem _o§ H$B© CËgmhOZH$ addition, expansion and inclusive banking as a result of which, H$X_ CRmE h¢, {OgHo n{aUm_ñdê$n, AmnHo ~¢H$ H$mo 2018-19 Ho Xm¡amZ your Bank was conferred with the following prestigious awards {ZåZ{b{IV à{VpîRV nwañH$mamo§ go gå_m{ZV {H$`m J`m : during 2018-19:- 1. ~¢H$ Zo bJmVma 5do§ df© M¢~a Am°\ B§{S`Z _mBHŒ mo ñ_mb E§S _r{S`_ 1. The Bank bagged three awards instituted by Chamber of Indian Micro Small & Medium Enterprises [CIMSME] B§QaàmBOoµO (grAmB©E_EgE_B©) Ûmam {ZåZm§{H$V lo{U`mo§ _o§ VrZ nwañH$ma consecutively for the 5th year in a row under the following àmßV {H$ò : categories: H$. gd©loîR E_EgE_B© ~¢H$ nwañH$ma - Cn{dOoVm (B©_qO©J loUr) a. Best MSME Bank Award - Runner up (Emerging I. grEgAma nhb Ed§ ì`mnma Xm{`Ëd nwañH$ma - {dOoVm (B©_qO©J Category). b. CSR Initiatives & Business Responsibility Award - loUr) Winner ( Emerging Category) J$. àmo_moeZb `moOZmAmo§ hoVw gd©loîR ~¢H$ nwañH$ma - Cn{dOoVm c. Best Bank for Promotional Schemes Award - Runner (B©_qO©J loUr) up ( Emerging Category) 2. The Bank bagged “Investor Relations Awards 2018” under 2. ~¢H$ Zo {dÎm df© 2017-18 Ho {bE loUr - ~oñQ EŠgnoŠQoeZ _¡ZoO_o§Q category – Best Expectation Management (Mid Cap) for ({_S H¡ n) Ho VhV “{ZdoeH$ g§~§Y nwañH$ma 2018” àmßV {H$`m h¡& the FY 2017-18. 3. The Bank bagged the Best Community Development 3. H$m°anmoaoeZ ~¢H$ Zo 5 {gV§~a, 2018 H$mo ~¢Jbmoa _o§ Am`mo{OV Award at the National CSR Leadership Congress and amîQ—r` grEgAma brSa{en H$m§JŒog Am¡a nwañH$ma g_mamoh _o§ gd©loîR Awards function held at Bengaluru on 5th September, gm_wXm{`H$ {dH$mg nwañH$ma àmßV {H$`m& 2018. 4. The Bank bagged three awards under the Aadhaar 4. ^maVr` {d{eîQ nhMmZ àm{YH$aU (UIDAI) Ûmam ñWm{nV AmYma Excellence Awards instituted by Unique Identifi cation CËH¥$îQVm nwañH$ma Ho VhV ~¢H$ H$mo VrZ nwañH$ma {_bo h¢& Authority of India (UIDAI).

8 H$) ~¢H$ Zo amBqOJ ñQma AdmS© loUr Ho VhV Xygam ñWmZ hm{gb a. The Bank bagged 2nd place under the Rising Star {H$`m& Award category. b. Bank was conferred 3rd position in the Best Performing I) Am°ZbmBZ JŒmhH$ H$m Cn`moJ H$aHo AmYma Zm_m§H$Z/ AÚVZ Ho Bank for Aadhaar Enrollment/Update Using Online {bE ~¢H$ H$mo gd©loîR àXe©Z H$aZo dmbo ~¢H$ _o§ Vrgam ñWmZ {X`m Client. J`m& c. The Bank’s Ahmedabad-Shahibaug Branch was J) ~¢H$ H$s Ah_Xm~mX-emhr~mJ emIm H$mo ~¢H$ Ho$ CÀMV_ awarded the Best Bank Branch for highest Enrollments/ updations for the Bank. Zm_m§H$Z / AnSoeZ Ho$ {bE gd©loîR ~¢H$ emIm go gå_m{ZV {H$`m J`m& 5. The Bank once again bagged the “BEST MSME BANK- WINNER 2018” award during 6th ASSOCHAM 5. NRo EgmoM¡_ EgE_B© gd©loîRVm nwañH$ma - 2018 Ho Xm¡amZ SMEs Excellence Award – 2018 instituted by The ~¢H$ Zo Egmo{gEQoS Moå~g© Am\ H$m_g© EÊS B§SñQ—r Am\ B§{S`m Associated Chambers of Commerce & Industry of India (EEgEgAmogrEMEE_) Ûmam ñWm{nV nwañH$mamo§ _o§ df© 2018 hoVw (ASSOCHAM). “gd©loîR E_EgE_B© ~¢H$-{dOoVm 2018’’ H$m nwañH$ma àmßV {H$`m& 6. The Bank bagged SKOCH Order-of-Merit 2018 Awards 6. ~¢H$ Zo {ZåZ{b{IV lo{U`mo§ Ho VhV SKOCH Am°S©a-Am°\ -_o{aQ under the following categories: 2018 AdmS>© àmßV {H$`m: a. Financial Inclusion b. Road Map to be Best in Insurance Penetration H$) {dÎmr` g_mdoeZ c. Implementation of Technology in Forex I) ~r_m _mZ{MÌU _o§ gd©loîR hmoZo H$m amoS _¡n Operations J) {dXoer _wÐm g§MmbZ _o§ àm¡Úmo{JH$s H$m H$m`m©Ýd`Z Acknowledgements Am^ma : On behalf of the Bank, I would like to express my sincere gratitude ~¢H$ H$s Amoa go, _¢ g^r eoàYmaH$mo§ H$mo ~¢H$ Ho$ g_JŒ {dH$mg Ho {bE CZHo to all the shareholders for their persistent support for overall gVV g_W©Z Ho {bE AnZr H¥$VkVm ì`º H$aZm MmhVr hy§& _¢ ~moS© Ho$ development of the Bank. I sincerely thank the members of the Board, Govt. of India, Reserve Bank of India, all the regulatory gXñ`mo§, gaH$ma, ^maVr` {aµOd© ~¢H$, g^r {Z`m_H$ àm{YH$aUmo§ Am¡a g§JRZmo§ authorities and organisations and Insurance Companies for Am¡a ~r_m H§ n{Z`mo§ H$mo à~§YZ H$mo CgHo g^r à`mgmo§ _o§ ~hw_yë` gh`moJ their valuable support and inputs to the Management in all Ed§ _mJ©Xe©Z Ho {bE Am^ma ì`º H$aVr hy§& & _¢ AnZo g^r JŒmhH$mo§ H$mo CZHo it’s endeavours. I thank all our customers for their continued {Za§Va g_W©Z Am¡a g§ajU Am¡a CÝho§ godm àXmZ H$aZo Am¡a ì`mdgm{`H$ g§~§Y support & patronage and the opportunity given to us to serve {dH${gV H$aZo Ho {bE {XE JE Adga Ho {bE YÝ`dmX XoVr hy§& ~¢H$ H$s d¥{Õ them and develop business relationship. The dedication, Ho {bE h_mao {à` H$_©Mm{a`mo§ H$m g_n©U, à{V~ÕVm Am¡a `moJXmZ, {deof commitment and contribution of our beloved employees for the àe§gm Ho nmÌ h¢& growth of the Bank, deserve special appreciation. _wÂmo {dœmg h¡ {H$ AmnHo {Za§Va g_W©Z Am¡a {dœmg, 19000 go A{YH$ I am sure, with your continued support and confi dence, H$m°n© ~¢H$amo§ H$s à{V~ÕVm, h_mao {ZXoeH$mo§ Ho$ ~hwV hr gj_ ZoV¥Ëd Am¡a commitment of 19000 plus Corp Bankers, very able leadership and guidance of our Directors on the Board, your Bank will _mJ©Xe©Z Ho gmW, AmnH$m ~¢H$ g^r {hVYmaH$mo§ - h_mao JŒmhH$mo§, h_mao able to surpass the expectations of all the stakeholders – our H$_©Mm{a`mo§ Am¡a h_mao eoàYmaH$mo§ H$s Cå_rXmo§ na Iam CVaoJm & h_ customers, our staff and our shareholders. We look forward to AnZo àJ{V Ho A{^`mZ _o§ AmnHo ~hw_yë` g_W©Z Am¡a gØmdZm Ho$ your valuable support and goodwill in our Journey. AmH$m§jr h¢| hm{X©H$ ew^H$m_ZmAmo§ g{hV, With best wishes, ^dXr`m, Yours Sincerely,

ñWmZ : _§Jbyé nr. dr. ^maVr Place : Mangaluru P. V. Bharathi {XZm§H$ : 30.05.2019 à~§Y {ZXoeH$ Ed§ grB©Amo Date : 30.05.2019 Managing Director & CEO

ANNUAL REPORT 2018-19 9 H$mnmo©aoeZ ~¢H$ CORPORATION BANK àYmZ H$m`m©b`… _§Jbm Xodr _§{Xa _mJ© HEAD OFFICE : MANGALA DEVI TEMPLE ROAD _§Jbyê$ - 575 001 MANGALURU – 575 001 D.K. DISTRICT, KARNATAKA STATE, INDIA X{jU H$ÞS {Obm, H$Zm©QH$ amÁ`, ^maV gyMZm NOTICE

H$mnmo©aoeZ ~¢H$ (eoà Ed§ ~¡RH$) {d{Z`_, 1998 Ho$ {d{Z`_ 56 Ho$ AZwgaU NOTICE IS HEREBY GIVEN pursuant to Regulation 56 _o§ EVÛmam gy{MV {H$`m OmVm h¡ {H$ H$mnmo©aoeZ ~¢H$ Ho$ eoàYmaH$mo§ H$s of the Corporation Bank (Shares and Meetings) Regulations, 1998 that the Twenty Second Annual General Meeting of 29 2019 10 30 ~mB©gdt dm{f©H$ _hmg^m e{Zdma, OyZ, H$mo nydm©• . the Shareholders of CORPORATION BANK will be held ~Oo ghòmpãX ^dZ, H$mnmo©aoeZ ~¢H$, àYmZ H$m`m©b`, _§JbmXodr _§{Xa on Saturday, 29th June, 2019, at 10.30 a.m. at Millennium _mJ©, nm§Soœa, _§Jbyé$ - 575 001, H$Zm©QH$ amÁ` _o§ g§nÞ hmoJr {Og_o§ Building, Corporation Bank, Head Offi ce, Mangala Devi Temple {ZåZ{b{IV _Xmo§ na {dMma {d_e© {H$`m OmEJm… Road, Pandeshwar, Mangaluru – 575 001, KARNATAKA State to transact the following business: _X g§. 1: Item No. 1: ~¢H$ Ho$ 31 _mM©, 2019 Ho$ n¥WH$ Ed§ g_o{H$V boIm nar{jV VwbZ-nÌ, To discuss, approve and adopt the Audited Standalone and Consolidated Balance Sheet of the Bank as at 31st March, 31 2019 _mM©, H$mo g_mßV df© hoVw ~¢H$ Ho$ n¥WH$ Ed§ g_o{H$V bm^- 2019, Standalone and Consolidated Profi t and Loss Account hm{Z boIm, boImo§ _o§ g_m{hV Ad{Y Ho$ {bE ~¢H$ Ho$ H$m`©-{ZînmXZ VWm of the Bank for the year ended 31st March, 2019, the Report of {HŒ `mH$bmnmo§ na {ZXoeH$ _§Sb H$s [anmoQ© Am¡a VwbZ-nÌ Ed§ boImo§ na boIm- the Board of Directors on the working and activities of the Bank narjH$mo§ H$s [anmoQ© na {dMma {d_e©, AZw_moXZ VWm ñdrH$ma H$aZm& for the period covered by the Accounts and the Auditors’ Report on the Balance Sheet and Accounts. _X g§. 2 : Item No. 2: Raising of Capital of the Bank by way of issuance of fresh III ZB© B©p¹Qr eoàmo§ Ho$ {ZJ©_ Am¡a/ `m ~ogb {Xem{ZXoemo§ Ho$ AZwgma Equity Shares and/or by issuance of Additional Tier –I or A{V[aº Qrà - I `m Qrà - II ny§Or Ho$ {ZJ©_ Ûmam ~¢H$ H$s ny§Or Tier –II capital as per Basel III Guidelines. OwQmZm To consider and if thought fi t, to pass with or without {deof g§H$ën Ho$ ên _o§ {ZåZm§{H$V g§H$ën na {dMma H$aZm Am¡a modifi cation(s), the following resolution(s) as a special resolution: Cn`wº nmE OmZo na g§emoYZ `m {~Zm g§emoYZ Ho$ na {dMma H$aZm “RESOLVED THAT pursuant to the provisions of Section ""g§H$ën {b`m OmVm h¡ {H$ ~¢qH$J H§$nZr (CnHŒ _mo§ H$m A{^JŒhU Ed§ A§VaU) 3(2B) of the Banking Companies (Acquisition and Transfer of A{Y{Z`_, 1980 (""A{Y{Z`_'') H$s Ymam 3(2~r), amîQ—r`H¥ V ~¢H$ Undertakings) Act, 1980 (“Act”), Clause 20 of the Nationalised (à~§YZ Ed§ {d{dY àmdYmZ) `moOZm, 1980 (""`moOZm'') Ho$ IÊS 20, Banks (Management and Miscellaneous Provisions) Scheme, 1980 (“Scheme”), the Corporation Bank (Shares and H$mnmo©aoeZ ~¢H$ (eoà Am¡a ~¡RH$) {d{Z`_, 1998 ( ), Ed§ AÝ` ""{d{Z`_'' Meetings) Regulations, 1998 (“Regulations”) and other bmJy àmdYmZmo§, `{X H$moB© hmo§ Ed§ ^maVr` [aµOd© ~¢H$ (""Ama~rAmB©''), ^maV applicable provisions, if any, and subject to the approvals, gaH$ma (""Or Amo AmB©''), ^maVr` à{V^y{V Ed§ {d{Z_` ~moS© (""go~r'') consents, sanctions, if any, of the Reserve Bank of India Ed§/`m Bg g§~§Y _o§ Amdí`H$VmZwgma {H$gr AÝ` A{YH$mar Ho$ AZw_moXZ, (“RBI”), the Government of India (“GOI”), the Securities and Exchange Board of India (“SEBI”), and/or any other authority gh_{V, _§Oyar VWm Eogo AZw_moXZ àXmZ H$aVo hwE C„o{IV {Z`_mo§, eVmoª Ed§ as may be required in this regard and subject to such terms, g§emoYZmo§ {OZ na {ZXoeH$ _§Sb H$s gh_{V hmo, Ed§ go~r (ny§Or H$m {ZJ©_ conditions and modifi cations thereto as may be prescribed by Ed§ àH$QZ AnojmE§ {d{Z`_, 2018 [(go~r (AmB©grSrAma) {d{Z`_)], them in granting such approvals and which may be agreed to by the Board of Directors of the Bank and subject to the SEBI 2015 Amemo{YV go~r (gyMrH$aU ~mÜ`VmE± VWm àH$QZ AnojmE±) {d{Z`_, (Issue of Capital and Disclosure Requirements) Regulations, [go~r (EbAmoSrAma) {d{Z`_], 2015, Amemo{YV {dXoer {d{Z_` 2018 [the SEBI (ICDR) Regulations], The SEBI (Listing à~§YZ (^maV Ho$ ~mha ahZo dmbo àdmgr ì`{º Ûmam à{V^y{V`mo§ Ho$ {ZJ©_ Obligations Disclosure Requirements) Regulations, 2015

10 H$m A§VaU) {d{Z`_Z, 2000 Ed§ ~¢qH$J {d{Z`_Z A{Y{Z`_, 1949, [the SEBI (LODR) Regulations] as amended, the Foreign Exchange Management (Transfer or Issue of Securities by a 1992 ^maVr` à{V^y{V Ed§ {d{Z_` ~moS© A{Y{Z`_, Ho$ VhV Ama~rAmB©, Person Resident Outside India), Regulations, 2000 as amended go~r H$s A{YgyMZmAmo§/n[anÌmo§ Ed§ ñnîQrH$aUmo§ _o§ C„o{IV g^r bmJy and in accordance with the applicable rules, regulations, {Z`_mo§, {d{Z`_mo§, {Xem{ZXoemo§, n[anÌmo§ Ed§ ñnîQrH$aUmo§ `{X H$moB© hmo§, VWm guidelines, circulars and clarifi cations if any, prescribed by the RBI, SEBI, notifi cations/circulars and clarifi cations under the AÝ` g^r bmJy µH$mZyZmo§ Ed§ ñQmH$ EŠgMo§Omo§ Ohm§ ~¢H$ Ho$ B©p¹Qr eoà Banking Regulation Act, 1949, the Securities and Exchange gyMr~Õ hmo§, Ho$ gmW g_mZ gyMr~Õ H$ama Ho$ VhV g_`-g_` na AÝ` Board of India Act, 1992 and all other applicable laws and all g^r gj_ àm{YH$m[a`mo§ Ho$ AYrZ ~¢H$ Ho$ {ZXoeH$ _ÊSb ({Ogo VËnümV² other competent authorities from time to time and subject to the Uniform Listing Agreements entered into with the Stock "{ZXoeH$ _§Sb' H$hm J`m h¡, {Og_o§ ~moS© Ûmam Bg {d{Z`_ Ho$ _mÜ`_ go Exchanges where the equity shares of the Bank are listed, àXÎm A{YH$mamo§ g{hV CgHo$ A{YH$mamo§ H$m à`moJ H$aZo hoVw J{RV/J{RV H$s consent of the members of the Bank be and is hereby accorded to the Board of Directors of the Bank (hereinafter OmZodmbr g{_{V(`m±) em{_b g_Âmr OmE§Jr) H$mo EH$ `m A{YH$ ~ma _o§ called “the Board” which shall be deemed to include any ({ZJ©_ Ho$ {Z`V ^mJ H$mo µ\ _© Am~§QZ Ed§/`m à{VñnYm©Ë_H$ AmYma na Committee which the Board may have constituted or hereafter Ed§ VËg_` bmJy H$mZyZ Ûmam AZw_V {deof lo{U`mo§ Ho$ ì`{º`mo§ hoVw AmajU constitute to exercise its powers including the powers conferred by this Resolution) to create, offer, issue and allot in one or Ho$ àmdYmZmo§ Ho$ gmW) àñVmd XñVmdoO(Omo§)/{dda{UH$mAmo§ `m Eogo AÝ` more tranches (including with provision for reservation on fi rm XñVmdoOmo§ Ho$ _mÜ`_ go ^maV _o§ `m {dXoe _o§ {ZåZ{b{IV Ho$ g¥OZ, àñVmd, allotment and/or competitive basis of such part of issue and for {ZJ©_ Ed§ Am~§QZ hoVw ~¢H$ Ho$ gXñ`mo§ H$s gh_{V àXmZ H$s OmVr h¡ : such categories of persons as may be permitted by the law then applicable) by way of offer document (s)/prospectus or such other document(s), in India or abroad : `2 H$) ZH$Xr hoVw à{V (Mmho dh ~mµOma _yë` Ho$ ~Åo na `m àr{_`_ na a) Such number of equity shares of the face value of `2 each `m {ZJ©_ _yë` `m Ý`yZV_ _yë` na Omar hmo) Ho$ B©p¹Qr eoàmo§ H$s Eogr for cash (whether at a discount or premium to the market g§»`m Omo dV©_mZ noS-An B©p¹Qr eoà ny±Or Ho$ gmW gpå_{bV ên go price or issue price or fl oor price) which together with the `3000 H$amo‹S H$s ~¢H$ H$s Hw$b A{YH¥ V ny±Or, Omo {H$ A{Y{Z`_ H$s existing Paid-up Equity share capital shall be within the total authorized capital of `3000 crore of the bank, being Ymam 3 (2H$) Ho$ VhV ~¢H$ H$s A{YH¥ V ny±Or gr_m h¡ `m ^{dî` _o§ the ceiling in the Authorised Capital of the Bank as per A{Y{Z`_ _o§ hmoZo dmbo AmemoYZmo§ (`{X H$moB© hmo) Ho$ AZwgma g§d{Y©V Section 3(2A) of the Act, or to the extent of enhanced A{YH¥ V ny±Or H$s gr_m VH$ Bg àH$ma hmo {H$ {H$gr ^r g_` ^maV Authorised Capital as per the Amendment (if any), that may be made to the Act in future, in such a way that the 51 gaH$ma H$s Ym[aVm ~¢H$ Ho$ noS-An B©p¹Qr eoà ny±Or Ho$ % go H$_ Government of India shall at all times hold not less than Zht hmo; 51% of the paid-up Equity share capital of the Bank; I) {ZOr ßbog_o§Q / gmd©O{ZH$ {ZJ©_ AmYma na EH$ `m A{YH$ IÊSmo§ b) Such number of perpetual debt instruments, Non- Convertible Debentures including but not limited _o§ Omar nanoMwAb G$U {bIV, Ag§n[adV©Zr` {S~o§Ma {Og_o§ to Subordinated Debentures, Bonds, Perpetual Non- g~mo{S©ZoQoS {S~o§Ma, ~m°ÊS, J¡a-g§M`r A{Y_m{ZV eoà Am¡a/`m AÝ` Cumulative Preference Shares and/or other debt securities/ H$O© à{V^y{V/ A{Y_m{ZV eoà (g§M`r `m J¡a-g§M`r) g{hV AÝ` Preference Shares (cumulative or non-cumulative) etc., on a private placement/public issue basis, in one or more ^r em{_b h¢, H$s Eogr g§»`m Omo Ama~rAmB© Ûmam M`{ZV Ed§ dJr©H¥ V tranches which may classify for TIER I or TIER II Capital {Qà-I `m {Qà-II ny±Or Ho$ ên _o§ dJr©H¥ V H$s Om gH$Vr hmo, H$mo ; as identifi ed and classifi ed by RBI; `5000 H$amo‹S (énò nm±M hOma H$amo‹S _mÌ) VH$ H$s am{e Ho$ {bE EH$ `m to one or more of the members, employees of the Bank, A{YH$ gXñ`, ~¢H$ Ho$ H$_©Mm[a`mo§, ^maVr` ZmJ[aH$, A{Zdmgr ^maVr` Indian nationals, Non-Resident Indians (“NRIs”), Companies, private or public, Investment Institutions, Limited Liability (""EZAmaAmB©''), H§$nZr, {ZOr `m gmd©O{ZH$, {ZdoeH$ g§ñWmZ, gr{_V Partnerships (LLPs) Societies, Trusts, Research Organizations, Xo`Vm ^mJrXmar (EbEbnr) gmogm`Qr, Ý`mg, AZwg§YmZ g§JRZ, {dXoer Qualifi ed Institutional Buyers (“QIBs”) like Foreign g§ñWmJV {ZdoeH$ (""E\ AmB©AmB©'') O¡go Ah©VmàmßV g§ñWmJV HŒo Vm Institutional Investors (“FIIs”), Banks, Financial Institutions, ("" ), ~¢H$, {dÎmr` g§ñWmZ, ^maVr` å`yMwAb \§ S, d¡H$pënH$ Indian Mutual Funds, Alternate Investment Funds, Foreign Š`yAmB©~r'' Venture Capital Investors, State Industrial Development {Zdoe {Z{Y, {dXoer CÚ_ ny§Or {ZdoeH$, amÁ` Am¡Úmo{JH$ {dH$mg {ZJ_, Corporations, Insurance Companies, Provident Funds, Pension ~r_m H§$nZr, ^{dî` {Z{Y, no§eZ {Z{Y, {dH$mg {dÎmr` g§ñWmZ `m AÝ` Funds, Development Financial Institutions or other entities,

ANNUAL REPORT 2018-19 11 BH$mB©, àm{YH$mar `m {ZdoeH$mo§ H$s AÝ` loUr `m ~¢H$ Ûmam Cn`wº _mZo JE authorities or any other category of investors which are eligible to invest in equity/preference shares/securities of the Bank as per Cnamoº Ho$ {H$gr _ob Omo {dÚ_mZ {d{Z`_mo§/{Xem{ZXoemo§ Ho$ AZwgma ~¢H$ extant regulations/guidelines or any combination of the above, H$s B©p¹Qr/A{Y_m{ZV eoàmo§/à{V^y{V`mo§ _o§ {Zdoe hoVw nmÌ h¢, H$mo EH$ `m as may be deemed appropriate by the Bank for an amount not AZoH$ ~ma Am~§{QV {H$`m Om gH$Vm h¡&'' exceeding `5,000 Crore (Rupees Five Thousand Crore only) in one or more tranches”. ""`h ^r g§H$ën {b`m OmVm h¡ {H$ A{YH$ Am~§QZ `m JŒrZ ey Am°ßeZ “RESOLVED FURTHER THAT such issue, offer or allotment g{hV `m a{hV B©p¹Qr/ A{Y_m{ZV eoà/ à{V^y{V`mo§ H$m {ZJ©_, àñVmd of equity/preference shares/securities may also be by way of `m Am~§QZ Ah©VmàmßV g§ñWmZ ßbog_o§Q (Š`yAmB©nr), \ m°bmo Am°Z npãbH$ Qualifi ed Institutions Placement (QIP), Follow on Public Bí`y, amBQ Bí`y, {ZOr ßbog_o§Q, H$_©Mmar ñQmH$ Am°ßeZ ñH$s_ `m ~¢H$ Issue, Rights Issue, Private Placement, Employees Stock Option H$s H$_©Mmar ñQm°H$ HŒ ` `moOZm `m bmJy H$mZyZmo§ Ho$ AZwgma {ZJ©_ Ho$ AÝ` Scheme or Employee Stock Purchase Scheme of the Bank , or such other mode of issue as may be provided by applicable laws, _mÜ`_mo§ go ^r hmo gH$Vm h¡ Ed§ Bg àH$ma Ho$ {ZJ©_, àñVmd `m Am~§QZ with or without over-allotment or Green Shoe option and that ^m[a~¢ Ho$ {Xem{ZXoemo§, go~r (AmB©grSrAma) {d{Z`_mo§, AÝ` {d{Z`_mo§ Am¡a such offer, issue, placement and allotment of equity/preference ^m[a~¢, go~r Ed§ {H$gr AÝ` àm{YH$mar Ûmam Omar AÝ` g^r bmJy {Xem shares/securities be made as per the provisions of the Act, RBI Guidelines, the SEBI ICDR Regulations and all other applicable {ZXoemo§ Ed§ Eogo g_` `m g_`md{Y _o§ Am¡a Eogo {Z`_mo§ Ed§ eVmoª Ho$ AZwgma guidelines issued by the RBI, SEBI and any other authority as hmo§Jo {Ogo ~moS© AnZo {ddoH$mZwgma C{MV _mZVm hmo&'' applicable, and at such time or times in such manner and on such terms and conditions as the Board may, in its absolute ""`h ^r g§H$ën {b`m OmVm h¡ {H$ Cnamoº {ZJ©_/_mo§ Ho$ g§~§Y _o§ ~moS© Ho$ discretion, think fi t.” nmg Bg àH$ma Ed§ Amdí`H$VmZwgma brS _¡ZoOamo§ Ed§/`m hm_rXmamo§ Ed§/`m “RESOLVED FURTHER THAT in respect of the aforesaid AÝ` gbmhH$mamo§ Ed§/`m Eogo {Z`_mo§ d eVmoª Omo ~moS© Ho$ {ddoH$mZwgma go~r issue/s, the Board shall have the absolute authority to decide, such (AmB©grSrAma) {d{Z`_mo§, AÝ` {d{Z`_mo§ Ed§ {H$gr `m g^r bmJy H$mZyZmo§, price or prices not below the price as determined in accordance {Z`_mo§, {d{Z`_mo§ Am¡a {Xem{ZXoemo§ Ho$ VhV ñWm{nV h¢, Ho$ AZwên Eogo _yë` with relevant provisions of the SEBI (ICDR) Regulations, in such manner and wherever necessary, in consultation with the `m _yë`mo§, Omo go~r (AmB©grSrAma) {d{Z`_mo§ Ho$ g§~§{YV àmdYmZmo§ _o§ lead managers and/or underwriters and/or other advisors, and/ {ZYm©[aV _yë` go ZrMo Zht hmo§Jr Ho$ {ZYm©aU H$m VWm/AWdm àñVm{dV or such terms and conditions as the Board may, in its absolute {ZdoeH$ ~¢H$ Ho$ dV©_mZ eoàYmaH$ h¢ `m Zht, Ho$ {ZYm©aU H$m nyUm©{YH$ma discretion, decide in terms of the SEBI (ICDR) Regulations, other regulations and any and all other applicable laws, rules, hmoJm&'' regulations and guidelines, and/or whether or not the proposed investor(s) are existing shareholders of the Bank.” ""`h ^r g§H$ën {b`m OmVm h¡ {H$ g§~§{YV ñQm°H$ EŠgMo§O Ho$ gmW g_mZ gyMr~ÕVm H$ama Ho$ àmdYmZmo§, go~r (EbAmoSrAma) {d{Z`_Z, 2015 Ho$ “RESOLVED FURTHER THAT in accordance with the àmdYmZmo§, A{Y{Z`_ H$m àmdYmZ, {d{Z`_Z H$m àmdYmZ, AmB©grSrAma provisions of the Uniform Listing Agreements entered into with relevant stock exchanges, the provisions of SEBI(LODR) 1999 {d{Z`_Z H$m àmdYmZ, {dXoer {d{Z_` à~§YZ A{Y{Z`_, Am¡a Regulations, 2015, the provisions of Act, the provisions {dXoer {d{Z_` à~§YZ (^maV Ho$ ~mha ahZo dmbm ì`{º Ûmam à{V^y{V H$m of Regulations, the provisions of ICDR Regulations, the A§VaU `m {ZJ©_) {d{Z`_Z, 2000 Ho$ àmdYmZmo§ Ho$ AZwên Am¡a go~r, provisions of the Foreign Exchange Management Act, 1999 and the Foreign Exchange Management (Transfer or Issue of ñQm°H$ EŠgMo§O, ^m[a~¢, Am¡Úmo{JH$ Zr{V Am¡a nXmoÞ{V {d^mJ, dm{UÁ` Security by a Person Resident Outside India) Regulations, _§Ìmb` Am¡a `Wm Amdí`H$ AÝ` g^r àm{YH$mar (BgHo$ ~mX Bgo g_pÝdV 2000, and subject to requisite approvals, consents, permissions ên go Cn`wº àm{YH$mar Ho$ ên _o§ g§X{^©V {H$`m OmEJm&) Am¡a BZ_o§ go and/or sanctions of SEBI, Stock Exchanges, RBI, Department {H$gr Ho$ Ûmam BgH$m AZw_moXZ, gh_{V, AZw_{V Am¡a/`m g§ñdrH¥ {V H$aVo of Industrial Policy and Promotion, Ministry of Commerce (DIPP) and all other authorities as may be required (hereinafter g_` ({Ogo BgHo$ ~mX Ano{jV AZw_moXZ Ho$ ên _o§ g§X{^©V {H$`m OmEJm) collectively referred to as “the Appropriate Authorities”) and C„o{IV eVmoª Ho$ AYrZ ~moS© ßbog_o§Q àboI Am¡a/`m AÝ` Eogo àboI/ subject to such conditions as may be prescribed by any of them boIZ/ n[anÌ/ kmnZ Ho$ _mÜ`_ go VWm AmB©grSrAma {d{Z`_mo§ Am¡a Cg while granting any such approval, consent, permission and/or sanction (hereinafter referred to as “the requisite approvals”) g_` àM{bV {d{Y Ho$ AÝ` àmdYmZmo§ Ho$ AZwên ~moS© Ûmam {ZYm©[aV Bg àH$ma the Board may, at its absolute discretion, issue, offer and allot, go Ed§ Eogo _yë`, {Z`_mo§ Am¡a eVmoª, CZ_o§ go {H$gr Ûmam {ZYm©[aV H${Vn` eVmoª from time to time in one or more tranches, equity shares/ Ho$ AYrZ g_`-g_` na EH$ go A{YH$ {hñgmo§ _o§ B©p¹Qr eoà/ A{Y_m{ZV preference shares or any securities other than warrants, in such

12 eoà `m dma§Q Ho$ Abmdm {H$gr AÝ` à{V^y{V Ho$ {ZJ©_, Amµ\ a Am¡a a way that the Central Government at any time holds not less than 51% of the Equity Capital of the Bank, to QIBs (as defi ned Am~§QZ {ddoH$mZwgma Bg àH$ma H$a gH$Vm h¡ {H$ AmB©grSrAma {d{Z`_mo§ in the SEBI (ICDR) Regulations) pursuant to a Qualifi ed Ho$ AÜ`m` VI Ho$ A§VJ©V àmdYmZ Ho$ AZwgma Ah©VmàmßV g§ñWmZ ßbog_o§Q Institutions Placement (QIP) as provided for under Chapter VI (Š`yAmB©nr) Ho$ AZwH$aU _o§ Š`yAmB©~r(AmB©grSrAma {d{Z`_Z Ho$ AÜ`m` of the SEBI (ICDR) Regulations, through a placement document and/or such other documents/writings/circulars/ VI _o§ `Wm nm[a^m{fV) ~¢H$ H$s B©p¹Qr ny§Or _o§ {H$gr ^r g_` H|$Ð gaH$ma memoranda and in such manner and on such price, terms and H$s {hñgoXmar 51% go H$_ Z hmo VWm {ZJ©{_V B©p¹Qr eoàmo§ Ho$ àr{_`_ conditions as may be determined by the Board in accordance H$m Am§V[aH$ _yë` AmB©grSrAma {d{Z`_mo§ Ho$ g§~§{YV àmdYmZmo§ Ho$ AZwên with the ICDR Regulations or other provisions of the law as may be prevailing at that time; provided the price inclusive of {ZUr©V _yë` go H$_ Z hmo&'' the premium of the equity shares so issued shall not be less than the price arrived in accordance with the relevant provisions of ""`h ^r g§H$ën {b`m OmVm h¡ {H$ go~r (AmB©grSrAma) {d{Z`_mo§ Ho$ ICDR Regulations”. AÜ`m` VI Ho$ AZwH$aU _o§ Ah©VmàmßV g§ñWmZ ßbog_o§Q Ho$ _m_bo _o§ “RESOLVED FURTHER THAT in case of a Qualifi ed H$) à{V^y{V`mo§ H$m Am~§QZ go~r (AmB©grSrAma) {d{Z`_mo§ Ho$ Ame` Ho$ Institutions Placement pursuant to Chapter VI of the SEBI (ICDR) Regulations. ^rVa Ah©VmàmßV g§ñWmJV HŒo Vm H$mo hr {H$`m OmEJm, Eogr à{V^y{V`m± nyU©- àXÎm hmoJr Am¡a Eogr à{V^y{V`mo§ H$m Am~§QZ Bg g§H$ën H$s {V{W a) The allotment of Securities shall only be to Qualifi ed go 12 _mh Ho$ ^rVa AWdm g_`-g_` na go~r (AmB©grSrAma) Institutional Buyers within the meaning of the SEBI (ICDR) Regulations, such Securities shall be fully paid- {d{Z`_mo§ Ho$ A§VJ©V AZw_V Eogo AÝ` g_` _o§ nyam H$a {b`m up and the allotment of such Securities shall be completed OmEJm& within 12 months, from the date of this resolution, or such other time as may be permitted under the SEBI (ICDR) I) ~¢H$ {ZåZV_ _yë` na A{YH$V_ nm±M à{VeV Ho$ ~Åm na eoàmo§ H$mo Regulations from time to time. àñVwV H$aZo hoVw AmB©grSrAma {d{Z`_mo§ Ho$ {d{Z`_Z 176(1) Ho$ b) The Bank is pursuant to proviso to Regulation 176(1) of àmdYmZmo§ H$m AZwgaU H$aoJm& ICDR Regulations authorized to offer shares at a discount J) à{V^y{V`mo§ Ho$ {ZåZV_ _yë` Ho$ {ZYm©aU hoVw g§~§{YV {V{W go~r of not more than fi ve percent on the fl oor price. (AmB©grSrAma) {d{Z`_Zmo§ Ho$ AZwên hmoJr&'' c) The Relevant Date for the determination of the fl oor price of the securities shall be in accordance with the SEBI ""`h ^r g§H$ën {b`m OmVm h¡ {H$ ~moS© Ho$ nmg AnojmZwgma àñVmd (ICDR) Regulations.” _o§ AmemoYZ H$aZo H$m A{YH$ma hmoJm `m ^maV gaH$ma/^maVr` [aµOd© ~¢H$/ “RESOLVED FURTHER THAT the Board shall have the go~r/ ñQm°H$ EŠñMo§O, Ohm± ~¢H$ Ho$ eoà gyMr~Õ h¢, `m CgH$mo Omar H$aZo, authority and power to accept any modifi cation in the proposal Am~§{QV H$aZo VWm gy{M~Õ H$aZo Ho$ AZw_moXZ, gh_{V, AZw_{V VWm _§Oyar as may be required or imposed by the GOI/RBI/SEBI/Stock XoZo Ho$ g_` Eogo AÝ` Cn`wº àm{YH$m[a`mo§ Ûmam bmJy {H$E JE AmemoYZmo§ H$mo Exchanges where the shares of the Bank are listed or where the Debt Securities to be issued are proposed to be listed or such ñdrH$ma H$aZo H$m A{YH$ma Ed§ e{º`m± hmo§Jr&'' other appropriate authorities at the time of according/granting their approvals, consents, permissions and sanctions to issue, ""`h ^r g§H$ën {b`m OmVm h¡ {H$ EZAmaAmB©, E\ AmB©AmB© Am¡a/ `m allotment and listing thereof and as agreed to by the Board.” AÝ` nmÌ {dXoer {ZdoeH$mo§, AJa H$moB© hmo, H$mo Cnamoº à{V^y{V`mo§ Ho$ {ZJ©_ “RESOLVED FURTHER THAT the issue and allotment of 1999 Am¡a Am~§QZ {dXoer {d{Z_` à~§YZ A{Y{Z`_, Ho$ A§VJ©V ^m[a~¢ aforesaid Securities, if any, to NRIs, FIIs and/or other eligible Ho$ AZw_moXZ go bmJy {H$ÝVw Bg A{Y{Z`_ Am¡a `Wm bmJy {Z`m_H$mo§ Ho$ foreign investments be subject to the approval of the RBI A§VJ©V {Z{X©îQ g_JŒ g_` gr_m Ho$ ^rVa hmoJm&'' under the Foreign Exchange Management Act, 1999 as may be applicable but within the overall limits set forth under the Act and by other regulators, as applicable”. ""`h ^r g§H$ën {b`m OmVm h¡ {H$ {ZJ©_ {H$`m OmZo dmbm Cº Z`m B©p¹Qr eoà `Wm g§emo{YV H$mnmo©aoeZ ~¢H$ (eoà Am¡a ~¡RH|$) {d{Z`_Z, “RESOLVED FURTHER THAT the said new equity shares to 1998 Ho$ AZwgma Am¡a Eogo ñnîQrH$aU Ho$ g_` à^mdr gm§{d{YH$ {Xem be issued shall be subject to the Corporation Bank (Shares and

ANNUAL REPORT 2018-19 13 {ZXoemo§ Ho$ AZwên bm^m§e, AJa H$moB© hmo, g{hV ~¢H$ Ho$ {dÚ_mZ B©p¹Qr Meetings) Regulations, 1998 as amended and shall rank in all eoàmo§ H$s g_Vwë`Vm na V` {H$`m OmEJm&'' respects pari-passu with the existing equity shares of the Bank including dividend, if any, in accordance with the statutory guidelines that are in force at the time of such declaration.” ""`h ^r g§H$ën {b`m OmVm h¡ {H$ B©p¹Qr eoàmo§ H$mo CZ ñQm°H$ EŠgMo§Omo§ _o§ gyMr~Õ {H$`m OmEJm Ohm± ~¢H$ Ho$ {dÚ_mZ B©p¹Qr eoà gyMr~Õ {H$`m “RESOLVED FURTHER THAT the equity shares to be issued OmVm h¡&'' shall be listed with the stock exchanges where the existing equity shares of the Bank are listed.” ""`h ^r g§H$ën {b`m OmVm h¡ {H$ ~moS© H$mo {H$gr AJŒUr à~§YH$(H$mo§), ~¢H$a(amo§), hm_rXma(amo§), {ZjonmJma(amo§), {d{Y gbmhH$ma(amo§), {ZJamZr “RESOLVED FURTHER THAT the Board be and is hereby EOo§gr(`mo§) Am¡a Cnamoº à{V^y{V`mo§ H$mo Bg àH$ma go àñVmd H$aZo _o§ em{_b authorized to enter into and execute all such arrangements with any Lead Manager(s), Banker(s), Underwriter(s), Depository(ies), `m g§~§{YV Eogr g^r EOo§{g`mo§ Ho$ gmW H$ama H$aZo Am¡a Cgo {ZînmXZ H$aZo Legal Advisor(s), Monitoring Agencies and all such agencies VWm Eogo g^r g§ñWmZmo§ Ed§ EOo§{g`mo§ H$mo H$_reZ, Xbmbr Am¡a ewëH$ `m as may be involved or concerned in such offering of aforesaid Bg àH$ma {H$gr AÝ` àH$ma H$s à{Vny{V© H$aZo Am¡a Eogr g^r EOo§{g`mo§ Ho$ Securities and to remunerate all such institutions and agencies gmW Bg àH$ma H$s g^r ì`dñWmAmo§, H$amamo§, kmnZmo§, àboImo§ BË`m{X Ho$ gmW by way of commission, brokerage, fees or the like and also to enter into and execute all such arrangements, agreements, H$ama Ed§ CgH$mo {ZînmXZ H$aZo hoVw àm{YH¥ V {H$`m OmVm h¡&'' memoranda, documents, etc., with such agencies.”

""`h ^r g§H$ën {b`m OmVm h¡ {H$ Cnamoº H$mo à^mdr H$aZo Ho$ CÔoí` “RESOLVED FURTHER THAT for the purpose of giving go AJŒUr à~§YH$mo§, hm_rXmamo§, gbmhH$mamo§ Am¡a/`m ~¢H$ Ûmam {Z`wº AÝ` effect to the above, the Board, in consultation with the Lead ì`{º`mo§ Ho$ nam_e© go ~moS© H$mo {ZdoeH$mo§ Ho$ Cg dJ© g{hV {OÝho§ Cº Managers, Underwriters, Advisors and/or other persons à{V^y{V`mo§ H$mo Am~§{QV {H$`m OmZm h¡, Cº Bí`y Ho$ ñdên Am¡a eVmoª, as appointed by the Bank, be and is hereby authorized to determine the form and terms of the issue(s), including the àËòH$ {hñgo _o§ Am~§{QV {H$E OmZo H$s g§»`m, {ZJ©_ _yë` (àr{_`_, class of investors to whom the aforesaid Securities are to be AJa H$moB© hmo, g{hV), A§{H$V _yë`, {ZJ©_ na àr{_`_ am{e/ à{V^y{V`mo§ allotted, their number to be allotted in each tranche, issue price H$m A§VaU/dma§Qmo§ H$m à`moJ/à{V^y{V`mo§ H$m CÝ_moMZ, ã`mO Xa, CÝ_moMZ (including premium, if any), face value, premium amount on Ad{Y, B©p¹Qr eoàmo§/A{Y_m{ZV eoàmo§/n[adV©Z `m CÝ_moMZ `m issue/conversion of Securities/exercise of warrants/redemption of Securities, rate of interest, redemption period, number {ZañVrH$aU Ho$ ~mX AÝ` à{V^y{V`mo§ H$s g§»`m, CZH$m _yë`, {ZJ©_/ of equity shares/preference shares or other securities upon à{V^y{V`mo§ Ho$ n[adV©Z na àr{_`_ `m ~Åm, ã`mO Xa, n[adV©Z H$s Ad{Y, conversion or redemption or cancellation of the Securities, the [aH$mS© H$s {V{W `m ~hr ~§Xr Am¡a g§~pÝYV `m AmH$pñ_H$ _Xo§, ^maV Ho$ price, premium or discount on issue/conversion of Securities, A§Xa Am¡a/`m ~mha _o§ EH$ `m A{YH$ ñQm°H$ EŠgMo§Omo§ _o§ gyMr~ÕVm H$mo rate of interest, period of conversion, fi xing of record date or book closure and related or incidental matters, listings on one {ZYm©[aV H$aZo go g§~§{YV àmên Ed§ eVoª {ddoH$mZwgma C{MV ên go {ZYm©[aV or more stock exchanges in India and/or abroad, as the Board in H$aZo hoVw àm{YH¥ V {H$`m OmVm h¡&'' its absolute discretion deems fi t.”

""`h ^r g§H$ën {b`m OmVm h¡ {H$ AJa Cnamoº à{V^y{V`mo§ H$m A§eXmZ “RESOLVED FURTHER THAT such of the aforesaid Zht hmo nmVm h¡ Vmo ~moS© O¡gm Cn`wº g_Âmo Am¡a O¡gm {d{Y Ûmam AZw_V Securities as are not subscribed may be disposed off by the hmo, AnZo {ddoH$ go CgH$m {ZnQmZ H$a gH$Vm h¡&'' Board in its absolute discretion in such manner, as the Board may deem fi t and as permissible by law.” ""`h ^r g§H$ën {H$`m OmVm h¡ {H$ Bg g§H$ën H$mo à^mdr ~ZmZo Ho$ “RESOLVED FURTHER THAT for the purpose of giving CÔoí` hoVw {ZXoeH$ _§Sb H$mo Eogr g_ñV H$ma©dmB©, H$m`©, _m_bo Am¡a H$m_ effect to this Resolution, the Board, be and is hereby authorised H$aZo hoVw VWm Cº B©p¹Qr eoàmo§ H$mo Omar H$aZo Ho$ g§~§Y _o§ CËnÞ hmoZodmbo to do all such acts, deeds, matters and things as it may in its {H$gr àý, H${RZmB`mo§ Am¡a g§Xoe H$mo {ZnQmZo hoVw EVX² Ûmam àm{YH¥ V {H$`m absolute discretion deem necessary, proper and desirable and OmVm h¡ Omo CgHo$ {ddoH$mZwgma Amdí`H$, C{MV Am¡a dm§NZr` g_Âmm OmE& to settle any question, diffi culty or doubt that may arise in regard to the issue, of the shares/securities and further to do BgHo$ Abmdm CÝho§ Eogr g_ñV H$ma©dmB©, H$m`©, _m_bo Am¡a H$m_ Amdí`H$, all such acts, deeds, matters and things, fi nalize and execute dm§NZr` Am¡a A{Zdm`© XñVmdoµOmo§ Am¡a H$mJµOmV H$mo A§{V_ ên XoH$a {Zînm{XV all documents and writings as may be necessary, desirable or H$aZo Omo {H$ {ZXoeH$ _§Sb Ho$ {ddoH$mZwgma Cn`wº, C{MV Am¡a dm§NZr` hmo§, expedient as it may in its absolute discretion deem fi t, proper Ho$ {bE eoàYmaH$mo§ go A{V[aº gh_{V `m AZw_moXZ _m±JZm Z n‹So Am¡a do or desirable without being required to seek any further consent

14 Bg g§H$ën Ho$ àm{YH$ma go eo`aYmaH$mo§ Ûmam ñnîQV`m AZw_moXZ àmßV _mZo or approval of the shareholders or authorise to the end and OmE±&'' intent, that the shareholders shall be deemed to have given their approval thereto expressly by the authority of the Resolution.”

""`h ^r g§H$ën {H$`m OmVm h¡ {H$ ~¢H$ Ho$ {ZXoeH$ _ÊSb H$mo nydmo©º “RESOLVED FURTHER THAT the Board be and is hereby g§H$ën H$mo à^mdr H$aZo Ho$ {bE ~moS© H$s à{V^y{V Am~§QZ g{_{V, `m à~§Y authorized to delegate all or any of the powers herein conferred {ZXoeH$ Ed§ _w»` H$m`©nmbH$ A{YH$mar (E_Sr Ed§ grB©Amo) `m H$m`©nmbH$ jointly or severally to Securities Allotment Committee of the {ZXoeH$ (JU) `m _w»` {dÎmr` A{YH$mar `m ~¢H$ Ho$ H§$nZr g{Md H$mo AnZo Board or the Managing Director & Chief Executive Ofﬁ cer (MD & CEO) or to the Executive Director or the Chief g^r `m {H$gr A{YH$ma H$mo àË`m`mo{OV H$aZo H$m àm{YH$ma hmoJm&'' Financial Ofﬁ cer or the Company Secretary of the Bank to give effect to the aforesaid Resolutions.”

{ZXoeH$ _§Sb Ho$ AmXoe Ûmam H¥ Vo H$mnmo©aoeZ ~¢H$ By order of the Board of Directors for CORPORATION BANK

ñWmZ … _§Jbya (Eg. Ho$. Xme) Place : Mangaluru (S. K. DASH) {XZm§H$ … 30.05.2019 H§$nZr g{Md Date : 30.05.2019 COMPANY SECRETARY

ZmoQ> NOTES 1. àm°Šgr H$s {Z`w{º 1. APPOINTMENT OF PROXY {Og eoàYmaH$ H$mo ~¡RH$ _o§ ^mJ boZo H$m A{YH$ma h¡, Cgo AnZo A SHAREHOLDER ENTITLED TO ATTEND THE ñWmZ na ~¡RH$ _o§ ^mJ boZo Ho$ {bE EH$ àm°Šgr {Z`wº H$aZo H$m MEETING, IS ALSO ENTITLED TO APPOINT ^r A{YH$ma h¡ VWm Eogo àm°Šgr H$m H$mnmo©aoeZ ~¢H$ H$m eoàYmaH$ A PROXY TO ATTEND INSTEAD OF HIMSELF/ hmoZm Amdí`H$ Zht h¡& HERSELF, AND SUCH A PROXY NEED NOT BE A SHAREHOLDER OF THE BANK. VWm{n, Bg àH$ma {Z`wº àm°Šgr H$mo ~¡RH$ _o§ ~mobZo H$m H$moB© A{YH$ma However, the proxy so appointed will not have any right to Zht hmoJm& speak at the Meeting. àm°Šgr Ho$ ên _o§ Eogo {H$gr ì`{º H$s {Z`w{º Zht H$s OmEJr Omo No person shall be appointed as a proxy who is an offi cer or H$mnmo©aoeZ ~¢H$ H$m EH$ A{YH$mar `m H$_©Mmar hmo& an employee of Corporation Bank. As per the Regulations 70(vi), the grantor of an instrument {d{Z`_ 70(vi) Ho$ AZwgma àm°Šgr {bIV XoZodmbm, {bIV go g§~§{YV of proxy shall not be entitled to vote in person at the ~¡RH$ _o§ ì`{ºJV ên go dmoQ XoZo Ho$ {bE nmÌ Zht hmoJm& meeting to which such instrument relates. àm°Šgr \ m_© à^mdr hmoZo hoVw ~¡RH$ àma§^ hmoZo go H$_-go-H$_ Mma The proxy form, in order to be effective, must be received {XZ nhbo AWm©V² gmo_dma, 24 OyZ, 2019 H$mo H$m`©g_` H$s g_mpßV by the Bank at its Head Offi ce at Mangala Devi Temple Road, Mangaluru – 575 001, Karnataka State, not later AWm©V² 5 00 VH$ `m Cggo nhbo ~¢H$ Ho$ àYmZ H$m`m©b`, Anam• . ~Oo than FOUR DAYS before the date of the meeting, i.e., on _§JbmXodr _§{Xa _mJ©, _§Jbya-575 001, H$Zm©QH$ amÁ` _o§ àmßV hmo or before the closing hours i.e., 5.00 p.m. of Monday, OmZm Mm{hE& the 24th June, 2019.

2. 2. APPOINTMENT OF AN AUTHORISED àm{YH¥ V à{V{Z{Y H$s {Z`w{º REPRESENTATIVE ~¢H$ Ho$ eo`aYmaH$ H§$nZr {ZH$m` H$m {d{YdV² àm{YH¥ V à{V{Z{Y Ho$ ên No person shall be entitled to attend or vote at the Annual _o§ H$moB© ì`{º, dm{f©H$ _hmg^m _o§ ^mJ boZo Am¡a _VXmZ H$aZo hoVw V~ General Meeting as a duly authorised representative of VH$ nmÌ Zht hmoJm, O~ VH$ Cgo {d{YdV² àm{YH¥ V à{V{Z{Y Ho$ ên _o§ anybody corporate which is a shareholder of the Bank,

ANNUAL REPORT 2018-19 15 {Z`wº H$aZodmbo g§H$ën H$s à{V H$mo Cg ~¡RH$ Ho$ AÜ`j Ûmam, {Og unless a copy of the resolution appointing him/her as a duly ~¡RH$ _o§ dh nm[aV {H$`m J`m hmo, gË`à{V à_m{UV {H$`m J`m hmo, ~¡RH$ authorised representative, certiﬁ ed to be true copy by the Chairman of the meeting at which it was passed, shall have 24 H$s {V{W go H$_-go-H$_ Mma {XZ nhbo AWm©V² gmo_dma, OyZ, been deposited at the Head Ofﬁ ce of the Bank, with the 2019 H$mo H$m`© g_` H$s g_mpßV AWm©V² Anam• 5.00 ~Oo VH$ Company Secretary, Corporation Bank, Investor Services `m Cggo nhbo ~¢H$ Ho$ àYmZ H$m`m©b` _o§ H§$nZr g{Md, H$mnmo©aoeZ ~¢H$, Department, H.O., Mangaluru–575 001, Karnataka State, {ZdoeH$ godm {d^mJ, à.H$m. _§Jbya - 575 001, H$Zm©QH$ amÁ` H$mo not later than FOUR DAYS before the date of the Meeting i.e., on or before the closing hours i.e., 5.00 p.m. of àñVwV Zht {H$`m OmVm h¡& Monday, the 24th June, 2019.

3. g§`wº YmaH$mo§ Ho$ A{YH$mamo§ H$m à`moJ 3. EXERCISE OF RIGHTS OF JOINT HOLDERS `{X eoà g§`wº YmaH$mo§ Ho$ Zm_ _o§ h¡, V~ Ho$db nhbo Zm{_V ì`{º hr If shares are in the names of joint holders, then fi rst named ~¡RH$ _o§ ^mJ boZo hoVw nmÌ hmoJm Am¡a dh hr ~¡RH$ _o§ dmoQ SmbZo Ho$ {bE person is only entitled to attend the meeting and is only nmÌ hmoJm& eligible to vote. 4. CLOSURE OF REGISTER OF MEMBERS 4. gXñ`mo§ Ho$ a{OñQa H$s ~§Xr Pursuant to Regulation 12 of the Corporation Bank (Shares H$mnmo©aoeZ ~¢H$ (eoà Ed§ ~¡RH$) {d{Z`_, 1998 Ho$ {d{Z`_ 12 and Meetings) Regulations, 1998, the Register of Members Ho$ AZwgaU _o§ ~¢H$ Ho$ gXñ`mo§ H$m a{OñQa Am¡a eoà A§VaU ~{h`m±, and the Share Transfer Books of the Bank will remain st ewHŒ dma 21 OyZ, 2019 go e{Zdma, 29 OyZ, 2019 (XmoZmo§ {XZmo§ closed from Friday, the 21 June, 2019 to Saturday, the 29th June, 2019 (both days inclusive) in connection with g{hV) ~mB©gdt dm{f©H$ _hmg^m Ho$ g§~§Y _o§ VWm Cº dm{f©H$ _hmg^m the Twenty Second Annual General Meeting and Monday, _o§ ^mJ boZo VWm A§{V_ bm^m§e, `{X H$moB© hmo, H$mo àmßV H$aZo hoVw nmÌ the 24th June, 2019 be the cut-off date for entitlement eoàYmaH$mo§ Ho$ Zm_ {ZYm©[aV H$aZo Ho$ CÔoí` go ~§X aho§Jr BgHo$ {bE of shareholder for remote e-voting or voting in the Annual [a_moQ B-dmoqQJ hoVw gmo_dma, 24 OyZ 2019 H$mo H$Q-Am°\ {V{W General Meeting. _mZr OmòJr & 5. ATTENDANCE SLIP - CUM - ENTRY PASS 5. CnpñW{V nÌH$-gh-àdoe nÌ For the convenience of the shareholders, Attendance Slip- cum-Entry Pass is annexed to this notice. Shareholders/ eoàYmaH$mo§ H$s gw{dYm hoVw CnpñW{V nÌH$-gh-àdoe nÌ Bg gyMZm Proxy holders/Authorized Representatives are requested to Ho$ gmW AZw~§{YV h¡& eoàYmaH$mo§/àm°ŠgrYmaH$mo§/àm{YH¥ V à{V{Z{Y`mo§ fi ll in and affi x their signatures at the space provided therein go AZwamoY h¡ {H$ do Cgo âH$a Cg_o§ {ZYm©[aV ñWmZ na AnZo hñVmja and surrender the same at the venue. Proxy/Authorized Representative of shareholders should state on the H$ao§ Am¡a ~¡RH$ ñWmZ na Bgo gm¢n Xo§& eoàYmaH$mo§ Ho$ àm°Šgr/àm{YH¥ V Attendance Slip-cum-Entry Pass as “Proxy” or “Authorized à{V{Z{Y H$mo CnpñW{V nÌH$-gh-àdoe nÌ _o§ `WmpñW{V “àmŠgr” `m Representative” as the case may be. “àm{YH¥ V à{V{Z{Y”, O¡gm ^r _m_bm hmo, Cp„{IV H$aZm Mm{hE& 6. Serving of Notice 6. gyMZm Vm{_b H$aZm Electronic copy of the Notice of the 22nd Annual General 22dt dm{f©H$ _hmg^m H$s gyMZm H$s BboŠQ—m°{ZH$ à{V AÝ` ~mVmo§ Ho$ Meeting of the Bank inter alia indicating the process and gmW-gmW B©-dmoqQJ H$s à{HŒ `m Am¡a nÕ{V gy{MV H$aVo hwE CnpñW{V manner of e-voting along with Attendance Slip and Proxy Form is being sent to all the members whose email IDs nÌH$ Ed§ àm°Šgr \ m_© Ho$ gmW CZ g^r gXñ`mo§ H$mo ôOr Om ahr h¡ {OÝhmo§Zo are registered with the Bank/Depository Participant(s) for AnZr B©-_ob AmB©Sr g§gyMZm Ho$ {bE ~¢H$/{Snm°{µOQar nm{Q©{gno§Q Ho$ communication purposes unless any member has requested gmW n§OrH¥ V H$admB© h¡ Am¡a BgH$s hmS© H$m°nr Ho$ {bE AZwamoY Z {H$`m for a hard copy of the same. For members who have not hmo& {OZ gXñ`mo§ Zo AnZm B©_ob nVm n§OrH¥ V Z H$adm`m hmo, CÝho§ 22dt registered their email address, physical copies of the Notice nd dm{f©H$ _hmg^m H$s gyMZm H$s H$mJµOr à{V AÝ` ~mVmo§ Ho$ gmW-gmW of the 22 Annual General Meeting of the Bank inter alia indicating the process and manner of e-voting along with B©-dmoqQJ H$s à{HŒ `m Am¡a nÕ{V gy{MV H$aVo hwE CnpñW{V nÌH$ Ed§ Attendance Slip and Proxy Form, are being sent in the àm°Šgr \ m_© Ho$ gmW AZw_V {d{Y Ûmam ôOr Om ahr h¡& permitted mode.

7. H$m`©gyMr na _Xmo§ go g§~§{YV ì`m»`mË_H$ {ddaU AZwgyMr Ho$ 7. The explanatory statement to the item on the agenda is gmW g§b¾ h¡ annexed hereto.

16 8. Zmo{Qg _o§ {X`m J`m ì`dgm` H$m`© BboŠQ—m°{ZH$ dmoqQJ {gñQ_ 8. The business set out in the Notice will be transacted Ho$ Ûmam {H$`m OmòJm gmW hr BboŠQ—m°{ZH$ gmYZmo§ go dmoqQJ H$s through electronic voting system and the Bank is providing facility for voting by electronic means. gw{dYm ~¢H$ CnbãY H$amòJm & Voting through electronic voting system BboŠQ—m°{ZH$ VarHo$ go dmoqQJ a) In compliance with provisions of Regulation 44 of the H$) H§$nZr (à~§YZ Ed§ àemgZ) {Z`_, 2014 Ho$ {Z`_ 20 Ho$ gmW n{RV SEBI(LODR) Regulations, 2015 read with Rule 20 of the Companies (Management and Administration) Rules, 2015 44 go~r (EbAmoSrAma) {d{Z`_, Ho$ {d{Z`_ Ho$ àmdYmZmo§ Ho$ 2014 as amended, the Bank is pleased to provide to its AZwnmbZ _o§ ~¢H$, AnZo gXñ`mo§ H$mo 22 dt dm{f©H$ _hmg^m (EOrE_) members facility to exercise their right to vote on resolutions _o§ àñVm{dV g§H$ënmo§ H$mo nmg H$aZo hoVw AnZo gXñ`mo§ H$mo BboŠQ—m{ZH$ proposed to be passed in the 22nd Annual General Meeting _mÜ`_ go AnZo _V Ho$ A{YH$ma H$m à`moJ H$aZo hoVw B©-dmoqQJ gw{dYm (AGM) by electronic means. The members may cast their ghf© àñVwV H$aVm h¡& gXñ` AnZo _Vm{YH$ma H$m à`moJ BboŠQ—m{ZH$ votes using an electronic voting system from a place other than the venue of the Meeting (‘remote e-voting’). dmoqQJ {gñQ_ Ho$ _mÜ`_ go ~¡RH$ H$s OJh Ho$ A{V[aº AÝ` OJh go b) The facility for voting through electronic voting system ^r H$a gH$Vo h¢ ("[a_moQ B©-dmoqQJ')& (‘Insta Poll’) shall be made available at the Meeting and the I) BboŠQ—m{ZH$ dmoqQJ {gñQ_ go dmoqQJ H$aZo H$s gw{dYm (""B§ñQm nmob'') members attending the Meeting who have not cast their H$mo ~¡RH$ Ho$ ñWmZ na CnbãY H$am`m OmòJm VWm ~¡RH$ _o§ AmZo dmbo vote by remote e-voting shall be able to vote at the Meeting gXñ` {OÝhmo§Zo [a_moQ dmoqQJ (""B§ñQm nmob'') Ûmam dmoqQJ Zhr§ {H$`m h¡ through (‘Insta Poll’). do AnZm dmoQ Xo gH|$Jo& c) The members who have cast their vote by remote e-voting may also attend the Meeting but shall not be entitled to cast J) {OZ gXñ`mo§ Zo [a_moQ B©-dmoqQJ Ûmam AnZo _V H$m à`moJ {H$`m h¡ do their vote again. It is hereby clarifi ed that it is not mandatory ^r ~¡RH$ _o§ ^mJ bo gH|$Jo bo{H$Z nwZ… _VXmZ hoVw nmÌ Zht hmo§Jo& `hm± for a shareholder to vote using the remote e-voting facility, and ñnîQ {H$`m OmVm h¡ {H$ eoàYmaH$ Ho$ {bE [a_moQ B©-dmoqQJ gw{dYm H$m a shareholder may avail of the facility at his/her/their discretion, Cn`moJ H$aVo hwE _V XoZm A{Zdm`© Zht h¡ Am¡a {ZåZ{b{IV {ZXo©emo§ H$m subject to compliance with the instructions prescribed below. AZwnmbZ H$aVo hwE EH$ eoàYmaH$ Bg gw{dYm H$m Cn`moJ AnZo/CZH$m/ d) The Bank has engaged the services of Karvy Fintech Private CZH$s {ddoH$ Ho$ AZwgma H$a gH$Vo h¢- Limited (“Karvy”) as the Agency to provide e-voting facility. e) Voting rights shall be reckoned on the paid-up value of K) ~¢H$ Zo B©-dmoqQJ H$s gw{dYm àXmZ H$aZo Ho$ {bE EOo§gr Ho$ ên _o§ H$mdr© shares registered in the name of the member/benefi cial {\$ZQoH$ àmBdoQ {b{_QoS (""H$mdr©'') H$mo {Z`wº {H$`m h¡& owner (in case of electronic shareholding) as on the cut-off L) _VXmZ A{YH$ma H$s JUZm H$Q Am°\ {V{W AWm©V gmo_dma, 24 OyZ date i.e. Monday, June 24, 2019. subject to the condition that no shareholder of the Bank, other than the Central 2019 H$mo gXñ`/bm^mWr© ñdm_r Ûmam Ym[aV eoàmo§ Ho$ àXÎm _yë` Ho$ Government, shall be entitled to exercise voting rights in AmYma na H$s OmòJr Omo Bg eV© Ho$ AYrZ hmoJm {H$ H|$Ð gaH$ma H$mo respect of any shares held by him in excess of ten percent of Nmo‹SH$a AÝ` H$moB© eoàYmaH$ ~¢H$ Ho$ Hw$b eoàYmaH$mo§ Ho$ _Vm{YH$ma Ho$ the total voting rights of all the shareholders of the Bank. Xg à{VeV go A{YH$ H$s eoàYm[aVm hoVw _Vm{YH$ma Ho$ {bE nmÌ Zht f) A person, whose name is recorded in the register of hmoJm& members or in the register of benefi cial owners maintained M) EH$ ì`{º {OgH$m Zm_ gXñ`mo§ Ho$ a{OñQa _o§ `m {Snm{OQar Ho$ nmg aIo by the depositories as on the cut-off date, i.e. Monday, June 24, 2019 only shall be entitled to avail the facility of bm^mWr© ñdm_r Ho$ a{OñQa _o§ H$Q-Am°\ {V{W gmo_dma, 24 OyZ 2019 remote e-voting/Insta Poll. H$mo XO© hmoJm dhr [a_moQ B©-dmoqQJ/B§ñQm nmob H$mo {bE nmÌ hmoJm& g) Any person who becomes a member of the Bank after N) EH$ ì`{º Omo Zmo{Qg ôOo OmZo Ho$ ~mX ~¢H$ H$m gXñ` ~ZVm h¡ Am¡a H$Q- dispatch of the Notice of the Meeting and holding shares as Am°\ gmo_dma, 24 OyZ 2019 H$mo eoà YmaU H$aVm h¡ dh {ZåZ{b{IV on the cut-off date i.e. Monday, June 24, 2019, may obtain àH$ma go `yOa AmB© Sr Ed§ nmgdS© àmßV H$a gH$Vm h¡ - ~¢H$ H$mo isd@ the User ID and password in the manner as mentioned below: by writing to the Bank at [email protected] corpbank.co.in na `m eoàYm[aVm Ho$ à_mUrH$aU Ho$ gmW SmH$ Ûmam or by post with authenticated proof of shareholding or write {bIo `m H$mdr© {\ ZQoH$ àm. {b. H$mo B©-dmoqQJ H$s g_mpßV Ho$ n`m©ßV to KARVY Fintech Pvt. Ltd. at [email protected], nhbo [email protected] na B©-_ob H$ao§& suffi ciently before the closing of the remote e-voting.

ANNUAL REPORT 2018-19 17 O) [a_moQ B©-dmoqQJ 26 OyZ, 2019 (àmV…09 ~Oo) go ewê hmoH$a 28 OyZ h) The remote e-voting period commences on 26th June, 2019 (09:00 a.m.) and ends on 28th June, 2019 (05:00 p.m.) and 2019 5:00 ( gm`§ 0 ~Oo) H$mo g_mßV hmoJr VWm Bg {V{W Ed§ g_` Ho$ the remote e-voting shall not be allowed beyond this date ~mX [a_moQ B©-dmoqQJ H$s AZw_{V Zht hmoJr& gmo_dma, 24 OyZ 2019 and time. During this period, shareholders of the Bank, (H$Q-Am\ {V{W) H$mo BboŠQ—m{ZH$ `m ^m¡{VH$ ên go ~¢H$ eoàmo§ H$mo holding shares either in physical form or in dematerialized YmaU H$aZo dmbo eoàYmaH$ Bg Ad{Y Ho$ Xm¡amZ AnZo _Vm{YH$ma H$m form, as on Monday, June 24, 2019(cut-off date), may cast their vote electronically. The remote e-voting module à`moJ Bg Ad{Y Ho$ Xm¡amZ BboŠQ—m{ZH$ T§J go H$a gH$Vo h¢& BgHo$ ~mX shall be blocked by Karvy Fintech Pvt. Ltd., for voting H$mdr© {\ ZQoH$ àmBdoQ {b{_QoS Ûmam [a_moQ B©-dmoqQJ _m°Sçyb H$mo ãbmH$ thereafter. Once the vote on a resolution is cast by the H$a {X`m OmòJm& `{X eoàYmaH$ {H$gr g§H$ën na AnZm dmoQ Xo XoVm h¡ shareholder, the shareholder shall not be allowed to change it subsequently. V~ ~mX _o§ BgHo$ n[adV©Z H$s AZw_{V Zht hmoJr& i) In case of Joint holders, login ID/User Id and password Âm) g§`wº YmaH$mo§ Ho$ _m_bo _o§, bmJBZ AmBSr/`yOa AmBSr H$mo àW_ details shall be sent to the fi rst holder of the shares. eoàYmaH$ Ho$ Zm_ go ôOm OmòJm& VXZwgma àW_ eoàYmaH$ H$mo Accordingly, the vote using user ID and Password sent to ôOo JE `yOa AmBSr Ed§ nmgdS© H$m à`moJ H$aVo hwE {XE OmZo dmbo fi rst holder is recognized on behalf of all the joint holders as the shareholder who casts the vote through the remote _V H$mo g^r eoàYmaH$mo§ H$s Amoa go _mZm OmòJm Š`mo§{H$ H$mdr© H$s e-voting services of Karvy, is doing so on behalf of all joint [a_moQ B©-dmoqQJ H$s gw{dYm H$m Cn`moJ H$aVo hwE Omo eoàYmaH$ _VXmZ holders. First holder shall mean the holder of shares, whose H$aVm h¡ dh g^r g§`wº eoàYmaH$mo§ H$s Amoa go _VXmZ H$aVm h¡& àW_ name is fi rst registered against the shares held. eoàYmaH$ go VmËn`© Ym[aV eoàmo§ _o§ n§OrH¥ V nhbm Zm_ h¡& j) Only a Shareholder entitled to vote is entitled to exercise his vote through remote e-voting. Any person having no Äm) Ho$db dh eoàYmaH$ Omo _VXmZ H$aZo hoVw nmÌ h¡ dht [a_moQ B©-dmoqQJ voting rights should treat this Notice as intimation only. Ûmam _VXmZ hoVw ^r nmÌ hmoJm& H$moB© ì`{º {Ogo _VXmZ H$m A{YH$ma k) Mr. Ankur Kumar, Advocate (Bar Council Registration Zht h¡ Bg gyMZm H$mo Ho$db gyMZmW© g_Âmo§& No. MAH/5718/2011) of M/s. Ezy Laws, Mumbai, has V) _ogg© B©Or bm, _w§~B© Ho$ lr A§Hw a Hw _ma , ESdmoHo$Q ( ~ma H$mC§{gb been appointed as the Scrutinizer to scrutinize the Insta Poll and remote e-voting process in a fair and transparent n§Or`Z g§. E_EEM/5718/2011) H$mo B§ñQm nmob VWm [a_moQ B©- manner and he has communicated his willingness to be dmoqQJ à{HŒ `m H$s {Zînj Ed§ nmaXer© g§drjm hoVw _VnÌ-{ZarjH$ appointed and will be available for same purpose. {Z`wº {H$`m J`m h¡ VWm CÝhmo§Zo {Z`w{º hoVw AnZr gh_{V Xr h¡ Ed§ Bg l) The Scrutinizer shall, fi rst count the votes cast at the hoVw CnbãY aho§Jo& meeting (insta votes), thereafter unblock the votes cast through remote e-voting in the presence of at least two W) _VnÌ-{ZarjH$ nhbo ~¢RH$ _o§ hwE _VXmZ Ho$ _Vmo§ H$s JUZm H$aoJm witnesses not in the employment of the Bank and make, (B§ñQm dmoQ), VËnümV _hmg^m H$s ~¡RH$ Ho$ VrZ {XZ Ho$ ^rVa Xmo Jdmhmo§ not later than three days of conclusion of the Annual Omo ~¢H$ `m g§JRZ Ho$ H$_©Mmar Z hmo§ CZHo$ g_j [a_moQ B©-dmoqQJ Ûmam General Meeting, a consolidated scrutiniser’s report of the total votes cast in favour or against, if any, and submit the Smbo JE _Vmo§ H$mo AZãbm°H$ H$aoJm, AÜ`j H$mo `m CZHo$ Ûmam {b{IV report to the Chairman or a person authorised by him in ên go A{YH¥ V {H$E JE ì`{º H$mo nj `m {dnj _o§ n‹So _Vmo§ H$s g_o{H$V writing and shall countersign the same to declare the result [anmoQ© àñVwV H$aoJm Ed§ n[aUm_ H$mo Omar {H$E OmZo hoVw Bg [anmoQ© H$mo of voting forthwith. à{VhñVmj[aV ^r H$aoJm& m) The Results declared alongwith the consolidated Scrutinizer’s Report shall be placed on the Bank’s X) Kmo{fV n[aUm_ H$mo _VnÌ-{ZarjH$ H$s g_o{H$V [anmoQ© Ho$ gmW ~¢H$ H$s website www.corpbank.com and on the website of Karvy do~gmBQ www.corpbank.com VWm H$mdr© H§$ß`yQaeoà àm. {b. H$s Computershare Pvt. Ltd. The results shall simultaneously do~gmBQ na àX{e©V {H$`m Om`& gmW hr n[aUm_ H$m ñQm°H$ EŠgMo§O be communicated to the Stock Exchanges (NSE & BSE). (EZEgB© VWm ~rEgB©) H$mo ^r gy{MV {H$`m OmZm Mm{hE & n) Subject to receipt of requisite number of votes, the Y) Amdí`H$ _Vmo§ Ho$ àmßV hmoZo Ho$ AYrZ g§H$ën H$mo ~¡RH$ H$s {V{W 29 Resolutions shall be deemed to be passed on the date of the OyZ 2019 H$mo Omar _mZ {b`m OmòJm& Meeting, i.e. June 29, 2019.

18 Z) B©-dmoqQJ Ho$ {bE AZwXoe Ed§ AÝ` gyMZmE± {ZåZmZwgma h¢- o) Instructions and other information relating to remote e-voting:

[a_moQ B©-dmoqQJ hoVw AZwXoe {ZåZmZwgma h¡: The instructions for remote e-voting are as under:

I H$. `{X {H$gr eoàYmaH$ H$mo àm{YH¥ V B©-dmoqQJ ßb¡Q\ m_© àXmVm I A. In case a shareholder receives an email from Karvy H$mdr© {\ ZQoH$ àm.{b. go B©_ob àmßV hmoVm h¡ (CZ eoàYmaH$mo§ Computershare Pvt. Ltd. – the authorised e-Voting Platform provider, [for shareholders whose email Ho$ {bE {OZH$s B©_ob AmB©Sr ~¢H$/{Snm°{µOQar nm{Q©{gno§Q Ho$ IDs are registered with the Bank/Depository gmW n§OrH¥ V h¡): Participant(s)]: i) dmoqQJ Ho$ Xm¡amZ AnZo do~ ~ŒmCµOa H$mo Imobo§ Am¡a i) Open your web browser on your computer/on the enabled gadgets during the voting period and navigate ‘https://evoting.karvy.com’ _o§ Z¡{dJoQ H$ao§& to https://evoting.karvy.com ii) nmoñQb ~¡bQ \ m_© _o§ Cp„{IV bm°JBZ {ddaU (AWm©V² `yµOa ii) Enter the login credentials (i.e., user-id & password) AmB©Sr Am¡a nmgdS©) à{dîQ H$ao§& AnZr \ mo{b`mo/ŠbmB§Q mentioned in the e-mail/on the Attendance slip. Your AmB©Sr AmnH$s `yµOa AmB©Sr hmoJr& folio/DP Client ID will be your User-ID. `yµOa- AmB©Sr Sr_¡Q ên _o§ eoà aIZo dmbo gXñ`mo§ Ho$ {bE…- User – ID For Members holding shares in Demat Form:- a) For NSDL :- 8 Character DP ID followed by 8 H$) EZEgSrEb Ho$ {bE…- H¡ aoŠQa dmbr Srnr AmB©Sr 8 Digits Client ID 8 Am¡a CgHo$ ~mX A§H$mo§ dmbr ŠbmB§Q AmB©Sr b) For CDSL :- 16 digits benefi ciary ID I) grSrEgEb Ho$ {bE…-16 A§H$mo§ dmbr bm^mWr© AmB©Sr For Members holding shares in Physical Form: H$mJµOr ên _o§ eoà aIZo dmbo gXñ`mo§ Ho$ {bE…- • EVEN followed by Folio Number registered • EVEN CgHo$ ~mX ~¢H$ _o§ n§OrH¥ V \ mo{b`mo g§»`m with the Bank. nmgdS© AmnH$m {d{eîQ nmgdS© BboŠQ—m°{ZH$ gyMZm Ho$ µO[aE B©_ob Password Your Unique password is forwarded through the Ûmam ôOm h¡& electronic notice via email Captcha Enter the Verifi cation code i.e., please enter the H¡ nMm gË`mnZ Hy Q à{dîQ H$ao§ AWm©V² gwajm H$maUmo§ go RrH$ Cgr alphabets and numbers in the exact way as they VarHo$ go dUmoª Am¡a g§»`mAmo§ H$mo à{dîQ H$ao§& are displayed for security reasons. iii) {H$gr A{V[aº ñnîQrH$aU/dV©_mZ nmgdS© Ho$ {bE iii) Please contact toll free No. 1800 345 4001 of B©-dmoqQJ ßb¡Q\ m_© àmodmBSa AWm©V² H$mdr© {\ ZQoH$ e-Voting Platform provider, i.e. Karvy Fintech Pvt. Ltd., for any further clarifi cations. àm.{b. H$s Qmob \Œ r g§. 1800 345 4001 na g§nH© H$ao§& iv) Cn`wº VarHo$ go ã`m¡ao à{dîQ H$aZo Ho$ ~mX “LOGIN” na iv) After entering these details appropriately, click on pŠbH$ H$ao§& “LOGIN”. v) Sr_¡Q/H$mJµOr ên _o§ eoà aIZo dmbo gXñ` A~ Ý`y nmgdS© v) Members holding shares in Demat/Physical form will ~XbZo H$m _oZy nmE§Jo {Og_o§ CÝho§ ZE nmgdS© H$s \ rëS _o§ now reach Password Change menu wherein they are AnZm bm°JBZ nmgdS© A{Zdm`© ên go ~XbZm hmoJm& ZE required to mandatorily change their login password in the new password fi eld. The new password has to nmgdS© _o§ Ý`yZV_ AmR H¡ aoŠQa hmoZo h¢ {OZ_o§ H$_ go H$_ be minimum eight characters consisting of at least one (A-Z) (a-z) EH$ Aßna Ho$g dmbm, EH$ bmoda Ho$g dmbm, upper case (A-Z).one lower case (a-z), one numeric EH$ g§»`m (0-9) Am¡a EH$ {deof H¡ aoŠQa hmo& AJa Amn value (0-9) and a special character. You may also nmgdS© ^yb OmVo h¢ Vmo Bgo nwZ… àmßV H$aZo Ho$ {bE Amn enter the Secret Question and answer of your choice JmonZr` àý Am¡a CÎma H$s à{dpîQ H$a gH$Vo h¢ & Amn AnZo to retrieve your password in case you forget it. You g§nH© ã`m¡amo§ H$mo ^r AÚVZ H$a gH$Vo h¢& Bg ~mV na µOmoa can also update your contact details. It is strongly {X`m OmVm h¡ {H$ AnZm nmgdS© {H$gr AÝ` ì`{º H$mo recommended not to share your password with any Z ~VmE§ Am¡a AnZo nmgdS© H$mo JmonZr` aIZo Ho$ {bE other person and take utmost care to keep your AË`{YH$ gmdYmZr ~aVo§& password confi dential. vi) H$mnmo©aoeZ ~¢H$ `m ^maV _o§ {H$gr AÝ` ~¢H$/H§$nZr _o§, {Og_o§ vi) The new password can be used for voting on future Amn _VXmZ H$aZo Ho$ {bE nmÌ h¢, ^mdr B©-dmoqQJ g§H$ën e-voting resolution(s) for Corporation Bank or any (g§H$ënmo§) na dmoqQJ H$aZo Ho$ {bE ZE nmgdS© H$mo BñVo_mb other Bank/Company in India on which you are

ANNUAL REPORT 2018-19 19 H$a gH$Vo h¢ ~eVo© {H$ dh ~¢H$/H§$nZr B©-dmoqQJ Ho$ {bE eligible to vote, provided that Bank/Company opts H$mdr© {\$ZQoH$ àmBdoQ {b{_QoS Ho$ B©-dmoqQJ ßb¡Q\$m_© H$m for e-Voting through Karvy Computershare Private M`Z H$aVr h¡& Limited, e-Voting Platform provider. vii) AmnH$mo ZE ã`m¡amo§ AWm©V² nmgdS© Am{X Ho$ gmW {\$a go vii) You need to login again with the new credentials i.e. bm°JBZ H$aZm hmoJm& with new password etc. viii) g\$bVmnyd©H$ bm°JBZ H$aZo Ho$ ~mX ‘EVEN’ AWm©V² ‘~¢H$ viii) On successful login, system will prompt to select the H$m Zm_’ MwZZo Ho$ {bE {gñQ_ AmnH$mo àm°åßQ H$aoJm& ‘EVEN’ i.e., ‘Bank Name’. ix) dmoqQJ n¥îR na AmnH$mo g§H$ën H$m {ddaU {XImB© XoJm ix) On the voting page, you will see Resolution Am¡a CgHo$ gm_Zo dmoqQJ Ho$ {bE ‘FOR/AGAINST/ Description and against the same the option ‘FOR/ ABSTAIN’ {dH$ën hmoJm& ‘FOR/AGAINST/ AGAINST/ABSTAIN’ for voting. Enter the number ABSTAIN’ Ho$ A§VJ©V eoàmo§ H$s g§»`m (Omo dmoQmo§ H$s of shares (which represents number of votes) under g§»`m Xem©Vo h¢) à{dîQ H$ao§ `m {dH$ën Ho$ Vm¡a na Amn ‘FOR/AGAINST/ABSTAIN’ or alternatively you may partially enter any number in ‘FOR’ and partially Am§{eH$ ên go H$moB© g§»`m ‘FOR’ _o§ à{dîQ H$a gH$Vo h¢ in ‘AGAINST’, but the total number in ‘FOR/ ‘AGAINST’ FOR/ Am¡a Am§{eH$ ên go _o§, bo{H$Z " AGAINST’ taken together should not exceed your AGAINST’ _o§ Hw$b {_bmH$a AnZr Hw$b eoàYm[aVm go total shareholding/voting right. If the shareholder A{YH$ Zht hmoZm Mm{hE& `{X eoàYmaH$ dmoQ Zht SmbZm does not want to cast, select ‘ABSTAIN’. ‘ABSTAIN’ MmhVm h¡ Vmo MwZo§& x) After selecting the resolution you have decided to vote x) _VXmZ H$aZo Ho$ {bE g§H$ën H$mo MwZZo Ho$ ~mX “SUBMIT” on, click on “SUBMIT”. A confi rmation box will be na pŠbH$ H$ao§& EH$ nwîQrH$aU H$m ~m°Šg {XImB© XoJm& AJa displayed. If you wish to confi rm your vote, click on Amn AnZo dmoQ H$s nwpîQ H$aZm MmhVo h¢ Vmo “OK” na pŠbH$ “OK”, else to change your vote, click on “CANCEL” H$ao§, AÝ`Wm “CANCEL” na pŠbH$ H$ao§ Am¡a VXZwgma and accordingly modify your vote. AnZo {dH$ën H$mo n[ad{V©V H$ao§& xi) Once you ‘CONFIRM’ your vote on the resolution, xi) EH$ ~ma Amn g§H$ën na AnZo dmoQ H$mo “CONFIRM” you will not be allowed to modify your vote and it will H$aVo h¢, AmnH$mo AnZo dmoQ H$mo ~XbZo H$s AZw_{V Zht hmoJr be treated as fi nal voting by you. Am¡a Bgo AmnHo$ Ûmam A§{V_ dmoqQJ _mZm OmEJm& xii) Institutional shareholders including body corporates xii) H§$nZr {ZH$m` g{hV g§ñWmJV eoàYmaH$mo§ (AWm©V² ì`{º`mo§, (i.e., other than individuals, HUF, NRI etc.) are required EM`yE\ , EZAmaAmB© Am{X H$mo Nmo‹SH$a AÝ`) Ho$ {bE `h to send scanned copy (this fi le be as an attachment in Amdí`H$ h¡ {H$ CÝho§ {d{YdV² àm{YH¥ V à{V{Z{Y Ho$ ên _o§ PDF Format) of the resolution appointing him/her {Z`wº H$aVo hwE nm[aV g§H$ën H$s ñH¡ Z H$s JB© à{V (`h as a duly authorised representative, certifi ed to be true \ mBb nrSrE\ \ m°_o©Q _o§ EQ¡M_o§Q Ho$ ên _o§ hmo), {Ogo {Og copy by the Chairman of the meeting at which it was passed, together with attested specimen signature of ~¡RH$ _o§ dh g§H$ën nm[aV {H$`m J`m, CgHo$ AÜ`j Ûmam the duly authorized signatory(ies) who are authorized gË`à{V Ho$ ên _o§ à_m{UV {H$`m hmo, Am¡a CgHo$ gmW dmoQ to vote, to the Scrutinizer through e-mail to H$aZo Ho$ {bE àm{YH¥ V {d{YdV² àm{YH¥ V hñVmjaH$Vm©(Amo§) [email protected] with a copy marked to Ho$ AZwà_m{UV Z_yZm hñVmja B©_ob Ho$ µO[aE [email protected]. The fi le should be named in the [email protected] H$mo à{V A§{H$V H$aVo hwE format of “the body corporate [email protected] na ñHŒy {QZmBµOa H$mo ôOo§& \ mBb EVEN ------”. The scanned copies are to be sent H$m Zm_ “the body corporate Name...... EVEN....” as mentioned above by e-mail, before or immediately \ m_o©Q _o§ hmo& Cn`w©º mZwgma ñH¡ Z H$s JB© à{V`m± B©-dmoqQJ after casting the remote e-voting. However, in case the same do not reach scrutinizer/Karvy Fintech Pvt. Ltd., go nhbo `m Vwa§V ~mX B©-_ob Ûmam ôOr OmZr h¡& AJa dh before closure of remote e-voting, the remote e-voting B©-dmoqQJ H$s g_mpßV go nhbo ñHŒy {QZmBµOa/H$mdr© {\ ZQoH$ so exercised will be rejected in computer system. àmBdoQ {b{_QoS H$mo àmßV Zht hmoVr h¡, Vmo H$s JB© B©-dmoqQJ I B. In case a shareholder receives physical copy of the H§$ß`yQa {gñQ_ _o§ AñdrH¥ V H$s OmEJr& Notice of Annual General Meeting (AGM) [for I I. `{X {H$gr eoàYmaH$ H$mo dm{f©H$ _hmg^m (EOrE_) H$s shareholders whose email IDs are not registered with gyMZm H$s H$mJµOr à{V àmßV hmoVr h¡ (CZ eoàYmaH$mo§ Ho$ {bE the Bank/Depository Participant(s) or requesting {OZH$s B©_ob AmB©Sr ~¢H$/{Snm°{µOQar nm{Q©{gno§Q Ho$ gmW physical copy]: n§OrH¥ V Zht h¡ Am¡a Omo H$mJµOr à{V H$m AZwamoY H$aVo h¢) i) Initial password is provided at the bottom of the i) EOrE_ Ho$ CnpñW{V nÌH$ Ho$ ZrMo àma§{^H$ nmgdS© {X`m J`m h¡& Attendance Slip for the AGM:

20 EVEN (B© dmoqQJ B©do§Q Z§~a) EVEN (E-Voting Event Number) `yµOa AmB©Sr nmgdS© USER ID PASSWORD ii) H¥ n`m dmoQ SmbZo Ho$ {bE Cn`w©º HŒ _m§H$ IA (i) go HŒ _m§H$ ii) Please follow all steps from Sl. No. IA (i) to Sl. No. (xii) (xii) VH$ {XE H$X_mo§ H$m AZwgaU H$ao§& Above, to cast vote. II `{X H$moB© àý hmo Vmo Amn https://evoting.karvy.com Ho$ II) In case of any queries, you may refer the Frequently Asked Questions (FAQs) for Shareholders and e-voting SmCZbmoS goŠeZ _o§ CnbãY eoàYmaH$mo§ Ho$ {bE AŠga nyNo OmZo user manual for Shareholders available at the Downloads dmbo àý (E\ EŠ`y) Am¡a eoàYmaH$mo§ Ho$ {bE B©-dmoqQJ `yµOa _¡ZwAb section of https://evoting.karvy.com or contact Karvy H$m g§X^© bo gH$Vo h¢ Am¡a H$mdr© {\ ZQoH$ àm. {b. go 1800 345 Fintech Pvt. Ltd., on Tel. No.1800 345 4001 (toll free). 4001 (Qmob \Œ r) go g§nH© H$a gH$Vo h¢& III) If you are already registered with Karvy Fintech Pvt. Ltd., III AJa AmnZo B©-dmoqQJ Ho$ {bE nhbo hr H$mdr© {\ ZQoH$ àm. {b. Ho$ for e-voting then you can use your existing user ID and password for casting your vote. gmW a{OñQa H$adm`m h¡ Vmo Amn AnZm dmoQ SmbZo Ho$ {bE AnZm IV) You can also update your mobile number and e-mail id in dV©_mZ `yµOa AmB©Sr Am¡a nmgdS© H$m BñVo_mb H$a gH$Vo h¢& the user profi le details of the folio which may be used for IV ^mdr g§gyMZmE§ ôOZo Ho$ {bE Cn`moJ {H$E OmZo dmbo \ mo{b`mo Ho$ sending future communication(s). `yµOa àmo\ mBb ã`moao _o§ Amn AnZm _mo~mBb Z§~a Am¡a B©-_ob AmB©Sr 9. UNCLAIMED DIVIDEND, IF ANY H$mo AÚVZ ^r H$a gH$Vo h¢& The shareholders who have not encashed their Dividend 9. AXmdmH¥ V bm^m§e `{X H$moB© h¡ Warrants/received Dividend of previous periods, if any, are requested to contact the Share Transfer Agent, for issue of {OZ eoàYmaH$mo§ Zo AnZo bm^m§e dma§Qmo§ H$mo Zht ^wZm`m h¡/AJa nyd© duplicate Dividend Warrant. In this regard Bank is also Ad{Y Ho$ bm^m§e àmßV Zht hwE h¢ Vmo SwpßbHo$Q bm^m§e dma§Q Omar sending reminder letters from time to time to the concerned H$aZo hoVw ~¢H$ Ho$ eoà A§VaU EOo§Q go g§nH© H$ao§& Bg g§~§Y _o§ ~¢H$ shareholders as per Dividend Register of the Bank. g_`-g_` na ~¢H$ Ho$ bm^m§e a{OñQa Ho$ AZwgma g§~§{YV eoàYmaH$mo§ As per Section 10B of the Banking Companies (Acquisitions H$mo AZwñ_maH$ ^r ôO ahm h¡& and Transfer of Undertakings) Act, 1980, the amount of ~¢qH$J H§$nZr (CnHŒ _mo§ H$m AO©Z Am¡a A§VaU) A{Y{Z`_, 1980 H$s Dividend remaining unpaid or unclaimed for a period of seven years is required to be transferred to the Investor 10 Ymam ~r Ho$ AZwgma gmV df© H$s Ad{Y Ho$ {bE AXÎm `m AXmdmH¥ V Education and Protection Fund (IEPF) established by the bm^m§e H$s am{e, H§$nZr A{Y{Z`_, 2013 H$s Ymam 125 Ho$ VhV Ho$§Ð Central Government under Section 125 of the Companies gaH$ma Ûmam ñWm{nV {ZdoeH$ {ejm Ed§ g§ajU {Z{Y (AmB©B©nrE\ ) _o§ Act, 2013. A§V[aV H$s OmZr Mm{hE& As a matter of service to shareholders, Bank has been {ZdoeH$mo§ H$mo ~Vm¡a godm ~¢H$ `h AZwamoY H$aVo hwE {Z`{_V A§Vambmo§ _o§ sending reminders to shareholders at regular intervals AZwñ_maH$ nÌ ôOVm ahm h¡ {H$ do bm^m§emo§ H$m Xmdm H$ao§& requesting them to claim the same. 10. eoàYmaH$mo§ go {ZdoXZ 10. REQUEST TO THE SHAREHOLDERS H$) VwbZnÌ H$s à{V`m± A) Copies of Balance Sheet eoàYmaH$mo§ H$mo gy{MV {H$`m OmVm h¡ {H$ dm{f©H$ _hmg^m Ho$ Shareholders are requested to note that copies of the g_` dm{f©H$ [anmoQ© H$s à{V`m± {dV[aV Zht H$s OmE§Jr, Bg{bE Annual Report will not be distributed at the venue of eoàYmaH$mo§ go AZwamoY h¡ {H$ do ~¢H$ Ûmam CZHo$ n§OrH¥ V nVo na `m the Annual General Meeting and hence shareholders B©-_ob nVo na ôOr JB© dm{f©H$ [anmoQ© H$s à{V `m CgHo$ CÕaU H$mo are requested to bring their copies of the Annual Report or extract thereof, mailed by the Bank to them gmW boH$a AmE§& at their registered addresses and/or e-mail addresses. I) eoàmo§ H$m Sr_oQr[a`bmBOoeZ B) Dematerialisation of shares AnZo eoà à_mUnÌ A~ ^r H$mJµOr ên _o§ Ym[aV H$aZodmbo Shareholders who are still holding their shares eoàYmaH$mo§ go AnZo eoàmo§ H$mo `WmerKŒ Sr_¡Q H$admZo H$m AZwamoY in physical form are requested to get their shares {H$`m OmVm h¡& dematerialized at the earliest. J) nVm `m B©-_ob AmB©Sr _o§ n[adV©Z C) Change of address or e-mail ID eoàYmaH$mo§ go AZwamoY {H$`m OmVm h¡ {H$ AnZo nVo _o§ {H$gr Shareholders are requested to notify any change in n[adV©Z H$mo {ZåZ{b{IV H$mo Vwa§V A{Ygy{MV H$ao§: their addresses to:

ANNUAL REPORT 2018-19 21 • eoàmo§ Ho$ Sr_¡Q ên _o§ YmaU Ho$ _m_bo _o§ AnZo g§~§{YV • Their respective Depository Participant, in case {Snm°{OQar nm{Q©{gno§Q H$mo& shares are held in dematerialised form. • The Share Transfer Agent, M/s Karvy Fintech Pvt. • H$mJµOr ên _o§ Ym[aV eoàmo§ Ho$ _m_bo _o§ eoà A§VaU EOo§Q Ltd., Unit: Corporation Bank, Karvy Selenium _ogg© H$mdr© {\ ZQoH$ àm. {b., `y{ZQ… H$mnmo©aoeZ ~¢H$, H$mdr© Tower-B, Plot Nos. 31 & 32, Financial District, gobo{Z`_ Qm°da - ~r, ßbmQ g§. 31 d 32, {dÎmr` {Obm, Gachibowli, Nanakramguda, Serilingampally, Jm{M~modbr, ZmZH$am_JwSm, goarqbJ_n„r, h¡Xam~mX - Hyderabad – 500 032 in case shares are held in physical form. 500 032 H$mo& • Shareholders are also requested to register/update • eoàYmaH$mo§ go `h ^r AZwamoY {H$`m OmVm h¡ {H$ do AnZo their e-mail address with the Bank to enable the B©-_ob nVo H$mo ~¢H$ _o§ n§OrH¥ V/AÚVZ H$ao§ Vm{H$ ~¢H$ B©-_ob Bank to send all communications/notices/Annual Ûmam AnZm g^r nÌmMma/gyMZm/dm{f©H$ [anmoQ© Am{X ôO Report etc., through e-mail. Shareholders holding gHo$& Sr_¡Q ên _o§ eoà aIZo dmbo eoàYmaH$mo§ go AZwamoY shares in demat mode are requested to register/ update their e-mail addresses with their respective h¡ {H$ do AnZo {Snm°{µOQar nm{Q©{gno§Q Ho$ nmg AnZm B©-_ob Depository Participants. Shareholders holding nVm n§OrH¥ V/AÚVZ H$ao§& H$mJµOr ên go eoà aIZo dmbo physical shares are requested to send/update their eoàYmaH$mo§ go AZwamoY h¡ {H$ do _ogg© H$mdr© {\ ZQoH$ àm. e-mail address with M/s. Karvy Fintech Pvt. {b. H$mo, Omo ~¢H$ H$m eoà A§VaU EOo§Q h¡, `Wm erKŒ AnZm Ltd., the Share Transfer Agent of the Bank, at the earliest. B©-_ob nVm ôOo§/AÚVZ H$ao§& D) Information on Accounts K) ImVmo§ g§~§Yr gyMZm Shareholders seeking any information/clarifi cation ImVmo§ go g§~§{YV H$moB© gyMZm/ñnîQrH$aU _m§JZo dmbo eoàYmaH$mo§ with regard to annual accounts are requested to address their letters to the Company Secretary, Corporation go AZwamoY h¡ {H$ do dm{f©H$ _hmg^m go H$_-go-H$_ gmV {XZ Bank, Investor Services Department, Head Offi ce, nhbo H§$nZr g{Md, H$mnmo©aoeZ ~¢H$, {ZdoeH$ godm {d^mJ, à.H$m. Mangaluru – 575 001, Karnataka State at least seven _§Jbyé - 575 001, H$Zm©QH$ amÁ` H$mo {bIo§ Vm{H$ ewHŒ dma, 21 days in advance of the Annual General Meeting so as OyZ, 2019 H$mo em_ 5.00 ~Oo VH$ àmßV hmo Am¡a ~¢H$ gyMZm to reach latest by Friday, June 21, 2019 by 5.00 p.m. to enable the Bank to keep the information ready. V¡`ma aI gH|$& E) Consolidation of Folios L) \ mo{b`mo H$m g_oH$Z Shareholders, who hold shares in physical form in Omo eoàYmaH$ eoà H$mJµOr ên _o§ EH$ go A{YH$ \ mo{b`mo _o§ EH$ multiple folios in identical names or joint names in the same order of names, are requested to send the share hr Zm_ go `m Zm_ Ho$ Cgr HŒ _ _o§ g§`wº Zm_ go Ym[aV H$aVo h¢, certifi cates to the Share Transfer Agent of the Bank, CZgo AZwamoY h¡ {H$ EH$ hr \ mo{b`mo _o§ g_oH$Z hoVw eoà à_mUnÌmo§ M/s Karvy Fintech Pvt. Ltd., for consolidation into a H$mo ~¢H$ Ho$ eoà A§VaU EOo§Q, _ogg© H$mdr© {\ ZQoH$ àm. {b. H$mo single folio. ôOo§& F) Change of Status M) pñW{V _o§ n[adV©Z Non-Resident Indian Shareholders are requested A{Zdmgr ^maVr` eoàYmaH$mo§ go AZwamoY h¡ {H$ do ~¢H$ Ho$ eoà to inform the Share Transfer Agent of the Bank, M/s Karvy Fintech Pvt. Ltd., in respect of shares held in A§VaU EOo§Q _ogg© H$mdr© {\ ZQoH$ àm. {b. H$mo H$mJµOr ên _o§ Ym[aV physical form or to inform their respective Depository eoàmo§ Ho$ g§~§Y _o§ `m eoàmo§ Ho$ Sr_¡Q ên _o§ YmaU Ho$ _m_bo _o§ AnZo Participants if shares are held in dematerialised form g§~§{YV {Snm°{OQar nm{Q©{gno§Q H$mo {ZåZ{b{IV gyMZm Vwa§V Xo… immediately of: H$) ñWmB© {Zdmg Ho$ {bE ^maV bm¡QZo na {Zdmgr h¡{g`V _o§ a) The change in the Residential status on return to India for permanent settlement. n[adV©Z& b) The particulars of the Bank Account maintained I) ^maV Ho$ ~¢H$ ImVo go g§~§{YV ã`moao, nyam Zm_, emIm, ImVm in India with complete name, branch, account àH$ma, ImVm g§»`m, {nZ g{hV ~¢H$ H$m nVm Xo§, `{X nhbo type, account number and address of the Bank Zht {X`m hmo& with PIN, if not furnished earlier.

22 M) eoàYmaH$mo§ Ho$ _Vm{YH$ma… G) Voting Rights of Shareholders: A{Y{Z`_ (`Wm g§emo{YV Am¡a 18.01.2013 go à^mdr) H$s In terms of the provisions of Section 3 (2E) of the Act, Ymam 3 (2B©) Ho$ àmdYmZmo§ Ho$ AZwgma, Ho$§Ð gaH$ma H$mo Nmo‹SH$a no shareholder of the Bank, other than the Central Government shall be entitled to exercise voting rights H$moB© ^r eoàYmaH$ ~¢H$ Ho$ g^r eoàYmaH$mo§ Ho$ Hw$b _Vm{YH$ma Ho$ in respect of any shares held by him/her in excess of ten Xg à{VeV go A{YH$ CZHo$ Ûmam Ym[aV {H$Ýht eoàmo§ Ho$ g§~§Y _o§ per cent of the total voting rights of all the shareholders _Vm{YH$ma H$m à`moJ H$aZo Ho$ {bE nmÌ Zht hmoJm& of the Bank. In terms of Clause 68(i) of Corporation Bank (Shares A{Y{Z`_ H$s Ymam 3 (2B©) Ho$ àmdYmZmo§ Ho$ AYrZ, H$mnmo©aoeZ and Meetings) Regulations, 1998, subject to the ~¢H$ (eoà Am¡a ~¡RH$) {d{Z`_, 1998 Ho$ IÊS 68(i) Ho$ provisions contained in Section 3 (2E) of the Act, each AZwgma, dm{f©H$ _hmg^m H$s VmarI go nhbo a{OñQa H$s ~§Xr shareholder who has been registered as a shareholder as H$s VmarI H$mo eoàYmaH$ Ho$ ên _o§ n§OrH¥ V àËòH$ eoàYmaH$ H$mo on the date of the closure of the Register, prior to the date of the Annual General Meeting, shall have one hñV àXe©Z na EH$ dmoQ hmoJm Am¡a MwZmd Ho$ _m_bo _o§ CZHo$ Ûmam vote on show of hands and in case of a poll shall have Ym[aV àËòH$ eoà hoVw EH$ dmoQ hmoJm& one vote for each share held by him.

N) AÝ` gyMZm H) Other information H$) n`m©daU gOJVm nhb Ho$ g_W©Z _o§ ~¢H$ Zo go~r a) In support of the green initiative, the Bank is (EbAmoSrAma) {d{Z`_Z, 2015 Ho$ {d{Z`_ 36 Ho$ sending soft copies of the Notice of Annual General Meeting and Annual Report to all the shareholders àmdYmZmo§ Ho$ AZwgma, AnZo {Snm°{µOQar nm{Q©{gno§Q/~¢H$ Ho$ who have registered their email ids with their a{OñQ—ma Ed§ eoà A§VaU EOo§Q Ho$ nmg {OZ eoàYmaH$mo§ Zo Depository Participant/Registrar and Share AnZr B©-_ob AmB©Sr n§OrH¥ V H$admB© h¡, CÝho§ dm{f©H$ [anmoQ© Transfer Agent of the Bank, as per the provisions of H$s gm°âQ à{V`m± ôOZo H$m {ZU©` {b`m h¡& bo{H$Z gXñ` Regulation 36 of the SEBI (LODR) Regulations, 2015. However, Members may note that the H¥ n`m `h ZmoQ H$ao§ {H$ 22dt dm{f©H$ _hmg^m H$s gyMZm Notice of the 22ndAnnual General Meeting and the Am¡a dm{f©H$ [anmoQ© 2018-19 SmCZbmoS H$aZo Ho$ {bE ~¢H$ Annual Report for 2018-19 will also be available H$s do~gmBQ www.corpbank.com na ^r CnbãY hmoJr& on the Bank’s website www.corpbank.com for their nydmo©º XñVmdoµOmo§ H$s H$mJµOr à{V`m± {ZarjU hoVw H$m`©{Xdgmo§ download. The physical copies of the aforesaid documents will also be available at the Bank’s na gm_mÝ` H$mamo~ma g_` Ho$ Xm¡amZ _§Jbyé _o§ ~¢H$ Ho$ àYmZ Head Offi ce at Mangaluru, for inspection during H$m`m©b` _o§ ^r CnbãY hmo§Jr& B©-g§gyMZm Ho$ {bE n§OrH¥ V normal business hours on working days. Even H$admZo Ho$ ~mdOyX, gXñ`, AZwamoY H$aZo na SmH$ go {ZewëH$ after registering for e-communication, members H$mJµOr ên _o§ Eogr gyMZm àmßV H$aZo Ho$ {bE nmÌ h¢& {H$gr are entitled to receive such communication in physical form, upon making a request for the same g§gyMZm Ho$ {bE eoàYmaH$ ~¢H$ H$s {d{eîQ B©_ob AmB©Sr by post free of cost. For any communication, the [email protected] H$mo `m SmH$ Ûmam ^r AZwamoY ôO shareholders may also send requests to the Bank’s gH$Vo h¢& dedicated email ID -: [email protected] or by post. I) eoàYmaH$ H¥ n`m Ü`mZ Xo§ {H$ ~¡RH$ _o§ H$moB© Cnhma/Cnhma- Hy nZ {dV[aV Zht {H$`m OmEJm & b) Shareholders may kindly note that no gift/gift coupon will be distributed at the meeting.

{ZXoeH$ _§Sb Ho$ AmXoe Ûmam By order of the Board of Directors H¥ Vo H$mnmo©aoeZ ~¢H$ for CORPORATION BANK

ñWmZ … _§Jbyé (Eg. Ho$. Xme) Place : Mangaluru (S. K. DASH) {XZm§H$ … 30.05.2019 H§$nZr g{Md Date : 30.05.2019 COMPANY SECRETARY

ANNUAL REPORT 2018-19 23 ì`m»`mË_H$ H$WZ EXPLANATORY STATEMENT Agenda Item No. 2: _X g§»`m 2 a) The Bank is in the business of the banking and related H$) ~¢H$ ~¢qH$J Am¡a g§~§{YV {HŒ `mH$bmnmo§ Ho$ H$mamo~ma _o§ h¡ & g§à{V ~¢H$ H$s services activities. Presently, the Authorised Capital of the àm{YH¥ V ny±Or `3000 H$amo‹S (énE VrZ hOma H$amo‹S _mÌ) h¡ & 31 _mM© Bank is `3000 crore. The paid-up equity share capital of the st 2019 H$mo ^maV gaH$ma H$mo A{Y_mZV… eoà Omar {H$E OmZo Ho$ ~mX Bank as on 31 March, 2019 was `1198.84 crore, which was increased from `333.11 crore on 31st March, 2018 ~¢H$ H$s àXÎm B©p¹Qr eoà ny±Or 31 _mM©, 2018 H$s `333.11 H$amo‹S pursuant to preferential allotments of equity shares to the go ~‹TH$a 31 _mM© 2019 H$mo `1198.84 H$amo‹S hmo J`r& Central Government. I) ~ogb III _mZX§S Ho$ A§VJ©V 31 _mM©, 2019 H$mo ~¢H$ _o§ {ZåZm§{H$V b) Under Basel III norms, the Bank is required to maintain the ny§Or n`m©ßVVm AZwnmV H$mo ~ZmE aIZo H$s Amdí`H$Vm h¡: following Capital Adequacy Ratios as on March 31, 2019 : Bench Mark by Under Basel III ~ogb - III Ho$ A§VJ©V _mM© - 2019 VH$ ~o§M _mH© (%) March – 2019 (%) gm_mÝ` B©p¹Qr Qrà 1 ny§Or 5.50 Common Equity Tier 1 Capital (grB©Qr I ny§Or) (CET1 Capital) 5.50 ny§Or g§ajU ^§Sma 1.875 Capital Conservation Buffer 1.875 A{V[aº Qrà 1 (EQr 1 ny§Or) 1.50 Additional Tier 1 (AT 1 Capital) 1.50 Hw$b Qrà 1 ny§Or 8.875 Total Tier 1 Capital 8.875 Tier II 2.00 Qrà - II 2.00 Total CRAR 10.875 Hw$b grAmaEAma 10.875 c) Presently, shareholding of Government of India in the Bank J) dV©_mZ _o§ ~¢H$ _o§ ^maV gaH$ma H$s eoàYm[aVm ~¢H$ H$s Hw$b àXÎm ny±Or is 93.50% of the total paid-up capital of the Bank. The H$m 93.50% h¡ & 31 _mM© 2019 H$mo Omo{I_ ^m[aV AmpñV`mo§ H$s capital fund to Risk Weighted Assets as on March 31, 2019 VwbZm _o§ ny±OrJV {Z{Y`m± {ZåZmZwgma h¢ : was as under. % of capital funds 31.03.2019 31.03.2019 Omo{I_ ^m[aV to Risk Weighted Basel III (Amount ( am{e H$amo‹S AmpñV`mo§ Ho$ _wµH$m~bo Assets (under ` in crore) ~ogb III énò _o§) ny§OrJV {Z{Y H$m % Basel III) % III Risk Weighted Assets (~ogb Ho$ 1,12,956.89 – A§VJ©V) % (RWA) Omo{I_ ^m[aV AmpñV`m§ Tier I Capital 11,885.07 10.52 1,12,956.89 – (AmaSãë`yE) Tier II Capital 2,012.23 1.78 Qrà - I ny§Or 11,885.07 10.52 Total Capital Funds 13,897.30 12.30 Qrà - II ny§Or 2,012.23 1.78 Hw$b ny§OrJV {Z{Y 13,897.30 12.30 d) To support the projected business requirement and at the same time maintain healthy CRAR, in line with Capital K) Ano{jV H$mamo~ma d¥{Õ H$mo àmßV H$aZo Am¡a gmW hr ñdñW grAmaEAma Raising Plan and as per reform agenda undertaken, the H$mo ~ZmE aIZo Ho$ {bE ~¢H$ H$mo ~mµOma go A{V[aº ny§Or OwQmZo H$s Bank may require raising additional capital from the market Amdí`H$Vm h¡& as well. L) {Z`m_H$ AZwnmbZmo§ H$mo gw{Z{üV H$aZo Am¡a H$mamo~ma d¥{Õ Ho$ bú` e) In order to ensure regulatory compliances and to meet the requirement of additional capital funds for expanding H$mo àmßV H$aZo d Cg_o§ d¥{Õ H$aZo VWm gm_mÝ` CYmaH$mar CÔoí` go and achieving the targeted business growth and for general A{V[aº ny§OrJV {Z{Y H$mo àmßV H$aZo Ho$ {bE ~¢H$ Eogo _yë` na àËòH$ lending purposes, the Bank proposes to issue equity shares `2 Ho$ B©p¹Qr eoàmo§ H$mo go~r (AmBgrSrAma) {d{Z`_ 2018 Ho$ of `2 each at such price as may be determined close to AZwgma gmd©O{ZH$ {ZJ©_, eoà Omar H$aHo$ `m Ah©VmàmßV g§ñWmJV the issue, by way of follow-up on Public Offer or Rights

24 {Zdoe(emo§) `m {H$gr AÝ` Cn`wº _mÜ`_ Ûmam Ed§ ~ogb III Ho$ Issue or Qualifi ed Institutional Placement(s), or such other suitable means under the SEBI (ICDR) Regulations, 2018 1 2 {Xem{ZXo©emo§ Ho$ AZwgma A{V[aº Qrà- Ed§ Qrà - Ho$ A§VJ©V AmZo and also other securities qualifying as Additional Tier I or dmbr AÝ` à{V^y{V`mo§ _o§ `5000 H$amo‹S VH$ g_JŒ gr_m VH$ eoà Tier II capital as per Basel III Guidelines with an overall Omar H$aZo H$m àñVmd H$aVm h¡& limit of `5000 crore. M) Cnamoº Ho$ g§X^© _o§ eoà Omar H$aZo hoVw {Z~§Ymo§ H$mo _yV© ên XoZo Ho$ f) For reasons aforesaid, an enabling resolution is therefore {bE ~moS© H$mo n`m©ßV A{YH$ma Ed§ {ddoH$ àXmZ H$aZo dmbm g§H$ën H$mo proposed to be passed to give adequate fl exibility and discretion to the Board to fi nalize the terms of the issue. nmg H$aZo H$m àñVmd {H$`m OmVm h¡& Bg CÔoí` Ho$ {bE ~¢H$ H$mo AnZo For this purpose the Bank is required to obtain the consent eoàYmaH$mo§ go EH$ {deof àñVmd Ûmam AZw_{V boZo H$s Amdí`H$Vm of the shareholders by means of a special resolution. Hence h¡ & AV… Cnamoº àñVmd Ho$ {bE AmnH$s AZw_{V hoVw AmJŒh {H$`m your consent is requested to the above proposal. OmVm h¡& g) The present resolution is also proposed in order to enable the Board of Directors of the Bank to issue the equity N) dV©_mZ g§H$ën Cn`wº g_`, VarH$m, àr{_`_ Am¡a AÝ` eVmoª na shares, and or Tier I/Tier II capital at an appropriate time, B©p¹Qr eoàmo§ Am¡a `m Qrà - I/Qrà -II ny§Or H$mo Omar H$aZo Ho$ {bE mode, premium and other terms. ~¢H$ Ho$ {ZXoeH$ _§Sb H$mo gj_ ~ZmZo H$m àñVmd H$aVm h¡& h) The proposed issuance of Equity Shares in terms of the O) {deof g§H$ën Ho$ AmbmoH$ _o§ B©p¹Qr eoàmo§ H$m àñVm{dV {ZJ©_rH$aU Special Resolution will be in conformity with the provisions g_ñV bmJy H$mZyZmo§ Ho$ àmdYmZ Ho$ AZwên hmoJm& of all applicable laws. P) AmnHo$ {ZXoeH$JU Bg Zmo{Qg _o§ gd©àW_ Bg {deof g§H$ën H$s i) Your Directors recommend, the Special Resolutions as set out in the Notice. AZwe§gm H$aVo h¢ & None of the Directors of the Bank, Key Managerial Persons ~¢H$ H$m H$moB© ^r {ZXoeH$, _hËdnyU© à~§YZ ì`{º Am¡a CZHo$ g§~§{Y`mo§ and their relatives may be deemed to be interested or H$mo AnZr eoàYm[aVm H$s gr_m VH$, H$mo Nmo‹SH$a Cnamoº g§H$ën(nmo§) concerned in the aforementioned Resolution(s), except to _o§ Z Vmo H$moB© {hV h¡ Am¡a Z hr {H$gr àH$ma go g§~§{YV h¡& the extent of their shareholding, if any, in the Bank.

{ZXoeH$ _ÊSb Ho$ AmXoe go By order of the Board of Directors for CORPORATION BANK H¥ Vo H$mnmo©aoeZ ~¢H$

ñWmZ : _§Jbyé (Eg.Ho$. Xme) Place : Mangaluru (S. K. DASH) {XZm§H$ : 30.05.2019 H§$nZr g{Md Date : 30.05.2019 COMPANY SECRETARY

1. 31 _mM©, 2019 H mo g_mßV df© Ho boIm-nar{jV VwbZ-nÌ Ed§ 1. The Board of Directors has pleasure in presenting the bm^-hm{Z boIm g{hV ~¢H H$s dm{f©H [anmoQ© àñVwV H aVo hwE {ZXoeH Annual Report together with Audited Balance Sheet and Profi t and Loss Account of the Bank for the year ended _§Sb H mo àgÞVm hmo ahr h¡& 31st March, 2019. 2. {ZînmXZ H$s EH$ PbH : 2. Performance at a Glance: 2.1 31 _mM© 2019 H mo ~¢H H m Hw b H mamo~ma `3,05,819.05 H amo‹S h¡, 2.1 The total business stood at `3,05,819.05 crore as on ` Omo {H 31 _mM© 2018 Ho 3,03,184.79 go A{YH ahm& 31st March 2019 over the business fi gure of `3,03,184.79 2.2 31 _mM©, 2019 H mo ~¢H H$s Hw b O_mam{e`m± `1,84,567.84 h¡, crore as on 31.03.2018. ` O~{H `h 31.03.2018 H mo 1,83,315.95 H amo‹S Wm& 2.2 The total deposits of the Bank stood at `1,84,567.84 2.3 Hw b O_mam{e`mo§ _o§ H mgm H m {hñgm 29.52% (31.03.2018) crore as on 31.03.2019 whereas it stood at `1,83,315.95 go ~‹TH$a 31.59% (31.03.2019) hmo J`m h¡& Am¡gV H mgm _o§ crore as on 31st March, 2018. gmb-Xa-gmb AmYma na `557.60 H amo‹S (1.10%) go d¥{Õ hwB©& 2.3 CASA share in total deposit has improved from 29.52% `h 31.03.2018 Ho `50,523.59 H amo‹S go 31.03.2019 H mo (31.03.2018) to 31.59% (31.03.2019). Average CASA `51,081.19 H amo‹S VH nhw±M J`m& Am¡gV Eg~r 3.90% H$s d¥{Õ has grown by `557.60 crore (1.10%) y-o-y basis. It Ho gmW 31.03.2018 Ho `38,416.71 H amo‹S go 31.03.2019 has reached to `51,081.19 crore as on 31.03.2019 from `50,523.59 crore as on 31.03.2018. Average ` H mo 39,913.26 H amo‹S hmo J`m h¡& Am¡gV grE 7.76% H$s H _r SB has grown by 3.90% from `38,416.71 crore as on Ho gmW 31.03.2018 Ho `12,106.88 H amo‹S go 31.03.2019 H mo 31.03.2018 to `39,913.26 crore as on 31.03.2019. `11,167.93 H amo‹S hmo J`m h¡& Average CA decreased by 7.76% from `12,106.88 crore 2.4 ~¢H Zo G$U Omo{I_ à~§YZ g§~§Yr AnZr Zr{V Ho AZwên JwUdÎmm`wº as on 31.03.2018 to `11,167.93 crore as on 31.03.2019. G$U AmpñV`mo§ _o§ {dñVma H aZo _o§ AnZm {ddoH nyU© X¥pîQH moU nyU© 2.4 The Bank continued its prudent approach in expanding gmdYmZrnyd©H ~ZmE aIm& ~¢H H m G$U Am§H ‹Sm `1,382.37 H amo‹S quality credit assets in line with its policy on Credit Risk (1.15%) H$s d¥{Õ Ho gmW 31 _mM© 2018 Ho `1,19,868.84 Management more cautiously. The Bank’s credit fi gure stood at `1,21,251.21 crore as on 31.03.2019 as against ` Ho _wH m~bo 31.03.2019 H mo 1,21,251.21 H amo‹S Ho ñVa VH `1,19,868.84 crore as on 31st March, 2018, increased by nhw±Mm& {dÎm df© Ho Xm¡amZ G$U {dñVma hoVw àmW{_H$Vm àmßV joÌ, `1,382.37 crore (1.15%). _Ü`_ AmH$ma Ho H mnmo©aoQ VWm E_EgE_B© Ho VhV G$U ~‹TmZo na Ü`mZ 2.5 Credit-Deposit Ratio stood at 65.69% as on 31.03.2019 H|${ÐV {H `m J`m& as compared to 65.39% as on 31.03.2018. 2.5 31.03.2018 Ho 65.39% H$s VwbZm _o§ 31.03.2019 H mo 65.69% 2.6 The Bank continued its more and more focus on recovery G$U-O_m AZwnmV ahm& of NPAs even through specifi ed drive and by devoting 2.6 ~¢H Zo J¡a-{ZînmXH AmpñV`mo§ H$s dgybr _o§ {d{eîQ VarH mo§ Am¡a Á`mXm more time. During the fi nancial year, the Bank effected g_` XoH a AnZm A{YH$m{YH à`mg Omar aIm& {dÎm df© Ho Xm¡amZ ~¢H a cash recovery and upgradation of NPAs of `5192.76 Zo JV df© H$s `4508.76 H amo‹S H$s VwbZm _o§ `5192.76 H amo‹S J¡a- crore as compared to `4508.76 crore in the previous fi nancial year. {ZînmXH AmpñV`mo§ H$s ZH X dgybr VWm CÞ`Z {H `m h¡& 2.7 The bank posted a Net loss of `6,332.98 crore as against 2.7 ~¢H H$mo JV df© Ho `4,053.94 H amo‹S H$s {Zdb hm{Z Ho _wH m~bo a Net loss of `4,053.94 crore in the previous year. `6,332.98 H amo‹S H$s {Zdb hm{Z hwB© h¡& 2.8 As on 31.03.2019, the Bank had 9972 functional units 2.8 31.03.2019 H mo nyao Xoe _o§ \¡ br ~¢H H$s 9972 H m`m©Ë_H BH mB`m± spread across India comprising of 2432 Branches, 3015 Wt {OZ_o§ 2432 emImE§, 3015 EQrE_ Am¡a 4525 emIma{hV ~¢qH J ATMs and 4525 Branchless banking units. BH mB`m± h¢& 3. Income Analysis 3. Am` {díbofU: 3.1 Interest Income of the Bank decreased by `2,005.70 3 1 ` . ~¢H H$s ã`mO Am` df© 2017-18 Ho 17,628.33 H amo‹S _o§ crore (11.38%) from `17,628.33 crore in the year go `2,005.70 H amo‹S (11.38%) H$_ hmoH$a df© 2018-19 _| 2017-18 to `15,622.63 crore in the year 2018-19 and `15,622.63 H$amo‹S> ah JB© Am¡a {dÎm df© 2017-18 Ho Xm¡amZ Ho Interest expenses decreased by `2,675.95 crore from ã`mO ì`` `12,790.11 H amo‹S go `2,675.95 H$s H _r hmoH$a ` 12,790.11 crore during the fi nancial year 2017-18

26 {dÎmr` df© 2018-19 Ho Xm¡amZ `10,114.16 H amo‹S ahr & Bgr to `10,114.16 crore during the year 2018-19. The Net Ad{Y Ho Xm¡amZ {Zdb ã`mO Am` _o§ `670.25 H amo‹S (13.85%) Interest Income recorded a growth of `670.25 crore H$s d¥{Õ XO© hwB©& [13.85%] during the same period. (` H$amo‹S> _| ` in crore)

Particulars 2017-18 2018-19 % n[adV©Z {ddaU Change in % Am` INCOME ã`mO Am` Interest Income 17,628.33 15,622.63 (11.38) ã`mOoVa Am` Non-Interest Income 2,313.08 1,872.07 (19.07) Hw$b Am` Total Income 19,941.41 17,494.70 (12.27) ì`` EXPENDITURE ã`mO ì`` Interest Expenditure 12,790.11 10,114.16 (20.92) n[aMmbZ ì`` Operating Expenses 3,200.88 3,486.06 8.91 Hw$b ì`` Total Expenditure 15,990.99 13,600.22 (14.95) n[aMmbZ bm^ Operating Profi t 3,950.42 3,894.48 (1.42) àmdYmZ Ed§ AmH$pñ_H$VmE§ (H$a a{hV) Provisions & Contingencies (Excl. Tax) 10,631.28 11,943.15 12.34 H$a nyd© bm^ Profi t before Tax (6,680.86) (8,048.68) 20.47 H$a hoVw àmdYmZ Provision for Tax (2,626.92) (1,715.70) (34.69) {Zdb bm^ Net Profi t (4,053.94) (6,332.98) 56.22

3.2 ~¢H H$s Hw b Am` (ã`mO Am` Am¡a ã`mOoVa Am` H m `moJ) {nNbo 3.2 The total Income of the Bank [total of Interest Income {dÎm df© Ho `19,941.41 H amo‹S H$s VwbZm _o§ `2,446.71 H amo‹S and Non-Interest Income] stood at to `17,494.70 crore (12.27%) H$s H _r XO© H aVo hwE `17,494.70 H amo‹S hmo JB©& as against `19,941.41 crore in the previous fi nancial year recording a fall of `2,446.71 crore [12.27%]. 3.3 à_wI joÌmo§ go àmßV ã`mOoVa Am` {dÎmr` df© 2017-18 Ho `1057.66 3.3 Non-Interest Income from Core Areas increased by `43.57 H amo‹S go `43.57 H$amo‹S (4.12%) ~T>H a {dÎmr` df© 2018-19 crore [4.12%] from `1057.66 crore in the fi nancial year _o§ `1,101.21 hmo JB© & Hw$b ã`mOoVa Am` 31.03.2018 Ho$ 2017-18 to `1,101.21crore in the fi nancial year 2018-19. `2,313.08 H amo‹S go 19.07% H$s H _r XO© H aVo hwE 31.03.2019 The Total Non-Interest Income has decreased to H mo `1,872.07 H amo‹S hmo JB© & `1,872.07 crore as on 31.03.2019 from `2,313.08 crore as on 31.03.2018, thereby came down by 19.07%. 3.4 {dÎmr` df© 2018-19 Ho Xm¡amZ n[aMmbZ ì``mo§ _o§ 8.91% H$s d¥{Õ 3.4 The Operating Expenses has shown a increase of 8.91% hwB© h¡ Am¡a `h {dÎmr` df© 2017-18 Ho `3,200.88 H amo‹S H$s VwbZm during the fi nancial year 2018-19 and stood at `3,486.06 ` _o§ 3,486.06 H amo‹S ahm& crore as compared to `3,200.88 crore in 2017-18. 3.5 ñQm\ na ì`` df© 2017-18 Ho `1,592.82 H amo‹S go ~‹TH a df© 3.5 Staff expenses increased from `1,592.82 crore during FY 2018-19 Ho Xm¡amZ `1,746.95 H amo‹S hmo J`m & 2017-18 to `1,746.95 crore during FY 2018-19.

4. H$s_V-bmJV A§Va {díbofU Spread Analysis: (` H$amo‹S> _| ` in crore) d¥{Õ Growth Particulars 2017-18 2018-19 ã`m¡ao g_J« % Absolute Am¡gV H$m`©erb {Z{Y`m± Average Working Funds 2,43,337.00 2,01,824.92 (41,512.07) (17.06) Hw$b ã`mO Am` Total Interest Income 17,628.33 15,622.63 (2,005.70) (11.38) ì`` {H$`m J`m Hw$b ã`mO Total Interest Expended 12,790.11 10,114.16 (2,675.65) (20.92) ã¶mO H$s_V-bmJV A§Va Interest Spread 4,838.22 5,508.47 670.25 13.85

ANNUAL REPORT 2018-19 27 ã`m¡ao Particulars 2017-18 2018-19 {Z{Y`mo§ na à{V\$b Yield on Funds 7.24% 7.74% {Z{Y`mo§ H$s bmJV Cost of Funds 5.26% 5.01% A{J«‘m| na Am¶ Yield on Advances 8.91% 9.43% O‘mam{e¶m| H$s bmJV Cost of Deposits 5.74% 5.40% {Zdb ã`mO _m{O©Z Net Interest Margin 2.32% 3.05%

5. n[aMmbZ bm^ 5. Operating Profi t: 5.1 n[aMmbZ bm^ 31.03.2018 Ho `3,950.42 H amo‹S H$s VwbZm _o§ 5.1 The Operating Profi t stood at `3,894.47 crore as at the 31.03.2019 H mo `3,894.47 H amo‹S hmo J`m& end of March 2019, as compared to `3,950.42 crore as on 31.03.2018. 5.2 _mM© 2019 H$s {V_mhr Ho Xm¡amZ n[aMmbZ bm^ _mM©, 2018 Ho$ 5.2 Operating Profi t during March 2019 Quarter stood at Xm¡amZ Ho `989.45 H amo‹S H$s VwbZm _o§ `693.77 H amo‹S ahm& `693.77 crore as against `989.45 crore during March 2018. 5.3 _mM© 2019 {V_mhr hoVw {Zdb ì`mO _m{O©Z _mM© 2018 {V_mhr Ho 5.3 NIM for the March 2019 Quarter stood at 2.63% as against 2.55% Ho gmnoj 2.63% ahm& 2.55% during March’18 Quarter. 5.4 AmpñV Cn`mo{JVm AZwnmV (Am¡gV H$m`©erb {Z{Y`mo§ _o§ gH$b bm^ 5.4 The Asset Utilisation Ratio [percentage of Operating H m à{VeV) {dÎmr` df© 2017-18 Ho 1.62% Ho _wH m~bo {dÎmr` Profi t to Average Working Funds] stood at 1.93% for the fi nancial year 2018-19 compared to 1.62% for the . df© 2018-19 _o§ 1 93% ahm& fi nancial year 2017-18. 6. àmdYmZ 6. Provisions: 6.1 AemoÜ` Ed§ g§{X½Y G$Umo§ hoVw àmdYmZ, _mZH AmpñV`mo§, H amYmZ, 6.1 The Provision for Bad and Doubtful Debts, Provision on {Zdoe _yë`õmg Ed§ AÝ` hoVw àmdYmZ {dÎmr` df© 2017-18 Standard Assets, Taxation, Investment Depreciation and others aggregated to `10,227.45 crore in the fi nancial year ` _o§ 8004.36 H amo‹S H$s VwbZm _o§ {dÎmr` df© 2018-19 _o§ 2018-19 as compared to `8004.36 crore in the fi nancial `10,227.45 H amo‹S ahm& year 2017-18.

7. Net Profi t and Dividend: 7. {Zdb bm^ VWm bm^m§e 7.1 After considering the provisions, the Net loss of the Bank 7.1 àmdYmZmo§ H$mo Ü`mZ _o§ aIZo Ho ~mX, 31.03.2018 H mo g_mßV df© stood at `6,332.98 crore for the fi nancial year 2018-19 as H$mo ~¢H H$s {Zdb hm{Z `4053.64 H amo‹S H$s VwbZm _o§ {dÎm df© against the net loss of `4053.94 crore for the year ended 2018-19 Ho {bE {Zdb hm{Z `6,332.98 H amo‹S ahm& 31.03.2018. 7.2 The Board of Directors of the Bank has not recommended 7.2 {ZXoeH _§Sb Zo {dÎm df© 2018-19 hoVw H moB© ^r bm^m§e g§ñVwV Zht any Dividend for the fi nancial year 2018-19. {H `m h¡& Year Net Profi t/Loss Growth % {Zdb bm^/hm{Z [` in crore] df© d¥{Õ % [` H$amo‹S _o§] 2015-16 -506.48 (-)186.69% 2015-16 -506.48 (-)186.69% 2016-17 561.21 (+)210.81% 2016-17 561.21 (+)210.81% 2017-18 -4053.94 (-)822.36% 2017-18 -4053.94 (-)822.36% 2018-19 -6332.98 (+)56.26% 2018-19 -6332.98 (+)56.22%

28 8. {Zdb _m{b`V Ed§ grAmaEAma: 8. Net Worth and CRAR: 8.1 ~¢H H$s {Zdb _m{b`V 31 _mM©, 2018 Ho `10,845.85 H amo‹S go 8.1 The Net Worth of the Bank improved to `16,564.86 crore as on 31st March, 2019 from `10,845.85 crore as on ` 31 _mM©, 2019 H mo 16,564.86 H amo‹S ~‹T JB©& 31st March, 2018. 8.2 df© Ho Xm¡amZ, ^maV gaH ma Zo ~¢H _o§ B©p¹Qr ny±Or Ho ên _o§ `11,641 8.2 During the year, Government of India has infused H amo‹S bJm`m& VXZwgma, ~¢H Zo àr{_`_ g{hV `11,641 H amo‹S VH `11,641 crore towards equity capital in the Bank. H$s am{e VH$ A{Y_mZr Am~§QZ Ho ên _o§ B©p¹Qr ny§Or àmßV H$s& BgHo Accordingly, the Bank raised equity capital by way of {bE ~¢H Zo `27.40 à{V B©p¹Qr eoà àr{_`_ na `2/- A§{H V preferential issue amounting upto `11,641 crore including premium. For this, Bank has issued 86,90,47,619 equity _yë` Ho 86,90,47,619 B©p¹Qr eoà Omar {H E VWm A{Y_mZr shares of `2/- face value at a premium of `27.40 per AmYma na 11 AŠQy~a, 2018 H mo ^maV gaH ma H mo Am~§{QV {H E equity share and allotted to Government of India on Ed§ `24.68 à{V B©p¹Qr eoà àr{_`_ na `2/- A§{H$V _yë` Ho preferential basis on October 11, 2018 and 340,55,47,226 340,55,47,226 B©p¹Qr eoà Omar {H E VWm A{Y_mZr AmYma na equity shares of `2/- face value at a premium of `24.68 29 _mM©, 2019 H mo ^maV gaH ma H mo Am~§{QV {H E& per equity share and allotted to Government of India on preferential basis on March 29, 2019. 8.3 ""H m°nmo©aoeZ H mnmo©aoeZ ~¢H H _©Mmar ñQm°H IarX `moOZm 2018: 8.3 Corporation Bank Employee Stock Purchase Scheme ~¢H H _©Mmar ñQm°H IarX `moOZm 2018''(CORPBANK ESPS 2018: “Corporation Bank Employee Stock Purchase 2018) H mo bm°ÝM {H `m J`m Wm, {Og_o§ ~¢H Ho 10,00,00,000 Scheme 2018” (CORPBANK ESPS 2018) was launched, (Xg H$amo‹S), àËòH `2/- A§{H V _yë` Ho , ~¢H Ho g^r `mo½` offering 10,00,00,000 (Ten Crore) new equity shares of H _©Mm[a`mo§ H mo ESPS na ~¢H H$s ~moS© H$s à{V^y{V Am~§QZ face value `2/- each of the Bank for cash at an issue price g{_{V Ûmam {ZYm©[aV à{V B©p¹Qr eoà Ho ê$n _o§ `17.61 H$s àr{_`_ of `19.61 per equity share including a premium of `17.61 per equity share as determined by the Securities Allotment g{hV,19.61 à{V B©p¹Qr eoà H$s Omar _yë` na, ZE B©pŠdQr eoàmo§ Committee of the Board of the Bank on ESPS to all the H$s noeH e H$s JB© Wr& ESPS Ho VhV B©pŠdQr eoàmo§ Ho ên _o§ ~¢H Eligible Employees of the Bank. The Bank was able to H r Hw b àñVm{dV A{^XmZ H m 54.04% ~¢H àmßV H aZo _o§ gj_ Wm achieve 54.04% of total subscription offered as equity Am¡a A{YH V_ 14,489 H _©Mm[a`mo§ Zo Bgo IarX {H `m& shares under ESPS and as many as 14,489 staff subscribed to the issue. Cº `moOZm _o§ H moB© ^m¡{VH n[adV©Z Zht {H `m J`m Wm Am¡a `h `moOZm There was no material change in the said scheme and SEBI (eoà AmYm[aV H _©Mmar bm^) {d{Z`_, 2014 Ho AZwnmbZ the scheme was in compliance with SEBI (Share Based _o§ Wr& go~r (SBEB) {d{Z`_, 2014, {d{Z`_, 2014 Ho VhV Employee Benefi ts) Regulations, 2014. The relevant àmg§{JH àH QrH aU àmg§{JH àH QrH aU ~¢H H$s do~gmBQ _o§ {H `m disclosure under this Regulation 14 of SEBI (SBEB) J`m h¡ Am¡a ~¢H H$s do~gmBQ www.corpbank.com. _o§ do~ qbH _o§ Regulation, 2014 is made in the website of the Bank and n‹TZo Ho {bE CnbãY h¡& BgHo Abmdm, go~r (SBEB) {d{Z`_, available to read in the web link in the website of the Bank www.corpbank.com. Further, as per Regulation 13 of the 2014 Ho {d{Z`_Z 13 Ho AZwgma, ~¢H Ho gm§{d{YH Ho§ Ðr` boIm SEBI (SBEB) Regulations, 2014, a certifi cate from the narjH mo§ go EH à_mU nÌ dm{f©H Am_ ~¡RH _o§ eoàYmaH mo§ Ho gm_Zo Statutory Central Auditors of the Bank be placed before aIm OmZm Mm{hE {H `h `moOZm {XZm§H 07.09.2018 H mo Am`mo{OV the shareholders in the Annual General Meeting that the AgmYmaU Am_ ~¡RH _o§ ~¢H Ho eoàYmaH mo§ Ûmam {deof àñVmd Ho scheme has been implemented in accordance with the AZwgma nm[aV H r JB© h¡& Special Resolution passed by the shareholders of the Bank in the Extraordinary General Meeting held on 07.09.2018. 8 4 . ny±Or na Omo{I_ g_m`mo{OV AmpñV AZwnmV (grAmaEAma) Omo {dÎmr` 8.4 The Capital to Risk Adjusted Assets Ratio (CRAR) stood df© 31 _mM© 2018 Ho 9.23% H$s VwbZm _o§ 31 _mM© 2019 H mo at 12.30% (Basel III) as on 31st March, 2019 as against 12.30% (~ogb III) ahm& 9.23% as on 31st March, 2018.

àdJ© Category ~ogb III Basel III _mM© March 2018 _mM© March 2019 {Q>`a I ny±Or Tier I Capital 7.27% 10.52% {Q>`a II ny±Or Tier II Capital 1.96% 1.78% `moJ Total 9.23% 12.30%

ANNUAL REPORT 2018-19 29 8.5 B©p¹Qr na à{Vbm^, à{V eoà AO©Z Am¡a à{V eoà ~hr _yë` {nNbo 8.5 The Return on Equity, Earnings Per Share and Book {dÎm df© Ho HŒ _e… (`36.50%), (`35.30) Ed§ `65.12 H$s Value per Share for the Financial Year 2018-19 stood at (46.21%), `(30.06) and `27.63 respectively, as against VwbZm _o§ 31 _mM© 2019 H mo HŒ _e… (46.21%), (30.06) Ed§ (36.50%), (`35.30) and `65.12 respectively for the `27.63 ahm& {dÎmr` df© 2018-19 Ho Xm¡amZ ~¢H H$s B©p¹Qr ny±Or previous Financial year. The impact of raising of Equity H$s d¥{Õ Ho à^md H mo n[aH bZ hoVw {b`m J`m h¡& Capital of the Bank given effect during Financial Year 2018-19, for this calculation. 9. g‘o{H$V boIo: 9. Consolidated Accounts: 9.1 ^maVr` [aµOd© ~¢H Ho {Xem{ZXo©emo§ Ho AZwgma, ~¢H Zo 31 _mM©, 2019 9.1 As per RBI guidelines, the Bank has consolidated the Ho AnZo {dÎmr` boImo§ H m AnZr nyU© ñdm{_Ëd dmbr AZwf§Jr AWm©V² fi nancial accounts as at 31st March, 2019 with those of its H mn©~¢H {gŠ`w[aQrµO {b. Ho boImo§ Ho gmW g_oH Z {H `m h¡& 31 wholly owned Subsidiary viz., Corp Bank Securities Ltd. _mM©, 2019 Ho g_o{H$V {ddaU Ho AZwgma, H mn© ~¢H JŒwn H$s {Zdb As per the consolidated statement as on 31st March, _m{b`V `16651.45 H amo‹S ahr& {dÎm df© 2018-19 hoVw g_o{H V 2019, the Net Worth of the Corp Bank group stood at n[aMmbZ bm^ 31.03.2018 Ho `3,956.03 H amo‹S H$s VwbZm `16651.45 crore. The consolidated Operating Profi t for the fi nancial year 2018-19 stood at `3,903.15 crore as against ` _o§ 3,903.15 H amo‹S ahm& {dÎm df© 2018-19 Ho Xm¡amZ ~¢H H$s `3,956.03 crore as at 31.03.2018. During the Financial g_o{H V {Zdb hm{Z, 31.03.2018 H mo g_mßV df© hoVw `4,049.93 Year 2018-19, consolidated Net loss of the Bank stood at H amo‹S H$s hm{Z Ho _wH m~bo `6,325.30 H amo‹S ahm& ~¢H Zo ^maVr` `6,325.30 crore, as against loss of `4,049.93 crore for the [aµOd© ~¢H Ho {Xem{ZXo©emo§ VWm ^maVr` gZXr boImH ma g§ñWmZ Ûmam year ended 31.03.2018. The Bank has complied with the {ZYm©[aV boIm _mZX§Smo§ H m AZwnmbZ {H `m h¡& RBI guidelines and the Accounting Standards prescribed by the Institute of Chartered Accountants of India.

10. ~¢H Ho godm-AmCQboQ 10. Bank’s Service Outlets: 10.1 31 _mM©, 2019 H mo g_mßV df© Ho Xm¡amZ ~¢H Ho Hw b godm AmCQboQ 10.1 The Bank’s total service outlets at the year ended 31st 9972 VH nhw±M JE {Og_o§ Xoe â _o§ 2432 emImE§, 3015 EQrE_ March, 2019 are 9972, comprising of 2432 branches, Am¡a 4525 emIm a{hV ~¢qH J BH mB`m± em{_b h¢& Hw b 2432 3015 ATMs and 4525 Branchless Banking Units across emImAmo§ _o§ go 588 emImE§ JŒm_rU joÌmo§ _o§ h¢, 794 emImE§ AY© ehar the country. Out of the total 2432 branches, 588 branches are in Rural areas, 794 in Semi-urban centres, Ho §Ðmo§ _o§, 518 emImE§ ehar Ho §Ðmo§ _o§ Am¡a 532 emImE§ _hmZJar` H|$Ðmo§ 518 in Urban areas and 532 in Metro centres. _o§ h¢& 10.2 The Bank now has a total of 34 zonal offi ces spread across 10.2 ~¢H Ho A~ Hw b 34 Am§M{bH H m`m©b` h¢ Omo ~ohVa {Z`§ÌU, the country to have a better control, monitoring and {ZJamZr Am¡a ~¢H Ho H mamo~ma Ho {dH mg hoVw emImAmo§ Ho gmW follow up with the branches for business development. AZwdV©Z H aVo h¢& ~¢H Ho _w§~B©, {X„r, ~o§Jbya, MoÞ¡, H mobH mVm Am¡a The Bank also has 6 Circle offi ces headed by General Managers operating at Mumbai, Delhi, Bengaluru, Ah_Xm~mX _o§ _hm à~§YH Ho AYrZ 6 _§Sb H m`m©b` ^r h¢& ò Chennai, Kolkata and Ahmedabad. The Circle _§Sb H m`m©b`, H mnmo©aoQ H m`m©b` Ho {dñVm[aV A§J Ho ên _o§ H m`© offi ces function as an extended arm of the Corporate H aVo h¢ Am¡a ò AnZo A{YH$ma joÌ _o§ Am§M{bH H m`m©b`mo§ Ho _ Offi ce, better equipped to support and drive business mÜ`_ go H mamo~ma {dH mg `moOZmAmo§ H m gh`moJ Ed§ g§MmbZ H aZo development plans through the Zonal Offi ces in their H$s ~ohVa pñW{V _o§ ho§& H mnmo©aoQ H m`m©b` Ho {OZ H m`moªª H mo _§Sb Command area. The Corporate offi ce functions that are delegated to Circle offi ces are Planning, Development H m`m©b`mo§ H mo àË`m`mo{OV {H `m J`m h¡, do h¢ Am`moOZm, {dH$mg and Resource Mobilisation, Credit Sanctions, Credit Ed§ g§gmYZ g§JŒhU, G$U _§Oyar, G$U Omo{I_ à~§YZ, dgybr Risk Management, Recovery and Legal, Human Ed§ {d{Y, _mZd g§gmYZ à~§YZ, gh`moJ godm Am¡a {ZarjU Ed§ Resource Management, Support Services and Inspection boIm-narjm& and Audit.

30 11. {dkmnZ Ed§ àMma 11. Advertisement and Publicity: 11.1 df© Ho Xm¡amZ ~¢H Ho ~Œ¢S Am¡a N{d {Z_m©U hoVw gKZ à`mg {H E JE& 11.1 During the year, concerted efforts were made for enhancing the brand and image of the Bank. The Bank ~¢H Zo AnZo CËnmXmo§, godmAmo§, ã`mO Xamo§ Ed§ {ZînmXZ go g§~§{YV continued to disseminate messages on its products, gyMZm JŒmhH mo§, eo`aYmaH mo§ VWm Am_ OZVm H mo g_mMma nÌmo§, services, interest rates and its performance, to the n{ÌH mAmo§, Qrdr M¡Zbmo§, E\ E_ ao{S`mo ñQoeZmo§, hmo{S>ªJ, Q—mÝgbmBQ customers, shareholders and the general public through do~gmBQ, EQrE_ BË`m{X Ho _mÜ`_ go {dkmnZmo§ Ed§ àMma Ho µO[aE advertisements and publicity in Newspapers, Periodicals, nhw±MmZm Omar aIm& TV Channels, FM Radio Stations, Hoardings, Translites, Website, ATMs, etc.

12. gaH mar H mamo~ma Am¡a ~¢H mí`moaoÝg 12. Government Business and Bancassurance: 12.1 31 _mM© 2019 H mo g_mßV df© hoVw ~¢H H m Hw b àË`j/AàË`j 12.1 The total Direct/Indirect tax, Customs duty and State st H a, gr_m ewëH VWm amÁ` H a g§JŒhU {nNbo df© Bgr Ad{Y Ho Tax collections of the Bank for the year ended 31 March, 2019 reached `49749 crore from 22.29 lakh ` Xm¡amZ g§JŒ{hV 25.97 bmI MmbmZmo§ go 61993 H$amo‹S H$s VwbZm challans as compared to `61993 crore from 25.97 lakh _o§ 22.29 bmI MmbmZmo§ go `49749 H$amo‹S ahm & ~¢H Zo {dÎmr` challans collected during the corresponding period last df© 2018-19 Ho Xm¡amZ gaH mar H mamo~ma go `7.62 H amo‹S H$s Hw b year. The Bank has earned an aggregate income of `7.62 Am` A{O©V H r& crore from Govt. Business during the Financial Year 2018-19. 12.2 ~¢H Zo OrdZ ~r_m H$mamo~ma Ho VhV 31 _mM©, 2018 H mo 12.2 Under Life Insurance Business, Bank has canvassed `18422.31 `729.35 bmI Ho àr{_`_ VWm bmI Ho H _reZ 4,55,190 policies with premium of `8902.82 lakh and Ho gmW 4,49,448 nm{b{g`mo§ H$s VwbZm _o§ 31 _mM© 2019 H mo earned commission of `536.04 lakh as at 31st March, `8902.82 bmI Ho àr{_`_ VWm `536.04 bmI Ho H _reZ 2019,(this includes 4,52,400 enrolments made under Ho gmW 4,55,190 nm{b{g`mo§ H m àMma {H `m (Bg_o§ `1245.09 Pradhan Mantri Jeevan Jyoti Bima Yojana with premium bmI Ho àr{_`_ VWm `176.92 bmI Ho$ H$_reZ Ho gmW àYmZ of `1245.09 lakh and commission of `176.92 lakh) as against 4,49,448 policies with premium of `18422.31 _§Ìr OrdZ Á`mo{V ~r_m `moOZm Ho VhV 4,52,400 Zm_m§H Z em{_b lakh and commission of `729.35 lakh as at 31st March, h¢) & 2018.

12.3 ~¢H Zo J¡a-OrdZ H$mamo~ma Ho VhV 31 _mM©, 2018 H mo 12.3 Under Non-life Business, Bank has canvassed 12,66,081 `2601.52 bmI Ho àr{_`_ VWm `342.87 bmI Ho H _reZ policies with premium of `2308.50 lakh and commission Ho gmW 12,46,518 nm{b{g`mo§ H r VwbZm _o§ 31 _mM©, 2019 H mo of `223.18 lakh as at 31st March, 2019, (this includes `2308.50 bmI Ho àr{_`_ VWm `223.18 bmI Ho H _reZ Ho 12,11,913 enrolments made under Pradhan Mantri Suraksha Bima Yojana with premium of `145.43 lakh 12,66,081 ` gmW nm{b{g`mo§ H m àMma {H `m (Bg_o§ 145.43 bmI and earned commission of `24.24 lakh) as against Ho àr{_`_ Ho gmW àYmZ _§Ìr gwajm ~r_m `moOZm Ho 12,11,913 12,46,518 policies with premium of `2601.52 lakh and Zm_m§H Z em{_b h¢ VWm `24.24 bmI H m H _reZ A{O©V {H `m )& commission of `342.87 lakh as at 31st March, 2018.

12.4 ~¢H Zo ñdmñÏ` ~r_m H mamo~ma Ho VhV 31 _mM© 2018 Ho$ `181.58 12.4 Bank has earned a commission of `155.33 lakh for the st bmI H$s VwbZm _o§ 31 _mM©, 2019 H mo g_mßV Ad{Y hoVw `155.33 period ended 31 March, 2019 under Health Insurance business as against `181.58 lakhs as at 31st March, 2018. bmI H m H _reZ A{O©V {H `m& 12.5 Bank has earned a commission of `17.35 lakh for ` 12.5 ~¢H Zo å`yMwAb \§ S H mamo~ma Ho VhV 31 _mM© 2018 Ho 22.12 the period ended 31st March, 2019 under Mutual bmI H$s VwbZm _o§ _mM©, 2019 H mo g_mßV df© hoVw `17.35 bmI Fund Business as against `22.12 lakhs as at 31st March, H m H _reZ A{O©V {H `m& 2018.

ANNUAL REPORT 2018-19 31 13. H mnmo©aoQ gm_m{OH {Oå_oXmar 13. Corporate Social Responsibility As a responsible Corporate citizen, the Bank initiated

{Oå_oXma H mnmo©aoQ ZmJ[aH Ho ê$n _o§, ~¢H Zo {dÎmr` df© 2018- several welfare measures aiming at the under privileged 2019 Ho Xm¡amZ gm_{OH àmW{_H VmAmo§ _o§ AnZr à{V~ÕVm H$s section of the society in fulﬁ llment of its commitment ny{V© hoVw g_mO Ho Aën gw{dYm àmßV dJ© Ho {bE H B© H ë`mUH mar to social priorities during the ﬁ nancial year 2018-19.

Cnm` ewê$ {H E h¢& 13.1 Corporation Bank Economic Development 13.1 H mnmo©aoeZ ~¢H Am{W©H {dH mg _§M (gr~rB©SrE\ ) Foundation [CBEDF] H mnmo©aoeZ ~¢H Am{W©H {dH mg _§M (n§) ~¢H H$s EH bm^-a{hV The Corporation Bank Economic Development Foundation® a non-profi t economic outfi t Trust has Am{W©H BH mB© Ho ên _o§ H mnmo©aoQ {_eZ Ho AZwên AnZo gm_m{OH been pursuing its objectives of fulfi lling social obligation Xm{`Ëd H mo {Z^mVo Am ahm h¡& ~¢H H$s g^r gr Eg Ama J{V{d{Y`m± in tune with corporate mission. All CSR activities of the gr~rB©SrE\ Ho VËdYmZ _o§ Am`mo{OV H$s OmVr h¢& df© 2018-19 Bank are conducted under the aegis of CBEDF. Financial Ho Xm¡amZ gr~rB©SrE\ Ho _mÜ`_ go gm_m{OH gamoH ma H$s {d{^Þ grants to the extent of `371.65 lakhs were disbursed for n[a`moOZmAmo§ Ho {ZînmXZ hoVw `371.65 bmI Ho {dÎmr` AZwXmZ execution of various projects of social concerns during the year 2018-19 through CBEDF. Amongst others, {dV[aV {H E JE& {dÎm df© 2018-19 Ho Xm¡amZ gr~rB©SrE\ Ûmam CBEDF implemented following major CSR projects {Zînm{XV J{V{d{Y`mo§ _o§ Hw N ~‹So grEgAma àmoOoŠQ {ZåZ{b{IV during FY 2018-19. h¢- 13.2 CSR Activities through “CorpKiran” – Association of 13.2 ""H mn© {H aU'' - ~¢H Ho H m`©nmbH mo§ H$s npËZ`mo§ H m EH g_yh Spouses of Bank Executives Ho O[aE grEgAma J{V{d{Y`m± For the welfare of underprivileged, through “CorpKiran”, ~¢H Zo {dÎm df© 2018-19 Ho Xm¡amZ Aëngw{dYm àmßV bmoJmo§ Ho Bank granted `22.29 lakhs to various Institutions during H ë`mU hoVw ""H mn© {H aU'' Ho _mÜ`_ go {d{^Þ g§ñWmAmo§ H mo 2018-19. The major activities included providing Bench, Desk, Cupboards, Computers, Water purifi er, `22.29 bmI àXmZ {H E& à_wI {HŒ `mH bmnmo§ _o§ Jar~ ñHy br Pedestral Fans etc., to poor school children and inmates NmÌmo§ H mo VWm AZmWml_mo§, d¥Õml_mo§, emar[aH Ed§ _mZ{gH ên go of orphanages, old age homes, destitute homes, helping Aj_ bmoJmo§ H mo ghm`Vm XoZo dmbo {Zam{lV J¥hmo§ Ho {Zdm{g`mo§ H mo physically and mentally challenged people, Ambulance ~o§M, SoñH , Ab_mar, H åß`yQa, dmQa ß`yar\ mà, noSoñQ—b n§Io Am{X to Kalyanam Karoti (NGO), Meerut. Three number XoZm, H ë`mU_ H amo{V (EZOrAmo), _oaR H mo Eå~wbo§g XoZm, {e_moJm of dialysis machines to Shimoga Institutes of Medical BÝgQrQ>çyQ Am°\ _o{SH$b gmBÝg H mo 3 Sm`{b{gg CnH aU XoZm Sciences, Shimoga. em{_b h¢& 13.3 CSR through Corporation Bank Self Employment Training Institutes [COBSETI] 13.3 H mnmo©aoeZ ~¢H ñdamoµOJma à{ejU g§ñWmZ The Corporation Bank Self Employment Training (grAmo~rEgB©QrAmB©) Institutes are operating in Chikmagalur and Kodagu H mnmo©aoeZ ~¢H ñdamoµOJma à{ejU g§ñWmZ (grAmo~rEgB©QrAmB©) Districts catering to the training needs of the rural un- {MH _Jbya Am¡a H moSJw {Obmo§ _o§ pñWV h¡, Omo ~oamoµOJma `wdH mo§ H$s employed youth hailing from both the districts, where the Bank has the Lead Bank responsibility. Both the ì`mdgm{`H à{ejU Amdí`H VmAmo§ H mo nyam H aVo h¢ Ohm± ~¢H H mo Institutes put together trained 1517 unemployed youth AJŒUr ~¢H H$s {Oå_oXmar h¡& df© 2018-19 Ho Xm¡amZ XmoZmo§ g§ñWmZmo§ in various skill development training programmes Zo Hw b {_bmH a 1517 ~oamoµOJma `wdH mo§ H mo {d{^Þ H m¡eb {dH mg during the year 2018-19. Since inception, both the à{ejU H m`©HŒ _mo§ Ho$ A§VJ©V à{e{jV {H `m& ñWmnZm g_` go boH a institutes have trained about 17924 unemployed youth XmoZmo§ g§ñWmZmo§ Ûmam bJ^J 17924 ~oamoµOJma `wdH$mo§ à{e{jV {H `m with a cumulative settlement rate of 78%. The Bank ` d g§M`r {ZnQmZ Xa 78% ahm& ~¢H Zo df© 2018-19 Ho Xm¡amZ has incurred an expenditure of 70 lakh during the year 2018-19, for conducting the training programmes at ` XmoZmo§ g§ñWmAmo§ _o§ à{ejU H$m`©H«$_ Am`mo{OV H$aZo Ho$ {bE 70 both the Institutes. Both the instiitues have been graded bmI H m ì`` {H `m h¡& df© 2018 hoVw JŒm_rU {dH mg _§Ìmb`, as “AA” by the Ministry of Rural Development for the ^maV gaH ma Ûmam XmoZmo§ g§ñWmZmo§ H mo “AA’’ JŒoS {X`m J`m h¡& year 2018.

32 13.4 ""JŒm_rU Aä`wX` {dÎmr` gmjaVm Ý`mg'' (OrEE\ Eb Q—ñQ) 13.4 CSR through “Grameena Abhyudaya Financial Ho O[aE grEgAma Literacy Trust “[GAFL Trust] The Bank has sponsored Grameena Abhyudaya Financial ~¢H Zo {d{^Þ Ho ÝÐmo§ _o§ "{dÎmr` gmjaVm Ho$ÝÐ' (E\ Ebgr) Literacy Trust for establishing “Financial Literacy ñWm{nV H aZo Ho {bE JŒm_rU Aä`wX` {dÎmr` gmjaVm Ý`mg H mo Centers” [FLCs] at various locations. These Centers àm`mo{OV {H$`m h¡& ò H|$Ð bmoJmo§ H mo AnZr Am{W©H Amdí`H$VmAmo§ educate people about the usefulness of the Bank account for all their economic needs and empowerment. The Ed§ ge{º$H$aU Ho {bE ~¢qH$J gw{dYmAmo§ H$s Cn`mo{JVm Ho ~mao Centers also provide counseling for the borrowers on the _| {e{jV H$aVo h¢ & ò Ho ÝÐ, ~r_m, ~¢H _o§ ~MV, Am¡a G$U go basis of fi nancial aspects including insurance, savings and g§~§{YV CËnmX/godmAmo§ Am{X g{hV {dÎmr` nhbwAmo§ Ho AmYma na credit related products/services in the Bank etc. As on CYmaH Vm©Amo§ H mo nam_e© ^r XoVo h¢& 31.03.2019 VH H r pñW{V 31.03.2019, GAFLCC Trust has established 4 District Ho AZwgma OrEE\ Ebgrgr Q—ñQ Zo 4 {µObm ñVar` Am¡a 21 ãbm°H level and 21 Block level FLC centers. ñVar` E\ Ebgr H|$Ð ñWm{nV {H$E h¢& The Bank has provided `45.00 Lakh for meeting the recurring cost of the Trust, during the year 2018-19. The ~¢H Zo df© 2018-19 Ho$ Xm¡amZ Cº$Q—ñQ H$s AmdVr© bmJV hoVw Trust has conducted 1814 Financial Literacy Camps at `45.00 bmI àXmZ {H `m h¡& Q—ñQ Zo Jm±dmo§, ñHy bmo§, H m°boOmo§, villages, schools, colleges, other institutions, SHGs and AÝ` g§ñWmAmo§, ñdghm`Vm g_yhmo§ d AÝ` ñWmZmo§ _o§ 1814 {dÎmr` others, covering about 88,464 persons.

gmjaVm {e{da Am`mo{OV {H E h¢ {OZ_o§ 88,464 ì`{º`mo§ Zo ^mJ 13.5 CSR through SHG formation {b`m& During the year, the Bank has spent `141.72 Lakhs for 13.5 EgEMOr {Z_m©U Ho O[aE grEgAma promoting 14,172 new SHGs in 6 districts of Karnataka. Through this major CSR initiative, Bank has helped df© Ho Xm¡amZ, ~¢H Zo H Zm©QH Ho Nh {Obmo§ _o§ 14172 ZE ñd about 141720 families of the members of SHG groups ghm`Vm g_yhmo§ H mo ~‹Tmdm XoZo Ho {bE `141.72 bmI H m ì`` to become fi nancially empowered. They now have access {H `m h¡& Bg ~‹Sr grEgAma J{V{d{Y Ho _mÜ`_ go BZ EgEMOr Ho to banking facilities including deposits and loans. They gXñ`mo§ dmbo 141720 n[admamo§ H$s _XX H aHo CÝho§ {dÎmr` geºVm also receive training in record maintenance and account keeping of their respective groups. Regular meetings of àXmZ H$s h¡& A~ BZH$s nhw±M O_m Am¡a G$U gw{dYmAmo§ g{hV the groups encourage the members to freely interact and ~¢qH J gw{dYmAmo§ VH h¡& CÝho§ AnZo g§~§{YV g_yh ~hr ImVmo§ H m become more vocal. AZwajU VWm boIm aIZo na à{ejU {X`m J`m& g_yhmo§ H$s {Z`{_V 14. Progressive use of Offi cial Language: ~¡RH mo§ Ho Am`moOZ go gXñ`mo§ H mo CÝ_wº {dMma {d_e© H aZo Ed§ AnZr ~mV aIZo hoVw àmoËgmhZ {_bVm h¡& 14.1 The Bank ensures compliance of the provision of Offi cial Languages Act, 1963, Offi cial Languages Rules, 1976 14. amO^mfm H m àJm_r à`moJ and various directions with regard to Offi cial Language 14.1 ~¢H , amO^mfm A{Y{Z`_, 1963, amO^mfm {Z`_, 1976 VWm issued from time to time by Department of Offi cial Language, Ministry of Home Affairs, Department of amO^mfm {hÝXr Ho H m`m©Ýd`Z Ho g§~§Y _o§ amO^mfm {d^mJ, J¥h Financial Services, Ministry of Finance and the Reserve _§Ìmb`, {dÎmr` godmE§ {d^mJ, {dÎm _§Ìmb` Am¡a ^maVr` [aµOd© ~¢H Bank of India. Ûmam g_`-g_` na Omar {ZXo©emo§ H m AZwnmbZ gw{Z{üV H aVm h¡& 14.2 The overall performance of the Bank in the fi eld of offi cial 14.2 amO^mfm H m`m©Ýd`Z Ho joÌ _o§ df© 2018-19 Ho Xm¡amZ ~¢H H m language implementation during the year 2018-19 has been very good. Bank has been awarded second g_JŒ {ZînmXZ AÀNm ahm h¡& ~¢H H mo amO^mfm {d^mJ, J¥h _§Ìmb`, prize by Dept. of OL, MHA, Govt. of India as excellent ^maV gaH ma Ûmam X{jU Ed§ X{jU n{ü_ joÌ _o§ ZamH mg, _§Jbyé co-ordinator of TOLIC, Mangalore in South and South Ho$ CËH¥ îQ g§`moOZ Ho {bE {ÛVr` nwañH ma go gå_m{ZV {H `m J`m h¡& West region. h_mao H moÀMr, {dO`dmSm, H mobH mVm, RmUo, amOH moQ, ~o§Jbyé Our Kochi, Vijayawada, Kolkata, Thane, Rajkot, (X{jU) Am±M{bH H m`m©b`mo§ Am¡a am`nwa _oZ emIm H mo amO^mfm Bangalore (South) Zonal offi ces and Raipur Main Branch received prizes from their respective Town Offi cial H m`m©Ýd`Z _o§ CËH¥ îQ {ZînmXZ hoVw CZHo g§~§{YV ZJa amO^mfm Language Implementation Committee (TOLIC) for H m`m©Ýd`Z g{_{V (Qm°{bH ) go nwañH ma àmßV hwE h¢& their excellent performance in O.L. implementation.

ANNUAL REPORT 2018-19 33 14.3 ~¢H ZJa amO^mfm H m`m©Ýd`Z g{_{V (ZamH mg), _§Jbya, ~obJm§d 14.3 The Bank is the convener of Town Offi cial Language Implementation Committee (TOLIC), Mangalore, Zo„ya Ed§ _{S>Ho$ar H m g§`moOH h¡& gXñ` g§JRZmo§/~¢H mo§ Ho ñQm\ Ho Belgaum, Nellore and Madikeri. Various activities are bm^mW© hoVw ha df© {d{^Þ H m`©H bmn {H E OmVo h¢& conducted every year for the benefi t of staff members of member organisations/banks. 14.4 {dÎm df© Ho Xm¡amZ g§gXr` amO^mfm g{_{V H$s Vrgar Cn-g{_{V Zo h_mao H mo`§~Îmya Am±M{bH H$m`m©b` Ed§ JwdmhmQr emIm H m Xm¡am 14.4 During the Financial Year, the Third Sub-Committee of the Committee of Parliament on Offi cial Language {H `m Am¡a amO^mfm na g§gXr` g{_{V H$s AmboI Ed§ gmú` g{_{V visited our Coimbatore Zonal offi ce and Guwahati Zo h_mao RmUo Am±M{bH H m`m©b` H m Xm¡am {H `m& {d{^Þ {ZarjUmo§ Ho branch and Documents and Evidence Committee of Xm¡amZ ~¢H Ûmam amO^mfm H m`m©Ýd`Z _o§ ~¢H Ûmam {H E Om aho à`mgmo§ Committee of Parliament on Offi cial Language has H$s gamhZm H$s& {dÎmr` df© Ho Xm¡amZ, {dÎmr` godmE± {d^mJ, {dÎm inspected our Zonal offi ce Thane. During various inspections the efforts being made by the Bank in _§Ìmb` Zo bIZD$, {X„r (X{jU), Jmodm, MoÞ¡ Am¡a Hw Þya emIm Offi cial Language Implementation has been appreciated. H m {ZarjU {H `m VWm amO^mfm H m`m©Ýd`Z _o§ ~¢H Ûmam {H E Om aho During the Financial Year, Dept. of Financial Services, à`mgmo§ H$s gamhZm H$s& Ministry of Finance inspected Zonal Offi ces at Lucknow, Delhi (South), Goa, Chennai as well as Kunnur Branch 14.5 ~¢H Zo ZJa amO^mfm H m`m©Ýd`Z g{_{V, _§Jbya Ho gmW g§`wº and appreciated the efforts being made by the Bank in VËdmdYmZ _o§ {XZm§H 27 {gV§~a 2018 H mo ^mfm`r gm¡hmX© {Xdg Offi cial Language Implementation. (qhXr {Xdg) H m Am`moOZ {H `m& 14.5 Bank jointly organized the “Linguistic Harmony Day (Hindi Diwas)” on 27th Sept. 2018 with Town Offi cial 14.6 ~¢H amO^mfm {hÝXr H mo bmoH {à` ~ZmZo Ho$ {bE {d{^Þ Language Committee, Mangalore. gm_{JŒ`m± àH m{eV H aVm h¡& Bg_o§ ~¢H H$s {V_mhr {hÝXr J¥h n{ÌH m 14.6 The Bank is bringing out various publications for ""_§Jbm'', ZJa amO^mfm H m`m©Ýd`Z g{_{V H$s Amoa go àH m{eV popularizing Offi cial Language Hindi. These include H$s OmZo dmbo {hÝXr n{ÌH m ""{ÌYmam em{_b h¡& BZ àH meZmo§ Ho “Mangala” – quarterly Hindi house-journal of the Bank and “Tridhara”- Hindi Journal published on behalf of Abmdm ~¢H Zo H m`©embm gm_JŒr na nwñVH VWm {d{^Þ àH ma Ho TOLIC, Mangalore. Apart of these publications, bank ~Œmoea ^r àH m{eV {H E h¡& has published study materials on Hindi Workshop and various brochures. 14.7 àYmZ H$m`m©b` Ed§ Am±M{bH H m`m©b`mo§ Ûmam ñQm\ gXñ`mo§ Ho bm^mW© {hÝXr H m`©embmE§ Am¡a à{ejU ^r {Z`{_V ên go 14.7 Hindi workshops and training programmes were conducted by Head Offi ce and Zonal Offi ces on a Am`mo{OV {H E JE& regular basis for the benefi t of staff members. 14.8 H m`m©b` _o§ amO^mfm H m`m©Ýd`Z Ho Abmdm ~¢H Zo X{jU H$Þ‹S 14.8 Besides the O.L. implementation work in the offi ces qhXr {ejH g§K, g§V Abmo{g`g H m°boO _§Jbyé Ho qhXr g§K O¡go bank has conducted various programmes for the benefi t g§JRZmo§ go {_bH a _§Jbyé Ho Amgnmg Ho NmÌmo§ Ed§ AÜ`mnH$mo§ Ho$ of students and teachers of the colleges in and around Mangaluru in association with organizations such as bm^mW© {d{^Þ H m`©HŒ _ Am`mo{OV {H E h¢& Dakshin Kannada Hindi Shikshak Sangh, Hindi Sangh of St. Alosyus College Mangaluru. 15. ~¢H Ûmam àm`mo{OV AZwf§{J`mo§ Am¡a AÝ` BH mB`mo§ H m {ZînmXZ 15. Performance of Subsidiaries and other units sponsored by the Bank 15.1 H mn© ~¢H {gŠ`w[aQrµO {b{_QoS… ~¢H H$s nyU© ñdm{_Ëddmbr 15.1 Corp Bank Securities Limited: The Bank’s wholly AZwf§Jr H mn© ~¢H {gŠ`w[aQrµO (gr~rEgEb) Zo {dÎm df© 2018- owned subsidiary, Corp Bank Securities Limited (CBSL) 19 Ho Xm¡amZ `9.73 H amo‹S H$s Hw b Am`, `8.69 H amo‹S H m H a has earned a total income of `9.73 crore, posted Profi t Before Tax of `8.69 crore and Profi t After Tax of nyd© bm^ VWm 7.68 H amo‹S H m H a Cnam§V bm^ (Mmby df© Ho {bE `7.68 crore (after accounting for tax provision of `2.41 `2.41 H amo‹S Ho H a àmdYmZ, nyd© dfmoª Ho {bE `1.42 H amo‹S H m crore for current year, reversal of tax provision of `1.42 H a àmdYmZ, 0.002 H amo‹S H$s AmñW{JV H a AmpñV Ho àË`mdV©Z crore for earlier years, deferred tax asset of `0.02 crore

34 Ho boIm§H Z Ho ~mX) A{O©V {H `m h¡ O~{H {dÎm df© 2017-18 for Financial Year 2018-19, while the corresponding hoVw ò Am§H ‹So HŒ _e… `6.77 H amo‹S, `5.61 H amo‹S Am¡a `4.01 fi gures for FY 2017-18 were `6.77 crore, `5.61 crore and `4.01 crore respectively (after accounting of tax ` H amo‹S (dV©_mZ df© Ho$ H$a àmdYmZ 1.12 H$am‹‹‹oS>, nyd©dVu dfm] provision of `1.12 crore for current year, tax provision Ho$ {bE H$a àmdYmZ `0.05 H$am‹oS>, AmñW{JV H$a AmpñV`m| Ho$ of `0.05 crore for earlier years, reversal of deferred tax àË`mdV©Z go `0.006 H$amo‹S> H$s am{e Ho$ boIm§H$Z Ho$ ~mX)Wo& asset of `0.006 crore). The Paid up Equity Share Capital 31.3.2019 H mo àXÎm B©p¹Qr eoà ny§Or `75 H amo‹S ahr O~{H remained at `75 crore as on 31.03.2019 while the Net A{Yeof Ho nwZ{Z©doe Ho gmW {Zdb _m{b`V `124.65 H amo‹S worth stood at `124.65 crore with the plough back of surplus. The Earning per Share for fi scal ended March, ` ahr& _mM© 2019 H mo g_mßV {dÎm df© hoVw à{V eoà AO©Z 1.02 2019 was `1.02 while it was `0.53 for the fi scal ended ahm O~{H _mM© 2018 H mo g_mßV {dÎm df© Ho {bE `h 0.53 Wm& March, 2018. The Company had launched equity H§$nZr å`wMwAb \§ S CËnmXmo§ Ho {dVaU Am¡a dm{UpÁ`H nÌmo§, O_m broking business for institutional clients in FY 2015-16. à_mUnÌmo§, Q—oµOar {~bmo§ Am{X O¡gr AZw_mo{XV à{V^y{V`mo§ H$s Q—oqSJ The Company also continues to pursue its other activity O¡go {HŒ `mH bmn Omar aIr hwB© h¡& of distribution of Mutual Fund Products and trading in approved Securities like Commercial Papers, Certifi cate of Deposits and Treasury Bills etc. 16. {ZXoeH _§Sb H$s g§aMZm 16. Constitution of Board of Director 16.1 31 _mM©, 2019 H mo g_mßV {dÎmr` df© Ho Xm¡amZ ~¢H Ho {ZXoeH 16.1 The following changes have taken place in the Board of _§Sb _o§ {ZåZ{b{IV n[adV©Z hwE h¢& Directors of the Bank during the fi nancial year ended 31st March, 2019. 16.2 lr E_. ^Jd§Vm amd H mo 1 _mM© 2019 go ~¢H Ho ~moS© _o§ A§eH m{bH$ J¡a-Am{YH m[aH {ZXoeH Ho ên _o§ Zm{_V {H `m J`m& 16.2 Shri M. Bhagavantha Rao was nominated as part-time Non-offi cial Director on the Board of the Bank with 16.3 gwlr nr. dr. ^maVr H mo ~¢H$ Ho$ ~moS© _o§ à~§Y {ZXoeH Am¡a _w»` effect from 1st March 2019. H m`©H mar A{YH mar Ho$ ê$n _o§ {Z`wº {H$`m J`m Am¡a {XZm§H$ 16.3 Ms P. V. Bharathi was appointed as the Managing 01.02.2019 H mo CÝhmo§Zo H m`©^ma JŒhU {H `m& Director and Chief Executive Offi cer on the Board of the Bank and assumed offi ce on 01.02.2019. 16.4 lr {~énmj {_lm H mo ~¢H Ho ~moS© _o§ H m`©nmbH {ZXoeH Ho ên _o§ {Z`wº {H `m J`m Am¡a {XZm§H 26.12.2018 H mo CÝhmo§Zo H m`©^ma 16.4 Shri Birupaksha Mishra was appointed as the Executive Director on the Board of the Bank and assumed offi ce on JŒhU {H `m& 26.12.2018. 16.5 2018-19 Ad{Y Ho Xm¡amZ {ZåZ{b{IV gXñ` ~¢H Ho {ZXoeH 16.5 The following members retired from the Board of the _§Sb go godm{Zd¥Îm hwE- Bank during the period-2018-19: • lr O` Hw _ma JJ©, ~¢H Ho à~§Y {ZXoeH Ed§ _w»` H$m`©nmbH$ • Shri Jai Kumar Garg, Managing Director and Chief Executive Offi cer of the Bank has ceased to be a A{YH mar 31 OZdar 2019 H mo AnZm H m`©H mb nyam hmoZo na 1 Managing Director and Chief Executive Offi cer from \ adar 2019 go à~§Y {ZXoeH Ed§ _w»` H m`©nmbH A{YH mar 1st February, 2019 on completion of his term on 31st Zht aho§Jo& January, 2019. 16.6 {ZXoeH _§Sb, ~moS©/~moS© H$s g{_{V`mo§ H$s ~¡RH mo§ _o§ {dMma-{d_e© 16.6 The Board places on record its appreciation for the Ho Xm¡amZ VWm ~¢H Ho {ZXoeH Ho nX na ahVo hwE AnZo H m`©H mb Ho guidance and counsel received from Shri Jai Kumar Garg during deliberations of the Board/Committees of Xm¡amZ ~¢H Ho ì`mnma g§MmbZ _o§ lr O` Hw _ma JJ© go àmßV _mJ©Xe©Z the Board and also in the conduct of the Bank’s business Ed§ {ddoH nyU© nam_e© hoVw CZH$s gamhZm H aVm h¡& during their tenure of offi ce as Director of the Bank. 17. {ZXoeH mo§ Ho Xm{`Ëd {ddaU 17. Directors’ Responsibility Statements {ZXoeH nwpîQ H aVo h¢ {H 31 _mM©, 2019 H mo g_mßV df© Ho dm{f©H The Directors confi rm that in the preparation of the st boImo§ H$s V¡`mar _|… Annual Accounts for the year ended 31 March, 2019 - 17.1 The applicable Accounting Standards had been followed 17.1 _hÎdnyU© {dMbZ, `{X H moB© h¡, Ho g§X^© _o§ C{MV ñnîQrH aU Ho along with proper explanation relating to material gmW bmJy boIm§H Z _mZH mo§ H m nmbZ {H `m J`m h¡& departures, if any.

ANNUAL REPORT 2018-19 35 17.2 boIm Zr{V`mo§ H m M`Z H aHo CÝho§ gVV ên go bmJy {H `m J`m VWm 17.2 Accounting Policies had been selected and applied them consistently and made judgments and estimates that Eogo AZw_mZ Am¡a àm¸ bZ {H E JE Omo `w{º$g§JV Am¡a {ddoH gå_V are reasonable and prudent so as to give a true and fair h¢ {H do {dÎm df© Ho A§V _o§ ~¢H H$s pñW{V Am¡a Cº Ad{Y Ho {bE view of the state of affairs of the Bank at the end of the ~¢H Ho bm^ Am¡a hm{Z H$s dmñV{dH Ed§ ghr Vñdra Xo§& fi nancial year and of the profi t and loss of the Bank for that period. 17.3 ~¢H H$s AmpñV`mo§ H mo gwa{jV aIZo VWm H nQ Ed§ AÝ` A{Z`{_VVmAmo§ H mo amoH Zo Am¡a nVm bJmZo hoVw Bg A{Y{Z`_ Ho$ 17.3 Proper and suffi cient care was taken for the maintenance of adequate Accounting Records in accordance with the g§~§{YV àmdYmZmo§ Ho AZwgma n`m©ßV boIm A{^boImo§ H mo aIZo Ho$ provisions of the relevant Acts for safeguarding the assets {bE C{MV Ed§ n`m©ßV gmdYmZr ~aVr JB©& of the bank and for preventing and detecting fraud and 17.4 dm{f©H boIo gVV g§ñWm AmYma na V¡`ma {H E JE Wo& other irregularities. 17.4 The Annual Accounts were prepared on a going concern 17.5 ~¢H Ûmam AZwnmbZ H aZo Ho {bE Am§V[aH {dÎmr` {Z`§ÌU {ZYm©[aV basis. {H E JE Wo Am¡a `h {H Eogo Am§V[aH {dÎmr` {Z`§ÌU n`m©ßV Wo Am¡a 17.5 Internal fi nancial controls had been laid down to be H maJa ên go H m_ H a aho Wo& followed by the Bank and that such internal fi nancial controls are adequate and were operating effectively. 17.6 g^r bmJy {d{Y`mo§ Ho àmdYmZmo§ Ho gmW AZwnmbZ gw{Z{üV H aZo Ho$ {bE C{MV àUm{b`m± {ZYm©[aV H$s JB© Wt Am¡a Eogr àUm{b`m± 17.6 Proper systems were in place to ensure compliance with the provisions of all applicable laws and that such systems n`m©ßV Wt Am¡a H maJa ên go H m_ H a ahr Wt& were adequate and operating effectively. 18. Acknowledgements 18. Am^ma 18.1 The Directors thank the shareholders, valued customers, 18.1 ~¢H Ho eoàYmaH mo§, à{VpîRV JŒmhH mo§, ew^qMVH mo§, eoà A§VaU well-wishers, Share Transfer Agent and correspondents EOo§Q Am¡a ^maV VWm ^maV Ho ~mha Ho à{V{Z{Y`mo§ H mo CZH$s of the Bank in India and abroad for their goodwill, gØmdZm, g§ajU VWm hm{X©H gh`moJ hoVw {ZXoeH JU YÝ`dmX patronage and support. km{nV H aVo h¢& 18.2 The Directors acknowledge with gratitude the valuable and timely advice, guidance and support received from 18.2 ^maV gaH ma, H Zm©QH gaH ma, ^maVr` [aµOd© ~¢H , ^maVr` Government of India, Government of Karnataka, à{V^y{V Ed§ {d{Z_` ~moS© (go~r), ~rEgB©, EZEgB©, EZEgSrEb, Reserve Bank of India, Securities and Exchange Board grSrEgEb, {d{^Þ amÁ` gaH mamo§, {dÎmr` g§ñWmAmo§ Am¡a ~¢H Ho of India (SEBI), BSE, NSE, NSDL, CDSL, various State Governments, Financial Institutions and the Statutory gm§{d{YH H|$Ðr` boIm narjH mo§ go ~¢H n[aMmbZ _o§ àmßV ~hw_yë` Central Auditors of the Bank, in the functioning of the Ed§ g_`mo{MV nam_e©, _mJ©Xe©Z Am¡a gh`moJ Ho {bE, {ZXoeH JU Bank. H¥ VkVmnyd©H Am^ma km{nV H aVo h¢& 18.3 The Directors place on record their deep appreciation of the valuable contribution of the members of the staff 18.3 {ZXoeH JU, df© Ho Xm¡amZ ~¢H H$s àJ{V _o§ _yë`dmZ gh`moJ XoZo hoVw at all levels for the progress of the Bank during the year g^r ñVa Ho ñQm\ gXñ`mo§ H$s gamhZm H aVo h¢ VWm AmZo dmbo dfmoª and look forward to their continued co-operation in _o§ H mnmo©aoQ bú`mo§ H$s àmpßV hoVw CZH$s gVV gh^m{JVm H$s Amem realisation of the corporate goals of the Bank in the years ahead. H aVo h¢& {ZXoeH$ _§Sb Ho$ {bE Am¡a CZH$r Amoa go For and on behalf of the Board of Directors

(nr. dr. ^maVr) (P. V. Bharathi) ñWmZ : _§Jbyé à~§Y {ZXoeH$ E§d Place : Mangaluru Managing Director & {XZm§H$ : 30.05.2019 _w»` H$m`©nmbH$ A{YH$mar Date : 30.05.2019 Chief Executive Ofﬁ cer

36 n«~§YZ {ddoMZ Am¡a {díbofU MANAGEMENT DISCUSSION AND ANALYSIS

1. _m¡{ÐH Zr{V 2018-19 1. Monetary Policy 2018-19 The RBI of India (RBI) in its fi rst Bi-monthly Monetary Policy ^maVr` [a‹Od© ~¢H (Ama~rAmB©) Zo 2018-19 Ho {bE AnZr nhbr Statement for 2018-19, projected the GDP growth to 7.4% in 7 4 {Û-_m{gH _m¡{ÐH Zr{V {ddaU _o§ OrSrnr _o§ . % VH d¥{Õ hmoZo H m 2018-19. AZw_mZ bJm`m Wm& The RBI remained committed of achieving consumer price Ama~rAmB© d¥{Õ H mo g_W©Z XoVo hwE JŒmhH _yë` gyMH m§H (grnrAmB©) index (CPI) infl ation medium-term target of 4% within a band 2 4 _wÐmñ\ r{V Ho +/- % H$s gr_m Ho gmW % Ho _Ü`-H m{bH bú` H$s of +/- 2%, while supporting growth. àmpßV hoVw à{V~Õ ahr& The retail infl ation (CPI) projection for the fi rst-half of FY19 nhbr {Û-_m{gH _m¡{ÐH Zr{V {ddaU 2018-19 _o§ {dÎm df© 19 Ho nydm©Y© Ho was 4.7%-5.1% and for the 2nd half of FY19 to 4.4% in its fi rst 4 7 5 1 19 {bEIwXam_wÐmñ\ r{V(grnrAmB©)H mAZw_mZ . %- . %Am¡a{dÎmdf© Bi-monthly Monetary Policy Statement for 2018-19. In the 4 4 2018 19 Ho Xygao ^mJ _o§ . % Wm& Xygar {Û_m{gH _m¡{ÐH Zr{V g_rjm _o§, - 2nd bi-monthly monetary policy review, the CPI infl ation for Ho {bE grnrAmB© _h§JmB© H mo g§emo{YV H a àW_ N>_mhr _o§ 4.8-4.9% Ed§ 2018-19 was revised to 4.8-4.9% in H1 and 4.7% in H2. In the Xÿgar N>_mhr _o§ 4.7% {H `m J`m& Vrgar {Û_m{gH _m¡{ÐH Zr{V g_rjm _o§, 3rd bi-monthly monetary policy review, the RBI had forecasted Ama~rAmB© Zo {dÎm df© H$s Xygar {V_mhr hoVw IwXam _wÐmñ\ r{V H$s Xa 4.6%, retail infl ation at 4.6% in the 2nd quarter of the fi scal and 4.8% {dÎm df© Ho CÎmamY© Ho {bE 4.8% nydm©Zw_m{ZV H$s Wr& Ama~rAmB© Ûmam AnZr in the 2nd half of the fi scal. The RBI in its 5th bi-monthly review, nm±Mdr {Û^m{fH g_rjm _o§ 2018-19 Ho CÎmamY© _o§ _wÐmñ\ r{V H mo 2.7% go lowered infl ation forecast in the range of 2.7% to 3.2% in the 3.2% Ho ~rM ZrMo ahZm AZw_m{ZV {H$`m J`m& NRr {Û_m{gH g_rjm _o§, 2nd half of 2018-19. In the 6th bi-monthly review, the infl ation _wÐmñ\ r{V bú`mo§ H mo g§emo{YV H a 2018-19 H$s Mm¡Wr {V_mhr Ho {bE target had been revised downward to 2.8% in the 4th quarter of 2.8%, {H `m J`m& 2018-19. 2018-19 H$s {Û_m{gH g_rjmAmo§ _o§ Kmo{fV _w»` _m¡{ÐH Ed§ VabVm Cnm` Key Monetary and Liquidity Measures announced in the {ZåZ{b{IV h¢ : bi-monthly reviews of 2018-19 are given below: • The cash reserve ratio (CRR) of scheduled banks remained • AZwgy{MV ~¢H mo§ H m Ama{jV ZH X AZwnmV (grAmaAma) g^r N: unchanged at 4.0% of net demand and time liability

{Û_m{gH _m¡{ÐH Zr{V`mo§ _o§ {Zdb _m§J Ed§ Amd{YH Xo`VmAmo§ (NDTL) in all the six bi-monthly monetary policies. 4 (EZSrQrEb) Ho % na An[ad{V©V ahm& • During FY 2018-19, the RBI increased the repo rate by • {dÎm df© 2018-19 Ho Xm¡amZ Ama~rAmB© Zo 6 OyZ 2018 Ed§ 01 AJñV 25 bps on 6th June, 2018 and on 1st August, 2018, raising 2018 H mo aonmo§ aoQ _o àË`oH$ ~ma 25 ~rnrEg H$s d¥{Õ H aVo hwE aonmo Xa H mo the repo rate to 6.25% and 6.50% respectively. HŒ _e: 6.25% Ed§ 6.50% {H `m& • Subsequently, the RBI had reduced the repo rate by 25 bps on 7th February, 2019 bringing the Repo rate down • 7 2019 25 ~mX _o§ Ama~rAmB© Zo \ adar H mo aonmo aoQ H mo ~rnrEg H _ H aHo to 6.25%. 6.25% {H `m& • Consequently, the reverse repo rate under the LAF was • n[aUm_ñdê$n , EbEEµ\ Ho A§VJ©V [adg© aonmo H mo 6.0% Ed§ E_EgE\ adjusted to 6.0%, and the MSF rate and the Bank Rate to aoQ Ed§ ~¢H aoQ H mo 6.50% na g_m`mo{OV {H `m J`m& 6.50%. • In the ‘Statement on Developmental and Regulatory • AnZr nm±Mdr {Û_m{gH _m¡{ÐH Zr{V g_rjm H$s KmofUm Ho ~mX Policies’ in its 5th bi-monthly monetary policy review, the

{dH mgmË_H Ed§ {Z`m_H Zr{V`mo§ na AnZo dº ì` _o§ Ama~rAmB© Zo àËòH RBI reduced the SLR by 25 basis points every calendar H¡ bo§Sa {V_mhr _o§ EgEbAma _o§ 25 ~o{gg A§H mo§ H$s H _r H$s h¡, O~ VH quarter until the SLR reaches 18% of the net demand {H EgEbAma {Zdb _m§J Ed§ Amd{YH Xo`VmAmo§ Ho 18% VH Zht and time liabilities (NDTL) as part of aligning it with the nhw±M Omò Vm{H Bgo VabVm H daoO AZwnmV go g§ao{IV {H `m Om gHo & liquidity coverage ratio (LCR). The fi rst round of reduction 25 ~o{gg A§H mo§ H$s nhbr H Qm¡Vr OZdar 2019 go Ama§^ {V_mhr go of 25 bps became effective from the quarter commencing EZSrQrEb Ho 19.25% go EgEbAma H mo H _ H aHo à^mdr hmoJr& January 2019, lowering the SLR to 19.25% of NDTL.

ANNUAL REPORT 2018-19 37 • Zrbm_r Ûmam AmodaZmBQ aonmo§ Ho A§VJ©V Mb {Z{Y H mo EbEEµ\ H$s Xa go • Liquidity under overnight repos has been continued to be ~¢H dma EZSrQrEb Ho 0.25% VWm 7 {XZmo§ Am¡a 14 {XZmo§ H$s gmd{Y provided at 0.25% of bank-wise NDTL at the LAF repo rate and liquidity under 7-day and 14-day term repos of up to 0 75 aonmo§ Ho A§VJ©V Mb {Z{Y H mo ~¢qH J àUmbr Ho EZSrQrEb Ho . % 0.75% of NDTL of the banking system through auctions. VH {X`m OmZm Omar aIm J`m h¡& Mb {Z{Y H mo ghO ~ZmE aIZo Ho {bE Continuation of daily one-day term repos and reverse repos X¡{ZH EH {Xdgr` gmd{Y [anmo Am¡a [adg© [anmo H mo Omar aIm J`m h¡& to smooth liquidity. 2018-19 Ho Xm¡amZ Ama~rAmB© Ûmam {H E Hw N _hËdnyU© {Z`m_H Ed§ Some of the important regulatory and developmental {dH mgmË_H Cnm` {ZåZ{b{IV h¢: measures taken by RBI during 2018-19 are furnished below: • The RBI on April 6, 2018 decided that all system providers • 6 2018 Aà¡b H mo Ama~rAmB© Zo V` {H `m {H g^r {gñQ_ àXmVm `h shall ensure that the entire data relating to payment systems gw{Z{üV H ao§ {H CZHo Ûmam àMm{bV {gñQ_ _o§ ^wJVmZ go g§~§{YV gmam operated by them are stored in a system only in India. This SmQm Ho db ^maV Ho {gñQ_ _o§ g§JŒ{hV {H `m Omò& SmQm _o§ E§S-Qy-E§S data should include the full end-to-end transaction details/ boZXoZ go g§~pÝYV g§Xoe/^wJVmZ {ZXo©emo§ Ho ê$n _o§ g§JŒ{hV/d{hV/ information collected/carried/processed as part of the message/payment instruction. àg§ñH¥ V gmar OmZH mar/{ddaU g_m{hV hmoZr Mm{hE& • The RBI on June 6, 2018 temporarily allowed banks and • 6 OyZ 2018 H mo [a‹Od© ~¢H Zo ~¢H mo§ Am¡a EZ~rEµ\ gr H mo AñWmB© ê$n go NBFCs to classify their aggregate exposure up to `250 {Z`V _mnX§S Ho 180 {XZ Ho nümV, 31 _B© 2018 H mo dñVw Ed§ godm million as on May 31, 2018, as per the 180 days past due H a(OrEgQr) Ho VhV An§OrH¥ V BH mB©`mo§ g{hV g^r gyú_, bKw Ed§ criterion, to all Micro Small and Medium Enterprises (MSMEs), including those not registered under Goods and 250 _Ü`_ B§H mB©`mo§(E_EgE_B©) H mo {Xò JE {_{b`Z VH Ho CZHo Hw b Services Tax (GST), as a ‘standard’ asset. EŠgnmoOa H mo ""ñQ¢SS©'' AmpñV Ho ê$n _o§ dJr©H¥ V H aZo H$s AZw_{V Xr& • The RBI on June 19, 2018 revised the housing loan limits • [aOd© ~¢H Zo 19 OyZ 2018 H mo àmW{_H Vm àmßV joÌmo§ Ho A§VJ©V Amdmg for eligibility under priority sector lending to 35 lakh in G$Umo§ H$s nmÌVm g§emo{YV H a _hmZJar` Ho ÝÐmo§ (10 bmI Ed§ A{YH metropolitan centres (with population of 10 lakh and above), and 25 lakh in other centres, provided the overall 35 25 Am~mXr dmbo) _o§ bmI Ed§ AÝ` Ho ÝÐmo§ _o§ bmI H a Xr ~eVo© cost of the dwelling unit in the metropolitan centre and _hmZJar` Ed§ AÝ` Ho ÝÐmo§ na Amdmgr` BH mB© H m Hw b _yë` HŒ _e: at other centres does not exceed 45 lakh and 30 lakh, 45 bmI Ed§ 30 bmI go A{YH Zht hmoZm Mm{hE& respectively. • • _m§J S—mâQmo§ (SrSr) Ûmam ^wJVmZ Ho ~oZm_r hmoZo Ed§ CZHo YZ emoYZ hoVw In order to address the concerns arising out of the anonymity provided by payments through demand drafts (DD) and 12 g§^m{dV Cn`moJ go g§~§{YV _wÔmo§ Ho {ZXmZ hoVw , [a‹Od© ~¢H Zo OwbmB© the possible misuse for money laundering, the RBI on 2018 H mo `h V` {H `m {H OmarH Vm© ~¢H Ûmam _m§J S—mâQ, no-Am°S©a, July 12, 2018 decided that the name of the purchaser be ~¢H g© MoµH Am{X na IarXXma H m Zm_ A§{H V {H `m Omò& incorporated on the face of the demand draft, pay order, banker’s cheque, etc., by the issuing bank. • 21 {gV§~a 2018 H mo [a‹Od© ~¢H Zo g^r AZwgy{MV dm{UpÁ`H ~¢H mo§ • The RBI on September 21, 2018 advised all scheduled (joÌr` JŒm_rU ~¢H mo§ Ed§ bKw {dÎm ~¢H mo§ H mo Nmo‹S H a) H mo àmW{_H Vm àmßV commercial banks (excluding regional rural banks and small AmpñV`mo§ Ho {Z_m©U hoVw d¡gr Tm§MmJV _hËdnyU© O_m ñdrH ma Zht H aZo fi nance banks) to engage with systemically important non- dmbr J¡a-~¢qH J {dÎmr` H§ n{Z`mo§ (EZ~rEµ\ gr-EZSr-EgAmB©) (AmJo deposit taking non-banking fi nancial Company (NBFC- EZ~rEµ\ gr Ho Vm¡a na g§X{^©V) Ho gmW H m_ H aZo Ho {ZXo©e {Xò& ND-SIs) (hereinafter referred to as NBFC) to co-originate loans for the creation of priority sector assets. • Am§V[aH bmoH nmb `moOZm 2018 Ho VhV, 10 go A{YH ~¢H Ho ÝÐmo§ dmbo • As per the Internal Ombudsman Scheme 2018, all scheduled g^r AZwgy{MV dm{UpÁ`H ~¢H mo§ (joÌr` JŒm_rU ~¢H mo§ H mo Nmo‹SH a) H mo commercial banks in India having more than 10 banking CZHo ~¢H _o§ Am§V[aH bmoH nmb {Z`wº H aZm h¡& outlets (excluding regional rural banks), are required to appoint Internal Ombudsman (IO) in their banks. • Zd§~a 15, 2018 H mo [a‹Od© ~¢H Zo ~¢H m§o H mo [a`b QmB_ JŒm¡g • The RBI on November 15, 2018 advised banks to send a goQb_o§Q (AmaQrOrEg) àUmbr Ho VhV {Z{Y`mo§ Ho àofH mo§ H mo {Z{Y A§VaU positive confi rmation to the remitter of the funds under Ho nyam hmo OmZo Ho g§X^© _o§ EH gH mamË_H nwpîQ ào{fV H aZo H m {ZXo©e the Real Time Gross Settlement (RTGS) system, regarding {X`m h¡& completion of the funds transfer.

38 • ~¢qH J àUmbr go H m`©erb ny§Or gw{dYm boZo dmbo ~‹So CYmaH Vm©Amo§ _o§ • With a view to enhance credit discipline among the larger G$U AZwemgZ ~‹TmZo Ho X¥pîQH moU go [a‹Od© ~¢H Zo 5 {Xg§~a 2018 H mo borrowers enjoying working capital facility from the banking system, the RBI on December 5, 2018 issued the

""~¢H H µO© àXmZ H aZo H$s G$U àUmbr na {Xem{ZXo©e '' Omar {H E& “Guidelines on Loan System for Delivery of Bank Credit”. • Ama~rAmB© Zo 5 {Xg§~a 2018 H mo ""{S{OQb boZXoZmo§ Ho {bE bmoH nmb • The RBI on December 5, 2018, decided to implement an `moOZm'' H mo bmJy H aZo H m {ZU©` {b`m Omo [a‹Od© ~¢H Ho {Z`m_H ‘Ombudsman Scheme for Digital Transactions’ covering joÌm{YH ma Ho A§VJ©V AmZo dmbr g^r BH mB©`mo§ Ûmam àXÎm godmAmo§ na services provided by entities falling under RBI’s regulatory jurisdiction. The Scheme came into force from January 31, 31 2019 bmJy hmoJr& `h `moOZm OZdar go à^md _o§ Am`r& 2019. • Ama~rAmB© Zo 5 {Xg§~a 2018 H mo AÝ` BH mB©`mo§ Omo dV©_mZ {Xem{ZXoemo§ • The RBI on December 5, 2018 extended the beneﬁ t of _o§ em{_b Zht Wt, Ûmam Omar àrnoS ^wJVmZ CnH aUmo§ (nrnrAmB©) g{hV limiting customer liability for unauthorised electronic AZ{YH¥ V B©boŠQ—m°{ZH boZXoZmo§ na JŒmhH mo§ H$s Xo`VmAmo§ H mo gr{_V {H `m transactions involving Prepaid Payment Instruments (PPIs) issued by other entities not covered by the existing

h¡& Bg go nhbo ~¢H Ed§ HŒo {SQ H mS© Omar H aZo dmbr EZ~rEµ\ gr go guidelines on the subject. Earlier, instructions were issued g§~pÝYV AZ{YH¥ V boZXoZmo§ na JŒmhH Xo`VmE§ gr{_V H aZo hoVw {ZXo©e on limiting customer liability in respect of unauthorised Omar {H E JE Wo& electronic transactions involving banks and credit card issuing NBFCs. • Ama~rAmB© Zo 1 OZdar 2019 H mo gyú_, bKw Ed§ _Ü`_ B§H mB©`mo§ • The RBI on January 1, 2019 issued guidelines on

(E_EgE_B©) H mo {X`o JE G$Umo§ H$s nwZgªaMZm hoVw {Xem{ZXo©e Omar restructuring of advances to Micro, Small and Medium {H E& {Xem{ZXo©emo§ Ho AZwgma, CYmaH Vm©Amo§ H mo dV©_mZ E_EgE_B© Enterprises (MSMEs). As per the guidelines, lenders will be G$Umo§ H mo EH ~ma nwZgªa{MV H aZo H$s AZw_{V hmoJr Omo A^r MyH _o§ h¢ allowed a one-time restructuring of existing loans to MSMEs {H ÝVw AmpñV dJr©H aU H mo {~Zm H$_ {H E 01 OZdar 2019 H mo ñQ¢SS© that are in default but ‘standard’ as on January 1, 2019, without an asset classiﬁ cation downgrade. To be eligible for

Wo& Bg `moOZm H$s nmÌVm hoVw, EH CYmaH Vm© H mo ~¢H mo§ Ed§ EZ~rEµ\ gr the scheme, the aggregate exposure, including non-fund H m J¡a-{Z{Y AmYm[aV Hw b EŠgnmoOa {XZm§H 01 OZdar 2019 H mo based facilities of banks and NBFCs, to a borrower should 250 {_{b`Z énò go A{YH Zht hmoZm Mm{hE& not exceed `250 million as on January 1, 2019. • 10 OZdar 2019 H mo ^maVr` [a‹Od© ~¢H Zo ny§Or g§ajU ~\ a • The RBI on January 10, 2019, decided to defer the implementation of the last tranche of 0.625% of Capital 0 625 31 (grgr~r) Ho . % Ho Am{Iar I§S H mo bmJy H aZo {V{W _mM© Conservation Buffer (CCB) from March 31, 2019 to March 2019 go 31 _mM© 2020 VH AmñW{JV H$s& VXZwgma 31 _mM©, 2018 31, 2020. Accordingly, minimum capital conservation go bmJy Ý`yZV_ ny§Or g§ajU AZwnmV hr A~ 31 _mM©, 2019 go bmJy ratios, as applicable from March 31, 2018 will also apply hmoJm O~ VH {H grgr~r 31 _mM©, 2020 H mo 2.5% Ho ñVa VH Zht from March 31, 2019 till the CCB attains the level of 2.5% AmVm h¡& on March 31, 2020. • With a view to providing operational freedom to banks in • Ama~rAmB© Zo ~¢H mo§ H mo {Z{Y g§JŒhU Ho {bE A{YH n[aMmbZmË_H raising bulk deposits, the RBI on February 22, 2019 revised ñdVÝÌVm XoZo Ho CÔoí` go 22 \ adar 2019 go ~¢H mo§ H$s WmoH O_m the defi nition of bulk deposits as single rupee deposits of `2 H$s gr_m H mo EH _wíV 2 H amo‹S Ed§ A{YH H aZo H m {ZU©` {b`m h¡ Ed§ crore and above; and henceforth banks shall maintain their ^{dî` _o§ n`©dojr g_rjmAmo§ Ho {bE ~¢H mo§ H mo AnZm WmoH O_m ã`mO bulk deposit interest rate cards in the core banking system for supervisory review. Xa H mS© H moa ~¢qH J {gñQ_ _o§ aIZm hmoJm& • With a view to facilitating the fl ow of credit to well- • ~ohVa AmH bZ dmbo EZ~rEµ\ gr H mo G$U àXmZ H aZo H$s gw{dYm hoVw rated Non-Banking Financial Companies (NBFCs), RBI Ama~rAmB© Ûmam {ZU©` {b`m J`m {H H moa {Zdoe H§ n{Z`mo§ (grAmB©gr) has decided that rated exposures of banks to all NBFCs, g{hV g^r EZ~rEµ\ gr H mo ~¢H mo§ Ho AmH {bV EŠgnmoOa H mo H mnmo©aoQ²g excluding Core Investment Companies (CICs), would be risk-weighted as per the ratings assigned by accredited

Ho g_mZ hr _mÝ`Vm àmßV aoqQJ EOo§{g`mo§ Ûmam {X`o JE aoqQJ Ho AmYma rating agencies, in a manner similar to that for corporates. na Omo{I_ ^m[aV {H `m OmEJm& grAmB©gr H mo {X`o JE EŠgnmoOa H$s Exposures to CICs will continue to be risk-weighted at Omo{I_ ^m[aV 100% ahoJr & 100%.

ANNUAL REPORT 2018-19 39 • 2010 go H¥ {f bmJV _o§ d¥{Õ VWm Hw b _wÐmñ\ r{V H mo Ü`mZ _o§ aIVo hwE, • The RBI, keeping in view the overall infl ation and rise in [aOd© ~¢H$Zo, H moboQab _wº G$U H$s gr_m H mo 1 bmI go énò 1.6 bmI agriculture input cost since 2010, decided to raise the limit for collateral free agricultural loans from the existing level of VH ~‹TmZo H m {ZU©` {b`m h¡& VXZwgma, ~¢H mo§ go énò 1.6 bmI VH Ho 1 lakh to 1.6 lakh. Accordingly, banks were asked to waive

H¥ {f G$U Ho {bE Amdí`H _m{O©Z H mo _m\ H aZo H mo H hm J`m & Bggo margin requirements for agriculture loans up to 1.6 lakh. g§~§{YV KmofUm 7 \ adar 2019 H mo Am`mo{OV NRr {Û_m{gH _m¡{ÐH Announcement to this effect was made in the Statement Zr{V g_rjm H$s {dH mgmË_H Am¡a {Z`m_H Zr{V`mo§ na {ddaU _o§ H$s on Developmental and Regulatory Policies of the Sixth Bi- J`r& Monthly Monetary Policy Statement on February 7, 2019. • Ama~rAmB© Zo 22 _mM© 2019 H mo {d{^Þ ~¢H mo§ _o§ V¡`mar H mo Ü`mZ _o§ aIVo • The RBI on March 22, 2019 decided to defer the hwE ^maVr` boIm _mZH mo§ (AmB©EZSrEEg) H mo bmJy {H `m OmZm AJbr implementation of Indian Accounting Standards (IndAS) till further notice, keeping in view, the level of preparedness

gyMZm VH AmñW{JV H a {X`m h¡& of many banks.

2. 2018-19 _o§ d¥hÎma {dÎmr` n[aX¥í`: 2. Macro-Economic Scenario in 2018-19 amîQ—r` Am` Ho AñWmB© AmH bZ Ho AZwgma, {dÎm df© 2017-18 H$s 7.2% As per the Provisional estimates of national income, the growth H$s d¥{Õ Xa Ho gmnoj {dÎm df© 2018-19 Ho {bE (2011-12) Ho pñWam§H rate of GDP at constant (2011-12) prices for the ﬁ nancial year _yë`na OrSrnr H$s d¥{Õ Xa H mo 7.0% na AmH {bV {H `m h¡& (2011-12) 2018-19 is estimated at 7.0% as compared to the growth rate of 7.2% in 2017-18. At the sectoral level, the growth rate of gross Ho pñWam§H _yë`na H¥ {f Ed§ ghH mar joÌmo§, CÚmoJmo§ Ed§ godm joÌmo§ Ho {bE value added (GVA) at constant (2011-12) prices for agriculture gH b _yë`dY©Z H$s d¥{Õ Xa 2018-19 Ho {bE HŒ _e: 2.7%,7.2% VWm & allied sectors, industry and services sectors for the year 2018- 7.6% AmH {bV H$s J`r h¡& 19 are estimated at 2.7%, 7.2%, and 7.6% respectively.

2017-18 H$s g_mZ Ad{Y Ho {bE 4.4% H$s d¥{Õ Xa Ho gmnoj df© The index of industrial production (IIP) showed a lower 2018-19 Ho Aà¡b-_mM© Ho Xm¡amZ Am¡Úmo{JH$ CËnmXZ gyMH m§H growth of 3.6% during April-March 2018-19 compared with growth of 4.4% growth in the corresponding period of 3 6 (AmB©AmB©nr) _o§ H _Va d¥{Õ Xa {XImVo hwE . % XµO© hwB©& Cn`moJ AmYm[aV 2017-18. As per the use-based classiﬁ cation, the growth dJr©H aU Ho AZwgma, Aà¡b-_mM© 2018-19 _o§ àmW{_H dñVwE§, ny§OrJV during April-March 2018-19 for primary goods, capital dñVwE§, _Ü`dJr© dñVwE§ Ed§ Adg§aMZm/{Z_m©U dñVwAmo§ Ho {bE d¥{Õ Xa goods, intermediate goods and infrastructure/construction HŒ _e: 3.5%, 2.8%, -0.6% Ed§ 7.5% XµO© H$s J`r& {QH mD$ Cn^moºm goods stood at 3.5%, 2.8%, -0.6% and 7.5% respectively. The dñVwE§ Ed§ J¡a-{QH mD$ Cn^moŠVm dñVwAmo§ Ho {bE HŒ _e: d¥{Õ Xa 5.3% Ed§ consumer durables and consumer non-durables have recorded a growth of 5.3% and 3.8% respectively. As per the sector wise 3.8% XµO© H$s J`r& joÌ dma dJr©H aU Ho AZwgma, Aà¡b- _mM© 2018-19 classiﬁ cation, mining, manufacturing and electricity sector 2 9 3 5 Ho Xm¡amZ IZZ, {d{Z_m©U Ed§ {dÚwV joÌ Ho {bE HŒ _e: . %, . % Ed§ registered a growth of 2.9%, 3.5% and 5.2% respectively during 5.2% H$s d¥{Õ Xa XµO© H$s J`r& April-March 2018-19.

JŒmhH _yë` gyMH m§H (grnrAmB©) _o§ Am§H$s JB© IwXam _wÐmñ\ r{V {dÎm df© Retail infl ation, based on Consumer Price Index (CPI), 2019 Ho Xm¡amZ Am¡gVZ 3.43% ahr Omo {H df© 2017-18 Ho Xm¡amZ averaged 3.43% during FY19, lower than 3.58% infl ation seen during 2017-18. Infl ation based on Wholesale Price 3 58 H$s . % _wÐmñ\ r{V go H _ h¡ & WmoH _yë` gyMH m§H (SãbynrAmB©) na Index (WPI) averaged 4.27% during FY19, higher than AmYm[aV _wÐmñ\ r{V {d.d.19 Ho Xm¡amZ Am¡gVZ 4.27% ahr Omo 2017-18 the 2.92% infl ation seen in the corresponding period for H$s g§JV Ad{Y Ho Xm¡amZ H$s _wÐmñ\ r{V 2.92% go A{YH Wr & 2017-18.

2018-19 Ho Xm¡amZ ^maV Ho {Z`m©Vmo§ H m g§M`r _yë`, 2017-18 Ho Xm¡amZ India’s cumulative value of exports during 2018-19 was $331.02 billion as against $303.53 billion during 2017-18, registering a Ho $303.53 {~{b`Z H$s VwbZm _o§ 9.06% H$s d¥{Õ XO© H aVo hwE df© growth of 9.06% over the previous year. The value of imports 2018-19 Ho Xm¡amZ $$331.02 {~{b`Z ahm & Am`mVmo§ H m _yë`, Omo {nNbo for the period April-March 2018-19 was $507.44 billion as df© 2017-18 H$s Bgr Ad{Y Ho Xm¡amZ $$465.58 {~{b`Z Wm, 8.99% against $465.58 billion during 2017-18, registering a growth H$s d¥{Õ XO© H aHo Aà¡b-_mM© 2018-19 H$s Ad{Y Ho {bE $$507.44 of 8.99% over the same period last year. The trade deﬁ cit for

40 {~{b`Z ahm & Aà¡b-_mM©, 2018-19 Ho {bE ì`mnma KmQm, $176.42 April-March 2018-19 was estimated at $176.42 billion, which {~{b`Z hmoZo H m AZw_mZ h¡ Omo Aà¡b-_mM©, 2017-18 Ho $$162.05 was higher than the defi cit of $162.05 billion during April- March 2017-18. {~{b`Z Ho KmQo go A{YH h¡ & ^maV H m Mmby ImVm KmQm (grESr), {dÎm df© 2018-19 Ho Xm¡amZ 2017- India’s current account defi cit (CAD) increased to 2.6% of 18 H$s nyd©dVr© Ad{Y Ho 1.8% Ho gmnoj Aà¡b-{Xg§~a 2018 Ho Xm¡amZ GDP in the April-December 2018 period from 1.8% in the corresponding period of 2017-18. As on March 31, 2019, 6 31 2019 OrSrnr Ho$ 2. % VH ~‹T J`m & _mM©, VH ^maV H$s {dXoer India’s forex reserves stood at US $412.9 billion. The exchange Ama{jV {Z{Y `yEg $412.9 {~{b`Z Wr& `yEg Sm°ba Ho gmnoj {d.d.19 Ho rate of the Indian Rupee vis-à-vis the US dollar had been Xm¡amZ ^maVr` énE Ho$ {d{Z_` Xa _o§ CVma-M‹Tmd ahm& én`m 09.10.2018 volatile during FY19. The Rupee touched historical low of VH Eo{Vhm{gH ê$n go ZrMo OmVo hwE `yEg Sm°ba Ho {déÕ `74.4 VH nhþ§M `74.4 against US dollar on 09.10.2018 and ended the fi nancial J`m Am¡a {dÎmr` df© Ho A§V 29.03.2019 VH `yEg Sm°ba Ho {déÕ year at `69.1 against US dollar on 29.03.2019. `69.01 na g_mßV hwAm& 3. Banking Trends in 2018-19 3. 2018-19 _| ~¢qH$J àd¥{Îm`m± As per RBI data, Scheduled Commercial Banks (SCBs) credit ^m[a~¢ Ho$ Am§H$‹S>mo Ho$ AZwgma AZwgy{MV ì`mdgm{`H$ ~¢H$mo (Eggr~r) Ho$ growth accelerated to 13.2% in FY19 as against a growth of F$U _| d¥{Õ {dÎmr` df© 18 Ho$ 10.0% Ho$ _wµH$m~bo {dÎmr` df© 19 _| 10.0% of FY18. Outstanding credit stood at `97.67 lakh crore. ~‹T>H$a 13.2% ahr& ~H$m`m F$U `97.67 bmI H$amo‹S> hmo J`m& AZwgy{MV Deposits of Scheduled Commercial Banks’ (SCBs) grew by 10.0% in FY19 as against 6.2% in FY18, with outstanding ì`mdgm{`H$ ~¢H$mo (Eggr~r) H$s O_mAm| Zo `125.73 bmI H$amo‹S> H$s deposits of `125.73 lakh crore. The banks’ credit-to-deposit ~H$m`m O_mAm| Ho$ gmW {dÎm df© 18 H$s 6.2 % H$s VwbZm _| {dÎm df© 19 ratio had risen to 77.7% compared to 75.5% a year ago period. _| 10.0% H$s Xa go d¥{Õ H$s & ~¢H$ H$m F$U O_m AZwnmV EH$ df© nyd© Ho$ 75.5% go ~‹T>H$a 77.7% hmo J`m h¡& As far as liquidity conditions are concerned, systemic liquidity underwent alternating phases in the fi rst half of 2018-19. During Ohm± VH$ VabVm H$m g§~§Y h¡ 2018-19 H$s nhbr N>_mhr _| àUmbrJV the fi rst half of 2018-19, liquidity conditions were largely in VabVm ~Xbmd Ho$ Xm¡a go JwOar& 2018-19 H$s nhbr N>_mhr Ho$ Xm¡amZ the surplus mode. Accordingly, the weighted average call rate VabVm H$s pñW{V H$m\$s hX VH$ A{Yeof H$s AdñWm _| Wr& VXZwgma traded generally below the policy repo rate. In the second half of ^m[aV Am¡gV H$m°b Xa gm_Ý`V`m nm°{bgr aonmo aoQ> go ZrMo H$mamo~ma H$aVr 2018-19, in view of the need to inject durable liquidity ahr& 2018-19 H$s Xÿgar N>_mhr _|, _wÐm {dñVma Ed§ {dXoer _wÐm boZXoZm| warranted by large leakage through currency expansion and Ûmam ~‹S>o [agmd H$mo amoH$Zo H$mo Ü`mZ _| aIZo Ho$ _ÔoZOa VabVm H$mo pñWa forex operations, the RBI conducted 22 open market operation (OMO) purchase auctions aggregating `2,485 billion, taking H$aZo Ho$ {bE ^m[a~¡§ Zo 22 AmonZ _mH}$Q> `2,485 {~{b`Z H$s 22 AmonZ the total infusion of liquidity through OMOs to `2,985 billion _mH}$Q> n[aMmbZ (AmoE_Amo) IarX {Zbm_r H$aVo hþE 2018-19 Ho$ Xm¡amZ during 2018-19. AmoE_Amo Ho$ Ûmam `2,985 {~{b`Z H$s VabVm S>mbr& As far as the benchmark G-sec yields are concerned, the yield on Ohm§ VH$ ~|M_mH©$ Or-goH$ à{V\$b H$m g§~§Y h¡ 10 dfm] Ho$ ~|M_mH©$ 10 year benchmark security stood at 7.33% at the beginning of {gŠ`y[aQ>r na à{V\$b 2018-19 H$s ewéAmV _| 7.33% ahr Omo {gV§~a 2018-19, hardened over 8.00% in September 2018 due to high 2018 _| énò Am¡a H$ƒo Vob H$s H$s_Vm| _| Cƒ ApñWaVm Ho$ H$maU 8% volatility in the movement of Rupee and crude oil prices. go A{YH$ hmo JB©& However, yields softened subsequently as the RBI maintained status quo on the policy rate in October 2018, and this downward hmbm§{H$ ~mX _| à{V\$b _| Za_r AmB© Š`m|{H$ Aºy$~a 2018 _| Ama~rAmB© Zo movement was reinforced by the decline in international crude Zr{VJV Xa `WmpñW{V ~ZmE aIr Am¡a Bg {JamdQ> H$s pñW{V H$mo A§Vam©ï´>r` prices. However, yields shed this softness and spiked by 10 bps on H«y$S> H$s H$s_Vm| _| {JamdQ> go _O~yV {H$`m J`m& hmbm§{H$ 9 Aºy$~a, 2018 October 9, 2018 as the rupee depreciation sparked fears of a large H$mo à{V\$b _| 10 ~rnrEg H$m CN>mb Am`m Š`mo{H$ ê$nò _| {JamdQ> Ho$ sell-off by foreign portfolio investors (FPIs). During December H$maU {dXoer nmoQ>©\$mo{b`m| {ZdoeH$m|(E\$nrAmB©) Ûmam ~‹S>r {~H$dmbr H$s 2018, yields on the benchmark paper fell, notwithstanding Ame§H$m OVmB© JB©& 2019-20 Ho$ Xm¡amZ ~mOma CYma _| Ano{jV CN>mb intermittent hardening because of fears about fi scal slippages Ed§ H¥${f amhV n¡Ho$O Ho$ H$maU {dÎmr` MyH$m| Ho$ ^` Ho$ H$maU ~rM -~rM _| on account of the farm relief package and an expected rise in CËnÞ {df_ n[apñW{V`m| Ho$ H$maU {Xg§~a 2018 Ho$ Xm¡amZ nona ~|M_mH©$ Ho$ market borrowing during 2019-20. The announcement of

ANNUAL REPORT 2018-19 41 à{V\$b _| {JamdQ> AmB©& 2019-20 Ho$ A§V[a_ ~OQ> _| 2018-19 Ho$ {bE additional borrowing of `1,390 billion for 2019-20 over and g§emo{YV AmH$bZ go Á`mXm A{V[aº$ CYma `1,390 {~{b`Z H$s KmofUm above the revised estimate of 2018-19 in the Interim Budget Ho$ H$maU nona ~|M_mH©$ (7.26% OrEg 2029) Ho$ à{V\$b _| 7.38% H$s 2019-20 led to a ﬁ rming up of the yield on the benchmark _O~yVr AmB© h¡& {\$a ^r \$adar 2019 _| [aOd© ~¢H$ Ûmam aonmo aoQ> _| H$_r go paper (7.26% GS 2029) to 7.38% Nevertheless, the reduction in the repo rate by the Reserve Bank in February 2019, which Omo {H$ ~mOma Ho$ {bE AàË`m{eV Wm Am¡a Aà¡b go {gV§~a 2019 Ho$ {bE was unanticipated by the market, and the downward revision of AZw_m{ZV _wÐmñ\$s{V AZw_mZ _| g§emo{YV {JamdQ> Ho$ n[aUm_ñdê$n ~|M_mM© the projected inﬂ ation trajectory for April to September 2019 _| {JamdQ> AmB© Am¡a ~mX _| 28 _mM©, 2019 H$mo 7.32% na g_má hþB©& resulted in a decline in the benchmark yield subsequently and ending at 7.32% as on 28th March, 2019.

4. ~¢H H m n[aMmbZJV {ZînmXZ 4. Bank’s Operational Performance

4.1 O_m g§JŒhU 4.1 Deposit Mobilisation i. O_m à_mUnÌ (grSr) Ed§ ~¢H O_m g{hV ~¢H H$s Hw b O_mam{e`m±, i. The total deposits of the bank including Certiﬁ cate of 31 _mM©, 2019 H mo `1,84,567.84 H amo‹S Wt {OZ_o§ df©-Xa-df© Deposits (CDs) and Bank Deposits reached a level of AmYma na 0.68% H$s Xa go `1,251.89 H amo‹S H$s d¥{Õ hwB© & `1,84,567.84 crore as at 31st March, 2019, registering year-on-year increase of `1,251.89 crore at 0.68%. ii. Mmby O_mam{e`m± {nNbo df© Ho `14,698.71 H amo‹S H$s VwbZm _o§ ii. Current deposit stood at `16,199.76 crore as against `16,199 76 . H amo‹S Ho ñVa na aht& `14,698.71 crore in the previous year. iii. ~MV O_mam{e`m± {nNbo df© Ho `39,424.41 H amo‹S Ho ñVa go iii. Saving deposit reached `42,106.72 crore as against `2,682.31 H amo‹S H$s {Zdb d¥{Õ Ho gmW df©-Xa-df© AmYma na `39,424.41 crore in the previous year with net accretion 6.8% H$s d¥{Õ Ho gmW `42,106.72 H amo‹S VH nhw±Mt& of `2,682.31 crore at 6.8% y-o-y growth. Average saving deposit grew by 3.9% with a net accretion of `1,496.55 iv. Hw b O_m am{e`mo§ _o§ 31.03.2018 Ho 29.52% Ho _wµH m~bo crore and stood at `39,913.26 crore. 31 03 2019 31.59 . . H mo H mgm O_m am{e`mo§ H m {hñgm ~T>H$a % iv. The share of CASA deposits in total deposits improved to ahm & 31.59% as on 31.03.2019 as compared to 29.52% as on 31.03.2018. v. Am¡gV H mgm 1.10% H$s d¥{Õ Xa Ho gmW `557.60 H amo‹S ~‹TVo hwE `51081.19 H amo‹S hmo J`m& v. Average CASA grew by 1.10% with a net accretion of `557.60 crore and stood at `51081.19 crore. vi. _r`mXr O_m am{e`m± {nNbo df© Ho `1,29,192.83 H amo‹S H$s VwbZm _o§ vi. Term deposits reached level of `1,26,261.37 crore as `1,26,261 37 . H amo‹S Ho ñVa na nhw±M JB©§ & compared to `1,29,192.83 crore in the previous year. vii. WmoH O_m am{e`m± (`2 H amo‹S> Ed§ Cggo A{YH Ho {_`mXr O_m) vii. Bulk deposits (Term deposits of `2 Cr. & above) stood `45,215.73 H amo‹S Ho _wµH m~bo 2.13% H _ hmoH a `44,170.16 at `44,170.16 crore as against `45,215.73 crore with H amo‹S aht & Hw b O_m _o§ WmoH O_m H m {hñgm {nNbo df© Ho 24.67% decrease of 2.13%. The Share of Bulk deposits in total H$s VwbZm _o§ 23.93% ahm & deposits stood at 23.93% compared to 24.67% in the previous year. viii. 8 19 2017 18 5 74 201 - hoVw O_m am{e`mo§ H$s bmJV - Ho . % Ho$ viii. Cost of Deposit for 2018-19 stood at 5.40% as against 5 40 _wH m~bo . % ahr & 5.74% during 2017-18.

4.2 G$U g§d¥{Õ 4.2 Credit Growth: 4.2.1 ~¢H H m G$U g§{d^mJ 31.03.2018 Ho `1,19,868.84 H amo‹S 4.2.1 The credit portfolio of the Bank increased from the level of go 31.03.2019 H mo g_mßV {dÎm df© Ho Xm¡amZ 1.15% H$s Xa go `1,19,868.84 crore as at 31.03.2018 to `1,21,251.21 crore as at `1,382.37 H amo‹S H$s d¥{Õ Ho gmW 31.03.2019 H mo `1,21,251.21 31.03.2019, with an absolute increase of `1,382.37 crore at 1.15% H amo‹S ahm & during the ﬁ nancial year ended 31.03.2019.

42 4.2.2 Am¡gV A{JŒ_mo§ _o§ `12,287.00 H amo‹S H$s {JamdQ hwB© Omo _mM© 2018 4.2.2. The average advances shrink by `12,287.00 crore Ho `1,28,797.58 H amo‹S go 9.54% H$s õmg Xa Ho$ gmW _mM© 2019 H mo from the level of `1,28,797.58 crore as at March 2018 to 1,16,510.58 H amo‹S hmo JE& 31.03.2018 H mo G$U-O_m AZwnmV `1,16,510.58 crore as at March 2019, registering a negative 65.69% ahm& growth of 9.54%. The CD ratio as on 31.03.2019, stood at 65.69%. G$U O_m AZwnmV

_mM© 15 _mM© 16 _mM© 17 _mM© 18 _mM© 19

4.3 àmW{_H Vm àmßV joÌ G$U 4.3 Priority Sector Lending 4.3.1 joÌJV A{^{Z`moOZ 4.3.1 Sectorial Deployment: G$U Ho ê$n _o§ àmW{_H Vm àmßV joÌ _o§ A{^{Z`mo{OV Hw b am{e 31.03.2019 The total amount of credit deployed to Priority sector stood at H mo `63247 H amo‹S ahr Omo g_m`mo{OV {Zdb ~¢H G$U Ho 40% Ho `63247 crore as at 31.3.2019, forming 43.82% of the Adjusted ^maVr` [aµOd© ~¢H Ho _mZX§S Ho _wH m~bo g_m`mo{OV {Zdb ~¢H G$U H m Net Bank Credit [ANBC] as against the regulatory target of 43.82% ahm& 40% of ANBC ﬁ xed by RBI. àmW{_H$Vm àmßV joÌ G$U

_mM© 15 _mM© 16 _mM© 17 _mM© 18 _mM© 19 Bank’s performance vis-à-vis regulatory target is furnished in {Z`m_H bú`mo§ Ho gmnoj ~¢H H m {ZînmXZ Vm{bH m _o§ d{U©V h¡: the table below: _mM©-19 H mo ^m[a~§¡ Ûmam _mM©-19 Achievement Targets Achievement AmaAmB©SrE\ {ZYm©[aV H mo àmpßV as at Mar-19 Stipulated by as at Mar-19 _mZX§S Ho gmW àmpßV bú`(EEZ~rgr (EEZ~rgr Parameter ` % % with RIDF RBI (as% (% to ( H amo‹Smo§ _o§) H m ) H m ) (in `Crs.) of ANBC) ANBC) 63247 40% 43.82 Hw b àmW{_H Vm joÌ Total Priority Sector 63247 40% 43.82 Hw b H¥ {f 25807 18% 18.55 Total Agriculture 25807 18% 18.55 EgE\ /E_E\ 13562 8% 9.87 SF/MF 13562 8% 9.87 gyú_ CÚ_ 10736 7.5% 6.98 Micro Enterprises 10736 7.50% 6.98 Credit Flow to 17058 10% 12.60 H _Omoa joÌ H mo G$U 17058 10% 12.60 àdmh Weaker Section

ANNUAL REPORT 2018-19 43 _mM© 2019 H mo H¥ {f joÌ _o§ A{^{Z`mo{OV G$U `25807 H amo‹S ahm Am¡a Credit extended to Agriculture sector stood at `25807 crore _mM© 2018 Ho EEZ~rgr Ho 17.94% Ho$ gmnoj 2019 H$o EEZ~rgr H m as at March 2019, amounting to 18.55% of ANBC as at March 2019 as against a level of 17.94% of ANBC as at 18.55% hmo J`m& March 2018. 201 1 ~¢H Zo ^maV gaH ma Ûmam {dÎm df© 8- 9 Ho {bE {deof H¥ {f G$U Bank surpassed the Agri. credit disbursement target set by `moOZm (EgEgrnr) _o§ H¥ {f G$U g§{dVaU bú` H mo nma {H `m h¡, ~¢H Zo df© Government of India during FY 2018-19 Under Special 2018-19 Ho `14529.00 H amo‹S Ho g§{dVaU bú` Ho$ gmnoj `16640 Agriculture Credit Plan (SACP), the Bank has disbursed H amo‹S (115% CnbpãY) H m g§{dVaU {H `m & `16640 crore during the year 2018-19 against the disbursement target of `14529 crore (115% achievement). bKw Am¡a gr_m§V {H gmZmo§ H mo G$U _o§ `13562 H amo‹S H m ñVa àmßV {H `m h¡ Am¡a _mM© 2019 _o§ EEZ~rgr Ho 8% Ho {Z`m_H bú` Ho _wµH m~bo EZ~rgr Lending to Small and Marginal farmers has reached a level of `13562 crore, achieving the regulatory target of 8% of ANBC 9 87% Ho . H m ñVa àmßV H a {b`m h¡ & by reaching a level of 9.87% of ANBC as at March 2019. 2019 2 81 {S{OQb ~¢qH J nhb Ho {hñgo Ho Vm¡a na _mM© VH . bmI {H gmZ RuPay Kisan Credit cards (ATM-enabled) were issued to HŒo {SQ H mS© (Ho grgr) CYmaH Vm©Amo§ H mo éno {H gmZ HŒo {SQ H mS© (EQrE_ over 2.81 lakh Kisan Credit Card (KCC) borrowers as at g_W©) Omar {H E JE & 31st March, 2019 as a part of digital banking initiative. E_EgE_B© joÌ H mo G$U na ~¢H H m µOmoa XoZm Omar ahm & {dÎm df© 2018-19 The Bank’s thrust for lending to the MSME sector has Ho Xm¡amZ ~¢H H m E_EgE_B© nmoQ©\ mo{b`mo 31 _mM© 2019 H mo `25986 H amo‹S continued. During the FY 2018-19, the MSME portfolio of the Bank stood at `25986 crore as at 31st March, 2019 and ahm & gyú_ CÚ_mo§ H mo {X`m J`m G$U 31 _mM© 2019 H mo `10736 H amo‹S ahm the advances under Micro Enterprises stood at `10736 crore 7 50 Am¡a `h EEZ~rgr Ho . % Ho {Z`m_H bú` Ho _wµH m~bo EEZ~rgr H m accounting to 6.98% of ANBC as against the regulatory target 6.98% ahm & of 7.50% of ANBC. ~¢H Zo 2018-19 Ho Xm¡amZ àYmZ _§Ìr _wÐm n[a`moOZm Ho VhV Bank has sanctioned `1,858 cr. and disbursed `1,802 cr. under `1,858 H amo‹S _§Oya Am¡a 1,802 H amo‹S énò g§{dV[aV {H E h¢& Pradhan Mantri Mudra Yojana during FY 2018-19. h_mao ~¢H Zo 03.10.2018 H mo 59 {_ZQ Ho ßboQµ\ m°_© na nrEg~r G$Umo§ H mo Our Bank has on boarded PSB loans in 59 minutes platform on ñdrH maZm àmaå^ {H `m h¡, {Og_o§ OrEgQr n§OrH¥ V JŒmhH mo§ Ho {bE `1 bmI 03.10.2018, with Term Loan and Working Capital products for loan amount from `1 lakh to `100 lakh to the GST registered go 100 bmI VH H$s G$U am{e Ho {bE gmd{Y G$U Am¡a H m`©erb ny§Or customers. As up to 31st March 2019, 769 in-principle CËnmX h¢& 31 _mM© 2019 VH , 208.25 H amo‹S H$s am{e Ho 769 g¡Õm§{VH sanctions are accorded amounting to `208.25 cr. AZw_moXZ {Xò JE h¢& 4.4 Social Lending: 4.4 gm_m{OH G$U Dispensation of Credit under various Government Sponsored ~¢H Ho gm_m{OH Am{W©H Xm{`Ëd nyam H aZo Ho {bE gaH ma Ûmam àm`mo{OV Social Lending/Poverty Alleviation Schemes and to Weaker {d{^Þ gm_m{OH G$U/Jar~r CÝ_ybZ `moOZmAmo§ VWm g_mO Ho H _µOmoa dJmoª sections of the society was given due importance so as to fulfi ll the Bank’s socio- economic obligations. H mo G$U Ho {dVaU H mo n`m©ßV _hËd {X`m J`m & The total credit fl ow to Self Help Groups (SHGs) & Joint

ñd`§ ghm`Vm g_yh (EgEMOr) Am¡a g§`wº Xm{`Ëd g_yh (OoEbOr) H mo G$U liability Groups (JLGs) has increased from `2499 crore as at àdmh 31.03.2018 Ho `2499 H amo‹S go `137 H amo‹S H$s d¥{Õ XO© H a 31.03.2018 to `2636 crore as at 31.03.2019 by registering 31.03.2019 H mo `2636 H amo‹S hmo J`m & ~¢H Zo _{hbm ñd`§ ghm`Vm a growth of `137 crore. Bank encouraged direct lending to g_yhmo§ H mo àmoËgm{hV {H `m h¡ & _{hbm ñd`§ ghm`Vm g_yh (EgEMOr) Am¡a Women Self Help Groups. Credit to Women Self Help Groups g§`wº Xm{`Ëd g_yh (OoEbOr) H mo Hw b G$U 31.03.2018 Ho `2172 (SHGs) & Joint liability Groups (JLGs) stood at `2236 crore as at 31.03.2019 compared to `2172 crore as at 31.03.2018 with H amo‹S go `64 H amo‹S H$s d¥{Õ Ho gmW 31.03.2019 H mo `2236 H amo‹S hmo a growth of `64 crore. J`m & Advances to Weaker sections stood at `17058 crore forming H _Omoa dJ© H mo G$U EEZ~rgr Ho 10% Ho bú` Ho gmnoj EEZ~rgr Ho 12.60% of ANBC as at 31.03.2019 as against the target of 10% 12.60% Ho ñVa na 31.03.2019 H mo `17058 H amo‹S ahm & of ANBC.

44 31.03.2018 Ho `11416 H amo‹S H$s VwbZm _o§ 31.03.2019 H mo _{hbm Finance to women beneﬁ ciaries stood at `11571 crore as at bm^m{W©`mo§ H mo {dÎmnmofU `11571 H amo‹S (EEZ~rgr H$m 8.55%) ahm Am¡a 31.3.2019 (8.55% of ANBC) as against `11416 crore as at 31.03.2018 and registered Y-o-Y growth of `155 crore. Bg_o§ `155 H amo‹S H$s df©-Xa-df© d¥{Õ XO© hwB© & As at 31.03.2019, out of the Total Priority Sector credit of 31.03.2019 H mo àmW{_H Vm àmßV joÌ Ho Hw b `63247 H amo‹S G$U _o§ `63247 crore, the outstanding credit to Scheduled Caste/ AZwgy{MV Om{V`mo§/AZwgy{MV OZOm{V`mo§ H mo ~H m`m G$U `1300 H amo‹S h¡& Scheduled Tribe is `1300 crore. Credit exposure to minority Communities stood at `7484 crore 2019 `7484 _mM© H mo Aëng§»`H g_wXm` H mo G$U EŠgnmoOa H amo‹S Ho and reached a level of 13.06% of Priority Sector advances as at ñVa na nhw±M J`m Omo àmW{_H Vm àmßV joÌ A{JŒ_mo§ H m 13.06% h¡& March 2019.

Awards & accolades: 4.5 4.5 nwañH ma Ed§ gå_mZ : Bank has won following awards during the ﬁ nancial year ~¢H Zo {dÎm df© 2018-19 Ho Xm¡amZ {ZåZ{b{IV nwañH ma àmßV {H E : 2018-19: 1. ~¢H Zo bJmVma 5do§ df© M¢~a Am°\ B§{S`Z _mBHŒ mo ñ_mb E§S _r{S`_ 1. Bank has bagged 3 awards instituted by Chamber of B§QaàmBOoµO (grAmB©E_EgE_B©) Ûmam {ZåZm§{H V lo{U`mo§ _o§ 3 nwañH ma Indian Micro Small & Medium Enterprises [CIMSME] consecutively for the 5th year in a row under the following àmßV {H `o : categories: I. gd©loîR E_EgE_B© ~¢H nwañH ma - Cn{dOoVm (B©_qO©J loUr) I. Best MSME Bank Award - Runner up (Emerging II. grEgAma nhb Ed§ ì`mnma Xm{`Ëd nwañH ma- {dOoVm (B©_qO©J Category).

loUr) II. CSR Initiatives & Business Responsibility Award - III. àmo_moeZb `moOZmAmo§ hoVw gd©loîR ~¢H nwañH ma - Cn{dOoVm Winner (Emerging Category). ( B©_qO©J loUr) III. Best Bank for Promotional Schemes Award - Runner 2. NRo EgmoM¡_ EgE_B© gd©loîRVm nwañH ma - 2018 Ho Xm¡amZ up (Emerging Category). ~¢H Zo Egmo{gEQoS Moå~g© Am\ H m_g© EÊS B§SñQ—r Am\ B§{S`m 2. Bank has bagged “BEST MSME BANK-WINNER (EEgEgAmogrEMEE_) Ûmam ñWm{nV nwañH mamo§ _o§ df© 2018 hoVw 2018” award during 6th ASSOCHAM SMEs Excellence ""gd©loîR E_EgE_B© ~¢H -{dOoVm 2018'' H m nwañH ma àmßV {H `m& Award – 2018 instituted by The Associated Chambers of Commerce & Industry of India (ASSOCHAM). 4.6 IwXam G$U 4.6. Retail Lending

Amdí`H Vm AmYm[aV IwXam G$Umo§ O¡go Amdmg, dmhZ, {ejm, ì`{ºJV Tailor made retail loans viz. housing, vehicle, education, G$U, bKw ì`mnma G$U Am{X H m "H mn© `moOZm' ~Œm§S Zm_ go {dnUZ {H `m personal loans, small business loans, etc. are marketed under OmVm h¡ & 31.3.2018 Ho `28912 H amo‹S Ho nmoQ©\ mo{b`mo H$s VwbZm _o§ the brand name “Corp Schemes”. The portfolio under Corp 31.03.2019 H mo H mn© `moOZmAmo§ H m nmoQ©\ mo{b`mo `26244 H amo‹S ahm h¡ & Schemes as on 31.03.2019 stood at `26244 crore as against {dÎm df© 2017-18 H$s `727 H amo‹S (-2.5%) H$s ZH mamË_H d¥{Õ `28912 crore as on 31.03.2018. There is a decline of `2668 crore (-9.2%) during FY 2018-19 as against negative growth of 2018 19 `2668 9 2% H$s VwbZm _o§ {dÎm df© - _o§ H amo‹S (- . ) H$s {JamdQ `727 crore (-2.5%) registered during FY 2017-18. ahr h¡ & 4.6.1. Special promotional campaigns/events conducted 4 6.1 . df© Ho Xm¡amZ Am`mo{OV {deof àMma A{^`mZ/H m`©HŒ _ h¢ : during the year are :  ""\o pñQdb Am°\ a - 2018 [E\ Amo-2018]'', 01.08.2018 go  “Festival Offer – 2018 [FO-2018]”, a promotional 31.12.2018 VH EH àMma A{^`mZ Omar Wm {Og_o§ Mw{ZÝXm H mn© campaign was in operation from 01.08.2018 to 31.12.2018 `moOZmAmo§ Ho VhV ã`mO Xamo§ _o§ NyQ Ed§ àg§ñH aU ewëH _o§ NyQ/_m\ r Xr wherein concessions in interest rate and waiver/concessions Om ahr Wr& in processing charges were offered under Select Corp Schemes.  hmD$qgJ bmoZ Y_mH m-2019: `h A{^`mZ 05.02.2019 go  Housing Loan Dhamaka 2019: The campaign was 08.03.2019 Ho ~rM Ho db doVZ^moJr H _©Mm[a`mo§ Ho {bE bmJy Wm introduced from 05.02.2019 to 08.03.2019 exclusively for

ANNUAL REPORT 2018-19 45 {Og_o§ 2.00 H amo‹S VH Ho Amdmg G$U Ho {bE àg§ñH aU ewëH H$s salaried employees wherein waiver of processing charges _m\ r H$s J`r Wr& was offered for housing loans upto `2.00 crore.  Vehicle Loan Campaign: The campaign was introduced for  20 03 2019 31 03 2019 dmhZ G$U A{^`mZ: `h A{^`mZ . . go . . a short period of 10 days from 20.03.2019 to 31.03.2019 Ho ~rM Ho db 10 {XZ H$s Ad{Y Ho {bE 2 Ed§ 3 n{h`m dmhZ G$Umo§ H mo exclusively for Vehicle Loan (Personal segment) excluding 2 & NmoS H a dmhZ G$U (ì`{ºJV loUr) Ho {bE Wm& 3 wheeler loans.

4.7. IwXam G$U Ho §Ð… 4.7. Retail Loan Centres : At present 34 Retail Loan Centres are operating in the Bank at dV©_mZ _o§ ~¢H _o§ 34 IwXam G$U Ho §Ð, g^r à_wI Ho §Ðmo§ _o§ G$U ñdrH¥ V H aZo all major centres for sanction of retail loans. These Retail Loan 18 19 hoVw n[aMm{bV h¢ & BZ IwXam G$U Ho Ðmo§ Zo {dÎm df© 20 - Ho Xm¡amZ Centres in all have sanctioned loans amounting to `2573 crore `2573 {d{^Þ H mn© `moOZmAmo§ Ho A§VJ©V Hw b {_bmH a H amo‹S am{e Ho G$U under various Corp Schemes during FY 2018-19. _§Oya {H E& 4.8 Financial Inclusion 4.8 {dÎmr` g_mdoeZ  Government of India has allotted 2291 villages grouped  ^maV gaH ma Zo ^maVr` [aOd© ~¢H H$s {dÎmr` g_mdoeZ `moOZm Ho into 894 Sub Service Areas (SSAs) spread across 23 states A§VJ©V nrE_OoSrdmB© Ho VhV _yb^yV ~¢qH J gw{dYm àXmZ H aZo Ho {bE under PMJDY for providing basic banking facilities under 23 amÁ`mo§ _o§ pñWV 2291 Jm±dmo§ H mo 894 Cn godm joÌmo§ (EgEgE) _o§ Financial Inclusion Plan of Reserve Bank of India. Our ~m±Q H a Am~§{QV {H `m h¡& h_mao ~¢H Zo 269 EgEgE _o§ gwì`dpñWV Bank has provided banking infrastructure at the allotted emImAmo§ Ho gmW ~¢qH J g§aMZm CnbãY H amB© h¡& ~mH$s Ho 625 Cn villages/SSAs through brick & mortar branch at 269 SSAs. godm joÌmo§ (EgEgE) _o§ ~¢qH J gw{dYm H mo ~¢H {_Ìmo§ Ho _mÜ`_ go àXmZ In the remaining 625 Sub Service Areas (SSAs) banking {H `m Om ahm h¡& infrastructure is provided by engaging Bank Mitras.  Apart from the 625 PMJDY locations, our Bank has  625 nrE_OoSrdmB© Ho ÝÐmo§ H mo NmoSH a ~¢H Zo Eogo J¡a-nrE_OoSrdmB© Ho ÝÐmo§ engaged 127 Bank Mitras in Non-PMJDY locations na 127 ~¢H {_Ìmo§ H$s godmE± br h¢ Ohm§ ~¢H {_Ìmo§ H$s godmE± Amdí`H wherever services of Bank Mitras are needed. Wt&  Our Bank has opened branches including banking outlets  h_mao ~¢H Zo h_o§ Am~§{QV 3 Ano{jV {Obmo§ _o§ ~¢qH J AmCQboQ g{hV in 3 aspirational districts allotted to us. emImE§ Imobr h¢&  Our Bank has provided robust, STQC certiﬁ ed, 1.5.1 version compliant Micro ATMs to all the Bank Mitra  h_mao ~¢H Zo g_ñV ~¢H {_Ìmo§ H mo geº, EgQrŠ`ygr à_m{UV, 1.5.1 and all are functioning well. The Micro ATM along with

dg©Z go `wº _mBHŒ mo EQrE_ CnbãY H admE h¢ Am¡a `o g^r AÀNm H m_ pin pad has enabled all Bank Mitras to perform online, H a aho h¢& {nZ noS Ho gmW _mBHŒ mo EQrE_ Ûmam g^r ~¢H {_Ì Am°Z bmBZ, interoperable, Aadhaar & pin based transactions. A§Va g§Mm{bV, AmYma Ed§ {nZ AmYm[aV boZXoZmo§ H mo g§^mbZo _o§ g_W©  The following services are provided by our Bank Mitra to h¢& the customers:  h_mao ~¢H {_Ìmo§ Ûmam {ZåZ{b{IV godmE± àXmZ H$s OmVr h¢ : 1) Account Opening, 2) Cash deposit (own bank), 3) Cash 1) ImVo ImobZm, 2) ZH X O_m (AnZo ~¢H _o§), 3) ZH X O_m (Xygao deposit (other bank—Aadhaar Enabled Payment System/ ~¢H _o§- AmYma gj_ ^wJVmZ àUmbr/éno H mS©), 4) ZH X {ZH mgr (h_ Rupay card), 4) Cash withdrawal (on us), 5) Cash withdrawal na), 5) ZH X {ZH mgr (h_mao Ûmam), 6) {Z{Y A§VaU(AnZo ~¢H _o§), (off us), 6) Fund transfer (own bank), 7) Fund transfer (other 7) {Z{Y A§VaU (Xygao ~¢H _o§- AmYma gj_ ^wJVmZ àUmbr/éno H mS©), Bank— Aadhaar Enabled Payment System/Rupay card), 8) Balance enquiry (own bank), 9) Balance enquiry (other 8) eof nyNVmN (AnZo ~¢H _o§), 9) eof nyNVmN (Xygao ~¢H _o§- AmYma bank— Aadhaar Enabled Payment System/Rupay card), 10 11 gj_ ^wJVmZ àUmbr/éno H mS©), ) bKw {ddaUr, ) {_`mXr/AmdVr© 10) Mini statement, 11) TDR/RD opening, 12) Enroll for O_m, 12) _mBHŒ mo XwK©QZm _¥Ë`w ~r_m (nrE_Eg~rdmB©) Ho {bE Zm_m§H Z, micro accidental death insurance (PMSBY), 13) Enroll for 13) _mBHŒ mo OrdZ ~r_m(nrE_OoOo~rdmB©) hoVw Zm_m§H Z, 14) gm_m{OH micro life insurance (PMJJBY), 14) Enroll for social security gwajm no§eZ `moOZm (EnrdmB©) hoVw Zm_m§H Z15) n|eZ ^wJVmZ 16) AmYma pension scheme (APY), 15) Pension payment, 16) Aadhaar à{dpîQ 17) _mo~mB©b à{dpîQ seeding and 17) Mobile seeding.

46  h_mao ~¢H Zo 12 A§Mb H m`m©b`mo§ _o§ {dÎmr` g_mdoeZ n`©dojH mo§ H mo  Our Bank has appointed Financial Inclusion Supervisors ~¢H {_Ìmo§ H$s J{V{d{Y`mo§ H$s {ZJamZr hoVw {Z`wº {H `m h¡& at 12 Zonal Ofﬁ ces to monitor all the activities of Bank Mitras.  31.03.2019 VH nrE_OoSrdmB© Ho VhV 32.45 bmI ImVo Imobo JE  As on 31.03.2019, 32.45 lakhs accounts are opened {OZH m `2,624/- Ho amîQ—r` Am¡gV Ho$ gmnoj h_mao ~¢H _o§ Am¡gV eof under PMJDY and the average balance in funded PMJDY `4620/- ahm & accounts is `4620/- in our Bank against the national average of `2,624/- 5. nwañH ma Am¡a CnbpãY`m§ 5. Awards & achievements: i. ~¢H Zo bJmVma 5do§ df© M¢~a Am°\ B§{S`Z _mBHŒ mo ñ_mb E§S _r{S`_ i. The Bank has bagged three awards instituted by Chamber of Indian Micro Small & Medium Enterprises [CIMSME] B§QaàmBOoµO (grAmB©E_EgE_B©) Ûmam {ZåZm§{H V lo{U`mo§ _o§ 3 nwañH ma consistently for the 5th year in a row under the following

àmßV {H `o : categories:

o gd©loîR E_EgE_B© ~¢H nwañH ma - Cn{dOoVm (B©_qO©J loUr) o Best MSME Bank Award - Runner up (Emerging Category). o grEgAma nhb Ed§ ì`mnma Xm{`Ëd nwañH ma - {dOoVm (B©_qO©J o CSR Initiatives & Business Responsibility Award - loUr) Winner (Emerging Category).

o àmo_moeZb `moOZmAmo§ hoVw gd©loîR ~¢H nwañH ma - Cn{dOoVm o Best Bank for Promotional Schemes Award - Runner up (B©_qO©J loUr) (Emerging Category). ii. Bank has bagged “National Payments Excellence Awards ii. 2017 18 ~¢H Zo {dÎm df© - Ho {bE dm{UpÁ`H ~¢H loUr ~r _o§ éno H mS© 2017” winner in commercial Banks Category B for excellent _o§ CËH¥ îQ {ZînmXZ Ho {bE EZnrgrAmB© Ûmam ñWm{nV ""amîQ—r` ^wJVmZ performance in RuPay Cards, instituted by NPCI for CËH¥ îQVm nwañH ma-2017'' àmßV {H `m& Financial year 2017-18. iii. ~¢H Zo {dÎm df© 2017-18 Ho {bE loUr - ~oñQ EŠgnoŠQoeZ _¡ZoO_o§Q iii. The Bank has bagged “Investor Relations Awards 2018” under category- Best Expectation Management (Mid Cap) ({_S H¡ n) Ho VhV "{ZdoeH g§~§Y nwañH ma 2018' àmßV {H `m h¡& for the FY 2017-18. iv. H m°anmoaoeZ ~¢H Zo 5 {gV§~a, 2018 H mo VmO, ~¢Jbmoa Ho {ddm§Vm _o§ iv. Corporation Bank bagged the Best Community Am`mo{OV amîQ—r` grEgAma brSa{en H m§JŒog Am¡a nwañH ma g_mamoh _o§ Development Award at the National CSR Leadership gd©loîR gm_wXm{`H {dH mg nwañH ma àmßV {H `m&' Congress and Awards function held at Vivanta by Taj, Bangalore on 5th September, 2018. v. ^maVr` {d{eîQ nhMmZ àm{YH aU (`yAmB©S>rEAmB©) Ûmam ñWm{nV v. The Bank has bagged three awards under the Aadhaar AmYma CËH¥ îQVm nwañH ma Ho VhV ~¢H H mo VrZ nwañH ma {_bo h¢& Excellence Awards instituted by Unique Identiﬁ cation H$. ~¢H Zo amBqOJ ñQma AdmS© loUr Ho VhV Xygam ñWmZ hm{gb {H `m& Authority of India (UIDAI). a. The Bank bagged 2nd place under the Raising Star I. Am°ZbmBZ JŒmhH H m Cn`moJ H aHo AmYma Zm_m§H Z/AÚVZ Ho Award category. {bE ~¢H H mo gd©loîR àXe©Z H aZo dmbo ~¢H _o§ Vrgam ñWmZ {X`m b. Bank was conferred 3rd position in the Best Performing J`m& Bank for Aadhaar Enrollment/Update Using Online Client. . J ~¢H H$s Ah_Xm~mX-emhr~mJ emIm H mo ~¢H Ho CÀMV_ Zm_m§H Z/ c. The Bank’s Ahmedabad-Shahibaug Branch was AnSoeZ Ho {bE gd©loîR ~¢H emIm go gå_m{ZV {H `m J`m& awarded the Best Bank Branch for highest Enrollments/ updations for the Bank. vi. NRo EgmoM¡_ EgE_B© gd©loîRVm nwañH ma - 2018 Ho Xm¡amZ vi. Corporation Bank once again bagged the “BEST MSME ~¢H Zo Egmo{gEQoS Moå~g© Am°\ H m_g© EÊS B§SñQ—r Am°\ B§{S`m BANK-WINNER 2018” award during 6th ASSOCHAM 2018 (EEgEgAmogrEMEE_) Ûmam ñWm{nV nwañH mamo§ _o§ df© hoVw SMEs Excellence Award – 2018 instituted by The ""gd©loîR E_EgE_B© ~¢H - {dOoVm 2018'' H m nwañH ma àmßV Associated Chambers of Commerce & Industry of India {H `m& (ASSOCHAM).

ANNUAL REPORT 2018-19 47 vii. H m°nmo©aoeZ ~¢H Zo VrZ "ñH$moM Am°S©a-Am°\ -_o[aQ 2018 nwañH ma àmßV vii. Corporation Bank has bagged three “SKOCH Order-of- {H E h¢& ~¢H Zo {ZåZ{b{IV lo{U`mo§ Ho VhV ñH$moM Am°S©a-Am°\ -_o[aQ Merit 2018 Awards. The Bank bagged SKOCH Order-of- Merit 2018 under the following categories: 2018 àmßV {H `m: d. Financial Inclusion K. {dÎmr`g_mdoeZ e. Road Map to be Best in Insurance Penetration L. ~r_m _mZ{MÌU _o§ gd©loîR hmoZo H m amoS _¡n f. Implementation of Technology in Forex Operations M. {dXoer _wÐm g§MmbZ _o§ àm¡Úmo{JH$s H m H m`m©Ýd`Z 6. Recovery 6. dgybr… 6.1 NPA LEVEL: 6.1 EZnrE ñVa: The Gross NPA of the Bank stood at `20723.68 crore as on ~¢H H m gH b EZnrE 31.03.2018 Ho `22,213.44 H amo‹S H$s VwbZm _o§ 31.03.2019 as compared to `22,213.44 crore as on 31.03.2018. 31.03.2019 H mo `20,723.68 H amo‹S h¡ & gH b EZnrE g§JV {nNbo {dÎm The Gross NPA constituted 15.35% of the Gross Advances as on df© H$s g_mpßV na 17.35% H$s VwbZm _o§ 31.3.2019 H mo gH b A{JŒ_ H m 31.03.2019 as against 17.35% at the end of the corresponding previous fi nancial year. 15.35% h¡ & The Net NPA of the Bank stood at `6926.64 crore as on ~¢H H m {Zdb EZnrE 31.03.2018 Ho `14,077.02 H amo‹S H$s VwbZm _o§ 31.03.2019 as compared to `14,077.02 crore as on 31.03.2018. 31.03.2019 H mo `6,926.64 H amo‹S h¡ & {Zdb EZnrE g§JV {nNbo {dÎm The Net NPA constituted 5.71% of the Net Advances as against df© H$s g_mpßV na 11.74% H$s VwbZm _§o {Zdb A{JŒ_ H m 5.71% h¡ & 11.74% at the end of the corresponding previous fi nancial year. 6.2 ZH X dgybr Am¡a CÞ`rH aU: 6.2 CASH RECOVERY & UP GRADATION: (H amo‹S _o§) (` in crore) {ddaU 31.03.2018 31.03.2019 Particulars 31.03.2018 31.03.2019 ZH X dgybr (grAma) 1,790.12 3,368.72 Cash Recovery (CR) 1,790.12 3,368.72 CÞ`rH aU (`yOr) 2,718.64 1,824.04 Up Gradation (UG) 2,718.64 1,824.04 Hw b = grAma + `yOr 4,508.76 5,192.76 TOTAL = CR + UG 4,508.76 5,192.76 dV©_mZ {dÎm df© 2018-19 Ho Xm¡amZ EZnrE H$s ZH X dgybr Am¡a The Cash Recovery & Up gradation of NPAs during the CÞ`rH aU {nNbo df© Ho 4508.76 H amo‹S H$s VwbZm _o§ `5192.76 H amo‹S current fi nancial year 2018-19 was `5192.76crore as compared ahm & to `4508.76 crore in the previous year. 6.3 ASSET CATEGORY WISE CLASSIFICATION OF 6.3 AmpñV loUr Ho AmYma na 31.03.2019 H mo A{JŒ_mo§ H m AmpñVdma ADVANCES AS ON 31.03.2019. dJr©H aU: (` H$amoS> _| ` in crore) H«$.g§./ `Wm/As on 31.03.2017 `Wm/As on 31.03.2018 `Wm/As on 31.03.2019 S.No. loUr/Category Amount Hw$b AmpñV`m| H$m% Amount Hw$b AmpñV`m| H$m% am{e Hw$b AmpñV`m| H$m% am{e % to total assets am{e % to total assets Amount % to total assets 1 _mZH Standard 1,28,664.62 88.30 1,05,791.82 82.65 1,14,324.57 84.65 2 Ad_mZH Sub-Standard 5,094.60 3.49 5814.76 4.54 4,313.76 3.19 3 g§{X½Y Doubtful 11,839.41 8.13 16,087.82 12.57 15,781.63 11.69 4 hm{ZJV Loss 111.21 0.08 310.86 0.24 628.29 0.47 Hw$b G$U Gross Credit 1,45,709.84 100.00 1,28,005.26 100.00 1,35,048.22 100.00

6.4.1 ga\o gr… 6.4.1 SARFAESI: ~¢H Zo ga\o gr H m`©dmhr Ûmam EZnrE H$s dgybr hoVw VËna Am¡a g_`~Õ H X_ The Bank has taken swift and time bound steps for recovery of NPAs through SARFAESI Action. During the current ﬁ scal, CRmE h¢& dV©_mZ {dÎm df© Ho Xm¡amZ ga\o gr H m`©dmhr Ûmam 1633 ImVmo§ _o§ recovery/up gradation through SARFAESI action amounted ` 723.22 H amoS Ho EZnrE dgyb/CÞ{`V {H E JE & Bg_o§ ga\o gr H m`©dmhr to `723.22 crore in 1633 accounts. This includes recovery/up bmJy {H E OmZo Am¡a O_mZVr AmpñV`mo§ Ho H ãOm VWm {dHŒ ` go hr dgybr/ gradation on initiation of SARFAESI action and also through CÞ`Z ^r em{_b h¢ & repossession and sale of secured assets.

6.4.2 amîQ— ì`mnr _oJm B© - Zrbm_r 6.4.2 NATION WIDE MEGA E-AUCTION: O_mZVr AmpñV`mo§ H$s ga\o gr Ho A§VJ©V {~H«$s H admZo _o§ O_mZVr AmpñV`mo§ Conducting of Nation-wide Mega E-auction of secured assets is identiﬁ ed as a very effective strategy in putting up secured Ho amîQ—ì`mnr _oJm B© - Zrbm_r Am`moOZ H mo AÀNr aUZr{V Ho ê$n _o§ nhMmZ assets for sale under SARFAESI. Such auctions are conducted

{_br h¡ & Eogr Zrbm{_`mo§ H mo àYmZ H m`m©b` ñVa na dgybr à^mJ Ûmam CÀM by the Recovery Division at the Head ofﬁ ce level in a highly ì`mdgm{`H /bmJV à^mdr VarHo go B© - Zrbm_r nmoQ©b Ho gmW JR~§YZ H aHo professional/cost-effective manner through tie up with e-auction Am`mo{OV {H `m OmVm h¡& portals. {dÎmr` df© 2018-19 Ho Xm¡amZ {nNbo {dÎm df© H$s 423 g§n{Îm`mo§ H$s {~H«$s During the Financial Year 2018-19 till 31.03.2019, 510 properties were sold in the Mega e-auction/other auctions `462 21 Am¡a ZH Xr dgybr/CÞ`Z/g§n{Îm {dHŒ ` H m`©dmhr Ûmam àmßV . H amo‹S resulting in cash recovery/upgradation/property sale proceeds am{e H$s VwbZm _o§ 31.03.2019 VH 510 gån{Îm`mo§ H$s _oJm B© - Zrbm_r/ worth `510.84crore as compared to sale of 423 properties and AÝ` Zrbm_r _o§ {~H«$s H$s JB© Am¡a ZH Xr dgybr/CÞ`Z/g§n{Îm {dHŒ ` cash recovery/up gradation/sale proceeds of `462.21 crore H m`©dmhr Ûmam `510.84 H amo‹S H$s àmpßV H$s JB© & achieved in the previous ﬁ nancial year. amîQ—ì`mnr _oJm B©-Zrbm_r O_mZVr AmpñV`mo§ H mo ga\o gr Ho A§VJ©V bmZo Ho Nation-wide mega e-auction is a readymade platform for the branches to put up the secured assets for e-auction under the

{bE emImAmo§ hoVw EH V¡`ma _§M h¡ & B©-Zrbm_r H$s g_`-gmaUr H mo n`m©ßV SARFAESI Act. The schedule of the e-auctions are fi nalized g_` ahVo A§{V_ ê$n {X`m OmVm h¡ Am¡a emImAmo§/H m`m©b`mo§ H mo gy{MV {H `m well in advance and informed to the branches/offi ces to enable OmVm h¡ {Oggo do A{YH V_ g§»`m _o§ {~H«$s hoVw g§n{Îm`mo§ H$s nhMmZ H a gHo§ & them to identify and put up maximum number of properties for sale. 6.4.3 SrAmaQr gyQ: 6.4.3 DRT SUITS: ga\o gr _o§ H m`©dmhr H aZo Ho gmW hr Xo` H$s dgybr hoVw SrAmaQr _o§ ^r gyQ XO© Simultaneously with initiating action under SARFAESI, 31 201 34 `28507 16 {H E JE& _mM©, 9 H mo SrAmaQr _o§ {d{^Þ ñVamo§ na . suits have been fi led in DRTS for recovery of the dues. As on H amo‹S Ho 7083 _m_bo h¢& 31st March 2019, 7083 cases involving an aggregate amount of `28507.16 crore is in various stages at 34 DRTs. 6.4.4 g_Âmm¡Vm/EH ~ma {ZnQmZ: 6.4.4 COMPROMISE/ONE TIME SETTLEMENTS: g_Âmm¡Vm/EH ~ma {ZnQmZ H mo àmoËgm{hV {H `m Om ahm h¡& XwîH a EZnrE Compromise/One Time Settlement of NPAs is encouraged. The ImVmo§ H$s Amngr g_Âmm¡Vmo§ Ûmam dgybr H aZo Ho {bE ~¢H Zo AmHŒ m_H Vm¡a Bank has aggressively pursued Compromise/OTS Settlement as na g_Âmm¡Vm/AmoQrEg H mo EH à_wI dgybr `moOZm Ho ê$n _o§ AnZm`m h¡& a major recovery strategy to recover hard core NPA accounts emImAmo§ H mo `Wm g§^d A{YH go A{YH g_Âmm¡Vm àñVmdmo§ H mo Am§H m/_§H m through amicable settlement. Branches have been sensitized VWm àYmZ H m`m©b` H mo ñdrH¥ {V hoVw ôOZo H$s Amdí`H Vm go AdJV H am`m about the need for submitting as many OTS proposals as J`m h¡ & àYmZ H m`m©b` go ^r H m`©nmbH joÌ Ho AnZo Xm¡ao Ho Xm¡amZ EZnrE possible for sanction to ZO/CO & Head Offi ce. Executives from Head Offi ce during their visit to the fi eld, meet NPA CYmaH Vm©Amo§ Ho gmW ~¡RH H aVo h¢ Am¡a AmoQrEg àñVmd H mo àmßV H aVo h¢ & borrowers and source OTS proposals. During the Financial Year {dÎmr` df© 2018-19 Ho Xm¡amZ `845.67 H amo‹S Ho g_Âmm¡Vm/EH ~ma 2018-19, 56 Compromise/OTS proposals were approved for a {ZnQmZ àñVmdmo§ H mo àYmZ H m`m©b` ñVa na AZw_mo{XV {H `m J`m& total sum of `845.67 crore at H.O level.

ANNUAL REPORT 2018-19 49 6.4.5 H mn© [a`m`Vr -VI: 6.4.5 CORP RIYAYATI-VI: gm_mÝ` AmoQrEg Ho AÝVJ©V g_mYmZ Ho A{V[aº ~¢H Zo {deof AmoQrEg Apart from settlement under normal OTS, the Bank has also formulated special OTS Schemes. Corp Riyayati VI Scheme, a VI `moOZm ~ZmB© h¡& H mn© [a`m`Vr - `moOZm, EH ~ma {ZnQmZ `moOZm h¡ Omo One Time Settlement Scheme for small value NPAs with balance `10 bmI VH H$s ~H m`m am{e dmbo NmoQo EZnrE ImVmo§ Ho {bE ~ZmB© JB© outstanding up to `10.00 lakh was formulated and launched h¡ Am¡a 01.05.2018 go àmaå^ H$s JB© & `moOZm 31.03.2019 H mo g_mßV on 01.05.2018. The scheme came to a close on 31.03.2019. hwB©& 31.03.2019 VH Bg `moOZm Ho A§VJ©V `28.95 H amo‹S Ho 4993 ImVmo§ Till 31.03.2019, 4993 accounts were settled under the scheme H m {ZnQmZ {H `m J`m& BZ ImVmo§ Ho {ZnQmZ Ho Ûmam `28.95 H amo‹S H$s am{e for `28.95 crore. A sum of `28.95 crore have already been recovered. dgybr Om MwH$s h¡ & 6.4.6 LOK ADALAT: 6.4.6 bmoH AXmbV: The Bank has actively participated in the National Lok Adalats Zmbgm Ûmam Am`mo{OV amîQ—r` bmoH AXmbVmo§ _o§ ~¢H Zo àYmZ H m`m©b` Ed§ conducted by NALSA by involving the Law Offi cers at Head Am§M{bH H m`m©b` Ho {d{Y A{YH m[a`mo§ H mo em{_b H aVo hwE g{HŒ ` ê$n go Offi ce and Zonal Offi ces. During the Financial Year 2018-19, ^mJ {b`m & {dÎmr` df© 2018-19 Ho Xm¡amZ `31.86 H amo‹S Ho 3003 ImVo 3003 accounts were settled under Lok Adalat Scheme for bmoH AXmbV `moOZm Ûmam {ZnQmE JE & `7.09 H amo‹S H$s _m¡Ho na hr dgybr `31.86 crore. A total sum of `7.09 crore was recovered in cash on the spot. H$s JB© & 6.4.7 MISSION RECOVERY – 75 DAYS’ CAMPAIGN 6.4.7 {_eZ dgybr - 75 {Xdgr` A{^`mZ Am¡a ñQm\ _mÝ`Vm AND STAFF RECOGNITION SCHEME (HALLA BOL – `moOZm (h„m ~mob - Am¡a Omoa go): AUR JOR SE): Bank launched MISSION RECOVERY– 75 DAYS Campaign ~¢H Zo {_eZ dgybr - 75 {Xdgr` A{^`mZ Am¡a ñQm\ {_eZ `moOZm and Staff Recognition Scheme on 16.01.2019. The tagline/ 16.01.2019 H mo àmaå^ H$s & A{^`mZ H$s Q¡J bmBZ/Zmam h„m ~mob - slogan of the campaign was “HALLA BOL – AUR JOR SE”. Am¡a Omoa goo Wm & 16.01.2019 go 31.03.2019 VH H$s 75 {XZmo§ H$s During the campaign period of 75 days from 16.01.2019 to A{^`mZ H$s Ad{Y Ho Xm¡amZ ~¢H Zo `703.88 H amo‹S Ho EZnrE dgyb/CÞ`Z 31.03.2019, the bank could recover/upgrade NPAs to the tune of `703.88 crore. One of the notable achievements of the

{H E A{^`mZ _o§ ~¢H Ho àËòH dJ© Ho ñQm\ Ûmam nyU© CËgmh go em{_b campaign was the whole hearted involvement/participation of hmoZm/^mJ boZm A{^`mZ H$s EH C„oIZr` CnbpãY Wr & the rank and fi le in the campaign. g_ñV Am§M{bH H m`m©b`mo§ _o§ Am¡a AË`{YH EZnrE dmbr emImAmo§ _o§ Special Recovery Task Force comprising of 5-10 members 5 go 10 gXñ`mo§ H m EH {deof dgybr H m`©Xb ~Zm`m J`m h¡& Bg H m`©Xb were formed at all Zonal Offi ces and also NPA concentrated branches. The task force members extensively travelled to

Zo g_ñV `Wm g§^d dgybr Cnm`mo§ Ûmam dgybr Ho {bE MyH H Vm©Amo§ go {_bZo the fi eld for meeting the defaulters and recovering the dues Am¡a Xo` am{e H mo dgyb H aZo Ho {bE joÌ H m Xm¡am {H `m& CÝhmo§Zo emImAmo§ through all possible recovery measures. They supported H mo _oJm dgybr {e{da H m Am`moOZ H aZo Am¡a MyH H Vm©Amo§ na X~md ~ZmZo Ho the branches in holding Mega Recovery Camps and also for {bE CZHo Amdmg/H m`m©b`/\¡ ŠQ—r n[aga Ho gm_Zo _m¡Z/em§{VnyU© YmaUm/ holding silent/peaceful dharna/demonstrations in front of the àXe©Z H aZo _o§ ghm`Vm H$s & dgybr H m`© Xb joÌ _o§ dgybr H m`© H aVo g_` residence/offi ce/factory premises of the defaulters for building pressure on them. The recovery task force members wear {deof ê$n go {SOmBZ {H `m J`m O¡Ho Q nhZVo h¢ & specially designed jackets while they are on the recovery work h„m ~mob dr{S`mo H m§\Œo§ g E_Sr Ed§ grB©Amo, H m`©nmbH {ZXoeH Am¡a in the fi eld. AÝ` H m`©nmb H mo§ Ûmam àËòH nIdm‹So joÌ ñVa Ho H m`©H Vm©Amo§ go CZHo Fortnightly HALLA BOL Video Conferences are held by A§Mbmo§/_§Sbmo§ _o§ h„m ~mob - Omoa go A{^`mZ H$s àJ{V Ho g§~§Y _o§ the MD&CEO, Executive Director and other top executives with the fi eld level functionaries regarding the progress of the OmZH mar boZo hoVw H$s OmVr h¡ & ~mVMrV _o§ A{^`mZ H$s g\ b H hm{Z`mo§ “Halla Bol – Jor Se” Campaign in their Zones/Circles. Success Am¡a à{V gyMZmAmo§ H mo àmßV {H `m OmVm h¡& à~§Y {ZXoeH Am¡a grB©Amo Ho stories and feedback on the campaign were obtained during the {ZXoemo§ H mo gyMZm Ed§ AZwnmbZ Ho {bE {b{n~Õ Am¡a n[aMm{bV {H `m interactions. The MD & CEO’s directions to the fi eld were OmVm h¡& minuted and circulated for information and compliance.

50 dgybr à^mJ B© _ob Am¡a ìhmQ²gEßn Ho _mÜ`_ go X¡{ZH AmYma na A{^`mZ Recovery Division, through e-mails and WhatsApp, ﬂ ashed H$s àJ{V H mo àñVwV H aVm h¡& Omo emIm à_wI `10.00 bmI Am¡a A{YH H$s the campaign progress on a daily basis. The Branch Heads who recovered `10 lakhs & above were identiﬁ ed as Recovery dgybr H aVo h¢ , CZH$s dgybr M¡ån Ho ê$n _o§ nhMmZ H$s OmVr h¡ Am¡a B©-_ob Champs and their photographs along with their performance

Ed§ ìhmQ²gEßn g§Xoemo§ Ho _mÜ`_ go CZHo {ZînmXZ Ho gmW CZHo \ moQmoJŒm\ H mo were published through e-mails and WhatsApp messages. àH m{eV {H `m OmVm h¡& These activities created competitive spirit amongst the fi eld level Bg {HŒ `mH bmn go joÌ ñVa Ho A{YH m[a`mo§ _o§ à{VñnYm©Ë_H CËgmh OmJm h¡ functionaries which in turn contributed in the grand success of {OgZo Bg A{^`mZ H mo ^ì` g\ b ~ZmZo _o§ `moJXmZ {X`m h¡& the campaign. 6.4.8 _oJm dgybr {e{da: 6.4.8 MEGA RECOVERY CAMPS: ~¢H Zo g^r A§Mbmo§ _o§ ImVmo§, {deofH a NmoQo _yë` Ho EZnrE ImVmo§ H m {ZnQmZ Bank has organized Mega Recovery Camps across the Zones H mn© [a`m`Vr `moOZm/~¢H H$s gm_mÝ` AmoQrEg `moOZm Ho A§VJ©V H aZo hoVw for settlement of accounts, especially small value NPA Accounts _oJm dgybr {e{damo§ H m Am`moOZ {H `m & Eogo {e{da 4 go 5 Eogr emImAmo§ under Corp Riyayati Scheme/bank’s General OTS Scheme. Such camps were held jointly by 4 to 5 branches with high Ûmam g§`wº ê$n go Am`mo{OV {H E JE Ohm§ EH hr ñWmZ na A{YH EZnrE concentration of NPAs in a common venue. With the help of h¢ & {deof dgybr H m`© Xb Ho gXñ`mo§ Am¡a dgybr EOo§Qmo§ H$s ghm`Vm go Special Recovery Task Force members and Recovery Agents, the CYmaH Vm©Amo§ go g§nH© {H `m J`m VWm CÝho§ MMm© H aZo Ed§ CZHo b§~o g_` borrowers are contacted and brought to the negotiating table go b§{~V Xo` H m {ZnQmZ H aZo Ho {bE g_Âmm¡Vo Ho ñWmZ na bm`m J`m & Eogo for discussing and settling their long pending dues. Such camps {e{damo§ go ~‹Sr g§»`m _o§ NmoQo _yë` Ho EZnrE ImVmo§ H mo {ZnQmZo VWm ~§X H aZo helped in settling and closing a large number of small value _o§ ghm`Vm {_br h¡ & NPA accounts. 6.4.9 {deof d{Q©H b: 6.4.9 EXCLUSIVE VERTICALS: X~mdJŒñV/EZnrE ImVmo§/nrSãbyAmo ImVmo§ H$s {ZJamZr Ed§ AZwdV©Z _o§, Bg Monitoring and follow up of stressed/NPA accounts/PWO CÔoí` go àYmZ H m`m©b` VWm _§Sb H m`m©b`mo§ _o§ ~ZmE JE {deof ñH§ Y Ûmam accounts intensifi ed through exclusive verticals set up and Head Offi ce and Circle Offi ces for the purpose. Recovery in VoOr AmB© h¡ & {dÎm df© 2017-18 Ho `318.06 H amo‹S H$s VwbZm _o§ {dÎm df© Prudentially Written Off accounts during Financial Year 2018-19 2018 19 `706 88 - _o§ {ddoH nyU© T§J go ~Åo ImVo _o§ Smbo JE ImVmo§ _o§ dgybr . amounted to `706.88 crore as against `318.06 crore during H amo‹S ahr & Financial Year 2017-18.

6.4.10 AmB©~rgr 2016 Ho A§VJ©V EZgrEbQr H mo àofU Ûmam 6.4.10 RESOLUTION BY REFERRING TO NCLT g_mYmZ: UNDER IBC 2016: {Xdm{b`m VWm G$U emoYZ Aj_Vm g§{hVm (AmB©~rgr) 2016 Ho A§VJ©V Resolution of stressed/NPA accounts by referring to National X~mdJŒñV/EZnrE ImVmo§ H mo H mnmo©aoQ G$U emoYZ Aj_Vm g_mYmZ à{HŒ `m Company Law Tribunal (NCLT) under Insolvency and (grAmB©Amanr) Ho {bE amîQ—r` H§ nZr {d{Y Ý`m`m{YH aU (EZgrEbQr) H mo Bankruptcy Code, 2016(IBC) for Corporate Insolvency ào{fV H aZm ^r ~¢H mo§ Ho nmg Xo` H$s dgybr H aZo H m EH Cnm` h¡ & ^m[a~§¡ Resolution Process (CIRP) is yet another tool in the hands {ZXo{eV ImVmo§ H m àofU H aZo/g_mYmZ à{HŒ `m _o§ g{HŒ ` ê$n go ^mJ boZo of the Bank for recovery of the dues. Apart from referring/ proactively participating in the resolution process of the RBI Ho A{V[aº ~¢H Zo {d{^Þ ImVmo§ H mo AmB©~rgr 2016 Ho A§VJ©V g§kmZ _o§ directed accounts, bank has identiﬁ ed and referred various 31 03 2019 {b`m h¡ VWm EZgrEbQr H mo ^oOm h¡& . . VH EZgrEbQr Ho g_j accounts for resolution under IBC 2016 to NCLT. As on `15054.46 H amo‹S Ho 133 ImVo {d{^Þ ñVamo§ na h¢ & 31.03.2019 VH 31.03.2019, 133 accounts involving an amount of `15054.46 ~¢H AmB©~rgr 2016 Ho A§VJ©V g_mYmZ Ûmam `835.69 H amo‹S go A{YH H$s crore is before NCLT in various stages. Till 31.03.2019, the am{e dgyb H a MwH m h¡ & bank could recover more than `835.69 crore through resolution under IBC 2016. 7. Q—oµOar Ed§ {Zdoe n[aMmbZ 7. Treasury and Investment Operations 31 _mM©, 2019 H mo ~¢H H m Hw b {Zdoe, ~¢H Ho Omo{I_ Ad~moY VWm {Zdoe The aggregate investment of the Bank as on 31st March 2019 Zr{V g§~§Yr {Xem{ZXo©emo§ Ho AZwê$n à{V^y{V`mo§ Ho n[an¹Vm {_lU Ho gmW was `59,979.19 crore with maturity mix of securities consistent 59,979 19 . H amo‹S ahm& with risk perceptions and investment policies of the Bank.

ANNUAL REPORT 2018-19 51 [anmoQm©YrZ df© Ho Xm¡amZ {Zdoemo§ na Am¡gV AO©Z {nNbo df© Ho A§V Ho The average yield on investments during the year under report 7.43% H$s VwbZm _o§ 7.36% ahm& stood at 7.36% compared to 7.43% as at the end of the previous year. {Zdoemo§ H$s {~H«$s go àmßV {Zdb bm^ {nNbo df© Ho `735.83 H amo‹S H$s The net profi t/(loss) from sale of investments was `(80.93) VwbZm _o§ 31.03.2019 H mo g_mßV df© hoVw `(80.93) H amo‹S Wm& crore for the year ended 31.03.2019 as compared to `735.83 crore in the previous year. ~¢H Zo à^mdr Omo{I_ à~§YZ hoVw Ad{Y, Amemo{YV Ad{Y VWm Omo{I_ The Bank has put in place tools like Duration, Modifi ed na _yë` O¡go Cnm` bmJy {H E h¢& Duration and Value at Risk for effective risk management. 8. A§Vam©îQ—r` ~¢qH J 8. International Banking ~¢H _o§ 49 Zm{_V emImE§ Am¡a ~§Jbya _o§ pñWV EH \ maoŠg h~ h¡ Omo {dXoer The Bank has 49 Designated Branches and one Forex Hub at Bengaluru, which cater to the foreign exchange business. {d{Z_` H mamo~ma g§^mbVr h¢& df© 2018-19 Ho Xm¡amZ g§M`r ì`mnma Cumulative Merchant turnover has decreased by 16.90%, `75,347 36 16 90% 62,612 36 QZ©Amoda . H amo‹S go . KQH a . H amo‹S hmo from `75,347.36 crore to `62,612.36 crore, during the year J`m& 2018-19. Q—oOar H$s {dXoer {d{Z_` Am` df© Ho Xm¡amZ 153.10 H amo‹S go 35.22% Foreign Exchange Income of Treasury has decreased by 35.22%, KQH a `99.18 H amo‹S hmo JB© & from `153.10 crore to `99.18 crore, during the year. Zm{_V \ moaoŠg emImAmo§ H$s ewëH AmYm[aV Am` g{hV Hw b Am` `107 Fee Based Income from Designated Forex Branches has H amo‹S go 38.31% KQ H a `66 H amo‹S hmo JB© & decreased by 38.31% from `107 crore to `66 crore. Currency futures income has decreased by 19.61% from `8.92 df© Ho Xm¡amZ _wÐm ^{dî` Am` `8.92 H amo‹S go 19.61% KQH a 7.17 H amo‹S crore to `7.17 crore this year. ah J`r h¡& 9. Precious Metal Business 9. ~hw_yë` YmVw H mamo~ma License for import of Gold/Silver for our bank has been ^maVr` [a‹Od© ~¢H Zo nÌ g§X^© g§»`m Sr~rAma/AmB©~rSr/g§»`m. renewed by Reserve bank of India vide letter ref. No. DBR/ 8023/23.67.002/2018-19 {XZm§H 26 _mM©, 2019 Ûmam h_mao ~¢H IBD/No.8023/23.67.002/2018-19 DT 26th March, 2019 up to H m ñdU©/Mm§Xr Am`mV H aZo H m bmBgo§g 31.03.2020 VH ~‹Tm {X`m h¡ & 31.03.2020. 10. Designated Branches and Treasury and Investment 10. Zm{_V emImE± Am¡a Q—oµOar Ed§ {Zdoe à^mJ… Department 10.1 à{HŒ `m _o§ gwYma 10.1 Process Improvement H ) g^r àH ma Ho \ maoŠg boZXoZmo§ Ho {bE Zm{_V emImAmo§ Am¡a Q—oOar emIm Ho a) Straight Through Processing (STP) is in place between _Ü` ñQ—oQ WŒy àmogoqgJ (EgQrnr) àmaå^ H$s JB© h¡ & emImAmo§ Ho A{YH Va Designated Branches and Treasury Branch for all Forex Transactions. All the transactions of branches are auto boZXoZmo§ H m EgQrnr Ho Ûmam Q—oOar emIm _o§ ñd AÚVZ hmo OmVm h¡ & posted to Treasury accounting software through STP. I) g§~Õ emImAmo§ H mo aoQ M¡Q _m°S²`yb Ûmam grYo Q—oOar go Xa àmßV H aZo _o§ b) Link Branches have been enabled for taking the rate directly gj_ ~Zm`m J`m h¡ Am¡a g^r E\ grEZAma boZXoZ EgQrnr Ho AÝVJ©V from Treasury through Rate Chat Module and all the bmE JE h¢& Q—oOar emIm _o§ à{Vq~{~V eof EgQrnr Ho _mÜ`_ go Cgr FCNR transactions are brought under STP. Mirror balance at Treasury Branch is updated instantaneously through STP. g_` AÚ{VV hmoVm h¡ & c) Nostro entries are uploaded in the system due to which J) gr~rEg _o§ ZmoñQ—mo O_m H m AÚVZ ñWm{nV {H `m J`m h¡ {Oggo ZmoñQ—mo majority of the entries are getting auto reconciled. ImVmo§ H m ñdV: g_m`moOZ hmoVm h¡ & d) Exchange Houses - Reconciliation process has been K) {d{Z_` J¥h - g_m`moOZ à{HŒ `m H m gabrH aU {H `m J`m h¡ Ed§ {dXoer simplifi ed and daily balancing in Foreign Currency has been made available. _wÐm H m X¡{ZH {_bmZ CnbãY H am`m J`m h¡& e) Integration of the swift system with the CBS has been S.) pñdâQ àUmbr H m gr~rEg go EH$sH aU nyU© hmo MwH m h¡ Ed§ pñdâQ H mo completed and there is no provision for manual creation of _¡ZwAbr {Z{_©V H aZo H m H moB© àmdYmZ Zht h¡& SWIFT.

52 M) ~¢H Zo g^r ~mhar {dXoer _wÐm ^wJVmZmo§ Ho AZwdV©Z hoVw H ‹So _mZX§Smo§ H mo f) Bank has adopted stringent norms to follow up for all outward foreign currency payments and have also

AnZm`m h¡ Ed§ pñdâQ à_mUZ H m EH AbJ ñVa bmJy {H `m h¡ {Og go implemented a separate level of swift veriﬁ cation to ensure g^r ^wJVmZ gr~rEg _o§ gå~Õ à{dpîQ Ho ~mX hr à^mdr hmo nmE±& that all the payments are routed only after registering a corresponding entry in the CBS. N) ~|Jbyé \ maoŠg h~ H mo Zm{_V emImAmo§ H$s \ maoŠg Amdí`H$VmAmo§ Am¡a g) Forex Hub at Bangalore has been further strengthen

\o _m/^m[a~¡§/\o SmB© {Xem-{ZXo©emo§ Ho ~ohVa AZwnmbZ hoVw à{e{jV with trained staff to cater to the Forex requirement of all ñQm\ Ho gmW _O~yV {H `m J`m h¡ & AmJo ~‹TVo hwE, ~¢H Zo pñdâQ designated branches and ensure compliance of FEMA/ RBI/ n[aMmbZ go Ow‹So {Z`m_H {Xem{ZXo©emo§ H mo bmJy H aVo hwE h~ _o§ Am`mV FEDAI guidelines. As a step further, Bank has centralized all g§~§Yr g^r boZXoZmo§ H mo Ho ÝÐr`H¥ V {H `m h¡& its import related transactions at Hub thereby implementing the guidelines by the regulator related to Swift operations. O) ~¢H ~rEgB©, EZEgB© Am¡a E_EgB©AmB©Eb na _wÐm â`yMg© H$s g{HŒ ` h) Bank is actively trading in currency futures on BSE, NSE ê$n go Q—oqSJ H a ahm h¡ & and MSEIL to increase the proﬁ t.

11. CJmhr Ed§ ^wJVmZ godmE± (H¡ ßg) 11. Collection and Payment Services (CAPS) Keeping pace with the changing environment in the payment g§JŒhU Ed§ ^wJVmZ àUmbr _o§ ~XbVo n[adoe go Vmb_ob aIVo hwE VWm ~¢H Zo system, the Bank has initiated host of ‘customer centric’ df© Ho Xm¡amZ H B© JŒmhH Ho§ {ÐV VH$ZrH$s nhb H$s h¢& CZ_o§ h¢: technological initiatives during the year. Amongst them are:  dV©_mZ {dÎm df© Ho Xm¡amZ ìhmB©Q bo~b no_o§Q JoQdo godmAmo§ H mo ewê {H `m  White labelled Payment Gateway services were launched J`m - {dÎm df© 2018-19 60 B©nrOr JŒmhH h_ go Ow‹So> h¡& during current fi nancial year – 60 EPG clients were brought into our fold during the FY 2018-19.  H¡ ßg JŒmhH mo§ Ho {bE ~mhar/AmdH AmB©E_nrEg H mo Mmby {H `m J`m &  IMPS outward/inward enabled for CAPS clients.  dV©_mZ {dÎmr` df© Ho Xm¡amZ B©-gmBZ Ho _mÜ`_ go B©-OZmXoe Mmby  E-mandate through E-Sign is enabled during current {H `m J`m & fi nancial year.  h_mam ~¢H Q>rAmaB©S>rEg ßboQµ\ m°_© _o§ bmBd hmo J`m h¡ Am¡a CgZo Bg  Our Bank has gone live in TReDS platform and has ßboQµ\ m°_© Ho _mÜ`_ go E_EgE_B© H mo {dÎmnmofU ewê {H `m h¡& initiated fi nancing MSMEs through this platform.  BBPS as sponsoring bank started during the current  dV©_mZ {dÎm df© Ho Xm¡amZ àm`moOH ~¢H Ho ê$n _o§ ~r~rnrEg ewê hwAm& fi nancial year.  H m°anmoaoQ H mo E_AmB©Eg Ho {Z~m©Y {dVaU Ho {bE do~ godmAmo§ H mo ewê  Web services has been introduced for seamless delivery of {H `m J`m& MIS to Corporate The CAPS has H¡ ßg Zo Brought 262 new clients under its coverage during the year df© Ho Xm¡amZ 262 JŒmhH mo§ H mo AnZo gmW Omo‹Sm h¡ VWm `56.83 H amo‹S and has achieved an Income of `56.83 crore thereby showing H$s Am` àmßV H a Am` _o§ 33% Ed§ JŒmhH Ow‹Smd _o§ ^r gH mamË_H d¥{Õ about 33% growth in income and positive growth in client Xem©B© h¡ & acquisition. 12. Inter-Branch Accounts Reconciliation 12. A§Va emIm boIm g_m`moOZ 12.1 The Bank has put in place a Centralized Inter-Branch 12.1 ~¢H Zo aIaImd Ho Bg _hËdnyU© joÌ _o§ XjVm H mo ~ZmE aIZo Ho {bE Reconciliation system for Processing of Inter-Branch Transactions, in order to maintain effi ciency in this vital area A§Va emIm boZXoZmo§ H mo àg§ñH¥$V H aZo hoVw Ho ÝÐr` A§Va emIm g_m`moOZ of housekeeping. àUmbr H$s ñWmnZm H$s h¡& 12.2 During the fi nancial year 2018-19, the Bank continued to 12.2 {dÎm df© 2018-19 Ho Xm¡amZ ~¢H Zo A§Va emIm boZXoZmo§ H m g_` maintain its core competence in the area of timely reconciliation na g_m`moOZ H aZo Ho joÌ _o§ AnZr XjVm ~ZmE aIr& A§Va-emIm boZXoZmo§ of Inter-Branch transactions. The Inter-Branch transactions H$mo gm_mÝ`V… boZXoZ Ho AJbo {XZ hr àg§ñH¥ V H aHo g_mYmZ {H `m OmVm were generally processed and reconciled on the next day of

ANNUAL REPORT 2018-19 53 h¡& 31.03.2019 VH àd{V©V {H E JE g^r A§Va-emIm boZXoZmo§ H m the transaction. All Inter-Branch transactions originated up to g_mYmZ {H `m Om MwH m h¡ VWm 31.03.2019 H mo 13.08.2016 VH H$s 31.03.2019 stand reconciled and all entries up to 13.08.2016 (other than credits in respect of unpaid Demand Drafts) stand g^r à{dpîQ`mo§ H m (AXÎm _m§J S—mâQ Ho g§~§Y _o§ O_m H mo Nmo‹SH a) {ZagZ eliminated as at 31.03.2019. {H `m J`m h¡& 13. Information Technology Initiatives 13. gyMZm àm¡Úmo{JH$s nhb [1] ISO 27001:2013 CERTIFICATION FOR IT INFRA- [1] 27001 2013 ~¢H H$s AmB©Qr g§aMZm hoVw AmB©EgAmo : STRUCTURE OF THE BANK: à_mUrH aU : • Sustenance Audit for ISO 27001:2013 Certiﬁ cation • ~¢H Ho AmB©Qr BÝ\Œ mñQ—ŠMa {Og_o§ _¢Jbmoa Am¡a SoQm go§Qa under Information Security & Management System

Am¡a ~¢Jbmoa _o§ EZEbEg Am¡a SrAma goQAn em{_b h¢ H m [ISMS] Framework by British Standards Institution AmB©EgAmo 27001:2013 {~Œ{Qe _mZH g§ñWmZ Ûmam gyMZm [BSI] conferred on the IT Infrastructure of the Bank, gwajm Am¡a à~§YZ àUmbr Ho VhV à_mUZ (AmB©EgE_Eg) comprising ITD & DR setup at Mangalore and Data \Œo _dH© (~rEgAmB©) Ho {bE {Zdm©h Am°{SQ, OZdar 2019 Ho$ Centre & NLS at Bangalore, was successfully carried Xm¡amZ g\ bVmnyd©H {H `m J`m& out during January 2019. [2] ZoQdH© g§~§{YV nhb : [2] NETWORK RELATED INITIATIVES: • ~¢H Ho BÝ\Œ m H$s ZoQdH© {ZJamZr Am¡a à~§YZ godm H m à^ma • Network Monitoring & Management Service for AmB©~rE_ Ûmam EMgrEb H m°_ZoQ go EH {Z{dXm à{HŒ `m Ho _mÜ`_ the Bank’s infra was taken over by IBM from HCL Comnet through a tender process. The number of go {b`m J`m Wm& ~ohVa Am¡a VoO godm àmßV H aZo Ho {bE ~¢H Ho dedicated resources for the Bank has been suitably

{bE g_{n©V g§gmYZmo§ H$s g§»`m Cn`wº ê$n go ~‹TmB© JB© h¡& augmented to derive better and faster support. • emIm H _©Mm[a`mo§ Ûmam ~ohVa Cn`moJ AZw^d Ho {bE g^r • MPLS connectivity for all the branches have been emImAmo§ Ho {bE E_nrEbEg H ZopŠQ{dQr H mo Ohm± ^r g§^d hmo, upgraded to minimum throughput of 2Mbps Ý`yZV_ 2Mbps Ho WŒynwQ _o§ AnJŒoS {H `m J`m h¡& ì`mnma {Za§VaVm wherever feasible for better user experience for branch Ho {bE EH d¡H pënH godm àXmVm go g^r emImAmo§ Ho {bE staff. Process is on for providing secondary path for all _mÜ`{_H nW àXmZ H aZo Ho {bE à{HŒ `m Omar h¡& g^r _hËdnyU© branches from an alternate service provider for business continuity. Secondary connectivity has already been ñWmZmo§ Am¡a godm emImAmo§ H mo _mÜ`{_H H ZopŠQ{dQr àXmZ H$s Om provided to all critical locations and service branches. MwH$s h¡& [3] OTHER DIGITAL INTIATIVES: [3] AÝ` {S{OQb ewéAmV : • Bank’s fully revamped Mobile Banking Solution • ~¢H H m nyU©V: Z`m _mo~mBb ~¢qH J Eßn EÊS—moBS Am¡a AmB©AmoEg CorpEASE was rolled out for both Android and iOS XmoZmo§ ßboQ\ m_moª Ho {bE Omar {H `m J`m& H m°n© B©µO YZam{e platforms. CorpEASE collaborates a host of banking operations like funds transfer, bill payment, deposit ñWmZm§VaU, {~b ^wJVmZ, O_m ImobZo Am¡a MoH ~wH AZwamoY, opening & closure cheque book request, passbook nmg~wH à~§YZ, NwÅr H$s OmZH mar Am{X O¡go ~¢qH J H m`moª management, holiday information etc., enabling _o§ gh`moJ H a JŒmhH H mo CgH$s gw{dYm Ho g_`Am¡a ñWmZ na the customer to do banking transactions at the time ~¢qH J boZXoZ H aZo _o§ gj_ ~ZmVm h¡& AmdoXZ A§JŒoOr, qhXr Am¡a and location of his convenience. The application is AÝ` AmR ^maVr` ^mfmAmo§- H Þ‹S, V{_b, VobwJw, _b`mb_, available in English, Hindi and other eight Indian _amRr, JwOamVr, n§Om~r Am¡a C{‹S`m _o§ CnbãY h¡, ~¢H Zo languages – Kannada, Tamil, Telugu, Malayalam, Marathi, Gujarati, Punjabi and Oriya. The Bank has JŒrZ {nZ (Am°ZbmBZ So{~Q H mS© {nZ OoZaoeZ) H$s gw{dYm ^r ewê also introduced the features of Green Pin [online debit H$s h¡, Am¡a JŒmhH mo§ H mo CZH$s µOêaV Ho AZwgma AnZo So{~Q H mS© card pin generation], and a facility for customers to H mo ãbm°H /AZãbm°H H aZo H$s gw{dYm Xr JB© h¡& block/unblock their debit cards as per the their needs. • JŒmhH mo§ Ho AZw^d Am¡a gw{dYm H mo ~ohVa H aZo Ho {bE, Mmby ImVo • To enhance customer experience and convenience, the ImobZo Ho {bE Kaoby JŒmhH mo§ Ho {bE ~¢H Zo bmBd "" Q>¡~boQ> ~¢qH J'' Bank went live on “TABLET Banking for Domestic

54 H$s ewéAmV H$s h¡ & JŒmhH à_mUrH aU B©Ho dmB©gr Ho _mÜ`_ go customers for opening running accounts. Customer {H `m OmVm h¡ Am¡a {ddaUmo§ H mo ñdMm{bV ê$n go H moa ~¢qH J g_ authentication is done through eKYC and the details are parsed and updated in Core Banking Solution

mYmZ _o§ AÚVZ {H `m OmVm h¡& automatically. • ~¢H Zo _m¡OyXm B§QaZoQ ~¢qH J H mo EH g_H mbrZ ZE B§QaZoQ • Bank has replaced the existing Internet Banking with ~¢qH J AWm©V "{\ ZoH b B©-~¢qH J EßbrHo eZ' Ho gmW ~Xb a contemporary New Internet Banking viz., “FEBA”- {X`m h¡ {Og_o§ H B© Vah Ho {deofVmE± Am¡a gw{dYmE§ h¢& Eµ\ B©~rE Finacle e-Banking Application with a host of added 10.09.2018 go JŒmhH mo§ Ho {bE CnbãY H am`m J`m h¡& AZwHy bZ features and facilities. FEBA has been made available to customers with effect from 10.09.2018. Customizable `mo½` SoñH -Qm°n Q—m§OoŠeZ {b{_Q, goë\ -a{OñQ—oeZ, EpßbHo eZ desk-top transaction limit, self-registration, Mobile Ho Ëd[aV Cn`moJ Ho {bE _mo~mBb QmoH Z Eµ\ B©~rE H$s Hw N à_wI Token for quick access of the application are some of {deofVmE§ h¢& the key features of FEBA.

[4] gwajm g_mYmZ: [4] SECURITY SOLUTIONS: • ~¢H Ho ZoQdH© Am¡a SoQm gwajm pñW{V H mo _O~yV H aZo Ho {bE, • To fortify the network and data security posture of the Ama~rAmB© Ho gmB~a gwajm Tm§Mo H$s {g\ m[aemo§ Ho AZwê$n {d{^Þ Bank, various security solutions were implemented in line with the recommendations of the Cyber Security

gwajm g_mYmZ bmJy {H E JE Wo& _w»` g_mYmZ {ZåZm§{H V h¢ : Framework of RBI. Major implementations are: • _hËdnyU© gd©amo§ H$s Zr{V-AmYm[aV gwajm Ho {bE SoQm go§Qa gwajm • DATA CENTER SECURITY SOLUTION for g_mYmZ Omo ßboQ\ m_moª Am¡a AZwà`moJmo§ H$s EH {dñV¥V l¥§Ibm _o§ policy-based security of Critical Servers which provides Kwgn¡R H m nVm bJmZo Am¡a amoH Wm_ j_VmAmo§ H mo àXmZ H aVm h¡& Intrusion Detection and Prevention capabilities across • µ\ màdm°b Am¡a amCQa H mo gwa{jV H aZo Ho {bE ZoQdH© Zr{V à~§YZ a broad range of platforms and applications. g_mYmZ & • NETWORK POLICY MANAGEMENT SOLUTION for securing fi rewalls and routers [5] CËnmXH Vm dY©H nhb: [5] PRODUCTIVITY ENHANCEMENT INITIATIVES: • _mBHŒ mogm°âQ Ho gmW E§QaàmBO EJŒr_o§Q (B©E) Ho {hñgo Ho ê$n _o§, ŠbmCS-AmYm[aV Am°{\ g gwBQ Amo-365 Ho {d{^Þ CËnmXH Vm • As part of Enterprise Agreement (EA) with Microsoft, various productivity tools of cloud-based Offi ce Suite

CnH aU bmJy {H E JE : O-365 were implemented: • Am°ZbmBZ {d{Z_`: _O~yV ~¡H An j_VmAmo§ Ho gmW ŠbmCS • EXCHANGE ONLINE: Cloud based mailing service AmYm[aV _oqbJ godm Am¡a à{V _ob~m°Šg 100 Or~r H$s {dñVm[aV with robust backup capabilities and enhanced storage ^§SmaU gr_m& limit of 100 GB per mailbox. • H mB©Ombm : ì`mdgm{`H g§Mma Ho {bE E§QaàmBµO ñVa g§Xoe • KAIZALA : Enterprise level messaging solution for g_mYmZ& business communication. • nmda ~mB© : {~OZog B§Qo{bOo§g `wº SoQm {díbofH Qyb h¡, Omo SoQm Ho • POWER BI: Data analytic tool embedded with ì`mnH {díbofU _o§ _XX H aVm h¡ Am¡a Bgo EH ~w{Õ_mZ S¡e~moS© _o§ Business Intelligence, that helps in comprehensive n[ad{V©V H aVm h¡& analysis of data and converts it to an intelligent dashboard. • B© bqZ©J - eo`a nm°B§Q ßboQµ\ m°_© na {dH {gV ŠbmCS-AmYm[aV • E-LEARNING: Cloud-based knowledge enhancement kmZ d¥{Õ Am¡a _yë`m§H Z g_mYmZ& and evaluation solution developed on SharePoint 14. HŒo {SQ H mS© platform. 14.1 HŒo {SQ H mS© ì`{ºJV JŒmhH mo§ H mo IarXmar, `mÌm Am{X Ho g_` AmgmZ 14. Credit Cards Am¡a Omo{I_ _wº VarHo go ^wJVmZ H aZo H$s gw{dYm XoVm h¡& Bggo Ow‹Sr ì`mnH 14.1 Credit card facilitates the individual clients, a hassle free g§^mì`Vm H mo XoIVo hwE ~¢H Zo Bg nmoQ©\ mo{b`mo§ _o§ {dñVma H aZo Ho {bE H X_ and risk free way of making payments for shopping, travel etc. CRmE h¢& ~¢H _w»`V… AnZo dV©_mZ JŒmhH mo§ H mo H mS© Omar H aVm h¡& ~¢H Zo Xmo In view of the large potential associated with it, the bank has

ANNUAL REPORT 2018-19 55 ZE HŒo {SQ H mS© do[aE§Q éno ßbo{QZ_ Am¡a éno gobŠQ àmaå^ {H E h¢ & ~¢H Ho db taken steps to expand this portfolio. The bank is predominantly B©E_dr {Mn H mS© à`moJ H aVm h¡ & issuing cards to its existing customers. Bank is issuing only EMV chip cards. `473 27 14.2 `Wm 31 _mM© 2019 VH H$s pñW{V Ho AZwgma ~¢H Ûmam . 14.2 As on 31st March, 2019, the Bank has issued 71978 credit H amo‹S H$s Hw b G$U gr_m Ho gmW 71978 HŒo {SQ H mS© Omar {H E JE h¢ {OZHo cards with an aggregate credit limit of `473.27 crore having A§VJ©V `60.11 H amo‹S ~H m`m eof h¢& outstanding balance of `60.11 crore. 14.3 2018-19 hoVw ~¢H Zo HŒo {SQ H mS© nmoQ©\ mo{b`mo Ho VhV `24.08 H amo‹S 14.3 The Bank earned total income of `24.08 crore and Gross H$s Hw b Am` Am¡a `18.26 H amo‹S H m gH b bm^ A{O©V {H `m h¡& df© Profi t of `18.26 crore for 2018-19 under credit card portfolio. 18.35 lakh POS transactions aggregating to `445.47 cr. were 8 19 `445 47 201 - Ho Xm¡amZ BZ H mSmoª H m BñVo_mb H aVo hwE Hw b . H amo‹S Ho transacted using these cards during the year 2018-19. 18.35 bmI nrAmoEg boZXoZ {H E JE& 14. 4 For customer convenience, the bank has introduced tech 14.4 JŒmhH gw{dYm hoVw ~¢H Zo àm¡Úmo{JH$s CÝ_wI godmE± O¡go JŒmhH Ûmam savvy services such as instant PIN generation by the customer, VwaÝV {nZ {Z_m©U, EgE_Eg AbQ©, H mS© YmaH Ûmam EgE_Eg ôOH a H mS© SMS alerts, Hot-listing the card by sending SMS by the card H mo hmoQ{bñQ H aZm, B©-{ddaU, HŒo {SQ H mS© ã`moao H m Am°ZbmBZ AdbmoH Z, holder, e-statements, online viewing of credit card details, ATM interface and verifi ed by visa authentications for online Am°ZbmBZ boZXoZmo§ hoVw EQrE_ B§Qa\o g VWm do[a\ mBS ~mB© drgm A{Yà_mUZ transactions and issuance of OTP (One Time Password) for VWm g^r B©-H m_g© boZXoZmo§ Ho {bE AmoQrnr (dZ QmB_ nmgdS©) Omar H aZm all e-commerce transactions. All these facilities are expected to Am{X gw{dYmE± CnbãY H amB© h¢& BZ g^r gw{dYmAmo§ go JŒmhH mo§ Ûmam H mS© help the customers to use the Cards effi ciently. During the year Ho H maJa Cn`moJ _o§ _XX {_bZo H$s Cå_rX h¡& df© 2018-19 Ho Xm¡amZ 2018-19, a total of 4931 complaints were received from the HŒo {SQ H mS© JŒmhH mo§ go Hw b 4931 {eH m`Vo§ àmßV hwB©& BZ g^r {eH m`Vmo§ H m credit card customers. All these complaints were resolved to the satisfaction of Customers. g_mYmZ JŒmhH H$s g§Vw{ï> VH$ {H `m J`m& 14.5 LIC Co-branded Credit Cards: Our Bank has entered

14.5 EbAmB©gr H mo-~Œm§SoS HŒo {SQ H mS©: h_mao ~¢H Zo ^maVr` OrdZ into an agreement with LIC Cards Services LTD., (LICCSL), ~r_m Ho JŒmhH mo§ (nm°{bgrYmaH ), H _©Mm[a`mo§ Am¡a EOo§Qmo§ H mo ~¢H Ûmam g§`wº a wholly owned subsidiary of LIC of India, for issuance ~Œm§S H m HŒo {SQ H mS© Omar H aZo Ho {bE EbAmB©gr H mS© g{d©goO {b{_QoS of co-branded Credit Cards by the Bank to the customers (EbAmBgrgrEgEb), ^maVr` OrdZ ~r_m H§ nZr H$s nyU© ñdm{_Ëddmbr (policy holders), employees and agents of LIC of India. As ghm`H H§ nZr, Ho gmW H ama {H `m h¡& H ama Ho AZwgma EbAmBgrgrEgEb per understanding, the LICCSL will source application for credit cards from the policy holders, directly and also through HŒo {SQ H mS© H m AmdoXZ nm{bgr YmaH mo§ go grYo Am¡a AnZo EOo§Qmo§ Ho ghmao agents. The bank has issued 38616 cards till 31.03.2019 with àmßV H aoJm ~¢H Zo 31.03.2019 VH `223.78 H amo‹S H$s Hw b gr_m Am¡a aggregate limit of `223.78 cr. and balance outstanding of `10.41 H amo‹S H$s ~H m`m am{e Ho gmW 38616 H mS© Omar {H E h¢ & `10.41 cr.

14.6 So{bdar M¡Zb: 14.6 Delivery Channels: 14.6.1 EQrE_… 31.03.2019 VH ~¢H Zo 3,015 EQrE_ g§ñWm{nV 14.6.1 ATMs: As on 31.03.2019, Bank had installed 3,015 ATMs. of this 1,285 ATMs are under owned model, 1,730 1,285 1,730 {H E h¢& BZ_o§ EQrE_ ñdm{_Ëd _m°Sb Ho AYrZ h¢, EQrE_ ATMs are installed under DFS initiated outsourced Model. SrE\ Eg ào[aV AmCQgmoñS© _m°Sb Ho AYrZ g§ñWm{nV h¢ & 14.6.2 Debit Cards: As on 31st March, 2019, the total number 14.6.2 So{~Q H mS©… 31 _mM© 2019 VH H$s pñW{V Ho AZwgma Hw b So{~Q of outstanding debit cards (all variants) stood at 78.74 lakhs. In H mSmoª (g^r àH ma Ho ) H$s g§»`m 78.74 bmI h¡& Ama~rAmB© Ho {Xem{ZXo©emo§ compliance with RBI guidelines, Bank is phasing out Magnetic Ho AZwnmbZmW©, ~¢H Zo MaU~Õ ê$n go _¡¾o{QH ñQ—mBn H mSmoª H mo EMV H mSmoª Stripe cards and replacement EMV cards are issued free of go ~Xb H a Bgo {Z…ewëH Omar {H `m& charges. 14.6.3 Sponsoring Small Banks for VISA Sub Membership: 14.6.3 drµOm Cn gXñ`Vm hoVw NmoQo ~¢H mo§ H mo àm`mo{OV H aZm… ßbmpñQH Expanding the scope of plastic money, the Bank has enabled _Zr Ho Xm`ao H mo ~‹TmVo hwE ~¢H Zo NmoQo ~¢H mo§ H mo Cn gXñ`Vm Ho µAnZo JŒmhH mo§ smaller banks to issue VISA branded cards to its customers H mo drµOm ~Œ¢S Ho H mS© Omar H aZo H m A{YH ma {X`m h¡& Cº gw{dYm go NmoQo through Sub-Membership. The facility has empowered the ~¢H mo§ Ho JŒmhH geº hwE h¢ Am¡a CÝho§ d¡{œH ñdrH¥ {V XoVo hwE ßbmpñQH customers of such smaller banks by bringing them into the

56 _Zr g§ñH¥ {V _o§ bm`m J`m& 31.03.2019 VH ~¢H Zo 4 NmoQo ~¢H mo§ plastic money culture giving them global acceptance. As H mo àm`mo{OV {H `m Am¡a Bg ì`dñWm go ~¢H H$s ewëH Am` _o§ d¥{Õ of 31.03.2019 Bank has sponsored 4 small Banks and this hwB© h¡& arrangement has augmented the fee income of the Bank. 14.6.4 B©-bm°~r… AnZo JŒmhH mo§ H mo ~¢qH J gw{dYm àXmZ H aZo Ho HŒ _ _o§, 14.6.4 e-lobby: In order to provide banking convenience to our ~¢H B©-bm°~r n[aMm{bV H a ahm h¡& "" B©-bm°~r "" EH ñd`§ godm ñdMm{bV customers, Bank has operationalised e-Lobby. The “e-Lobby” {H `moñH h¡, {Og_o§ ZH X O_m _erZ, MoH O_m _erZ, ñd` godm nmg~wH has self-service automation kiosks like ATMs, Cash Deposit qàQa Am¡a EH EQrE_ em{_b h¡& _erZo§ à`moºmZwHy b h¢ Am¡a JŒmhH Ûmam Machine etc. As on 31.03.2019, Bank has operationalized 345 AmgmZr go Cn`moJ {H `m Om gH Vm h¡& `Wm 31.03.2019 H mo ~¢H _o§ 345 e-Lobbies. B©-bm°{~`m§ n[aMm{bV h¢& 14.6.5 POS Terminals: As of 31.03.2019, the Bank has 14.6.5 nrAmoEg _erZo§: `Wm 31.03.2019 VH ~¢H Zo {d{^Þ ì`mnm[aH installed 2.21 lakh POS terminals (including Mobile POS) à{VîRmZmo§ _o§ 2.21 bmI nrAmoEg _erZo§ (_mo~mB©b nrAmoEg g{hV) bJmB© at various Merchant Establishments. This value added service h¢& Bg _yë`d{Y©V godm go ~¢H H mo Z Ho db ZE JŒmhH mo§ H mo bmZo _o§ ~pëH has enabled the Bank to not only enrol new customers but also dV©_mZ JŒmhH mo§ H mo amoHo aIZo _o§ ^r _XX {_br& ~¢H {ZnQmZ ~¢H Ho ê$n _o§ retain existing customers. The Bank is also sponsoring smaller H m`© H aVo hwE nrAmoEg A{^JŒ{hV H aZo Ho {bE NmoQo ~¢H mo§ H mo àm`mo{OV ^r Banks for POS acquisition by acting as settlement Bank. H a ahm h¡& 14.6.6 Mobile App: To enable our customers avail Banking 14 6 6 . . _mo~mBb Eßn: h_mao JŒmhH mo§ H mo CZHo ñ_mQ© \ moZ Ûmam ~¢qH J services through their smart phones, Bank had introduced Corp godmAmo§ H mo àmßV H aZo _o§ gj_ ~ZmZo hoVw, ~¢H Zo nmda n¡H gw{dYmAmo§, O¡go Ease, a mobile app with power packed features like Debit card {H So{~Q H mS© H mo ãbm°H /AZãbm°H H aZm, So{~Q H mS© JŒrZ nrZ H m goqQJ/ blocking/Unblocking, Debit Card Green PIN setting/resetting, [agoqQJ, {~b ^wJVmZ BË`m{X, Ho gmW H m°n©B©µO _mo~mBb Eßn H$s ewéAmV Bill Payments etc. As of 31.03.2019, 6.64 lakh customers have H$s h¡& 31.03.2019 VH H m°n©B©µO Ho {bE 6.64 bmI JŒmhH mo§ Zo n§OrH aU registered for Corp Ease. H adm`m h¡& 15. Marketing Initiatives 15. {dnUZ nhb A marketing set up is in place at Head offi ce and at all Zonal H mamo~ma {dH mg Ho {bE JŒmhH mo§ VH nhw±MZo Ho joÌ ñVar` ñQm\ H mo ~¢H Ho Offi ces of the Bank to support the efforts of the fi eld level staff à`mgmo§ _o§ _XX XoZo Ho {bE àYmZ H m`m©b` Am¡a Am§M{bH H m`m©b`mo§ _o§ in reaching out to the customers for business development. {dnUZ Tm±Mm ~Zm`m J`m h¡& The Division has launched various drives during the fi scal 2018 19 Bg {d^mJ Zo Bg {dÎmr` df© - _o§ AÝ` nj Am` H mo gwYmaZo H$s year 2018-19 with an aspiration of improving the third party

AmH m§jm go {d{^Þ A{^`mZmo§ H$s ewéAmV H$s h¡& income. 15.1 EnrdmB©, nrE_OoOo~rdmB© Ed§ nrE_Eg~rdmB© A{^`mZ : ~¢H 15.1 APY, PMJJBY & PMSBY Campaigns: Bank have Zo {dÎmr` df© 18-19 Ho Xm¡amZ AQb no§eZ `moOZm (EnrdmB©), àYmZ_§Ìr conducted campaigns to enroll customers under Atal Pension gwajm ~r_m `moOZm(nrE_Eg~rdmB©) Ed§ àYmZ_§Ìr OrdZÁ`mo{V ~r_m `moOZm Yojana (APY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) (nrE_OoOo~rdmB©) Ho VhV JŒmhH mo§ H mo Zm_m§{H V H aZo hoVw A{^`mZ Am`mo{OV and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) in the {H `m & A{^`mZmo§ Ho Xm¡amZ EnrdmB© `moOZm hoVw 29,584, nrE_Eg~rdmB© FY 18-19. During the drives, 29,584 APY, 1,09,291 PMSBY `moOZm hoVw 1,09,291 Ed§ nrE_OoOo~rdmB© `moOZm hoVw 40,003 ZE JŒmhH mo§ and 40,003 PMJJBY new customers were enrolled.

H mo Zm_m§{H V H aZo _o§ g\ b ahm& 15.2 Religare Health Insurance Drive: Various drives to 15.2 aobrJoa ñdmñÏ` ~r_m A{^`mZ : aobrJoa ñdmñÏ` ~r_m CËnmX canvas Religare Health insurance product, were conducted in Ho àMma Ho {bE {dÎmr` df© 2018-19 _o§ EH A{^`mZ Am`mo{OV FY 2018-19. During the drives Bank have canvased Premium {H `m J`m& A{^`mZ Ho Xm¡amZ ~¢H Zo 9.40 H amo‹S àr{_`_ H m g§JŒhU worth `9.40 Cr.

{H `m& 15.3 Payroll Segment: 15.3 noamob I§S In total Bank has mobilized 1,11,461 Payroll accounts during ~¢H Zo {dÎm df© 2018-19 Ho Xm¡amZ 1,11,461 no amob ImVmo§ H m g§JŒhU the Fiscal year 2018-19 comprising of all the variants of Corp {H `m ~¢H {Og_o§ H mn© no amob ImVmo§ Ho g^r àH ma em{_b h¢& ~¢H Zo 10,825 Payroll Accounts. Bank Canvased 10,825 Corp Elite and Delite H mn© EbrQ VWm {SbmBQ ImVo H m àMma {H `m Omo Ho§ Ðr` VWm amÁ` gaH ma account which is salary accounts for Central and State Govt. {d^mJmo§ VWm nrEg`y ñQm\ Ho doVZ ImVo h¢& Departments and PSU staffs. ANNUAL REPORT 2018-19 57 16. JŒmhH godm 16. Customer Service 16.1 gwYma Ho _wÔo: 16.1 Reforms Agenda: Customer Service Division secured 75 per cent marks in the Ease _§Ìmb` Ûmam {d{^Þ _mnX§S>m| go g§~§{YV, B©O [a\ moåg© EOo§Sm gdo© Ho VhV Reforms agenda survey conducted by the Ministry pertaining to 30 09 2018 31 12 2018 75 JŒmhH godm {d^mJ H mo {XZm§H . . Ed§ . . H mo various parameters as on 30.9.2018 and 31.12.2018, secured à{VeV A§H {_bo Ed§ {eH m`V go {ZnQZo H$s à{HŒ `m Ho _yë`m§H Z _o§ 100 100 per cent marks in the Assessment of complaint handling à{VeV A§H {_bo Am¡a 30.09.2018 VWm 31.12.2018 H mo g_mßV XmoZmo§ process and 99 per cent for Customer Grievance redressal for hr {V_mhr Ho {bE JŒmhH {eH m`V {ZdmaU Ho {bE 99 à{VeV A§H {_bo& both the quarters ending on 30.9.2018 and 31.12.2018.

16.2 grnrOrAmaEE_Eg {eH m`Vo§: 16.2 CPGRAMS Complaints: 31.03.2019 H mo g_mßV hmoZo dmbr Ad{Y _o§ _§Ìmb` Ho grnrOrAmaEE_Eg During the 31.03.2019, 863 Complaints were disposed of in do~ nmoQ©b _o§ 863 {eH m`Vmo§ H m g_mYmZ {H `m J`m Am¡a `Wm 31.03.2019 CPGRAMS Web Portal of the Ministry and there were no H mo grnrOrAmaEE_Eg Ho VhV 60 {XZmo§ go A{YH g_` go b§{~V {eH m`Vo§ CPGRAMS Complaint pending against our Bank for more eyÝ` h¡& _§Ìmb` Ûmam ào{fV gyMr _o§ h_mao ~¢H Ho {déÕ {H gr {eH m`V H mo than 60 days as on 31.03.2019. The list sent by Ministry during the year showed no complaint pending against our Bank. b§{~V Zht {XIbm`m J`m h¡& 16.3 ~¢qH J bmoH nmb _m_bo: 16.3 Banking Ombudsman cases: 31.03.2019 H mo g_mßV {dÎmr` df© Ho Xm¡amZ 370 ~¢qH J bmoH nmb _m_bo During the year ended 31.03.2019, 370 Banking Ombudsman cases were fi led and 372 Banking Ombudsman cases were XO© {H E JE Am¡a 372 ~¢qH J bmoH nmb _m_bmo§ H m g_mYmZ {H `m J`m & Disposed. There was only 4 Award against our Bank. h_mao ~¢H Ho {déÕ {g\© 4 {ZU©` hwE& 16.4 ^m[a~§¡ {eH m`Vo§: 16.4 RBI Complaints: 31.03.2019 H mo g_mßV df© Ho Xm¡amZ 59 {eH m`Vo§ àmßV hwB©§ Am¡a g^r During the Year ended 59 Complaints were received and all the complaints were disposed of. There were no pending complaints {eH m`Vmo§ H mo {ZnQm`m J`m& 31.03.2019 H mo ^maVr` [a‹Od© ~¢H Ûmam àmßV received through Reserve Bank of India as on 31.03.2019. {eH m`Vmo§ _o§ H moB© ^r {eH m`V b§{~V Zht h¡& 16.5 _§Ìmb` {eH m`Vo§: 16.5 Ministry Complaints: During the Year ended 31.03.2019 there were no pending 31.03.2019 H mo g_mßV df© Ho Xm¡amZ _§Ìmb` Ûmam H moB© ^r b§{~V {eH m`V complaints received through Ministry. àmßV Zht hwB© & 16.6 AmaQrAmB© {eH m`Vo§ Am¡a Anrb: 16.6 RTI Application and Appeals: 31.03.2019 H mo g_mßV df© Ho Xm¡amZ 130 AmaQrAmB© AmdoXZ Am¡a 46 During the year ended 31.03.2019, 130 RTI Applications were disposed of and 46 RTI Appeals were disposed of. There were no 9 AmaQrAmB© Anrb {ZnQmB© JB©§ & 31.03.201 H mo H moB© ^r b§{~V AmaQrAmB© pending RTI Applications and RTI Appeals as on 31.03.2019. AmdoXZ Am¡a AmaQrAmB© Anrb Zht Wr & 17. Integrated Risk Management System 17. EH$sH¥ V Omo{I_ à~§YZ àUmbr 17.1 Basel-III Compliance: 17.1 III ~ogb AZwnmbZ: 17.1.1 Banks and other fi nancial institutions all over the 17.1.1 Xw{Z`m â Ho ~¢H Am¡a {dÎmr` g§ñWmE§ nhbo go ^r A{YH nañna world have become more interconnected than ever as the time ê$n go Ow‹S JB© h¢ Š`mo§{H {dÎmr` OJV H m g_`-joÌ {gHw ‹S J`m h¡ Am¡a zones separating the fi nancial world has shrunk and truly world `h {dœ gM_wM EH NmoQr OJh ~Z J`m h¡& bo{H Z Bg EH$sH aU H m `h has become a smaller place. This integration however also means that geo-political risks arising in one part of the globe ^r _Vb~ hmoVm h¡ {H {dœ Ho EH {hñgo H m ^y-amOZ¡{VH Omo{I_ {dœ Ho also affects other part of the world. Thus, with each passing Xygao {hñgo H mo ^r à^m{dV H aVm h¡& Bg àH ma, àËòH {XZ Ho ~rVZo na ZE day newer and more complex risks are arising and fi nancial Am¡a A{YH O{Qb Omo{I_ CËnÞ hmo aho h¢ Am¡a {dœ â H$s {dÎmr` g§ñWmAmo§ institutions across the world have to continuously enhance and H mo ~‹TVo Omo{I_mo§ H m gm_Zm H aZo Ho {bE AnZr Omo{I_ à~§YZ VH ZrH mo§ improve their risk management techniques and architecture Am¡a g§aMZm H mo {Za§Va ê$n go ~‹TmZm Am¡a gwYmaZm n‹SVm h¡& ~ogb II Am¡a to address the growing risks. Basel-II and Basel-III accord are

58 ~ogb III g_Âmm¡Vo H m CÔoí` {d{^Þ A{YH ma joÌmo§ Am¡a {d{^Þ Xoemo§ aimed at harmonizing the practices adopted by various banks _o§ n[aMmbZaV {d{^Þ ~¢H mo§ Ûmam AnZmB© OmZo dmbr àWmAmo§ H mo EH operating across jurisdictions and countries, under a common gm_mÝ` n`©dojr Tm±Mo Ho AYrZ bmVo hwE Omo{I_ à~§YZ àWmAmo§ _o§ EH ê$nVm supervisory framework, thus bringing uniformity in the Risk management practices. bmZm h¡& 17.1.2 Risk Management is an integral part of Bank’s 17.1.2 Omo{I_ à~§YZ ~¢H H$s g§JRZmË_H g§aMZm Am¡a H mamo~ma aUZr{V organizational structure and business strategy. Identiﬁ cation,

H m EH A{^Þ A§J h¡& Omo{I_mo§ H mo nhMmZZo, _mnZo, {ZJamZr H aZo Am¡a measurement, monitoring and controlling the risks enables the Bank {Z`§{ÌV H aZo go ~¢H H mo hm{Z`mo§ H mo H _ H aZo Am¡a bm^ A{YH V_ H aZo _o§ to minimize losses and maximize proﬁ ts. The major risks faced by _XX {_bVr h¡& ~¢H Ûmam gm_Zm {H E Om aho _w»` Omo{I_ h¢ G$U Omo{I_, the Bank are Credit Risk, Market Risk and Operational Risk. ~mµOma Omo{I_ Am¡a n[aMmbZJV Omo{I_& 17.1.3 Our Bank has constituted, three internal committees of executives, namely, Credit Risk Management Committee, 17.1.3 h_mao ~¢H Zo EH$sH¥ V Omo{I_ à~§YZ àUmbr Ho H m`m©Ýd`Z H$s Market Risk Management Committee/Asset Liability

XoIaoI hoVw H m`©nmbH mo§ H$s VrZ Am§V[aH g{_{V`m| AWm©V² G$U Omo{I_ Management Committee and Operational Risk Management à~§YZ g{_{V, ~mµOma Omo{I_ à~§YZ g{_{V/AmpñV Xo`Vm à~§YZ g{_{V Committee – for looking after the implementation of Am¡a n[aMmbZJV Omo{I_ à~§YZ g{_{V J{RV H$s h¡& ~¢H _o§ Omo{I_ à~§YZ Integrated Risk Management system. The Board oversights on {HŒ `mH bmn na ~moS© H$s {ZJamZr ~moS© H$s Omo{I_ à~§YZ g{_{V Ûmam H$s OmVr Risk Management activities in the Bank is done through Risk h¡& Management Committee of the Board. 17.1.4 The Bank has put in place Internal Capital Adequacy 17.1.4 ~¢H Zo g§^mì` Omo{I_mo§ Ho _yë`m§H Z Ho {bE Am§V[aH ny±Or Assessment Process (ICAAP) to assess the risks to which it n`m©ßVVm {ZYm©aU à{HŒ `m (AmB©grEEnr) bmJy H$s h¡ VWm BZ Omo{I_mo§ Ho is exposed and has put risk management process in place à~§YZ d H _ H aZo hoVw VWm BZ Omo{I_mo§ Ho gmnoj ny±Or n`m©ßVVm H m _yë`m§H Z to manage and mitigate those risks and evaluate the capital H aZo hoVw Omo{I_ à~§YZ à{HŒ `m bmJy H$s h¡& Omo{I_ {ZYm©aU H mo ~‹TmZo VWm adequacy relative to these risks. To enhance risk assessment and AË`§V Xy^a n[apñW{V`mo§ _o§ ^r g§^mì` à^md Ho g§~§Y _o§ ~¢H H mo ~ohVa to have a better understanding of the likely impact in extreme g_Âm àXmZ H aZo hoVw, X~md narjU à{HŒ `m H$s OmVr h¡& X~md narjU ~¢H mo§ circumstances, stress testing process is conducted. Stress Testing enables the Banks to identify the vulnerable areas, if any, and H mo ZmµOwH joÌ, `{X H moB© h¡, H mo nhMmZZo Am¡a Cn`wº AmH pñ_H `moOZmE§ to prepare for the same by developing appropriate contingency {dH {gV H aHo CgHo {bE V¡`ma hmoZo _o§ g_W© H aVm h¡& plans. 17.1.5 ~¢H Zo G$U, ~mµOma VWm n[aMmbZ Omo{I_ go g§~§{YV 16 nm°{b{g`m± 17.1.5 Bank has also put in place 16 Policies related to ^r bmJy H$s h¢ {OgH$s g_rjm Amdí`H Ama~rAmB© {Xem{ZXoemo§ VWm Am§V[aH Credit, Market and Operational risk, which are being reviewed n[anÌmo§ H mo Ü`mZ _o§ aIVo hwE H$s OmVr h¡& on an annual basis after taking into account the necessary RBI guidelines and internal circulars.

17.2 G$U Omo{I_ 17.2 Credit Risk 17.2.1 G$U Omo{I_ Ho joÌ _o§ ~¢H Zo df© 2006 _o§ dm{UpÁ`H G$U joÌ 17.2.1 In the area of credit risk, the Bank has in the year 2006 Ho A§VJ©V CYmaH Vm©Amo§ Ho {bE bmJy aoqQJ _m°Sb {HŒ `mpÝdV {H E Wo& `o implemented the rating models applicable for borrowers under aoqQJ _m°Sb Omo{I_ {ZYm©aU _m°Sçyb (a¡_) Zm_ Ho do~ AmYm[aV B§QaàmBµO commercial loan segment. The rating models are working on dmBS goë`yeZ na H m_ H aVm h¡& dV©_mZ _o§ `25 bmI Am¡a Cggo A{YH Ho web based enterprise wide solution called Risk Assessment Module (RAM). This software, which is currently being used EŠgnmoµOa dmbo CYmaH Vm© H m _yë`m§H Z H aZo Ho {bE BñVo_mb {H `m OmVm to appraise the borrowers with exposure of `25 lakh and above, h¡ Am¡a _yë`m§H Z ZmoQ V¡`ma H aVo g_` aoqQJ H m AmH bZ H aZo _o§ ~¢H H mo enables the Bank to assess the ratings while preparing the g_W© H aVm h¡& G$U A{YH m[a`mo§ Ûmam {ZYm©[aV aoqQJ hoVw Omo{I_ à~§YH mo§ appraisal notes. This apart, Bank has put in place independent Ûmam ñdV§Ì à_mUrH aU bmJy {H `m h¡& `h ~ogb-III VWm AmB©E\ AmaEg validation by Risk Managers of rating assigned by credit ofﬁ cers. Ho AmB©Ama~r X¥pîQH moU _o§ n[ad{V©V hmoZo hoVw SmQm~og Ho g¥OZ _o§ ^r ghm`H It will also help in creating database for moving over to the IRB hmoJm& approaches of Basel – III and IFRS. 17.2.2 ~¢H Zo ny±Or AmH bZ _m°S`yb (H¡ _) ^r àmßV {H `m h¡, {Ogo ^m[a~¢ 17.2.2 The Bank has procured Capital Assessment Module Ûmam {ZYm©[aV AZwgma ~ogb-III Ho _mZH$sH¥ V X¥pîQH moU Ho A§VJ©V G$U (CAM), used for capital computation of credit risk under

ANNUAL REPORT 2018-19 59 Omo{I_ Ho ny±OrJV n[aH bZ Ho à`moOZmW© BñVo_mb {H `m OmVm h¡& ~¢H standardized approach of Basel-III as prescribed by RBI. The G$U Omo{I_ Ho A§VJ©V E\ AmB©Ama~r (AmYma^yV Am§V[aH loUrH aU na Bank has applied to RBI for migrating to Foundation Internal AmYm[aV X¥pîQH moU) _o§ _mBJŒoQ hmoZo Ho {bE ^maVr` [aµOd© ~¢H H mo AmdoXZ Rating Based approach (FIRB) under Credit Risk. Presently H a MwH m h¡& dV©_mZ _o§ ~¢H G$U Omo{I_ Ho {bE _mZH$sH¥ V X¥pîQH moU AnZm bank is following Standardised approach for computing capital ahm h¡& charge on Credit Risk. 17.2.3 ~¢H Zo JŒwn G$U Zr{V ~ZmB© h¡, Omo n[aMmbZ Ho CZ g^r joÌmo§ H mo 17.2.3 Bank has formulated a Group Credit Policy, which em{_b H aVo hwE Ohm± G$U Omo{I_ em{_b h¡, G$U à~§YZ hoVw Zr{VJV lays down policy guidelines for credit management covering all areas of operations, where credit risk is involved. The policy {Xem-{ZXo©e {ZYm©[aV H aVr h¡& Bg Zr{V go ~¢H Omo{I_ à~§YZ j_VmAmo§ _o§ enables the Bank to enhance its risk management capabilities d¥{Õ H a gH Vm h¡ {Oggo ~¢H AnZo G$U nmoQ©\ mo{b`mo _o§ pñWa VWm ñdñW and thereby improve the performance through steady and g§d¥{Õ Xem© gH Vm h¡ {OgHo n[aUm_ ñdê$n {ZînmXZ g_JŒ ê$n go gwYaoJm& healthy growth in credit portfolio. This policy has set prudential Zr{V Ho AZwgma ~¢H Zo d¡`{ºH CYmaH Vm©Amo§, J¡a-H mnmo©aoQ CYmaH Vm©Amo§ limits to individual borrowers, non-corporate borrowers, entity hoVw {ddoH nyU© gr_mE§, BH mB© ñVar` EŠgnmoµOa _mZX§S, ~‹Sr EŠgnmoµOa level exposure norms, substantial exposure limits, benchmark gr_mE±, _mZH {dÎmr` AZwnmV, CYmaH Vm© _mZH , CÚmoJmo§, g§doXZerb joÌmo§ fi nancial ratios, borrower standards, exposure limits/ceilings hoVw EŠgnmoµOa gr_mE±/CÀMV_ gr_m, aoqQJ loUr Am{X {ZYm©[aV {H E h¢& to industries, sensitive sectors, rating category etc. The Board {ZXoeH _§Sb {Z`{_V ê$n go {ddoH nyU© gr_mAmo§ H$s g_rjm H aVm h¡& ~¢H reviews the prudential limits periodically. The Bank has Zo ~hwñVar` G$U AZw_moXZ H$s ì`dñWm ^r bmJy H$s h¡ {Og_o§ G$U àñVmd implemented a multi-tier credit approval system wherein the g§~§{YV _§Oyaràm{YH m[a`mo§ Ho g_j àñVwV H aZo go nhbo "AZw_moXZ {JŒS' Ûmam loan proposals are cleared by an “Approval Grid” before being _§Oya {H E OmVo h¢& placed to the respective sanctioning authorities. 17.2.4 `5 H amo‹S Am¡a Cggo A{YH Ho CYma ImVmo§ H$s Am°Z-gmBQ G$U 17.2.4 On-site Credit Audit of borrowal accounts with limit boIm narjm bmJy h¡& of `5 core and above is in place. 17.2.5 ~¢H Zo X~mdJŒñV AmpñV`mo§ H$s {ZJamZr Ho {bE ñdV§Ì à^mJ 17.2.5 Bank has created a separate division for monitoring ñWm{nV {H `m h¡& à^mJ Ho Xmo dQr©H b h¢ EH - `1 H amo‹S Am¡a A{YH Ho Stressed assets. The division has two verticals, one for ~‹S>o EŠgnmoOa H$s {ZJamZr hoVw Am¡a Xygam - `1 H amo‹S go H _ EŠgnmoOa H$s monitoring large exposure of `1 crore & above, another for {ZJamZr hoVw & `h à^mJ _mZH loUr Ho VhV ZE pñbnoO H mo amoH Zo Ho {bE monitoring exposure below `1 crore. The division is guiding X~mdJŒñV G$U ImVmo§ H m gyú_ AZwdV©Z gw{Z{üV H aZo Ho {bE emImAmo§ Am¡a and supporting the branches and zonal offi ces for ensuring close Am§M{bH H m`m©b`mo§ H mo _mJ©Xe©Z Am¡a gh`moJ àXmZ H aVm h¡& MyH$ Ho {bE follow up of stressed loan accounts under standard category to g§^m{dV H maUmo§ Ho gmW g§^m{dV EZnrE H$s g_`nyd© nhMmZ Ho {bE {gñQ_ avoid fresh slippages. A system driven advance warning system for early identifi cation of probable NPAs with probable reasons n[aMm{bV EH A{JŒ_ MoVmdZr àUmbr ñWm{nV H$s JB© h¡ Omo _mZH AmpñV`mo§ for slippages is put in place which is an ideal tool for effective H$s {ZJamZr/ZB© MyH$m| H mo amoH Zo Ho {bE EH AmXe© gmYZ h¡& monitoring of standard assets/containing fresh slippages. 17.2.6 ~¢H Zo nmoQ©\ mo{b`mo ñVa na G$U Omo{I_ Ho _yë`m§H Z hoVw, nmoQ©\ mo{b`mo 17.2.6 The Bank has also undertaken Industry Risk H$s JwUdÎmm gwYmaZo Ho {bE aUZr{V`m± AnZmZo VWm Hw N CYmaH Vm©Amo§ `m Assessment and Portfolio Studies in order to assess the credit CÚmoJmo§ H mo EŠgnmoµOa Ho g§Ho§ ÐZ Ho g§^mì` à{VHy b à^md H mo H _ H aZo Ho risk at the portfolio level, adopt strategies to improve the quality {bE CÚmoJ Omo{I_ {ZYm©aU d nmoQ©\ mo{b`mo {ddoMZ Ho H m`© H$s {µOå_oXmar of portfolio and reduce adverse impact of concentration of ^r br h¡& exposures to certain borrowers or industries. 17.2.7 CYma ImVmo§ Ho aoqQJ n[adV©Z na AÜ``Z {H `m OmVm h¡ VWm 17.2.7 Study on rating migration of borrowal accounts is nmoQ©\ mo{b`mo JwUdÎmm H$s gwajm Ho {bE g_w{MV CnMmamË_H H ma©dmB© H$s undertaken and appropriate corrective actions are initiated to OmVr h¡& protect the portfolio quality. 17.2.8 G$U Omo{I_ go g§~pÝYV g^r _m_bmo§ na {dMma G$U Omo{I_ à~§YZ 17.2.8 All the issues related to Credit Risk are deliberated in g{_{V H$s ~¡RH mo§ _o§ {H `m OmVm h¡& the Credit Risk Management Committee meeting.

17.3 ~mµOma Omo{I_ 17.3 Market Risk 17.3.1 ~mOma Omo{I_ ~mOma H$s H$s_Vmo§/n[adVr© Ho CVma-M‹Tmd go 17.3.1 Market Risk is the risk of losses in on-balance sheet Am°Z ~¡bo§g erQ VWm Am°\ ~¡bo§g erQ pñW{V`mo§ _o§ CËnÞ hmoZo dmbr hm{Z`mo§ and off-balance sheet positions arising from movements in H m Omo{I_ h¡& n[adV©Zmo§ H m ~¢H AO©Z Am¡a CgH$s ny§Or na grYm à^md market prices/variables. The changes will have direct impact

60 hmoJm& BZ n[adV©Zmo§ H m ~¢H H$s Mb{Z{Y Am¡a bm^àXVm na ^r à^md hmo on the Bank’s earnings and its capital. These changes can have gH Vm h¡& ramiﬁ cations on Bank’s liquidity and proﬁ tability.

17.3.2 ~¢H Zo Xoer Q—oOar, Xoe Omo{I_ à~§YZ Am¡a H$s_Vr YmVw n[aMmbZ 17.3.2 The Bank has implemented Market Risk Policy for managing the Market Risk in domestic treasury, country _o§ ~mOma Omo{I_ Ho à~§YZ hoVw ~mOma Omo{I_ Zr{V H m`m©pÝdV H$s h¡& Zr{V risk management and precious metal operations. The policy _o§ Mb{Z{Y H m à^mdr _mn, {ZJamZr Am¡a à~§YZ, ã`mO Xa, Xoer Q—oOar emphasizes effective measurement, monitoring and management boZXoZ, {dXoer {d{Z_` VWm B©p¹Qr Ho gmW ~¢H Ho B©p¹Qr Am¡a of liquidity, interest rates, domestic treasury operations, foreign nÊ`_yë` Omo{I_ na Omoa {X`m OmVm h¡& ì`mnma ~hr _o§ ~mµOma Omo{I_ exchange and equity as well as commodity price risk of the Bank. H$s Cn`wº {Z`§ÌU ì`dñWm Ho AZwgma {ZJamZr VWm à~§YZ {H `m OmVm The Market Risk in trading book is monitored and managed as h¡& ~mµOma pñW{V, {Z{Y`Z ñdê$n, Ad{Y, à{Vnj gr_mE± VWm {d{^Þ per appropriate control mechanism in place. Market position, funding patterns, duration, counterparty limits and various g§doXZerb _mZX§Smo§ na {ZJamZr aIr OmVr h¡& àmoÞV Omo{I_ à~§YZ Cnm`, sensitive parameters are closely monitored. Advanced risk O¡go Omo{I_ na _yë`(drEAma), {Zdb EH {Xdgr` Iwbr pñW{V gr_m management tools such as Value at Risk (VaR), Net Overnight (EZAmoAmonrEb) VWm g§emo{YV g_`md{Y gr_m ~mµOma Omo{I_ Ho à~§YZ _o§ Open Position Limits (NOOPL) and modiﬁ ed duration limits à`wº hmoVo h¢& are used in managing Market Risk. 17.3.3 ~¢H ~mOma Omo{I_ Ho {bE ny±OrJV à^ma Ho n[aH bZ Ho {bE _mZH 17.3.3 Bank is following Standardized Duration Approach Ad{Y X¥pîQH moU AnZm ahm h¡ & for computation of capital charge for Market Risk. 17.4 AmpñV Xo`Vm à~§YZ (EEbE_) 17.4 Asset Liability Management (ALM) 17.4.1 AmpñV Xo`Vm à~§YZ H m`© _o§ ~¢H H$s {d{dY AmpñV`mo§ Am¡a 17.4.1 The ALM function involves planning, directing and

Xo`VmAmo§ H m àdmh, ñVa, {_lU, bmJV VWm à{V\ b H$s Am`moOZm H aZm, controlling the ﬂ ow, level, mix, cost and yield of various assets {Z{X©îQ H aZm d {Z`§{ÌV H aZm em{_b h¡& AmpñV Xo`Vm à~§YZ H m àmW{_H and liabilities of the Bank. The primary objective of ALM is not CÔoí` Omo{I_ {_QmZm Zht h¡, ~pëH CgH m à~§YZ Bg àH ma H aZm h¡ {H only to eliminate the risk, but to manage it in such a way that nwZ_y©ë`m§H Z Omo{I_ Ho H maU AO©Z _o§ H _r, AO©Z Omo{I_ Am¡a AmYma the decrease in earnings due to Repricing risk, Yield curve risk Omo{I_ Ý`yZV_ hmo& and Basis risk is minimal. 17.4.2 Omo{I_ à~§YZ Ed§ {Z`§ÌU Ho EH A§J Ho ê$n _o§ ~¢H ã`mO Xa 17.4.2 As a part of Risk Management and control, the Bank g§doXZerbVm (J¡n {díbofU), AmpñV`mo§ Ed§ Xo`VmAmo§ H$s n[an¹Vm Am¡a is using ALM system for studying and analyzing the interest VabVm H m {díbofU H aZo Ho {bE AmpñV Xo`Vm à~§YZ àUmbr H m BñVo_mb rate sensitivity (GAP Analysis), Maturity and Liquidity analysis of Assets and Liabilities. The Bank is measuring the

H a ahm h¡& ~¢H Ûmam VabVm H m _mnZ ñQm°H EÊS âbmo X¥pîQH moU Ho Cn`moJ go liquidity using the stock and fl ow approach. Further, models {H `m OmVm h¡& BgHo Abmdm, ã`mO Xa Omo{I_ à~§YZ Ho {bE Omo{I_ na like Earning at Risk and Duration are used for Interest rate risk AO©Z Ed§ Ad{Y O¡go _m°Sb H m BñVo_mb {H `m OmVm h¡& {V_mhr AmYma na management. Stress testing of liquidity risk and interest rate risk VabVm Omo{I_ VWm ã`mO Xa Omo{I_ Ho X~md H m narjU {H `m OmVm h¡& ~¢H is conducted on quarterly basis. The Bank applies Value-at-Risk ì`mnma ~hr _o§ Omo{I_ _mnZo Ho {bE Omo{I_ na _yë`(drEAma) bmJy H aVm (VaR) to measure the risk in the Trading Book. Asset Liability Management Committee (ALCO) monitors the Liquidity h¡& AmpñV Xo`Vm à~§YZ g{_{V (EEbgrAmo) VabVm Mb{Z{Y (EbgrAma) Coverage Ratio (LCR) which promotes short term resilience of AZwnmV H$s {ZJamZr H aVr h¡, Omo ~¢H H$s g§^m{dV Mb{Z{Y H {RZmB©`mo§ Ho Banks to potential liquidity disruptions by ensuring that they à{V bKw Ad{Y à{VamoY j_Vm H mo `h gw{Z{üV H aVo hwE ~‹Tmdm XoVr h¡ {H have suffi cient High Quality Liquid Assets (HQLA) to survive CZHo nmg 30 {XZ VH MbZodmbr ^mar VZmd H$s pñW{V H m gm_Zm H aZo an acute stress scenario over a time horizon of 30 days. The Bank Ho {bE n`m©ßV _mÌm _o§ CÀM JwUdÎmm Mb{Z{Y AmpñV`m§ (EMŠ`yEbE) h¡& has also implemented a scientifi cally evolved Internal Transfer BgHo gmW hr ~¢H Zo ~¢H H$s {d{dY emImAmo§ Ûmam àXmZ H$s JB© {Z{Y Am¡a Pricing Mechanism by assigning values on basis of current market rates to funds provided and funds used by various à`wº H$s JB© {Z{Y Ho {bE Mmby ~mOma Xa Ho AmYma na _yë` {ZYm©[aV H aVo Branches/units of the Bank. The Market Risk Management hwE EH d¡km{ZH X¥pîQ go {dH {gV Am§V[aH _yë` A§VaU ì`dñWm H m`m©pÝdV Committee/Asset Liability Management Committee meets at H$s h¡& ~mOma Omo{I_ à~§YZ g{_{V/AmpñV Xo`Vm à~§YZ g{_{V ã`mO regular intervals to review the interest rate scenario, product Xa n[aX¥í`, O_mam{e`mo§ Ed§ A{JŒ_o§ hoVw CËnmX _yë`-{ZYm©aU, d¥{Õerb pricing for both deposits and advances, desired maturity profi le

ANNUAL REPORT 2018-19 61 AmpñV`mo§ Ed§ Xo`VmAmo§ H m dm±{NV n[an¹Vm àmo\ mBb, ~¢H {Z{Y`mo§ hoVw _m±J, of the incremental assets and liabilities, demand for Bank funds, ~¢H H m ZH X àdmh, bm^àXVm Am`moOZm Ed§ g_JŒ VwbZ nÌ à~§YZ H$s cash fl ows of the Bank, profi t planning and overall Balance Sheet Management. g_rjm hoVw {Z`{_V A§Vamb _o§ ~¡RH H aVr h¡& 17.4.3 Bucketing of outfl ows and infl ows of deposits, 17.4.3 O_m, A{JŒ_ Ed§ {Zdoe Ho ~{hà©dmh Am¡a A§V:àdmh H mo dJr©H¥ V advances and investments: The Bank is bucketing various H aZm: ~¢H g§aMZmJV VabVm {ddaUmo§ Ho {d{^Þ dJmoª _o§ {d{^Þ AmpñV`mo§ assets and liabilities in various buckets of Structural Liquidity Am¡a Xo`VmAmo§ H mo aIVm h¡& g_`-g_` na AmpñV Xo`Vm à~§YZ na ^m[a~¢ Statements. The residual maturity breakdown of deposits and various nature of advances, investments are bucketed in terms of

Ho {Xem{ZXoemo§ Ho AmbmoH _o§ O_mAmo§ H mo I§SrH aU H a CgH m n[an¹Vm _yë` RBI guidelines on Asset Liability Management issued from time Am¡a A{JŒ_mo§ H$s {d{^Þ àH¥ {V, {Zdoe H mo dJmoª _o§ aIm OmVm h¡ AWm©V IarXo to time i.e. Bills Purchased and Discounted are bucketed as per JE Am¡a ~ÅmH¥ V {H E JE {~bmo§ H mo CZH$s n[an¹Vm Ho AmYma na dJr©H¥ V their respective maturities, Cash Credit/Overdraft are bucketed {H `m OmVm h¡, H¡ e HŒo {SQ/AmodaS—mâQ H mo CZHo boZXoZ H$s nÕ{V AWm©V 1, as per the behavioural pattern i.e. the volatile portions in Day 2-7 {XZmo§ Am¡a 8-14 {XZmo§ VWm 1-3 dfmoª Ho dJ© _o§ CgHo H moa ^mJ H mo aIm 1, 2-7 days and 8-14 days and core portion in over 1-3 years OmVm h¡, gmd{Y G$U H mo CZHo n[an¹Vm Ho AmYma na {d{^Þ dJ©, EZnrE bucket, term Loans under respective maturity buckets, NPA: Substandard over 3-5 years, Doubtful and Loss over 5 years 3-5 df© go A{YH Ad_mZH , g§{X½Y Am¡a j{VJŒñV H mo 5 df© go A{YH bucket. Investments are bucketed as per respective maturity

Ho dJ© _o§ ^m[a~¢ Ûmam Omar EEbE_ {Xem {ZXoemo§ Ho AmbmoH _o§ VËg§~§{YV buckets/according to defeasance periods and in terms of ALM n[an¹Vm dJ©/{d\ brH aU Ad{Y Ho AZwgma dJr©H¥ V {H `m OmVm h¡& guidelines issued by RBI. 17.4.4 {XZm§H 31.03.2019 H mo AmpñV`mo§ Ho Ad{eîQ n[an¹Vm 17.4.4 Residual Maturity Breakdown of assets as on {dÀNoX 31.03.2019 ~¢H _o§ eof Ed§ Ama~rAmB© _o§ _m±J _wÐm VWm Ëd[aV

ZH X Ed§ eof gyMZm na ñWm`r n[an¹Vm ~Ho Q²g Cash and Balances with {Zdoe A{JŒ_ Fixed AÝ` AmpñV gH b `moJ Maturity Buckets Investments Advances AmpñV Other Assets Grand Total Balance Banks and Assets with RBI Money at Call and Short Notice AJbo {XZ Next Day 24,878.8 724.8 104,258.0 25,231.5 - 19,487.9 174,581.0 2 - 7 {XZ Days 3,162.8 25,809.1 19,525.8 39,111.4 - 39,194.4 126,803.4 8 -14 {XZ Days 2,953.5 0.0 10,162.6 29,470.7 - 28,763.2 71,350.1 15- 31 {XZ Days 1,877.1 816.9 7,267.0 100,307.0 - 30,147.9 140,415.8 31 {XZ Days – 2 _mh Months 2,278.1 1,728.9 17,921.7 40,389.7 - 31,662.6 93,981.0 >2 _mh Months-3 _mh Months 1,934.7 0.0 9,791.4 47,431.7 - 9,206.0 68,363.8 >3 _mh Months-6 _mh Months 5,585.8 0.0 29,565.5 40,087.0 - 7,903.5 83,141.8 >6 _mh Months-1 df© Yr 8,207.9 0.0 43,091.8 90,492.2 - 35,160.0 176,951.9 >1 df© Yr-3 df© Yrs 13,413.9 0.0 64,376.3 557,845.5 - 61,800.8 697,436.4 >3 df© Yrs- 5 df© Yrs 3,180.4 0.0 22,590.4 127,964.3 - 18,924.8 172,659.9 >5 df© Yrs 29,137.8 0.0 271,241.5 114,181.1 14,218.5 9,940.0 438,718.9 Hw b Total 96,610.7 29,079.7 599,792.0 1,212,512.0 14,218.5 292,191.0 2,244,403.9 {H E JE àmdYmZ Ed§ Xmdo Provision and claims held 12,359.7 137,970.5 - - 150,330.1 gH b {Zdoe/A{JŒ_ Gross Investments/ Advances 612,151.7 1,350,482.5 - - 2,394,734.1

62 17.5 ~o§M_mH© Xamo§ O¡go AmYma Xa Am¡a {Z{Y H$s gr_m§V bmJV na 17.5 Implementation of Benchmark rates like Base rate and AmYm[aV Xa H mo bmJy H aZm Marginal Cost of fund based lending Rates (MCLR) 17.5.1 Bank is computing the Marginal cost of fund based 17.5.1 ~¢H {Z{Y H$s gr_m§V bmJV na AmYm[aV Xa, Omo {H Ad{Y AmYm[aV lending rates, which are tenor based, with effect from April 1, hmoVr h¢, H$s g§JUZm 1 Aà¡b 2016 go H aVm h¡ & BZ Xamo§ H$s g_rjm àË`oH 2016. These rates are reviewed every month. _mh H$s OmVr h¡& 17.5.2 Bank is reviewing the base rate on quarterly basis.

17.5.2 ~¢H {V_mhr AmYma na Xa H$s g_rjm H a ahr h¡ & 17.6 Operational Risk 17.6 n[aMmbZJV Omo{I_ 17.6.1 Operational Risk is embedded in all business operations and the management of operational risk is an important part 17.6.1 n[aMmbZJV Omo{I_ g^r H mamo~ma n[aMmbZmo§ _o§ A§V{Z©{hV h¡ VWm of the sound Integrated Risk Management Structure. Due to n[aMmbZJV Omo{I_ H m à~§YZ gwX¥T EH$sH¥ V Omo{I_ à~§YZ àUmbr H m size, complexity of business and risk philosophy of the Bank, _hËdnyU© A§J h¡& H mamo~ma H m AmH ma VWm O{QbVm VWm ~¢H Ho Omo{I_ emphasis is being given to impart knowledge at the ﬁ eld level Xe©Z Ho n[aàoú` _o§ {Za§Va à{ejU à{HŒ `m Ho _mÜ`_ go joÌ ñVa Ho H m{_©H mo§ through continuous training process. H mo kmZ XoZo na Omoa {X`m OmVm h¡& 17.6.2 The Bank has implemented Operational Risk Management Policy for managing the operational risk in an 17.6.2 ~¢H Zo n[aMmbZJV Omo{I_ Ho H maJa ê$n go à~§YZ Ho {bE effective manner. The Bank has also implemented framework n[aMmbZJV Omo{I_ à~§YZ Zr{V H m`m©pÝdV H$s h¡ & ~¢H Zo {~OZog bmBZ documents for Business Line Mapping, Loss Data Capture, _¡qnJ, bm°g SmQm H¡ ßMa, Omo{I_ {Z`§ÌU ñd-AmH bZ (AmagrEgE), Risk Control Self-Assessment (RCSA) and Key Risk Indicator _w»` Omo{I_ g§Ho VH (Ho AmaAmB©)& dV©_mZ _o§ ~¢H _yb g§Ho VH X¥pîQH moU (KRI). At present Bank is calculating capital charge for operational risk under Basic Indicator Approach. The Bank

Ho VhV n[aMmbZ Omo{I_ Ho {bE ny§Or à^ma n[aH {bV H a ahm h¡& ~¢H Zo has received approval from RBI to migrate to The Standardized g_mZmÝVa J{V_mZ AmYma na n[aMmbZJV Omo{I_ ny§Or à^ma n[aH bZ hoVw Approach (TSA) for calculating operational risk capital charge _mZH$sH¥ V X¥pîQH moU (QrEgE) _o§ ñWmZm§V[aV hmoZo Ho {bE ^m[a~¢ go AZw_moXZ on parallel run basis. àmßV {H `m h¡| 17.6.3 The Bank has rolled out Incident Reporting module 17.6.3 ~¢H Zo B§Q—mZoQ nmoQ©b _o§ B§{gSo§Q [anmoqQ©J _m°S²`yb H mo g_m{dîQ {H `m in intranet portal where any operational risk incident can be reported by the branches/offi ces as and when the incident is h¡ {Og_o§ H moB© ^r emIm/H m`m©b` {H gr ^r àH ma H$s n[aMmbZJV Omo{I_ detected. g§~§Yr KQZm Ho ~mao _o§ nVm bJVo hr CgH$s [anmoQ© H a gH Vo h¢& 17.6.4 The Bank has also rolled out Risk & Control Self- 17.6.4 ~¢H Zo B§Q—mZoQ nmoQ©b _o§ [añH E§S H§ Q—mob goë\ Agoñ_o§Q (AmagrEgE) Assessment (RCSA) module in intranet portal where employees _m°S²`yb H mo g_m{dîQ {H `m h¡ {Og_o§ H _©Mmar ~¢H H$s àUmbr Ed§ {HŒ `m{d{Y can suggest controls to improve systems and procedures in the _o§ gwYma hoVw gwÂmmd Xo gH Vm h¡& Bank. 17.6.5 All the issues related to operational Risk are deliberated 17 6 5 . . n[aMmbZJV Omo{I_ g§~§Yr g^r _wÔmo§ H$s MMm© n[aMmbZJV Omo{I_ in the Operational Risk Management Committee meeting. à~§YZ g{_{V _o§ H$s OmVr h¡& 17.7 Information/Cyber Security 17.7 gyMZm/gmB~a gwajm Corporation Bank is committed to provide safe and secure ~¢H AnZo JŒmhH mo§ H mo gwa{jV Am¡a {dœñV {S{OQb ~¢qH J AZw^d àXmZ H aZo digital banking experience to its customers. In order to achieve hoVw à{V~Õ h¡& ~¢H H$s g_ñV gyMZm AmpñV`mo§ H$s JmonZr`Vm, AI§SVm Am¡a Confi dentiality, Integrity and Availability of all Information Assets of the Bank and to ensure the regulatory, operational CnbãYVm H mo àmßV H aZo hoVw Am¡a {d{Z`m_H , n[aMmbZmË_H VWm g§{dXmJV and contractual requirements are fulfi lled, bank has put in Amdí`H VmAmo§ H mo nyam H aZo H mo gw{Z{üV H aZo hoVw ~¢H Zo geº àUmbr Am¡a place robust systems and procedure which is well defi ned in à{HŒ `m H m H m`m©Ýd`Z {H `m h¡ Omo ~¢H H$s gyMZm gwajm Zr{V Ed§ gyMZm gwajm bank’s Information Security policy and Information Security {Xem {ZXoemo§ _o§ gwn[a^m{fV h¡& Guidelines. In line with RBI notifi cation on Cyber Security Frame Work in ~¢H mo§ _o§ H m`©aV gmB~a gwajm na ^m[a~¢ Ho A{YgyMZm {XZm§H 02.06.2016 Banks dated 02.06.2016, our bank is one of the front runner in Ho AZwê$n h_mam ~¢H gmB~a gwajm Zr{V V¡`ma H aZo _o§ AJŒUr ahm h¡ {Og_o§ formulating Cyber Security Policy, which outlines the directives gmB~a gwajm Ho AZwajU hoVw {Xem{ZXoemo§ H$s ê$naoIm h¡ Am¡a ~¢H H$s O{Qb designed to maintain cyber security, and put in place Cyber H mamo~ma {HŒ `mAmo§ VWm à{HŒ `m H mo à^m{dV H aZo dmbo Xw^m©dZmnyU© gmB~a go Crisis Management plan, a co-ordinated approach towards

ANNUAL REPORT 2018-19 63 gå~pÝYV XwK©QZm H$s Vwa§V nhMmZ, gyMZm {d{Z_`, à{V{HŒ `m Am¡a gwYma - preparation for rapid identiﬁ cation, information exchange, response and remediation - to mitigate and recover from

Cgo H _ H aZo VWm Cggo C^aZo Ho {bE V¡`mar Ho ê$n _o§ EH g_pÝdV X¥pîQH moU malicious cyber related incidents impacting critical business Ho ê$n _o§ gmB~a AmnXm à~ÝYZ `moOZm V¡`ma H$s JB© h¡ & functions and processes of the bank. dV©_mZ gmB~a IVao Ho n[aX¥í` H mo Ü`mZ _o§ aIVo hwE ~¢H Zo {dÚ_mZ gwajm Taking into account the present cyber threat landscape, bank n[aMmbZ Ho ÝÐ (EgAmogr) H$s j_VmAmo§ H m CÞV gmB~a-EgAmogr _o§ has upgraded the capabilities of already existing Security Operation Centre (SOC) to an advanced Cyber-SOC through CÞ`Z {H `m h¡ {OgHo Ûmam ~¢H H$s _hËdnyU© AmpñV`mo§ H$s {ZJamZr, CgH m which bank’s critical IT assets are monitored, assessed, and _yë`m§H Z {H `m Om gHo Am¡a 24*7 AmYma na CgH$s ajm H$s Om gHo & defended by on 24*7 basis. gyMZm/gmB~a gwajm _mZH Ho joÌ _o§ g_` - g_` na ^maVr` [a‹Od© ~¢H While the bank is complying with the directives issued by Reserve bank of India, from time to time in the area of

Ûmam Omar {Xem{ZXoemo§ H m AZwnmbZ H aVo hwE ~¢H Zo g§JRZmo§ `Wm B§{S`Z Information/Cyber security standards, bank also implements the H åß`yQa aoñnmo§g Qr_ (grB©AmaQr-BZ), ZoeZb {HŒ {QH b B§\ mo_o©eZ B§\Œ mñQy>ŠMa best practices suggested by organizations like, Indian Computer àmoQoŠeZ go§Qa (EZgrAmB©AmB©nrgr) Am¡a B§ñQrQ²>`yQ \ moa Sodbn_o§Q E§S argM© Emergency Response Team (CERT-In), National Critical QoŠZmobmoOr (AmB©SrAma~rQr) Ûmam gwÂmmE JE loîR Cnm`mo§ H m ^r H m`m©Ýd`Z Information Infrastructure Protection Centre (NCIIPC), and Institute for Development and Research in Banking Technology {H `m h¡& (IDRBT) The Bank has also complied with the mandatory guidelines issued by SWIFT. ~¢H grB©AmaQr BZ, ^m[a~¢ Am¡a AmB©Sr~rAmaQr Ûmam Am`mo{OV {d{^Þ ~¡RH mo§ Ed§ _§Mmo§ _o§ g{HŒ `ê$n go ^mJ boVm h¡ Vm{H ZdrZV_ gwajm VH ZrH Ho ~mao Bank is actively participating in various meetings and fora organised by CERT In, RBI and IDRBT to keep updated in

_o§ AÚVZ OmZH mar àmßV hmoVr aho Am¡a ~¢H H$s gwajm ì`dñWm H m AZdaV latest security technologies and to continuously upgrade the CÞ`Z {H `m Om gHo & security posture of the bank. ~¢H gmB~a ~r_m H da àmßV H aZo H$s à{HŒ `m _o§ h¡& àmW{_H MaU _o§ ~¢H Zo Bank is in the process of obtaining Cyber Insurance Cover. As ~r_m ~ŒmoH a H$s {Z`w{º H$s Ed§ ~¢H Ho {bE gmB~a Omo{I_ ~r_m nm°{bgr àmßV an initial step, the Bank has appointed an Insurance Broker and it is in the ﬁ nal stage to obtain the Cyber Risk Insurance Policy H aZo _o§ A§{V_ MaU _o§ h¡& for the Bank. 18. _mZd g§gmYZ à~§YZ 18. Manpower Planning and Recruitment The main objective of Human Resources Management is to

{H gr ^r g§ñWm _o§ _mZd g§gmYZ à~§YZ H m à_wI CÔoí` H _©Mm[a`mo§ H m CÀM ensure high performance of employees for achievement of H m`© {ZînmXZ gw{Z{üV H aZm h¡ {Oggo CZH$s ì`{ºJV àJ{V Ho gmW-gmW organizational goals along with their personal growth. The g§ñWm Ho bú`mo§ H$s àmpßV H$s Om gHo & ~¢H H$s àJ{V BgHo _mZd g§gmYZmo§ growth of the Bank depends on the effi ciency and effectiveness Ho H m¡eb Am¡a à^mderbVm na {Z^©a H aVr h¡ &~¢H H m `h à`mg ahm h¡ {H of its human resources. It has been the endeavor of the Bank that optimum work force is available to all fi eld and functional g^r joÌmo§ Am¡a {HŒ `mË_H BH mB©`mo§ _o§ ha g_` g_w{MV _mZd-e{º CnbãY outlets of the Bank at all times. aho & 18.1 The Bank has been reviewing the requirement of staff 18.1 ~¢H {d{^Þ g§dJmoª _o§ ñQm\ H$s Amdí`H Vm H$s g_rjm àËòH df© in various cadres every year and an analysis of the vacancies in various cadres is being made having regard to growth of business,

H aVm h¡ Am¡a H mamo~ma d¥{Õ , ^{dî` _o§ emIm {dñVma/`w{ºH aU Am¡a future branch expansion/rationalisation, attrition on account BñVr\ m, A{Yd{f©Vm/drAmaEg Ûmam godm{Zd¥{Îm Ho H maU {d{^Þ g§dJmoª _o§ of resignations, retirements on superannuation/VRS etc. hmoZo dmbr [a{º`mo§ H m {díbofU H aVm h¡ & 31 _mM©, 2019 H mo H _©Mm[a`mo§ H$s At the end of 31.03.2019, total staff strength of the Bank stood Hw b g§»`m 18935 ahr (31.03.2018 H mo 19419 Wr) at 18935 (19419 as on 31.03.2018). 18.2 The guidelines for reservation in employment for 18.2 {d{eîQ lo{U`mo§ hoVw amoOJma Ho {bE ~¢H AmajU g§~§Yr gaH mar Zr{V speciﬁ ed categories are strictly followed by the Bank as per Ho AZwgma AmajU g§~§Yr {Xem{ZXo©emo§ H m g»V AZwnmbZ H aVm h¡ Am¡a Government policy on reservations and the indents are placed VXZwgma ~¢qH J H m{_©H M`Z g§ñWmZ (AmB©~rnrEg) H mo _m§J àñVwV H aVm h¡& to Institute of Banking Personnel Selection (IBPS), Mumbai accordingly. The overall representation of Scheduled Casts/ 31 _mM©, 2019 H mo Hw b H _©Mm[a`mo§ H$s g§»`m _o§ AZwgy{MV Om{V/AZwgy{MV Scheduled Tribe employees in the total staff strength was 28.9% OZOm{V H m à{V{Z{YËd 28.9% (5475) h¡& ~¢H _o§ AÝ` Ama{jV àdJmo© (5475) as on 31.03.2019. The Bank has also a fair representation H m ^r `Wmo{MV à{V{Z{YËd h¡& `Wm 31 _mM©, 2019 H mo 25.9% (4907) of other reserved categories. As on 31.03.2019, overall 25.9%

64 ñQm\ AÝ` {nN‹So dJ© Ho H _©Mmar, 2.11% (400) emar[aH ê$n go (4907) belong to Other Backward Communities, 2.11% (400) {dH bm§J Am¡a 6.83% (1295) ^yVnyd© g¡{ZH ~¢H H$s ñQm\ gyMr belong to differently abled and 6.83% (1295) belong to Ex- Servicemen category. _o§ h¢& 19. Human Resources Development and Training 19. _mZd g§gmYZ {dH mg Ed§ à{ejU 19.1 Training and development of all Staff Members is a key 19.1 g^r H _©Mm[a`mo§ H m à{ejU Am¡a {dH mg ~¢H Ho {bE Ü`mZ XoZo hoVw focus area for the Bank. Training is a major facilitator for EH à_wI joÌ h¡ & ~¢H Ho _mZd g§gmYZmo§ hoVw dm§N Zr` bú` àmßV H aZo hoVw the Human Resources of the Bank in achieving the desired ghm`Vm H aZo _o§ à{ejU à_wI H maH h¡ & à{ejU ì`{º`mo§ H mo _w»` `mo½`VmE± business goals of the Bank. Trainings focus on developing key competencies, which are required by individuals to perform àXmZ H aZo na {deof Ü`mZ XoVm h¡ {Oggo dh AnZm H m`© H m {ZînmXZ à^mdr their functions effectively. With the banking industry changing ê$n go H a gHo§ & ~hwV VoOr go ~Xb aho ~¢qH J CÚmoJ _o§, {deofV: Eogr dynamically, the role and responsibility of the Bank increases n[apñW{V _o§ O~ d[aîR Am¡a AZw^dr ~¢H g© godm{Zd¥Îm hmo aho h¢ Am¡a ZE C_Œ to prepare the work force in tackling the challenged, especially Ho `wdm noeoda {Oå_odmar H mo boZo Ho {bE AmJo Am aho h¢, MwZm¡{V`mo§ H m gm_Zm in a situation when the senior experienced Bankers are at the verge of retirement and the new-age young professionals are H aZo Ho {bE H m`© Xb H mo V¡`ma H aZo hoVw ~¢H H$s ^y{_H m Am¡a Xm{`Ëd ~T getting ready to accept the responsibility. The Bank not only J`m h¡& ~¢H Z Ho db ZE gXñ`mo§ H m CÚmoJ Ho H$m`©H bmn Ho ~mao _o§ àma§{^H has to welcome the new recruits by giving them the basic kmZ XoH a ñdmJV H aVm h¡ A{nVw CÝho§ {Z`{_V Vm¡a na à{e{jV ^r H aVm h¡ knowledge about the functioning of industry but also to train {Oggo OmZo dmbo d[aîR A{YH m[a`mo§ H$s bå~r MwZm¡VrnyU© godm [aH mS© Ûmam them regularly to compensate the difference in experience that àmßV AZw^d H$s ânmB© H$s Om gHo & the outgoing senior staff members had gained with their long & challenging service records. 19.2 {dÎm df© 2018-19 Ho Xm¡amZ ~¢H Zo ~¢H Ho _mZd g§gmYZmo§ Ho CZH$s 19.2 During the Financial Year 2018-19, the Bank concentrated dV©_mZ ^y{_H m Am¡a ~¢H H$s Amdí`H VmAmo§ na AmYm[aV H m¡eb {dH mg na on improving the skills of the Human Resources of the Ü`mZ {X`m h¡ & VXZwgma Hw b 13199 ñQm\ gXñ`mo§ H mo 35212 H m`© {Xdgmo§ Bank based upon their present role and Bank’s requirement. _o§ {d{^Þ àH ma H m à{ejU {X`m J`m& Accordingly, a total of 13199 Staff Members were imparted different types of trainings involving 35212 Man-days. 19.3 df© 2018-19 Ho Xm¡amZ, {nNbo df© 2017-18 Ho Xm¡amZ Am`mo{OV 19.3 During 2018-19, 454 in-house & 54 In-Company 796 Am§V[aH VWm 38 H m`©HŒ _mo§ H$s VwbZm _o§ 454 Am§V[aH VWm 54 Programmes were organised as against 796 in-house and 38 In- H m`©HŒ _ Am`mo{OV {H E JE& BZ 508 H m`©HŒ _mo§ _o§ 12611 ñQm\ gXñ`mo§ H$s company programmes held during the previous year 2017-18. These 508 programmes were attended by 12611 staff members. gh^m{JVm ahr& BZ H m`©HŒ _mo§ H$s Ad{Y 1 go 13 {Xdg Ho ~rM Am¡a Hw b The duration of these programmes ranged from 1 to 13 Days 33535 _mZd {Xdg Wr & involving 33535 Man-Days. 19.4 {deofk H m¡eb Ho {dH mg hoVw 619 ñQm\ gXñ`mo§ H mo {d{^Þ à{VpîRV 19.4 In order to improve the specialised skills, 619 Staff à{ejU g§ñWmAmo§ O¡go EZAmB©~rE_, grE~r (Ama~rAmB©), grEE\ AmaEEb, Members are nominated and attended to External Training Programmes of on various topics at various reputed training grAmaAmB©EgAmB©Eb,AmB©SrAma~rQr Am{X _o§ {d{^Þ {df`mo§ na df© institutes like NIBM, CAB (RBI), CAFRAL, CRISIL, IDRBT 2018-19 _o§ 1785 H m`© {Xdgmo§ _o§ ~mø à{ejU H m`©HŒ _mo§ hoVw à{V{Z`wº etc. on various topics during the Financial Year 2018-19 {H `m J`m & involving 1785 Man-Days. 19.5 ~¢H Ûmam à{e{jV Hw b 12611 ñQm\ gXñ`mo§ _o§ 4008 ñQm\ gXñ` 19.5 Out of the total 12611 Staff Members trained by the Bank, 4008 Staff Members belonged to SC/ST community and 080 A.Om./A.O.Om. g_wXm` Ho h¢ Am¡a 3 ñQm\ gXñ` A.{n.d g_wXm` 3080 Staff Members belong to OBC community. Ho h¢ & 20. Promotions: 20. nXmoÞ{V`m±: Promotion is a big milestone in the career of every employee. To nXmoÞ{V àËòH H _©Mmar Ho H¡ [aà _o§ EH ~‹Sm _rb H m nËWa h¡& àJ{V Ho take care of the aspirations for growth of employees, Bank has been providing optimum opportunities for career progression {bE H _©Mm[a`mo§ H$s AmemAmo§ H m Ü`mZ aIVo hwE ~¢H Zo CÀM Xm{`Ëd {Z^mZo to the employees to shoulder higher responsibilities. Bank has hoVw H _©Mm[a`mo§ H mo g_w{MV Adga VWm H¡ [aà àJ{V àXmZ H$s h¡& & ~¢H Zo promoted 1263 employees in Financial Year 2018-19, fi lling df© 2018-19 Ho Xm¡amZ 1263 H _©Mm[a`mo§ H mo nXmoÞV {H `m, {Og_o§ 9 _hm promotional vacancies of 9 General Managers, 22 Deputy à~§YH , 22 Cn _hm à~§YH , 48 ghm`H _hm à~§YH , 144 _w»` à~§YH , General Managers, 48 Assistant General Managers, 144 Chief

ANNUAL REPORT 2018-19 65 272 d[aîR à~§YH , 468 à~§YH , 300 ghm`H à~§YH Am¡a 68 {b{nH Managers, 272 Senior Managers, 468 Managers, 300 Assistant em{_b h¢ & Managers and 68 Clerks. 21. {ZarjU Ed§ boIm narjm 21. Inspection & Audit 21.01 As per the guidelines of the Government of India and 21.01 gaH ma Am¡a ^maVr` [aµOd© ~¢H Ûmam Omar {Xem{ZXo©emo§ Ho AZwgma, RBI, the Bank has adopted the policy of Risk Based Internal ~¢H Zo Omo{I_ AmYm[aV Am§V[aH boIm narjm (Ama~rAmB©E) H$s Zr{V Audit (RBIA). This audit lays focus on proper risk identifi cation AnZmB© h¡& `h boIm narjm C{MV Omo{I_ {ZYm©aU Am¡a AmH bZ, H maJa and assessment, effective risk containment and management Omo{I_ {Z`§ÌU Am¡a à~§YZ Cnm`, {Z`§ÌU àUmbr Ed§ à{HŒ `m VWm g§gmYZmo§ measures, adequacy of control systems and procedures, as well Ho BîQV_ Cn`moJ na Ü`mZ Ho§ {ÐV H aVr h¡& BgH m bú` H mnmo©aoQ A{êmgZ as optimum use of resources. It aims at giving an assurance CÔoí`mo§ H$s àmpßV _o§ ghm`H hmoZo Ho gmW-gmW {d{Z`m_H VWm àUmbrJV to the Management on the level of regulatory and systemic AZwnmbZ ñVa Ho ~mao _o§ à~§YZ dJ© H mo AmœmgZ XoZm h¡& compliance, besides assisting in accomplishment of corporate governance objectives. 21.02 emImAmo§ H$s Am§V[aH boIm-narjm Am¡a n`m©ßV d H maJa ê$n go 21.02 In order to have focused attention on internal audit of AZwdV©Z na Ü`mZ Ho§ {ÐV H aZo Ho {bE Xoe â _o§ _hËdnyU© Ho §Ðmo§ _o§ _§Sb boIm branches and follow up functions adequately and effi ciently, the narjm H m`m©b` pñWV h¢ Omo boIm narjm Am`mo{OV H aVo h¢ Am¡a B©Eb~r Ho CAOs, located at important centers across the country, conduct A{V[aº g^r emImAmo§ H$s boIm narjm [anmoQ© ~§X H aVo h¢ & boIm narjm audit and close the audit reports of all branches, other than Zr{V Ho AZwgma à.H m.-AmB©ESr _o§ B©Eb~r [anmoQ© H mo ~§X H aVo h¢ & boIm ELB’s. In terms of the Audit Policy, closure of ELB reports is at narjm [anmoQmoª Ho _hËdnyU© {ZîH f©/{Qßn{U`mo§ Am¡a [anmoQ© H mo ~§X H aZo na IAD-HO. Monthly Circle Audit Committee meetings are held MMm© H aZo hoVw grEAmo Ho gmW _§Sb boIm narjm g{_{V H$s _m{gH ~¡RH with the CAO’s to discuss the critical fi ndings/observations of the audit reports and lodgment of reports. Am`mo{OV H$s OmVr h¡& 21.03 All the Branches of the Bank are subjected to internal 21.03 ~¢H H$s g^r emImAmo§ H m Am§V[aH {ZarjU {H `m OmVm h¡ Vm{H inspection so as to contain risk, have effective control mechanism Omo{I_ na A§Hw e hmo, H maJa {Z`§ÌU V§Ì hmo Am¡a n[aMmbZmo§ _o§ XjVm gwYao& and improve effi ciency of operations. Risk based internal branch àËòH emIm H$s Omo{I_ ~moY AZw^d Ho AmYma na Omo{I_ AmYm[aV inspection is conducted once in 12 to 18 months depending Am§V[aH emIm {ZarjU 12 go 18 _hrZmo§ _o§ EH ~ma {H `m OmVm h¡& emIm upon the risk perception of each Branch. The periodicity of {ZarjU H$s Amd{YH Vm emIm loUr Ho gmW-gmW emIm Ho {nNbo {ZarjU branch inspection is decided based on category of the Branch as _o§ Am~§{QV Omo{I_ loUrH aU Ho AmYma na V` H$s OmVr h¡& ZB© Imobr JB© well as the risk rating allotted, in the previous inspection of the branch. Newly opened branches are subjected to fi rst inspection emImAmo§ H m nhbm {ZarjU n[aMmbZmo§ H mo ewê H aZo Ho 6-9 _hrZmo§ Ho ^rVa within 6-9 months from the date of starting the operations. 8 19 014 {H `m OmVm h¡& {dÎm df© 201 - Ho Xm¡amZ 2 emImAmo§ H$s Omo{I_ 2014 Branches were subjected to Risk Based Internal Audit AmYm[aV Am§V[aH boIm narjm H$s JB©& during the FY 2018-19.

21.04 87 emImAmo§ H$s Omo{I_ AmYm[aV ñZ¡n boIm narjm Am`mo{OV H$s 21.04 Risk Based Snap Audits (RBSA) were conducted for 87 J`r & Branches. 21.05 à~§YZ boImnarjm… àYmZ H m`m©b`, _§Sb H m`m©b` Am¡a Am§M{bH 21.05 Management Audit: All the functional Divisions at Head H m`m©b`mo§ Ho g^r H m`m©Ë_H à^mJmo§ H$s à~§YZ boIm narjm df© _o§ EH ~ma Offi ce, Circle Offi ces, Zonal Offi ces & Circle Audit Offi ces are H$s OmVr h¡& AÝ` H m`m©b`mo§ O¡go ny§Or ~mOma emIm, {MH _Jbya _o§ H m°~goQr, conducted once in a year. Other Offi ces such as Capital Market EgQrgr, AJŒUr ~¢H H m`m©b`, grE_Eg H moa Ho§ Ð, EQrE_ Ho§ Ð, HŒo {SQ H mS© Branch, COBSETI at Chikmagalur, STCs, Lead Bank Offi ces, à^mJ, å`y{O`_ Am{X H m ^r df© _o§ EH ~ma {Z`{_V {ZarjU {H `m OmVm h¡& CMS Core centers, ATM centers, Credit Card Division, etc. BgHo Abmdm Q—oOar emIm, _w§~B©, \ m°aoŠg Sr~r, H¡ ßg emImE§, H ao§gr MoñQ, are subjected to Management Audit during the year. Further, godm emImE§, EAmaE_~r, IwXam h~, EbAmB©gr h~ Am{X H m ^r dm{f©H Treasury Branch, Mumbai, Forex DBs, CAPS Branches, Currency Chests, Service Branches, ARMBs, Retail Hubs, LIC {ZarjU {H `m OmVm h¡& Hubs etc. are subjected to annual inspection. 21.06 ^maVr` [aµOd© ~¢H Ho {Xem{ZXo©emo§ Ho AZwgma Omo{I_ Ad~moY 21.06 In terms of RBI guidelines, Concurrent Audit is carried Am¡a H mamo~ma H$s _mÌm Ho AmYma na A{^{ZYm©[aV emImAmo§/H m`m©b`mo§ out at the Branches/Offi ces identifi ed based on risk perception _o§ {Z`{_V g§Jm_r boIm narjm H$s OmVr h¡& 2018-19 Ho Xm¡amZ 50% and volume of business handled. 523 branches covering 70%

66 O_mam{e`m§ Am¡a 50% A{JŒ_ Ho Ý`yZV_ H daoO Ho {bE ^m[a~¢ Ho {ZYm©aU of total business of the Bank as against RBI’s stipulation for H$s VwbZm _o§ ~¢H Ho Hw b H mamo~ma H m 70% g§^mbZo dmbr 523 emImAmo§ H$s coverage of minimum 50% of deposits and 50% of advances, were subjected to Concurrent Audit during the year 2018-19, gZXr boImH mamo§ H$s ~mhar \ _© H$s godmE§ boVo hwE g§Jm_r boIm narjm H admB© by engaging the services of external fi rms of Chartered JB©& BgHo A{V[aº {Z{X©îQ àYmZ H m`m©b` H m`m©Ë_H à^mJ, E\ QrEg go§Qa, Accountants. Further, identifi ed HO functional Divisions, ~o§Jbya, _w§~B© _o§ Q—oµOar emIm ({Zdoe, ~hw_yë` YmVw H j Am¡a \ m°aoŠg H j FTS Centre at, Bangalore, Treasury Branch at Mumbai (which g{hV) H$s ^r g§Jm_r boIm narjm H$s OmVr h¡& àËòH Am§M{bH H m`m©b` includes Investments, Precious Metal Cell and Forex Cell) were Ûmam àËòH {V_mhr _o§ g§Jm_r boIm narjH mo§ H$s ~¡RH Am`mo{OV H$s OmVr h¡ also subjected to Concurrent Audit. Concurrent Auditors’ meet Am¡a Bg_o§ grEAmo Ho à_wI Am¡a à.H m. H m H moB© H m`©nmbH (g_`-g_` na is held every quarter by each Zonal Offi ce and is attended by the Chief of CAO and an Executive from HO (at times through dr{S`mo H m°Z\Œo qgJ Ho _mÜ`_ go ) Adí` CnpñWV hmoVo h¢& video conference). 21.07 8 19 893 df© 201 - Ho Xm¡amZ 1 emImAmo§ H m Am°\ -gmBQ {ZJamZr 21.07 During 2018-19, Off-Site Audit for 1893 branches was boIm narjm H$s J`r& conducted. 21.08 EQrE_ dmëQ²g, godm àXmVm `y{ZQ²g (AmB©Qr Ed§ J¡a-AmB©Qr) H$s 21.08 Audit of ATM Vaults, Service Provider Units (IT & boIm narjm df© _o§ EH ~ma H$s OmVr h¡& Ý`y H moa ~¢qH J gmoë`yeZ H$s SmQm Non-IT) are conducted once in a year. The Data Migration _mBJŒoeZ Eí`moao§e à{HŒ `m H mo grB©AmaQr-AmB©EZ Ho A§VJ©V n¡Zb~Õ ~mø Assurance process of New Core Banking Solution is being boIm narjH mo§ Ûmam {H `m OmVm h¡& {XZm§H 31.03.2019 H mo {\ ZoH b _o§ conducted by external auditors empaneled under CERT-IN. As on 31.03.2019, the auditors have completed migration audit of n[ad{V©V g_ñV 2564 emImAmo§ H$s _mBJŒoeZ boIm narjm nyar H a br 2564 branches that have migrated to Finacle. The Division has J`r h¡& Bg à^mJ Zo 29 godm àXmVm boIm narjm, 301 AmCQgmoqg©J boIm conducted 29 Service Provider Audits, 301 outsourcing audits, narjm, 9 ñWmZmo§ na Sr~r à~§YZ Ed§ Am°ZgmBQ AmB©Qr do§Sa à~§YZ H$s 9 locations for SOP compliance audit of DB Management & EgAmonr AZwnmbZ boImnarjm H$s h¡& Bg à^mJ Zo 44 EpßbHo eZmo§ O¡go onsite IT vendor Management The Division has also conducted gr~rEg, E\ QrEg, E\ grEg, EZB©E\ Qr, AmaQrOrEg, AmB©QrE_Eg, IS audits of 44 applications like CBS, FTS, FCS, NEFT, RTGS, `ynrAmB© BÝ\Œ mñQ—ŠMa, pñdâQ, _mo~mBb ~¢{H J Am{X H$s AmB©Eg boIm narjm ITMS, UPI infrastructure, SWIFT, Mobile Banking etc. & Seven Data Centre of the Bank by external auditors empaneled H$s h¡ Am¡a ~¢H Ho 7 SmQm Ho ÝÐmo§ H mo grB©AmaQr-AmB©EZ Ho A§VJ©V n¡Zb~Õ under CERT-IN. Audit of Storage of Payment Data and

~mø boIm narjH mo§ go H adm`m h¡& no_o§Q SmQm Ho ñQmoaoO Am¡a ^r_ AmYma BHIM Aadhaar Aggregator audit was conducted by external AJŒoJoQa boIm narjm grB©AmaQr-AmB©EZ Ho A§VJ©V n¡Zb~Õ ~mø boIm auditors empaneled under CERT-IN. Cyber Security Audit was narjH mo§ Ûmam {H `m J`m& gmB~a gwajm boIm narjm Am¡a Am§V[aH boIm conducted by the Internal Auditor. narjH Ûmam Am`mo{OV {H `m J`m Wm& 21.09 Pre-disbursement Credit audit of borrowal accounts with 21.09 `50 bmI Am¡a Cggo A{YH G$U gr_m dmbo CYma ImVmo§ H$s credit limits `50 lakhs & above has been carried out. During 2018-19, 164 pre-disbursement credit audit of `5 crore & g§{dVaUnyd© boIm narjm H$s J`r& 2018-19 Ho Xm¡amZ `5 H amo‹S Am¡a Cggo above have been conducted by IAD-Head Offi ce. A{YH Ho 164 G$U gr_mAmo§ H$s g§{dVaUnyd© boIm narjm AmB©ESr-àYmZ H m`m©b` Ûmam H$s OmVr h¡& 21.10 During the fi nancial year 2018-19 the Division has conducted Revenue Audit & seepage of income to the tune of 21.10 {dÎm df© 2018-19 Ho Xm¡amZ à^mJ Zo amOñd boIm narjm Am`mo{OV `80.26 crore has been detected. `80 26 H$s Am¡a . H amo‹S Am` H m [agmd H m nVm bJm`m J`m& 21.11 The Division has initiated a scheme of recognizing good 21.11 à^mJ Zo emImAmo§ Ûmam [anmoQmoª H$s {ZYm©[aV Am§V[aH g_` _mZX§Smo§ go work of branches in getting the reports lodged well before the nyd© g_mpßV g§~§Yr CËH¥ îQ H m`© H mo _mÝ`Vm XoZo hoVw EH `moOZm àmaå^ H$s h¡ & stipulated internal time norms. In this regard 100 Branches received Certifi cates of Commendation signed by Executive Bg g§~§Y _o§ 100 emImAm| H$mo H m`©nmbH {ZXoeH Ûmam hñVmj[aV àe§gm Director & 366 Branches received Certifi cates signed by General 366 à_mU nÌ VWm emImAm| H$mo _hm à~§YH , AmB©ESr Ûmam hñVmj[aV Manager-IAD, have been awarded to the Branch Heads. This àe§gm à_mU nÌ àXmZ {H$E JE h¡& Bg _mnX§S Ûmam ~¢H Ho {hV gwa{jV measure has reduced the number of overdue inspection reports aIZo H$s {Xem _o§ A{VXo` boIm narjm [anmoQmoª _o§ H m\ r H _r AmB© h¡ VWm and has resulted in timely rectifi cation of irregularities, which A{Z`{_VVmAmo§ H m g_` na gwYma ^r hwAm h¡ & helps to safeguard the interest of the Bank.

ANNUAL REPORT 2018-19 67 21.12 g_rjm H b¢Sa Ho AZwgma {d{^Þ H m`©gyMr, AWm©V² boIm narjm 21.12 Various Agenda, as per calendar of reviews, viz., Audit `moOZm ~Zm_ {ZînmXZ, g§Jm_r boIm narjm [anmoQmoª Ho à_wI AdbmoH Z, Plan vs. Performance, Major observations of Concurrent Audit Reports, Major inspection and audit fi ndings of ELB’s, Seepage B©Eb~r Ho à_wI {ZarjU VWm boIm narjm Ho {ZîH f©, Am`[agmd, AÝ` of income, Special Reports, Migration Audit, inter-alia, are ~mVmo§ Ho gmW-gmW gyMZmW© VWm {ZXoemo§ Ho AZwnmbZ hoVw H m`©nmbH mo§ H$s being placed before the Audit Committee of the Executives & boIm narjm g{_{V VWm ~moS© H$s boIm narjm g{_{V Ho g_j àñVwV H$s Om Audit Committee of Board for information & for compliance ahr h¡ & of directions. 21.13 The inspectors/fi eld offi cials are being educated through 21.13 {ZarjH mo§/joÌ ñVar` A{YH m[a`mo§ H mo à^mdr boIm narjm H m`©^ma internal circulars to undertake effective auditing of branches. g§^mbZo hoVw Am§V[aH n[anÌmo§ Ûmam {e{jV {H `m OmVm h¡& {dÎmr` df© During the fi nancial year 2018-19, the auditors have also 2018-19 Ho Xm¡amZ boIm narjH EgQrgr, _§Jbyé _o§ Am`mo{OV à{ejU undergone a training at STC, Mangalore, besides a few of them _o§ CnpñWV hwE, BgHo Abmdm CZ_o§ go Hw N H mo à{VpîRV g§ñWmZmo§ _o§ ~mhar being nominated to external training programmes at reputed institutions. à{ejU H m`©HŒ _mo§ Ho {bE Zm_m§{H V {H `m J`m h¡ & 22. Risk Based Supervision 22. Omo{I_ AmYm[aV n`©dojU 22.1 RBS Cell is headed by an Assistant General Manager. 22.1 Ama~rEg àH moîR Ho à_wI ghm`H _hm à~§YH h¢ & Ama~rEg àH moîR RBS Cell is coordinating the conduct of annual Risk Based Ama~rAmB© Ûmam dm{f©H Omo{I_ AmYm[aV n`©dojU {ZarjU Ho Am`moOZ Supervision inspection by the RBI. The overall smooth conduct H m g_Ýd` H a ahm h¡& Ama~rAmB© boIm narjm g§nyU© gwMmê Am`moOZ Am¡a of the RBI audit and subsequent compliance to the observations and attending to the periodical queries from RBI are the duties nadVr© {Qßn{U`mo§ H m AZwnmbZ H aZm Ed§ Ama~rAmB© go g_`-g_` na nyNo of RBS Cell. OmZo dmbo àýmo§ H$s à{V{HŒ `m XoZm, Ama~rEg àH moîR Ho$ H V©ì` h¢& RBS Cell also does co-ordination with the RBI and the Ama~rEg àH moîR {V_mhr ~¡RH mo§ Ho {bE Ama~rAmB© Am¡a H m`m©Ë_H à^mJmo§ Ho functional divisions of the Bank for quarterly meetings and gmW g_Ýd` H aVm h¡ Am¡a _m{gH SmQm Ama~rAmB© H mo XoVm h¡& monthly data updates to RBI. 23. Credit Monitoring 23. G$U {ZJamZr 23.1 ~¢H Zo _hm à~§YH Ho ñdV§Ì à^ma Ho AÝVJ©V _mZH AmpñV`mo§ H$s 23.1 The Bank has created a separate division for monitoring the portfolio of Standard Assets under the independent charge {ZJamZr hoVw EH AbJ {d^mJ ~Zm`m h¡ & à^mJ Ho Xmo d{Q©H b h¢ EH -EH of General Manager. This division has two verticals, one for H amo‹S Ho D$na Ho ~‹So EŠgnmoOa H$s {ZJamZr Am¡a Xygam EH H amo‹S go H _ monitoring large exposures of above Rupees one crore and Ho EŠgnmoOa H$s {ZJamZr & BgHo A{V[aº, ghm`H _hm à~§YH /Cn another for monitoring exposure below Rupees one crore. _hm à~§YH Ho nX Ho H m`©nmbH Ho ZoV¥Ëd _o§ X~mdJŒñV ImVmo§ H$s {ZJamZr Further, verticals for monitoring of stressed accounts and follow up of NPA accounts headed by an Executive in the rank of VWm EZnrE ImVmo§ Ho AZwdV©Z hoVw d{Q©H b H$s ñWmnZm g^r Nh _§Sb Assistant General Manager/Deputy General Manager set up at H m`m©b`mo§ _o§ H$s JB© h¡& `h à^mJ emImAmo§ Am¡a Am§M{bH H m`m©b`mo§ H mo all the six Circle Offi ces. This division is guide to the branches {d{^Þ OmZH mar XoVm h¡ {Oggo _mZH loUr Ho X~mdJŒñV G$U ImVmo§ H mo and Zonal Offi ces by way of various inputs for ensuring close ZB© MyH$ ~ZZo go amoHo OmZo hoVw H ‹Sr {ZJamZr gw{Z{üV H$s Om gHo & MyH$ follow up of stressed loan accounts under standard category to Ho H maU g{hV g§^mì` EZnrE H$s erKŒ nhMmZ hoVw EH {gñQ_ g§Mm{bV avoid fresh slippages. A system driven advance warning software tool for early identifi cation of probable NPAs with reasons for G$U MoVmdZr gmâQdoà gmYZ ñWm{nV {H `m J`m h¡ Omo _mZH AmpñV`mo§ H$s slippages is put in place, which is quite ideal utility for effective à^mdr {ZJamZr/ZB© pñbnoO amoH Zo hoVw EH ~hwV AmXe© _mÜ`_ h¡ & G$U monitoring of standard assets/containing fresh slippages. The ImVmo§ _o§ nmE JE X~md Ho g_mYmZ hoVw VWm CgHo CÞ`Z Ho {bE Amdí`H division also maintains close liaison with Credit Division as gwYmamË_H H ma©dmB© gw{Z{üV H aZo hoVw à^mJ G$U à^mJ VWm Am§M{bH well as Zonal Offi ces/Circle Offi ces for ensuring that necessary H m`m©b`mo§/_§Sb H m`m©b`mo§ go {ZH Q g§~§Y ~ZmE aIVm h¡ & corrective actions for resolution of stress observed in loan accounts and up-gradation thereof is initiated. 24. {d{Y godm 24. Legal Services ~¢H Ho {d{Y godm à^mJ H$s ~¢H Ûmam {H E JE {d{^Þ dm{UÁ`H {HŒ `mH bmnmo§ Legal Services Division of the Bank plays a signifi cant role in _o§ _hËdnyU© ^y{_H m h¡& `h ~hw{dY H m`© H aVm ahm h¡ O¡go à{V^y{V Ho ê$n _o§ the various commercial activities undertaken by the Bank. It AMb g§n{Îm`mo§ Ho g§~§Y _o§ H mZyZr am` H$s g§drjm VWm AZw_moXZ, ~¢H Jma§{Q`mo§ has been performing diversifi ed activities such as Scrutiny and

68 VWm à{V Jma§{Q`mo§ H m _gm¡Xm V¡`ma H aZm/AZw_moXZ H aZm, ~¢H Jma§{Q`m± bmJy approval of legal opinions regarding immovable properties taken {H E OmZo VWm AÝ` _m_bmo§ Ho g§~§Y _o§ gbmh XoZm, _m_bm {Z{X©îQ XñVmdoµOmo§ as security, Drafting/approval of Bank Guarantees and Counter Guarantees, Advising on invocation of Bank Guarantees and H$s V¡`mar, {d{^Þ Ý`m`mb`mo§/{Q—ã`wZbmo§/àm{YH m[a`mo§ Am{X Ho g_j XO© other connected matters, Preparation of case specifi c documents, {H E OmZo dmbo dmX nÌ/A{^dMZ H m _gm¡Xm V¡`ma H aZm/AZw_moXZ H aZm; Drafting/approval of Plaint/pleadings and other applications to {d{^Þ amÁ`mo§ Ho {d{^Þ CÀM Ý`m`mb`mo§ Am¡a CÀMV_ Ý`m`mb`go g§~§{YV be fi led before various courts, Tribunals/Authorities etc; Advising _m_bmo§ _o§ ^r nam_e© XoZm, àYmZ H m`m©b` Ho {d{^Þ à^mJmo§ Ûmam g§X{^©V g_ on the matter relating to various High Court of different States Âmm¡Vm kmnZmo§/H amamo§ H m AZw_moXZ H aZm, ~¢H Ho$ ~H m`m H mo dgyb H aZo hoVw and also on matters relating to Supreme Court, Approval of MOUs/Agreements referred by various Divisions in the Head Amdí`H H X_ CRmZo Ho {bE emImAmo§ H mo gy{MV H aZm ga\o gr A{Y{Z`_ Offi ce; Advising Branches as to the initiation of necessary Ed§ _wH X_m Xmà ImVmo§ Ho g§~§Y _o§ emImAmo§ H mo nam_e© XoZm, G$U àboImo§ H$s steps to recover the dues of the Bank, Advising on SARFAESI {d{YH boIm narjm Ed§ ñdËd {dboI na Amd{YH {d{YH boIm narjm na matters & advising on Suit fi led Accounts, Advising on Legal nam_e©, gyMZm H m A{YH ma A{Y{Z`_ Ho g§~§Y _o§ VWm AmaQrAmB© Ho VhV Audit of loan documents and Periodical Legal Audit of title ZmJ[aH mo§ go àmßV Anrbmo§ H mo {ZnQmZo _o§ nam_e© XoZm, Cn^moºm \ moa_mo§ Ed§ deeds, Examination & Advising on matters relating to Right to Information Act and disposal of Appeals received from Citizens AÝ` gm§{d{YH àm{YH m[a`mo§ go g§~§{YV _m_bmo§, Am`H a, {~H«$s H a d AÝ` under the Right to Information Act, Advising on the matters àm{YH m[a`mo§ go Hw H$s© AmXoemo§ go g§~§{YV _m_bmo§ na nam_e© XoZo H$s {Xem _o§ ^r relating to Consumer Forums and various other statutory H m`© H aVm ahm h¡& Bg à^mJ Zo _¥VH O_mH Vm©Amo§ go g§~§{YV Xmdmo§ Ho {ZnQmZ authorities. Matters pertaining to orders of attachments from hoVw gabrH¥ V à{HŒ `m H mo {dH {gV {H `m h¡& {d{Y godm à^mJ àboIrH aU Income tax, Sales tax or other authorities are effectively handled. g§~§Yr {d{^Þ nhbwAmo§ na Am¡a _¡Ý`wAbmo§ H mo g§emo{YV H aZo/AÚVZ H aZo _o§ The Division has devised a simplifi ed procedure for settlement of claims relating to deceased depositors. Division also advises g§JRZ Ed§ nÕ{V à^mJ H mo nam_e© ^r XoVm h¡& {d{Y A{YH mar {Z`{_V VWm Organisation and Methods Division on various documentation {Za§Va AmYma na {d{^Þ H mZyZr _m_bmo§ H mo ^r g§^mbVm h¡ Am¡a emImAmo§/ aspects and revision/Updating of Manuals. The Law Offi cers Am§M{bH H m`m©b`mo§/VWm àemg{ZH H m`m©b`mo§ H mo g_` gr_m Ho ^rVa are regularly and continuously handling various legal matters H mZyZr _mJ©Xe©Z/ñnîQrH aU XoVm h¡ VWm ~¢H Ho {HŒ `mH bmn Ho g_ñV nhbyAmo§ and offering legal guidance/clarifi cations to branches/Zonal _o§ ~¢H H$s {hV H$s ajm Ho {bE H X_ CRmVm h¡& {d{Y godm à^mJ A{YdºmAmo§ Offi ces/and Administrative Offi ces in a time bound manner H m n¡Zb ~ZmZo/n¡Zb go {ZH mbZo/{ZînmXZ H$s g_rjm H aZo H m ^r H m`© and take steps to safeguard the interest of the Bank in all its spheres of activities. Division is also handling Empanelment/ H aVm h¡& deletion/Review of performance of Advocates.

25. bmoH AXmbV 25. Lok Adalat {d{Y godm à^mJ Xoe Ho {d{^Þ ^mJmo§ _o§ bmoH AXmbV Ho gmW g_Ýd` Legal Services Division is co-ordinating Lok Adalats in different parts of the Country. During the period 01.04.2018 to 01 04 2018 31 03 2019 H aVm h¡& . . go . . H$s Ad{Y Ho Xm¡amZ `h à^mJ 31.03.2019, the division was able to conduct a National Lok {d{^Þ A§Mbmo§ _o§ amîQ—r` bmoH AXmbV Am`mo{OV H a gH m, {OgHo ã`moao Adalat in different Zones, the particulars of which are furnished {ZåZdV² h¢ : as under: bmoH AXmbV Ho ã`moao ào{fV ImVmo§ H$s em{_b am{e (`) {ZnQmE JE ImVmo§ H$s {ZnQmB© JB© am{e (`) ZH X dgybr (`) Details of Lok Adalath g§»`m H amo‹S _o§ Amount g§»`m H amo‹S _o§ H amo‹S _o§ No. of accounts involved (`) in No. of accounts Settled amount Cash Recovery referred crore settled (`) in crore (`) in crore Aà¡b April 2018 3658 84.45 169 2.83 0.65 OwbmB© July 2018 7430 117.35 709 8.10 2.16 {gV§~a Sept 2018 3796 201.79 303 3.90 0.82 {Xg§~a Dec 2018 6919 113.63 872 8.00 1.61 _mM© March 2019 6746 152.79 950 9.01 1.83 Hw b TOTAL 28549 670.01 3003 31.85 7.08

ANNUAL REPORT 2018-19 69 26. G$U g§{dVaU nyd© {d{YH boIm narjm 26. Pre-Disbursement Legal Audit àH m n[anÌ g§. 23/2015 {XZm§{H V 07.01.2015 Ho AZwgma G$U g§{dVaU As per HO Circular No.23/2015 dated 07.01.2015 the cut nyd© {d{YH boIm narjm H aZo H$s {ZåZV_ gr_m H mo ~TmH a `50.00 bmI off limit for conducting Pre-disbursement legal audit is revised H a {X`m J`m h¡& `50.00 bmI go A{YH Ho g^r {Z{Y AmYm[aV Am¡a J¡a- upwards to `50.00 lakh. All borrowal accounts, both fund based ` {Z{Y AmYm[aV ImVmo§ H m G$U g§{dVaU nyd© {d{YH boIm narjm H$s OmVr and non-fund based, of the limit of 50.00 lakh and above shall be subjected to Pre-disbursement Legal Audit. Pre-disbursement h¡& G$U g§{dVaU nyd© {d{YH boIm narjm ~¢H Ho n¡Zb~Õ A{YdºmAmo§ Legal Audit shall be conducted by the empanelled advocates of Ûmam H admB© OmVr h¡& {deof _m_bmo§ _o§, Amdí`H hmoZo na ~¢H Ho {d{Y the Bank. In specifi c cases, where required, Legal Audit shall be A{YH m[a`mo§ Ûmam {d{YH boIm narjm H$s OmVr h¡& emImAmo§ H mo `h gw{Z{üV conducted by the Law Offi cers of the Bank. Branches should H aZm Mm{hE {H {d{YH boIm narjm _o§ AJa H moB© H _r {ZH mbr JB© h¡ Vmo G$U ensure that irregularities, if any, pointed out in the Periodical g§{dVaU Ho nyd© Cgo Xya H a {b`m OmZm Mm{hE& {XZm§H 31.12.2018 H mo Legal Audit Report are rectifi ed before disbursement of loan. As {X„r CÎma A§Mb H$s 6 ImVmo§ _o§ b§{~V g§{dVaUnyd© boIm narjm H mo Nmo‹SH a, on 31.12.2018, all the Zones have completed Pre disbursement g^r A§Mbmo§ Zo g§{dVaUnyd© boIm narjm nyar H a br h¡ Am¡a eyÝ` b§~Z [anmoQ© Audit and reported NIL except Delhi North Zone where 6 {H `m h¡& {d^mJ Zo {XZm§H 31.03.2019 VH Ho ImVmo§ _o§ g§{dVaUnyd© {d{Y accounts are pending for conduct of Periodical Legal Audit. The boIm narjm à{HŒ `m H$s ewéAmV H$s h¡& Department has initiated the process of Pre-disbursement Legal Audit of accounts as on 31.03.2019. 27. gyMZm H m A{YH ma A{Y{Z`_, 2005 ~¢H Zo gyMZm H m A{YH ma A{Y{Z`_, 2005 Ho AZwnmbZ _o§ àYmZ 27. The Right to Information Act, 2005 H m`m©b` _o§ ghm`H OZ gyMZm A{YH mar (EnrAmB©Amo), OZ gyMZm Bank in compliance of Right to Information Act, 2005 has A{YH mar (nrAmB©Amo) Am¡a Anrb àm{YH mar (EE) Zm{_V {H E h¢ Am¡a designated Assistant Public Information Offi cer (APIO), Public àËòH Am§M{bH H m`m©b` Am¡a _§Sb H m`m©b` _o§ OZ gyMZm A{YH mar Am¡a Information Offi cer (PIO) and Appellate Authorities (AA) at Anrb A{YH mar Zm{_V {H E h¢& JŒmhH godm à^mJ, àYmZ H m`m©b` Zo gyMZm Head Offi ce and Public Information Offi cer and Appellate H m A{YH ma A{Y{Z`_ Ho A§VJ©V Ano{jV AÝ` g§~§{YV OmZH mar Ho gmW Authority at each Zonal Offi ce and Circle Offi ce. Name of EnrAmB©Amo, nrAmB©Amo Am¡a EE Ho Zm_ ~¢H H$s do~gmBQ na àX{e©V {H E APIO, PIO and AA are displayed in the Bank’s Website with JE h¢& ~¢H Cº A{Y{Z`_ Ho àmdYmZmo§ H m g^r ñVamo§ na AZwnmbZ H a ahm other relevant information as required under RTI Act by h¡ Am¡a OZVm go àmßV g^r AmdoXZmo§ Am¡a Anrbmo§ H mo {ZYm©[aV g_`md{Y Ho Customer Services Division, Head Offi ce. Bank is complying A§VJ©V {ZnQm ahm h¡& with the provisions of the said Act at all levels and disposing of all the application and appeals within the stipulated time. 28. B©- g_mMmanÌ- Wo{_g, g~H m Ý`m` Ed§ {bàmo H mZyZr godm à^mJ Zo "Wo{_g' Zm_ go B©-g_mMma nÌ bm°ÝM {H `m h¡ Am¡a 28. e-NEWSLETTER – THEMIS, SABKA NYAY & LIPRO Cgo nm{jH ê$n go Omar {H `m Om ahm h¡ Am¡a Bg Ad{Y Ho Xm¡amZ, Wo{_g Legal Services Division has launched e-News Letter by name Zo àboIZ-àmonamBQa{en, ~§YH gm_mZ H$s Zrbm_r, QrAmoSr, gmI nÌ, “THEMIS” and the same is being issued fortnightly and during the period, THEMIS has covered 54 issues relating to gmÂmoXmar Am¡a AmoQrEg `moOZm H m àboIZ, emIm n[aga, AmB©~rgr l¥§Ibm Documentation-Proprietorship, Auction of Pledged Goods,

4, gmB~a AnamY, ~rOr H m à^mdr hmoZm, {ZîH m{gV ~rOr, AmB©~rgr, TOD, Letter of Credit, Documentation-Partnership and ga\ mgr, AmYma, AmaQrAmB© Am{X - go g§~§{YV 54 _wÔmo§ Am¡a JŒrZ ~¢qH J, OTS Scheme, Branch Premises, IBC Series 4, Cyber Crime, ~m¡{ÕH g§nXm A{YH ma, {HŒ ßQmo _wÐm Am{X go g§~§{YV 7 {deof _wÔmo§ H mo H da Invocation of BG, Expired BG, IBC, SARFAESI, Aadhar, RTI {H `m h¡& etc. and 7 Special Issues relating to Green Banking, Intellectual Property Rights, Crypto Currency etc. {SdrOZ Zo ""g~H m Ý`m`'' Zm_ go EH Am¡a B©- g_mMma nÌ bm°ÝM {H `m h¡, Omo bmoH AXmbV na EH {ejmàX l¥§Ibm h¡, {OgH m CÔoí` bmoH AXmbV The Division has launched another e-News Letter by name Ho {d{^Þ nhbwAmo§ Ho gmW joÌ ñVa Ho A{YH m[a`mo§ H mo n[a{MV H aZm h¡& “SABKA NYAY”, which is an educative series on Lok Adalat which aims at familiarizing the ﬁ eld level functionaries with g~H m Ý`m` Zo amîQ—r` bmoH AXmbV Ho g§MmbZ na H mo em{_b 9 _wÔmo§ various aspects of Lok Adalat. SABKA NYAY, has covered 9 {H `m h¡& issues on conducting of National Lok Adalat. ~¢H Ho X¡pÝXZ$H m_H mO H mo à^m{dV H aZo dmbo {H gr ^r {ZU©`/H mZyZr “LEX VISTA” is launched to instantly communicate to all staff KQZmAmo§ H mo g^r H _©Mm[a`mo§ H mo Vwa§V gy{MV H aZo Ho {bE "boŠg {dñQm' members any Decisions/Legal Events having impact on the day

70 bm°ÝM {H `m J`m h¡ Am¡a Bg_o§ 46 _wÔmo§ H mo em{_b {H `m J`m h¡& BgHo$ today functioning of the Bank and it has covered 46 issues. Abmdm, à^mJ "EbEgSr âb¡e' Ho _mÜ`_ go AbJ-AbJ H mZyZr _wÔmo§ Apart from the same, Division is also communicating Flashes na âb¡e H m g§Mma ^r H a ahm h¡& df© _o§ A~ VH 83 âb¡e Omar on various legal issues separately through “LSD FLASH”. As at the year end 83 Flashes are issued. {H E JE h¢& à^mJ ""{bàmo'' Zm_H$ EH$ B©-Ý`y¥O boQ>a ^r àH$m{eV H$aVm h¡ Omo H$mn©~¢H$ Division is also issuing “LIPRO”, the e-News Letter covering for Legal Issues in Corp Bank Products. It intends to give Ho$ CËnmXm| go Ow‹S>o H$mZyZr _wÔm| H$mo H$da H$aVm h¡Ÿ& `o emIm ñVa na CR>Zo guidance in legal issues involved in our Bank Products raised dmbo ~¢H$ CËnmXm| go Ow‹S>o H$mZyZr _gbm| na _mJ©Xe©Z XoVm h¡Ÿ& gr-hmo_, gr- at Branch Level. Lipro on CHome, Cvehicle, Chome-RERA, ìho{H$b, gr-hmo_ -Ama B© Ama E, nr E_ E dmB©, H$mn© eoëQ>a Ed§ H$mn© _m°J}O PMAY, Corp Shelter and Corp Mortgage are issued. na {bàmo Ho$ A§H$ àH$m{eV {H$E JE h¢Ÿ& 29. CORP NEETI 29. H mn© Zr{V Legal Services Division has developed a Web Portal named {d{Y godm à^mJ Zo ~¢H VWm CgHo H mamo~ma H mo à^m{dV H aZo dmbo g^r “CORP NEETI” with the mission of making it a single point

{d{YH _wÔmo§ hoVw EH b q~Xw g§X^© ~ZmZo Ho {_eZ Ho gmW ""H mn© Zr{V'' reference to all legal issues affecting the bank and its business. Zm_H do~ nmoQ©b {dH {gV {H `m & ""H mn© Zr{V'' H mo à^mJ Ûmam Omar g^r “CORP NEETI” is up dated with all the circulars issued by the n[anÌmo§ , {d{^Þ B©-Ý`yµOboQa, _hËdnyU© A{Y{Z`_/{Z`_ Am{X go AÚVZ Division, various e-newsletters, important Acts/Rules, etc. Data {H `m J`m h¡& SrAmaQr VWm {g{db dmX H mo H mn© Zr{V nmoQ©b _o§ CnbãY on DRT & Civil Suit is made available on Corp Neeti Portal. H am`m J`m h¡& 30. AWARD 30. nwañH ma The IDEX Legal Awards are unique award to clearly identify AmB©SrEŠg {d{YH nwañH ma Am§V[aH gbmh VWm CZ {d{YH \ _© H mo ñnîQ in-house counsel and law fi rms who excel in their specifi c roles ê$n go nhMmZZo Omo AnZr {Z{X©îQ ^y{_H m _o§ CËH¥ îQVm àmßV H aVo h¢ VWm {d{Y and for honouring legal excellence. We have send nomination CËH¥ îQVm H mo gå_m{ZV H aZo hoVw {d{eîQ nwañH ma h¡& h_Zo ""H m`© H aZo hoVw for legal award in the category of “Best In-house Department CËH¥ îQ Am§V[aH {d^mJ '' Ho dJ© _o§ {d{Y nwañH ma Ho {bE Zm_m§H Z ôOm h¡ to Work for” and the name of our Bank was selected as one of VWm h_mao ~¢H H m M`Z EH \ mBZo{bñQ Ho ê$n _o§ {H `m J`m h¡& the Finalists.

31. gwajm 31. Security 32.1 g^r emImAmo§ Am¡a EQrE_ H mo gwajm CnñH amo§ H$s X¥pîQ _o§ 100% Bank has taken necessary steps in ensuring all Branches and AZwnmbZ gw{Z{üV H aZo hoVw ~¢H Zo Amdí`H H X_ CRmE h¢& ~¢H Ûmam CRmE ATMs are 100% compliant on security fi xtures. Initiatives JE H X_mo§ go g^r emImE± Am¡a EQrE_o§ BboŠQ—m{ZH {ZJamZr _o§ Am JE h¢ & taken by the Bank has resulted in coverage of ATMs and all emImAmo§/EQrE_mo§ _o§ bJmE JE grgrQrdr-SrdrAma H$s H m`©Hw ebVm H$s Branches under electronic surveillance. Regular monitoring {Z`{_V {ZJamZr E\ QrEg, ~o§Jbwé _o§ ñWm{nV \¡ {g{bQr _¡ZoO_o§Q g{d©g Ûmam of health of the CCTV-DVR installed in Branches/ATMs is {H `m OmVm h¡ Vm{H CZHo H m`© Z H aZo Ho g_` H mo H _ {H `m Om gHo & done through Facility Management Service established at FTS, g_w{MV [aH mS© aIZo hoVw amoñQa Ûmam SrdrAma H$s Om§M H$s OmVr h¡ Am¡a Bangalore to reduce the down time. By roster, the DVR are checked for proper recording etc., and corrective action is taken E\ QrEg _o§ g{d©g B§Or{Zàmo§ Ûmam CnMmamË_H H ma©dmB© H$s OmVr h¡& by service engineers. 32. AZwnmbZ 32. Compliance 32.1 ^maVr` [a‹Od© ~¢H Ho {ZXo©emo§ Ho AZwê$n ~¢H Zo Cn _hm à~§YH Ho ñVa Ho H m`©nmbH Ho AYrZ AZwnmbZ à^mJ ñWm{nV {H `m J`m h¡, Omo ^maVr` 32.1 The Bank has a Compliance Division headed by an Executive of the Rank of Deputy General Manager who [aµOd© ~¢H Ho {ZXoemo§ Ho AZwgma ~¢H Ho _w»` AZwnmbZ A{YH mar (grgrAmo) represents as the Chief Compliance Offi cer (CCO) of the Bank, Ho Vm¡a na à{V{Z{YËd H aVo h¢& as per the directions of the Reserve Bank of India. 32.2 AZwnmbZ à^mJ ^m[a~¢/^m~¢g§/Zm~mS©/go~r/AmB©AmaSrE/ 32.2 The Compliance Division ensures that the relevant grdrgr/~rgrEg~rAmB© BË`m{X go àmßV g§~§{YV {Xem{ZXo©emo§ Am¡a AZwXoemo§ guidelines and instructions from RBI/IBA/NABARD/SEBI/ H m CËgmh Am¡a dmñV{dH ê$n go AZwnmbZ gw{Z{üV H aVm h¡ Vm{H ~¢H Ûmam IRDA/CVC/BCSBI etc. are complied with in spirit and gm_Zm H$s OmZodmbr AZwnmbZ Omo{I_ Ho à^mdr à~§YZ _o§ CÀM à~§YZ H mo substance so as to assist the top management in managing ghm`Vm hmo gHo & effectively the Compliance risks faced by the bank.

ANNUAL REPORT 2018-19 71 32.3 BgHo gmW hr AZwnmbZ à^mJ H m`m©Ë_H à^mJmo§ _o§ AZwXoemo§ H m àgma 32.3 The Compliance Division also ensures dissemination of gw{Z{üV H aVm h¡, C{MV Am§V[aH AZwXoe Am¡a {Z`§ÌU _o§ ghm`Vm H aVm instructions to the operational departments, assisting them in designing of suitable internal instructions and controls, h¡, Am§V[aH Am¡a ~mø boIm narjH mo§ Ho gmW g§nH© aIVm h¡& Omo{I_ Am¡a maintaining liaison with internal and external auditors, etc. The ny±Or Ho AmH bZ hoVw n`©dojr H m`©HŒ _ (EgnrEAmagr) Ho AÝVJ©V df© Bank is covered under Risk Based Supervision since 2015-16 2015-16 hoVw ~¢H H mo Omo{I_ AmYm[aV n`©dojU hoVw H da {H `m J`m h¡ & under Supervisory Programme for Assessment of Risk and AZwnmbZ à^mJ n`m©ßV Am¡a à{V{Z{Y AZwnmbZ narjU {Zînm{XV H a Capital (SPARC). The Compliance Division monitors and {ZJamZr Am¡a narjU AZwnmbZ H aVm h¡ & test compliance by performing sufﬁ cient and representative compliance testing. 33. gVH© Vm V§Ì : 33. Vigilance Machinery ~¢H gmd©O{ZH YZ Ho g§ajH h¢ Am¡a Bg{bE B©_mZXmar, AI§SVm, nmaX{e©Vm Banks are the custodians of public money and hence maintain Am¡a gË`{ZîRm Ho CÀMV_ _mZH mo§ H mo ~ZmE aIVo h¢& EH ~¢qH J g§JRZ highest standards of honesty, integrity, transparency and probity. A{Zdm`© ê$n go Amngr {dœmg, AI§SVm Am¡a AmË_{dœmg Ho Xe©Z na H m_ A banking organization essentially works on the philosophy H aVm h¡& H _©Mm[a`mo§ Ho ~rM OmJêH Vm n¡Xm H aZm Am¡a CÝho§ à^mdr T§J go of mutual trust, integrity and conﬁ dence. Creating awareness among employees and engaging them effectively enhances the

ì`ñV aIZm g§JRZ H$s CËnmXH Vm H mo ~‹TmVm h¡& H _©Mm[a`mo§ _o§ Bg Vah H m productivity of the organization. Vigilance is one of the effective AmË_{dœmg Am¡a AI§SVm ~ZmE aIZo Ho {bE gVH© Vm EH à^mdr à~§YZ management tool to maintain such confi dence and integrity CnH aU h¡& among the employees. EH àJ{Verb g§ñWmZ Ho ê$n _o§, H m°nmo©aoeZ ~¢H _o§ EH _O~yV _mZH As a progressive institution, Corporation Bank has a robust standard operating procedures (SOPs) and well defi ned role and n[aMmbZ à{HŒ `m (EgAmonr) h¡ Am¡a H _©Mm[a`mo§ Ho {bE gwn[a^m{fV ^y{_H m responsibilities for employees. Our bank is playing a proactive Am¡a {Oå_oXm[a`m§ h¢& h_mam ~¢H nyU© nmaX{e©Vm Ho gmW n[aMmbZ Ho {d{^Þ role in suggesting valuable systemic improvement in various joÌmo§ _o§ _yë`dmZ àUmbrJV gwYma H m gwÂmmd XoZo _o§ g{HŒ ` ^y{_H m {Z^m ahm areas of operation with absolute transparency. The vigilance h¡& ~¢H H$s gVH© Vm àUmbr nyar B©_mZXmar ~ZmE aIVo hwE nmaXer© VarHo go system of bank emphasizes on taking bonafi de decisions as per ~¢H Ho _mZX§Smo§ Ho AZwgma A{YH¥ V {ZU©` boZo na Omoa XoVr h¡& h_Zo A{YH¥ V the norms of the bank in transparent manner by maintaining absolute integrity. We have viewed bonafi de decisions in the

{ZU©`mo§ H mo ghr n[aàoú` _o§ XoIm h¢ Am¡a `h gw{Z{üV {H `m h¡ {H g^r loUr right perspective and ensured that natural justice is given to all Ho A{YH m[a`mo§ Am¡a H _©Mm[a`mo§ {OÝhm§oZo {ZU©` Ho n[aUm_ H$s nadmh {H E the rank and fi le who acted in good faith, with honest intention {~Zm B©_mZXmar Am¡a {dœmg Ho gmW H m_ {H `m, CÝh§o Z¡g{J©H Ý`m` {_bo& regardless of the outcome of the action/decision. We have tried h_Zo AnZr H m`© g§ñH¥ {V _o§ B©_mZXmar, {ZîRm, nmaX{e©Vm Am¡a gË`{ZîRm H mo to imbibe in our work culture honesty, integrity, transparency AmË_gmV H aZo H$s H mo{ee H$s h¡ Vm{H h_mao JŒmhH mo§ Ûmam h_mao à{V {XImò and probity so that the trust and faith reposed in us by our customers is honoured. JE âmogo Am¡a {dœmg H mo gå_mZ {_bo& The vigilance functions in the Bank are primarily in the nature ~¢H _o§ gVH© Vm H m`© _w»` ê$n go X§SmË_H H ma©dmB© H aZo Ho ~Om` amoH Wm_ of prevention and detection, rather than taking punitive action. Am¡a nVm bJmZo H$s àH¥ {V _o§ h¢& gVH© Vm V§Ì EH àhar H$s ^y{_H m {Z^mVm The vigilance machinery plays the role of a watchdog so as h¡ Vm{H `h gw{Z{üV hmo gHo {H {H gr ^r ì`{ºJV àmpßV `m bm^ Ho {bE to ensure that the laid down systems and procedures are not {ZYm©[aV àUm{b`mo§ Am¡a à{HŒ `mAmo§ go No‹SNm‹S Z H$s OmE& tampered with for any personal gain or benefi t. The Bank has introduced following initiatives under the

~¢H Zo gVH© Vm V§Ì Ho VhV {ZåZ{b{IV nhb H$s h¡ : Vigilance Mechanism:  ~¢H Zo AnZr ""pìhgb ãbmoAa nm°{bgr'' ~ZmB© h¡ {OgH m CÔoí`  The Bank has framed its own “Whistle Blower Policy”, the objective of which is to identify any untoward events with the H _©Mm[a`mo§ H$s ghm`Vm go A{à` KQZmAmo§ H mo nhMmZZm h¡ Am¡a g_` help of the employees and to take timely corrective measures na gwYmamË_H H X_ CRmVo hwE àma§{^H MaU _o§ hr Cgo amoH Zm/~¢H H$s so as to prevent/protect the Bank at the initial stage itself. ajm H aZm h¡& Bg Zr{V _o§ Bg V§Ì H m BñVo_mb H aZodmbo H _©Mm[a`mo§ H mo This mechanism also provides adequate safeguards against naoemZ {H E OmZo Ho {déÕ n`m©ßV nydmo©nm` ^r h¢& victimization of employees who avail of this mechanism.  {ZdmaH gVH© Vm na {V_mhr Ý`yµOboQa ""OmJ¥{V'' {Z`{_V ê$n go  A quarterly newsletter on preventive vigilance called ‘Jaagrithi’ is being published and circulated amongst all àH m{eV H aHo ~¢H H$s g^r emImAmo§/H m`m©b`mo§ Ho ~rM n[aMm{bV branches/ofﬁ ces of the Bank. The newsletter contains H$s Om ahr h¡& Cº Ý`yµOboQa _o§ h_mao ñQm\ gXñ`mo§ H mo gOJ H aZo Ho information on vigilance cases comprising fraud and the CÔoí` go H nQ Ho ZdrZV_ _m_bmo§ H m gmam§e VWm H n{Q`mo§ Ûmam AnZmB© modus operandi adopted by the fraudsters, which creates JB© H m`© nÕ{V H mo àH m{eV {H `m OmVm h¡& awareness among the operational staff members.

72  ~¢H Zo EH {ZdmaH gVH© Vm V§Ì {dH {gV {H `m h¡, {Og_o§ emImAmo§ H mo  The Bank has evolved a Preventive Vigilance Mechanism àË`oH {V_mhr _o§ {ZdmaH gVH© Vm ~¡RHo§ ~wbmZo Ho {bE {ZXo©{eV {H `m wherein branches have been directed to convene Preventive Vigilance Meetings every quarter, wherein the staff members

J`m h¡, {Og_o§ ñQm\ gXñ`mo§ H mo ~¢H Ho gVH© Vm à^mJ, ^maVr` ~¢H have to read the Circulars issued by Vigilance Division, H$s Egmo{gEeZ Ho gmW-gmW gVH© Vm à^mJ Ûmam Omar n[anÌ n‹TZo Fraud Monitoring Cell of the Bank as well as Indian Banks’ Am¡a MMm© H aZo Ed§ AnZo H m`© AZw^dmo§ H$s OmZH mar gmÂmm H aZo H$s Association and are required to discuss, share information, Amdí`H Vm hmoVr h¡ Vm{H nyao ~¢H _o§ gVH© Vm Am¡a OmJêH Vm CËnÞ hmo& their work experiences so that alertness and awareness is  gVH© Vm A{YH m[a`mo§, OmoZb H m`m©b` Ho H m`©nmbH mo§ Ûmam g_`-g_` generated throughout the Bank. na emImAmo§ H m {ZdmaH gVH© Vm Xm¡am A{Zdm`© {H `m J`m h¡&  Periodical Preventive Vigilance Visits by Vigilance Offi cers, Executives from Zonal Offi ce to the branches have been  {SdrOZ Ûmam g_` na H ma©dmB© H aZo hoVw emImAmo§ _o§ ^ŒîQmMma/ made mandatory. Xw^m©dZm/YmoImY‹Sr H$s KQZmAmo§ H$s [anmoQ© H aZo Ho {bE H _©Mm[a`mo§ H mo  A dedicated hotline has been installed at CVO’s Secretariat gj_ ~ZmZo hoVw _w»` gVH© Vm A{YH mar Ho g{Mdmb` _o§ EH g_{n©V for enabling staff to report incidence of corruption/ hm°QbmBZ ñWm{nV H$s JB© h¡& malpractices /fraud at Branches to take timely action by the  A§Mb H m`m©b` Ûmam CÀM Omo{I_ àdU joÌmo§ H mo H da H aZo dmbr Division.  {ZdmaH gVH© Vm boIm narjm H mo emImAmo§ _o§ g§Mm{bV {H `m Om ahm h¡, Preventive Vigilance Audit covering high risk prone areas is being conducted at branches by Zonal Offi ce wherein each

{Og_o§ àË`oH emIm H mo df© _o§ Xmo ~ma boIm narjm Ho AYrZ {H `m OmZm branch is subjected to audit twice in a year and a report is h¡ Am¡a EH [anmoQ© gVH© Vm à^mJ H mo àñVwV H$s OmZr h¡ & submitted to Vigilance Division.  grdrgr Ho {Xem{ZXo©emo§ Ho AZwgma, ~¢H Ho H _©Mm[a`mo§ Ho gXñ`mo§ Ho  In accordance with the CVC guidelines, the Bank is {bE {Z~§Y à{V`mo{JVm, Ho g ñQSr à{V`mo{JVm Am¡a àýmoÎmar à{V`mo{JVm celebrating “Vigilance Awareness Week” every year during O¡gr {d{^Þ à{V`mo{JVmAmo§ H m Am`moOZ H aHo ~¢H AŠQy~a-Zd§~a Ho October-November, by conducting various Competitions like Essay Competition, Case Study Competition and Xm¡amZ ha gmb "gVH© Vm OmJêH Vm gßVmh' _ZmVm ahm h¡& EH AmCQarM Quiz Competition for the staff members of the Bank. As J{V{d{Y Ho ê$n _o§, H m°boO Ho NmÌmo§ Ho {bE {d{^Þ à{V`mo{JVmE§ ^r an outreach activity, various Competitions for the College Am`mo{OV H$s OmVr h¢& ^ŒîQmMma Am¡a ^ŒîQ AmMaU H mo {_QmZo Ho {bE students are also conducted. “Integrity Pledge” is taken by OZVm Ho ~rM OmJêH Vm n¡Xm H aZo Ho {bE, JŒm_rUmo§ Am¡a ehar Ho§ Ðmo§ _o§ the staff members and “Gram Sabhas” at Villages and Urban "gË`{ZîRm à{Vkm' "H _©Mm[a`mo§ Am¡a JŒm_ g^mAmo§' Ûmam br OmVr h¡& Centers are organized to create awareness among the public  EH CÞV gVH© Vm gbmhH ma V§Ì ~Zm`m J`m h¡ {Og_o§ H m`©nmbH to eradicate corruption and corrupt practices.  An improved vigilance consultation mechanism is in place

{ZXoeH H$s AÜ`jVm _o§ _hm à~§YH Ed§ _w»`gVH© Vm A{YH mar Am¡a by arranging an Interactive Session, once in a quarter, chaired _hm à~§YH , _mZd g§gmYZ à~§YZ (H màà) H m Xb {V_mhr _o§ EH ~ma by Executive Director along with Chief Vigilance Ofﬁ cer erKŒ nyNVmN à{HŒ `m/à{V{HŒ `m(H ma©dmB©) Ho g_`_o§ H _r H a Am¡Úmo{JH and General Manager-HRM [PAD] team for initiating g§~§Y dmVmdaU H mo gwYmaZo hoVw MMm© gÌ Am`mo{OV H aVm h¡ & `h _§M quicker enquiry proceedings/reducing the reaction time EH {ZdmaH gÌ Ho ê$n _o§ H m`© H aVm h¡ Omo J§^ra g_ñ`mAmo§ H$s nhMmZ to improve the industrial relation climate. This forum acts H aVm h¡ Am¡a Ëd[aV hñVjon/erKŒ gwYmamË_H H ma©dmB© H$s gw{dYm XoVm as a preventive session identifying incipient problems and facilitating prompt intervention/prompt corrective action. h¡& 34. IND AS IMPLEMENTATION 34. AmB©EZSr EEg H m`m©Ýd`Z Banks in India currently prepare their ﬁ nancial statements ^m[a~¢ Ûmam Omar {Xem {ZXoemo§ Am¡a ^maV _o§ gm_mÝ`V: ñdrH¥ V boIm§H Z as per the guidelines issued by RBI and generally accepted {gÕm§Vmo§ (B§{S`Z OrEEnr) Ho AZwgma ^maV _o§ ~¢H mo§ Ûmam AnZm {dÎmr` accounting principles in India (Indian GAAP). In January {ddaU V¡`ma {H `m Om ahm h¡& OZdar, 2016 _o§ H mnmo©aoQ _m_bmo§ Ho _§Ìmb`Zo 2016, the Ministry of Corporate Affairs issued the roadmap AZwgy{MV dm{UpÁ`H ~¢H mo§, ~r_m H§ n{Z`mo§ Am¡a J¡a ~¢qH J {dÎmr` H§ n{Z`mo§ for implementation of new Indian Accounting Standards (EZ~rE\ gr) hoVw A§Vam©îQ—r` {dÎmr` [anmoqQ©J _mZH (AmB©E\ AmaEg) Ho (Ind AS), converged with International Financial Reporting Standards (IFRS), for scheduled commercial banks, insurance

AZwgaU _o§ ZB© ^maVr` boIm§H Z _mZH (B§S EEg ) Ho H m`m©Ýd`Z hoVw amoS_on companies and non-banking ﬁ nancial companies (NBFCs). Omar {H `m h¡& ^maVr` [a‹Od© ~¢H (Ama~rAmB©) Zo AnZo JíVr nÌ {XZm§{H V Reserve Bank of India (RBI) has advised vide their circular 11.02.2016 Ho Ûmam gy{MV {H `m h¡ {H ~¢H mo§ H mo 01 Aà¡b, 2018 àmaå^ letter dtd. 11.02.2016 that Banks shall comply with the Indian go boIm§H Z Ad{Y Ho {bE {deof {ddaUmo§ hoVw ^maVr` boIm§H Z _mZX§Smo§ Accounting Standards (Ind AS) for ﬁ nancial statements for (AmB©EZSr EEg) H m AZwnmbZ H aZm h¢& accounting periods beginning from April 1, 2018 onwards.

ANNUAL REPORT 2018-19 73 nhbo ^m[a~¢ Ho {Xem{ZXoemo§ Ho AZwgma ^maVr` boIm§H Z _mZH (AmB©EZSr Earlier as per RBI direction implementation of Indian EEg) H o AZwnmbZ H mo ~¢qH J {d{Z`_Z EŠQ 1949 _o§ Amdí`H gm§{dYm{ZH Accounting Standards (Ind AS) was deferred by one year pending necessary legislative amendments to the Banking gwYma gmW hr H B© ~¢H mo§ _o§ Cg ñVa H$s V¡`mar hoVw EH df© Ho {bE b§{~V aIm Regulation Act,1949 as also the level of preparedness of many J`m& banks. A~, Ama~rAmB© Zo AnZo n[anÌ RBI/2018-19/146/DBR.BP.BC. Now, RBI vide its circular RBI/2018-19/146/DBR.BP.BC. No.29/21.07.001/2018-19 dated March 22, 2019 has NO 29 21 07 001 2018 19 22 2019 . / . . / - {XZm§{H V _mM© Ûmam gy{MV conveyed that the legislative amendments recommended by {H `m {H ^maVr` [a‹O~© ~¢H Ûmam AZwe§{gV gm§{dYm{ZH gwYma ^maV gaH ma the Reserve of Bank of India are under consideration of the Ho nmg {dMmamW© h¡& VXZwgma, `h {Z{üV {H `m J`m {H AmB©EZSr EEg Ho Government of India. Accordingly, it has been decided to defer AZwnmbZ H mo AJbr gyMZm VH amoH m OmE& the implementation of Ind AS till further notice. As per RBI directions, Bank has formed Steering Committee

Ama~rAmB© {ZXo©emo§ Ho AZwgma ~¢H Zo B§S EEg H m`m©Ýd`Z Ho {bE n[aMmbZ for Ind AS implementation. The Steering Committee comprises g{_{V J{RV H$s h¡& Cº n[aMmbZ g{_{V _o§ H m`©nmbH {ZXoeH (n[aMmbZ Executive Director (Head of the Steering Committee) as g{_{V Ho à_wI) 31.10.2017 H mo ^m[a~¢ Ûmam {ZXo©{eV Am¡a {dÎmr` à~§YZ directed by RBI on 31.10.2017 and General Managers from à^mJ, G$U à^mJ, EH$sH¥ V Omo{I_ à~§YZ à^mJ, gyMZm àm¡Úmo{JH$s à^mJ, Financial Management Division, Credit Division, Integrated Risk Management Division, Information Technology Division, dgybr à^mJ, {ZarjU Ed§ boIm narjm à^mJ VWm Q—oOar Am¡a {Zdoe à^mJ Recovery Division, Inspection & Audit Division & Treasury & Ho _hm à~§YH em{_b hmoVo h¢& Cº g{_{V ~¢H _o§ B§S EEg H m`m©Ýd`Z H$s Investment Division. The Committee oversees the progress of àJ{V H$s {ZJamZr H aVr h¡ Am¡a Cº H m`m©Ýd`Z Ho O{Qb nhbwAmo§ `Wm: B§S Ind AS implementation in the Bank, and provides guidance on critical aspects of the implementation such as Ind AS technical

EEg VH ZrH$s Amdí`H Vm, àUmbr Am¡a à{HŒ `m, dm{UpÁ`H à^md, bmoJ requirements, systems and processes, business impact, people Am¡a n[a`moOZm à~§YZ na _mJ©Xe©Z àXmZ H aVm h¡& and project management. The Committee closely reviews Ama~rAmB© {ZXo©emo§ Ho AZwgma, ~¢H H mo OyZ 2018 go {Xgå~a 2018 VH B§S progress of the implementation. EEg {V_mhr àmê$n àñVwV H aZm h¡ Ed§ _mM© 2019 hoVw AmB©EZSr EEg àmê$n As per RBI direction, bank has submitted Proforma Ind-AS 31 _B© 2019 H mo àñVwV H aZm h¡& quarterly from June 2018 onwards up-to December 2018 and Ind AS Proforma for the March 2019 submission date is ~¢H B§S EEg H m`m©Ýd`Z go g§~§{YV {d{^Þ nhbyAmo§ hoVw Ama~rAmB© Am¡a 31st May, 2019. AmB©~rE go bJmVma g§nH© _o§ h¡& Bank will continue to liaise with RBI and IBA on various aspects pertaining to Ind AS implementation. 35. Adga : 35. Opportunities ~¢H$, 9972 H$m`m©Ë_H$ BH$mB`m| Ho$ gmW nyao ^maV _| CnpñWV h¡ {Og_| 2432 The Bank has pan-India presence with 9972 functional units emImE±, 3015 EQ>rE_ Am¡a 4525 emIm a{hV ~¢qH$J BH$mB`m± h¢ Omo Xoe comprising of 2432 Branches, 3015 ATMs & 4525 Branchless Ho$ g^r {hñgm| _| \¡$br hþB© h¢, {Og_| 34 A§Mb H$m`m©b` Am¡a 6 _§S>b Banking units spread across the length and breadth of the country with 34 zonal ofﬁ ces and 6 circle ofﬁ ces to oversee its H$m`m©b` h¢, Omo BgHo$ H$m`m] H$s XoIaoI H$aVo h¢& operations. J«m_rU Am¡a AY©-ehar joÌm| _| ~¢H$ H$s emImAm| H$s ~‹T>Vr CnpñW{V ~¢H$ The increased presence of the Bank’s branches in rural and H$mo H¥${f Am¡a àmW{_H$Vm joÌ, EgE_B© Am¡a IwXam joÌ _| AnZo {Zdoe H$mo semi-urban areas provides a great opportunity for the Bank for improving its exposure to Agriculture and Priority sector, gwYma H$a WmoH$ ì`mnma Ho$ gmW hr IwXam nmoQ>©\$mo{b`mo _| EH$ g§Vw{bV d¥{Õ XO© SME and Retail segment, to register a balanced growth in retail H$aZo Ho$ {bE ~‹S>m Adga àXmZ H$aVr h§¡& portfolio in tandem with the wholesale business. EH$ Cƒ j_VmdmZ H$m`©~b, ZoQ>dH©$ H$m ~ohVa àgma, CËnmXm| Am¡a godmAm| A high calibre workforce, better spread of network, unique set of products and services, competitive customer service and H$m AZyR>m goQ>, à{VñnYu J«mhH$ godm Am¡a EH$ CÞV VH$ZrH$ `wº$ dmVmdaU an advanced tech savvy environment helped the Bank to get a Zo bmoJm| Ho$ ~rM EH$ à_wI ñWmZ àmá H$aZo _| ~¢H$ H$s _XX H$s h¡& prime slot in the minds of the people. ~ohVa J«mhH$ AZw^d XoZo Ho$ {bE H$B© à{H«$`mAm| H$m {S>{OQ>brH$aU ~¢H$ H$m Digitalisation of several processes has been the focus area of the Bank in order to give a better customer experience. The Bank \$moH$g joÌ ahm h¡& ~¢H$ _| {S>{OQ>b godmAm| H$s {dñV¥V l¥§Ibm h¡, {Og_| has wide range of digital services including, Internet Banking, B§Q>aZoQ> ~¢qH$J, Ý`y _mo~mBb ~¢qH$J EpßbHo$eZ H$m°n© B©µO, EgE_Eg ~¢qH$J, New Mobile Banking application Corp EASE , SMS Banking, B©-nmg ~wH$, Q>¡~boQ> ~¢qH$J Am{X em{_b h¢& e-Pass book, Tablet banking, etc.

74 ~¢H$ Zo {\$ZmH$b gm°âQ>doà Ho$ gmW H$moa ~¢qH$J gm°ë`yeZ Ho$ ZdrZV_ d The Bank has rolled out latest, most modern version of Core g~go AmYw{ZH$ g§ñH$aU H$mo AnZm H$a EH$ àm¡Úmo{JH$s n[adV©Z H$s nhb Banking Solution with Finacle Software. This will help the Bank to meet the ever increasing needs of the customers, expand H$s h¡& Bggo ~¢H$ H$mo J«mhH$m| H$s ~‹T>Vr Oê$aVm| H$mo nyam H$aZo, AnZo H$mamo~ma its business, introduce techno-savvy products & services and H$m {dñVma H$aZo, VH$ZrH$moÝ_wI CËnmXm| Am¡a godmAm| H$mo noe H$aZo Am¡a ZE secure business of new customers. J«mhH$m| go ì`mnma àmá H$aZo _| _XX {_boJr& 36. Threats : 36. MoVmd{Z`m± : The economic situation across the globe is becoming volatile. Volatility is the new normal and the banks need to build up Xþ{Z`m â _| Am{W©H$ n[apñW{V ApñWa hmoVr Om ahr h¡& ApñWaVm hr A~ capabilities to adapt to these changing macro-economic gm_mÝ` ~mV hmo Mbr h¡ Am¡a ~¢H$m| H$mo BZ ~XbVo _¡H«$mo Am{W©H$ dmVmdaU environments and to fi nd opportunities in uncertain operating Ho$ AZwHy$b hmoZo Am¡a A{Z{üV n[aMmbZ dmVmdaU _| Adgam| H$mo ImoOZo Ho$ environment. {bE j_VmAm| H$m {Z_m©U H$aZo H$s Amdí`H$Vm h¡& Managing asset quality & resolution of stressed assets is not n[ag§n{Îm H$s JwUdÎmm Am¡a VZmdJ«ñV n[ag§n{Îm`m| Ho$ g_mYmZ H$m à~§YZ Z only critical but also has become the prime focus area for the Ho$db _hËdnyU© h¡ ~pëH$ `h ñdñW àXe©Z Ho$ ñVa H$mo gwYmaZo Am¡a àmá H$aZo banking sector to improve and achieve healthy performance Ho$ {bE ~¢qH$J joÌ Ho$ {bE à_wI \$moH$g joÌ ~Z J`m h¡& ^{dî` H$s {dH$mg levels. Amdí`H$VmAm|, ny§Or _mZX§S>m| Ho$ H$m`m©Ýd`Z, Cƒ àmdYmZm| Am{X H$mo Ü`mZ Keeping in view of the future growth requirements, _| aIVo hþE, A{V[aº$ ny§Or OwQ>mZm EH$ MwZm¡Vr hmoJr& implementation of capital norms, higher provisioning etc., raising of additional capital would be a challenge. {ZH$Q> ^{dî` _| _Ü`_ Am¡a d[að> à~§YZ ñVa na AZw^dr ì`{º$`m| H$s Retirement of experienced hands at the middle and senior godm{Zd¥{Îm Ho$ {bE {dH$ën VbmeZo H$s Amdí`H$Vm h¡, Omo erf© à~§YZ H$s management level in the near future needs to be substituted aUZr{V H$mo ì`mdhm[aH$ H$m`© `moOZmAm| _| ~XbZo Ho$ {bE _hËdnyU© h¡& which is critical for translating the top management’s strategy ~¢H$, {H$gr ^r AÝ` CÚmoJ H$s Vah, AnZo X¡Z§{XZ n[aMmbZ _| F$U, ~mOma into workable action plans. Am¡a n[aMmbZ OmopI_m| H$m gm_Zm H$aVo h¢, ã`mO AO©Z _| H$_r ~¢H$ H$s Banks, like any other industry are exposed to credit, Market bm^àXVm g§aMZm H$mo à^m{dV H$aVr h¡& and Operational Risks in the day to day operation, thinning of Interest spread affects the profi tability structure of the Bank. {d{Z`m_H$ {Xem-{ZX}em|, Zr{V`m|, gaH$ma/{Z`m_H$ Am{X Ûmam àmdYmZm| _| H$moB© ^r ~Xbmd ~¢H$ Ho$ {ZînmXZ H$mo à^m{dV H$a gH$Vm h¡& dgybr à~§YZ, Any changes in the regulatory guidelines, policies, provisions by the Government/Regulator etc., may impact the performance AmpñV Xo`Vm à~§YZ Am¡a OmopI_ à~§YZ H$s à^mderbVm Ho$ {ZînmXZ na of the Bank. Effectiveness of Recovery Management, Asset AnZo à^md hmo gH$Vo h¢& Liability Management and Risk Management may have its own Vrd« à{VñnYm© Am¡a Z`r B©H$mB`m| H$s àdoe go ì`mnma d¥{Õ, _m{O©Z Am¡a impact on performance. bm^àXVm à^m{dV hmoZo H$s g§^mdZm h¡& Acute competition & entry of new players is likely to affect business growth, margins and profi tability. 37. ^{dî` Ho$ {bE amoS> _¡n ~¢H$ H$s Ñ{ï> g_mdoer {dH$mg Am¡a ZdrZ ~¢qH$J godmAm| Ho$ {bE EH$ _m°S>b 37. Road map for the future The Bank’s vision is to Emerge as a model for inclusive growth Ho$ ê$n _| CâZo H$s h¡& H$_ bmJV Ho$ H$mgm Am¡a IwXam O_m H$m g§J«hU Am¡a and innovative banking services. Mobilizing low cost CASA IwXam, H¥${f Am¡a E_EgE_B© na Ü`mZ XoZo Ho$ gmW CÎm_ F$U {dH$mg na & retail deposits and concentrating on Quality Credit growth Ü`mZ H|${ÐV H$aZm ì`dgm` {dñVma Ho$ {bE ~¢H$ Ho$ \$moH$g joÌ hm|Jo& g_J« with focus on Retail, Agriculture & MSME would be the Bank’s ì`dgm` {dH$mg Ho$ {bE AmpñV`m| H$s JwUdÎmm Am¡a dgybr _| gwYma Ed§ focus areas for business expansion. Improving Asset Quality & recovery and expansion of digital channels would be its focused {S>{OQ>b M¡Zbm| H$m {dñVma hr Ho$pÝÐV joÌ hm|Jo& areas for overall business development. {ZXoeH$ _§Sb Ho$ {bE Am¡a CZH$r Amoa go For and on behalf of the Board of Directors

ANNUAL REPORT 2018-19 75 H$mnmo©aoQ A{^emgZ na [anmoQ© REPORT ON CORPORATE GOVERNANCE

1. ~¢H$ _o§ H$mnmo©aoQ A{êmgZ 1. Corporate Governance in the Bank The Bank believes that best Corporate Governance practices are ~¢H$ H$m `h {dœmg h¡ {H$ gwX¥‹T H$mnmo©aoQ A{êmgZ {ZdoeH$ H$s AmñWm critical to enhance and retain investor trust. As a responsible H$mo ~‹TmZo Am¡a ~ZmE aIZo Ho {bE Ah_ h¡& EH$ {µOå_oXma H$mamo~mar g§ñWm Business entity, the Bank is committed to best Corporate Ho ê$n _o§ ~¢H$; {ddoH$, IwbmnZ, {ZînjVm, ì`mdgm{`H$Vm, àH$QZ Ûmam Governance practices based on conscience, openness, fairness, nmaX{e©Vm, Z¡{VH$ àWmAmo§ Am{X na AmYm{aV Rmog H$mnmo©aoQ àWmAmo§ Ho à{V professionalism, transparency by disclosures, compliances, ethical practices etc., towards attaining performance with H${Q~Õ h¡ {Oggo B©_mZXmar VWm {Oå_oXmar Ho gmW {ZînmXZ {H$`m Om gHo , integrity and accountability, paving the way for enhancing {ZdoeH$mo§ Am¡a {hVYmaH$mo§ Ho AmË_{dœmg _o§ d¥{Õ hmo Am¡a XrKm©d{Y g\$bVm investors’ and stakeholders’ confi dence and thus ensuring long- gw{Z{üV hmo& H$mnmo©aoeZ ~¢H$ _o§ H$mnmo©aoQ A{êmgZ {d{Z`m_H$ AnojmAmo§ H$m term success. Governance at Corporation Bank is evolved by not AZwnmbZ gw{Z{üV H$aVo hwE hr Zht ~pëH$ bm^àX dmVmdaU Ho gmW J«mhH$ only ensuring compliance with regulatory requirements but also by being responsive and responsible to the needs of stakeholders H$s Amdí`H$VmAmo§ Ho AZwHyb ahH$a ^r {dH${gV {H$`m J`m h¡& J«mhH$ with rewarding environment. The Bank strives for excellence g§VwpîQ VWm eoàYmaH$mo§ Ho$ _yë` _o§ d¥{Õ Ho$ Xmohao CÔoí`mo§ Ho gmW CÎmaXm`r with the twin objective of enhancing customer satisfaction and ~¢H$ Ho ê$n _o§ `Wm Bµ©O {Xem{ZXo©emo§ H$m ^r AZwnmbZ H$aVo hwE CËH¥$îQVm hoVw stakeholders’ value i.e. responsible bank by also following EASE guidelines. Corporation Bank’s ethos, evolve with customer and AWH$ à`mg H$a ahm h¡ & ~¢H$ H$s gm_mÝ` àH¥${V J«mhH$ go {dH${gV hmoVr have the shareholder as the focal point. h¡ {OgH$m H|$Ð-q~Xw eoàYmaH$ h¡& 2. The Bank’s Philosophy 2. ~¢H$ H$m Xme©{ZH$ {gÕm§V 2.1 The Bank’s philosophy is driven by its Corporate Motto – Tag line – ‘Sarve Janah Sukhino Bhavantu’, which means 2.1 ~¢H$ H$m Xe©Z CgHo H$mnmo©aoQ AmXe© dmŠ` "gdo© OZm… gw{IZmo ^dÝVw' “Prosperity for all”, that leads to the betterment of the society AWm©V² ""g~ H$s g_¥{Õ hmo'' _o§ à{Vq~{~V hmoVm h¡ Omo g_mO Am¡a and economy. The Bank strongly believes that sound corporate AW©ì`dñWm H$s ^bmB© H$s Amoa A{^àoV h¡& ~¢H$ H$m X¥‹T {dœmg h¡ {H$ governance practices leads to the fulfi lment of its goals and gwX¥T H$mnmo©aoQ A{êmgZ àWmAmo§ go BgHo AnZo bú`mo§ H$s ny{V© Am¡a CÔoí`mo§ attainment of its objectives in a manner that adds value to its image, is benefi cial for all the stakeholders in the long run and H$s àmpßV hmo OmVr h¡ {Oggo CgH$s N{d ~ohVa hmoVr h¡, Omo AmJo MbH$a enhances its ability to secure their confi dence. Good Corporate eoàYmaH$mo§ Ho {bE {hVH$mar hmoVm h¡ Am¡a CZH$m {dœmg OrVZo H$s j_Vm Governance starts at the top and continues down the line H$mo ~‹TmVm h¡& CÎm_ H$mnmo©aoQ A{êmgZ erf© go Ama§^ hmoVm h¡ Am¡a ZrMo H$s consistently. The Board of Directors and the Management take appropriate decisions and guide the Bank in achieving the Amoa gVV ~‹TVm h¡& {ZXoeH$ _§Sb Am¡a à~§YZ Cn`wº {ZU©` boVo h¢ Am¡a highest standards of excellence. CËH¥$îQVm Ho CÀMV_ _mZH$mo§ H$mo àmßV H$aZo hoVw ~¢H$ H$m _mJ©Xe©Z H$aVo h¢& 3. Board of Directors 3.1 The Board is constituted in accordance with the Banking

3. {ZXoeH$ _§Sb Companies (Acquisition and Transfer of Undertakings) Act, 3.1 {ZXoeH$ _§S>b H$m JR>Z `Wm g§emo{YV amîQ´>r>`H¥$V ~¢H$ (à~§YZ Am¡a 1980 read with the Nationalised Banks (Management and {d{dY àmdYmZ) `moOZm, 1980 Ho$ gmW n{R>V ~¢qH$J H§$nZr (CnH«$_m| H$m Miscellaneous Provisions) Scheme, 1980 as amended from time to time and read with relevant provisions of the SEBI AO©Z Am¡a A§VaU) A{Y{Z`_, 1980 Omo {H$ g_`-g_` na g§emo{YV (LODR) Regulations, 2015 as applicable, and is represented {H$`m J`m h¡ Am¡a `Wm bmJy go~r (EbAmoS>rAma) A{Y{Z`_, 2015 Ho by persons with diversifi ed professional experience. At the g§~§{YV àmdYmZm| Ho$ AZwgma {H$`m J`m h¡ Am¡a Bg_| {d{dY ì`mdgm{`H$ end of the year 2018-19 under report, the Board comprises of 10 directors, out of which, 7 are non-executive directors and 2018-19 AZw^d dmbo ì`{º$`m| H$m à{V{Z{YËd h¡& df© H$s g_mpßV na among themselves 5 are considered as independent directors, {anmoQ© Ho AZwgma {ZXoeH$ _§Sb _o§ 10 {ZXoeH$ h¢ {OZ_o§ 7 J¡a-H$m`©nmbH$ including one Woman Independent Director. The Directors, {ZXoeH$ h¢ VWm CZ_o§ go EH$ _{hbm {ZXoeH$ g{hV 5 H$mo ñdV§Ì {ZXoeH$ hailing from different strata of society, with diverse professional _mZm J`m h¡& g_mO Ho {d{^Þ joÌmo§ go AmZodmbo ò {ZXoeH$ _§Sb H$mo, qualifi cations including set of skills in the fi eld of Banking Business Management, Finance, Treasury & Forex, Credit, ~¢qH$J ì`dgm` à~§YZ, {dÎmr`Z, Q—oOar Ed§ \$moaoŠg, G$U, _mZd g§gmYZ Human Resource Management and Information Technology à~§YZ Ed§ gyMZm àm¡Úmo{JH$s g{hV {deofkVm Am¡a {dnwb AZw^d-`wº kmZ bring in their rich experience to the Board. 15 meetings of the àXmZ H$aVo h¢& {anmoQm©YrZ {dÎm df© Ho$ Xm¡amZ {ZXoeH$ _§Sb H$s 15 ~¡RHo§ Board of Directors were held during the fi nancial year under Am`mo{OV H$s JB©§& report.

76 3.2 ~¢H$ n{aMmbZ Ho Hw$N _hËdnyU© H$m`©-joÌmo§ _o§ {deof VWm g§H|${ÐV 3.2. The Board has constituted various committees for specifi c ÑpîQ>H$moU Ho {bE Am¡a C{MV {Xem àXmZ H$aZo, à^mdr {ZJamZr H$aZo VWm and focused approach towards some of the important functional areas of the Bank’s operations, for providing proper direction, ~¢H$ Ho H$m`moª _o§ {Z`§ÌU aIZo Am¡a ZE joÌmo§ na Ü`mZ XoH$a VWm ~¢H$ Ho$ effective monitoring and controlling the affairs of the Bank, by also g_J« {dH$mg H$s Amdí`H$Vm hoVw {ZXoeH$ _§Sb Zo {d{^Þ g{_{V`mo§ H$m JRZ looking into new areas and needs of the Bank’s overall Developments. {H$`m h¡& {d{^Þ g{_{V`mo§ Ho ã`moao Am¡a df© 2018-19 Ho Xm¡amZ àËòH$ The details of various committees and the total number of meetings g{_{V Ûmam Am`mo{OV ~¡RH$mo§ H$s Hw$b g§»`m {ZåZmZwgma h¡… held by each committee during the year 2018-19 are as follows: H«$‘ g§. ~moS© H$s g{_{V`mo§ Ho$ Zm_ Am`mo{OV ~¡RH$m| H$s Hw$b g§»`m Sl. No. Name of the Committees of the Board Total No. of Meetings held 1. à~§YZ g{_{V Management Committee 13 2. boIm-narjm g{_{V Audit Committee 10 3. {d^mJr` nXmoÞ{V g{_{V Departmental Promotion Committee 2 4. eoàYmaH$ g§~§Y g{_{V Stakeholders’ Relationship Committee 4 5. gyMZm àm¡Úmo{JH$s g{_{V Information Technology Committee 9 6. Omo{I_ à~§YZ g{_{V Risk Management Committee 6 7. CÀM _yë` Ho$ H$nQmo§ H$s {ZJamZr g{_{V Committee to Monitor Large Value Frauds 6 8. eoà A§VaU g{_{V Share Transfer Committee 9 9. J«mhH$ godm g{_{V Customer Service Committee 4 10. Zm_m§H$Z g{_{V Nomination Committee 1 11. ~¢H$ Ho d[aîR H$m`©nmbH$mo§ H$s Am§V[aH$ ny±Or n`m©ßVVm _yë`m§H$Z g{_{V (AmB©grEEnr)* 4 Internal Capital Adequacy Assessment Committee of Senior Executives of the Bank (ICAAP)* 12. F$U AZw‘moXZ g{_{V (grEgr)* Credit Approval Committee (CAC)* 21 13. ‘mZd g§gmYZ g{‘{V Human Resources Committee 4 14. dgybr {ZJamZr g{‘{V (AmaE_gr) Recovery Monitoring Committee (RMC) 8 15. à{V^y{V Am~§Q>Z g{‘{V Securities Allotment Committee 5 16. àYmZ H$m`m©b` ñVar` G$U g{_{V* Head Offi ce level Credit Committee* 21 17. BamXZ MyH$H$Vm©Amo§ hoVw g_rjm g{_{V Review Committee for Willful Defaulters 2 18. emImAmo§ _o§ {S{OQb ^wJVmZ Ho àMma Ed§ H$mamo~ma d¥{Õ hoVw ~moS© H$s Cn g{_{V Sub Committee of 5 the Board for Digital Payments Promotion & Business Promotion in Branches’ * ^m.{a.~¢./gaH$mar {ZXoe Ho AZwgma Bg g{_{V _o§ Hw$N gXñ` ~¢H Ho CÀM H$m`©nmbH AWm©V², _hm à~§YH h¢& * In these committees few members are also from Top Executives of the Bank viz., General Managers as per RBI/Government directive.

3.3 ~moS© H$s g{_{V`mo§ Ho {ddaU AmJo Ho n¥îRmo§ _o§ {XE JE h¢& {ZXoeH$ 3.3 The details of Committees of the Board are provided in the following pages. The Board and its Committees met at _§Sb Am¡a CgH$s g{_{V`mo§ Zo {Z`{_V A§Vambmo§ _o§ ~¡RHo§ H$s¨ VWm Z¡{VH$ frequent intervals and guided the Bank to achieve its objectives àWmAmo§ Am¡a ì`mdgm{`H$ à~§YZ Ûmam {ZînmXZ Ho CÀM _mZX§S> gw{Z{üV in a prudent and efﬁ cient manner to ensure high standards H$aZo hoVw {ddoH$nyU© Am¡a Xj VarHo go AnZo bú`mo§ H$mo àmßV H$aZo hoVw ~¢H$ of performance through ethical practices and professional H$m _mJ©Xe©Z {H$`m& management. 3.4 Zr{V {Zê$nU, {ZînmXZ g_rjm Ed§ {díbofU VWm {Z`§ÌU O¡gr 3.4 The responsibilities such as policy formulation, performance review and analysis and controls are discharged {Oå_oXm{a`m± {ZXoeH$ _§Sb Ûmam {Z^mB© OmVr h¢& {ZXoeH$ _§Sb Zo ~¢H$ Ûmam by the Board. The Board has delegated various powers to {ZYm©{aV Zr{V`mo§ Ho AZwê$n ~¢H$ Ho H$m`©nmbH$mo§ Am¡a H$m`©nmbH$mo§ H$s the Executives and Committees of Executives of the Bank g{_{V`mo§ H$mo {d{^Þ A{YH$ma àË`m`mo{OV {H$E h¢& ^maV gaH$ma, {dÎm in consonance with the policies laid down by the Bank. The _§Ìmb` Am¡a ^maVr` {aµOd© ~¢H$ Ûmam g_`-g_` na Omar {Xem{ZXo©emo§ Ho delegated powers are periodically reviewed by the Board and necessary revision is made for effective functioning of the AZwgma {ZXoeH$ _§Sb Ûmam Eogo àË`m`mo{OV A{YH$mamo§ H$s Amd{YH$ ê$n go Bank, as per the guidelines issued from time to time by the g_rjm H$s OmVr h¡ Am¡a ~¢H$ Ho H$maJa H$m`©-g§MmbZ hoVw CZ_o§ Amdí`H$ Government of India, Ministry of Finance and the Reserve g§emoYZ {H$`m OmVm h¡& Bank of India.

ANNUAL REPORT 2018-19 77 13.5. ~¢H$ _o§H$s H$mnmo©aoQ Zr{V`mo§ A{êmgZH$s g_rjm dm{f©H$ AmYma na H$s OmVr h¡ Am¡a 3.5 The policies of the Bank are reviewed on an annual basis ~¢H$~XbVo H$m n{aX¥í` `h {dœmg Am¡a ~mOmah¡ {H _m§Jmo§gwX¥‹T HoH$mnmo©aoQ AZwê$n A{êmgZ CZ_o§ Amdí`H$ {ZdoeH AmemoYZ H$s AmñWm {H$E and necessary modifi cations are effected in tune with the changing scenario and the market demands. H$moOmVo ~‹TmZo h¢& Am¡a ~ZmE aIZo Ho {bE Ah_ h¡& EH {µOå_oXma H$mamo~mar g§ñWm 3.6 2018-19 Ho$ Xm¡amZ {ZXoeH$mo§, {ZXoeH$ _§Sb Ed§ AÝ` g{_{V H$s ~¡RH$mo§ _o§ CZH$s CnpñW{V g§~§Yr ã`moao Bg àH$ma h¡: Details of Directors, their attendance in the Board and other Committee Meetings during 2018-19 are as follows: {ZXoeH$ ‘§S>b Ed§ {ZXoeH$ ‘§S>b H$s g{‘{V(¶m|) Ho$ gXñ¶ Board and Member of the Committee(s) of the Board Cƒ ‘yë¶ Ho$ H$nQ>m| eoàYmaH$ gyMZm àm¡Úmo{JH$s H$s {ZJamZr hoVw {d^mJr¶ nXmoÞ{V {ZXoeH$ ‘§S>b à~§YZ g{‘{V boIm-narjm g{‘{V g{_{V Omo{I‘ à~§YZ g{‘{V g{‘{V g{‘{V eo¶a A§VaU g{‘{V H«$‘m§H$ {ZXoeH$ H$m Zm‘ àH$ma Management Stakeholders' Risk Management Information g{‘{V Departmental Share Transfer Board Audit Committee Committee to Sl.No. Name of the Director Type Committee Relationship Committee Technology Promotion Committee** monitor large value Committee Committee Committee frauds Am¶mo{OV* CnpñW{V Am¶mo{OV* CnpñW{V Am¶mo{OV* CnpñW{V Am¶mo{OV* CnpñW{V Am¶mo{OV* CnpñW{V Am¶mo{OV* CnpñW{V Am¶mo{OV* CnpñW{V Am¶mo{OV* CnpñW{V Am¶mo{OV* CnpñW{V Held* Attended Held* Attended Held* Attended Held* Attended Held* Attended Held* Attended Held* Attended Held* Attended Held* Attended 1 gwlr nr. dr. ^maVr à.{Z. d 4 4 3 3 bm.Z. bm.Z. bm.Z. bm.Z. 1 1 2 2 2 2 bm.Z. bm.Z. 2 2 Smt. P. V. Bharathi _w.H m.A. N.A. N.A. N.A. N.A. N.A. N.A. Since 01.02.2019 go MD & CEO 2 lr Jmonmb _wabr ^JV H$m{Z 15 14 13 12 10 10 4 4 6 6 9 8 6 6 bm.Z. bm.Z. bm.Z. bm.Z. Shri Gopal Murli Bhagat ED N.A. N.A. N.A. N.A. Since 24.08.2016 go 3 lr {~énmj {_lm H$m{Z 5 5 4 4 bm.Z. bm.Z. 1 1 2 2 3 3 2 2 bm.Z. bm.Z. bm.Z. bm.Z. Shri Birupaksha Mishra ED N.A. N.A. N.A. N.A. N.A. N.A. Since 26.12.2018 go 4 lr _Zrf JwßVm J¡H$m{Z 15 15 bm.Z. bm.Z. 10 8 bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. 6 4 2 2 bm.Z. bm.Z. H|$Ð gaH$ma Zm{_Vr NED N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. Shri Manish Gupta Central Govt. Nominee Since 16.04.2014 go 5 lr àÚwåZ Ho . OoZm J¡H$m{Z 15 6 13 5 10 3 bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. 2 2 bm.Z. bm.Z. ^m[a~¢ Zm{_Vr {ZXoeH$ NED N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. Shri Pradyumna K. Jena RBI Nominee Director Since 23.02.2015 go 6 lr XodamH$m|S>m> XrpßV{dbmg ñd{Z/ 15 15 13 13 bm.Z. bm.Z. 4 4 6 6 8 8 6 6 bm.Z. bm.Z. bm.Z. bm.Z. Shri Deverakonda Diptivilasa J¡H$m{Z N.A. N.A. N.A. N.A. N.A. N.A. Since 25.04.2016 go ID/NED 7 lr ^Jd§V amd ñd{Z/ 2 2 1 1 bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. Shri Bhagavantha Rao J¡H$m{Z N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. Since 01.03.2019 go ID/NED 8 lr Ho$. lr{Zdmg _y{V© ñd{Z/ 15 15 bm.Z. bm.Z. 10 10 bm.Z. bm.Z. 6 6 1 1 bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. Shri K. Srinivasa Murthy gbo{Z N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. Since 27.12.2017 go ID/CAD 9 lr àXrn Hw$_ma O¡Z ñd{Z/ 15 14 bm.Z. bm.Z. 10 10 4 4 6 4 9 7 6 4 bm.Z. bm.Z. 9 7 Shri Pradeep Kumar Jain eo{Z N.A. N.A. N.A. N.A. Since 08.09.2017 go ID/SD 10 gwlr {MÌm Jm¡ar bmb ñd{Z/ 15 14 13 13 bm.Z. bm.Z. 4 4 6 6 9 9 6 6 bm.Z. bm.Z. 9 9 Ms Chitra Gouri Lal eo{Z N.A. N.A. N.A. N.A. Since 08.09.2017 goo ID/SD 31.03.2019 go nyd© Omo {ZXoeH$ ~¢H$ Ho$ {ZXoeH$ ‘§S>b ‘| Wo CZH$s CnpñW{V Ho$ ã¶moao Bg àH$ma h¡ The following are the details of attendance of directors who were on the Board of the Bank prior to 31.03.2019 1 lr O` Hw _ma JJ© à.{Z. d 11 11 10 10 bm.Z. bm.Z. bm.Z. bm.Z. 5 5 7 7 4 4 2 2 7 7 Shri Jai Kumar Garg _w.H m.A. N.A. N.A. N.A. N.A. Till 31.01.2019 VH$ MD & CEO * {ZXoeH$ Ho$ H$m¶©©H$mb Ho$ Xm¡amZ Am¶mo{OV ~¡R>H$m| H$s g§»¶m Number of meetings held during the tenor of the Director ** {d{^Þ g_` A§Vamb na 15 àñVmdm| H$mo g§H$ën n[anÌ Ho$ ê$n _| eoà A§VaU g{_{V H$mo ào{fV H$aVo hþE AZw_moXZ {b`m J`m 15 Proposals were circulated as Circular Resolution at different time intervals to the Share Transfer Committee and got it approved.

78 3.6 2018-19 Ho$ Xm¡amZ {ZXoeH$mo§, {ZXoeH$ _§Sb Ed§ AÝ` g{_{V H$s ~¡RH$mo§ _o§ CZH$s CnpñW{V g§~§Yr ã`moao Bg àH$ma h¡: Details of Directors, their attendance in the Board and other Committee Meetings during 2018-19 are as follows: {ZXoeH$ ‘§S>b Ed§ {ZXoeH$ ‘§S>b H$s g{‘{V(¶m|) Ho$ gXñ¶ Board and Member of the Committee(s) of the Board dgybr H$s {ZJamZr hoVw BamXZ MyH$H$Vm©Am| hoVw ~moS>© ñVar¶ g{‘{V à{V^y{V Am~§Q>Z AÝ¶ ~moS>m] J«mhH$ godm g{‘{V g_rjm g{‘{V ‘mZd g§gmYZ g{‘{V F$U AZw‘moXZ g{‘{V Board level Customer Service Review Committee Zm‘m§H$Z g{‘{V AmB©grEEnr g{‘{V Human Resource Credit Approval g{‘{V ‘| gXñ¶Vm H«$‘m§H$ {ZXoeH$ H$m Zm‘ àH$ma Nomination Committee ICAAP Committee committee for Securities Allotment Sub Committee Sl.No. Name of the Director Type Committee for Wilful Committee Committee monitoring of Committee of the Board Defaulters Recovery Am¶mo{OV* CnpñW{V Am¶mo{OV* CnpñW{V Am¶mo{OV* CnpñW{V Am¶mo{OV* CnpñW{V Am¶mo{OV* CnpñW{V Am¶mo{OV* CnpñW{V Am¶mo{OV* CnpñW{V Am¶mo{OV* CnpñW{V Am¶mo{OV* CnpñW{V Held* Attended Held* Attended Held* Attended Held* Attended Held* Attended Held* Attended Held* Attended Held* Attended Held* Attended 1 gwlr nr. dr. ^maVr à.{Z. d 1 1 bm.Z. bm.Z. bm.Z. bm.Z. 1 1 1 1 4 4 2 2 bm.Z. bm.Z. bm.Z. bm.Z. Smt. P. V. Bharathi _w.H m.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. Since 01.02.2019 go MD & CEO 2 lr Jmonmb _wabr ^JV H$m{Z 4 3 bm.Z. bm.Z. bm.Z. bm.Z. 4 3 4 4 21 21 8 8 5 5 1 1 Shri Gopal Murli Bhagat ED N.A. N.A. N.A. N.A. Since 24.08.2016 go 3 lr {~énmj {_lm H$m{Z 1 1 bm.Z. bm.Z. bm.Z. bm.Z. 1 1 1 1 5 5 3 3 bm.Z. bm.Z. bm.Z. bm.Z. Shri Birupaksha Mishra ED N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. Since 26.12.2018 go 4 lr _Zrf JwßVm J¡H$m{Z bm.Z. bm.Z. bm.Z. bm.Z. 1 1 bm.Z. bm.Z. 4 4 bm.Z. bm.Z. 8 7 bm.Z. bm.Z. 1 1 H|$Ð gaH$ma Zm{_Vr NED N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. Shri Manish Gupta Central Govt. Nominee Since 16.04.2014 go 5 lr àÚwåZ Ho . OoZm J¡H$m{Z bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. 4 1 bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. 1 1 ^m[a~¢ Zm{_Vr {ZXoeH$ NED N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. Shri Pradyumna K. Jena RBI Nominee Director Since 23.02.2015 go 6 lr XodamH$m|S>m> XrpßV{dbmg ñd{Z/ 2 2 2 2 1 1 bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. 5 5 bm.Z. bm.Z. Shri Deverakonda Diptivilasa J¡H$m{Z N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. Since 25.04.2016 go ID/NED 7 lr ^Jd§V amd ñd{Z/ bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. Shri Bhagavantha Rao J¡H$m{Z N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. Since 01.03.2019 go ID/NED 8 lr Ho$. lr{Zdmg _y{V© ñd{Z/ 4 4 1 1 1 1 1 1 bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. 5 5 bm.Z. bm.Z. Shri K. Srinivasa Murthy gbo{Z N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. Since 27.12.2017 go ID/CAD 9 lr àXrn Hw$_ma O¡Z ñd{Z/ 4 3 1 1 bm.Z. bm.Z. 3 2 bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. 5 5 bm.Z. bm.Z. Shri Pradeep Kumar Jain eo{Z N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. Since 08.09.2017 go ID/SD 10 gwlr {MÌm Jm¡ar bmb ñd{Z/ 2 2 bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. bm.Z. 5 4 bm.Z. bm.Z. Ms Chitra Gouri Lal eo{Z N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. Since 08.09.2017 goo ID/SD 31.03.2019 go nyd© Omo {ZXoeH$ ~¢H$ Ho$ {ZXoeH$ ‘§S>b ‘| Wo CZH$s CnpñW{V Ho$ ã¶moao Bg àH$ma h¡ The following are the details of attendance of directors who were on the Board of the Bank prior to 31.03.2019 1 lr O` Hw _ma JJ© à.{Z. d 3 3 2 2 bm.Z. bm.Z. 3 3 3 3 17 17 6 6 bm.Z. bm.Z. 1 1 Shri Jai Kumar Garg _w.H m.A. N.A. N.A. N.A. N.A. Till 31.01.2019 VH$ MD & CEO * {ZXoeH$ Ho$ H$m¶©©H$mb Ho$ Xm¡amZ Am¶mo{OV ~¡R>H$m| H$s g§»¶m Number of meetings held during the tenor of the Director

ANNUAL REPORT 2018-19 79 à.{Z.Ed§ _w.H$m.A. - ^maV gaH$ma Ûmam {Z`wº à~§Y {ZXoeH$ MD & CEO – Managing Director & Chief Executive Offi cer Ed§ _w»` H$m`©nmbH$ A{YH$mar appointed by Government of India H$m.{Z. - ^maV gaH$ma Ûmam {Z`wº H$m`©nmbH$ ED – Executive Director appointed by Government of India {ZXoeH$ NED – Non-Executive Director nominated by J¡.H$m.{Z. - ^maV gaH$ma/^maVr` {aµOd© ~¢H$ Ûmam Government of India/Reserve Bank of India Zm{_V J¡a-H$m`©nmbH$ {ZXoeH$ OD – Offi cer Employee Director nominated by A.{Z. - ^maV gaH$ma Ûmam Zm{_V A{YHmar Government of India H_©Mmar {ZXoeH$ SD – Director elected by Shareholders-Non-Executive eo .{Z. - eoàYmaH$mo§ Ûmam {Zdm©{MV J¡a-H$m`©nmbH$ Director-Independent Director {ZXoeH$ - ñdV§Ì {ZXoeH$ CAD – Chartered Accountant Category Director- g.bo.{Z. - gZXr boImH$ma loUr {ZXoeH$-ñdV§Ì {ZXoeH$ Independent Director ñd.{Z. - ñdV§Ì {ZXoeH$ ID – Independent Director 3.7 df© 2018-19 Ho Xm¡amZ, {ZXoeH$ _§Sb Zo {ZåZ{b{IV {XZm§H$mo§ H$mo 3.7 During the year 2018-19, 15 Board Meetings have taken 15 dma ~¡RHo§ H$s… ({XZm§H$, _mh d df© àmê$n _o§ VmarIo§) place on the following dates: (Dates in DD-MM-YYYY format) 23.04.2018 26.05.2018 15.06.2018 29.06.2018 21.07.2018 11.08.2018 15.09.2018 29.10.2018 13.11.2018 14.12.2018 29.01.2019 11.02.2019 25.02.2019 13.03.2019 22.03.2019

3.8 {ZXoeH$ _§Sb H$m H$moB© ^r {ZXoeH$ 10 go A{YH$ g{_{V`mo§ H$m 3.8 None of the Directors on the Board is a member in more gXñ` Zht h¡ AWdm {OZ g^r H§$n{Z`mo§ _o§ do {ZXoeH$ h¢, CZ_| nm±M go than 10 committees or acts as a Chairman of more than ﬁ ve committees across all companies in which he is a Director. A{YH$ g{_{V`mo§ Ho AÜ`j Ho ê$n _o§ H$m`© Zht H$aVo h¢& (Bg CÔoí` hoVw (Only two Committees viz. the Audit Committee and the Ho$db Xmo g{_{V`mo§, AWm©V² boIm narjm g{_{V, eo`aYmaH$ g§~§Y g{_{V Stakeholders’ Relationship Committee are considered for this H$mo {b`m J`m h¡) & H$moB© ^r {ZXoeH$ ~¢H$ Ho {H$gr Xygao {ZXoeH$ H$m purpose). None of the Director is related to any other Director {aíVoXma Zht h¡& of the Bank.

3.9 A brief profi le of the Directors as on 31.03.2019 is 3.9 `Wm 31.03.2019 H$mo {ZXoeH$mo§ Ho g§{jßV àmo\$mBb ZrMo àñVwV h¡ : furnished hereunder. 3.9.1 lr_Vr nr. dr. ^maVr, à~§Y {ZXoeH$ Ed§ _w»` H$m`©nmbH$ 3.9.1 Smt. P.V. Bharathi, Managing Director & Chief A{YH$mar: Executive Offi cer: lr_Vr nr. dr. ^maVr Zo 1 \$adar 2019 H$mo H$mnmo©aoeZ ~¢H$ Ho à~§Y Smt. P.V. Bharathi had taken charge as the Managing Director {ZXoeH$ VWm _w»` H$m`©nmbH$ A{YH$mar Ho ê$n _o§ H$m`©^ma J«hU {H$`m& & Chief Executive Offi cer of Corporation Bank on 1st February, à~§Y {ZXoeH$ VWm _w»` H$m`©nmbH$ A{YH$mar H$m nX^ma J«hU H$aZo go 2019. Prior to assuming the position of Managing Director & Chief Executive Offi cer, she was Executive Director of Canara nhbo do Ho$Zam ~¢H$ H$s H$m`©nmbH$ {ZXoeH$ Wr& Bank. do {dkmZ _o§ ñZmVH$ hmoZo Ho$ gmW hr {ejmemó _o§ ^r ñZmVH$ h¢& CÝhmo§Zo H$bm She is a graduate in Science and is also a Bachelor of Education. (AW©emó) _o§ ñZmVH$moÎma {H$`m h¡& noeo go EH$ ~¢H$a hmoZo Ho ZmVo do ^maVr` She has done her Masters in Arts (Economics). On the ~¢H$a g§ñWmZ H$s à_m{UV Egmo{g`Q gXñ` (grAmB©AmB~r) h¢ Ed§ CÝhmo§Zo professional side as a Banker, she is a Certifi ed Associate of NIBM, nwUo go ~¢qH$J Ed§ \$mBZ|g _| B§Q>rJ«oQ>oS> H$mog© {H$`m h¡Ÿ& Indian Institute of Bankers and has done an integrated Course on Banking & Finance from NIBM, Pune. lr_Vr nr. dr. ^maVr 1982 _o§ Ho$Zam ~¢H$ _o§ A{YH$mar Ho ê$n _o§ ~¢qH$J CÚmoJ go Ow‹St Am¡a Xoe Ho {d{^Þ ^mJmo§ _o§ pñWV ~¢H$ H$s {d{^Þ emImAmo§ Smt. Bharathi joined the Banking Industry as an Offi cer in 1982 in Canara Bank and served in various capacities in Branches Ed§ àemg{ZH$ H$m`m©b`mo§ _o§ {d{^Þ nXmo§ na H$m`© {H$`m& _hm à~§YH$ Ho Vm¡a & Administrative Offi ces of the Bank across the length and na CÝhmo§Zo ~¢H$ _o§ _w»` Omo{I_ A{YH$mar Ho ê$n _o§ H$m`© {H$`m& dh EH$ breadth of the Country and Hong Kong. As a General Manager, AZw^dr ~¢H$a h¢ VWm CÝho§ emImAmo§, Am§M{bH$ H$m`m©b`mo§, _§Sb H$m`m©b`mo§, she was the Chief Risk Offi cer of the Bank. She is a seasoned àYmZ H$m`m©b` _o§ _mZd g§gmYZ, G$U à~§YZ, IwXam ~¢qH$J, dgybr, banker with over 37 years of varied experience in handling key

80 \$maoŠg n{aMmbZ, Omo{I_ à~§YZ, gyMZm àm¡Úmo{JH$s Am¡a àemgZ g{hV responsibilities in Branches, Regional Offi ces, Circle Offi ces and ~¢qH$J n{aMmbZ Ho {demb joÌ Ho {d{^Þ _hËdnyU© Xm{`Ëd {Z^mZo H$m Head Offi ce, covering a vast spectrum of banking operations including HR, Credit Management, Retail Banking, Recovery, 37 dfmoª H$m AZw^d h¡ & Risk Management, Information Technology, Forex Operations, Administration etc. do 15.09.2016 H$mo Ho$Zam ~¢H$ _o§ H$m`©nmbH$ {ZXoeH$ Ho Vm¡a na {Z`wº$ hwBª Ohm± dh _mZd g§gmYZ, H$mnmo©aoQ G$U, IwXam ~¢qH$J, G$U {ZJamZr, dgybr, She was appointed as Executive Director of Canara Bank on 15.09.2016, where she was responsible for many key areas Omo{I_ à~§YZ, gyMZm Ed§ àm¡Úmo{JH$s, boIm Ed§ {ZarjU, d¡{œH$ ~¢qH$J, including HR, Corporate Credit, Retail Banking, Credit Q—oOar Am{X O¡go _hËdnyU© Xm{`Ëdmo§ H$s à^mar Wr§ & Monitoring, Recovery, Risk Management, Information and Technology, Audit and Inspection, International Banking, CÝhmo§Zo AnZo H¡${aà Ho Xm¡amZ {d{^Þ _hËdnyU© nXmo§ na H$m`© {H$`m& do ~¢H$mo§ Treasury etc. Ûmam _yë`m§H$H$m| H$mo gyMr~Õ H$aZo H$s à{H«$`m Ho _mZH$sH$aU hoVw AmB©~rE She has held various important positions during the course Ho H$m`©H$mar g_yh H$s ~¢H$ Ûmam Zm{_V gXñ` Wr& do Ho$Zam ~¢H$ Ed§ CZH$s of her career. She was the Bank’s nominated member on the H$B© AZwf§Jr H§$n{Z`mo§ Ed§ EH$ g§`wº CnH«$_ - _ogg© H$_{e©`b B§Smo ~¢H$ IBA’s Working Group for Standardization of Procedure for EbEbgr, _m°ñH$mo Ho ~moS© _o§ Wr& dV©_mZ _o§ do ^maV gaH$ma Ûmam AZ{bñQ>oS> Empanelment of Valuers by Banks. She was on the Board of 23.04.2018 26.05.2018 15.06.2018 29.06.2018 21.07.2018 11.08.2018 15.09.2018 29.10.2018 H§$nZr-B§{S`m BÝ\«$mñQ—ŠMa \$mBZo§g H§$nZr {b{_QoS (AmB©AmB©Eµ\ grEb) Ho$ various subsidiaries of Canara Bank and a Joint Venture - M/s. Commercial Indo Bank LLC, Moscow. Currently, she has been 13.11.2018 14.12.2018 29.01.2019 11.02.2019 25.02.2019 13.03.2019 22.03.2019 ~moS© _o§ AZwgy{MV dm{UpÁ`H$ ~¢H$m| (Eggr~r) Ho$ Zm{_V {ZXoeH$ Ho ê$n _o§ appointed as Scheduled Commercial Banks’ (SCBs) nominee {Z`wº H$s JB©& Director on the Board of unlisted company -India Infrastructure Finance Company Limited (IIFCL) by Government of India. do EH$ Hw$eb dº$m h¢ Ed§ CÝhmo§Zo {d{^Þ go_rZmamo§, gå_obZmo§, _§Ìmb` She is an eminent speaker and has received accolades at various EEgEgAmogrEMEE_, {H«${gb Am{X Ûmam Am`mo{OV n¡Zb n{aMMm© _o§ H$B© seminars, conferences, panel discussions organized by Mint, nwañH$ma àmßV {H$E h¡& ASSOCHAM, CRISIL, etc. Smt. Bharathi is known in the industry circle for her result lr_Vr ^maVr CÚmoJ joÌ _o§ AnZr n{aUm_moÝ_wI Ed§ ì`mdhm{aH$ X¥pîQH$moU, oriented and practical approach, teamwork and quick decision. Qr_dH© VWm Ëd{aV {ZU©` Ho H$maU OmZr OmVr h¡& do Xoe Ho$ ^rVa Am¡a She has undergone many training programmes at prestigious ~mha H$s H$B© à{VpîRV g§ñWmAmo§ Ho à{ejU H$m`©H«$_mo§ _o§ em{_b ahr institutes within and outside the Country. For her achievements h¡& CÝhmo§Zo AnZo ~¢qH$J H¡${aà _o§ H$B© nwañH$ma Ed§ gå_mZ àmßV {H$E h¡§ in banking career, she has received various awards and accolades, {Og_o§ ~¢qH$J _o§ CËH¥îQVm hoVw ""Pm±±gr amZr'' Ed§ ""2017 H$m Am`©^Å which include “Jhansi Rani” award for excellence in Banking, B§QaZoeZb AdmS©'' nwañH$ma em{_b h§¡& “Aryabhata International Award of 2017” for excellence in Banking.

3.9.2 Shri Gopal Murli Bhagat, Executive Director 3.9.2 lr Jmonmb _wabr ^JV, H$m`©nmbH$ {ZXoeH$ Shri Gopal Murli Bhagat has taken charge as the Executive lr Jmonmb _wabr ^JV Zo 24 AJñV, 2016 H$mo H$mnmo©aoeZ ~¢H$ Ho H$m`©nmbH$ Director of Corporation Bank on 24th August, 2016. {ZXoeH$ Ho ê$n _o§ H$m`©^ma JŒhU {H$`m & Prior to assuming the position of Executive Director, he was General Manager at Bank of India. H$m`©nmbH$ {ZXoeH$ H$m nX g§^mbZo go nhbo do ~¢H$ Am°\ B§{S`m _o§ _hmà~§YH$ Wo& Shri Gopal Murli Bhagat is a Post Graduate, a Certifi ed Associate of Indian Institute of Bankers (CAIIB) and having a Diploma in Treasury, Investment and Risk Management. He , lr Jmonmb _wabr ^JV ñZmVH$moÎma Cnm{Y àmßV ^maVr` ~¢H$a g§ñWmZ Ho is a seasoned banker with over 34 years of rich experience in à_m{UV Egmo{gEQ (grEAmB©AmB©~r) Am¡a Q—oOar, {Zdoe Am¡a Omo{I_ à~§YZ various administrative and functional capacities at Branches, _o§ {Sßbmo_m àmßV h¢& do, emImAmo§, Am§M{bH$ H$m`m©b` Am¡a gmW hr àYmZ Zonal Offi ce and also at the Head Offi ce level. He started his H$m`m©b` ñVa na {d{^Þ àemg{ZH$ Am¡a H$m`m©Ë_H$ j_Vm _o§ 34 go A{YH$ banking career as an Offi cer in 1984 and rose to become General dfmoª Ho$ g_¥Õ AZw^d àmßV EH$ narnŠd ~¢H$a h¢& AmnZo 1984 _o§ A{YH$mar Manager – Treasury at Bank of India. He was also managing

ANNUAL REPORT 2018-19 81 Ho ê$n _o§ AnZo ~¢qH$J H¡${aà H$s ewéAmV H$s Am¡a ~¢H$ Am°\$ B§{S`m _o§ _hm & monitoring the domestic subsidiaries and joint ventures of à~§YH$-Q—oOar Ho nX na nXmoÞV hwE& AmnZo Cº ~¢H$ _o§ Kaoby AZwf§{J`mo§ Am¡a the Bank. He was also nominee director on the board of some companies. g§`wº ì`dgm`mo§ H$m à~§YZ Am¡a {ZJamZr H$s& Amn Hw$N H§$n{Z`mo§ Ho {ZXoeH$ _§Sb _o§ Zm{_Vr {ZXoeH$ ^r aho& He has held various important positions during the course of his career in view of his expertise in Retail, Credit, Treasury IwXam, G$U, Q—oOar Am¡a {dXoer H|$Ð (qgJmnwa) _o§ A§VaamîQ—r` ~¢qH$J _o§ AnZr and International banking at Overseas Centre (Singapore). He {deofkVm Ho _ÔoZµOa AmnZo AnZo H¡${aà Ho Xm¡amZ {d{^Þ _hËdnyU© nXmo§ is also a Director on the Board of unlisted company- CorpBank na H$m`© {H$`m& do AZ{bñQ>oS> H§$nZr H$mn© ~¢H$ {gŠ`y[aQrµO {b., ~¢H$ Ho nyU© Securities Ltd, a wholly owned subsidiary of the Bank. ñdm{_Ëd dmbr AZwf§Jr Ho {ZXoeH$ _§S>b _| ^r h¢& 3.9.3 Shri Birupaksha Mishra, Executive Director 3.9.3 lr {~énmj {_lm, H$m`©nmbH$ {ZXoeH Shri Birupaksha Mishra has taken charge as the Executive Director of Corporation Bank on 26th December, 2018. lr {~énmj {_lm Zo 26 {Xgå~a, 2018 H$mo H$mnmo©aoeZ ~¢H$ Ho H$m`©nmbH$ {ZXoeH$ Ho ê$n _o§ H$m`©^ma J«hU {H$`m& Shri Birupaksha Mishra is a Postgraduate and Certifi cate Associate of Indian Institute of Bankers (CAIIB). He joined lr {~énmj {_lm, ñZmVH$moÎma Cnm{Y àmßV, ^maVr` ~¢H$a g§ñWmZ Ho$ Central Bank of India as a Probationary Offi cer in the year à_m{UV Egmo{gEQ (grEAmB©AmB©~r) h¢& CÝhm|Zo 1984 _o§ n{adrjmYrZ 1984 and has an experience of more than 34 years working in A{YH$mar Ho ê$n _o§ go§Q—b ~¢H$ Am°\$ B§{S`m _o§ H$m`©^ma J«hU {H$`m Ed§ various capacities like Branch Head, Region Head, Zone Head, CZHo$ nmg emIm à_wI, joÌ à_wI, A§Mb à_wI, Ed§ _hmà~§YH$ Ho ê$n _o§ and General Manager Corporate Offi ce. He has worked in H$m°nmo©aoQ H$m`m©b` ñVa na {d{^Þ H$m`m©Ë_H$ j_Vm _o§ 34 go A{YH$ dfmoª various parts of the country and has handled Credit and Credit H$m AZw^d h¡ & AmnZo Xoe Ho {d{^Þ ^mJmo§ _o§ H$m`© {H$`m Am¡a ~¢H$ Ho G$U Monitoring portfolio of the Bank for quite a long time. Last he was heading Central Bank of India’s IT Vertical for more than Ed§ G$U {ZJamZr nmoQ©\ mo{b`mo H$mo b§~r Ad{Y VH$ g§^mbm& H$mnmo©aoeZ ~¢H$ two and half years, prior to appoint as Executive Director of _o§ H$m`©nmbH$ {ZXoeH$ H$m nX g§^mbZo go nhbo {nN>bo 2 df© Ed§ 6 _hrZo Corporation Bank. go A{YH$ g_` VH$ CÝhmo§Zo go§Q—b ~¢H$ Am°\ B§{S`m _o§ AmB©Qr d{Q©H$b H$m ZoV¥Ëd {H$`m& 3.9.4 Shri Manish Gupta (Government Nominee Director) Shri Manish Gupta has been nominated by the Central 3.9.4 lr _Zrf JwßVm (gaH$ma Zm{_Vr {ZXoeH$) Government as Government of India Nominee Director on the Board of the Bank with effect from 16th April, 2014. lr _Zrf JwßVm Or H$mo 16 Aà¡b, 2014 go ~¢H$ Ho ~moS© _o§ gaH$ma Zm{_V {ZXoeH$ Ho ê$n _o§ H|$Ð gaH$ma Ûmam Zm{_V {H$`m J`m h¡& Shri Manish Gupta is working as Director in Department of Financial Services, Ministry of Finance, Govt. of India. He lr _Zrf JwßVm {dÎmr` godmE§ {d^mJ, {dÎm _§Ìmb` _o§ {ZXoeH$ Ho ê$n _o§ is presently handling Vigilance Section and RRB Section. Shri Gupta is an IRSEE (Indian Railway Service of Electrical H$m`©aV h¡& dV©_mZ _o§ do gVH©$Vm AZw^mJ Am¡a joÌr` J«m_rU ~¢H$ Ho à^mar Engineers) offi cer and has more than 23 years of experience h¢& lr JwßVm AmB©AmaEgB©B© (B§{S`Z aobdo g{d©g Am°\ BbopŠQ—H$b B§{O{Z`g©) in the Government of India. Previously, he has held various Ho A{YH$mar h¢ Am¡a CZHo nmg ^maV gaH$ma _o§ H$m_ H$aZo H$m 23 dfmoª go important positions on Indian Railways. He holds a Bachelor’s A{YH$ H$m AZw^d h¡& Bggo nhbo CÝhmo§Zo ^maVr` aobdo _o§ {d{^Þ _hËdnyU© degree from College of Engineering and Technology, New Delhi nXmo§ na H$m`© {H$`m h¡& CÝhmo§Zo H$m°boO Am°\ B§{O{Z`qaJ EÊS QoH$ZmobmoOr, and a Master’s degree in Measurement and Instrumentation ZB© {X„r go ñZmVH$ nXdr àmßV H$s h¡ Am¡a AmB©AmB©Qr é‹SH$s go _oOa_o§Q (Gold Medalist) from IIT, Roorkee. He has also completed Am¡a B§ñQ—`w_o§QoeZ _o§ ñZmVH$moÎma (ñdU© nXH$) àmßV {H$`m h¡& BgHo gmW hr his MBA degree with specialization in Financial Management CÝhmo§Zo 2009 _o§ amîQ—r` {dÎmr` à~§YZ g§ñWmZ, \${aXm~mX go {dÎmr` à~§YZ from National Institute of Financial Management, Faridabad _o§ {deofkVm Ho gmW E_~rE H$s nXdr nyar H$s h¡& in 2009. 3.9.5 Shri Pradyumna K. Jena (RBI Nominee Director) 3.9.5 lr àÚwåZ Ho . OoZm (^m{a~¢H$ Zm{_Vr {ZXoeH$) Shri Pradyumna Kumar Jena, Chief General Manager, Reserve lr àÚwåZ Hw$_ma OoZm, _w»` _hm à~§YH$, ^maVr` {aOd© ~¢H$, ZmJnwa H$mo 23 Bank of India, Mumbai, has been nominated by the Government \$adar, 2015 go ~¢H$ Ho ~moS© _o§ ^maVr` {aOd© ~¢H$ Ho Zm{_{V Ho ê$n _o§ of India as the Reserve Bank of India nominee on the Board of ^maV gaH$ma Ûmam Zm{_V {H$`m J`m h¡& the Bank with effect from 23rd February, 2015.

82 lr OoZm, amOZr{V {dkmZ _o§ ñZmVH$moÎma h¢ Am¡a ^maVr` ~¢H$a g§ñWmZ Ho$ Shri Jena, a postgraduate in Political Science and a Certiﬁ ed à_m{UV Egmo{gEQ h¡& CÝhmo§Zo 1982 _o§ à~§YH$ Ho ê$n _o§ ^maVr` {aOd© Associate of Indian Institute of Bankers, joined Reserve Bank of India as Manager in 1982 and gained rich experience working ~¢H$ _o§ H$m`©^ma JŒhU {H$`m Am¡a {d{dY {d^mJmo§ O¡go ZH$X ({ZJ©_ {d^mJ), in various departments like Cash (Issue Department), Public OZ G$U à~§YZ, J¡a ~¢qH$J n`©dojU {d^mJ, J«m_rU Am`moOZm Am¡a G$U Debt Management, Department of Non-Banking Supervision, à^mJ _o§ H$m`© H$aHo àMwa AZw^d àmßV {H$`m h¡& Rural Planning and Credit Department. As Assistant General Manager, he served in Establishment and ghm`H$ _hm à~§YH$ Ho ê$n _o§ CÝhmo§Zo ñWmnZm Am¡a ehar ~¢H$ {d^mJ, Urban Banks Department in Bhubaneswar and on his elevation ^wdZoœa _o§ H$m`© {H$`m Am¡a Cn _hmà~§YH$ Ho ê$n _o§ nXmoÞV hmoZo na CÝho§ as Deputy General Manager in 1994, he was posted as Secretary ~¢{H$J bmoH$nmb Ho g{Md Ho ê$n _o§ {Z`wº {H$`m J`m Am¡a BgHo gmW hr to the Banking Ombudsman and also handled Department of CÝhm|Zo ~¢qH$J n`©dojU {d^mJ, EZgrgr Am¡a {dXoer _wÐm {d{Z_` {d^mJ _o§ Banking Supervision, NCC and Foreign Exchange Department. ^r H$m_ {H$`m h¡& _hmà~§YH$ Ho ê$n _o§ CÝhmo§Zo {d{dY {d^mJmo§ O¡go J¡a- As General Manager, he served in various departments like, ~¢qH$J n`©dojU {d^mJ, ~¢qH$J n`©dojU {d^mJ, J«m_rU Am`moOZm Am¡a G$U Department of Non-Banking Supervision, Department of Banking Supervision, Rural Planning and Credit Department {d^mJ Am¡a ehar ~¢H$ {d^mJ _o§ H$m`© {H$`m h¡& and Urban Banks Department.

_w»` _hmà~§YH$ Ho ê$n _o§ nXmoÞV hmoZo na, lr OoZm Zo 2012 go 2014 On his elevation as Chief General Manager, Shri Jena served in the Guwahati ofﬁ ce of the Reserve Bank of India as Regional VH$ g^r gmV CÎmar-nydr© amÁ`mo§ Ho {bE ^maVr` [aµOd© ~¢H$ Ho JwdmhmQr Director for all the seven North Eastern States from 2012 H$m`m©b` _o§ joÌr` {ZXoeH$ Ho ê$n _o§ H$m`© {H$`m Am¡a \$adar, 2014 _o§ to 2014 and in February, 2014 he was posted to the Central ZmJnwa _o§ ^maVr` {aOd© ~¢H$ Ho H|$Ðr` boIm AZw^mJ _o§ {Z`wº hwE VWm Accounts Section of Reserve Bank of India in Nagpur and 2017 _o§ CZH$s {Z`w{º H$m°nmo©aoQ godm, _w§~B© _o§ hwB©, V~ go do dhm§ dV©_mZ in 2017 he got posted to Department of Corporate Services, nX na H$m`©aV h¢& 27 _mM© 2018 go CÝhm§oZo _w§~B© Ho ~¢{H$§J bmoH$nmb-II Mumbai wherein he is continuing in his present position. From Ho$ ê$n _o§ H$m`©^ma g§^mbm Am¡a nyao _hmamîQ— Ed§ Jmodm (_w§~B© Ed§ RmUo Omo March 27, 2018, he has taken over as Banking Ombudsman-II at Mumbai and looking after complaints against banks for the {H$gr AÝ` bmoH$nmb Ho O{aE XoIm Om ahm Wm, H$mo Nmo‹SH$a) Ho ~¢H$mo§ Ed§ whole of Maharashtra and Goa (excepting Mumbai and Thane n{ü_r A§Mb hoVw O_m boZodmbr g^r EZ~rE\ gr H$o {déÕ àmßV {eH$m`Vmo§ which is looked after by another Ombudsman) and against all na H$ma©dmB© H$s & deposit taking NBFCs for the Western Zone.

OwbmB© 2017 _o§ CÝhm§oZo AmB©SrAma~rQr, h¡Xam~mX _o§ {ZXoeH$mo§ hoVw ~¢{H$§J He attended a seminar on Banking Technology for Directors at IDRBT, Hyderabad in July, 2017. VH$ZrH$s na Am`mo{OV go{_Zma _o§ ^mJ {b`m& 3.9.6 Shri K. Srinivasa Murthy (Chartered Accountant Category Director) 3.9.6 lr Ho . lr{Zdmg _y{V© (gZXr boImH$ma loUr {ZXoeH$) Shri K. Srinivasa Murthy has been nominated as part-time lr Ho$. lr{Zdmg _y{V© H$mo 27 {Xg§~a, 2017 go 3 gmb Ho {bE ~¢H$ Ho$ Non-offi cial Director under Chartered Accountant Category ~moS© _o§ gZXr boImH$ma dJ© Ho VhV A§eH$m{bH$ J¡a-Am{YH$m[aH$ {ZXoeH$ on the Board of Directors of the Bank for a period of three years with effect from 27th December, 2017. Ho$ ê$n _o§ Zm{_V {H$`m J`m h¡& He is a Chartered Accountant by profession, qualifi ed in the df© 1993 _o§ Ah©Vm àmßV, do noeo go EH$ gZXr boImH$ma h¢& gyMZm àUmbr year 1993. He is also a Certifi ed Concurrent Auditor, holds a Diploma in Information Systems Audit and has completed a boImnarjm _o§ {Sßbmo_m hmoZo Ho gmW do EH$ à_m{UV g§Jm_r boImnarjH$ ^r Certifi cation Course in International Taxation conducted by h¢ Am¡a AmB©grEAmB© Ûmam Am`mo{OV B§QaZoeZb Q¡ŠgoeZ _o§ à_mUnÌ H$mog© ICAI. ^r nyam {H$`m h¡& He has more than two decades of experience in the matters of Income Tax – Domestic as well as International Taxation. CÝho§ Am`H$a-Kaoby VWm A§VamîQ´>r` H$amYmZ XmoZm| _o§ Xmo XeH$m| go A{YH$ He renders advisory, planning and compliance services for H$m AZw^d h¡ & do Am`H$a _m_bo _o§ H$m°nmo©aoQ Ed§ J¡a H$m°nmo©aoQ g§ñWmAmo§ H$mo corporate and non-corporate entities on Income tax matters. gwPmd,Am`moOZm Ed§ AZwnmbZ godm XoVo h¢ & CÝho§ {d{^Þ àm{YH$m{a`mo§ Ho$ He has extensive experience in representing cases before various g_j _m_bmo§ H$mo àñVwV H$aZo H$m CZHo nmg ì`mnH$ AZw^d h¡ & authorities.

ANNUAL REPORT 2018-19 83 H$ånZr A{Y{Z`_, gmd©O{ZH$ joÌ CnH«$_, ~¢H$mo§, ~r_m H§$nZr H$s Ý`mg, He has also wide experience in Statutory and Internal Audit gmogmBQr Ed§ bm^ a{hV g§JRZm| Ho$ gr Ed§ EOr boImnarjm, Am`H$a of Corporates under the Companies Act, Public Sector Undertakings, Banks, C & AG Audit of Insurance Companies, A{Y{Z`_ Ho VhV H$a boImnarjm, ñQmH$ boImnarjm, g§Jm_r boImnarjm Trusts, Societies and non-profi t organisations, Tax Audits under Ed§ Am§V[aH$ boImnarjm Ho$ VhV CZHo$ nmg H$mZyZr Ed§ H$m°nmo©aoQ H$s Am§V{aH$ Income Tax Act, Stock Audits, Concurrent Audits and Internal boImnarjm H$m ì`mnH$ AZw^d h¡ & Audits. He has in depth knowledge of methods, procedures, accounting systems Audit. {dÎm df© 2018-19 Ho Xm¡amZ, CÝh| AmB©SrAma~rQr, h¡Xam~mX _o§ ~¢H$ Ho$ During the fi nancial year 2018-19, he had undergone a ~moS© gXñ`mo§ hoVw AmB©Qr Ed§ gmB~a {gŠ`y{aQr na Am`mo{OV g{Q>©{\$Ho$eZ Certifi cation Programme in IT & Cyber Security for Board àmoJ«m_ _o§ ^mJ {b`m& Members at IDRBT, Hyderabad. 3.9.7 Shri Deverakonda Diptivilasa (Non-offi cial Director) 3.9.7 lr XodamH$mo§Sm XrpßV{dbmg (J¡a-Am{YH$m[aH$ {ZXoeH$): Shri Deverakonda Diptivilasa, aged 64 years, a retired 64 lr XodamH$mo§Sm XrpßV{dbmg, Am`w df©, godm{Zd¥Îm Am`wº$, gm_m{OH$ Commissioner, Social Welfare, Government of Uttar Pradesh, H$ë`mU, CÎma àXoe gaH$ma, H$mo 25 Aà¡b, 2016 go VrZ df© H$s Ad{Y has been appointed as Part-time Non-offi cial Director on the hoVw ^maV gaH$ma Ûmam ~¢H$ Ho {ZXoeH$ _§Sb _o§ J¡a-Am{YH$m[aH$ {ZXoeH$ Board of Directors of the Bank by the Government of India, for th Ho$ ê$n _o§ {Z`wº {H$`m J`m& a period of three years with effect from 25 April, 2016. Shri Diptivilasa, is an IAS (UP Cadre-1981) and holds a lr XrpßV{dbmg EH$ AmB©EEg (`ynr Ho$Sa-1981) h¢, H$bm joÌ _o§ ñZmVH$ Bachelor of Arts and Master of Business Administration. He h¢ Am¡a H$mamo~ma àemgZ _o§ ñZmVH$moÎma h¢& CÝhmo§Zo {dH$mg AW©emñÌ _o§ has also completed Post Graduate Diploma in Development Economics (University of Manchester) and has fi rsthand ñZmVH$moÎma {S>ßbmo_m (_¢MoñQa {díd{dÚmb`) Cnm{Y àmßV H$s h¡ Am¡a G$U information of banking operations with special knowledge in àemgZ Am¡a {dH$mg AW©emñÌ _o§ {deof kmZ Ho gmW ~¢qH$J n{aMmbZ H$s Credit Administration and Development Economics. OmZH$mar àmßV H$s h¡& Shri Diptivilasa is also specialized in fi nance at IIM, Ahmedabad lr XrpßV{dbmg Or Zo AmB©AmB©E_, Ah_Xm~mX go {dÎm _o§ {deofkVm àmßV H$s with working experience as Financial Analyst in Punjab National h¡ Am¡a CZHo nmg n§Om~ ZoeZb ~¢H$ _o§ 4 dfmoª go A{YH$ H$m {dÎmr` {díbofH$ Bank for over 4 years. In his career of approximately 33 years in the civil services, he has held several key positions in the State H$m AZw^d h¡& {g{db godm _o§ bJ^J 33 dfmoª Ho AnZo H¡${aà _o§ CÝhmo§Zo amÁ` and Central Governments, including as Additional Secretary Am¡a H|$Ð gaH$ma _o§ à_wI nXH$m| H$mo YmaU {H$`m h¡, {Og_o§ Ana g{Md, ehar in the Ministry of Urban Development, Govt. of India, as {dH$mg _§Ìmb`, ^maV gaH$ma, {ZXoeH$, {X„r _o§Q—mo aob {ZJ_ {b., amîQ—r` Director of Delhi Metro Rail Corporation Ltd., National Amdmg {Z_m©U {ZJ_ {b.Am{X em{_b h¡ Am¡a {d{^Þ ñWam| na Zr{V, à~§YZ Buildings Construction Corporation Ltd. and has been exposed Ed§ H$m`m©Ýd`Z g§~§Yr _wÔm| H$m AZw^d aIVo h¢& dV©_mZ _| do {díd ~¢H$ Ho$ to policy, managerial and implementation issues at various levels. He has been engaged as short term consultant with the gmW Ob g§~§Yr _wÔm| H$s {ZJamZr Ho$ H$m`© Ho$ {bE Aënmd{Y gbmhH$ma Ho$ ê$n World Bank in the task of monitoring water related portfolio. _| H$m`© H$a aho h¢& do AZ{bñQ>oS> H§$nZr _ogg© nmdaqbŠg Q—m§g{_eZ {b{_QoS He is also on the Board of unlisted company- M/s. Powerlinks H§$nZr _o§ {ZXoeH$ ^r h¢& CÝhmo§Zo df© 2016 _o§ AmB©SrAma~rQr, h¡Xam~mX Ûmam Transmission Ltd. as a Director. He has attended a seminar on ~¢H$mo§ Ho {ZXoeH$ _§Sb Ho {ZXoeH$mo§ hoVw Am`mo{OV ~¢qH$J àm¡Úmo{JH$s na g§JmoîRr Banking Technology for Directors of Bank Boards conducted by IDRBT, Hyderabad & a training program of CAFRAL, RBI _o§ VWm ~o§Jbyé _o§ grEE\ AmaEEb, Ama~rAmB© Ho à{ejU H$m`©H«$_ _o§ ^mJ in Bengaluru in the year 2016 and a training programme on {b`m Ed§ df© 2017-18 Ho Xm¡amZ, CÝhm§oZo AmB©AmB©grE JwéJ«m_ _o§ ^y{_H$m Ed§ Role and Responsibilities – Independent Directors’ Perspectives {Oå_oXmar- ñdVÝÌ {ZXoeH$ Ho$ "n[aàoú`'- j_Vm d¥{Õ H$m`©H«$_ _o§ Am¡a _w§~B©, – Capacity Enhancement Program at IICA, Gurugram and a grEE\ AmaEEb _o§ gmB~a gwajm na H$mamo~ma ZoV¥Ëd \$moa_ (~rEbE\ ) na program on Business Leaders Forum (BLF) on Cyber Security at CAFRAL, Mumbai in 2017-18. H$m`©H«$_ _o§ à{ejU àmßV {H$`m & {dÎmr` df© 2018-19 _o§ CÝhm|Zo B§{S`Z B§ñQrQ>çyQ> Am°\ H$m°nmo©aoQ A\o$`g© During the fi nancial year 2018-19, he participated in a Workshop for Building better Boards conducted by Indian (AmB©AmB©grE) B§QaZoeZb \$mBZo§g H$m°nmo©aoeZ (AmB©Eµ\ gr)- dëS© ~¢H$ J«wn Institute of Corporate Affairs [IICA] & International Finance Ûmam ~ohVa ~moS© ~ZmZo hoVw AmB©AmB©grE _w§~B© _o§ Am`mo{OV H$m`©embm _o§ ^mJ Corporation (IFC) – World Bank Group at IICA Mumbai {b`m& (24.04.2019 go godm{Zd¥Îm) (Since retired with effect from 24.04.2019).

84 3.9.8 Shri M. Bhagavantha Rao (Non-Offi cial Director) 3.9.8 lr E_. ^Jd§V amd (J¡a-Am{YH$m[aH$ {ZXoeH$) lr E_. ^Jd§V amd, Am`w 64 df©, H$mo 01 _mM©, 2019 go EH$ df© H$s Shri M. Bhagavantha Rao, aged 64 years, has been appointed Ad{Y hoVw ^maV gaH$ma Ûmam ~¢H$ Ho {ZXoeH$ _§Sb _o§ J¡a-Am{YH$m[aH$ as Part-time Non-offi cial Director on the Board of Directors of {ZXoeH$ Ho$ ê$n _o§ {Z`wº$ {H$`m J`m& the Bank by the Government of India, for a period of one year with effect from 1st March, 2019. lr E_. ^Jd§V amd nyd© _| AJñV 2011 go 31 _B© 2014 AWm©V godm{Zd¥{Îm Shri M. Bhagavantha Rao was earlier Managing Director of H$s {V{W VH$ ñQoQ ~¢H$ Am°\ h¡Xam~mX Ho à~§Y {ZXoeH$ Ho ê$n _o§ AnZr State Bank of Hyderabad from August, 2011 and served till 31st godm Xo MwHo h¢& CÝhmo§Zo AnZm H¡${aà 1977 _o§ ^maVr` ñQoQ ~¢H$ _o§ May, 2014 i.e, the date of his superannuation. He has started n{adrjmYrZ A{YH$mar Ho$ ê$n _o§ ewê$ {H$`m& CÝhm|Zo ^maVr` ñQoQ ~¢H$ Ho his career as a Probationary Offi cer with State Bank of India in H|$Ðr` H$m`m©b`, _w§~B© _o§ _hmà~§YH$ Ho$ ê$n _o§ gmW hr ñQoQ ~¢H$ B§ñQrQ>çyQ 1977. He also served as General Manager in central offi ce of \$m°a ê$ab Sodbon_o§Q (Eg~rAmB©AmaSr), h¡Xam~mX Ho àYmZmMm`© Ho ê$n _o§ State Bank of India at Mumbai as well as Principal of State Bank ^r H$m`© {H$`m h¡& Institute for Rural Development (SBIRD), Hyderabad. CÝho§ 28 OZdar, 2016 go 27 OZdar 2019 VH$ H$s VrZ df© H$s Ad{Y He was also nominated as a Part-time Non-offi cial Director on the Board of Directors of the Vijaya Bank by the Government hoVw ^maV gaH$ma Ûmam {dO`m ~¢H$ Ho {ZXoeH$ _§Sb _o§ A§eH$m{bH$ J¡a- of India, for a period of three years from 28th January, 2016 Am{YH$m[aH$ {ZXoeH$ Ho ê$n _o§ ^r {Z`wº {H$`m J`m& do AZ{bñQoS H§$nZr to 27th January, 2019. He is also on the Board of unlisted _ogg© lr_mZ _mYdm {gÕm§VmoÞm{hZr na_mZo§Q {Z{Y {b{_QoS _o§ {ZXoeH$ ^r Company - M/s. Sriman Madhwa Sidhantonnahini Permanent h¢ & Nidhi Limited as a Director.

3.9.9 lr àXrn Hw$_ma O¡Z (eoàYmaH$ {ZXoeH$) 3.9.9 Shri Pradeep Kumar Jain (Shareholder Director) 56 dfr©` lr àXrn Hw$_ma O¡Z _w§~B© Ho {Zdmgr h¢ & CÝhmo§Zo dm{UÁ` Ed§ Shri Pradeep Kumar Jain, aged 56 years, hails from Mumbai. AW©emó _o§ ñZmVH$moÎma {H$`m h¡ Ed§ bmBgo§gYmar - ^maVr` ~r_m g§ñWm, He is a post graduate in Commerce and Economics & Licentiate-Insurance Institute of India, Part-I, CAIIB. He is grEAmB©AmB©~r, ^mJ-H$ h¢ & dV©_mZ _| do ^maVr` OrdZ ~r_m {ZJ_ _| presently Executive Director, Investment (Risk Management & H$m`©nmbH$ {ZXoeH$, {Zdoe (Omo{I_ {ZJamZr Ed§ AZwg§YmZ {d^mJ) Ho$ nX Research Department) of Life Insurance Corporation of India na h¢ Ed§ {ZH$m`m Omo{I_ à~§YZ g{hV Omo{I_ à~§YZ go Ow‹S>>o _m_bmo§ _| and is responsible for directing Risk Management related issues {ZXoe hoVw CÎmaXm`r h¡& do {d{^Þ {Zdoer H§$nZr`m| Ho$ AZwg§YmZ go Ow‹S>o H$m`© including Enterprise Risk Management. He also looks after ^r XoIVo h¢& do AmB©AmaS>rEAmB© Ho$ {Zdoe g§~§Yr {d{Z`_m| Ho$ AZwnmbZ H$mo research related assignment of various Investee Companies. He {ZJamZr ^r H$aVo h¢& CÝhm|Zo 08.09.2017 go ~¢H$ Ho$ eoàYmaH$ {ZXoeH$ H$m is monitoring for compliance to various Investment Related nX VrZ df© {XZm§H$ 07.09.2020 VH$ Ho$ {bE g§^mbm h¡& Regulations of IRDAI. He assumed offi ce as Shareholder Director of the Bank effective from 08.09.2017 for a period of Bggo nhbo à^mar d{aîR _§Sb à~§YH$ Ho ê$n _o§, _§Sb Ho$ ImVm§o H$mo g_` three years till 07.09.2020. na A§{V_ ê$n XoZo VWm boImnarjm Ho {bE {Oå_oXma Wo & CÝhmo§Zo _S§b/ Earlier as a Sr. Divisional Manager In-Charge, was responsible A§Mb/Ho$ÝÐr` H$m`m©b` ñVa na g_yh ~r_m `moOZm g{hV ~r_m nm°{b{g`mo§ for timely fi nalization and audit of Divisional Accounts. He Ho {dnUZ VWm g{d©qgJ {H«$`mH$bmnmo§ XmoZmo§ H$s {ZJamZr Ed§ {Z`§ÌU na has also worked on monitoring and controlling both marketing H$m`© {H$`m h¡ & and servicing activities of Insurance Policies including Group Insurance Policies at Divisional/Zonal/Central Offi ce level. CZHo nmg joÌr` J«m_rU ~¢H$ (AmaAma~r) (àm`moOH$-Ho$Zam ~¢H$) Ed§ OZdar 1981 go Zd§~a 1984 VH$ go§Q—b ~¢H$ Am°\ B§{S`m _o§ ^r H$m_ H$aZo He is also having experience of working in Regional Rural Bank (RRB) (Sponsor-Canara Bank) and Central Bank of India from H$m ^r AZw^d h¢ & January, 1981 to November, 1984. {dÎm df© 2018-19 Ho Xm¡amZ, CÝhmo§Zo AmB©SrAma~rQr, h¡Xam~mX _o§ ~¢H$ Ho$ During the fi nancial year 2018-19, he had undergone ~moS© gXñ`mo§ hoVw AmB©Qr Ed§ gmB~a {gŠ`y[aQ>r na Am`mo{OV g{Q©{\$Ho$eZ Certifi cation Programme in IT & Cyber Security for Board àmoJ«m_ _o§ ^mJ {b`m& Members at IDRBT, Hyderabad.

ANNUAL REPORT 2018-19 85 3.9.10 gwlr {MÌm Jm¡ar bmb (eoàYmaH$ {ZXoeH$) 3.9.10 Ms. Chitra Gouri Lal (Shareholder Director) gwlr {MÌm Jm¡ar bmb, 68 df© Am`w, CÎma àXoe Ho ZmoESm H$s {Zdmgr h¢& Ms. Chitra Gouri Lal, 68 years of age, hailing from Noida CÝhmo§Zo E_.Eñgr. ({dÎmr` AÜ``Z) _o§ ñZmVH$moÎma nXdr àmßV H$s h¡, CÝhmo§Zo in Uttar Pradesh, is a postgraduate in M.Sc (Fiscal Studies) gm_m{OH$ emó _o§ E_ {\$b {H$`m h¡, OZ àemgZ _o§ _mñQa {Sßbmo_m àmßV h¢ M.Phil in Social Science, having Masters Diploma in Public Administration and an M.Sc in Physics. She has 39 years of rich VWm {\${OŠg _o§ E_.Eg.gr. {H$`m h¡& CZHo nmg 39 dfmoª H$m àMwa AZw^d experience. She joined the Indian Customs & Central Excise 1974 h¡& BÝhmo§Zo ^maVr` gr_m Am¡a H|$Ðr` CËnmX ewëH$ _o§ _o§ H$m`©^ma Service in 1974 and rose to the level of Special Secretary to J«hU {H$`m Am¡a ^maV gaH$ma H$s {deof g{Md ~Zt Am¡a H|$Ðr` CËnmX d Government of India and Member, Central Board of Excise and gr_m ewëH$ H|$Ðr` ~moS© H$s gXñ` ~Zt Am¡a Bgr nX go Zd§~a, 2010 _o§ Customs, from which post she superannuated in November, godm{Zd¥Îm hwB©§& CZHo nmg amOñd {d^mJ Ho gmW-gmW _§Ìmb` _o§ {d{^Þ 2010. She has had a rich and varied experience at all levels in the ñVa na H$m_ H$aZo H$m àMwa Am¡a {d{dY AZw^d h¡& BgHo gmW hr CÝhmo§Zo Department of Revenue, in the fi eld as well as in the Ministry. H|$Ðr` à{V{Z`w{º Ho AmYma na dm{UÁ` _§Ìmb`, gm§p»`H$s Am¡a Am`moOZm She also worked on Central Deputation basis in the Ministry of _§Ìmb`, H¥${f _§Ìmb` _o§ _Ü`_ VWm d{aîR à~§YZ XmoZmo§ ñVa na {d{^Þ Commerce, Ministry of Statistics and Planning and Ministry of j_VmAmo§ _o§ H$m_ {H$`m h¡& AnZo H¡${aà Ho Xm¡amZ CÝhmo§Zo ~mW, {dœ{dÚmb`, Agriculture in different capacities, both at the middle, as well as `yHo _o§ à{ejU àmßV {H$`m h¡, Ohm§° go CÝhmo§Zo {dÎmr` AÜ``Z na Xygar the senior management levels. During her career she received ñZmVH$moÎmm nXdr àmßV H$s& BÝhmo§Zo Hw$N _hËdnyU© {anmoQ© ^r {bIr h¡ CZ_o§ training at the University of Bath, UK which led to a second go EH$ h¡ ^maVr` gm§p»`H$s` ì`dñWm _o§ AmYw{ZH$sH$aU Am¡a Xygar h¡ godm Masters’ degree in Fiscal Studies. She has authored several important reports including one on Modernisation of the ~r d gr Ho$Sa g_yh H$s nwZgªaMZm& BÝhmo§Zo ~¢H$ _o§ VrZ gmb H$s Ad{Y Indian Statistical System, another on Restructuring of Group B 26.08.2014 25.08.2017 Ho {bE go VH$ ~¢H$ Ho eoàYmaH$ {ZXoeH$ and C cadres of the Service. She assumed offi ce as shareholder Ho ê$n _o§ H$m`©^ma g§^mbm Am¡a 08.09.2017 go VrZ gmb H$s Ad{Y Ho$ director of the Bank effective from 26.08.2014 for a period {bE 07.09.2020 VH$ nwZ: eoàYmaH$ {ZXoeH$ Ho ê$n _o§ MwZr J`r h¢ do of three years till 25.08.2017 and re-elected with effect from AZ{bñQoS H§$nZr _ogg© ß`moaAW© BÝ\«$mñQ—ŠMa {b. Ho ~moS© _o§ nyU©H$m{bH$ 08.09.2017, as shareholder director for a period of three years till {ZXoeH$ Ho ê$n _o§ Ed§ _ogg© bmdm B§QaZoeZb {b{_QoS _o§ ñdV§Ì {ZXoeH$ 07.09.2020. She is also on the Board of unlisted Companies – Ho$ ê$n _o§ ^r aho & CÝhmo§Zo _w§~B© _o§ Zd§~a 2016 Ho Xm¡amZ ""X _oqH$J Am°\ M/s Purearth Infrastructure Ltd., as Whole Time Director E hmB© na\$m_oªg ~moS©'' na à{ejU H$m`©H«$_ _o§ ^mJ {b`m& and as an independent Director on the Board of M/s. Lava International Limited. She has attended a training program on {dÎm df© 2018-19 Ho Xm¡amZ, CÝhmo§Zo AmB©SrAma~rQr, h¡Xam~mX _o§ ~¢H$ Ho$ “The making of a high performance Board” in November 2016 ~moS© gXñ`mo§ hoVw AmB©Qr Ed§ gmB~a {gŠ`y{aQr na Am`mo{OV g{Q©{\$Ho$eZ at Mumbai. àmoJ«m_ _o§ ^mJ {b`m& During the fi nancial year 2018-19, she had undergone a Certifi cation Programme in IT & Cyber Security for Board 3.9.11 lr nr. Ho . nm§Sm (^m{a~¢H$ Zm{_Vr {ZXoeH$)(26.04.2019 Members at IDRBT, Hyderabad. go lr àÚwåZ Ho . OoZm H$s OJh) 3.9.11 Shri P. K. Panda (RBI Nominee Director) (vice Shri lr nr. Ho . nm§Sm H$mo 26 Aà¡b, 2019 go AJbo AmXoe VH$ ~¢H$ Ho ~moS© Pradyumna K. Jena w.e.f. 26.04.2019) _o§ ^maVr` {aOd© ~¢H$ Ho Zm{_{V Ho ê$n _o§ ^maV gaH$ma Ûmam Zm{_V {H$`m Shri P. K. Panda has been nominated as a Director on the Board J`m h¡& of the Bank by the Government of India representing RBI, with effect from 26th April, 2019 until further orders. lr nr. Ho$. nm§Sm ^maVr` {aOd© ~¢H$ (Ama~rAmB©) Ho$ {àpÝgnmb _w»` Shri P. K. Panda was the Principal Chief General Manager of _hmà~§YH$ Wo& dV©_mZ _o§ do go§Qa \$m°a ESdm§ñS \$mBZo§{g`b {agM© E§S bqZ©J Reserve Bank of India (RBI). He currently holds the position of (grEEµ\ AmaEEb) _w§~B©, Ho d{aîR àmoJ«m_ {ZXoeH$ Ho ê$n _o§ nXñWm{nV Senior Program Director of the Centre for Advanced Financial h¢& do H¥${f ~¢qH$J H$m°boO, ^maVr` {aO~© ~¢H$, nwUo Ho àmMm`© ^r aho & CÝho§ Research and Learning (CAFRAL), Mumbai. He was also the Ama~rAmB© _o§ H|$Ðr` ~¢qH$J Ed§ \$mBZo§{g`b goŠQa gwna{dOZ _o§ Vrg dfmoª Principal of the College of Agricultural Banking, Reserve Bank go A{YH$ H$m AZw^d h¡& CZHo nmg Ama~rAmB© _o§ H|$Ðr` ~¢qH$J Ed§ {dÎmr` of India, Pune. He has more than thirty years of experience in joÌmo§ H$s {ZJamZr H$m Vrg dfmoª H$m AZw^d h¡& central banking and fi nancial sector supervision at the RBI.

86 do Cg QmñH \$mog© Ho gXñ` Wo, {OgZo ñQ¢SS© Bpåßb_¡ZQoeZ J«wn Am°\ X He was a member of the Task Force which drafted the “Good ~ogb H${_Qr Am°Z ~¢qH$J gwna{dOZ, ~¡gb, pñdQ²Oabo§S hoVw ""JwS à¡pŠQg Practice Principles on Supervisory Colleges” for the Standard Implementation Group of the Basel Committee on Banking qà{gnëg Am°Z gwnadmBOar H$m°boO'' H$m _gm¡Xm V¡`ma {H$`m& Supervision, Basel, Switzerland. do 2012 go 2015 VH$ A§Vam©îQ—r` _wÐm {Z{Y (AmB©E_Eµ\) _o§ ao{gSo§Q He was with International Monetary Fund (IMF) as Resident ES²dmBOa \ mBZo§{g`b goŠQa gwna{dOZ Ho ê$n _o§ Ow‹So aho& do 2011-12 Ho$ Advisor Financial Sector Supervision from 2012 to 2015. He Xm¡amZ ~¢H$ Am°\ B§{S`m _o§ Ama~rAmB© Zm{_V {ZXoeH$ ^r aho& do AZ{bñQ>oS> was also a RBI nominee Director on the Board of Bank of India during 2011-12. He is also on the Board of unlisted company- H§$nZr hmo_ H«o${S>Q> B§{S>`m \$mBZ|g àm.{b. _| {ZXoeH$ WoŸ& Home credite India Finance Private Limited.

3.9.12 `Wm 31.03.2019 H$mo J¡a-H$m`©nmbH$ {ZXoeH$mo§ H$s 3.9.12 Details on Shareholding of Non-Executive Directors eoàYm{aVm H$m {ddaU as on 31.03.2019 Apart from holding of 500 Equity Shares by Ms. Chitra Gouri 500 gwlr {MÌm Jm¡ar bmb Ûmam B©p¹Qr eoà Ed§ lr àXrn Hw$_ma O¡Z Ûmam Lal and 100 Equity Shares by Shri Pradeep Kumar Jain, the 100 B©p¹Qr eoà YmaU H$aZo Ho Abmdm, `Wm 31.03.2019 H$mo AÝ` J¡a- shareholder Directors, there is no other shareholding by other H$m`©nmbH$ {ZXoeH$mo§ Ûmam H$moB© AÝ` eoà YmaU Zht {H$`m J`m h¡& non-executive directors as on 31.03.2019. 4. Committees of the Board 4. {ZXoeH$ _§Sb H$s g{_{V`m§ 4.1 Audit Committee of the Board 4.1 {ZXoeH$ _§Sb H$s boImnarjm g{_{V The formation and functioning of Audit Committee of the ~moS© H$s boImnarjm g{_{V (Egr~r) H$m JRZ Am¡a n{aMmbZ ~¢H$ hoVw bmJy Board (ACB) is governed by the directives of Reserve Bank gr_m VH$ go~r (gyMr~Õ Xo`Vm Am¡a Amdí`H$ àH$QZ) Ho {d{Z`_ 17 go of India, guidelines of Ministry of Finance, Government of 27 VH$ n{RV ^maVr` {aµOd© ~¢H$ Ho {ZXoemo§, {dÎm _§Ìmb`, ^maV gaH$ma India and read with Regulations 17 to 27 of the SEBI (Listing Ho {Xem{ZXoemo§ Ûmam em{gV hmoVm h¡& _§Sb H$s boImnarjm g{_{V ~¢H$ _o§ Obligations and Disclosure Requirements) Regulations, 2015 to the extent applicable to the Bank. The ACB provides directions g§nyU© boImnarjm H$m`©, {Og_o§ ~¢H$ Ho ^rVa H$m Am§V{aH$ boImnarjm VWm and also oversees the operations of the total audit function in {ZarjU H$m Am`moOZ, n{aMmbZ Am¡a JwUdÎmm {Z`§ÌU H$m`© gpå_{bV h¡, the Bank comprising the organisation, operationalisation and H$mo {ZXo©eZ àXmZ H$aZo Ho Abmdm n{aMmbZ H$m n`©dojU ^r H$aVr h¡ Am¡a quality control of internal audit and inspection within the Bank ~¢H$ Ho gm§{d{YH$/~mø boIm-narjm H$m`© Am¡a ^maVr` {aµOd© ~¢H$ Ho$ and follows up the statutory/external audit of the Bank and {ZarjUmo§ H$m AZwdVr© H$m`© H$aVr h¡& inspections of Reserve Bank of India. Audit Committee reviews the fi ndings of investigation by boImnarjm g{_{V Eogo {df`mo§ _o§ Am§V{aH$ boImnarjH$mo§ Ûmam H$s JB© Om±M- the internal auditors into matters where fraud is suspected or n‹SVmb Ho {ZîH$fmoª H$s g_rjm H$aVr h¡ Ohm± H$nQ H$m g§Xoh hmoVm h¡ `m irregularity or failure of internal control systems is observed Am§V{aH$ {Z`§ÌU àUmbr H$s A{Z`{_VVm `m {d\bVm XoIr OmVr h¡ VWm and suggests strengthening of control mechanism. As regards dhm± {Z`§ÌU àUmbr H$mo A{YH$ gwX¥‹T ~ZmZo hoVw gwÂmmd XoVr h¡& Ohm± VH$ external audit, the Committee interacts with Statutory Central ~mø boImnarjm H$m g§~§Y h¡, `h g{_{V, dm{f©H$ boImo§ Am¡a {anmoQmoª VWm Auditors before the fi nalisation of the annual accounts and reports as well as quarterly fi nancial review, focusing on the {V_mhr {dÎmr` g_rjm H$mo A§{V_ ê$n XoZo go nhbo, boIm Zr{V`mo§ Am¡a H$m`©- changes in accounting policies and practices, qualifi cation in àUm{b`mo§ _o§ n{adV©Zmo§, S—mâQ boIm narjm {anmoQ© _o§ {QßnUr, boIm-_mZH$mo§ the draft Audit Report, compliance with accounting standards Am¡a ñQm°H$ EŠgMo§O/{d{YH$ AnojmAmo§ Ho$ AZwnmbZ na Ü`mZ XoVo hwE and Stock Exchange/legal requirements. gm§{d{YH$ H|$Ðr` boIm narjH$mo§ go {dMma-{d_e© H$aVr h¡& The Audit Committee of the Board, at present, comprises the following 5 Board members till 31.03.2019. They are {ZXoeH$ _§Sb H$s boIm-narjm g{_{V _o§ dV©_mZ _o§ 31.03.2019 VH$ Shri Gopal Murli Bhagat, Executive Director of the Bank, ~moS© Ho 5 gXñ` h¢& do h¢, lr Jmonmb _wabr ^JV, ~¢H$ Ho H$m`©nmbH$ (Shri Birupaksha Mishra, Executive Director has been attending {ZXoeH$, (lr {~énmj {_lm, H$m`©nmbH$ {ZXoeH$ Egr~r H$s ~¡RH$ _o§ the meetings of ACB as an invitee) Shri Manish Gupta, {Z_§{ÌV Ho ê$n _o§ ^mJ boVo aho h¢) lr _Zrf JwßVm, ^maV gaH$ma Ûmam Zm{_V Government of India Nominee Director, Shri Pradyumna K.

ANNUAL REPORT 2018-19 87 {ZXoeH$, lr àÚwåZ Ho . OoZm, ^m{a~¢ Zm{_Vr {ZXoeH$, lr Ho$. lr{Zdmg Jena ,RBI Nominee Director, Shri K. Srinivasa Murthy (since _y{V© (23.01.2018 VH$), gZXr boImH$ma àdJ© {ZXoeH$, lr àXrn Hw$_ma 23.01.2018), Chartered Accountant Category director and Shri Pradeep Kumar Jain (since 11.09.2017), Shareholder Director. O¡Z (11.09.2017 go$), eoàYmaH$ {ZXoeH$ lr Ho$. lr{Zdmg _y{V©, gZXr The Committee is chaired by Shri K. Srinivasa Murthy, CA 22.03.2019 boImH$ma àdJ© Ho {ZXoeH$, go (nyd© _o§ àXrn Hw$_ma O¡Z, Category Director, since 22.03.2019 (Vice Shri Pradeep Kumar eoàYmaH$ {ZXoeH$) Ûmam g{_{V H$s AÜ`jVm H$s OmVr h¡& go~r (gyMr~Õ Jain, Shareholder Director). As per Regulations 17 to 27 of Xo`Vm Am¡a Amdí`H$ àH$QZ) {d{Z`_, 2015 Ho {d{Z`_ 17 go 27 Ho the SEBI (Listing Obligations and Disclosure Requirements) AZwgma lr Eg. Ho . Xme, H§$nZr g{Md, ~moS© g{Mdmb` Ed§ {ZdoeH$ godm Regulations, 2015, Shri S. K. Dash, Company Secretary, Board {d^mJ, boIm narjm g{_{V Ho ^r g{Md h¢& Secretariat & Investors Services Department of the Bank is also the Secretary to ACB. 4.2 à~§YZ g{_{V 4.2 Management Committee à~§YZ g{_{V H$m JRZ amîQ—r`H¥$V ~¢H$ (à~§YZ Am¡a {d{dY àmdYmZ) The Management Committee is constituted as per the provisions `moOZm, 1980 Ho `Wm g§emo{YV àmdYmZmo§ Ho AZwgma {H$`m J`m& of the Nationalised Banks (Management and Miscellaneous 31.03.2019 H$mo g{_{V _o§ g§à{V 7 {ZXoeH$ h¢, lr_Vr nr. dr. ^maVr, Provisions) Scheme, 1980 as amended. The Committee à~§Y {ZXoeH$ d _w»` H$m`©nmbH$ A{YH$mar (01.02.2019 go, nyd©dVr© comprises of 7 directors as on 31.03.2019 under report, viz lr O` Hw$_ma JJ©), lr Jmonmb _wabr ^JV, H$m`©nmbH$ {ZXoeH$, Smt. P.V. Bharathi, Managing Director & CEO (Since lr {~énmj {_lm, H$m`©nmbH$ {ZXoeH$ (26.12.2018 go), lr àÚwåZ Ho . 01.02.2019, Vice Shri Jai Kumar Garg), Shri Gopal Murli Bhagat, Executive Director, Shri Birupaksha Mishra, Executive OoZm (^m{a~¢ Zm{_Vr {ZXoeH$), lr XodamH$mo§Sm XrpßV{dbmg (J¡a-Am{YH$m[aH$ Director (Since 26.12.2018), Shri Pradyumna K. Jena (RBI {ZXoeH$ 28.12.2017 go 24.04.2019 VH$), lr E_. ^Jd§V amd, J¡a- Nominee Director), Shri Deverakonda Diptivilasa, (Non- Am{YH$m[aH$ {ZXoeH$ (14.03.2019 go) gwlr {MÌm Jm¡ar bmb (eoàYmaH$ offi cial Director, since 28.12.2017 till 24.04.2019), Shri M. {ZXoeH$ 11.03.2019 go) & à~§Y {ZXoeH$ Am¡a _w»` H$m`©nmbH$ A{YH$mar Bhagavantha Rao, Non-Offi cial Director (Since 14.03.2019) g{_{V H$s ~¡RH$mo§ H$s AÜ`jVm H$aVo h¢& {ZXoeH$ _§Sb H$s G$U AZw_moXZ and Ms. Chitra Gouri Lal (Shareholder Director, since g{_{V Ho JRZ Ho ~mX à~§YZ g{_{V Zo EH$b CYmaH$Vm© Ho {bE 250 11.03.2019). The Managing Director & Chief Executive Offi cer Chairs the Committee Meeting. The Management Committee H$amo‹S Am¡a CYmaH$Vm© g_yh Ho {bE 500 H$amo‹S go A{YH$ Ho G$U àñVmdmo§ exercised the powers of the Board in respect of credit proposals Ho g§~§Y _o§ {ZXoeH$ _§Sb Ho A{YH$mamo§ H$m à`moJ {H$`m, Omo G$U AZw_moXZ above `250 crore for single borrower and `500 crore for group g{_{V H$mo àË`m`mo{OV A{YH$mamo§ go ~mha Wo& of borrowers, which were beyond the delegated powers of the Credit Approval Committee. 4.3 G$U AZw_moXZ g{_{V 4.3 Credit Approval Committee ^maV gaH$ma, {dÎm _§Ìmb`, {dÎmr` godmE§ {d^mJ, ZB© {X„r H$s A{YgyMZm g§X^© g§. 13/1/2006-~rAmo.1 {XZm§{H$V 31 OZdar 2012 Ûmam àmßV As per the directions of the Government of India, Ministry of Finance, Department of Financial Services, New Delhi, vide 01.03.2012 {ZXoemo§ Ho AZwgma ~¢H$ Ho {ZXoeH$ _§Sb Zo {XZm§H$ H$mo their communication reference No.13/1/2006-BO.1 dated Am`mo{OV AnZr ~¡RH$ _o§ {ZXoeH$ _§Sb H$s G$U AZw_moXZ g{_{V J{RV 31st January, 2012, the Board of the Bank at its meeting held H$s& G$U AZw_moXZ g{_{V Eogo G$U àñVmd Ho g§~§Y _o§ {ZXoeH$ _§Sb Ho$ on 01.03.2012, constituted the Credit Approval Committee A{YH$mamo§ H$m à`moJ H$aoJr Ohm± g_J« EŠgnmoµOa 250 H$amo‹S go A{YH$ Z of the Board. The Credit Approval Committee exercises the hmo& à~§Y {ZXoeH$ Ed§ _w»` H$m`©nmbH$ A{YH$mar g{hV ~¢H$ Ho$ A{YH$m{a`mo§ powers of the Board in respect of any credit proposal where H$mo àË`m`mo{OV A{YH$mamo§ go nao AmZo dmbo G$U àñVmdmo§ Am¡a {ZXoeH$ _§Sb the aggregate exposure shall not exceed `250 crore. The credit proposals which exceed such limits are being considered by the H$s à~§YZ g{_{V Ûmam {dMma {H$E Om aho G$U àñVmdmo§ na 250 H$amo‹S H$s Management Committee of the Board. In view of the above, {Z{X©îQ gr_m VH$ G$U AZw_moXZ g{_{V Ûmam {dMma {H$`m OmEJm Am¡a Eogr the Credit Approval Committee exercises the powers of the gr_m go A{YH$ Ho G$U àñVmdmo§ na {ZXoeH$ _§Sb H$s à~§YZ g{_{V Ûmam Board in respect of credit proposal where the aggregate exposure {dMma {H$`m OmEJm& Cn`w©º H$mo XoIVo hwE, G$U AZw_moXZ g{_{V Eogo G$U shall not exceed `250 crore to single borrower and `500 crore àñVmd Ho g§~§Y _o§ {ZXoeH$ _§Sb Ho A{YH$mamo§ H$m à`moJ H$aoJr Ohm± EH$b for group borrowers. The Committee is also empowered – (i) CYmaH$Vm© H$mo g_J« G$U 250 H$amo‹S go A{YH$ Z hmo VWm CYmaH$Vm© g_yh to consider loan compromise/write-off proposals including

88 hoVw 500 H$amo‹S go A{YH$ Z hmo& Cº g{_{V H$mo (i) 1.00 H$amo‹S VH$ H$m early mortality cases involving sacrifi ce up to `1.00 crore and Ë`mJ {Z{hV Abr© _m°Qm©{bQr _m_bmo§ g{hV G$U g_Âmm¡Vm/~Åo ImVo SmbZo (ii) to approve/modify/permit modifi cation/s in sanction terms in respect of sanctions accorded by the Management Committee Ho àñVmdmo§ na {dMma H$aZo VWm (ii) {ZXoeH$ _§Sb H$s à~§YZ g{_{V Ûmam of the Board and to modify the terms of sanction accorded by it. Xr JB© _§Oy{a`mo§ Ho g§~§Y _o§ AZw_moXZ H$aZo/AmemoYZ H$aZo/_§Oyar eVmoª _o§ AemoYZ/Zmo§ H$s AZw_{V XoZo VWm CZHo$ Ûmam Xr JB© _§Oyar H$s eVmoª _o§ The members of the committee are Smt. P.V. Bharathi, Managing Director & CEO (Since 01.02.2019 vice Shri Jai Kumar Garg ), AmemoYZ H$aZo H$m ^r A{YH$ma hmoJm& Shri Gopal Murli Bhagat (Executive Director), Shri Birupaksha Mishra, Executive Director (Since 26.12.2018), General Bg g{_{V Ho gXñ` h¢ – lr_Vr nr. dr. ^maVr, à~§Y {ZXoeH$ d _w»` Managers in charge of Credit Division, Financial Management H$m`©nmbH$ A{YH$mar (01.02.2019 go, nyd©dVr© lr O` Hw$_ma JJ©), lr Division and Credit Monitoring Division. The committee Jmonmb _wabr ^JV (H$m`©nmbH$ {ZXoeH$), lr {~énmj {_lm, H$m`©nmbH$ meetings are chaired by Managing Director & Chief Executive Offi cer. General Manager in charge of Agriculture and Financial 26.12.2018 {ZXoeH$ ( go), G$U à^mJ, {dÎmr` à~§YZ à^mJ Am¡a G$U Inclusion Division, General Manager, SME and Retail Lending {ZJamZr à^mJ Ho à^mar _hmà~§YH$& g{_{V H$s ~¡RH$mo§ H$s AÜ`jVm Division and General Manager, Recovery Division, also present à~§Y {ZXoeH$ Ed§ _w»` H$m`©nmbH$ A{YH$mar Ûmam H$s OmVr h¡& H¥${f Am¡a their proposals to the Committee as member whenever there is {dÎmr` g_mdoeZ à^mJ Ho à^mar _hm à~§YH$, _hm à~§YH$, EgE_B© Ed§ such proposal. IwXam G$U à^mJ Am¡a _hm à~§YH$, dgybr à^mJ ^r g{_{V Ho g_j AnZo Further to this, as per the directions dated 3rd April, 2012 àñVmd aIVo h¢& received from the Government of India, Ministry of Finance, Department of Financial Services, Credit Approval Committees BgHo Abmdm, ^maV gaH$ma, {dÎm _§Ìmb`, {dÎmr` godmE§ {d^mJ, go àmßV have been constituted at Zonal offi ce and Circle offi ce levels with effect from 1st May, 2012. These committees exercise {XZm§H$ 3 Aà¡b 2012 Ho {ZXoemo§ Ho AZwgma 1 _B©, 2012 go Am§M{bH$ sanctioning powers, which are beyond the delegated lending H$m`m©b` Am¡a _§Sb H$m`m©b` ñVa na G$U AZw_moXZ g{_{V`m± J{RV H$s powers of the Branch Managers, but are within the delegated JB© h¢& ò g{_{V`m± Eogo _§Oyar A{YH$mamo§ H$m à`moJ H$ao§Jr Omo emIm à~§YH$mo§ lending powers of the Executives heading such committees. Ho àË`m`mo{OV G$U A{YH$mamo§ go nao h¢ naÝVw Eogr g{_{V`mo§ H$s AÜ`jVm Proposals which are beyond the delegated lending powers of H$aZo dmbo H$m`©nmbH$mo§ H$mo àË`m`mo{OV A{YH$mamo§ Ho A§VJ©V h¢& Omo àñVmd the General Managers at Circle Offi ce level are being referred _§Sb H$m`m©b`mo§ Ho _hm à~§YH$mo§ H$mo àË`m`mo{OV G$U A{YH$mamo§ Ho nao h¢, to the Head Offi ce level Credit Committee/Credit Approval Committee of the Board/Management Committee of the CÝho§ àYmZ H$m`m©b` ñVar` G$U g{_{V/{ZXoeH$ _§Sb H$s G$U AZw_moXZ Board. g{_{V/à~§YZ g{_{V Ho g_j àñVwV {H$`m OmEJm& 4.4 Head offi ce-level Credit Committee 4.4 àYmZ H$m`m©b` ñVar` G$U g{_{V With a view to ensure smooth and timely decisions on Credit/ Recovery proposals, Head Offi ce Level Credit Committee G$U/dgybr àñVmdmo§ na gwMmé Am¡a gm_{`H$ {ZU©` gw{Z{üV H$aZo Ho {bE headed by the Executive Director, has been constituted at Head {XZm§H$ 27.06.2013 go àYmZ H$m`m©b` _o§ H$m`©nmbH$ {ZXoeH$ Ho AYrZ Offi ce of the Bank with effect from 27.06.2013, to consider àYmZ H$m`m©b` ñVar` G$U g{_{V J{RV H$s JB© h¡& `h g{_{V EH$b sanction of credit facilities upto `75 crore to a single borrower CYmaH$Vm© Ho _m_bo _o§ 75 H$amo‹S Am¡a CYmaH$Vm© g_yh Ho ~mao _o§ 150 and upto `150 crore to group of borrowers and approve sacrifi ce amount upto `50 lakh for sanction of compromise/write off H$amo‹S VH$ H$s G$U gw{dYmAmo§ H$s _§Oyar Am¡a g_Pm¡Vm/~Åm ImVo SmbZo dmbo proposals. The members of the Committee are Shri Gopal ImVmo§ _o§ 50 bmI VH$ H$s Ë`mJ am{e H$s _§Oyar na {dMma H$aoJr& lr Jmonmb Murli Bhagat, Executive Director, Shri Birupaksha Mishra, _wabr ^JV, H$m`©nmbH$ {ZXoeH$, lr {~énmj {_lm, H$m`©nmbH$ {ZXoeH$ Executive Director (Since 26.12.2018) and General Managers (26.12.2018 go) Am¡a G$U, {dÎm, Omo{I_ à~§YZ Am¡a G$U {ZJamZr, in charge of Credit, Finance, Credit Monitoring, Retail Lending IwXam G$U à^mJ Am¡a àmW{_H$Vm àmßV joÌ {dH$mg Ho à^mar _hm à~§YH$ Division and Development of Priority Sector, constitute the Cº g{_{V Ho gXñ` h¢& dgybr Ed§ H¡$ßg Ho _hm à~§YH$, CZHo à^mJ go members of the committee. General Managers in charge of Recovery and CAPS, are also present at the committee meeting g§~§{YV H$m`©gyMr na {dMma H$aVo g_` g{_{V H$s ~¡RH$ _o§ CnpñWV hmo§Jo& when agendas pertaining to their division are presented. Credit àYmZ H$m`m©b` ñVar` G$U g{_{V H$mo {d{Z{X©îQ G$U gr_mAmo§ go A{YH$ proposals beyond the stipulated credit limits of the Head Offi ce am{e Ho G$U àñVmdmo§ H$mo ~moS© H$s G$U AZw_moXZ g{_{V Ho g_j aIm level Credit Committee shall be referred to the Credit Approval OmEJm& Committee of the Board.

ANNUAL REPORT 2018-19 89 4.5 {d^mJr` nXmoÞ{V g{_{V 4.5 Departmental Promotion Committee The Departmental Promotion Committee comprises of 3 {d^mJr` nXmoÞ{V g{_{V _o§ 3 {ZXoeH$ AWm©V² lr_Vr nr. dr. ^maVr, à~§Y Directors, viz. Smt. P. V. Bharathi (since 01.02.2019 vice {ZXoeH$ d _w»` H$m`©nmbH$ A{YH$mar (01.02.2019 go, nyd©dVr© lr O` Shri Jai Kumar Garg) Managing Director & Chief Executive Hw$_ma JJ©), lr _Zrf JwßVm, gaH$ma Zm{_Vr {ZXoeH$ Am¡a lr àÚwåZ Ho$. Ofﬁ cer, Shri Manish Gupta, Government of India nominee OoZm, ^m{a~¢ Zm{_Vr {ZXoeH$ gXñ` h¢& `h g{_{V ~¢H$ Ho AZwemgZ g§~§Yr Director and Shri Pradyumna K. Jena, RBI Nominee Director as members. The Committee oversees the disciplinary cases in 2016-17 _m_bmo§ Am¡a {dÎm df© VH$ hwB© nXmoÞ{V`mo§ _o§ ~¢H$ Ho doVZ_mZ the Bank and promotions of top executives of the Bank from VI go doVZ_mZ VII Ho CÀM H$m`©nmbH$mo§ H$s nXmoÞ{V`mo§ H$s XoIaoI H$aVr scale VI to scale VII till FY 2016-17 promotions. The Managing h¡& à~§Y {ZXoeH$ Am¡a _w»` H$m`©nmbH$ A{YH$mar g{_{V H$s ~¡RH$mo§ H$s Director & Chief Executive Ofﬁ cer chairs the Committee AÜ`jVm H$aVo h¢& Meetings.

4.6 Stakeholders’ Relationship Committee 4.6 eoàYmaH$ H$m g§~§Y g{_{V As per Regulation 20 of the SEBI (Listing Obligations and go~r (gyMr~Õ Xo`VmE§ Am¡a Amdí`H$ àH$QZ) {d{Z`_, 2015 Ho {d{Z`_ Disclosure Requirements) Regulations, 2015, a “Stakeholders 20 Ho AZwgma J¡a-H$m`©nmbH$ {ZXoeH$ H$s AÜ`jVm _o§ Am¡a Eogo AÝ` Relationship Committee” of the Board was constituted under gXñ`mo§ Ho$ VhV eoàYmaH$, {S~o§Ma YmaH$ Am¡a AÝ` gwajm YmaH$ H$s the Chairmanship of a non-executive director and such other members as approved by the Board, to look into the redressal {eH$m`Vmo§ Ho {ZdmaU na Ü`mZ XoZo Ho {bE ~moS© H$s EH$ ""eoàYmaH$ g§~§Y of grievances of shareholders, debenture holders and other g{_{V'' H$m JRZ {H$`m J`m Wm& g§à{V g{_{V _o§ 5 gXñ` h¢ AWm©V² lr security holders. The Committee comprises of 5 members Jmonmb _wabr ^JV - H$m`©nmbH$ {ZXoeH$, lr {~énmj {_lm, H$m`©nmbH$ viz., Shri Gopal Murli Bhagat, Executive Director, Shri {ZXoeH$ (26.12.2018 go), lr XodamH$mo§Sm XrpßV{dbmg (J¡a-Am{YH$m[aH$ Birupaksha Mishra, Executive Director (Since 26.12.2018), {ZXoeH$), lr àXrn Hw$_ma O¡Z Am¡a gwlr {MÌm Jm¡ar bmb, eoàYmaH$ Shri Devarakonda Diptivilasa (Non-offi cial Director), Shri Pradeep Kumar Jain and Ms. Chitra Gouri Lal, Shareholder {ZXoeH$ g{_V Ho gXñ` h¢& gwlr {MÌm Jm¡ar bmb, eoàYmaH$ {ZXoeH$ Directors. Ms. Chitra Gouri Lal, Shareholder Director, chairs g{_{V H$s ~¡RH$mo§ H$s AÜ`jVm H$aVr h¢& go~r (gyMr~Õ Xo`VmE§ Am¡a the Committee Meetings. In terms of Regulation 6 of the SEBI Amdí`H$ àH$QZ) {d{Z`_, 2015 Ho {d{Z`_ 6 Ho AZwgma lr Eg.Ho$. (Listing Obligations and Disclosure Requirements) Regulations, Xme, ~¢H$ Ho ~moS© g{Mdmb` VWm {ZdoeH$ godm {d^mJ Ho à^mar H§$nZr 2015, Shri S. K. Dash, Company Secretary in charge of Board g{Md go~r (gyMr~Õ Xo`VmE§ Am¡a Amdí`H$ àH$QZ) {d{Z`_, 2015 Ho Secretariat and Investor Services Department of the Bank is the Compliance Offi cer for the purpose of complying with various àmdYmZmo§ Ho$ AZwnmbZ Ho CÔoí` hoVw AZwnmbZ A{YH$mar h¢& provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Bg df© Ho Xm¡amZ eoàYmaH$mo§ go 716 {eH$m`Vo§ àmßV hwB©§& VWm{n, 31 _mM©, 2019 H$s pñW{V Ho AZwgma CZ_o§ H$moB© ^r {eH$m`V {ZnQmZ Ho {bE During the year, 716 grievances were received from shareholders. st b§{~V Zht Wr& `{X eoàYmaH$ go A{V{aº OmZH$mar H$s Amdí`H$Vm Zht However, as on 31 March, 2019, none of them was pending for redressal. Grievances are normally resolved within a period hmoVr h¡ Vmo gm_mÝ`V… gmV {XZmo§ H$s Ad{Y Ho ^rVa {eH$m`Vmo§ H$m {ZnQmZ of seven days, unless further information from the shareholder {H$`m OmVm h¡& df© 2017-18 H$s VwbZm _o§, àmßV, {ZnQm`r JB© Am¡a df© is required. A table showing Grievances received, disposed off 2018-19 Ho A§V _o§ b§{~V {eH$m`Vmo§ H$mo Xem©Zo dmbr Vm{bH$m ZrMo and pending as at the end of the year 2018-19 vis-a-vis 2017-18 àñVwV h¡& is furnished hereunder:

90 2018-19 2017-18 31.03.19 31.03.17 31.03.18 {eH$m`Vmo§ H$s àH¥${V H$mo b§{~V Nature of Grievances àmßV {ZnQm`r H$mo b§{~V Pending as on àmßV {ZnQm`r H$mo b§{~V Received Disposed Pending Received Disposed Pending as on 31.03.19 31.03.17 as on 31.03.18

YZ dmngr/bm^m§e H$s AàmpßV 169 169 – – 280 280 – Non-receipt of refund/dividend

eo`a à_mUnÌ H$s AàmpßV 53 53 – – 10 10 – Non-receipt of share certiﬁ cate

A§VaU hoVw ôOo JE eoà à_mUnÌ H$s AàmpßV Non-receipt of share certifi cate sent for 423 423 – – 150 150 – transfer/duplicate

eo¶a à‘mUnÌ Imo OmZm 68 68 – – 38 38 – Loss of share certiﬁ cate

{d{dY/Miscellaneous –– – ––– –

ñQmH$ EŠgMo§Om| Ho$ µO[aE àmßV 0 0 – – 03 03 – Recd. through Stock Exchanges

go~r, ñH$mog© Ho$ µO[aE àmßV 03 03 – – 01 01 – Recd. through SEBI, SCORES

Hw$b/Total 716 716 – – 482 482 –

Ho` Ú{nê$n {ZdoeH$_o§ ~¢H ;{eH$m`Vmo§ {ddoH , HoIwbmnZ, {ZdmaU {ZînjVm,hoVw g§à{V {b`mì`mdgm{`H OmZodmbm Vm, Am¡gVàH QZ g_`Ûmam Though the average time taken for redressal of investor nmaX{e©Vm,`w{º-g§JV Z¡{VHh¡, {\$a àWmAmo§ ^r ~¢H$, Am{X {ZdoeH$ na AmYm{aV {eH$m`Vmo§ Rmog H$mH$mnmo©aoQ CÎma àWmAmo§XoZo _o§ CÀMVaHo à{V grievances at present is reasonable, to set higher standards in H_mZH$mo§ {Q~Õ H$moh¡ {OggoñWm{nV B©_mZXmar H$aZo hoVw VWm g_` {Oå_oXmar A§Vamb Ho gmWH$mo Am¡a{ZînmXZ ^r KQmZo{H$`m HoOm gHo{bE , responding to the investor grievances, Bank has been consistently striving for reducing the time lag. Investor grievances received {ZdoeH$mo§à`mgaV h¡&Am¡a go~r {hVYmaH$mo§ Ho g_{n©V Ho AmË_{dœmg do~gmB©Q ñH$mog© _o§ d¥{Õ Ho hmo _mÜ`_ Am¡a XrKm©d{Y go àmßV g\{ZdoeH$ bVm gw{Z{üV hmo& H$mnmo©aoeZ ~¢H _o§ H$mnmo©aoQ A{êmgZ {d{Z`m_H AnojmAmo§ H$m through the SEBI’s dedicated website SCORES, have also been {eH$m`Vmo§ H$m BboŠQ—m{ZH$ ê$n go {ZamH$aU {H$`m J`m h¡& redressed electronically, promptly. AZwnmbZ gw{Z{üV H aVo hwE hr Zht ~pëH bm^àX dmVmdaU Ho gmW J«mhH H$s Amdí`H VmAmo§ Ho AZwHy b ahH a ^r {dH {gV {H$`m J`m h¡& J«mhH 4.7 gyMZm àm¡Úmo{JH$s g{_{V 4.7 Information Technology Committee g§VwpîQ VWm eoàYmaH$mo§ Ho _yë` _o§ d¥{Õ H aZo Ho Xmohao CÔoí`mo§ Ho gmW ~¢H To keep pace with the fast changing business dynamics and CËH¥VoµOr îQVmgo ~XbVo hoVw AWH H$mamo~ma à`mg n{aX¥í` H a ahmAm¡a h¡ J«mhH$mo§& ~¢H H$s gm_mÝÀmdí`H$VmAmo§ àH¥ {V HoJ«mhH gmW go customer needs, the Bank has been taking up various IT initiatives {dHH$§Yo {gVgo H§$Ym hmoVr {_bmH$ah¡ {OgH$m AmJo Ho§ Ð-q~Xw ~‹TZo eoàYmaHHo {bE h¡&~¢H$ B©-JdZoªg Ho A§VJ©V under the umbrella of e-governance to enhance customer 2{d{dY. ~¢H$ gyMZm H$m Xme©{ZH$àm¡Úmo{JH$s {gÕm§V nhb H$aVm ahm h¡& BZ n{a`moOZmAmo§ H$m Ëd{aV convenience. To guide the Bank for accelerated implementation 2H$m`m©Ýd`Z.1 ~¢H H$m H$aZo Xe©Z VWm CgHo J«mhH$ H$mnmo©aoQ gw{dYm AmXe© Ed§ dmŠ` g§VwpîQ "gdo© H$mo OZm… ~‹TmZo gw{IZmo H$s X¥pîQ^dÝVw' go of these projects and also to explore the possibility of providing AWm©V²ZdmoÝ_ofr ""g~ àm¡Úmo{JH$s H$s g_¥{ÕAmYm{aV hmo'' CËnmX _o§ à{Vq~{~VàXmZ H$aZo hmoVmH$s g§^mì`VmAmo§h¡ Omo g_mO H$m Am¡anVm innovative technology based products and services that perfectly AW©ì`dñWm H$s ^bmB© H$s Amoa A{^àoV h¡& ~¢H H$m X¥‹T {dœmg h¡ {H gwX¥T suit the requirements of the customers; Information Technology bJmZo hoVw ~¢H$ H$m _mJ©Xe©Z H$aZo Ho$ {bE gyMZm àm¡Úmo{JH$s g{_{V H$m JRZ Committee has been constituted. H$mnmo©aoQ{H$`m J`m A{êmgZ h¡& àWmAmo§ go BgHo AnZo bú`mo§ H$s ny{V© Am¡a CÔoí`mo§ H$s àmpßV hmo OmVr h¡ {Oggo CgH$s N{d _o§ d¥{Õ hmoVr h¡, Omo AmJo MbH a The Committee comprises of 6 members viz., Smt. P.V. eoàYmH$mo§ Ho {bE {hVH$mar hmoVm h¡ Am¡a CZH$m {dœmg OrVZo H$s j_Vm H$mo Bharathi (Managing Director & Chief Executive Offi cer, Bg g{_{V _o§ 6 gXñ` h¢ AWm©V² lr_Vr nr. dr. ^maVr, (à~§Y {ZXoeH$ ~‹TmVm h¡& CÎm_ H$mnmo©aoQ A{êmgZ erf© go Ama§^ hmoVm h¡ Am¡a ZrMo H$s since 01.02.2019 vice Shri Jai Kumar Garg), Shri Gopal Murli d _w»` H$m`©nmbH$ A{YH$mar 01.02.2019 go, nyd©dVr© lr O` Hw$_ma Amoa gVV ~‹TVm h¡& {ZXoeH _§Sb Am¡a à~§YZ Cn`wº {ZU©` boVo h¢ Am¡a Bhagat (Executive Director), Shri Birupaksha Mishra (Executive JJ©),CËH¥ îQVm lr HoJmonmb CÀMV_ _wabr _mZH$mo§ ^JV H$mo (H$m`©nmbH$ àmßV H aZo hoVw{ZXoeH$), ~¢H H$m lr_mJ©Xe©Z {~énmj H aVo{_lm h¢& Director, since 26.12.2018), Shri K. Srinivasa Murthy, (H$m`©nmbH$ {ZXoeH$ 26.12.2018 go), lr Ho$. lr{Zdmg _y{V© (gZXr Chartered Accountant Category Director (since 02.03.2019 boImH$ma àdJ© {ZXoeH$ (02.03.2019 go), lr XodamH$mo§Sm XrpßV{dbmg, vice Shri Deverakonda Diptivilasa Non-offi cial Director),

ANNUAL REPORT 2018-19 91 J¡a-Am{YH$m[aH$ {ZXoeH$, lr àXrn Hw$_ma O¡Z Am¡a gwlr {MÌm Jm¡ar bmb Shri Pradeep Kumar Jain and Ms. Chitra Gouri Lal, Shareholder eoàYmaH$ {ZXoeH$ g{_{V Ho gXñ` h¢& lr_Vr nr. dr. ^maVr, à~§Y Directors, are the members of the Committee. Smt. P.V. Bharathi, Managing Director & Chief Executive Offi cer of the {ZXoeH$ Am¡a _w»` H$m`©nmbH$ A{YH$mar g{_{V H$s ~¡RH$mo§ H$s AÜ`jVm Bank chairs the Committee Meetings. H$aVr h¢& 4.8 Risk Management Committee 4.8 Omo{I_ à~§YZ g{_{V The Risk Management Committee of the Board was formed to {ZXoeH$ _§Sb H$s Omo{I_ à~§YZ g{_{V n`m©ßV Om±M Am¡a g§VwbZ, nmaX{e©Vm provide adequate checks and balances, transparency and Am¡a àH$QZ, gwX¥T Omo{I_ à~§YZ àUm{b`m±, Omo{I_ {Z`§ÌU nÕ{V`m±, disclosures, robust risk management systems, risk containment procedures, early warning systems and prompt corrective erK« MoVmdZr àUm{b`m± Am¡a MyH$ go ~MZo Ho {bE Vwa§V gwYmamË_H$ actions to avoid default. The Committee comprises of 7 H$ma©dmB`m± H$aZo Ho {bE J{RV H$s J`r Wr& Bg g{_{V _o§ 7 {ZXoeH$ h¢ Directors and is chaired by Smt. P.V. Bharathi, Managing Am¡a lr_Vr nr. dr. ^maVr, à~§Y {ZXoeH$ d _w»` H$m`©nmbH$ A{YH$mar Director & Chief Executive Offi cer (since 01.02.2019 vice (01.02.2019 go, nyd©dVr© lr O` Hw$_ma JJ©) BgH$s AÜ`jVm H$aVr h¢& Shri Jai Kumar Garg). The other members of the Committee g{_{V Ho AÝ` gXñ` h¢, lr Jmonmb _wabr ^JV, ~¢H$ Ho H$m`©nmbH$ are Shri Gopal Murli Bhagat, Executive Director of the Bank, Shri Birupaksha Mishra, Executive Director of the Bank (since 26.12.2018 {ZXoeH$, lr {~énmj {_lm, ~¢H$ Ho H$m`©nmbH$ {ZXoeH$ ( go) 26.12.2018), Shri K. Srinivasa Murthy, Chartered Accountant lr Ho$. lr{Zdmg _y{V©, gZXr boImH$ma {ZXoeH$, lr XodamH$mo§Sm XrpßV{dbmg, Category Director, Shri Deverakonda Diptivilasa, Non-offi cial J¡a-Am{YH$m{aH$ {ZXoeH$, lr àXrn Hw$_ma O¡Z, VWm gwlr {MÌm Jm¡ar bmb Director, Shri Pradeep Kumar Jain and Ms. Chitra Gouri Lal, eoàYmaH$ {ZXoeH$& Shareholder Directors.

4.9 Committee to Monitor Large Value Frauds 4.9 CÀM _yë` Ho H$nQmo§ H$s {ZJamZr g{_{V With a view to closely monitor frauds involving amounts of EH$ H$amo‹S énE Ed§ A{YH$ Ho H$nQmo§ H$s JhZ {ZJamZr H$aZo Ho {bE ^maVr` Rupees one crore and above, a Committee of the Board to {aµOd© ~¢H$ Ho {Xem{ZXo©emo§ Ho$ AZwgma CÀM _yë` Ho$ H$nQmo§ H$s {ZJamZr Monitor Large Value Frauds has been constituted in terms of the hoVw ~moS© H$s EH$ g{_{V H$m JRZ {H$`m J`m& Bg g{_{V _o§ 7 {ZXoeH$ h¢ guidelines of Reserve Bank of India. The Committee comprises of 7 Board Directors as members and is chaired by Smt. P.V. Am¡a lr_Vr nr. dr. ^maVr, à~§Y {ZXoeH$ d _w»` H$m`©nmbH$ A{YH$mar Bharathi, Managing Director & Chief Executive Offi cer (since (01.02.2019 go, nyd©dVr© lr O` Hw$_ma JJ©) BgH$s AÜ`jVm H$aVo h¢& 01.02.2019 vice Shri Jai Kumar Garg). The other members of g{_{V Ho$ AÝ` gXñ` h¢, lr Jmonmb _wabr ^JV, ~¢H$ Ho$ H$m`©nmbH$ the Committee are Shri Gopal Murli Bhagat, Executive Director {ZXoeH$, lr {~énmj {_lm, ~¢H$ Ho H$m`©nmbH$ {ZXoeH$ (26.12.2018 go), of the Bank, Shri Birupaksha Mishra, Executive Director of the lr _Zrf JwßVm, gaH$ma Zm{_Vr {ZXoeH$, lr XodamH$mo§Sm XrpßV{dbmg, Bank (since 26.12.2018), Shri Manish Gupta, Government of India Nominee Director, Shri Deverakonda Diptivilsasa, J¡a-Am{YH$m[aH$ {ZXoeH$, lr àXrn Hw$_ma O¡Z VWm gwlr {MÌm Jm¡ar bmb, Non-offi cial Director, Shri Pradeep Kumar Jain and Ms. Chitra eoàYmaH$ {ZXoeH$Ÿ& Gouri Lal, Shareholder Directors.

4.10 eoà A§VaU g{_{V 4.10 Share Transfer Committee eoàmo§ Ho$ A§VaU, ar_o{Q{a`bmBOoeZ VWm ‹SwpßbHo$Q eoà à_mUnÌmo§ H$mo To meet the requests of the shareholders for transfer of shares, rematerialisation and issuance of duplicate share certifi cates, Omar H$aZo Ho g§~§Y _o§ eoàYmaH$mo§ Ho AZwamoYmo§ na {dMma H$aZo Ho CÔoí` a “Share Transfer Committee” of the Board was constituted go àM{bV {Z`_mo§ Ho AZwê$n {ZXoeH$ _§Sb Zo ~moS© H$s EH$ "eoà A§VaU by the Board of Directors in line with the extant regulations. g{_{V' J{RV H$s h¡& g{_{V _o§ 3 gXñ` h¢ AWm©V² lr_Vr nr. dr. ^maVr, The Committee comprises of 3 members viz., Smt. P.V. à~§Y {ZXoeH$ d _w»` H$m`©nmbH$ A{YH$mar (01.02.2019 go nyd©dVr© Bharathi, Managing Director & Chief Executive Offi cer (since lr O` Hw$_ma JJ©), BgH$s AÜ`jVm H$aVr h¢ AWdm CZH$s AZwnpñW{V 01.02.2019 vice Shri Jai Kumar Garg) or in his absence, the Executive Director, Shri Gopal Murli Bhagat or in his absence _o§ H$m`©nmbH$ {ZXoeH$ lr Jmonmb _wabr ^JV AWdm CZH$s AZwnpñW{V Shri Birupaksha Mishra, Executive Director (since 26.12.2018) _o§ H$m`©nmbH$ {ZXoeH$ lr {~énmj {_lm ~¢H$ Ho H$m`©nmbH$ {ZXoeH$ chairs the committee meetings. Shri Pradeep Kumar Jain and (26.12.2018 go) BgH$s AÜ`jVm H$aVo h¢& lr àXrn Hw$_ma O¡Z VWm gwlr Ms. Chitra Gouri Lal, Shareholder Directors, are the other two {MÌm Jm¡ar bmb eoàYmaH$ {ZXoeH$ g{_{V Ho AÝ` Xmo gXñ` h¢& members of the committee.

92 4.11 J«mhH$ godm g{_{V 4.11 Customer Service Committee With a view to safeguard the rights of individual customers ^maVr` {aµOd© ~¢H$ Ho {ZXoemo§ Ho AZwgma VWm ì`{º$JV J«mhH$ Ho A{YH$mamo§ and to deliver better customer service, the Bank has constituted Ho g§ajU VWm ~ohVa J«mhH$ godm àXmZ H$aZo H$s X¥pîQ go ~¢H$ Zo J«mhH$ the Customer Service Committee of the Board, in line with godm g{_{V H$m JRZ {H$`m& g{_{V _o§ 6 gXñ` h¢& lr_Vr nr. dr. the directions of the Reserve Bank of India. The committee as ^maVr, à~§Y {ZXoeH$ d _w»` H$m`©nmbH$ A{YH$mar (01.02.2019 go on date under report comprises of 6 members. The members are Smt. P.V. Bharathi, Managing Director & Chief Executive nyd©dVr© lr O` Hw$_ma JJ©), Omo g{_{V H$s ~¡RH$mo§ H$s AÜ`jVm H$aVo h¢, Ofﬁ cer (since 01.02.2019 vice Shri Jai Kumar Garg), who chairs lr Jmonmb _wabr ^JV, ~¢H$ Ho H$m`©nmbH$ {ZXoeH$, lr {~énmj {_lm, the committee meetings, Shri Gopal Murli Bhagat, Executive ~¢H$ Ho H$m`©nmbH$ {ZXoeH$ (26.12.2018 go), lr Ho$. lr{Zdmg _y{V©, Director of the Bank, Shri Birupaksha Mishra, Executive Director (since 26.12.2018), Shri K. Srinivasa Murthy, 04.11.2018 lr àXrn Hw$_ma O¡Z VWm gwlr {MÌm Jm¡ar bmb ( go nyd©dVr© Shri Pradeep Kumar Jain, Director and Ms. Chitra Gouri Lal lr XodamH$mo§Sm XrpßV{dbmg), {ZXoeH$ g{_{V Ho gXñ` h¡& (since 04.11.2018 vice Shri Deverakonda Diptivilasa).

4.12 Zm_m§H$Z g{_{V 4.12 Nomination Committee The Nomination Committee was constituted by the Board ~¢H$ Ho$ {ZXoeH$ _§S>b Ûmam 22.12.2007 H$mo Am`mo{OV ~¡R>H$ _| ~¢qH$J of the Bank at its meeting held on 22.12.2007 as per the H§$nZr (CnH«$_m| Ho$ AO©Z Ed§ A§VaU) A{Y{Z`_, 1980 H$s Ymam 9(3EE) guidelines issued by Reserve Bank of India dated 01.11.2007 Ed§ Ymam 9(3E~r) Ho$ gmW n{R>V ^maVr` [aµOd© ~¢H$ Ho$ {Xem {ZX}em| {XZm§H$ read with Section 9(3AA) and Section 9(3AB) of the Banking 01.11.2007 Ho$ AZwgma EH$ Zm_m§H$Z g{_{V J{R>V H$s JB© Omo ~¢qH$J Companies (Acquisition and Transfer of Undertakings) Act, 1980 to undertake a process of due diligence to determine H§$nZrO (CnH«$_m| Ho$ AO©Z Ed§ A§VaU) A{Y{Z`_, 1980 H$s Ymam 9(3) “fi t and proper” status of the existing Shareholder Directors (i) Ho$ AZwgma ~¢H$ Ho$ dV©_mZ eoàYmaH$ {ZXoeH$m| Ed§ eoàYmaH$ {ZXoeH$m| of the Bank and of those who fi le Nominations for election Ho$ MwZmd hoVw Zm_m§H$Z H$aZodmbm| Ho$ "Cn`wº$ Ed§ C{MV' hmoZo H$s gå`H$ as Shareholder Directors of the Bank under the provisions of Om±M à{H«$`m g§M{bV H$aVr h¡& g{_{V Ho VrZ gXñ` h¢ AWm©V² lr _Zrf Section 9(3)(i) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980. The committee comprises JwßVm, ^maV gaH$ma Zm{_Vr {ZXoeH$, lr Ho$. lr{Zdmg _y{V©, gZXr boImH$ma of three members viz., Shri Manish Gupta, Government of àdJ© {ZXoeH$ (23.01.2018 go) Am¡a lr XodamH$mo§Sm XrpßV{dbmg, J¡a- India Nominee Director, Shri K. Srinivasa Murthy, Chartered Am{YH$m{aH$ {ZXoeH$& Accountant Category Director (since 23.01.2018) and Shri Devarakonda Diptivilasa, Non-Offi cial Director. 4.13 Am§V{aH$ ny±Or n`m©ßVVm _yë`m§H$Z g{_{V (AmB©grEEnr g{_{V) 4.13 Internal Capital Adequacy Assessment Committee (ICAAP Committee) ~¢qH$J àUmbr H$s gwX¥TVm Am¡a ñWm{`Ëd H$mo _µO~yV H$aZo Ho bú` go The Reserve Bank of India has formulated guidelines in the lines ^maVr` {aµOd© ~¢H$ Zo ~ogb I àWmAmo§ _o§ gwYma bmZo H$s X¥pîQ go ~ogb of the new Capital Adequacy framework introduced by Basel II II Am¡a ~ogb III Ûmam ewê {H$E JE ZE ny±Or n`m©ßVVm Tm±Mo H$s VO© na and Basel III which seeks to enhance the Basel I practices with {Xem{ZXo©e ~ZmE h¢& Cº Zr{V Ho bú` h¢ ^m{a~¢ Ho {Xem{ZXo©emo§, ~ogb the objective of strengthening the soundness and stability of the Banking system. The objectives of the policy are to ensure {Xem{ZXo©emo§ VWm g_J« H$mnmo©aoQ A{êmgZ {gÕm§Vmo§ Ho AZwgma Am§V{aH$ ny±Or management of internal capital in accordance with the RBI H$m à~§YZ H$aZm, ~¢H$ Ho H$mamo~ma d g§MmbZ _o§ A§V{Z©{hV Omo{I_mo§ H$s Guidelines, Basel Guidelines and overall Corporate Governance nhMmZ, _yë`m§H$Z H$aZo, _mnZo Am¡a g_oH$Z H$aZo H$s à{H«$`m {ZYm©{aV H$aZm, Principles, to describe the process for identifi cation, assessment, `h gw{Z{üV H$aZm {H$ CnbãY ny±Or ~¢H$ Ho Omo{I_ àmo\$mBb Ho AZwê$n h¡ measurement and aggregation of the risks inherent in the Bank’s business and operations, to ensure that the available capital Am¡a `h gw{Z{üV H$aZm {H$ AmB©grEEnr H$mo ghO ~ZmZo hoVw ^y{_H$mAmo§ Am¡a is commensurate with the Bank’s risk profi le and to ensure {Oå_oXm{a`mo§ H$m ñnîQ {ZYm©aU hmo& that there is clear assignment of roles and responsibilities for facilitating the ICAAP. g{_{V _o§ gXñ` h¢ AWm©V lr_Vr nr dr ^maVr, à~§Y {ZXoeH$ d _w»` The Committee members viz., Smt. P.V. Bharathi, Managing H$m`©nmbH$ A{YH$mar (01.02.2019 go nyd©dVr© lr O` Hw$_ma JJ©), lr Director & Chief Executive Offi cer (Since 01.02.2019 vice Jmonmb _wabr ^JV-H$m`©nmbH$ {ZXoeH$, lr {~énmj {_lm ~¢H$ Ho H$m`©nmbH$ Shri Jai Kumar Garg), Shri Gopal Murli Bhagat – Executive {ZXoeH$ (26.12.2018 go), lr Ho. lr{Zdmg _y{V©, (22.03.2019 go, Director, Shri Birupaksha Mishra, Executive Director (Since

ANNUAL REPORT 2018-19 93 {ZXoeH$ Ed§ ~moS© Ho boImnarjm g{_{V Ho AÜ`j Ho ê$n _o§, nyd©dVr© lr 26.12.2018) and Shri K. Srinivasa Murthy (since 22.03.2019, àXrn Hw$_ma O¡Z)& ~¢H$ Ho d{aîR H$m`©nmbH$ G$U à^mJ Ho à^mar _hm Director and as Chairman of the Audit Committee of the Board vice Shri Pradeep Kumar Jain). The Committee meetings are à~§YH$, _hm à~§YH$, {dÎmr` à~§YZ à^mJ, _hm à~§YH$, EH$sH¥V Omo{I_ also attended by, Senior Executives of the Bank as members à~§YZ à^mJ Am¡a _hm à~§YH$, Q—oµOar Ed§ {Zdoe {d^mJ ^r g{_{V H$s namely, General Manager in charge of Credit Division, the ~¡RH$mo§ _o§ ^mJ boVo h¢& lr_Vr nr. dr. ^maVr, à~§Y {ZXoeH$ Ed§ _w»` General Manager, Financial Management Division, the General H$m`©nmbH$ A{YH$mar g{_{V H$s ~¡RH$mo§ H$s AÜ`jVm H$aVr h¢& Manager, Integrated Risk Management Division and the General Manager, Treasury and Investment Department. Smt. P.V. Bharathi, Managing Director & Chief Executive 4.14 _mZd g§gmYZ g{_{V Ofﬁ cer, chairs the meetings of the Committee.

^maV gaH$ma, {dÎm _§Ìmb`, {dÎmr` godmE§ {d^mJ, ZB© {X„r H$s g§gyMZm 4.14 Human Resources Committee {XZm§{H$V 21.03.2012 Ho Ûmam àmßV {ZXoemo§ Ho AZwgma `y{Z`Zmo§/Egmo{gEeZmo§ As per the directives of the Ministry of Finance, Department Am¡a à~§YZ Ho ~rM {dMmamo§ Ho AmXmZ-àXmZ hoVw ~¢H$ Ho {ZXoeH$ _§Sb Zo of Financial Services, Government of India, New Delhi, vide {XZm§H$ 26.03.2012 H$mo Am`mo{OV AnZr ~¡RH$ _o§ {ZXoeH$ _§Sb H$s _mZd their communication dated 21.03.2012, the Board of the g§gmYZ g{_{V J{RV H$s h¡& Bank at its meeting held on 26.03.2012, constituted the HR Committee of the Board to provide for interaction between unions/associations and the management. lr_Vr nr. dr. ^maVr, à~§Y {ZXoeH$ d _w»` H$m`©nmbH$ A{YH$mar (01.02.2019 go nyd©dVr© lr O` Hw$_ma JJ©) lr Jmonmb _wabr ^JV - ~¢H$ Smt. P. V. Bharathi, Managing Director & Chief Executive Offi cer of the Bank (since 01.02.2019 vice Shri Jai Kumar Ho H$m`©nmbH$ {ZXoeH$, lr {~énmj {_lm, ~¢H$ Ho H$m`©nmbH$ {ZXoeH$ Garg), Shri Gopal Murli Bhagat – Executive Director of the (26.12.2018 go), lr _Zrf JwßVm, ^maV gaH$ma Zm{_Vr {ZXoeH$ VWm Bank, Shri Birupaksha Mishra, Executive Director (since lr àÚwåZ Ho . OoZm, ^m{a~¢ Zm{_Vr {ZXoeH$ Cº g{_{V Ho gXñ` h¢& lr_Vr 26.12.2018), Shri Manish Gupta, Government of India nr. dr. ^maVr, à~§Y {ZXoeH$ d _w»` H$m`©nmbH$ A{YH$mar g{_{V H$s Nominee Director and Shri Pradyumna K. Jena, RBI Nominee Director are the members of the committee. The committee ~¡RH$mo§ H$s AÜ`jVm H$aVr h¢& meetings are chaired by Smt. P.V. Bharathi, Managing Director & Chief Executive Offi cer of the Bank. 4.15 à{V^y{V Am~§QZ g{_{V 4.15 Securities Allotment Committee ~ogb III Ho A§VJ©V ~¢H$ H$s ny±Or Anojm nyar H$aZo Ho {bE ~¢H$ H$mo To meet the Capital requirement of the Bank under Basel-III, the ^{dî` _o§ ha df© Amdí`H$Vm Ho AmYma na eoàmo§ VWm/AWdm ~m±Smo§ Bank may have to raise capital by way of issue of shares and/or H$mo Omar H$aVo hwE ny±Or OwQmZr n‹S gH$Vr h¡& AV… ~¢H$ Ho {ZXoeH$ Bonds, etc., every year, on need based requirement. The Board of the Bank, therefore, constituted a committee on 11th November, 11 2013 _§Sb Zo {XZm§H$ Zd§~a H$mo Eogo _m_bmo§ _o§ B©p¹Qr eoàmo§/~m§Smo§ 2013, called the “Securities Allotment Committee of the Board”, Ho Am~§QZ na {dMma H$aZo Ho {bE ""{ZXoeH$ _§Sb H$s à{V^y{V Am~§QZ to consider the allotment of Equity shares/Bonds in such cases. g{_{V'' Zm_ H$s EH$ g{_{V J{RV H$s& `h g{_{V ñWmB© àH¥ {V H$s h¡ The committee is of permanent nature and will act as per the Am¡a {ZXoeH$ _§Sb Ho {ZXoemo§ Ho AZwgma H$m`© H$aoJr& g{_{V Ho gXñ` directions of the Board. The members of the committee are viz., Shri Gopal Murli Bhagat - Executive Director of the Bank, h¢; lr Jmonmb _wabr ^JV - ~¢H$ Ho H$m`©nmbH$ {ZXoeH$, lr Ho .lr{Zdmg Shri K. Srinivasa Murthy, Chartered Accountant Category _y{V©,gZXr boImH$ma {ZXoeH$ (24.03.2018 go), lr XodamH$mo§Sm XrpßV{dbmg, Director (since 24.03.2018), Shri Deverakonda Diptivilasa, Non- J¡a-Am{YH$m[aH$$ {ZXoeH$, lr àXrn Hw$_ma O¡Z VWm gwlr {MÌm Jm¡ar bmb offi cial Director, Shri Pradeep Kumar Jain and Ms. Chitra Gouri eoàYmaH$ {ZXoeH$ & {anmoQm©YrZ df© Ho Xm¡amZ lr Jmonmb _wabr ^JV, Lal, Shareholder Directors are the members of the Committee. The committee meetings were chaired by Shri Gopal Murli H$m`©nmbH$ {ZXoeH$ Zo g{_{V H$s ~¡RH$mo§ H$s AÜ`jVm H$s& O~ H$m°n©~¢H$ Bhagat, Executive Director during the year under report. When B©EgnrEg 2018 H$m _wÔm CRm`m J`m Wm, Cg g_` ~¡RH$ H$s AÜ`jVm lr the Agenda of CorpBank ESPS- 2018 was taken up, the meeting XodamH$mo§Sm XrpßV{dbmg, {ZXoeH$ Zo H$s Wr& was chaired by Shri Devarakonda Diptivilasa, Director.

94 4.16 dgybr {ZJamZr g{_{V 4.16 Recovery Monitoring Committee dgybr hoVw gwX¥‹T {ZJamZr V§Ì Ho {bE {dÎm _§Ìmb`, {dÎmr` godmE§ {d^mJ, In order to have a robust monitoring mechanism for recovery, the Ministry of Finance, Department of Financial Services, 21.11.2012 ^maV gaH$ma, ZB© {X„r Zo AnZr g§gyMZm {XZm§H$ Ûmam {Z`{_V Government of India, New Delhi, vide their communication AmYma na dgybr _o§ àJ{V H$s {ZJamZr hoVw {ZXoeH$ _§Sb H$s EH$ g{_{V dated 21.11.2012, advised to constitute a Committee of the J{RV H$aZo Am¡a _m{gH$ AmYma na CgH$s {anmoQ© {ZXoeH$ _§Sb H$mo àñVwV Board for Monitoring the progress in Recovery on a regular H$aZo H$mo gy{MV {H$`m& g{_{V Ho JRZ H$m AZw_moXZ {ZXoeH$ _§Sb H$s basis and to submit its report to the Board on a monthly basis. 26.11.2012 H$mo Am`mo{OV ~¡RH$ _o§ {H$`m J`m Wm& g{_{V _o§ 3 {ZXoeH$ h¢ The constitution of the committee was approved by the Board in its meeting held on 26.11.2012. The committee comprises AWm©V² lr_Vr nr. dr. ^maVr, à~§Y {ZXoeH$ d _w»` H$m`©nmbH$ A{YH$mar of 3 Directors as members viz., Smt. P.V. Bharathi, Managing (01.02.2019 go nyd©dVr© lr O` Hw$_ma JJ©) VWm lr Jmonmb _wabr Director & Chief Executive Offi cer (since 01.02.2019 vice Shri ^JV- ~¢H$ Ho H$m`©nmbH$ {ZXoeH$, lr {~énmj {_lm, ~¢H$ Ho H$m`©nmbH$ Jai Kumar Garg), Shri Gopal Murli Bhagat - Executive Director {ZXoeH$ (26.12.2018 go Am¡a lr _Zrf JwßVm, gaH$ma Zm{_{V {ZXoeH$ & of the Bank, Shri Birupaksha Mishra, Executive Director (since 26.12.2018) and Shri Manish Gupta, the Government lr_Vr nr. dr. ^maVr, à~§Y {ZXoeH$ Ed§ _w»` H$m`©nmbH$ A{YH$mar g{_{V Nominee Director. The meetings of the committee are chaired H$s ~¡RH$mo§ H$s AÜ`jVm H$aVr h¢& by Smt. P.V. Bharathi, Managing Director & Chief Executive Offi cer. 4.17 BamXVZ MyH$H$Vm©Amo§ hoVw g_rjm g{_{V 4.17 Review Committee for Wilful Defaulters BamXVZ MyH$H$Vm©Amo§ Ho ê$n _o§ CYmaH$Vm©Amo§ H$mo dJr©H¥ V H$aZo hoVw nmaXer© As per the directions of Reserve Bank of India to put in place àUmbr bmJy H$aZo hoVw ^maVr` {aµOd© ~¢H$ Ho {ZXoemo§ Ho AZwgma, BamXVZ a transparent mechanism for classifying borrowers as Wilful MyH$H$Vm©Amo§ H$mo nhMmZZo dmbr H$m`©nmbH$ g{_{V Ho AmXoemo§ H$s g_rjm Defaulters, this Committee was formed to review the orders Ho {bE Bg g{_{V H$m JRZ {ZXoeH$ _§Sb H$m`©d¥Îm g§. 75 {XZm§{H$V of the executive committee that identifi es wilful defaulters, 25.06.2015 Ho O{aE {H$`m J`m& g{_{V _o§ 3 gXñ` h¢, AWm©V², lr_Vr vide Board Minute No. 75 dated 25.06.2015. The Committee nr. dr. ^maVr, à~§Y {ZXoeH$ d _w»` H$m`©nmbH$ A{YH$mar (01.02.2019 comprises 3 members namely, Smt. P.V. Bharathi, Managing Director and Chief Executive Offi cer (since 01.02.2019 vice go nyd©dVr© lr O` Hw$_ma JJ©), lr Ho .lr{Zdmg _y{V© (gZXr boImH$ma àdJ© Shri Jai Kumar Garg), Shri K. Srinivasa Murthy, (Chartered {ZXoeH$,11.03.2019 go) VWm gwlr {MÌm Jm¡ar bmb, (eoàYmaH$ {ZXoeH$, Accountant Category Director, since 11.03.2019) and 25.12.2018 go)& Ms. Chitra Gouri Lal (Shareholder Director, since 25.12.2018).

4.18 Sub Committee of the Board for Digital Payments 4.18 emImAmo§ _o§ {S{OQb ^wJVmZ Ho àMma Ed§ H$mamo~ma d¥{Õ hoVw Promotion & Business Promotion in Branches

~moS© H$s Cn g{_{V The name of Sub Committee of the Board to monitor the ~moS© H$m`©d¥Îm g§. 33 {XZm§{H$V 11.09.2017 Ho O{aE emImAmo§ H$s Business Growth of Newly Opened Branches got amended vide H$mamo~ma d¥{Õ H$s {ZJamZr Ho {bE ~moS© H$s Cn g{_{V H$m Zm_ g{_{V Board minute no. 33 dated 11.09.2017 as Sub Committee of the Board for Digital Payments Promotion & Business Promotion Ho {S{OQb ^wJVmZ à{H«$`m H$s ~‹TmoÎmar H$mo em{_b H$aVo hwE emImAmo§ _o§ in Branches with inclusion of Promotion of Digital Payments {S{OQb ^wJVmZ Ho àMma Ed§ H$mamo~ma d¥{Õ hoVw ~moS© H$s Cn g{_{V Ho ê$n function of the Committee as Government of India has directed H$mo g§emo{YV {H$`m J`m h¢, Š`mo§{H$ ^maV gaH$ma Zo AnZr g§gyMZm {XZm§{H$V vide its communication dated 05.07.2017 that the Board of 05.07.2017 Ho O{aE `h {ZXo©{eV {H$`m h¡ {H$ ~¢H$ Ho ~moS© H$mo Bg Vah the Bank should have such committee. Hence apart from the H$s g{_{V aIZr Mm{hE & ZB© emImAmo§ Ho {ZînmXZ H$s g_rjm VWm H$mgm review of the performance of newly opened branches and to monitor the growth of CASA, this Sub Committee will also H$s d¥{Õ H$s {ZJamZr Ho A{V{aº `h Cn g{_{V {S{OQb ^wJVmZ H$s ~‹TmoÎmar review Promotion of Digital Payments as well as matters related H$s ^r g_rjm H$aoJr gmW hr gmB~a gwajm Zr{V go g§~§{YV _m_bmo§ H$s ^r, to Cyber Security Policies as Govt. of India nominated Director Š`mo§{H$ ~moS© H$m`©d¥V g§»`m 37, {XZm§{H$V 29.06.2018 Ho AZwgma ^maV is also a member of this committee vide Board minute no. 37 gaH$ma Ûmam Zm{_V {ZXoeH$ ^r Bg g{_{V Ho gXñ` hmoVo h¡& Bg g{_{V _o§ dated 29.06.2018. The Committee comprises of 4 members 4 gXñ` h¢ AWm©V² lr _Zrf JwßVm, {ZXoeH$, lr XodamH$mo§Sm XrpßV{dbmg, namely, Shri Manish Gupta, Director, Shri Devarakonda Diptivilasa, Director, Shri Pradeep Kumar Jain, Director and {ZXoeH$, lr àXrn Hw$_ma O¡Z, {ZXoeH$ Am¡a gwlr {MÌm Jm¡ar bmb, {ZXoeH$ & Ms. Chitra Gouri Lal, Director. The Committee meetings are g{_{V Ho ~¡RH$mo§ H$s AÜ`jVm lr _Zrf JwßVm, ^maV gaH$ma Zm{_{V {ZXoeH$ chaired by Shri Manish Gupta, Government of India Nominee Ûmam H$s OmVr h¢& Director.

ANNUAL REPORT 2018-19 95 4.19 AÝ` g{_{V`m± 4.19 Other Committees {ZXoeH$ _§Sb Zo {ZXoeH$ _§Sb H$s AÝ` Cn g{_{V`mo§ (i) J¡a gh`moJr The Board also formed other Sub-committees of the Board namely (i) Review Committee for Non-Cooperative Borrowers, ii CYmaH$Vm©Amo§ hoVw g_rjm g{_{V, ( ) eo`aYmaH$ {ZXoeH$mo§ hoVw dmo{QJ§ hoVw (ii) Committee to consider voting for shareholder Director, g{_{V, (iii) H$mamo~ma/à~§YZ/n{aMmbZJV gbmhH$ma Ho M`Z hoVw g{_{V, (iii) Committee for Selection of Business/Management/ (iv) _hm à~§YH$mo Ho _yë`m§H$Z {anmoQmoª H$s g_rjm hoVw g{_{V (EnrEAma Operational Consultant, (iv) Committee to Review the g{_{V) Am¡a (v) _hm à~§YH$mo§ hoVw à_wI X§S hoVw {Z`{_V {d^mJr` H$ma©dmB© Appraisal report of General Managers (APAR Committee), (v) Appeal Committee to review the appeal against the Regular Ho {déÕ Anrb H$s g_rjm hoVw Anrb g{_{V (g{_{V H$s EH$ df© H$s Departmental Action for major penalty for General Managers, Ad{Y {XZm§H$ 21.01.2019 H$mo g_mßV hmo JB© h¡) Ed§ (vi) 30 dfmoª H$s (One year period of the committee expired on 21.01.2019) godm nyar H$aZo dmbr A{YH$m{a`mo§ H$s ~mÜ`H$mar godm{Zd¥{V Ho _m_bmo§ H$mo and (vi) A Special Committee is also formed to look into the XoIZo Ho {bE EH$ {deof g{_{V ^r ~ZmB© JB© h¡& Amdí`H$Vm Ho AmYma matters of compulsory Retirements of Ofﬁ cers who completed the service of 30 years and above. The Frequency of these na ~¡RHo§ Am`mo{OV H$s OmVr h¢& committee Meetings is on need basis.

5. {ZXoeH$mo§ H$mo nm{al{_H$ 5. Remuneration to Directors 5.1 Only sitting fees as prescribed by the Government of India 5.1 ^maV gaH$ma Zm{_Vr {ZXoeH$ Am¡a ^m.{a.~¢H$ Zm{_Vr {ZXoeH$ H$mo for attending Board and Committee meetings are paid to the Nmo‹SH$a J¡a-H$m`©nmbH$ Ed§ J¡a-H$m`©nmbH$ ñdV§Ì {ZXoeH$mo§ H$mo ~moS© d non-executive and non-executive independent directors except g{_{V H$s ~¡RH$mo§ _o§ CnpñWV hmoZo hoVw ^maV gaH$ma Ûmam {ZYm©{aV AZwgma Government of India nominee director and RBI Nominee Ho db ~¡RH$ ewëH$ H$m ^wJVmZ {H$`m OmVm h¡& Director. 5.2 The details of remuneration paid to the whole-time 5.2 df© 2018-19 hoVw ~¢H$ Ho nyU©H$m{bH$ {ZXoeH$mo§ AWm©V² à~§Y {ZXoeH$ Directors of the Bank i.e. Managing Director & Chief Executive Ofﬁ cer and the Executive Director as per terms and conditions Ed§ _w»` H$m`©nmbH$ A{YH$mar Am¡a H$m`©nmbH$ {ZXoeH$mo§ H$mo {Z`w{º H$s of appointment ﬁ xed and Performance linked incentive Scheme {ZYm©{aV eVmoª VWm Ho§ Ð gaH$ma Ûmam V¡`ma {ZînmXZ g§~Õ àmoËgmhZ `moOZm framed by the Central Government, i.e. for the year 2018-19 is Ho AZwgma àXÎm nm{al{_H$ Ho {ddaU {ZåZdV² h¢& furnished hereunder : (` _|/in `) lr_Vr nr. dr. ^maVr O` Hw _ma JJ©, nyd© lr Jmonmb _wabr ^JV lr {~énmj {_lm, {ddaU à~§Y {ZXoeH$ Ed§ _w»` à~§Y {ZXoeH$ Ed§ _w»` Particulars H$m`©nmbH$ A{YH$mar$ H$m`©nmbH$ A{YH$mar$ H$m.{Z. H m.{Z. Smt. P. V. Bharathi Shri Jai Kumar Garg, Shri Gopal Murli Shri Birupaksha MD & CEO Ex-MD & CEO Bhagat, ED Mishra, ED doVZ Salary 4,60,096.00 24,39,590.20 25,32,008.13 6,49,155.10 2,22,450.00 2,26,800.00 58,051.94 nrE\ _o§ `moJXmZ 41,080.00 Contribution to PF H$_©Mmar ñQ>m°H$ IarX `moOZm na n[abpãY _yë` Perquisite value on eyÝ` NIL 66,900.00 51,200.00 66,900.00 Employee Stock purchase Scheme {ZînmXZ g§~Õ àmoËgmhZ Performance Linked eyÝ` NIL eyÝ` NIL eyÝ` NIL eyÝ` NIL Incentive Hw$b Total 5,01,176.00 27,28,940.20 28,10,008.13 7,74,107.04

ñQm°H$ {dH$ën NIL NIL NIL NIL Stock Option eyÝ` eyÝ` eyÝ` eyÝ`

96 6. go~r (gyMr~Õ Xo`VmE§ Am¡a Amdí`H$ àH$QZ), {d{Z`_, 2015 go 6. In terms of the Regulations 17 to 27 of the SEBI (Listing {d{Z`_ 17 go 27 Ho AZwgma df© 2018-19 hoVw ~¢H$ _o§ H$mnmo©aoQ A{^emgZ Obligations and Disclosure Requirements) Regulations, 2015, a Certiﬁ cate has been obtained from the Statutory Central Ho g§~§Y _o§ gm§{d{YH$ Ho§Ðr` boIm narjH$mo§ go à_mU nÌ àmßV {H$`m J`m h¡ Auditors on Corporate Governance in the Bank for the year Omo Bg {anmoQ© Ho gmW g§b¾ h¡& 2018-19 and the same is annexed to this report.

7. _hmg^m 7. General Meetings 7.1 In terms of the provisions of the Banking Companies 7.1 1980 ~¢qH$J H§$nZr (CnH«$_mo§ H$m AO©Z Am¡a A§VaU) A{Y{Z`_, Ho (Acquisition and Transfer of Undertakings) Act, 1980, the g§emo{YV àmdYmZmo§ Ho AZwgma, _hmg^m _o§ eo`aYmaH$ VwbZnÌ, bm^-hm{Z shareholders at the Annual General Meeting are entitled to discuss, boIm, {ZXoeH$ _§Sb H$s {anmoQ© VWm boIm narjH$mo§ H$s {anmoQ© na MMm© H$aZo, approve and adopt the Balance Sheet, Proﬁ t and Loss account, the AZw_moXZ H$aZo VWm AnZmZo Ho {bE nmÌ h¢& report of the Board of Directors and the Auditors’ Report.

7.2 {nNbr VrZ dm{f©H$ _hmg^m Ho$ {ddaU / Particulars of past three Annual General Meetings {dÎm df© Financial Year 2015-16 2016-17 2017-18 dm{f©H$ _hmg^m H$m g_` Am¡a {XZm§H$ 29.06.2016 28.06.2017 29.06.2018 Date & Time of the AGM g_`: nydm©• 10.30 ~Oo g_`: nydm©• 10.30 ~Oo g_`: nydm©• 10.30 ~Oo 29.06.2016 28.06.2017 29.06.2018 Time 10.30 a.m. Time 10.30 a.m. Time 10.30 a.m. ñWmZ ~¢H$ H$m àYmZ H$m`m©b` d ~¢H$ H$m àYmZ H$m`m©b` d ~¢H$ H$m àYmZ H$m`m©b` d Venue H$mnmo©aoQ H$m`m©b`, _§Jbyé H$mnmo©aoQ H$m`m©b`, _§Jbyé H$mnmo©aoQ H$m`m©b`, _§Jbyé Bank’s Head Offi ce & Bank’s Head Offi ce & Bank’s Head Offi ce & Corporate Offi ce, Corporate Offi ce, Corporate Offi ce, Mangaluru. Mangaluru. Mangaluru.

nm[aV {deof g§H$ën Nil One One Special Resolutions passed eyÝ` EH EH

7.3 AgmYmaU _hmg^m 7.3 Extraordinary General Meeting Extraordinary General Meeting of the shareholders of the Bank eo`amo§ H$mo Omar H$aZo hoVw àYmZ H$m`m©b`, _§Jbyé _o§ EH$ AgmYmaU _hmg^m was held at H.O., Mangaluru to issue shares, the details of Am`mo{OV H$s JB© Wr, {OgHo {ddaU {ZåZmZwgma h¢: which are as follows:

ANNUAL REPORT 2018-19 97 ~¡RH$ H$m {XZm§H$ Venue nm[aV {deof g§H$ën Am¡a g_` ñWmZ Special Resolutions passed {Q>ßn{U`m± Date and Time of the Remarks Meeting 7 {gV§~a, 2018 ~¢H H m àYmZ H m`m©b` d (i) ^maVr` à{V^y{V {d{Z_` ~moS© (ny§Or {ZJ©_ (i) `27.40 à{V B©p¹Qr eoà AWm©V `29.40 Omar _yë` nydm©• 10.30 ~Oo H mnmo©aoQ H$m`m©b`, _§Jbyé Am¡a àH$QrHaU AnojmE±), {d{Z`_, 2009 Ho àr{_`_ na ZH Xr hoVw àËòH `2/- (énE Xmo 7th September, 2018 Bank’s Head Offi ce (go~r AmB©grSrAma {d{Z`_) Ho AÜ`m` _mÌ) Ho 86,90,47,619 B©p¹Qr eoàmo§ VH Am¡a VII at 10.30 a.m. & Corporate Offi ce, Ho {d{Z`_ 76 AZwgaU _o§ {ZXoeH `2554,99,99,998.60 (énE Xmo hOma nm±M gm¡ Mangaluru. _§Sb Ûmam `Wm {ZYm©{aV `27.40 à{V B©p¹Qr Mm¡dZ H amo‹S {ZÝ`mZdo bmI {ZÝ`mZdo hOma Zm¡ gm¡ ` eoà AWm©V 29.40 Omar _yë` Ho àr{_`_ ARmZdo Am¡a gmR n¡gm _mÌ) (àr{_`_ am{e g{hV) H na ZH Xr hoVw àËòH `2/- (énE Xmo _mÌ) mo A{Y_mZr AmYma na ^maV gaH ma H mo (AWm©V² ^maV Ho 86,90,47,619 B©p¹Qr eoàmo§ VH Am¡a Ho amîQ—n{V) H mo Am~§QZ& g_J«V: `2554,99,99,998.60 (énE Xmo hOma nm±M gm¡ Mm¡dZ H amo‹S {ZÝ`mZdo bmI {ZÝ`mZdo hOma Zm¡ gm¡ ARmZdo Am¡a gmR n¡gm _ mÌ) (àr{_`_ am{e g{hV) H mo A{Y_mZr AmYma na ^maV gaH ma (AWm©V ^maV Ho amîQ—n{V) H mo àXmZ, Omar Am¡a Am~§QZ H aZo Hmo AZw_mo{XV H aZm&

(i) To approve, offer, issue and allot up (i) Allotment of 86,90,47,619 equity to 86,90,47,619 equity shares of `2/- shares of `2/- each (Rupees Two each (Rupees Two only) for cash at a only) for cash at a premium of premium of `27.40 per equity share i.e. `27.40 per equity share i.e. issue issue price of `29.40 aggregating upto price of `29.40 aggregating upto `2554,99,99,998.60 (Rupees two `2554,99,99,998.60 (Rupees two thousand fi ve hundred and fi fty four thousand fi ve hundred and fi fty four crore ninety nine lakh ninety nine crore ninety nine lakh ninety nine thousand nine hundred ninety eight thousand nine hundred ninety eight and paise sixty only) (inclusive of and paise sixty only) (inclusive of premium amount) on preferential premium amount) on preferential basis to Government of India (i.e. basis to Government of India (i.e. President of India) as determined President of India). by the Board in accordance with Regulation 76, Chapter VII of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 (i.e. the SEBI ICDR Regulations)”. (ii) H mnmo©aoeZ ~¢H H _©Mmar ñQm°H IarX `moOZm, 2018 (ii) ~¢H Ho ~moS© H r à{V^y{V Am~§QZ g{_{V Zo H mnmo©aoeZ (BgHo ~mX ""Hmn©~¢H - B©EgnrEg'' H hm J`m h¡) ~¢H H _©Mmar ñQm°H HŒ ` `moOZm 2018 (H mn©~¢H Ho A§VJ©V bm^m§e Ho ^wJVmZ g{hV g_ñV à`moOZmo§ B©EgnrEg 2018) Ho A§VJ©V nmÌ H _©Mm{a`mo§ H mo `2 à{V H r Xa go 5,40,40,570 (énE nm±M Am¡a g^r àH ma Ho ~¢H Ho dV©_mZ Bp¹Qr eoàmo§ H H amo‹S Mmbrg bmI Mmbrg hµOma nm±M gm¡ gÎma _mÌ) r g__yë` (nar nñgw) a¢qH J Ho gmW ~moS©/g{_{V Bp¹Qr eoàmo§ Ho Am~§QZ na {dMma H aZm Am¡a AZw_ Ûmam CZHo {ddoH m{YH ma go V` {H E JE Eogo _yë` mo{XV H aZm& VXZwgma, ~¢H Zo H mn©~¢H B©EgnrEg `m _yë`mo§, Am¡a Eogo {Z`_mo§ Am¡a eVmoª na EH `m 2018 Ho Ûmam `105.97 H amo‹S OwQm`m& AZoH ~ma A§{H$V _yë` `2/- à{V H r Xa go 10,00,00,000 (10 H amo‹S) VH Zò eoàmo§ H m {Z_m©U, àñVmd, {ZJ©_ Ed§ Am~§QZ&

98 ~¡RH$ H$m {XZm§H$ Venue nm[aV {deof g§H$ën Am¡a g_` ñWmZ Special Resolutions passed {Q>ßn{U`m± Date and Time of the Remarks Meeting (ii) To create, grant offer, issue and allot (ii) The Securities Allotment Committee up to 10,00,00,000 (Ten crore) new of the Board of the Bank has equity shares of face value of `2/- considered and approved allotment of (Rupees Two only) each, ranking 5,40,40,570 (Five Crore Forty Lakh pari passu with the existing equity Forty Thousand Five Hundred and shares of the Bank for all purpose and Seventy) Equity Shares of `2/- each to eligible employees under Corporation in all respects, including payment Bank Employee Stock Purchase of dividend, under an Employee Scheme 2018 (CORPBANK ESPS Stock Purchase Scheme (hereinafter 2018). Accordingly, the Bank referred to as “CorpBank-ESPS’’) in has raised `105.97 crore through one or more tranches, at such price CORPBANK ESPS 2018. or prices, and on such terms and conditions as may be decided by the Board/Committee in its absolute discretion. 27th _mM©, 2019 ~¢H H m àYmZ H m`m©b` d ^maVr` à{V^y{V {d{Z_` ~moS© (ny§Or {ZJ©_ Am¡a àH$Q>rH$aU `24.68 à{V B©p¹Qr eoà AWm©V `26.68 Omar nydm©• 10.30 ~Oo H mnmo©aoQ Hm`m©b`, _§Jbyé AnojmE±), {d{Z`_, 2018 (go~r AmB©grSrAma {d{Z`_) _yë` Ho àr{_`_ na ZH Xr hoVw àËòH `2/- (énE Bank’s Head Offi ce Ho AÜ`m` V Ho {d{Z`_ 164 AZwgaU _o§ {ZXoeH _§Sb Xmo _mÌ) Ho 340,55,47,226 B©p¹Qr eoàmo§ VH Am¡a 27th March, 2019 ` & Corporate Offi ce, Ûmam `Wm {ZYm©{aV 24.68 à{V B©p¹Qr eoà AWm©V `9085,99,99,989.68 (énE Zm¡ hOma {nMmgr at 10.30 a.m. `26.68 Omar _yë` Ho àr{_`_ na ZH Xr hoVw àËòH H$amo‹S {ZÝ`mZdo bmI {ZÝ`mZdo hOma Zm¡ gm¡ Zdmgr Mangaluru. `2/- (énE Xmo _mÌ) Ho 340,55,47,226 B©p¹Qr eoàmo§ ` Am¡a AS>gR n¡gm _mÌ) (àr{_`_ am{e g{hV) H mo VH Am¡a g_JŒV: 9085,99,99,989.68 (énE Zm¡ A{Y_mZr AmYma na ^maV gaH ma H mo (AWm©V² ^maV hOma {nMmgr H$amo‹S {ZÝ`mZdo bmI {ZÝ`mZdo hOma Zm¡ gm¡ Zdmgr Am¡a AS>gR n¡gm _mÌ)(àr{_`_ am{e g{hV) H$mo Ho amîQ—n{V) H mo Am~§QZ& A{Y_mZr AmYma na ^maV gaH ma (AWm©V ^maV Ho amîQ—n{V) H mo àXmZ, Omar Am¡a Am~§QZ H aZo H mo AZw_mo{XV H aZm& To approve, offer, issue and allot upto Allotment of 340,55,47,226 equity 340,55,47,226 equity shares of `2/-each shares of `2/- each (` Two only) for (Rupees Two only) for cash at a cash at a premium of `24.68 per premium of `24.68 per equity share i.e. equity share i.e. issue price of `26.68 issue price of `26.68 aggregating upto aggregating up to `9085,99,99,989.68 `9085,99,99,989.68 (Rupees Nine (Rupees Nine Thousand Eighty Five Thousand Eighty Five Crore Ninety Crore Ninety Nine Lakh Ninety Nine Nine Lakh Ninety Nine Thousand Thousand Nine Hundred Eighty Nine Nine Hundred Eighty Nine and Paisa and Paisa Sixty Eight only) (inclusive of Sixty Eight only) (inclusive of premium premium amount) on preferential basis amount) on preferential basis to to Government of India (i.e. President Government of India (i.e. President of of India). India) as determined by the Board in accordance with Regulation 164, Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 (i.e. the SEBI ICDR Regulations)”. Cnamoº {deof g§H$ën nm[aV H$aZo Ho {bE SmH$ _VnÌ Am`mo{OV Zht {H$`m J`m Wm& No postal ballot was conducted for passing the above mentioned special resolutions.

ANNUAL REPORT 2018-19 99 7.43. grB©Amo{ZXoeH$ VWm _§Sb grE\ Amo à_mU nÌ 7.4 CEO & CFO Certifi cate The compliance certifi cate of CEO & CFO under Regulation 3.1 ({ZXoeH _§Sb H$m JRZ g_`-g_` na) `Wm g§emo{YV, 2015 amîQr`H¥ V go~r gyMrH$aU ~mÜ`VmE± VWm àH$QZ AnojmE± {d{Z`_ Ho {d{Z`_ 17(8) of SEBI (Listing Obligations and Disclosure Requirement) 1980 17~¢H (8)(à~§YZ VhV Am¡agrB©Amo {d{dY VWm grE\àmdYmZ) Amo H$m`moOZm, AZwnmbZ à_mU Ho nÌgmW ~¢H$ n{RV Ho {ZXoeH$ ~¢qH$J Regulations, 2015 has been submitted to the Board of Directors _§SbH§$nZr H$mo (CnHŒ àñVwV _mo§ {H$`mH$m AO©Z J`m Am¡ah¡ VWm A§VaU) EH$ à{V A{Y{Z`_, H$mnmo©aoQ A{êmgZ 1980 Ho {anmoQ©AZwgma Ho {H$`mgmW of the Bank and a copy is attached to the Corporate Governance g§b¾J`m h¡ H$s Am¡a JB© Bg_o§h¡& {ddY ì`mdgm{`H AZw^d dmbo ì`{º`mo§ H$m à{V{Z{YËd Report. 2017 18 8 h¡& df© - H$s g_mpßV na {anmoQ© Ho AZwgma {ZXoeH _§Sb _o§ 8. Material Disclosures {ZXoeH h¢ {OZ_o§ 6 J¡a-H$m`©nmbH {ZXoeH h¢ VWm CZ_o§ go EH _{hbm 8. _hËdnyU© àH$QZ 8.1 Material, fi nancial and commercial transactions of the 4 {ZXoeH g{hV H$mo ñdV§Ì {ZXoeH _mZm J`m h¡& g_mO Ho {d{^Þ joÌmo§ go management (defi ned as ‘Board of Directors’), where they have 8.1 (‘ ’ ) , AmZodmbo à~§YZ ò {ZXoeH{ZXoeH$ , _§Sb_§Sb HoH$mo ê$n {deofkVm_o§ n{a^m{fV Am¡a Ho{dnwb _hËdnyU© AZw^d-`wº {dÎmr` kmZEd§ personal interest, that may have a potential confl ict with the dm{UpÁ`H$àXmZ H aVo boZXoZmo§ h¢& {anmoQm©YrZ Am{X Ho {dÎm gmW df© Eogm Ho H$moB©Xm¡amZ _hËdnyU© {ZXoeH boZXoZ_§Sb H$s{OZ_o§ 13 CZH$m~¡RHo§ interest of the bank at large have been reported to the Board ì`{ºJVAm`mo{OV {hV H$s hmoJB©§&, {OgHo ~¢H$ Ho {hVmo§ go {damoY H$s g§^mdZm hmo Vmo CgH$s from time to time. {ZXoeH$3.2 ~¢H _§Sb n{aMmbZ H$mo g_` Ho -Hwg_` N _hËdnyU©na gyMZm H$m`©-joÌmo§Xr J`r h¡& _o§ {deof VWm g§Ho§ {ÐV 8.2 The Bank has complied with all the requirements Ü`mZ XoZo Ho {bE Am¡a C{MV {Xem àXmZ H aZo, à^mdr {ZJamZr H aZo VWm regarding capital market related matters and as such not been 8.2 ~¢H$ Zo ny±Or ~mOma go g§~Õ _m_bmo§ H$s g^r AnojmAmo§ H$m AZwnmbZ ~¢H Ho H$m`moª _o§ {Z`§ÌU aIZo Am¡a ZE joÌmo§ na Ü`mZ XoH$a VWm ~¢H Ho g_JŒ penalised or imposed with strictures by the stock exchanges {H$`m h¡ Am¡a JV VrZ dfmoª Ho Xm¡amZ ñQm°H$ EŠgMo§Omo§ `m go~r `m {H$gr AÝ` {dH$mg H$s Amdí`H$Vm hoVw {ZXoeH _§Sb Zo {d{^Þ g{_{V`mo§ H$m JRZ {H$`m or SEBI or any other statutory authority during the last three gm§{d{YH$ àm{YH$mar Ûmam ~¢H$ H$s Z Vmo qZXm H$s JB© Z ~¢H$ na H$moB© Ow_m©Zm years. No personnel has been denied access to Audit Committee h¡& {d{^Þ g{_{V`mo§ Ho ã`moao Am¡a df© 2017-18 Ho Xm¡amZ àËòH g{_{V Ûmam bJm`m J`m& {H$gr ^r H$m{_©H$ H$mo ~moS© H$s boIm narjm g{_{V VH$ nhw±MZo of the Board. The Bank conducted the Annual General Meeting Am`mo{OV ~¡RH$mo§ H$s Hw b g§»`m {ZåZmZwgma h¡… within the statutory time frame in 2018-19. go _Zm Zht {H$`m J`m h¡& ~¢H$ Zo 2018-2019 _o§ gm§{d{YH$ g_`md{Y Ho 3 3 ^rVa. dm{f©H$~moS© H$s_hmg^m g{_{V`mo§ Am`mo{OV Ho {ddaU H$s h¡ AmJo& Ho n¥îRmo§ _o§ {XE JE h¢& {ZXoeH The bank has followed the Secretarial Standards issued by _§Sb Am¡a CgH$s g{_{V`mo§ Zo {Z`{_V A§Vambmo§ _o§ ~¡RHo§ H$s VWm Z¡{VH the Institute of Company Secretaries of India, to the extent ~¢H$àWmAmo§ Zo gmd©O{ZH$ Am¡a ì`mdgm{`H joÌ Ho ~¢H$ à~§YZ Ho {bE Ûmam bmJy {ZînmXZ gr_m VH$Ho ^maVr`CÀM _mZ H§$nZr gw{Z{üV g{Md applicable to a Public Sector Bank. g§ñWmZH$aZo hoVw Ûmam {ddo OmarH$nyU© g{Mdr` Am¡a Xj _mZH$mo§ VarHo H$m go AZwgaUAnZo bú`mo§ {H$`m H$mo h¡& àmßV H$aZo hoVw ~¢H 9. Mandatory and non-mandatory requirements H$m _mJ©Xe©Z {H$`m& 9.1 Bank has complied with all the applicable mandatory 9. - 3. 4A{Zdm`© Zr{V Ed§{Zê$nU,J¡a A{Zdm`© {ZînmXZ AnojmE±g_rjm Ed§ {díbofU VWm {Z`§ÌU O¡gr requirements as provided in Regulations 17 to 27 of the SEBI 9.1{Oå_oXm{a`m± ~¢H$ Zo go~r{ZXoeH (gyMr~Õ _§Sb Xo`VmE§Ûmam {Z^mB© Am¡a Amdí`H$OmVr h¢& àH$QZ{ZXoeH) {d{Z`__§Sb Zo, 2015~¢H Ûmam Ho (Listing Obligations and Disclosure Requirement) Regulations, 2015. {d{Z`_{ZYm©{aV 17Zr{V`mo§ go 27 Ho AZwê$n_o§ àXÎm ~¢HAnojmAmo§ Ho H$m`©nmbH$mo§ H$m AZwnmbZ Am¡a H$m`©nmbH$mo§ {H$`m h¡ & H$s g{_{V`mo§ H$mo {d{^Þ A{YH$ma àË`m`mo{OV {H$E h¢& ^maV gaH$ma, {dÎm _§Ìmb` Am¡a 9.2 The extent of implementation of non-mandatory 9.2 J¡a-A{Zdm`© AnojmAmo§ Ho$ H$m`m©Ýd`Z H$s gr_m H$m {ddaU {ZåZdV² h¡… requirements is furnished hereunder: Anojm Requirement AZwnmbZ Compliance 9.2.1 {ZXoeH$ ‘§S>b - J¡a-H$m`©nmbH$ AÜ`j H§$nZr Ho$ IM© na AÜ`j Ho$ ~¢H$ H$mo bmJy Zht h¡& H$m`m©b` Ho$ {bE nmÌ hm| VWm AnZo H$V©ì` Ho$ {ZînmXZ _o§ dhZ {H$E Not applicable to the Bank. JE IMmoª H$s à{Vny{V© Ho {bE ^r CÝh| AZw_{V Xr OmE& The Board – A non-executive Chairman may be entitled to maintain a Chairman’s offi ce at the Bank’s expense and also allowed reimbursement of expenses incurred in performance of his duties. 9.2.2 eo¶aYmaH$ A{YH$ma - {nNbo N… _mh H$s _hËdnyU© KQZmAmo§ Bgo ~¢H$ H$s do~gmBQ www.corpbank.com Am¡a ñQm°H$ EŠgMo§O Ho gmam§e g{hV {dÎmr` {ZînmXZ H$s AY© dm{f©H$ KmofUm àËòH$ do~gmB©Q www.bseindia.com, www.nseindia.com _o§ AnbmoS {H$`m J`m h¡ VWm df© _o§ EH$ ~ma nyam VwbZ nÌ g{hV g_mMma nÌmo§ _o§ eoàYmaH$ H$mo ôOr OmE& ^r àH$m{eV {H$`m J`m h¡& Shareholder Rights – A half-yearly declaration of fi nancial It has been uploaded in the website of the Bank performance including summary of the signifi cant events www.corpbank.com as well as website of Stock Exchanges – in last six-months, may be sent to each household of www.bseindia.com, www.nseindia.com and also published shareholders. in the newspapers including full Balance Sheet annually once.

100 Anojm Requirement AZwnmbZ Compliance 9.2.3 boIm-narjm {anmoQ© _o§ g§emo{YV A{^_V-~¢H J¡a-g§emo{YV boIm à~§YZ BZ {Xem{ZXo©emo§ H m nmbZ H aZo hoVw à`mgaV h¡& 2018-19 hoVw narjm {dH ën Ho gmW {dÎmr` {ddaUmo§ H$s àUmbr AnZm gH Vm h¡& {dÎmr` {ddaUmo§ na boIm narjm {anmoQ© _o§ J¡a-g§emo{YV boIm narjm Modifi ed opinion(s) in Audit Report – Bank may move {dH ën h¡& towards a regime of fi nancial statements with unmodifi ed The Management endeavours to confi rm to the guidelines. audit opinion. The Audit Report on Financial Statements for 2018-19 has unmodifi ed audit opinion. 9.2.4 Am§V[aH$ boIm-narjH$ H$s [anmo{Q>ªJ - Am§V[aH$ boIm-narjH$ {ZarjU Ed§ boIm-narjm Ho g^r _hËdnyU© {ZîH fmoª H$mo gyMZm Ed§ {ZXoeH$-‘§S>b H$s boIm-narjm g{‘{V (Egr~r) H$mo grYo [anmoQ>© Cn`wº {ZXoemo§ hoVw ~moS© H$s boIm-narjm g{_{V Ho g_j aIm OmVm h¡& H$a gH$Vo h¢& Egr~r Ho {ZXoemo§ H$m Vwa§V AZwnmbZ {H$`m OmVm h¡ Am¡a Egr~r H$mo Bg Reporting of Internal Auditor – The Internal Auditor Ho$ Vm{H©$H$ g_mYmZ VH$ à{VgyMZm {anmoQ© àñVwV H$s OmVr h¡& may report directly to the Audit Committee of the Board All important inspection and audit fi ndings are placed (ACB) before the Audit Committee of the Board for information and suitable directions. The directions of ACB are promptly complied with and feedback reports are submitted to ACB till its logical ends.

10. AmMma g§{hVm 10. Code of Conduct {ZXoeH$ _§Sb Ûmam 17.12.2005 H$mo AmMma g§{hVm V¡`ma H$s JB©& `h nwpîQ The Board framed Code of Conduct on 17.12.2005. It is hereby affi rmed that Board members and General Managers of H$s OmVr h¡ {H$ dm{f©H$ AmYma na {ZXoeH$ _§Sb Ho gXñ`mo§ VWm ~¢H$ Ho _hm the Bank have complied with this requirement on Annual basis. à~§YH$mo§ Ûmam BZH$m AZwnmbZ {H$`m J`m& Bg {anmoQ© Ho A§V _o§ Bg Ame` H$s A declaration to this effect is attached at the end of this report KmofUm g§b¾ h¡& 11. Means of Communication 11. g§gyMZm Ho _mÜ`_ 11.1 Ì¡_m{gH$ {dÎmr` n{aUm_ {ZYm©{aV g_` Ho ^rVa Eogo ñQm°H$ EŠgMo§Omo§ 11.1 Quarterly fi nancial results are submitted within the time , frame, to the Stock Exchanges where the shares of the Bank are H$mo àñVwV {H$E JE Ohm± ~¢H$ Ho eoà gyMr~Õ h¢& BgHo A{V{aº Ì¡_m{gH$ listed. Further, the quarterly fi nancial results are also published {dÎmr` n{aUm_ H$_ go H$_ EH$ amîQ—r` g_mMma-nÌ Am¡a _§Jbyé Ho EH$ joÌr` in at least one national newspaper and one regional language ^mfm Ho g_mMma-nÌ _o§ ^r àH$m{eV {H$E JE h¢& newspaper based at Mangaluru. df© 2018-19 Ho Xm¡amZ Ì¡_m{gH$ {dÎmr` n{aUm_ g_mMma nÌmo§ _o§ {ZåZmZwgma During the year 2018-19, the quarterly fi nancial results were àH$m{eV {H$E JE: published in the newspapers as under:

{V_mhr g_mßV/~moS© H$s ~¡RH$ H$s VmarI A§J«oOr/joÌr` X¡{ZH$ H$m Zm_ Quarter ended/Date of Name of the English/ àH$meZ H$s VmarI Date of Publication Board Meeting Regional daily March 2018/ _mM© {~OZog bmB©Z, hmogm {XJ§Vm Am¡a OZgÎmm 28.05.2018 and 27.05.2018 26.05.2018 Business Line, Hosa Digantha and Jansatt Ed§ hmogm {XJÝVm, {~{µOZog ñQmÊSS© (A§JŒoµOr) Ed§ {~{µOZog ñQoÝSS© June 2018/ OyZ ({hÝXr) 12.08.2018 and 13.08.2018 11.08.2018 Hosa Digantha, Business Standard (English) and Ed§ Business Standard (Hindi) hmogm {XJÝVm, {~{µOZog ñQoÝSS© (A§JŒoµOr) Ed§ {~{µOZog ñQoÝSS© {gV§~a September 2018/ ({hÝXr) 14.11.2018 13.11.2018 Hosa Digantha, Business Standard (English) and Business Standard (Hindi) {Xg§~a December 2018/ CCX`dmUr, {~{µOZog ñQoÝSS©© (A§JŒoµOr) Ed§ {~{µOZog ñQoÝSS© ({hÝXr) 11.02.2019 Udayavani, Business Standard (English) and Business 12.02.2019 Standard (Hindi)

ANNUAL REPORT 2018-19 101 11.2^maVr` {dÎmr` {aµOd© n{aUm_~¢H Ûmam, ~¢H$g_`-g_` Ûmam Omar na àog Omar {dkpßV`m± {Xem{ZXo©emo§, {díbofH$mo§ Ho AZwgma H$mo {ZXoeH {H$`m 11.2 The fi nancial results, press releases issued by the Bank, J`m_§Sb àñVwVrH$aU Ûmam Eogo àË`m`mo{OV, gm_mÝ` eoàYmaH$ A{YH$mamo§ gyMZmH$s Amd{YH, ~mOma ê$n_yë` go SmQm g_rjm, eoà H$s Ym{aVm OmVr presentation made to analysts, general shareholder information, n¡QZ©h¡ Am¡a Am{X ~¢H Ho~¢H$ H$maJa H$s H$m`©-g§MmbZdo~gmB©Q (www.corpbank.com) hoVw CZ_o§ Amdí`H g§emoYZ _o§{H$`m ^r OmVm{Xò market price data and shareholding pattern etc. are also put on OmVoh¡& h¢& the website of the Bank (www.corpbank.com). 11.33.5 df©~¢H 2018-19 H$s Zr{V`mo§ Ho H$sXm¡amZ g_rjm Zm{_Vr dm{f©H/{Z`wº AmYma{ZXoeH$ naVWm H$s dV©_mZ OmVr {ZXoeH$mo§h¡ Am¡a 11.3 A brief resume of the Directors nominated/appointed H$m~XbVo EH$ n{aX¥í`g§{jßV n{aMÀm¡a ~mOma Bg {anmoQ©_m§Jmo§ HoHo gmWAZwê$n n¡am CZ_o§ g§. 3.9Amdí`H _o§ g§b¾ AmemoYZ h¡& {H$E during the year 2018-19 and the existing Directors is appended OmVo h¢& in this report under para No. 3.9. 12. General Shareholder Information 12.à.{Z. gm_mÝ` Ed§ _w.H$m.A. eoàYmaH$ - ^maV gyMZm gaH$ma Ûmam {Z`wº à~§Y {ZXoeH$ Ed§ _w»` 12.1 12.1 Particulars of Annual General Meeting: dm{f©H$ _hmg^m HoH$m`©nmbH$ {ddaU… A{YH$mar

Day & Date e{Zdma,29 OyZ 2019 {XZ Am¡a {XZm§H$ Saturday, 29th June 2019 g_` Time nydm©• 10.30/10.30 a.m. ñWmZ Venue ghòmpãX ^dZ, H$mnmo©aoeZ ~¢H$, àYmZ H$m`m©b` Ed§ H$mnmo©aoQ H$m`m©b`, _§Jbyé - 575 001 Millennium Building, Corporation Bank, Head Ofﬁ ce & Corporate Ofﬁ ce, Mangaluru – 575 001 {dÎmr` df© Financial Year Aà¡b 2018 go _mM© 2019/April 2018 to March 2019 dm{f©H$ _hmg^m H$aZo hoVw boIm-~hr ~§Xr Ho$ {XZm§H$ 21.06.2019 go 29.06.2019 (XmoZmo§ {XZ g{hV) Dates of Book Closure for the AGM 21.06.2019 to 29.06.2019 (both days inclusive)

12.2 gyMr~Õ ñQm°H$ EŠgMo§O Am¡a ñQm°H$ Hy$Q 12.2 Stock Exchanges listed & stock code

Stock Exchange ñQm°H$ Hy$Q H«$.g§. ñQm°H$ EŠgMo§O Stock WmoH$ H$O© gyMrH$aU Hy$Q Sl. No. Wholesale Debt Listing Code Code 1. ~r Eg B© {b., àW_ Vb, Ý`y Q—oqSJ qaJ, amoVwÝSm {~pëS§J, nr.Oo. Qmdg©, 532179 eyÝ` (gyMr~Õ Zht) Xbmb ñQ—rQ, ’$moQ©, _w§~B© - 400 001 NIL (not Listed ) BSE Ltd., 1st Floor, New Trading Ring, Rotunda Building, P. J. Towers, Dalal Street, Fort, MUMBAI – 400 001 2. ZoeZb ñQm°H$ EŠgMo§O Am°’$ B§{S`m {b{_QoS (EZEgB©), EŠgMo§O ßbmOm, 5 dm± Vb, CORPBANK à{V^y{V àH$ma : BB ßbm°Q g§. gr/1, Or ãbm°H$, ~m±Ðm Hw$bm© H$måßboŠg, ~m±Ðm (ny), _w§~B© - 400 051 Security Type: BB National Stock Exchange of India Ltd. (NSE), Exchange Plaza, à{V^y{V : CORB 5th Floor, Plot No. C/1, G Block, Bandra Kurla Complex, Bandra (E), Security : CORB MUMBAI – 400 051

H$m.{Z.AmJm_r {dÎmr` df© -2019-20 ^maV gaH$ma hoVw gyMrH$aU Ûmam {Z`wº ewëH$ H$m`©nmbH$ Cnamoº ñQm°H$ {ZXoeH$ EŠgMo§Omo§ The Listing Fee for the next fi nancial year 2019-20, for Equity Listing, has already been remitted to the above Stock Exchanges H$moJ¡.H$m.{Z. VWm Z¡eZb ñQm°H$ - EŠgMo§O ^maV gaH$ma/^maVr` Am°\ B§{S`m [aµOd©{b{_QoS ~¢H$ H$mo Ûmam G$U Zm{_V gyMrH$aU J¡a- ewëH$ ^r 26.04.2019 H$mo {dào{fV H$a {X`m J`m h¡& and also the Debt Listing Fee remitted to National Stock H$m`©nmbH$ {ZXoeH$ Exchange of India Ltd., on 26.04.2019. eo.{Z.12.3 ~¢H$ H$m {dÎmr` - H¡ eoàYmaH$mo§bo§Sa 1 Aà¡b Ûmam go {Zdm©{MV 31 _mM© {ZXoeH$ VH$ 12 - _mhñdV§Ì H$s {ZXoeH$ Ad{Y 12.3 The fi nancial calendar of the Bank is from 1st April to g.bo.{Z.H$m h¡& - gZXr boImH$ma {ZXoeH$ - ñdV§Ì {ZXoeH$ 31st March, comprising 12 months period.

102 12.3.1 {dÎmr` {ZînmXZ {ZåZmZwgma h¡… 12.3.1 Financial performance is as under: (` bmIm|> _|/ ` in lakhs) g‘má {V‘mhr Quarter ended g‘má df© Year ended g‘má df© Year ended 31.03.2019 31.03.2018 H«$. 31.03.2019 31.03.2018 31.03.2019 31.03.2018 (boIm- (boIm- g§. {ddaU (boIm- 31.12.2018 (boIm- (boIm- (boIm- nar{jV) nar{jV) Sl. Particulars (g_r{jV) nar{jV) 31.12.2018 nar{jV) nar{jV) nar{jV) g_o{H$V g_o{H$V No. 31.03.2019 31.03.2018 31.03.2019 31.03.2018 31.03.2019 31.03.2018 (Reviewed) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) Consolidated Consolidated 1. A{O©V ã`mO (H$)+(I)+(J)+(K) 364337.13 381810.09 419309.94 1562263.03 1762833.27 1562265.40 1762836.00 Interest earned (a)+(b)+(c)+(d) (H$) A{J«‘m|o§/{~bmo§ na ã`mO/~Åm (a) Interest / Discount on Advances / 253823.59 269688.19 274959.19 1099259.45 1147120.84 1099261.82 1147123.57 Bills

(I) {Zdoemo§ na Am` 99764.51 102583.69 127059.45 412020.01 516438.96 412020.01 516438.96 (b) Income on Investments (J) ^maVr` [aµOd© ~¢H$ Ho$ nmg eof VWm AÝ` A§Va-~¢H$ {Z{Y`mo§ na ã`mO 885.93 626.47 695.41 2285.31 8170.14 2285.31 8170.14 (c ) Interest on balances with Reserve Bank of India and other inter-bank funds

(K) AÝ` 9863.10 8911.74 16595.89 48698.26 91103.33 48698.26 91103.33 (d) Others 2. AÝ` Am` Other Income 54428.45 29422.18 44935.49 187206.87 231308.08 188143.59 231904.27 3. Hw$b Am` (1+2) 418765.58 411232.27 464245.43 1749469.90 1994141.35 1750408.99 1994740.27 TOTAL INCOME (1+2) 4. ì`` {H$`m J`m ã`mO 245974.91 251508.30 289237.02 1011416.60 1279010.86 1011391.23 1278941.83 Interest Expended 5. (i) + (ii) n[aMmbZ ì`` 103413.81 82614.09 76064.27 348606.81 320088.86 348702.71 320195.68 Operating Expenses (i) + (ii) (i) H$_©Mmar bmJV 48572.30 43115.92 39491.53 174694.71 159282.24 174747.00 159343.39 (i) Employees cost (ii) AÝ` n[aMmbZ ì`` 54841.51 39498.17 36572.74 173912.10 160806.62 173955.71 160852.29 (ii) Other Operating Expenses (ã`mO ì`` H$mo Nmo‹SH$a Hw$b ì`` Ho$ 10% go A{YH$ g^r _Xmo§ H$mo AbJ go Xem©`m OmE) ------(All items exceeding 10% of the total expenditure excluding interest expenditure may be shown separately) 6. Hw$b ì`` (4+5) (àmdYmZmo§ Am¡a AmH$pñ_H$VmAmo§ H$mo Nmo‹SH$a) TOTAL EXPENDITURE (4+5) 349388.72 334122.39 365301.29 1360023.41 1599099.72 1360093.94 1599137.51 (Excluding Provisions and contingencies)

ANNUAL REPORT 2018-19 103 (` bmIm|> _|/ ` in lakhs) g‘má {V‘mhr Quarter ended g‘má df© Year ended g‘má df© Year ended 31.03.2019 31.03.2018 H«$. 31.03.2019 31.03.2018 31.03.2019 31.03.2018 (boIm- (boIm- g§. {ddaU (boIm- 31.12.2018 (boIm- (boIm- (boIm- nar{jV) nar{jV) Sl. Particulars (g_r{jV) nar{jV) 31.12.2018 nar{jV) nar{jV) nar{jV) g_o{H$V g_o{H$V No. 31.03.2019 31.03.2018 31.03.2019 31.03.2018 31.03.2019 31.03.2018 (Reviewed) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) Consolidated Consolidated 7. àmdYmZmo§ Am¡a AmH$pñ_H$VmAmo§ go nyd© n[aMmbZ bm^ (3-6) Operating Profi t before Provisions and 69376.86 77109.88 98944.14 389446.49 395041.63 390315.05 395602.76 Contingencies (3-6) 8. àmdYmZ (H$a Ho$ Abmdm) Am¡a AmH$pñ_H$VmE§ 876777.29 75511.82 402220.95 1194315.02 1063127.45 1194315.02 1063127.45 Provisions (other than tax) and Contingencies BZ_| go J¡a-{ZînmXH$ AmpñV`m| hoVw àmdYmZ 850587.16 84227.73 444129.15 1158513.72 1098213.51 1158513.72 1098213.51 of which provisions for non- performing assets 9. AgmYmaU _Xo§ 0 0 0 0 0 0 0 Exceptional items 10. H$a go nyd© gm_mÝ` {H«$`mH$bmnm| go 7 8 9 bm^ (+)/hm{Z(-) ( - - ) -807400.43 1598.06 -303276.81 -804868.53 -668085.82 -803999.97 -667524.69 Profi t (+)/Loss (-) from ordinary activities before tax (7-8-9) 11. H$a ì`` Tax Expense -149251.24 -4455.01 -119437.17 -171570.23 -262691.50 -171470.08 -262531.50 12. H$a Ho$ ~mX gm_mÝ` {H«$`mH$bmnm| go {Zdb bm^ (+)/hm{Z(-) (10-11) -658149.19 6053.07 -183839.64 -633298.30 -405394.32 -632529.89 -404993.19 Net Profi t (+)/Loss (-) from ordinary activities after tax (10–11) 13. AgmYmaU _Xo§ (H$a ì``mo§ H$m {Zdb) 0 0 0 0 0 0 0 Extraordinary items (net of tax expense) 14. Ad{Y hoVw {Zdb bm^ (+)/hm{Z (-) (12-13) -658149.19 6053.07 -183839.64 -633298.30 -405394.32 -632529.89 -404993.19 Net Profi t (+)/Loss (-) for the period (12–13) 15. àXÎm B©pŠdQr eoà ny±Or (eoà H$m A§{H$V _yë` `2 h¡) Paid-up equity share capital (Face value 119883.68 50691.92 33310.97 119883.68 33310.97 119883.68 33310.97 of the Share is `2)

16. nwZ_y©ë`Z Ama{jV {Z{Y`mo§ H$mo Nmo‹SH$a Ama{jV {Z{Y`m± ({nNbo boIm-df© Ho VwbZ-nÌ Ho AZwgma) 1446384.50 986592.68 986592.68 1446384.50 986592.68 1451349.56 990789.36 Reserves excluding revaluation reserves (as per balance sheet of previous accounting year)

104 (` bmIm|> _|/ ` in lakhs) g‘má {V‘mhr Quarter ended g‘má df© Year ended g‘má df© Year ended 31.03.2019 31.03.2018 H«$. 31.03.2019 31.03.2018 31.03.2019 31.03.2018 (boIm- (boIm- g§. {ddaU (boIm- 31.12.2018 (boIm- (boIm- (boIm- nar{jV) nar{jV) Sl. Particulars (g_r{jV) nar{jV) 31.12.2018 nar{jV) nar{jV) nar{jV) g_o{H$V g_o{H$V No. 31.03.2019 31.03.2018 31.03.2019 31.03.2018 31.03.2019 31.03.2018 (Reviewed) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) Consolidated Consolidated 17. {díbofUmË_H$ AZwnmV Analytical Ratios (i) ^maV gaH$ma Ûmam Ym[aV eo`amo§ H$m à{VeV 93.50% 86.77% 79.87% 93.50% 79.87% 93.50% 79.87% (i) Percentage of Shares held by Government of India

(ii) ny±Or n`m©ßVVm AZwnmV (ii) Capital Adequacy Ratio

~ogb II Basel II NA NA NA NA NA NA NA {Q>à I Tier I NA NA NA NA NA NA NA {Q>à II Tier II NA NA NA NA NA NA NA ~ogb III Basel III 12.30% 11.12% 9.23% 12.30% 9.23% NA NA {Q>à I Tier I 10.52% 9.10% 7.27% 10.52% 7.27% NA NA {Q>à II Tier II 1.78% 2.02% 1.96% 1.78% 1.96% NA NA (iii) ` à{V eoà AO©Z (B©nrEg) ( ) (iii) Earning Per Share (EPS) (in `) H$) Bg Ad{Y hoVw, Mmby df© VWm {nN>bo df© Ho$ {bE AgmYmaU _Xmo§ (H$a ì``mo§ H$m {Zdb) go nhbo _yb^yV VWm VZyH¥$V B©nrEg (dm{f©H$sH¥$V Zht) -25.27 0.25 -11.04 -30.06 -35.30 -30.03 -35.26 a) Basic and diluted EPS before Extraordinary items (net of tax expense) for the period, for the year to date and for the previous year ( not annualised) I) Bg Ad{Y hoVw, Mmby df© VWm {nNbo df© Ho {bE AgmYmaU _Xmo§ Ho ~mX _yb^yV VWm VZyH¥ V B©nrEg (dm{f©H$sH¥ V Zht) -25.27 0.25 -11.04 -30.06 -35.30 -30.03 -35.26 b) Basic and diluted EPS after Extraordinary items for the period, for the year to date and for the previous year (not annualised) (iv) EZnrE AZwnmV (iv) NPA Ratios

(H$) gH$b EZnrE 2072367.87 2192142.16 2221343.86 2072367.87 2221343.86 NA NA (a) Gross NPA

(I) {Zdb EZnrE 692663.86 1352122.16 1407701.58 692663.86 1407701.58 NA NA (b) Net NPA

ANNUAL REPORT 2018-19 105 (` bmIm|> _|/ ` in lakhs) g‘má {V‘mhr Quarter ended g‘má df© Year ended g‘má df© Year ended 31.03.2019 31.03.2018 H«$. 31.03.2019 31.03.2018 31.03.2019 31.03.2018 (boIm- (boIm- g§. {ddaU (boIm- 31.12.2018 (boIm- (boIm- (boIm- nar{jV) nar{jV) Sl. Particulars (g_r{jV) nar{jV) 31.12.2018 nar{jV) nar{jV) nar{jV) g_o{H$V g_o{H$V No. 31.03.2019 31.03.2018 31.03.2019 31.03.2018 31.03.2019 31.03.2018 (Reviewed) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) Consolidated Consolidated

(J) gH$b EZnrE H$m % 15.35 17.36 17.35 15.35 17.35 NA NA (c ) % of Gross NPA

(K) {Zdb EZnrE H$m % 5.71 11.47 11.74 5.71 11.74 NA NA (d) % of Net NPA (v) AmpñV`mo§ na à{Vbm^ (dm{f©H$sH¥$V) -13.02 0.12 -3.10 -3.14 -1.67 NA NA (v) Return on Assets (annualised) 18. gmd©O{ZH$ eo`aYm[aVm Public Shareholding

eo`amo§ H$s g§»`m (bmI _|) 3893.84 3353.44 3353.44 3893.84 3353.44 3893.84 3353.44 Number of Shares (in lakhs)

eo`aYm[aVm H$m à{VeV 6.50% 13.23% 20.13% 6.50% 20.13% 6.50% 20.13% Percentage of Shareholding 19. àdV©H$mo§ Am¡a àdV©H$ g_yh H$s eo`aYm[aVm Promoters and Promoter Group Shareholding

(H$) {JadrH¥$V/^maJ«ñV (a) Pledged/ Encumbered eoàmo§ H$s g§»`m Number of Shares 0 0 0 0 0 0 0 eoàmo§ H$m à{VeV (àdV©H$ VWm àdV©H$ g_yh H$s Hw$b eoàYm[aVm Ho$ % Ho ê$n _o§) 0 0 0 0 0 0 0 Percentage of Shares ( as a % of the total shareholding of promoter and promoter group) eoàmo§ H$m à{VeV (H§$nZr Ho$ Hw$b eoà ny±Or Ho$ % Ho$ ê$n _o§) 0 0 0 0 0 0 0 Percentage of Shares (as a % of the total share capital of the Company)

(I) ^ma-a{hV (b) Non-encumbered

eo`amo§ H$s g§»`m (bmIm| _|) 59941.84 25345.96 16655.49 59941.84 16655.49 59941.84 16655.49 Number of Shares (in lakhs)

106 (` bmIm|> _|/ ` in lakhs) g‘má {V‘mhr Quarter ended g‘má df© Year ended g‘má df© Year ended 31.03.2019 31.03.2018 H«$. 31.03.2019 31.03.2018 31.03.2019 31.03.2018 (boIm- (boIm- g§. {ddaU (boIm- 31.12.2018 (boIm- (boIm- (boIm- nar{jV) nar{jV) Sl. Particulars (g_r{jV) nar{jV) 31.12.2018 nar{jV) nar{jV) nar{jV) g_o{H$V g_o{H$V No. 31.03.2019 31.03.2018 31.03.2019 31.03.2018 31.03.2019 31.03.2018 (Reviewed) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) Consolidated Consolidated eoàmo§ H$m à{VeV (àdV©H$ VWm àdV©H$ g_yh H$s Hw$b eoàYm[aVm Ho$ % Ho$ ê$n _o§) 100% 100% 100% 100% 100% 100% 100% Percentage of Shares ( as a % of the total shareholding of promoter and promoter group) eoàmo§ H$m à{VeV (H§$nZr H$s eoà ny±Or Ho$ % Ho$ ê$n _o§) 93.50% 86.77% 79.87% 93.50% 79.87% 93.50% 79.87% Percentage of Shares (as a % of the total share capital of the Company) ~¢H$ H$s nyU© ñdm{_Ëd dmbr AZwf§Jr AWm©V² H$mn© ~¢H$ {gŠ`w{aQrµO {b. g{hV Consolidated fi nancial statement is inclusive of the wholly g_o{H$V {dÎmr` {ddaU& owned subsidiary of the Bank, namely, CorpBank Securities Ltd. 12.4 ñQm°H$ _mH}$Q SmQm - {dÎmr` df© 2018-19 Ho Xm¡amZ Z¡eZb 12.4 Stock Market Data - The monthly high & low quotations ñQm°H$ EŠgMo§O (EZEgB©) Am¡a _w§~B© ñQm°H$ EŠgMo§O (~rEgB©) _o§ and the volume of shares traded on National Stock Exchange boZXoZ {H$E JE eoàmo§ H$s _mÌm Am¡a _m{gH$ A{YH$V_ Am¡a Ý`yZV_ Xa (NSE) and the BSE Ltd., – Mumbai during the fi nancial year {ZåZmZwgma h¡… 2018-19 are as follows: EZEgB© NSE ~rEgB© BSE ‘mh Ho$ Xm¡amZ ‘mh Ho$ Xm¡amZ _mh month A{YH$V_ Ý`yZV_ _mÌm (g§.) A{YH$V_ Ý`yZV_ _mÌm (g§.) High (`) Low (`) Volume (Nos.) High (`) Low (`) Volume (Nos.) during the during the month month Aà¡b APRIL 32.15 29.60 4950775 32.10 29.65 5647980 _B© MAY 29.70 24.70 5073075 29.80 24.80 5608800 OyZ JUNE 32.95 25.35 7368119 33.00 25.50 14465670 OwbmB© JULY 28.50 23.75 9897364 28.60 23.90 1138715 AJñV AUGUST 28.80 26.95 6468748 28.75 26.90 752032 {gV§~a SEPTEMBER 28.35 24.85 5056253 28.30 24.50 713559 Aºy$~a OCTOBER 26.80 21.70 5403214 26.60 21.60 1106626 Zd§~a NOVEMBER 28.80 26.30 6851775 28.95 26.30 8513559 {Xg§~a DECEMBER 29.55 25.00 11426187 29.50 25.00 1039276 OZdar JANUARY 29.45 25.75 4950744 29.40 26.00 484509 ’$adar FEBRUARY 30.85 24.30 22877313 30.90 24.30 2410609 _mM© MARCH 30.60 27.90 8260854 30.60 27.80 768622

ANNUAL REPORT 2018-19 107 12.4.1 df© 2018-19 Ho$ Xm¡amZ Eg EÊS> nr grEZEŠg {ZâQ>r _o 12.4.1 Performance of Bank’s share price in comparison CVma-MS>md H$s VwbZm _o§ ~¢H$ H$s eo`a H$s_V H$m {ZînmXZ ZrMo with the movement of S&P CNX Nifty during the year Xem©`m `m J`m h¡: 2018-19 is shown here below.

eo`a _yë` CVma-M‹T>md (EZEgB©) Share Price Movement (NSE) ( `)

12.5 à{V eo`a Am§H$‹So 12.5 Per Share Data 2014-15 2015-16 2016-17 2017-18 2018-19 A§{H$V _yë` Face Value (`) 2** 2 2 2 2

31 _mM© H$s pñW{V Ho$ AZwgma ~mOma Xa (`) 52.60 38.95 52.65 30.65 28.75 Market quotation as on 31st March (`)

àËòH$ `10 H$m à{V eoà AO©Z (`) 6.97* -5.48 5.17 -35.30 -30.06 Earning Per Share of `10 each (`) àËòH$ `10 H$m à{V eoà bm^m§e (`) {d^pŠV na `2 H$m à{V eoà bm^m§e 1.40* NIL NIL NIL NIL Dividend per share of `10 each (`) Dividend per share of `2 each on split

~hr _yë` Book Value (`) 125.16* 110.94* 110.82* 65.12* 27.63* bm^m§e AXm`Jr Dividend payout (%) 20.07 NIL NIL NIL NIL ** B©p¹Qr eoà H$m A§{H$V _yë` 22.01.2015 go `10 go `2 VH$ {d^ŠV hwAm& * `2 àËòH$ B©p¹Qr eoà naŸ& ** The Face value of the equity share was split from `10/- to `2/- effective from 22.01.2015. * on Equity Share of `2/- each.

108 12.6 eoà A§VaU EOo§Q 12.6 Share Transfer Agent _ogg© H$mdr© {\ ZQoH$ àmBdoQ {b.(nhbo H§$ß`yQa eoà àmBdoQ {b. Wm), M/s Karvy Fintech Pvt. Ltd. (formerly known as Karvy Computershare Pvt. Ltd.), Hyderabad is the Registrar and h¡Xam~mX ~¢H$ Ho a{OñQ—ma Am¡a eoà A§VaU EOo§Q h¢, {OÝho§ nVo _o§ n{adV©Z, Share Transfer Agent of the Bank, to whom communications ~¢H$ A{YXoe _o§ n{adV©Z, EZEgrEM A{YXoe (H$mJµOr eoàmo§ Ho _m_bo _o§), regarding change of address, change in Bank Mandate, NACH eoàmo§ Ho A§VaU BË`m{X Ho ~mao _o§ g§gyMZmE§ ôOr Om gH$Vr h¢& eoà A§VaU Mandate (in case of shares in physical mode), transfer of shares, EOo§Q H$m nVm {ZåZmZwgma h¡… etc. could be addressed. The address of Share Transfer Agent is as under: _ogg© H$mdr© {\ ZQoH$ àmBdoQ {b{_QoS M/s Karvy Fintech Pvt. Ltd. `y{ZQ… H$mnmo©aoeZ ~¢H$ Unit: Corporation Bank H$mdr© gobo{Z`_ Qm°da ~r, ßbmQ g§.31-32, J{M~modbr, Karvy Selenium Tower B, Plot No. 31-32, Gachibowli, \ m`Zm§{g`b {SñQ—rŠQ, ZmZH$am_JwSm, h¡Xam~mX - 500 032 Financial District, Nanakramguda, Hyderabad - 500 032 (Tel: 040-67162222: Fax: 040-23001153) 040-67162222 040-23001153 (Xya^mf… : \¡ Šg… ) Toll Free No. 1-800-3454-001 Qmob \Œ r Z§~a 1-800-3454-001 (E-mail: [email protected]) (B©-_ob… [email protected]) 12.7 Share Transfer System 12.7 eoà A§VaU àUmbr 12.7.1 With effect from 27th March, 2004, a Share Transfer Committee of the Board of Directors was constituted with 12.7.1 ~¢H$ Ho B©p¹Qr eoàmo§ go g§~§{YV g^r _m_bmo§ Ho {ZnQmZ Ho A{YH$ma powers to deal with all matters pertaining to equity shares of the Ho gmW 27 _mM©, 2004 go {ZXoeH$ _§Sb H$s eoà A§VaU g{_{V J{RV Bank. The Committee had been meeting at frequent intervals H$s JB©& eoàmo§ H$m Ëd{aV A§VaU H$aZo, eoà à_mU nÌ H$s Xygar à{V Omar for effecting speedy transfer of shares, issuance of duplicate share certifi cates and re-materialisation and is responsible for H$aZo VWm {a_o{Q{a`bmµOoeZ H$aZo hoVw Cº g{_{V ~ma§~ma A§Vambmo§ _o§ ~¡RHo§ submission of information in this regard to the Board. The H$aVr ahr h¡ Am¡a `h Bg g§~§Y _o§ ~moS© H$mo gyMZm àñVwV H$aZo hoVw CÎmaXm`r Share Transfers were approved by the Committee 4 times in h¡ & df© 2018-19 Ho Xm¡amZ eoà A§VaU g{_{V H$s ~¡RH$ _o§ g{_{V Ûmam 4 the Share Transfer Committee Meetings and on 15 occasions ~ma eoà A§VaU H$m AZw_moXZ {H$`m J`m VWm n{anÌ g§H$ën Ho O{aE 15 through circular resolutions, during the year 2018-19. Adgamo§ na {H$`m J`m& 12.7.2 Number of share transfers effected during the year 2018-19 was 50000 and the pendency of share transfers as at 31st March, 2019 was NIL. 12.7.2 df© 2018-19 Ho Xm¡amZ {H$E JE eoà A§VaUmo§ H$s g§»`m 50000 h¡ Am¡a 31 _mM©, 2019 H$mo H$moB© eoà A§VaU b§{~V Zht h¡& 12.7.3 Permanent Account Number (PAN) : As per SEBI directive, submission of PAN by the Transferee/s, are followed for effecting following transactions of Physical shares:-Transfer 12.7.3 ñWmB© ImVm g§»`m (n¡Z): go~r Ho {ZXoemo§ Ho AZwgma, H$mJOr of Shares, Deletion of name of the deceased shareholder/s, eoàmo§ Ho {ZåZ{b{IV boZXoZ H$aZo Ho {bE A§V{aVr Ûmam n¡Z H$mS© H$s Transmission of shares to the legal heir/s and Transposition of A{Yà_m{UV à{V àñVwV H$aZm h¡…- eoàmo§ H$m A§VaU, _¥V eoàYmaH$(H$mo§) Ho shares- when there is a change in the order of names, etc. Zm_ H$m {ZagZ, H$mZyZr dm{agmo§ H$mo eoàmo§ H$m CÎmam{YH$ma A§VaU Am¡a eoàmo§ 12.7.4 Green Initiative in Corporate Governance H$m H«$_ n{adV©Z - O~ Zm_ Ho HŒ _ _o§ H$moB© n{adV©Z hmo, Am{X& As part of the Green initiative in Corporate Governance, the Bank has been sending all communications and documents 12.7.4 H$mnmo©aoQ A{êmgZ _o§ n`m©daU gOJVm nhb… such as Notices of AGM and other General Meetings, explanatory statements thereto, Annual Reports, Balance Sheets, H$mnmo©aoQ A{êmgZ _o§ n`m©daU gOJVm nhb Ho VhV, ~¢H$ g^r gyMZmAmo§ Directors’ Reports, Auditors Report and other shareholder Am¡a dm{f©H$ _hmg^m Ed§ AÝ` _hmg^m H$s gyMZm, CgHo ì`m»`mË_H$ communications including intimation regarding noting of {ddaU, dm{f©H$ {anmoQoª, VwbZ-nÌ, {ZXoeH$mo§ H$s {anmoQoª, boIm-narjH$mo§ H$s Change of Address, intimation of payment of Dividend through , , NACH, intimation of Transfer of Shares etc., in electronic {anmoQ© Am¡a nVo _o§ n{adV©Z EZgrEM Ho µO{aE bm^m§e Ho ^wJVmZ H$s gyMZm form to the e-mail address registered by the shareholders either eoàmo§ Ho A§VaU H$s gyMZm Am{X g{hV AÝ` eoàYmaH$ g§gyMZmE§ eoàYmaH$mo§ with the Bank or with the Depositories as the case may be. Ûmam `WmpñW{V ~¢H$ go `m {Snm°{µOQ{a`mo§ go n§OrH¥ V B©-_ob nVo na BboŠQ—m°{ZH$ Shareholders are hereby requested to register/update their

ANNUAL REPORT 2018-19 109 ê$n go ôOVm ahm h¡& eoàYmaH$mo§ go EVX² Ûmam AZwamoY {H$`m OmVm h¡ email ids with their Depository Participants (DPs) or M/s {H$ do AnZr B©-_ob AmB©Sr H$mo AnZo {Snm°{µOQar nm{Q©{gno§Q (Srnr) Karvy Fintech Pvt. Ltd., the Registrar of the Bank, as the ., , / case may be, at the earliest, to enable the Bank to be a part `m _ogg© H$mdr© {\ ZQoH$ àm.{b Omo ~¢H$ H$m a{OñQ—ma h¡ go n§OrH¥ V of this green initiative. AÚVZ H$admE§ Vm{H$ ~¢H$ Bg h{aV nhb _o§ gh^mJr hmo gHo & Shareholders who have not provided/updated their email - / addresses and/or expressed their desire/request to receive {OZ eoàYmaH$mo§ Zo AnZo B© _ob nVo Zht {XE AÚVZ Zht {H$E h¢ Am¡a the above shareholder communications in printed copies BboŠQ—m°{ZH$ _moS Ho ~Om` CgH$s _w{ÐV à{V`m± (hmS© H$m°nr) àmßV H$aZm MmhVo (hard copies) instead of in electronic mode, shall be sent the h¢/H$aZo H$m AZwamoY H$aVo h¢, CÝho§ g§gyMZmAmo§/gyMZmAmo§ Am¡a AÝ` XñVmdoµOmo§ communications/notices and other documents, as mentioned H$s hmS© H$m°{n`m± hr ôOr OmE§Jr& {OZ eoàYmaH$mo§ H$mo B©-_ob go ôOr dm{f©H$ above, in hard copies only. It is also ensured to send hard copies {anmoQmoª H$s gm°âQ H$m°{n`m± dmng AmVr h¢, CÝho§ hmS© H$m°{n`m± ôOZm ^r gw{Z{üV of the Annual Reports to such of the shareholders in whose {H$`m OmVm h¡& case the soft copies of the Annual Reports sent by email have bounced back. eoàYmaH$mo§ go `h ^r AZwamoY h¡ {H$ do AnZm g§nH© {ddaU O¡go \$moZ/ Shareholders are also requested to communicate/update their _mo~mB©b g§»`m {Snm°{OQar nm{Q©{gno§Q/~¢H$ Ho a{OñQ—ma H$mo gy{MV H$ao§ Vm{H$ contact details like phone/mobile numbers to/with their depository participant/registrar of the Bank, to enable the Bank ~¢H$ OêaV Ho g_` CZgo g§nH© H$a gHo§ & to contact them in case of need. 12.8 eoà-Ym{aVm H$m g§{dVaU 12.8 Distribution of Shareholding 12.8.1 31.03.2018 H$s pñW{V H$s VwbZm _o§ 31.03.2019 H$mo eoà 12.8.1 Distribution of shareholding as on 31.03.2019 vis-à- Ym{aVm H$m g§{dVaU… vis position as at 31.03.2018 :

`Wm 31.03.2019 H$s pñW{V Ho$ AZwgma (A§._y. `2/-) `Wm 31.03.2018 H$s pñW{V Ho AZwgma (A§._y. `2/-) As on 31.03.2019 (FV `2/-) As on 31.03.2018 (FV `2/-) Ym[aV B©pŠdQr eoà eoàYmaH$mo§ Holding Equity Shares eoàYmaH$mo§ Hw$b H$m Hw$b H$m H$s g§. Hw$b H$m Hw$b H$m H$s g§. eoàmo§ H$s g§. No. of eoàmo§ H$s g§. % No. of % No. of Shares % % No. of Shares % to % to total % to total Share % to total Shareholders total holders Upto 5000 VH$ 80778 89.68 35218860 0.59 74535 98.15 34918358 2.10

5001 go to 10000 VH$ 3697 4.10 15141227 0.25 716 0.94 5356238 0.32

10001 go to 20000 VH$ 4602 5.11 40527685 0.68 351 0.46 4934447 0.30

20001 go to 30000 VH$ 548 0.61 6139573 0.10 128 0.17 3185028 0.19

30001 go to 40000 VH$ 115 0.13 2048291 0.03 45 0.06 1549938 0.09

40001 go to 50000 VH$ 75 0.08 1703731 0.03 28 0.04 1272534 0.08

50001 go to 100000 VH$ 125 0.14 4308152 0.07 65 0.09 4478185 0.27

100001 d & A{YH$ above 131 0.15 5889096515 98.25 69 0.09 16098538 96.6

Hw$b TOTAL 90071 100.00 5994184034 100.00 75937 100.00 166554861 100.00

110 ñd{Z12.8.2 31.3.2019 - H$s ñdV§Ì pñW{V {ZXoeH$ Ho AZwgma eoàYm{aVm n¡QZ© 12.8.2 Shareholding Pattern as on 31.03.2019 Ym[aV eoàmo§ H$s g§. No. of shares held Hw$b Ym[aVm H«$. g§. H$m % Sl. No. eoàYmaH$mo§ H$m àdJ© Category of Shareholders H$mJµOr Sr_¡Q Hw$b % to total Physical Demat Total holding 1. ^maV Ho amîQ—n{V President of India 0 5604799271 5604799271 93.50 2. ^maVr` OrdZ ~r_m {ZJ_ LIC of India ^maVr` OrdZ ~r_m {ZJ_ _mH}$Q> ßbg-1 0 216948648 216948648 3.62 LIC of India Market Plus –1 ^maVr` OrdZ ~r_m {ZJ_ - doëW ßbg/LIC of India – Wealth Plus 3. ^maVr` {dÎmr` g§ñWmE§ Indian Financial Institutions 0 9789381 9789381 0.16 4. å`yMwAb ’§$S> Am¡a `yQ>rAmB© Mutual Funds & UTI 500 24858941 24859441 0.41 5. {ZJ{_V {ZH$m` (AmB©gr~r) Bodies Corporate (ICBs) 61500 7015198 7076698 0.12 6. ~¢H$ Banks 1000 1239482 1240482 0.02 7. {dXoer g§ñWmJV {ZdoeH$ Foreign Institutional Investors 5500 18122237 18127737 0.30 8. Amogr~r OCBs 25500 0 25500 0.00 9. EZAmaAmB© NRIs 299500 2695180 2994680 0.05 10. EZ~rE\$gr NBFC 0 23445 23445 0.00 11. {Zdmgr ì`{º Resident Individuals 2779766 105518985 108298751 1.81 `moJ TOTAL 3173266 5991010768 5994184034 100 12.8.3 31 _mM© 2019 H$mo Hw$b {dXoer eoàYm[aV (EZAmaAmB©, Amogr~r 12.8.3 The total foreign shareholding (NRIs, OCBs and Ed§ E\$AmB©AmB©) 0.35% Wr Omo ~¢H$ H$s Hw$b àXÎm ny±Or Ho$ 20% Ho$ {ZYm©[aV FIIs) as at 31st March, 2019 was 0.35% which is within the ñVa go ZrMo h¢ &$ stipulated level of 20% of the total paid up capital of the Bank. `Wm 31.03.2019 `Wm 31.03.2018 (A§{H$V _yë` `2/-) (A§{H$V _yë` `2/-) H«$. g§. Category As on 31.03.2019 (Face Value `2/-) As on 31.03.2018 (Face Value `2/-) Sl. No. àdJ© eoàmo§ H$s g§. Hw$b ny±Or H$m % eoàmo§ H$s g§. Hw$b ny±Or H$m % No. of Shares % to total capital No. of Shares % to total capital 1. {dXoer g§ñWmJV {ZdoeH$ 18127737 0.30 18898140 1.13 Foreign Institutional Investors 2. Amogr~r OCBs 25500 0.00 25500 0.00 3. EZAmaAmB© NRIs 2994680 0.05 3464964 0.21 `moJ TOTAL 21147917 0.35 22388604 1.34 12.8.4 31.03.2019 H$s pñW{V Ho AZwgma ~¢H$ Ho nm±M erf© eoàYmaH$ 12.8.4 Top fi ve shareholders of the Bank as on 31.03.2019

H«$. g§. Category of Shareholders Ym[aV eo`amo§ H$s g§. Hw$b Ym[aVm H$m % Sl. No. eo`aYmaH$ Ho$ àdJ© No. of Shares held % to total holding 1. ^maV Ho amîQ—n{V President of India 5604799271 93.50 2. ^maVr` OrdZ ~r_m {ZJ_ (CgH$s gh¶moJr H§$n{Z¶m| g{hV) 216948648 3.62 Life Insurance Corporation of India (including its Associates)

3. EMS>rE’$gr Q´>ñQ>r H§$nZr {b{‘Q>oS> - EMS>rE’$gr ~oboÝgS> ES²>dmÝQ>oO ’§$S> 24858733 0.41 HDFC Trustee Company Limited A/c – HDFC Balanced Advantage Fund

4. OZab B§í¶moaoÝg H$mnm}aoeZ Am°’$ B§{S>¶m 5298050 0.09 General Insurance Corporation of India

5. doZJmS© Q>moQ>b B§Q>aZoeZb ñQ>m°H$ B§S>oŠg \§$S> 3429258 0.06 Vanguard Total International Stock Index Fund

ANNUAL REPORT 2018-19 111 12.8.5 31 2019 12.8.5 Status of Shares lying in CorpBank Unclaimed `Wm _mM© H$mo H$mn© ~¢H$ AXmdmH¥$V eo`g© CM§V st ImVo _o§ eoàmo§ H$s pñW{V : Shares Suspense Account as on 31 March, 2019 : eoàYmaH$mo§ H$s g§»`m No. of Shareholders eoàmo§ H$s g§»`m No. of Shares 30 19000 12.8.5 `Wm 31 _mM© 2019 H$mo H$mn© ~¢H$ B©EgnrEg 2018 AXmdmH¥$V 12.8.6 Status of Shares lying in CorpBank ESPS 2018 st eo`g©Zht h¡ CM§VAWdm ImVo {OZ _o§ g^r eoàmo§ H§ H$sn{Z`mo§ pñW{V _o§ do: {ZXoeH h¢, nm±M go A{YH g{_ Unclaimed Shares Suspense Account as on 31 March, 2019 : {V`mo§ Ho AÜ`jeoàYmaH$mo§ Ho ê$n _o§ H$sH$m`© g§»`m Zht No.H$aVo of h¢& Shareholders (Bg CÔoí` hoVw Ho db eoàmo§ H$s g§»`m No. of Shares Xmo g{_{V`mo§, AWm©V² boIm narjm g{_{V,112 eoàYmaH g§~§Y g{_{V Am¡a 363347 nm{al{_H g{_{V H$mo {b`m J`m h¡) & H$moB© ^r {ZXoeH ~¢H Ho {H$gr 12.9 eoàmo§ H$m Sr_¡{Q{a`bmBµOoeZ Ed§ Mb{Z{Y 12.9 Dematerialisation of shares and liquidity Xygao {ZXoeH H$m {aíVoXma Zht h¡& 12.9.1 ^maVr` à{V^y{V Ed§ {d{Z_` ~moS© (go~r) Ho n{anÌ EgE_SrAmanr/ 12.9.1 As per Securities and Exchange Board of India nm°{bgr/n{a-03/99 {XZm§{H$V 4 \$adar, 1999 Ho AZwgma 31 _B©, 1999 (SEBI) circular SMDRP/POLICY/CIR-03/99 dated February 4, 1999, delivery of the Bank’s shares in dematerialised form go3.9 g^r `Wm {ZdoeH$mo§ 31.03.2018 Ho {bE ~¢H$H$mo Ho {ZXoeH$mo§ eoàmo§ H$s Ho {S{bdar g§{já Sr_¡Qàmo\ ê$nmBb _o§ ZrMohmoZm àñVwV h¡ : has been made compulsory for all investors effective from A{Zdm`© H$a {X`m J`m h¡& AV… ~¢H$ Ho eoà boZXoZ A{Zdm`©V… Sr_¡Q May 31, 1999. The Bank’s shares are therefore, compulsorily ê$n3.9.1 _o§ hr lr hmoVo O` h¢& Hw OmarH$Vm©_ma JJ©, Hoà~§Y ê$n {ZXoeH _o§ ~¢H$ Ed§Ho eoàmo§_w»` H$moH$m`©nmbH Sr_¡Q H$aZo A{YH$mar hoVw XmoZmo§ traded in demat form. As an issuer, the Bank has entered into . {Snm°{µOQamo§lr O` Hw AWm©V²_ma JJ©Z¡eZb Zo 1 \{gŠ`w{aQrµO adar 2016{Snm°{µOQarO H$mo H$mnmo©aoeZ{b Am¡a~¢H Hogo§Q—b à~§Y{Snm°{µOQar {ZXoeH agreements with both the Depositories viz. National Securities g{d©gog (B§{S`m) {b. Ho gmW H$ama {H$E h¢& ~¢H$ Ho B©p¹Qr eoàmo§ H$mo Am~§{QV Depositories Ltd. and Central Depository Services (India) Ltd., VWm _w»` H$m`©nmbH A{YH$mar Ho ê$n _o§ H$m`©^ma JŒhU {H$`m& à~§Y {ZXoeH AmB©EgAmB©EZ Hy Q INE112A01023 h¡& for dematerialisation of shares. The ISIN Code allotted to the VWm _w»` H$m`©nmbH A{YH$m H$m nX^ma JŒhU H$aZo go nhbo do `yH$mo ~¢H Bank’s Equity Shares is INE112A01023. 12.9.2Ho H$m`©nmbH 31 {ZXoeH _mM©, 2019Wo& H$s pñW{V Ho AZwgma OZVm (^maV gaH$ma, 12.9.2 As on 31st March 2019, 99.95% of equity shares ) 99.95% held by the public (including Government of India i.e. AWm©V²do EH ì`mdgm{`HàdV©H$ g{hV MmQ©a Ûmam EH$mCQ§QYm{aV Ed§B©p¹Qr ^maVrèoàmo§ ~¢HHo a g§ñWmZ Ho Sr_¡Q à_m{UVê$n _o§ h¢& Promoter) are in demat form. 12.10 {nNbo VrZ dfmoª Ho Xm¡amZ ~¢H$ Ûmam Kmo{fV bm^m§e Ho {ddaU 12.10 The details of the dividend declared by the Bank {ZåZmZwgma h¡… during the past three years are as under:

`2 [aH$mS©/~hr ~§Xr Ho {XZm§H$ Year àËòH$ Ho$ à{V eoà bm^m§e H$s am{e Record Date/ Book Closure Dates bm^m§e AXm`Jr {XZm§H$ df© Amount of Dividend per Share of `2 each Dividend payment date for this purpose 2015-16 eyÝ` Nil – – 2016-17 eyÝ` Nil – – 2017-18 eyÝ` Nil – – 12.10.1 AXmdmH¥ V bm^m§e… {OZ eoàYmaH$mo§ H$mo {nNbo dfmoª (2015- 12.10.1 Unclaimed Dividends : Shareholders who have not 16 go nhbo) H$m bm^m§e àmßV Zht hwAm h¡, do ghm`Vm hoVw ~¢H$ Ho received the dividend for the earlier years (before 2015-16) may Egmo{g`Q gXñ` (grAmB©AmB~r) h¢& please contact Investor Services Department of the Bank or M/s ., {ZdoeH$ godm {d^mJ `m _ogg© H$mdr© {\ ZQoH$ àmBdoQ {b h¡Xam~mX go Karvy Fintech Pvt. Ltd., Hyderabad, for assistance. lrg§nH© O` H$ao§& Hw _ma JJ© 1986 _o§ H$mnmo©aoeZ ~¢H _o§ MmQ©S© EH$mC§Qo§Q Ho Vm¡a na ~¢qH$J CÚmoJ go Ow‹So Am¡a CÝhmo§Zo Am¡Úmo{JH {dÎm emIm _w§~B©, {X„r, nwUo 12.10.2 During the year, balances in respect of the following two unclaimed dividend accounts which fell due for transfer g{hV12.10.2 {d{^Þ df© emImAmo§ Ho Xm¡amZ _o§ ,H$m`© {ZåZdV {H$`m &Xmo$ CÝhmo§Zo AXmdmH¥V Hw N àemg{ZH A§{V_ H$m`m©b`mo§bm^m§e ImVo O¡go to the Investor Education Protection Fund (IEPF) account of Ah_Xm~mX,g§~Yr ~H$mò ZB©, {X„r,Omo ^maV nwUo Am¡agaH$ma H$mobH$mVm H$s {ZdoeH$Am§M{bH {ejm H$m`m©b` g§ajU Am¡a àYmZ{Z{Y Government of India, has been transferred to the said account H$m`m©b`(AmB©B©nrE\ _o§ H$m`© ) H$mo {H$`m A§VaU & _hm hoVw à~§YH Xo` Wm,Ho Vm¡a H$mo na H§$nZr CÝhmo§Zo A{Y{Z`_ ~¢H Ho H$mobH$mVm 2013 Am¡aH$s held with Punjab National Bank, New Delhi-Connaught {X„rYmam _§Sb125 Ho à_wI gmW Ho`Wm Vm¡a n{RVna H$m`© ~¢qH$J {H$`m H§$nZr & dh (EHCnH«$_m| AZw^dr H$m ~¢H$aAO©Z h¢ Am¡aVWm Circus Branch on the dates mentioned against them, as per CÝho§A§VaU emImAmo§,) A{Y{Z`_ Am§M{bH, 1980 H$m`m©b`mo§, H$s Ymam _§Sb 10 H$m`m©b`mo§,~r Ho àmdYmZmo§ àYmZ HoH$m`m©b` AZwgma _o§ the provisions of Section 10B of the Banking Companies (Acquisitions and Transfer of Undertakings) Act, 1980, read G$UCp„{IV à~§YZ, VmarI dgybr, H$mo n§Om~\ maoŠg Z¡eZb n{aMmbZ, ~¢H$ ,IwXam ZB© {X„r ~¢qH$J- H$Zm°QAm¡a àemgZgH©$g emImg{hV with Section 125 of the Companies Act, 2013, and as per the _o§ aIo Cº ImVo _o§ A§V{aV {H$`m J`m h¡& relevant rules made applicable thereunder to the Bank.

112 AmB©B©nrE\ H$mo AXmdmH¥ V bm^m§e ImVo H$m A§VaU H$s AmB©B©nrE\$ ImVo HŒ . KmofUm H$s A§VaU H$s Xo` {ddaU VmarI na eof ` H$mo A§VaU H$s g§. Details of Unpaid Mmby ImVm g§. VmarI Balance as on A§{V_ VmarI Sl. CA A/c. No. Date of Due date of VmarI Dividend date of Date of transfer No. Declaration transfer to Accounts transfer ` to IEPF A/c IEPF 1. Ag§XÎm bm^m§e ImVm - 510101000854998 09.07.2011 4072340.00 14.08.2018 14.08.2018 2010-11 Unpaid Dividend Account – 2010 – 11 BZ bm^m§e dma§Qmo§ go g§~§{YV H$moB© ^r Xmdm eo`aYmaH$mo§ Ûmam ~¢H$ `m AmB©B©nrE\$ Ho$ gmW Zht {H$`m Om gHo Jm& No claim for payment of dividends in respect thereof, lies either with the Bank or the IEPF, by the shareholders. 12.10.3 eo`aYmaH$mo§ go Amd{YH$ ê$n go AZwamoY {H$`m OmVm h¡ {H$ 12.10.3 Shareholders are periodically requested to submit do AmB©B©nrE\ ImVo _o§ A§VaU hoVw {Z`V hmoZo dmbo AXmdmH¥$V bm^m§e ImVmo§ their claim forms, well in advance of the unclaimed dividend Ho g§~§Y _o§ AnZm Xmdm \$m_© H$m\$s nhbo hr àñVwV H$ao§& {dÎm df© 2011- accounts falling due for transfer to IEPF Account. The balance 12 Ho g§~§Y _o§ AXmdmH¥ V bm^m§e ImVo _o§ AWm©V² {ZåZ{b{IV Vm{bH$m _o§ in respect of unclaimed dividend Account for FY 2011-12 i.e. CA/c 510101000855005 (Sl. No. 1) in the following table, fell Mmby ImVm g§. 510101000855005 (H«$. g§. 1) go g§~§{YV eofam{e due for transfer to IEPF Account on 05.08.2019. The same 05.08.2019 H$mo AmB©B©nrE\ ImVo _o§ A§VaU hoVw {Z`V hmo JB© h¡& Bgo shall be transferred to IEPF Account accordingly. The balances

VXZwgma AmB©B©nrE\ ImVo _o§ A§V{aV {H$`m OmEJm& ~mH$s AXmdmH¥ V bm^m§e in respect of the remaining unclaimed dividend accounts will be ImVmo§ H$s eofam{e CZHo gm_Zo Xem©B© JB© CZH$s {Z`V VmarImo§ Ho AZwgma transferred to the Investor Education Protection Fund (IEPF) {ZdoeH$ {ejm g§ajU {Z{Y (AmB©B©nrE\ ) _o§ A§V{aV H$s OmEJr Am¡a CgHo account, as per the due dates of transfer to IEPF, mentioned ~mX eoàYmaH$mo§ Ûmam ~¢H$ go `m AmB©B©nrE\ go Cº bm^m§e Ho ^wJVmZ hoVw against them shall lie with the Bank by the shareholders. H$moB© ^r Xmdm Zht {H$`m Om gHo Jm& Bg{bE eoàYmaH$mo§ go AZwamoY h¡ {H$ do Shareholders are therefore requested to submit their claims for AàXÎm bm^m§e hoVw AnZo Xmdo ~¢H$ Ho a{OñQ—ma Am¡a eoà A§VaU EOo§Q _ogg© unpaid dividends, either to the Registrar and Share Transfer H$mdr© H§ ß`yQaeoà àm. {b., h¡Xam~mX H$mo `m H$mnmo©aoQ H$m`m©b` Ho {ZdoeH$ Agent of the Bank or to the Investor Services Department at godm {d^mJ H$mo `WmerK« àñVwV H$ao§& Corporate Offi ce, at the earliest.

31.03.2019 H$mo ~H$m`m eof g{hV Ag§XÎm bm^m§e ImVmo§ H$s gyMr The list of Unpaid Dividend accounts with balance outstanding {ZåZdV h¡: as on 31.03.2019 is as follows: 31.03.2019 AmB©B©nrE’$ H$mo KmofUm H$m H$mo eof (`) A§VaU hoVw {Z¶V H«$. g§. AàXÎm bm^m§e ImVmo§ Ho$ {ddaU gr.E. ImVm g§. {XZm§H$ Balance as Sl. No. Details of the Unpaid Dividend Accounts C.A. A/c No. Date of VmarI on 31.03.2019 Due date of Declaration (`) transfer to IEPF 1. 2011 12 AàXÎm bm^m§e ImVm - - 510101000855005 29.06.2012 4165782.00 05.08.2019 Unpaid Dividend Account – 2011–12 2. 2012 13 AàXÎm bm^m§e ImVm - - 510101000855013 25.06.2013 4565569.00 31.07.2020 Unpaid Dividend Account – 2012–13 3. 2013 14 AàXÎm A§V[a_ bm^m§e ImVm - - 510101000855021 23.01.2014 1466866.00 01.03.2021 Unpaid Interim Dividend Account – 2013–14 4. 2013 14 AàXÎm A§{V_ bm^m§e ImVm - - 510101000855031 26.06.2014 806116.00 01.08.2021 Unpaid Final Dividend Account – 2013–14 5. 2014 15 AàXÎm A§{V_ bm^m§e ImVm - - 510101000855048 29.06.2015 2438878.00 04.08.2022 Unpaid Final Dividend Account – 2014–15

ANNUAL REPORT 2018-19 113 12.11 go~r Zo ~¢H$mo§ g{hV g^r gyMr~Õ H§$n{Z`mo§ Ho {bE `h A{Zdm`© 12.11 SEBI has made it mandatory for all the listed companies H$a {X`m h¡ {H$ do bm^m§e H$m ^wJVmZ H$aZo hoVw {Snm°{µOQar Ûmam àñVwV including Banks, to use the Bank Account details furnished by ~¢H$ ImVm {ddaU H$m Cn`moJ H$ao§& CÝhmo§Zo gyMr~Õ H§ n{Z`mo§ H$mo `h ^r the Depositories for payment of dividend. It has also made it mandatory for listed companies to use RBI approved electronic , , A{Zdm`© H$a {X`m h¡ {H$ bm^m§e Ho ^wJVmZ hoVw do EZEgrEM EZB©E\ Qr mode of payments such as NACH, NEFT, RTGS etc., for AmaQrOrEg Am{X O¡go ^m.{a.~¢. Ûmam AZw_mo{XV ^wJVmZ {d{Y`mo§ H$m making dividend payments and in the event of non-availability Cn`moJ H$ao§ Am¡a ~¢H$ ImVm {ddaU, E_AmB©grAma, AmB©E\ Eggr Hy$Q of the required information like bank account details, MICR Am{X O¡gr Ano{jV OmZH$mar CnbãY Z hmoZo na eoàYmaH$mo§ H$mo Eogo and IFSC Code etc., to use physical payment instruments for ^wJVmZ H$aZo hoVw H$mJµOr ^wJVmZ {bIVmo§ H$m BñVo_mb H$a gH$Vo h¢& ~¢H$, making such payments to shareholders. The Bank shall print {ZdoeH$mo§ H$mo bm^m§e, `{X H$moB© hmo, {dV{aV H$aZo hoVw ^wJVmZ {bIV na Bank account details, as made available by the depositories or {Snm°{µOQ{a`mo§ `m eoàYmaH$mo§ Ûmam (`{X eoà H$mJµOr ê$n _o§ Ym{aV hmo§ Vmo) the shareholders (in case holding shares in physical form), on payment instruments for distribution of dividends, if any, to the CnbãY H$amE JE ~¢H$ ImVm {ddaU H$mo _w{ÐV H$ao§Jo& investors.

12.11.1 {OZ eo`aYmaH$mo§ Zo ~¢H$ A{YXoe `m EZEgrEM {ddaU Zht 12.11.1 The shareholders who have not provided the Bank {X`m h¡/~¢H$ A{YXoe {ddaU _o§ n{adV©Z gy{MV Zht {H$E h¢, do bm^m§e Mandate or NACH details/change in Bank Mandate details, dma§Qmo§ H$s H$nQnyU© ^wZmB© go ~MZo hoVw {ddaU àñVwV H$ao§& ~¢H$ A{YXoe may furnish the same, to avoid fraudulent encashment of the dividend warrants. Proforma for furnishing the Bank Mandate

àñVwV H$aZo hoVw àmo\$m_m© dm{f©H$ {anmoQ© _o§ AbJ go {X`m J`m h¡& is provided separately in the Annual Report.

12.11.2 H¥$n`m ZmoQ H$ao§ {H$ Omo eoàYmaH$ H$mJµOr ê$n _o§ eoàmo§ H$mo 12.11.2 It may please be noted that the shareholders who Ym{aV H$aVo h¢ do {aH$mS© H$mo AÚVZ H$aZo hoVw AnZo ~¢H$ A{YXoe {ddaU are holding the shares in physical form may send their Bank Mandate details to Investor Services Department of the Bank ~¢H$ Ho {ZdoeH$ godm {d^mJ/_ogg© H$mdr© {\$ZQoH$ àmBdoQ {b., h¡Xam~mX or M/s Karvy Fintech Pvt. Ltd., Hyderabad, for updating the H$mo ôO gH$Vo h¢& Omo eoàYmaH$ Sr_¡Q (BboŠQ—m°{ZH$) ê$n _o§ eoà Ym{aV record of the shareholders. The shareholders who are holding H$aVo h¢, do {ddaU H$mo AÚVZ H$aZo hoVw {Snm°{µOQar nm{Q©{gno§Q go g§nH© H$a the shares in demat (electronic) form may approach their gH$Vo h¢& Depository Participant for necessary updation of the particulars.

12.11.3 H$mJµOr ê$n _o§ eoà Ym{aV H$aZo dmbo eoàYmaH$mo§ go AZwamoY 12.11.3 The shareholders holding shares in physical h¡ {H$ A§VaU, eoà _o§ Q—oqSJ _o§ gw{dYm VWm H$mJµOr eoà à_mUnÌ Ho form are requested to dematerialise their shares due to ImoZo/j{VJŒñV hmoZo/H$QZo-\ QZo Am{X go ~MZo Ho {bE AnZo eoàmo§ H$mo the convenience it offers, in holding, in transferring and {S_¡{Q{a`bmBO H$admE§& in trading of shares. Loss, damage, mutilation of share certifi cates can be totally avoided.

12.11.4 eoàmo§ H$m CÎmam{YH$ma A§VaU… ^maVr` à{V^y{V Ed§ 12.11.4 Transmission of Shares: The Securities and {d{Z_` ~moS© (go~r) Zo AnZo n{anÌ grAmB©Ama/E_AmB©AmaEgSr3/ Exchange Board of India (SEBI), vide their circular SEBI/HO/ nr/2016/0000000085 {XZm§H$ 15 {gV§~a 2016 Ûmam CÎmam{YH$ma MIRSD3/P/2016/0000000085 dated 15th September 2016, A§VaU à{H«$`m g§~§Yr {Xem{ZXo©emo§ H$mo A{YH$ {ZdoeH$ {hV¡fr ~ZmZo Ho has modifi ed the guidelines to make transmission process more CÔoí` go Amemo{YV {H$`m h¡& Bggo g§~§{YV {ddaU ~¢H$ H$s do~gmBQ www. investor friendly. The details of the same are available on the Bank’s website www.corpbank.com under ‘Investor Relations – corpbank.com na ‘Investor Relations-Information to Investors’ Information to Investors. Ho A§VJ©V CnbãY h¡& 12.11.5 Zm_m§H$Z gw{dYm… ~¢H$ Ho eoà H$mJµOr ê$n _o§ aIZo dmbo 12.11.5 Nomination facility: Nomination facility has now been made available by the Bank for shareholders holding the eoàYmaH$mo§ H$mo ~¢H$ Zo A~ Zm_m§H$Z gw{dYm CnbãY H$amB© h¡& eoàYmaH$mo§ go Bank’s shares in physical mode. Shareholders are requested AZwamoY h¡ {H$ do Bg dm{f©H$ {anmoQ© _o§ CnbãY H$amE JE \$m_o©Q Ho AZwgma to submit the duly fi lled-in and signed Nomination form as {d{YdV² âm hwAm Am¡a hñVmj{aV Zm_m§H$Z \$m_© a{OñQ—ma Am¡a eoà A§VaU per the format made available in this Annual Report, to the EOo§Q _ogg© H$mdr© {\$ZQoH$ àmBdoQ {b., h¡Xam~mX H$mo Amdí`H$ H$ma©dmB© hoVw Registrar and Share Transfer Agent, M/s. Karvy Fintech Pvt. àñVwV H$ao§& Ltd., Hyderabad, for doing the needful.

114 12.12 nÌmMma hoVw nVm… ~¢H$ Zo _§Jbyé _o§ AnZo H$mnmo©aoQ H$m`m©b` _o§ 12.12 Address for Correspondence: The Bank has set {ZdoeH$ godm {d^mJ ñWm{nV {H$`m h¡& eoà A§VaU, CÎmam§VaU, nVo _o§ up an Investor Services Department at its Corporate Offi ce n{adV©Z, bm^m§e H$s AàmpßV, eoà à_mU nÌ H$s Xygar à{V hoVw/à_mU nÌ at Mangaluru. For any assistance regarding share transfers, transmissions, change of address, non-receipt of dividend, Imo OmZo Am¡a eoàmo§ go g§~§{YV AÝ` _m_bmo§ Ho {bE {ZdoeH$ {ZåZ{b{IV duplicate/missing share certifi cates and other matters pertaining nVo na ~¢H$ go g§nH© H$a gH$Vo h¢: to shares, the investors may contact the Bank at the following H§$nZr g{Md address: {ZdoeH$ godm {d^mJ H$mnmo©aoeZ ~¢H$, H$mnmo©aoQ H$m`m©b` The Company Secretary _§JbmXodr _§{Xa _mJ© Investor Services Department Corporation Bank, Corporate Offi ce _§Jbyé - 575 001 Mangaladevi Temple Road Xya^mf… 0824-2424971, 2423853 (grYm) 2861482 Mangaluru – 575 001 \¡ Šg… 0824-2421581, 2423853 {ZdoeH$ {eH$m`Vo§ - B©-_ob… [email protected] Tel: 0824-2424971, 2423853 (Direct) 2861482 Fax: 0824-2421581, 2423853 12.13 H$mnmo©aoeZ ~¢H$ Ho eoà ~rEgB© Am¡a EZEgB© _o§ gyMrdÕ {H$E JE INVESTOR GRIEVANCES – E-mail: [email protected] / h¢& ~‹Sr _mÌm _o§ eoàmo§ Ho boZXoZ hmoZo Ho H$maU eoàYmaH$mo§ H$mo IarXZo ~oMZo 12.13 Corporation Bank shares are listed on both BSE and Ho n`m©ßV Adga CnbãY h¢& NSE. The fair volume of trading provides enough entry/exit opportunities to the shareholders. ~¢H$ Zo OrSrAma/ESrAma/dma§Q `m AÝ` H$moB© n{adV©Zr` {bIVo§ Omar Zht H$s h¢& The Bank has not issued GDRs/ADRs/Warrants or any other convertible instruments. 12.14 ~¢H$ H$s emImE± nyao ^maV â _o§ h¢& 12.14 The branches of the Bank have spread all over India.

12.15 ~¢H$ H$mo àmßV H«o${S>Q> aoqQ>J H$m {ddaU Details of the credit rating obtained by the Bank: ã`m¡am Particulars aoqQJ Rating XrKm©dYr OmarH Vm© aoqQJ AmB©EZSr EE-/ñQo~b (AmB©EZSr EE/ñQo~b go SmCZJ«oS {H$`m J`m) Long-Term Issuer Rating IND AA-/Stable (Downgraded from IND AA/Stable) ~ogb III AZwgma Qrà II ~m§S ~rSãë`yAma EE/ñQo~b Ed§ AmB©EZSr EE-/ñQo~b (AmB©EZSr EE/ñQo~b go SmCZJ«oS {H$`m J`m) Basel III Compliant Tier II Bonds BWR AA/Stable & IND AA-/Stable (Downgraded from IND AA/Stable) ZdmoÝ_ofr ñWm`r G$U {bIV ~rSãë`yAma EE-/ñQo~b, Ho à E+/ZoJo{Qd Ed§ {HŒ {gb E+/ZoJo{Qd (AmCQbwH$ H$mo ñQo~b go Innovative Perpetual Debt Instruments g§emo{YV {H$`m J`m Am¡a aoqQJ H$s nwZ…nwpîQ H$s JB©) BWR AA-/Stable, CARE A+/Negative & CRISIL A+/Negative (Outlook revised from ‘Stable’ and rating reaffi rmed) CÀM Qrà II ~m§S ~rSãë`yAma EE-/ñQo~b, Ho à E+/ZoJo{Qd Ed§ {H«${gb E+/ZoJo{Qd (AmCQbwH H$mo ñQo~b go Upper Tier II Bonds g§emo{YV {H$`m J`m Am¡a aoqQJ H$s nwZ…nwpîQ H$s JB© ) BWR AA-/Stable, CARE A+/Negative & CRISIL A+/Negative (Outlook revised from ‘Stable’ and rating reaffi rmed) {ZåZ Qrà II ~m§S Ho à EE-/ZoJo{Qd Ed§ {H«${gb EE-/ZoJo{Qd (AmCQbwH$ H$mo ñQo~b go g§emo{YV {H$`m J`m Am¡a Lower Tier-II Bonds aoqQJ H$s nwZ…nwpîQ H$s JB© ) CARE AA-/Negative & CRISIL AA-/Negative (Outlook revised from ‘Stable’ and rating reaffi rmed) gmdYr O_m àmoJŒm_ E\ EE+/ZoJo{Qd (AmCQbwH H$mo ñQo~b go g§emo{YV {H$`m J`m Am¡a aoqQJ H$s nwZ…nwpîQ H$s JB© ) Fixed Deposit Programme FAA+/ Negative (Outlook revised from ‘Stable’ and rating reaffi rmed) O_m à_mUnÌ Certifi cate of Deposits [AmB©grAma] E1+ [ICRA] A1+

ANNUAL REPORT 2018-19 115 ~¢qH$J13. EH$ n{aMmbZ {Oå_oXma Ho H$mnmo©aoQ{demb ZmJ{aH$joÌ Ho {d{^Þ Ho ê$n _hËdnyU© _o§ H$mnmo©aoeZ Xm{`Ëd ~¢H$ {Z^mZo `h H$m{dœmg 32 13. Corporation Bank, as a responsible corporate citizen, dfmoªH$aVm H$m h¡ AZw^d{H$ H$mnmo©aoQ h¡ & A{^emgZ gm§{d{YH$ AnojmAmo§ H$m AZwnmbZ H$aZm believes that Corporate Governance is not just compliance with statutory requirements but doing what is best in the interest of _mÌ Zht h¡ ~pëH$ nmaXer© Ed§ Z¡{VH$ VarHo go g^r eo`aYmaH$mo§ Ed§ g_JŒ all the stakeholders and the society at large in a transparent and g_mO Ho {hV _o§ CÎm_ H$m`© H$aZm h¡& ethical way with a rewarding environment to stakeholders. 14. Compliance with SEBI (Prohibition of Insider Trading) 14. ( ) , 2015 go~r Am§V{aH$ ì`mnma H$m à{V~§Y {d{Z`_ H$m Regulations, 2015.

AZwnmbZ 14.1 In pursuance of the Regulations, the Bank has formulated Code of Conduct for Prevention of Insider Trading 14.1 , BZ {d{Z`_mo§ Ho AZwgaU _o§ ~¢H$ Ho eo`a Ho boZXoZ hoVw nXZm{_V for Designated Employees and Directors for dealing in Shares

H$_©Mm{a`mo§ VWm {ZXoeH$mo§ Ho {bE ô{X`m ì`mnma Ho {ZdmaU hoVw ~¢H$ of the Bank which was last modifi ed on 29.06.2018. Various Zo AmMma g§{hVm ~ZmB© h¡, {Og_o§ 29.06.2018 H$mo A§{V_ g§emoYZ forms have been designed to receive periodical information {H$`m J`m Wm& BZ {d{Z`_mo§ Ho AZwgma ~¢H$ Ho nXZm{_V H$_©Mm{a`mo§ from the Designated Employees and the Directors of the Bank, VWm {ZXoeH$mo§ go Amd{YH$ gyMZm àmßV H$aZo hoVw {d{^Þ \$m_© ~ZmE as required in terms of these Regulations. Further, the Trading JE h¢& gmW hr {ZåZ{b{IV {ddaU Ho AZwgma ~¢H$ Ho {ZXoeH$mo§ VWm Window for dealing in shares of the Bank was kept closed for nXZm{_V H$_©Mm{a`mo§ hoVw ~¢H$ Ho eoàmo§ Ho boZXoZ hoVw ì`mnma qdSmo ~§X the Directors and Designated Employees of the Bank as per the {H$`m J`m h¡… following details:

ì`mnma qdSmo ~§X H$aZo H$s VmarIo§ Purpose of Closure Dates of Closure of Trading Window ~§X H$aZo H$m CÔoí` 19 _B©, 2018 go 28 _B©, 2018 31 _mM©, 2018 H mo g_mßV {V_mhr/df© hoVw {dÎmr` n{aUm_mo§ H$s KmofUm& 19th May 2018 to 28th May 2018 Declaration of Financial results for the quarter/year ended 31st March 2018. 04 AJñV, 2018 go 13 AJñV, 2018 30 OyZ, 2018 H mo g_mßV {V_mhr hoVw {V_mhr {dÎmr` n{aUm_mo§ H$s KmofUm& 4th August 2018 to 13th August 2018 Declaration of Quarterly Financial results for the quarter ended 30th June 2018. 5 Zd§~a, 2018 go 15 Zd§~a, 2018 30 {gV§~a, 2018 H mo g_mßV {V_mhr hoVw {V_mhr {dÎmr` n{aUm_mo§ H r KmofUm& 5th November 2018 to 15th November 2018 Declaration of Quarterly Financial results for the quarter ended 30th September 2018. 24 ÁmZd[a, 2019 go 31 ÁmZd[a, 2019 ~¢H$ Ho$ nmÌ H$_©Mm[a`m| H$mo 10 H$am‹oS VH$ ZB© B©{¹$Q>r eoà Omar H$aZo Ho$ {bE H$mnm}aoeZ ~¢H$ 24th January 2019 to 31st January 2019 H$_©Mmar ñQ>m°H$ IarX `moOZm, 2018 (H$mn©~¢H$ - B©EgnrEg -2018) Zm_H$ `moOZm na {dMma H$aZo, {ZU©` boZo Am¡a AZw_mo{XV H$aZo Ho$ {bE ~¢H$ Ho$ ~moS>© H$s à{V^y{V Am~§Q>Z g{_{V H$s ~¡R>H$& A meeting of the Securities Allotment Committee of the Board of the Bank to consider, fi nalise and approve a scheme namely “Corporation Bank Employee Stock Purchase Scheme 2018 (CORPBANK ESPS-2018)” to issue of up to 10 (Ten) crore new equity shares to the eligible employees of the Bank. AmJo 22 \$adar, 2019 VH$ ~T>m`m J`m H$mn©~¢H$ B©EgnrEg 2018 Ho$ A§VJ©V ~¢H$ Ho$ nmÌ H$_©Mm[a`m| Ûmam {ZJ©_ Ho$ A{^YmZ H$s ewéAmV Further extended till 22nd February 2019 (H$mn©~¢H$ B©EgnrEg 2018 Ho$ A§VJ©V nmÌ H$_©Mm[a`m| Ûmam ZB© B©{¹$Q>r eoàm| H$mo A{^YmZ H$aZo Ho$ Abmdm) Opening of issue for subscription by the Eligible Employees of the Bank under CORPBANK ESPS 2018 [Except for the subscribing of equity shares by eligible employees under CORPBANK ESPS 2018] 1 Aà¡b, 2019 go 19 _B©, 2019 31 _mM©, 2019 H mo g_mßV {V_mhr Am¡a df© hoVw dm{f©H {dÎmr` n{aUm_mo§ H r KmofUm& 1st April 2019 to 19th May 2019 Declaration of Annual Financial results for the quarter and year ended 31st March, 2019.

116 14.2 ~¢H$ Zo Am§V{aH$ ì`mnma amoH$Wm_ hoVw H$mnmo©aoQ àH$QZ àUmbr g§{hVm 14.2 The Bank has framed a Code of Corporate Disclosure Practices for Prevention of Insider Trading and made compliance ~ZmB© h¡ Am¡a CgH$m AZwnmbZ {H$`m h¡& thereof. 14.3 g§~§{YV nmQr© boZXoZ Zr{V 14.3 Related Party Transactions Policy As per the SEBI (Listing Obligations and Disclosure go~r (gyMr Xo`VmE§ Am¡a Amdí`H$ àH$QZ) {d{Z`_, 2015 Ho AZwgma, Requirements) Regulations, 2015, Related Party Transactions g§~§{YV nmQr© boZXoZ Zr{V H$mo ~¢H$ Ho ~odgmB©Q www.corpbank.com na Policy has been uploaded on the Bank’s website www.corpbank. “Investor Relations” – “Policies and Disclosures” Ho VhV AnbmoS com under the head “Investor Relations” – “Policies and Disclosures”, at the following link, for the information of the {H$`m J`m h¡& eo`aYmaH$ Am¡a Am_ OZVm H$s gyMZm Ho {bE qbH$ {ZåZdV shareholders and general public.. h¡: https://corpbank.com/node/134953 https://corpbank.com/node/134953 14.4 Other weblink a. Weblink for familiarization programmes imparted to 14.4 AÝ` do~qbH$ : independent directors is given hereunder: H$. ñdV§Ì {ZXoeH$mo§ hoVw Am`mo{OV n{aM` H$m`©HŒ _ hoVw do~qbH$ {ZåZdV² h¡ : https://corpbank.com/node/134951 https://corpbank.com/node/134951 b. Weblink of policy for determining material subsidiaries is I. ^m¡{VH$ AZwf§{J`mo§ H$mo {ZYm©{aV H$aZo hoVw Zr{V H$m do~qbH$ {ZåZdV² h¡ : given hereunder : https://corpbank.com/node/123908 https://corpbank.com/node/123908 J. à_wI AZwf§{J`mo§ Ho {bE {ZYm©aU Ho {bE bm^m§e {dVaU Zr{V H$m c. Weblink of Dividend Distribution policy for determining do~qbH$ {ZåZdV² h¡ : material subsidiaries is given hereunder : https://corpbank.com/node/62173 https://corpbank.com/node/62173 d. Weblink of other policies/disclosures of the bank are as K. ~¢H$ Ho AÝ` Zr{V`mo§/àH$QZmo§ H$m do~qbH$ {ZåZdV² h¡ : follows : https://corpbank.com/ https://corpbank.com/

15. Takeover Code 15. A{YJŒhU g§{hVm 15.1 The Bank has also complied from time to time with 15.1 ~¢H$ Zo go~r (eoàmo§ H$m n`m©ßV A{^JŒhU VWm A{YJŒhU) A{Y{Z`_ the provisions of SEBI (Substantial Acquisition of Shares and 2011 Ho `Wm g§emo{YV àmdYmZmo§ H$m g_`-g_` na AZwnmbZ {H$`m h¡& Takeovers) Regulations, 2011 as amended. 16. Other Disclosures 16. AÝ` àH$QZ… 16.1 Independent Directors on the Board of the Bank fulfi ls 16.1 ~¢H$ Ho ~moS© Ho ñdV§Ì {ZXoeH$, go~r (EbAmoSrAma) {d{Z`_, 2015 the condition of Independence as specifi ed in SEBI (LODR) _o§ {Z{X©îQmZwgma ~¢H$ H$mo bmJy gr_m VH$ ñdV§ÌVm H$s eV© H$mo nyam H$aVo h¢ Regulations, 2015 to the extent applicable to the Bank and are Am¡a do ~¢H$ Ho à~§YZ go ñdV§Ì h¢& independent of the Bank’s Management.

16.2 nÊ` H$s_V Am¡a nÊ` ~Mmd J{V{d{Y`mo§ H$m àH$QZ Disclosure of Commodity Price Risk and commodity hedging activities: nÊ` H$m Zm_ AmB©EZAma _o§ nÊ` eVmoª Ho AZwgma Commodity EŠgnmoµOa EŠgnmoµOa H$_mo{SQr So{ado{Qd Ho Ûmam a{jV EŠgnmoµOa H$m % Name Exposure in Exposure in % of such exposure hedged through commodity derivatives INR commodity terms eyÝ` Nil eyÝ` Nil eyÝ` Nil Xoer _mH}$Q> A§Vam©îQ—r` _mH}$Q Hw$b Domestic Market International Market Total AmoQrgr d{Z_` AmoQrgr {d{Z_` OTC Exchange OTC Exchange eyÝ` Nil eyÝ` Nil eyÝ` Nil eyÝ` Nil eyÝ` Nil

ANNUAL REPORT 2018-19 117 16.3 2018-19 Ho Xm¡amZ OwQmB© J`r {Z{Y H$m Cn`moJ: AnZr ny§Or 16.3 Utilisation of funds raised during 2018-19: Are fully n`m©ßVVm H$mo _O~yV H$aZo Ho {bE Qrà 1 ny§Or Am¡a ~¢H$ H$s g_JŒ ny§Or _o§ utilised with the main objective of augmenting Tier 1 Capital d¥{Õ H$aZo Ho _w»` CÔoí` Am¡a AnZo XrKm©d{Y g§gmYZmo§ H$mo ~‹TmZo Ho {bE and overall capital of the Bank for strengthening its capital adequacy and for enhancing its long-term resources. nyU©V… Cn`moJ {H$`m OmVm h¡& 16.4 A certifi cate from Practising Company Secretary has 16.4 ~¢H$ Ûmam AnZo {H$gr ^r {ZXoeH$ Ho J¡a-A`mo½` / J¡a-{dMmamYrZ hmoZo obtained by the Bank regarding non-disqualifi cation / non- Ho g§~§Y _o§ noeoda H§$nZr g{Md go à_mU nÌ àmßV {H$`m J`m h¡& debarred of any of its Directors on the Bank,

16.5 {dÎm df© 2018-19 Ho Xm¡amZ ~¢H Am¡a CgH$s AZwf§Jr BH$mB©`mo§ Ûmam gm§{d{YH$ boImnarjH$m| H$mo ^wJVmZ {H$E JE Hw$b ewëH$ H$m {ddaU {ZåZdV² h¢: Details of total fee paid by the Bank and its subsidiary to statutory auditors during the FY 2018-19 are as follows: Zm_ Name am{e (` H amo‹S _o§) Amount (` in Crore) H mnmo©aoeZ ~¢H Corporation Bank 25.04 H mn©~¢H goŠ`y{aQrµO {b{_QoS (AZwf§Jr H§ nZr ) 0.009 Corpbank Securities Ltd. (Subsidiary Company)

16.6 H$m`©ñWb na _{hbmAmo§ Ho `m¡Z CËnr‹SZ (amoH$Wm_, {ZfoY Am¡a 16.6 Disclosure in relation to sexual harassment of women at {ZdmaU) A{Y{Z`_, 2013 _o§ Ho g§~§Y _o§ àH$QZ workplace (Prevention, Prohibition and Redressal) Act, 2013. a. number of complaints fi led during the fi nancial year - Nil H$. {dÎmr` df© Ho Xm¡amZ XO© {eH$m`Vmo§ H$s g§»`m - eyÝ` b. number of complaints disposed of during the fi nancial year – Nil I. {dÎmr` df© Ho Xm¡amZ {ZnQmE JE {eH$m`Vmo§ H$s g§»`m- eyÝ` c. number of complaints pending as on end of the fi nancial J. {dÎmr` df© Ho A§V VH$ b§{~V {eH$m`Vmo§ H$s g§»`m-eyÝ` year – Nil 17. H$mamo~ma {Oå_oXmar {anmoQ© 17. Business Responsibility Report EH$ gyMr~Õ BH$mB© Ho ê$n _o§ ~¢H$ AnZo Amn H$mo Cg gm_m{OH$ àUmbr H$m The Bank being a listed entity, considers itself to be the critical component of the social system in which it operates and hence EH$ _hËdnyU© KQH$ _mZVm h¡ {Og_o§ dh H$m`©aV h¡ Am¡a Bg{bE dh amOñd is accountable not merely to the shareholders from revenue and Ed§ bm^àXVm H$s X¥pîQ go Z Ho db eoàYmaH$mo§ Ho à{V ~pëH$ ì`mnH$ g_mO profi tability point of view, but also to the larger society of which Ho à{V ^r CÎmaXm`r h¡ {OgH$m dh EH$ A§J h¡& Bg{bE gm_m{OH$ g§aMZm it is a part. Hence, adoption of responsible business practices in Ed§ n{adoe Ho {hV _o§ {Oå_oXma H$mamo~ma àWmAmo§ H$mo AnZmZo na ^r ~¢H$ CVZm the interest of the social set-up and the environment is being considered by the Bank as vital as its fi nancial and operational hr _hËd XoVm h¡ {OVZm {H$ dh AnZo {dÎmr` Ed§ n{aMmbZJV {ZînmXZ H$mo performance. The Bank, having accessed funds from the public, XoVm h¡& gmd©O{ZH$ YZam{e H$m boZXoZ H$aZo Ho H$maU ~¢H$ Ho H$m`© _o§ OZ- have an element of public interest involved, and hence it takes {hV {Z{hV h¡ Am¡a Bg{bE dh {Z`{_V AmYma na nm{ado{eH$, gm_m{OH$ Ed§ upon itself the responsibility to make continuous disclosures emgH$s` X¥pîQ go CgHo Ûmam CRmE JE H$X_mo§ Ho gVV àH$QZ H$s {Oå_oXmar regarding steps taken by it from environmental, social and governance perspective. SEBI has made it mandatory for the 2018-19 AnZo D$na boVm h¡& go~r Zo {dÎm df© hoVw {anmoQ© H$s àñVw{V H$mo Bank to submit the report for the fi nancial year 2018-19. The ~¢H$ Ho {bE A{Zdm`© {H$`m h¡ & ~¢H$ H$s H$mamo~ma {Oå_oXmar {anmoQ© XoIZo hoVw weblink to access the Business responsibility report of the Bank do~qbH$ https://corpbank.com/node/134952 h¡& is https://corpbank.com/node/134952

{ZXoeH$ _§Sb Ho {bE Am¡a CZH$s Amoa go For and on behalf of the Board of Directors

(nr. dr. ^maVr) (P. V. Bharathi) ñWmZ … _§Jbyé à~§Y {ZXoeH$ Ed§ _w»` Place : Mangaluru Managing Director & {XZm§H$ … 30.05.2019 H$m`©nmbH$ A{YH$mar Date : 30.05.2019 Chief Executive Ofﬁ cer

118 KmofUm DECLARATION

~¢H$ Zo ~moS© Ho g^r gXñ`mo§ VWm ~¢H$ Ho H$moa à~§YZ hoVw EH$ AmMma g§{hVm The Bank has laid down a Code of Conduct for all the Board {ZYm©{aV H$s h¡ {Ogo ~¢H$ H$s do~gmBQ _o§ {X`m J`m h¡& ~moS© Ho gXñ`mo§ VWm members and Core Management of the Bank, which is posted on the website of the Bank. The Board members and Core 31 2019 H$moa à~§YZ Zo _mM©, Ho g_mßV {dÎmr` df© hoVw AmMma g§{hVm Ho Management have afﬁ rmed compliance with the Code of AZwnmbZ H$s nwpîQ H$s h¡& Conduct for the ﬁ nancial year ended 31st March, 2019.

H¥$Vo H$mnmo©aoeZ ~¢H For Corporation Bank

ñWmZ : _§Jbyé (nr. dr. ^maVr) Place : Mangaluru (P. V. Bharathi) {XZm§H … 13.05.2019 à~§Y {ZXoeH$ Ed§ Date : 13.05.2019 Managing Director & _w»` H$m`©nmbH$ A{YH$mar Chief Executive Ofﬁ cer

ANNUAL REPORT 2018-19 119 {ZXoeZ _§S>b The Board of Directors H$mnm}aoeZ ~¢H$ Corporation Bank Compliance Certiﬁ cate by CEO & CFO under , 2015 go~r (gyMr~ÕVm Xo`VmE§ Am¡a àH$QZ AnojmE±) {d{Z`_ Ho Regulation 17 (8) of the SEBI (Listing Obligations 17 (8) {d{Z`_ Ho VhV grB©Amo d grE\ Amo AZwnmbZ à_mU nÌ and Disclosure Requirements) Regulations, 2015.

à_m{UV {H$`m OmVm h¡ {H$ This is to certify that (H$) h_Zo df© 2018-19 hoVw H$mnmo©aoeZ ~¢H$ Ho {dÎmr` {ddaUmo§ VWm ZH$Xr A. We have reviewed fi nancial statements and the cash fl ow àdmh {ddaU H$s g_rjm H$s h¡ VWm h_mao A{YH$V_ kmZ d {dœmg Ho statement of Corporation Bank for the year 2018-19 and AZwgma… that to the best of our knowledge and belief: (i) (i) These statements do not contain any materially BZ {ddaUmo§ _o§ Ho B© VÏ`mË_H$ AgË` {ddaU `m H$moB© VÏ`naH$ untrue statement or omit any material fact or MyH$ `m ^Œm_H$ {ddaU Zht h¢& contain statements that might be misleading; (ii) Bg Ho gmW hr ò {ddaU ~¢H$ Ho H$m`moª H$s ghr d C{MV pñW{V (ii) These statements together present a true and fair àñVwV H$aVo h¢ VWm ò {dÚ_mZ boIm§H$Z _mZH$, bmJy {d{Y`mo§ view of the Bank’s affairs and are in compliance with VWm {d{Z`_mo§ Ho AZwgma h¢& existing accounting standards, applicable laws and regulations. (I) h_mao A{YH$V_ kmZ Ed§ {dœmg Ho AZwgma ~¢H$ Zo df© Ho Xm¡amZ Eogr B. There are, to the best of our knowledge and belief, no H$moB© boZXoZ Zht {H$E h¢ Omo H$nQnyU©, J¡a-H$mZyZr h¢ `m ~¢H$ H$s AmMma transactions entered into by the Bank during the year g§{hVm H$m C„§KZ H$aVo h¢& which are fraudulent, illegal or violative of the Bank’s (J) h_ {dÎmr` {anmoqQ©J hoVw Am§V{aH$ {Z`§ÌU H$m`_ H$aZo d ~ZmE aIZo hoVw code of conduct. CÎmaXm{`Ëd ñdrH$ma H$aVo h¢ VWm h_Zo {dÎmr` {anmoqQ©J go g§~§{YV ~¢H$ C. We accept responsibility for establishing and maintaining internal controls for fi nancial reporting and that we have H$s Am§V{aH$ {Z`§ÌU ì`dñWm H$s à^m{dH$Vm H$m _yë`m§H$Z {H$`m h¡ evaluated the effectiveness of the internal control systems VWm h_Zo Am§V{aH$ {Z`§ÌUmo§ H$s ê$naoIm `m n{aMmbZ _o§ `{X H$moB© H$_r of the Bank pertaining to fi nancial reporting and we h¡ {OZHo ~mao _o§ h_o§ _mby_ h¡, boIm narjH$mo§ VWm boIm narjm g{_{V have disclosed to the auditors and the Audit Committee, H$mo gy{MV {H$`m h¡ VWm h_Zo BZ H${_`mo§ H$mo RrH$ H$aZo hoVw Cnm` {H$E defi ciencies in the design or operation of internal controls, if any, of which we are aware and the steps we have taken h¢ `m àñVm{dV {H$E h¢& or propose to take to rectify these defi ciencie. (K) h_Zo boIm narjH$mo§ VWm boIm narjm g{_{V H$mo {ZåZ{b{IV gy{MV D. We have indicated to the auditors and the Audit {H$`m h¡… committee (1) df© Ho Xm¡amZ {dÎmr` {anmoqQ©J na Am§V{aH$ {Z`§ÌU _o§ _hËdnyU© (1) Signifi cant changes in internal control over fi nancial n{adV©Z& reporting during the year; (2) Signifi cant changes in accounting policies during (2) df© Ho Xm¡amZ boIm§H$Z Zr{V`mo§ _o§ _hËdnyU© n{adV©Z VWm BÝho§ the year and that the same have been disclosed in {dÎmr` {ddaUmo§ H$s {Qßn{U`mo§ _o§ àH$Q {H$`m h¡; VWm the notes to the fi nancial statements; and (3) h_mar OmZH$mar _o§ AmE H$nQmo§ H$s _hËdnyU© KQZmE± {OZ_o§ à~§YZ (3) Instances of signifi cant fraud of which we have `m {dÎmr` {anmoqQ©J na ~¢H$ H$s Am§V{aH$ {Z`§ÌU ì`dñWm _o§ become aware and the involvement therein, if , any, of the management or an employee having a _hËdnyU© ^y{_H$m dmbo H$_©Mmar H$s g§{bßVVm `{X H$moB© h¡& signifi cant role in the Bank’s internal control system (L) {dÎmr` {ddaUmo§ H$s gm§{d{YH$ Ho Ðr` boIm-narjH$mo§ Ûmam ^r boIm- over fi nancial reporting. narjm H$s JB© h¡& E. The fi nancial statements have also been subjected to audit by Statutory Central Auditors.

(dr. _wÎmwH¥ îUZ) ({~énmj {_lm) (Jmonmb _wabr ^JV) (nr.dr.^maVr) _hm à~§YH H$m`©nmbH$ {ZXoeH$ H$m`©nmbH$ {ZXoeH$ à~§Y {ZXoeH$ Ed§ grB©Amo

(V. Muthukrishnan) (Birupaksha Mishra) (Gopal Murli Bhagat) (P. V. Bharathi) General Manager & CFO Executive Director Executive Director Managing Director and CEO ñWmZ Place : _§Jbyé Mangaluru {XZm§H$ Date : _B© May 16, 2019

120 H$mnmo©aoQ A{êmgZ na boIm-narjH$mo§ AUDITORS’ CERTIFICATE ON CORPORATE H$m à_mU-nÌ GOVERNANCE godm _o§, To the Members of Corporation Bank, H$mnmo©aoeZ ~¢H$ Ho gXñ`JU, We have examined the compliance of conditions of Corporate h_Zo, go~r (gyMr~Õ Xo`VmE§ Am¡a Amdí`H$ àH$QZ) {d{Z`_, 2015 Ho Governance by Corporation Bank (“the Bank”) for the year ended on 31st March 2019, as stipulated in SEBI (Listing {d{Z`_ 17 go 27 _o§ {d{Z{X©îQmZwgma 31 _mM©, 2019 H$mo g_mßV df© hoVw Obligations and Disclosure Requirements) Regulations, 2015. H$mno©aoeZ ~¢H$ Ûmam H$mnmo©aoQ A{êmgZ H$s eVmoª Ho AZwnmbZ H$s Om±M H$s h¡& The compliance of conditions of corporate governance is the H$mnmo©aoQ A{êmgZ H$s eVmoª Ho AZwnmbZ H$s {Oå_oXmar à~§YZ-dJ© H$s responsibility of the management. Our examination was limited h¡& h_mar Om±M, H$mno©aoQ A{êmgZ H$s eVmoª H$m AZwnmbZ gw{Z{üV H$aZo to the procedures and implementation thereof, adopted by the Bank for ensuring the compliance of the conditions of the hoVw ~¢H$ Ûmam AnZmB© JB© à{HŒ `mAmo§ Am¡a CZHo {HŒ `mÝd`Z VH$ gr{_V Wr& Corporate Governance. It is neither an audit nor an expression of `h Z Vmo boIm-narjm h¡ Am¡a Z hr ~¢H$ Ho {dÎmr` {ddaUmo§ na A{^_V H$s opinion on the fi nancial statements of the Bank.

A{^ì`{º$ h¡& In our opinion, and to the best of our information and h_mar am` Ed§ gyMZm VWm h_o§ {XE JE ñnîQrH$aU Ho AZwgma h_ à_m{UV according to explanations given to us, we certify that the Bank has complied with the conditions of Corporate Governance H$aVo h¢ {H$ ~¢H$ Zo gyMrH$aU {d{Z`_ Ho {d{Z`_ 15 Ho Cn~§Y Ho gmW as stipulated in the above mentioned Listing Regulations read n{RV Cnamoº gyMrH$aU {d{Z`_ _o§ {d{Z{X©îQ H$mnmo©aoQ A{êmgZ H$s eVmoª H$m with proviso to Regulation 15 of the Listing Regulations. AZwnmbZ {H$`m h¡& We state that no investor grievances are pending for a period h_ ñnîQ H$aVo h¢ {H$ ~¢H$ Ho ~moS© H$s eoàYmaH$ g§~§Y g{_{V Ûmam aIo exceeding one month against the Bank as per the records maintained by the Stakeholders’ Relationship Committee of JE A{^boI Ed§ ~¢H$ Ho a{OñQ—ma Ed§ A§VaU EOo§Qmo§ Ûmam àXÎm à_mUnÌ Ho the Board of the Bank and certifi cate given by the Registrar and AZwgma ~¢H$ Ho {déÕ H$moB© {ZdoeH$ {eH$m`V EH$ _mh go A{YH$ Ad{Y hoVw Transfer Agent of the Bank. b§{~V Zht h¡& We further state that such compliance is neither an assurance h_ `h ^r ñnîQ H$aVo h¢ {H$ Eogm AZwnmbZ Z Vmo ~¢H$ H$s ^mdr ì`dhm`©Vm as to the future viability of the Bank nor the effi ciency or H$m H$moB© AmœmgZ h¡ Am¡a Z hr XjVm `m à^m{dVm {Oggo à~§YZ-dJ© Zo ~¢H$ effectiveness with which the management has conducted the affairs of the Bank. Ho {HŒ `mH$bmn g§Mm{bV {H$E h¢ &

H¥$Vo XÎmm qgJbm EÊS H§ . H¥$Vo E. Ho . g~V EÊS H§ . For Datta Singla & Co. For A. K. Sabat & Co. Chartered Accountants Chartered Accountants gZXr boImH ma gZXr boImH ma FRN: 006185N FRN: 321012E E\$AmaEZ-006185EZ E\$AmaEZ-321012B© [CA Sanjeev Aggarwal] [CA. A. K. Sabat] (grE g§Ord AJ«dmb) (grE E. Ho . g~V) Partner Partner gmÂmoXma gmÂmoXma Membership No. 503932 Membership No. 30310 gXñ` g§.503932 gXñ` g§. 30310 H¥$Vo MÝÐZ EÊS a_Z H¥$Vo Eg. am_mZ§X Aæ`a EÊS H§ . For Chandran & Raman For S. Ramanand Aiyar & Co. gZXr boImH ma gZXr boImH ma Chartered Accountants Chartered Accountants E\$AmaEZ-000571Eg E\$AmaEZ-000990EZ FRN: 000571S FRN: 000990N [CA S. G. Kalyanaraman] [CA Binod C. Maharana] (grE Eg.Or. H$ë`mUa_U) (grE {~ZmoX gr. _hmamUm) Partner Partner gmÂmoXma gmÂmoXma Membership No. 10652 Membership No. 056373 gXñ` g§.10652 gXñ` g§.056373 For Pramod & Associates H¥$Vo à_moX EÊS Egmo{gEQ²g Chartered Accountants gZXr boImH ma FRN: 001557C -001557 E\$AmaEZ gr [CA Ravindra Raniwala] (grE a{dÝÐ amZrdmbm) Partner gmÂmoXma Membership No. 073191 gXñ` g§. 073191 ñWmZ … _§Jbyé Place : Mangaluru {XZm§H$ … 17.05.2019 Date : 17.05.2019

ANNUAL REPORT 2018-19 121 godm _o§, To, H mnmo©aoeZ ~¢H Ho gXñ`JU, The Members of Corporation Bank, `h à_m{UV {H `m OmVm h¡ {H Bg à_mU nÌ H$s VmarI H mo H mnmo©aoeZ This is to Certify that none of the Directors on the Board of the Corporation Bank have been debarred or disqualiﬁ ed ~¢H Ho {H gr ^r {ZXoeH H mo ^maVr` à{V^y{V Ed§ {d{Z_` ~moS©/ H mnmo©aoQ from being appointed or continuing as Directors of Banks/ H m`© _§Ìmb`/{dÎm _§Ìmb`/^maVr` {aµOd© ~¢H `m {H gr AÝ` gm§{d{YH Companies by the Securities and Exchange Board of India / Ministry of Corporate Affairs / Ministry of Finance / Reserve àm{YH mar Ûmam ~¢H mo§/H§ n{Z`mo§ Ho {ZXoeH Ho ê n _o§ {Z`wº hmoZo `m Cg nX Bank of India or any such statutory authority , as on date of na ~Zo ahZo hoVw à{V~§{YV `m A`mo½` Kmo{fV Zht {H `m J`m h¡& this Certiﬁ cate.

For R.S. Padia & Associates H¥ Vo Ama.Eg. nm{S`m EÊS Egmo{gEQ Company Secretaries H§ nZr g{Md

{XZm§H : 10.05.2019 amOlr nm{S`m Date :10.05.2019 Rajshree Padia ñWmZ: _w§~B© E\ grEg: 6804; grnr: 7488 Place: Mumbai FCS: 6804; CP: 7488

122 \$m°_© g§. E_Ama-3 Form No. MR-3 {Z`m_H$s boImnarjm {anmoQ© SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED 31 2019 _mM©, H$mo g_mßV {dÎmr` df© Ho {bE 31st MARCH 2019 (H§$nZr A{Y{Z`_, 2013 H$s Ymam 204(1) Am¡a go~r n[anÌ g§»`m IR/ [Pursuant to Section 204(1) of the Companies Act, 2013 and CFD/CMD1/27/2019 {XZm§{H$V 08.02.2019 Ho gmW n{RV H§$nZr rule No. 9 of the Companies (Appointment and Remuneration of (à~§YH$s` H$m{_©H$mo§ H$s {Z`w{º Ed§ nm[al{_H ) {Z`_, 2014 Ho AZwgma) Managerial Personnel) Rules, 2014 read alongwith SEBI Circular No. IR/CFD/CMD1/27/2019 DATED 08.02.2019] godm _o§, To,

H$mnmo©aoeZ ~¢H Ho gXñ` JU The Members of Corporation Bank h_Zo bmJy gm§{d{YH àmdYmZmo§ Ho AZwnmbZ Am¡a H$mnmo©aoeZ ~¢H (~mX _o§ We have conducted the Secretarial Audit of the compliance Bgo ~¢H H$hm J`m h¡) Ho AÀNo H$m°nmo©aoQ ì`dhmamo§ Ho nmbZ H$s {Z`m_H$s of applicable statutory provisions and the adherence to good boImnarjm H$s h¡& {Z`m_H$s boImnarjm Bg àH$ma H$s J`r {Oggo h_o§ corporate practices by Corporation Bank, (hereinafter called the Bank). Secretarial Audit was conducted in a manner that H$mnmo©aoQ AmMaU/gm§{d{YH AZwnmbZ Ho _yë`m§H Z H aZo Am¡a Cg na AnZr provided us a reasonable basis for evaluating the corporate am` ì`º$ H$aZo H$m C{MV AmYma {_bm& conducts/statutory compliances and expressing our opinion thereon. h_mao Ûmam H$mnmo©aoeZ ~¢H H$s ~{h`mo§, XñVmdoµOmo§, H$m`©d¥Îm ~{h`mo§, \ m_© Based on our verifi cation of the Corporation Bank books, Am¡a XO© {aQZmoª Am¡a ~¢H Ûmam AZwa{jV AÝ` XñVmdoµOmo§ Ho gË`mnZ VWm papers, minute books, forms and returns fi led and other records gmW hr, {Z`m_H$s boImnarjm Ho Xm¡amZ ~¢H A{YH$m[a`mo§ Ûmam àXmZ H$s maintained by the Bank and also the information provided by JB© gyMZm Ho AmYma na, h_ EVX²Ûmam [anmoQ© H$aVo h¢ {H h_mar am` _o§ ~¢H Zo the Bank offi cials during the conduct of secretarial audit, We 31/03/2019 H$mo g_mßV {dÎm df© H$s boImnarjm Ho Xm¡amZ ZrMo gyMr~Õ hereby report that in our opinion, the Bank has, during the audit period covering the fi nancial year ended on 31/03/2019 gm§{d{YH àmdYmZmo§ H$m AZwnmbZ {H$`m h¡ Am¡a gmW _o§ `h ^r {H BgHo$ complied with the statutory provisions listed hereunder and AmJo H$s JB© {anmo{Q>ªJ Ho AZwgma ~¢H Ho nmg C{MV ~moS©-à{H«$`mE± Ed§ also that the Bank has proper Board-processes and compliance- AZwnmbZ-V§Ì h¢: mechanism in place to the extent, in the manner and subject to the reporting made hereinafter: h_Zo {ZåZ{b{IV àmdYmZmo§ Ho AZwgma, 31/03/2019 H$mo g_mßV {dÎm df© We have examined the books, papers, minute books, forms Ho {bE ~¢H Ûmam AZwa{jV ~{h`mo§, XñVmdoµOmo§, H$m`©d¥Îm ~{h`mo§, \$m_© Am¡a and returns fi led and other records maintained by the Bank XO© {aQZ© Am¡a AÝ` XñVmdoµOmo§ H$s Om±M H$s h¡… for the fi nancial year ended on 31/03/2019 according to the (i) H§$nZr A{Y{Z`_, 2013 (A{Y{Z`_) Am¡a CgHo$ AYrZ ~ZmE JE provisions of: (i) The Companies Act, 2013 (the Act) and the rules made {Z`_ Ohm± VH ~¢H Ho$ {bE bmJy h¡Ÿ& thereunder to the extent applicable to the Bank. (ii) à{V^y{V g§{dXm ({d{Z`_Z) A{Y{Z`_, 1957 (‘SCRA ’) Am¡a (ii) The Securities Contracts (Regulation) Act, 1957 (‘SCRA’) CgHo$ A§VJ©V ~ZmE JE {Z`_; and the rules made thereunder; (iii) The Depositories Act, 1996 and the Regulations and Bye- (iii) {ZjonmJma A{Y{Z`_, 1996 Am¡a CgHo A§VJ©V ~ZmE JE {d{Z`_ laws framed thereunder; Am¡a Cn{Z`_; (iv) Foreign Exchange Management Act, 1999 and the rules (iv) {dXoer _wÐm à~§YZ A{Y{Z`_, 1999 Am¡a CgHo$ A§VJ©V {dXoer and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and àË`j {Zdoe, {dXoer àË`j {Zdoe Am¡a ~mhar dm{UpÁ`H$ CYma Ho$ External Commercial Borrowings; (Not Applicable to g§~§Y _| ~ZmE JE {Z`_; (g_rjmYrZ Ad{Y Ho$ {bE ~¢H$ na the Bank for the period under review) bmJy Zht h¡) (v) The following Regulations and Guidelines prescribed (v) ^maVr` à{V^y{V Am¡a {d{Z_` ~moS©> A{Y{Z`_, 1992 (go~r under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’): A{Y{Z`_) Ho$ VhV {ZYm©[aV {ZåZ{bpIV {d{Z`_ Am¡a {Xem{ZX}e: (a) Securities and Exchange Board of India (Listing H$) ^maVr` à{V^y{V Am¡a {d{Z_` ~moS©> (gyMr~ÕVm {bpñQ>§J Obligations and Disclosure Requirements Regulations, ~mÜ`VmE± Am¡a àH$Q>rH$aU AnojmE±) {d{Z`_, 2015 2015;

ANNUAL REPORT 2018-19 123 I) ^maVr` à{V^y{V Am¡a {d{Z_` ~moS©> (ny±Or {ZJ©_ Am¡a àH$Q>rH$aU (b) Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, AnojmE± {d{Z`_, 2018; 2018; J) ^maVr` à{V^y{V Am¡a {d{Z_` ~moS©> (eoàm| H$m n`m©á AO©Z Am¡a (c) Securities and Exchange Board of India (Substantial A{^J«hU {d{Z`_, 2011; Acquisition of Shares and Takeovers) Regulations, K) ^maVr` à{V^y{V Am¡a {d{Z_` ~moS©> (à{V^y{V`m| H$mo H«$` Ûmam 2011; (d) Securities and Exchange Board of India (Buyback of dmng boZm (~m`-~¡H$) {d{Z`_, 2018; (g_rjmYrZ df© Ho$ Securities) Regulations, 2018; (Not Applicable during Xm¡amZ bmJy Zht h¡ My±{H$ H$moB© ~m`-~¡H$ Zht Wm) the year under review as there were no Buybacks) L) ^maVr` à{V^y{V Am¡a {d{Z_` ~moS©> (eoà AmYm[aV H$_©Mmar (e) Securities and Exchange Board of India (Share Based \$m`Xo) {d{Z`_, 2014; Employee Benefi ts) Regulations, 2014; (f) Securities and Exchange Board of India (Issue and M) ^maVr` à{V^y{V Am¡a {d{Z_` ~moS©> (F$U à{V^y{V`m| H$m {ZJ©_ Listing of Debt Securities) Regulations, 2008; Am¡a BZH$s gyMr~ÕVm) {d{Z`_, 2008; (g) Securities and Exchange Board of India (Issue and Listing of Non-Convertible and Redeemable Preference N>) ^maVr` à{V^y{V Am¡a {d{Z_` ~moS©> (Ag§n[adV©Zr` Ed§ Shares) Regulations, 2013; (Not Applicable to the _moMZr` A{Y_mZr eoàm| H$m {ZJ©_ Am¡a BZH$s gyMr~ÕVm) Bank for the year under review) {d{Z`_, 2013; (h) Securities and Exchange Board of India (Prohibition of O) ^maVr` à{V^y{V Am¡a {d{Z_` ~moS©> (A§Va§J ì`mnma H$m à{VfoY) Insider Trading) Regulations, 2015; {d{Z`_, 2015; (vi) The Following other Laws as applicable to the Bank: a) Banking Regulation Act, 1949 along with Notifi cations (vi) ~¢H$ na bmJy {ZåZ{bpIV AÝ` {Z`_: and Circulars issued by the Reserve Bank of India H$) ^maVr` [aµOd© ~¢H$ (Ama~rAmB©) Am¡a ^maV gaH$ma (OrAmoAmB©) (RBI) and Government of India (GOI) from time to time Ûmam g_` g_` na Omar A{YgyMZmAm| Am¡a n[anÌm| Ho$ gmW b) Banking Companies (Acquisition & Transfer of ~¢qH$J {d{Z`_Z A{Y{Z`_ 1949 Undertakings) Act, 1980 and its amendments thereof I) ~¢qH$J H§$nZr (CnH«$_m| H$m AO©Z Am¡a A§VaU) A{YJ«hU, 1980 c) Nationalised Banks (Management & Miscellaneous Am¡a CgHo$ AmemoYZ Provisions) Scheme, 1980 d) Corporation Bank (Shares and Meetings) Regulations, J) amï´>r`H¥$V ~¢H$ (à~§YZ Ed§ {d{dY àmdYmZ) `moOZm, 1980 1998 K) H$mnm}aoeZ ~¢H$ (eoà Ed§ ~¡R>H$), {d{Z`_Z 1998 We have also examined compliance with the applicable clauses of the following: h_Zo {ZåZ{bpIV bmJy eVm] Ho$ AZwnmbZ H$s Om±M H$s h¡… (i) Secretarial Standards issued by The Institute of Company (i) ^maVr` H§$nZr g{Md g§ñWmZ Ûmam Omar g{Mdr` _mZH$ Secretaries of India. (ii) The Listing Agreements entered into by the Bank with BSE (ii) ~¢H$ Ûmam ~rEgB© {b{_Q>oS> (~rEgB©) Am¡a amï´>r` eoà ~mµOma Ho$ gmW Ltd (BSE) and the National Stock Exchange of India Ltd. {H$`m J`m gyMr~ÕVm H$ama (NSE) During the period under review the Bank has complied with the g_rjmYrZ Ad{Y Ho$ Xm¡amZ ~¢H$ Ûmam Cnamoº$ A{Y{Z`_m|, {Z`_m|, {d{Z`_m|, provisions of the Act, Rules, Regulations, Guidelines, Standards, {Xem{ZX}em|, _mZH$m| Am{X Ho$ àmdYmZm| H$m AZwnmbZ {H$`m J`m h¡& etc. mentioned above. h_ AmJo gy{MV H$aVo h¢ {H$ We further report that ~¢H$ Ho$ {ZXoeH$ _§S>b H$m JR>Z ñdV§Ì {ZXoeH$m| Am¡a _{hbm {ZXoeH$m| g{hV, The Board of Directors of the Bank is duly constituted with proper balance of Executive Directors, Non-Executive Directors H$m`©H$mar {ZXoeH$m|, J¡a-H$m`©H$mar {ZXoeH$m| Ho$ g_w{MV g§VwbZ Ho$ gmW {H$`m including Independent Directors and Women Directors. The J`m h¡& g_rjmYrZ Ad{Y Ho$ Xm¡amZ {ZXoeH$ _§S>b H$s g§aMZm _| n[adV©Z changes in the composition of the Board of Directors that go~r (EbAmoS>rAma) Ho$ gmW-gmW ~¢qH$J H$mZyZm| Ho$ àmdYmZm| Ho$ AZwnmbZ took place during the period under review were carried out in compliance with the provisions of the Banking laws in consonance Ho$ gmW {H$ò Jò Wo& with SEBI (LODR). ~moS©> H$s ~¡R>H$m| Ho$ Am`moOZ hoVw g^r {ZXoeH$m| H$mo n`m©á Zmo{Q>g {X`m OmVm Adequate notice is given to all directors to schedule the Board h¡& H$m`©gyMr Ed§ Cgna {dñV¥V ZmoQ> H$_ go H$_ gmV {XZ nhbo ôOo JE& gmW Meetings, agenda and detailed notes on agenda were sent at least seven days in advance, and a system exists for seeking and hr ~¡R>H$ _| gmW©H$ ^mJrXmar hoVw ~¡R>H$ Ho$ Xm¡amZ H$m`©gyMr Ho$ _Xm| na A{YH$ obtaining further information and clarifi cations on the agenda OmZH$mar Am¡a ñnï>rH$aU _m§JZo d àmá H$aZo Ho$ {bE EH$ àUmbr _m¡OyX h¡& items in the meeting for meaningful participation at the meeting.

124 n[anÌm| Ho$ _mÜ`_ go AZw_mo{XV àñVmdm| g{hV, ~¢H$ Ho$ {ZXoeH$ _§S>b H$s Decisions at the Meetings of the Board of Directors of the Bank, including the resolutions approved through circulations, ~¡R>H$m| _| {ZU©`m| H$mo gd©gå_{V go nm[aV {H$`m J`m Wm& g_rjmYrZ Ad{Y were resolved unanimously. There were no dissenting views by Ho$ Xm¡amZ {ZXoeH$ _§S>b Ho$ {H$gr ^r gXñ` Ûmam H$moB© {^Þ _V Zht àH$Q> any member of the Board of Directors during the period under {H$`m J`m Wm& review. h_ AmJo gy{MV H$aVo h¢ {H$ ~¢H$ Ho$ AmH$ma Am¡a n[aMmbZ Ho$ AZwê$n bmJy We further report that there are adequate systems and processes in the Bank commensurate with the size and operations of the H$mZyZm|, {Z`_m|, {d{Z`_m| Am¡a {Xem{ZX}em| H$s {ZJamZr Am¡a AZwnmbZ Bank to monitor and ensure compliance with applicable laws, gw{Z{üV H$aZo hoVw ~¢H$ _| n`m©á àUmbr Am¡a à{H«$`mE§ _m¡µOyX h¢& rules, regulations and guidelines. h_ AmJo gy{MV H$aVo h¢ {H$ boImnarjm Ad{Y Ho$ Xm¡amZ ~¢H$ Zo {ZåZ{bpIV We further report that during the audit period the Bank has: àñVmd nm[aV {H$ò: (i) A Special Resolution was passed at the Annual General Meeting of the Bank Held on 29th June 2018 for approving (i) {XZm§H$ 29 OyZ 2018 H$mo Am`mo{OV ~¢H$ H$s dm{f©H$ gm_mÝ` ~¡R>H$ _| Raising of Capital of the Bank by way of Issuance of fresh ZE B{¹$Q>r eoà Omar H$aZo Am¡a/`m ~ogb III {Xem{ZX}em| Ho$ AZwgma Equity shares and/or by issuance of Additional Tier – I or A{V[aº$ {Q>à - I `m {Q>à II ny§Or Omar H$aVo hþE ~¢H$ H$s ny§Or ~‹T>mZo Tier II capital as per Basel III Guidelines. H$mo _§Oyar XoZo hoVw EH$ {deof àñVmd nm[aV {H$`m J`m& (ii) Special Resolutions were passed at the Extraordinary General Meeting of the Bank on 7th September 2018 to (ii) 7 {gV§~a 2018 H$mo ~¢H$ H$s AgmYmaU gm_mÝ` ~¡R>H$ _| {ZåZ{bpIV a. Create, issue and allot 86,90,47,619 Equity shares {deof àñVmd nm[aV {H$E JE& of Face value `2 each for cash at a premium of H$. A{Y_mÝ` AmYma na A§{H$V _yë` 2 ` à{V H$s Xa go à{V B©{¹$Q>r `27.40 per equity share i.e. the issue price of `29.40 aggregating upto `2555 crores to Government of ` ` 27.40 Ho$ àr{_`_ na AWm©V² 29.40 Ho$ {ZJ©_ _yë` Ho$ gmW India, on preferential basis. Hw$b 2555 H$amo‹S> hoVw 86,90,47,619 B©{¹${Q> eoàm| H$mo {Z{_©V Accordingly, the Securities Allotment Committee of H$aZm, Omar H$aZm Ed§ ^maV gaH$ma H$mo Am~§{Q>V H$aZmŸ& the Board of the Bank has allotted the said shares in th VXZwgma, ~¢H$ Ho$ ~moS©> H$s à{V^y{V Am~§Q>Z g{_{V Zo 11 Aºy$~a its meeting held on 11 October 2018 in compliance with the SEBI ICDR Regulations 2018. 2018 H$mo AnZr ~¡R>H$ _| go~r AmB©grS>rAma {d{Z`_ 2018 Ho$ b. Create, grant, offer, issue and allot upto 10 Crore AZwnmbZ _| Cº$ eoà Am~§{Q>V {H$E h¢& new equity shares of face value of `2/- each under the I. H$m°nm}aoeZ ~¢H$ H$_©Mmar ñQ>m°H$ IarX `moOZm, 2018 (H$mn© ~¢H$ Corporation Bank Employee Stock Purchase Scheme, 2018 (CorpBank ESPS, 2018) in one or more tranches, B©EgnrEg, 2018) Ho$ VhV ~moS©>/g{_{V Ûmam nyU© {ddoH$m{YH$ma at such price and on such terms and conditions as may go V` {H$E JE {Z`_m| Am¡a eVm] na A§{H$V _yë` `2/- à{V H$s be decided by the Board/ Committee in its absolute Xa go 10 H$amo‹S> VH$ eoàm| H$m {Z_m©U, àñVmd, {ZJ©_ Ed§ Am~§Q>Z& discretion. VXZwgma, {XZm§H$ 8 _mM© 2019 H$mo Am`mo{OV ~¡R>H$ _| ~¢H$ H$s Accordingly, 5,40,40,570 Equity shares at an offer price of `19.61 per equity share were allotted to à{V^y{V Am~§Q>Z g{_{V Ûmam go~r (eoà AmYm[aV H$_©Mmar eligible employees of the Bank by the Securities bm^) {d{Z`_, 2014 H$m AZwnmbZ H$aVo hþE ~¢H$ Ho$ nmÌ Allotment Committee of the Board of the Bank in H$_©Mm[a`m| H$mo 19.61 à{V B©{¹$Q>r eoà Ho$ àñVm{dV _yë` na its meeting held on 8th March 2019 in compliance 5,40,40,570 énò Ho$ B©{¹$Q>r eoà Am~§{Q>V {H$ò JE Wo& with the SEBI (Share Based Employee Benefi ts) Regulations, 2014. (iii) {XZm§H$ 27 _mM©, 2019 H$mo Am`mo{OV ~¢H$ Ho$ AgmYmaU _hm g^m _| (iii) Special Resolution was passed at the Extraordinary {ZåZ{bpIV {deof g§H$ën nm[aV {H$`m J`m& General Meeting of the Bank held on 27th March 2019 to H$. A{Y_mÝ` AmYma na A§{H$V _yë` 2 ` à{V H$s Xa go à{V B{¹$Q>r a. Create, issue and allot 340,55,47,226 Equity shares of Face value `2 each for cash at a premium of `24.68 Ho$ àr{_`_ na AWm©V² `26.68 Ho$ {ZJ©_ _yë` Ho$ gmW `24.68 per equity share i.e. the issue price of `26.68 Hw$b 9086 H$amo‹S> hoVw 340,55,47,226 B{¹${Q> eoàm| H$mo aggregating upto `9086 crores to Government of {Z{_©V H$aZm, Omar H$aZm Ed§ ^maV gaH$ma H$mo Am~§{Q>V H$aZm& India, on preferential basis. Accordingly, the Securities Allotment Committee of VXZwgma, ~¢H$ Ho$ ~moS©> H$s à{V^y{V Am~§Q>Z g{_{V Zo 29 _mM©, the Board of the Bank has allotted the said shares in its 2019 H$mo AnZr ~¡R>H$ _| go~r AmB©grS>rAma {d{Z`_ 2018 Ho$ meeting held on 29th March, 2019 in compliance with AZwnmbZ _| Cº$ eoà Am~§{Q>V {H$E h¢& SEBI ICDR Regulations 2018.

ANNUAL REPORT 2018-19 125 (iv) ^maVr` [aµOd© ~¢H$ (RBI) Zo ~¢qH$J {d{Z`_Z A{Y{Z`_ 1949 H$s (iv) Reserve Bank of India (RBI) in exercise of powers Ymam 46 (4) (i) Ho$ gmW n{R>V Ymam 47 (A ) (1) (c) Ho$ A§VJ©V conferred under Section 47(A)(1)(c) read with the Section 46(4)(i) of the Banking Regulation Act, 1949 has àXÎm e{º$`m| Ho$ à`moJ H$aVo hþE ~¢H$ na VmËH$m{bH$ g_` na {H$E OmZo imposed an aggregate penalty of `10 million on the Bank dmbo Mma à{VnyaH$ {Z`§ÌUm| go EH$ Ho$ {d{Z`m_H$ AZwnmbZ _| H$_r Ho$ for deﬁ ciency in regulatory compliance with one of the {bE Hw$b `10 {_{b`Z Am¡a {Z{Y`m| Ho$ A§{V_ Cn`moJ H$s {ZJamZr _| four compensatory control to do on real time basis and `20 million on the Bank due to some lapses in monitoring hþB© Hw$N> H${_`m| Ho$ H$maU Am¡a EH$ CYmaH$Vm© go g§~§{YV gyMZmAm| H$mo of end use of funds and exchange of information with Xÿgao ~¢H$ Ho$ gmW gmPm H$aZo Ho$ H$maU Hw$N> AÝ` ~¢H$m| Ho$ gmW h_mao other banks in respect of one borrower along with some ~¢H$ na `20 {_{b`Z Ow_m©Zm bJm`m J`m h¡& BZ XmoZm| KQ>ZmAm| H$mo other Banks. Both of these incidents intimated to Stock ñQ>m°H$ EŠgM|Om| H$mo gy{MV {H$`m J`m h¡& Exchanges. (v) Bank has redeemed following debt instruments in terms (v) ~¢H$ Zo gyMZm kmnZ Am¡a ^maVr` [aµOd© ~¢H$ Ûmam Xr JB© ñdrH¥${V Ho$ of Information Memorandum and approval granted by AZwgma {ZåZ{bpIV F$U {bIVm| H$mo ^wZm`m h¡: Reserve Bank of India:

_moMZ H$s {V{W {bIV H$m àH$ma _moMZ H$s am{e (énE _o§ ) CÔoí` Date of Nature of instrument Amount of redemption Purpose Redemption (in `) 25.02.2019 II CÀM {Qà ~m°ÊS²g 764,22,54,795 H$m°b Am°ßeZ H$s H$ma©dmB© na _moMZ Upper tier II Bonds Redemption on exercise of call option 19.01.2019 AmB©nrSrAmB© ~m°ÊS²g 258,87,50,000.00 H$m°b Am°ßeZ H$s H$ma©dmB© na _moMZ IPDI Bonds Redemption on exercise of call option 12.12.2018 II CÀM {Qà ~m°ÊS²g 330,30,00,000.00 H$m°bb Am°ßeZ H$s H$ma©dmB© na _moMZ Upper Tier II Bonds Redemption on exercise of call option 03.12.2018 II {ZåZ {Qà ~m°ÊS²g 221,60,00,000.00 n{an¹Vm na _moMZ Lower Tier II Bonds Redemption on maturity 06.03.2018 – 1 A{V{aº {Qà ~m°ÊS²g 828,92,90,958.00 H$m°b Am°ßeZ H$s H$ma©dmB© na _moMZ Additional Tier – 1 Bonds Redemption on exercise of call option 06.03.2018 – 1 A{V{aº {Qà ~m°ÊS²g 507,29,53,427.00 H$m°b Am°ßeZ H$s H$ma©dmB© na _moMZ Additional Tier – 1 Bonds Redemption on exercise of call option 06.03.2018 – 1 A{V{aº {Qà ~m°ÊS²g 501,83,06,845.00 H$m°b Am°ßeZ H$s H$ma©dmB© na _moMZ Additional Tier – 1 Bonds Redemption on exercise of call option

{XZm§H Date : 10.05.2019 ñWmZ Place : _w§~B© Mumbai H¥ Vo Ama.Eg. nm{S`m EÊS Egmo{gEQ For R.S. Padia & Associates H§$nZr g{Md Company Secretaries

amOlr nm{S`m Rajshree Padia E\ grEg FCS: 6804; grnr CP: 7488

126 31 _mM© 2019 H$mo g_má df© hoVw H$mnm}aoeZ ~¢H$ H$m Secretarial Compliance Report of Corporation {Z`m_H$s AZwnmbZ [anmoQ>© Bank for the year ended 31st March 2019 go~r n[anÌ g§»`m IR/CFD/CMD1/27/2019 [Pursuant to SEBI circular No. IR/CFD/ {XZm§{H$V 08.02.2019 Ho$ AZwê$n CMD1/27/2019 Dated 08.02.2019] godm _|, To, H$mnm}aoeZ ~¢H$ Ho$ gXñ`m| The Members of Corporation Bank, 1. h_Zo Om±M H$s: 1. We have examined: H$) AZwÀN>oX 2 BÝ\«$m Ho$ AÝVJ©V {deof {d{Z`_m| Ho$ AZwnmbZ _| a) All the documents and records made available to us H$mnm}aoeZ ~¢H$ (gyMr~Õ BH$mB©) Ûmam CnbãY H$amò Jò g^r and explanation provided by Corporation Bank (“the XñVmdoO Ed§ [aH$mS©> VWm ñnï>rH$aU& listed entity”), arising from the compliances of Specifi c Regulations listed under para 2 infra I) Cnamoº$ Ho$ g§~§Y _|, gyMr~Õ BH$mB© Ûmam ñQ>m°H$ EŠñM|O H$mo Xr b) the fi lings/ submissions made by the listed entity to the JB©/àñVwV H$s JB© {ddaUr& stock exchanges in connection with the above J) gyMr~Õ BH$mB© H$m do~gmBQ c) website of the listed entity, d) any other document/ fi ling, as may be relevant, which K) H$moB© AÝ` àmg§{JH$ XñVmdoµO/ OmZH$mar {Ogna, Bg à_mUrH$aU has been relied upon to make this certifi cation, Ho$ {bE {dœmg {H$`m Om gHo$& for the year ended 31st March 2019 (“Review Period”) in 31 _mM© 2019 H$mo g_má df© ( g_rjm Ad{Y) hoVw AZwnmbZ Ho$ g§~§Y respect of compliance with the provisions of : _| àmdYmZ: a) the Securities and Exchange Board of India Act, 1992 (“SEBI Act”) and the Regulations, circulars, guidelines H$) ^maVr` à{V^y{V Ed§ {d{Z_` ~moS©> EŠQ>, 1992 (go~r EŠQ>) Ed§ issued thereunder; and BgHo$ AÝVJ©V Omar {d{Z`_, n[anÌ, {Xem{ZX}e Am¡a b) the Securities Contracts (Regulation) Act, 1956 I) à{V^y{V H$ama ({d{Z`_) EŠQ>, 1956 (EggrAmaE) Ho$ VhV ~Zo (“SCRA”), rules made thereunder and the Regulations, {Z`_ Ed§ ^maVr` à{V^y{V Ed§ {d{Z_` ~moS©> (go~r) Ûmam Omar circulars, guidelines issued thereunder by the Securities and Exchange Board of India (“SEBI”); {d{Z`_, n[anÌ Ed§ {Xem{ZX}e 2. The specifi c Regulations, whose provisions and the 2. {d{eï> {d{Z`_m|,{OgHo$ àmdYmZm| H$mo Ed§ BgHo$ AÝVJ©V Omar n[anÌm|/ circulars/ guidelines issued thereunder, have been examined, {Xem{ZX}em| H$mo Om±Mm J`m h¡, _| {ZåZ{bpIV em{_b h¢: include:- H$) ^maVr` à{V^y{V Ed§ {d{Z_` ~moS©> ( {bpñQ>§J ~mÜ`VmE§ Ed§ a) Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) àH$Q>rH$aU AnojmE±) {d{Z`_, 2015, Regulations, 2015; I) ^maVr` à{V^y{V Ed§ {d{Z_` ~moS©> (ny§Or H$m {ZJ©_Z Ed§ àH$Q>rH$aU b) Securities and Exchange Board of India (Issue of AnojmE±) {d{Z`_, 2018 Capital and Disclosure Requirements) Regulations, 2018; J) ^maVr` à{V^y{V Ed§ {d{Z_` ~moS©> (eoàm| H$m n`m©á AO©Z Am¡a c) Securities and Exchange Board of India (Substantial A{YJ«hU) {d{Z`_, 2011 Acquisition of Shares and Takeovers) Regulations, K) ^maVr` à{V^y{V Ed§ {d{Z_` ~moS©> ( à{V^y{V H$s nwZ… IarX) 2011; {d{Z`_, 2018 d) Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018; L) ^maVr` à{V^y{V Ed§ {d{Z_` ~moS©> (eoà AmYm[aV H$_©Mmar e) Securities and Exchange Board of India (Share Based \$m`Xo) {d{Z`_, 2014 Employee Benefi ts) Regulations, 2014;

ANNUAL REPORT 2018-19 127 M) ^maVr` à{V^y{V Ed§ {d{Z_` ~moS©> (F$U à{V^y{V`m| H$m {ZJ©_ f) Securities and Exchange Board of India (Issue and Am¡a BgH$s gyMr~ÕVm) {d{Z`_, 2008 Listing of Debt Securities) Regulations, 2008; g) Securities and Exchange Board of India(Issue and N>) ^maVr` à{V^y{V Ed§ {d{Z_` ~moS©> (Ag§n[adV©Zr` _moMZr` Listing of Non - Convertible and Redeemable A{Y_mZr eoàm| H$m {ZJ©_ Am¡a BZH$s gyMr~ÕVm) {d{Z`_, Preference Shares) Regulations, 2013; 2013 h) Securities and Exchange Board of India (Prohibition of O) ^maVr` à{V^y{V Am¡a {d{Z_` ~moS©> (BZgmBS>a Q´>oqS>J H$m à{VfoY) Insider Trading) Regulations, 2015; {d{Z`_, 2015; and based on the above examination, We hereby report Am¡a Cnamoº$ Om±M Ho$ AmYma na _¢/h_ gy{MV H$aVo h¢ {H$ g_rjm that, during the Review Period: Ad{Y Ho$ Xm¡amZ: a) The listed entity has complied with the provisions of H$) `h gyMr~Õ BH$mB©, BZHo$ AÝVJ©V Omar,Cnamoº$ {d{Z`_m| Ed§ the above Regulations and circulars/ guidelines issued thereunder, However, in absence of any transaction n[anÌm| /{Xem{ZX}em| Ho$ àmdYmZm| H$m AZwnmbZ H$aVm h¡& `Ú{n, relating to Buyback of Securities and issue on Non à{V^y{V H$s nwZ… IarX go g§~§{YV {H$gr boZ XoZ H$s AZwnpñW{V Convertible and Redeemable Preference Shares during _| Ed§ g_rjm Ad{Y Ho$ Xm¡amZ Ag§n[adV©Zr` _moMZr` A{Y_mZr the period under review, the compliance of relevant eoàm| Ho$ {ZJ©_ hoVw , `hm± C„opIV g§~§{YV àmdYmZm| Ho$ AZwnmbZ provisions mentioned herein does not arise. H$s Amdí`H$Vm Zht h¡& b) The listed entity has maintained proper records under I) `h gyMr~Õ BH$mB© BZHo$ AÝVJ©V Omar {H$E Jò Cnamoº$ {d{Z`_m| the provisions of the above Regulations and circulars/ Ed§ n[anÌm|/ {Xem{ZX}em| Ho$ àmdYmZm| Ho$ VhV C{MV A{^boIm| guidelines issued thereunder insofar as it appears from H$m AZwajU H$aVm h¡ O¡gm {H$ h_mao Ûmam BZ A{^boIm| H$s Om±M our examination of those records. _| {XIVm h¡& c) No action was required to be taken against the listed entity/ its promoters/ directors/ material subsidiaries J) go~r `m ñQ>m°H$ EŠgM|O Ûmam ( go~r Ûmam {d{^Þ n[anÌm| Ho$ either by SEBI or by Stock Exchanges (including O[aò Omar {H$ò Jò _mZH$ n[aMmbZ à{H«$`m g{hV) BZHo$ VhV under the Standard Operating Procedures issued by Omar Cnamoº$ A{Y{Z`_m|/{d{Z`_m| Ed§ n[anÌm|/{Xem{ZX}em| Ho$ SEBI through various circulars) under the aforesaid AÝVJ©V Bg gyMr~Õ BH$mB©/BgHo$ g§ñWmnH$m|/{ZXoeH$m| ^m¡{VH$ Acts/ Regulations and circulars/ guidelines issued AZwf§Jr BH$mB`m| Ho$ {déÕ H$moB© H$ma©dmB© H$s OmZo H$s Amdí`H$Vm thereunder; Zht Wr& d) This being the fi rst reporting since the notifi cation of the requirement to submit this report, reporting on K) My§{H$ Bg [anmoQ>© H$mo àñVwV H$aZo H$s Amdí`H$Vm hoVw A{YgyMZm Ho$ actions taken to comply with observations made in the ~mX `h nhbr [anmo{Qª>J h¡, AV… {nN>br [anmoQ>© _| nmB© JB© H${_`m| previous reports does not arise. H$s AZwnmbZ g§~§Yr H$ma©dmB© H$s [anmo{Qª>J H$s Amdí`H$Vm Zht h¡& H¥$Vo Ama.Eg. nm{S>`m EÊS> Egmo{gòQ²g For R.S. Padia & Associates H§$nZr g{Md Company Secretaries

amOlr nm{S>`m Rajshree Padia FCS: 6804; CP: 7488 FCS: 6804; CP: 7488 {XZm§H$ : 10.05.2019 Date : 10.05.2019 ñWmZ : _w§~B© Place : Mumbai

128 ~ogb (ñV§^) 3 àH$QZ Basel Pillar 3 Disclosures

ZE ny§Or n`m©ßVVm Tm§Mo g§~Yr {Xem{ZXo©e ~ogb III (ñV§^ 3) Ho VhV 31 Disclosures under the New Capital Adequacy Framework _mM©, 2019 H$mo g_mßV df© hoVw g_o{H$V AmYma na àH$QZ& Guidelines Basel III (Pillar 3) for the year ended on 31st March, 2019 on a consolidated basis.

^maVr` [aOd© ~¢H ~ogb III {Xem{ZXo©emo§ Ho AZwgma 31 _mM©, 2019 Pillar 3 disclosures for the year ended on 31st March, 2019 H$mo g_mßV df© hoVw ñV§^ 3 H$m àH$QZ ~¢H H$s do~gmB©Q Ho _wI n¥îR> as per Basel III guidelines of RBI have been disclosed na “{d{Z`m_H àH$QZ’’ Ho VhV AbJ go àñVwV {H$`m J`m h¡& BgH$s separately on the Bank’s website under ‘Regulatory qbH h¡: http://www.corpbank.com Disclosures’ section on the home page. The link to this section is http://www.corpbank.com Bg ^mJ _o§ {ZåZdV àH$QZ em{_b h¡ : The section contains the following disclosures: • ~ogb III - 31 _mM©, 2019 H$mo g_mßV df© hoVw ñV§^ III àH$QZ& • Basel III - Pillar III Disclosures for the year ended 31st March, 2019. • `Wm 31 _mM©, 2019 H$mo ny§Or g§aMZm Am¡a g_mYmZ& • Capital Composition and Reconciliation as on 31st March, 2019. • `Wm 31 _mM©, 2019 H$mo {d{Z`m_H ny§Or {bIVmo§ H$s _w»` • Main features of Regulatory Capital Instruments as on {deofVmE§& 31st March, 2019. • Leverage Ratio Disclosures as on 31st March, 2019. • `Wm 31 _mM©, 2019 H$mo brdaoO AZwnmV àH$QZ& • Liquidity Coverage ratio Disclosure for the year ended • `Wm 31 _mM©, 2019 H$mo Mb{Z{Y H$daoO AZwnmV àH$QZ& 31st March, 2019.

ANNUAL REPORT 2018-19 129 ñdV§Ì boIm narjH$mo§ H$s [anmoQ© INDEPENDENT AUDITORS’ REPORT godm _o§, To gXñ`, H$mnmo©aoeZ ~¢H$, _§Jbyé The Members of Corporation Bank, Mangaluru EH$b {dÎmr` {ddaUmo§ na [anmoQ© Report on Audit of the Standalone Financial Statements

A{^_V Opinion 1. h_Zo H$mnmo©aoeZ ~¢H$ (VËnümV “~¢H$” H$hm J`m h¡) Ho$ g§b¾ EH$b {dÎmr` 1. We have audited the Standalone Financial Statements {ddaUmo§ H$s boIm narjm H$s h¡, {OZ_o§ `Wm 31 _mM© 2019 VwbZ-nÌ Am¡a of Corporation Bank (‘the Bank’), which comprise the Bgr {V{W H$mo g_mßV df© H$m bm^-hm{Z boIm Am¡a ZH$Xr àdmh {ddaU Balance Sheet as at 31 March, 2019, the Statement of (`ËnümV² ""EH$b {dÎmr` {ddaU'' H$hm J`m h¡), VWm _hËdnyU© boIm- Profi t and Loss and the Statement of Cash Flows for the year then ended, and notes to Financial Statements including Zr{V`mo§ H$m gma Ed§ AÝ` ì`m»`mË_H$ gyMZm em{_b h¢& BZ EH$b {dÎmr` a summary of signifi cant accounting policies and other {ddaUmo§ _o§ h_mao Ûmam boIm nar{jV 20 emImAmo§ Am¡a gm§{d{YH$ emIm explanatory information in which are included returns for boIm-narjH$mo§ Ûmam boIm nar{jV 1477 emImAmo§/AÝ` H$m`m©b`mo§ H$mo the year ended on that date of 20 branches audited by us em{_b {H$`m J`m h¡& ~¢H$ Zo, h_mao Ûmam boIm nar{jV emImAmo§ VWm and 1477 branches audited by statutory branch auditors. The branches audited by us and those audited by other AÝ` boIm narjH$mo§ Ûmam boIm nar{jV emImAmo§ H$m M`Z ^maVr` [aµOd© auditors have been selected by the Bank in accordance with ~¢H$ Ûmam Omar _mJ©{ZXo©emo§ Ho$ AZwê$n {H$`m h¡& Bg VwbZ-nÌ Am¡a bm^- the guidelines issued to the Bank by the Reserve Bank of hm{Z _o§ 935 emImAmo§ H$s {dda{U`m± ^r em{_b h¢ {OZH$s boIm-narjm India. Also included in the Balance Sheet, the Statement of Zht H$s JB© h¡ Am¡a BZHo$ _m_bo _o§ h_Zo H$moB© boIm-narjm à{HŒ `m Zht H$s Profi t and Loss and Statement of Cash Flows are the returns h¡& BZ AboImnar{jV emImAmo§ _o§ A{JŒ_ H$m 5.33 à{VeV, O_mam{e`mo§ from 935 branches which have not been subjected to audit. These unaudited branches account for 5.33 percent of H$m 14.75 à{VeV, ã`mO Am` H$m 6.93 à{VeV VWm ã`mO ì`` H$m advances, 14.75 percent of deposits, 6.93 percent of interest 13.99 à{VeV g_m{hV h¡& income and 13.99 per cent of interest expenses. 2. h_mar am` _o§ Am¡a AnZr OmZH$mar Ed§ h_o§ {XE JE ñnîQrH$aU Ho$ AZwgma 2. In our opinion and to the best of our information and Cn`w©º EH$b {dÎmr` {ddaU ~¢qH$J {d{Z`_Z A{Y{Z`_, 1949 Ûmam according to the explanations given to us, the aforesaid Ano{jV OmZH$mar ~¢H$ H$mo XoVr h¡ Am¡a do gm_mÝ` ê$n go ^maV _o§ Standalone Financial Statements give the information ñdrH¥ V boIm§H$Z {gÕm§Vmo§ Ho$ AZwê$n _o§ h¢ Am¡a gmW _o§ `h ^r àXmZ required by the Banking Regulation Act, 1949 in the manner so required for bank and are in conformity with H$aVr h¢: accounting principles generally accepted in India and give: H$. 31 _mM©, 2019 H$mo ~¢H$ Ho$ _m_bmo§ H$s pñW{V H$s ~¡bo§g erQ Ho$ _m_bo a. true and fair view in case of the Balance Sheet, of the _o§ gË` Ed§ ñnîQ pñW{V; state of affairs of the Bank as at 31st March, 2019; I. Cgr {XZ H$mo g_mßV df© H$s bm^ Am¡a hm{Z Ho$ {ddaU Ho$ _m_bo _o§ hm{Z b. true balance of Loss in case of Statement of Profi t and H$m dmñV{dH$ eof; VWm Loss for the year ended on that date; and J. Cgr {XZ H$mo g_mßV df© H$s ZH$Xr àdmh {ddaUr Ho$ _m_bo _o§ gË` Ed§ c. true and fair view in case of Statement of Cash Flows ñnîQ pñW{V& for the year ended on that date. A{^_V H$m AmYma Basis for Opinion 3. h_Zo ^maVr` gZXr boImH$ma g§ñWmZ (AmB©grEAmB©) Ho$ Ûmam Omar 3. We conducted our audit in accordance with the Standards boImnarjm Ho$ _mZH$mo§ (EEg) Ho$ AZwgma AnZr boImnarjm H$s h¡& on Auditing (SAs) issued by the Institute of Chartered Accountants of India (ICAI). Our responsibilities under CZ _mZH$mo§ Ho$ VhV AnZr {Oå_oXm[a`mo§ H$mo AmJo h_mar [anmoQ© Ho$ {dÎmr` those Standards are further described in the Auditor’s {ddaU AZw^mJ H$s boImnarjm hoVw boImnarjH$ H$s {Oå_oXm[a`mo§ _o§ Responsibilities for the Audit of the Financial Statements ~Vm`m Jm`m h¡& h_ AmB©grEAmB© Ho$ Ûmam Omar AmMma g§{hVm Ho$ AZwgma section of our report. We are independent of the Bank g_yh go ñdV§Ì h¢ Am¡a gmW hr Z¡{VH$ AnojmAmo§ H$mo ^r nyam H$aVo h¢ Omo in accordance with the code of ethics issued by the ICAI ^maV _o§ AnZr {dÎmr` {ddaUmo§ H$s boImnarjm Ho$ {bE g§JV h¡ Am¡a together with ethical requirements that are relevant to our audit of the Financial Statements in India, and we have h_Zo BZ AnojmAmo§ Am¡a AmMma g§{hVm Ho$ AZwgma h_mar AÝ` Z¡{VH$ fulfi lled our other ethical responsibilities in accordance CÎmaXm{`Ëdmo§ H$mo nyam {H$`m h¡& h_mam {dœmg h¡ {H$ Omo boImnarjm gmú` with these requirements and the code of ethics. We believe h_Zo àmßV {H$`m h¡, do h_mar A{^_V Ho$ {bE n`m©ßV Am¡a C{MV AmYma that the audit evidence we have obtained is suffi cient and àXmZ H$aVm h¡& appropriate to provide a basis for our opinion.

130 4. _m_bo H$m _hËd 4. Emphasis of Matter Without qualifying our conclusion, we draw attention to : AnZo {ZîH$f© na nhw±Mo {~Zm h_ {ZåZ{b{IV na Ü`mZ AmH${f©V H$aVo h¡… i) Note No. 1 of Schedule 18-C regarding provisioning i. EZgrEbQr ImVmo§ na {H$E JE àmdYmZ Am¡a J¡a-{ZînmXH$ ImVmo§ na {H$E made on NCLT accounts and provision made on Non- JE àmdYmZ Ho$ ~mao _o§ AZwgyMr 18-gr H$m ZmoQ Z§~a 1 performing accounts. ii) Note No. 8(C) of Schedule 18-B regarding non- ii. dV©_mZ df© H$s H$a hm{Z na AmñW{JV H$a AmpñV H$s J¡a-_mÝ`Vm Ho$ recognition of Deferred Tax Asset on current year tax g§~§Y _o§ AZwgyMr 18-~r Ho$ ZmoQ 8 (gr) loss. 5. boIm narjm H$s à_wI _Xo§ 5. Key Audit Matters H«$. g§. boIm narjm H$s à_wI _Xo§ boImnarjH$mo§ H$m Odm~ Sl. No. Key Audit Matters Auditor’s Response 1 àmW{_H$Vm Am¡a J¡a àmW{_H$Vm joÌ _o§ A{JŒ_mo§ H$m dJr©H$aU h_Zo ~¢H$ Ûmam joÌdma dJr©H$aU H$s àUmbr H$s à^m{dH$Vm H$m _yë`m§H$Z {H$`m ~¢H$ Zo boImnarjmYrZ df© Ho$ Xm¡amZ àmW{_H$Vm Am¡a J¡a h¡& àmW{_H$Vm joÌ Ho$ CYmaH$Vm©Amo§ Ho$ ImVmo§ H$m nwZ: dJr©H$aU h_ joÌdma dJr©H$aU Ho$ {bE emIm Am¡a A§Mb {dda{U`mo§, emIm boIm narjH$mo§ {H$`m h¡& H$s [anmoQ© na {Z^©a Wo& Classifi cation of Advances into Priority & Non h_Zo joÌdma dJr©H$aU H$s [anmo{Q>ªJ H$s ewÕVm H$m {ZYm©aU H$aZo Ho$ {bE àmW{_ Priority Sector H$Vm joÌ Ho$ dJr©H$aU _o§ CËnmX dma ImVmo§ H$m Z_yZm MwZm h¡& Bank has made re-classifi cation of àmW{_H$Vm / J¡a-àmW{_H$Vm joÌ A{JŒ_mo§ H$s nhMmZ H$s àUmbr H$s g_rjm Am¡a borrowers’ accounts between Priority & Non Priority Sector during the year under Audit. nwZ_y©ë`m§H$Z H$aZo H$s Amdí`H$Vm h¡& We have assessed the effi cacy of the system of sector wise classifi cation by the bank. We relied on the branch and zonal returns, branch auditors reports for sector wise classifi cation. We have selected sample of product wise accounts in priority sector classifi cation to determine the correctness of reporting of sector wise classifi cation. The system of identifi cation of priority/non-priority sector advances needs review and revalidation. 2 gyMZm àm¡Úmo{JH$s àUmbr ({\ ZoH$b) AmYm[aV {dÎmr` h_ H$moa, ßb_, Am¡a Q—oµOar go àmßV OmZH$mar Am¡a SoQm H$s g_rjm Am¡a _yë`m§H$Z [anmo{Q>ªJ à{HŒ `m H$aHo$ `h AmœñV H$aVo h¢ {H$ [anmoQ© {H$E JE {dÎmr` {ddaU C{MV Am¡a {dœgZr` ~¢H$ H$moa ~¢qH$J gmoë`yeZ (gr~rEg) _o§ H$m_ H$a ahm h¢& h¡, n[aMmbZ Am¡a {dÎmr` [anmo{Q>ªJ à{HŒ `mE§ ~‹Sr _mÌm _o§ h_mao boImnarjm X¥pîQH$moU _o§ Am§V[aH$ {Z`§ÌU H$s n[aMmbZ à^mderbVm boZXoZmo§ Ho$ {bE \Œ ÝQ EÝS Am¡a ~¡H$ EÝS _o§ AmB©Qr {gñQ_ em{_b h¢& Omo {ZåZ{b{IV h¡…- na {Z^©a h¢& h_mao boImnarjm {ZåZ{b{IV H$mo naIZo Ho$ n[aàoú` _o§ H$s J`r h¡… Information Technology System (Finacle) based We conducted a review and assessment of information and data Financial reporting process derived from Core, PLUM and treasury to assure that the reported The bank is operating under Core Banking Financial Statements are proper and reliable. Solution (CBS), the operational and Financial Our audit approach consisted of testing operating effectiveness of reporting processes are dependent on IT Systems internal controls as follows: for the large volume of transactions at the front Obtaining and reviewed the IS Audit conducted during the year. end and at the back end.

ANNUAL REPORT 2018-19 131 H«$. g§. boIm narjm H$s à_wI _Xo§ boImnarjH$mo§ H$m Odm~ Sl. No. Key Audit Matters Auditor’s Response ~¢H$ Ho$ EH$sH¥ V Q—oµOar à~§YZ Ho$ {bE g{hV g^r boZXoZmo§ df© Ho$ Xm¡amZ Am`mo{OV AmB©Eg boImnarjm àmßV H$aZm Am¡a CgH$s g_rjm Ho$ {bE H$moa ~¢qH$J _o§ à^mdr SoQm H¡ ßMqaJ Am¡a [anmo{Q>ªJ H$aZm& ~¢H$ Ho$ AmB©Qr {Z`§ÌU n[adoe, AmB©Qr Zr{V`mo§ Am¡a ~moS© Ho$ gm_Zo aIo JE Ho$ {bE ~ZmE JE n`m©ßV Om±M, eof, à{HŒ `mE± Am¡a {Z`§ÌU ZmoQmo§ g{hV boImnarjm Ad{Y Ho$ Xm¡amZ _hËdnyU© n[adV©Zmo§ go gh_{V & em{_b h¢& ~¢H$ Ho$ à_wI AmB©Qr àUm{b`mo§ na gm_mÝ` AmB©Qr {Z`§ÌUmo§ Ho$ {SOmBZ, Core banking for all transactions including for H$m`m©Ýd`Z Am¡a n[aMmbZ à^m{dH$Vm H$s g_rjm H$s, Omo Z_yZm Om±M AmYma na integrated treasury management of the bank has {dÎmr` [anmoqQ©J Ho$ {bE _hËdnyU© h¢ & adequate checks, balances, processes and controls designed for the effective data capturing and boIm narjm Ho$ {bE Cn`wº à_wI ñdMm{bV Ed§ _¡ZwAb H$mamo~ma MHŒ {Z`§ÌUmo§ reporting. Am¡a {gñQ_ Ûmam l¥{OV [anmoQmoª H$s narjU H$s Om±M H$s& Obtaining an understanding of the Bank’s IT Control environment, IT Policies and key changes during the audit period including the notes placed before the Board. Reviewed the design, implementation and operating effectiveness of the Bank’s General IT controls over key IT systems that are critical to Financial reporting on test check basis. Test checked key automated and manual business cycle controls and system generated reports relevant to audit. g_o{H$V {dÎmr` {ddaUmo§ Ho$ {bE Am¡a A{^emgZ na à~§YZ Ho$ Responsibilities of Management and those charged with Xm{`Ëd Governance for the Standalone Financial Statements 6. The Bank’s Board of Directors is responsible with respect 6. ~¢H$ Ho$ {ZXoeH$ _§Sb H$m BZ g_o{H$V {dÎmr` {ddaUmo§, Omo AmB©grEAmB© to the preparation of these Standalone Financial Statements Ûmam Omar boIm§H$Z _mZH$mo§ g{hV ^maV _o§ gm_mÝ` ê$n go ñdrH¥ V that give a true and fair view of the Financial position, boIm§H$Z {gÕm§Vmo§ VWm ~¢qH$J {d{Z`_Z A{Y{Z`_, 1949 H$s Ymam Financial performance and cash ﬂ ows of the Bank in accordance with the accounting principles generally 29 Ho$ àmdYmZmo§ Ed§ g_` g_` na ^maVr` [aµOd© ~¢H$ (Ama~rAmB©) accepted in India, including the Accounting Standards Ûmam Omar n[anÌmo§ d {Xem{ZXo©emo§ Ho$ AZwgma JŒwn H$s {dÎmr` pñW{V, issued by ICAI and provisions of Section 29 of the Banking {dÎmr` {ZînmXZ Am¡a ZH$Xr àdmh H$m ghr C{MV pñW{V Xem©Vr h¡, H$mo Regulation Act, 1949 (the Act) and circulars and guidelines V¡`ma H$aZo Ho$ {bE {Oå_oXma h¡& Bg {Oå_oXmar _o§ g_yh H$s AmpñV`mo§ issued by the Reserve Bank of India (‘RBI’) from time to time. This responsibility also includes maintenance H$s gwajm Ho$ {bE Am¡a H$nQ Ed§ AÝ` A{Z`{_VVmAmo§ H$mo amoH$Zo d of adequate accounting records in accordance with the CgH$m nVm bJmZo Ho$ {bE A{Y{Z`_ Ho$ àmdYmZmo§ Ho$ AZwgma n`m©ßV provisions of the Act for safeguarding of the assets of the boIm§H$Z [aH$mS© H$m aIaImd; C{MV boIm§H$Z Zr{V`mo§ H$m M`Z Am¡a Bank and for preventing and detecting frauds and other H$m`m©Ýd`Z; {ZU©` Am¡a AmH$bZ H$aZm Omo C{MV Am¡a {ddoH$nyU© h¢; irregularities; selection and application of appropriate accounting policies; making judgments and estimates that Am¡a n`m©ßV Am§V[aH$ {dÎmr` {dda{U`mo§ H$s ê$naoIm ~ZmZm, H$m`m©Ýd`Z are reasonable and prudent; and design, implementation Am¡a aIaImd, Omo {H$ boIm§H$Z Ho$ [aH$mS© H$s gQrH$Vm Am¡a nyU©Vm and maintenance of adequate internal Financial controls, gw{Z{üV H$aZo Ho$ {bE à^mdr T§J go H$m`© H$aVo h¢ Omo {dÎmr` {ddaUmo§ that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the H$s V¡`mar Am¡a àñVw{V Ho$ {bE g§JV h¡ Am¡a ghr Am¡a C{MV pñW{V preparation and presentation of the Financial Statements Xem©Zodmbr h¡ Am¡a Mmho H$nQ `m Ìw{Q Ho$ H$maU hmoZo dmbr Jb` ~`mZmo§ go that give a true and fair view and are free from material _wº h¡, ^r em{_b h¡& {dÎmr` {ddaUmo§ H$s V¡`mar _o§, à~§YZ, H$m`©erb misstatement, whether due to fraud or error. In preparing g§ñWm Ho$ ê$n _o§ ~Zo ahZo, `Wm bmJy, H$m`©erb g§ñWm go Ow‹Sr _m_bmo§ the Financial Statements, Management is responsible for assessing the Bank’s ability to continue as a going concern, H$m àH$QZ H$aZo VWm O~ VH$ à~§YZ g_yh H$m n[ag_mnZ, g§MmbZ disclosing, as applicable, matters related to going concern amoH$Zm Zht MmhVm h¡ `m Eogm H$aZo Ho$ {bE H$moB© dmñV{dH$ {dH$ën Zht and using the going concern basis of accounting unless h¡, V~ VH$ H$m`©erb g§ñWm AmYma na boIm§H$Z H$m Cn`moJ H$aZo H$s Management either intends to liquidate the Bank or to JŒwn H$s j_Vm H$m _yë`m§H$Z H$aZo Ho$ {bE CÎmaXm`r h¡& cease operations, or has no realistic alternative but to do so.

132 {dÎmr` {ddaUmo§ H$s boIm narjm Ho$ {bE boIm narjH$ H$s Auditor’s Responsibilities for the Audit of the Financial {Oå_oXm[a`m± Statements 7. Our objectives are to obtain reasonable assurance about 7. h_mam CÔoí` Bg ~mao _o§ C{MV AmœmgZ àmßV H$aZm h¡ {H$ {dÎmr` {ddaU whether the Financial Statements as a whole are free from Mmho H$nQ `m Ìw{Q Ho$ H$maU hmoZo dmbr JbV ~`mZmo§ go nyU© ê$n go _wº material misstatement, whether due to fraud or error, and h¡ Am¡a boImnarjH$mo§ H$s [anmoQ© em{_b H$aZm h¡ {Og_o§ h_mam A{^_V to issue an auditor’s report that includes our opinion. ^r em{_b h¢& C{MV AmœmgZ CÀM ñVar` AmœmgZ h¡, na§Vw `h Jma§Qr Reasonable assurance is a high level of assurance, but is not Zht h¡ {H$ EgE Ho$ AZwgma H$s J`r boImnarjm _o§ JbV ~`mZ hmoZo na a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it CgH$m nVm bJm`m OmEJm& & JbV ~`mZ H$nQ `m Ìw{Q Ho$ H$maU hmo exists. Misstatements can arise from fraud or error and are gH$Vr h¡ Am¡a Bg {dÎmr` {dda{U`mo§ Ho$ AmYma na Cn`moº m Ho$ {dÎmr` considered material if, individually or in the aggregate, they {ZU©`mo§ na ì`{º JV ê$n go `m g_JŒ ê$n go à^m{dV H$aVm h¡ Vmo Cgo could reasonably be expected to infl uence the economic J§^ra _mZm OmEJm& EgEEg Ho$ AZwgma boImnarjm Ho$ ^mJ Ho$ ê$n _o§, decisions of users taken on the basis of these Financial Statements. As part of an audit in accordance with SAs, we h_Zo noeoda {ZU©` {b`m h¢ Am¡a nyao boImnarjm _o§ noeoda g§e`mË_H$Vm exercise professional judgment and maintain professional H$mo ~ZmE aIm& skepticism throughout the audit. h_Zo {ZåZ H$m`© ^r {H$`m h¡ : We also: • {dÎmr` {ddaUmo§ _o§ à_wI ê$n go JbV ~`mZ, Mmho do H$nQ `m Ìw{Q Ho$ • Identify and assess the risks of material misstatement of the H$maU hmo§, Ho$ Omo{I_mo§ H$s nhMmZ Am¡a CZH$m AmH$bZ H$aVo h¢, CZ Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and Omo{I_mo§ Ho$ {bE boImnarjm àUmbr V¡`ma H$aVo h¢ Am¡a H$m`m©pÝdV obtain audit evidence that is suffi cient and appropriate to H$aVo h¢ VWm h_mao A{^_V Ho$ AmYma ~ZZo Ho$ {bE n`m©ßV Am¡a C{MV provide a basis for our opinion. The risk of not detecting a boImnarjm gmú` àmßV {H$`m h¡& H$nQ Ho$ H$maU hmoZo dmbr Jb` ~`mZ material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, H$m nVm Zht bJmZo H$m Omo{I_ Ìw{Q Ho$ H$maU hmoZodmbr Omo{I_ go A{YH$ forgery, intentional omissions, misrepresentations, or the hmoVm h¡ Š`mo§{H$ YmoImY‹Sr _o§ {_br^JV, OmbgmOr, OmZ~yÂmH$a MyH$, override of internal control. JbV ~`mZr, `m Am§V[aH$ {Z`§ÌU H$m C„§KZ em{_b hmo gH$Vm h¡& • Evaluate the appropriateness of accounting policies used • Cn`moJ H$s JB© boIm§H$Z Zr{V`mo§ H$s Cn`wº Vm Am¡a à~§YZ Ûmam {H$E JE and the reasonableness of accounting estimates and related boIm§H$Z AmH$bZmo§ Am¡a g§~§{YV àH$QZmo§ H$s {dœgZr`Vm H$m _yë`m§H$Z disclosures made by Management. {H$`m h¡& • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the • h_ à~§YZ H$s Mmby boIm§H$Z AmYmamo§ Ho$ Cn`moJ H$s Cn`wº Vm Am¡a àmßV audit evidence obtained, whether a material uncertainty boImnarjm gmú` Ho$ AmYma na Š`m Eogr KQZm `m pñW{V`mo§ go g§~§{YV exists related to events or conditions that may cast signifi cant H$moB© _hËdnyU© A{Z{üVVm _m¡OyX h¡ Omo ~¢H$ H$s j_Vm na _hËdnyU© g§Xoh doubt on the bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are n¡Xm H$aVr h¡, na {ZîH$f© {ZH$mbVo h¡ & `{X h_ `h {ZîH$f© {ZH$mbVo h¢ required to draw attention in our auditor’s report to the {H$ H$moB© _hËdnyU© A{Z{üVVm {dÚ_mZ h¡, Vmo h_o§ AnZo boIm narjH$ related disclosures in the Financial Statements or, if such H$s [anmoQ© _o§ {dÎmr` {ddaUmo§ _o§ g§~§{YV àH$QZmo§ na Ü`mZ AmH${f©V H$aZm disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up hmoJm `m `{X Bg Vah Ho$ àH$QZ An`m©ßV h¢, Vmo h_mao A{^_V H$mo to the date of our auditor’s report. However, future events g§emo{YV H$aZm h¡& h_mao {ZîH$f© h_mao boIm narjH$ H$s [anmoQ© H$s VmarI or conditions may cause the bank to cease to continue as a VH$ àmßV boImnarjm gmú` Ho$ AmYma na h¡& VWm{n, ^{dî` _o§ hmoZo going concern. dmbr KQZmAmo§ `m pñW{V`mo§ go ~¢H$ H$mo H$m`©erb g§ñWm Ho$ ê$n _o§ ~Zo • Evaluate the overall presentation, structure and content of ahZm g_mßV hmo gH$Vm h¡& the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying • àH$QZ g{hV {dÎmr` {ddaUmo§ H$s g_JŒ àñVw{V, g§aMZm Am¡a {df`dñVw transactions and events in a manner that achieves fair H$m _yë`m§H$Z {H$`m h¡ Am¡a Š`m {dÎmr` {ddaU A§V{Z©{hV boZXoZ Am¡a presentation. KQZmAmo§ H$mo Bg Vah go Xem©Vo h¢ Omo C{MV àñVw{V H$a gH$Vo h¢& We communicate with those charged with governance regarding, among other matters, the planned scope and h_ AÝ` _m_bmo§ Ho$ gmW A{êmgZ go Ow‹So `moOZm~Õ H$m`©joÌ Am¡a timing of the audit and signifi cant audit fi ndings, including boImnarjm H$m g_` VWm Am§V[aV {Z`§ÌUmo§ _o§ nmB© JB© C„oIZr` H${_`mo§ any signifi cant defi ciencies in internal control that we g{hV boImnarjm {ZîH$f© Ho$ ~mao _o§ gy{MV H$aVo h¢& identify during our audit.

ANNUAL REPORT 2018-19 133 h_ CZ bmoJmo§ H$mo Omo A{^emgZ Ho$ {bE CÎmaXm`r h¡, {ddaU Ho$ gmW `h We also provide those charged with governance with a gy{MV H$aVo h¢ {H$ h_Zo ñdV§ÌVm Ho$ g§~§Y _o§ g§JV Z¡{VH$ Amdí`H$VmAmo§ Statement that we have complied with relevant ethical requirements regarding independence, and to communicate H$m AZwnmbZ {H$`m h¡, Am¡a CZ g^r g§~§Y Ed§ AÝ` _m_bmo§ Ho$ ~mao _o§ with them all relationships and other matters that may ^r gy{MV {H$`m h¡, {Og_o§ g_w{MV ê$n go h_mar ñdV§ÌVm Am¡a Ohm± bmJy reasonably be thought to bear on our independence, and h¡, g§~§{YV gwajm, H$mo à^m{dV H$a gH$Vm h¡& where applicable, related safeguards.

A{êmgZ Ho$ Ow‹Sr ~mVmo§ H$mo g§gy{MV _m_bmo§ go, h_ CZ _m_bmo§ H$mo From the matters communicated with those charged with {ZYm©[aV H$aVo h¢ Omo dV©_mZ Ad{Y Ho$ {dÎmr` {ddaUmo§ H$s boImnarjm governance, we determine those matters that were of most _o§ g~go A{YH$ _hËd aIVo h¢ Am¡a Bg{bE do boImnarjm g§~§Yr signifi cance in the audit of the Financial Statements of the à_wI _m_bo h¢& h_ AnZo boImnarjH$ H$s [anmoQ© _o§ BZ _m_bmo§ H$mo V^r current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or àñVwV H$aVo h¢ O~ H$mZyZ `m {d{Z`_Z Bg _m_bo Ho$ ~mao _o§ gmd©O{ZH$ regulation precludes public disclosure about the matter or àH$QrH$aU Ho$ {bE amoH$ Zht bJmVm h¡ `m AË`§V {deof n[apñW{V`mo§ _o§, when, in extremely rare circumstances, we determine that a h_ `h {ZU©` boVo h¢ {H$ h_mar [anmoQ© _o§ {H$gr _m_bo H$mo àH$Q Zht {H$`m matter should not be communicated in our report because OmZm h¡ Š`mo§{H$ Eogm H$aZo Ho$ à{VHy b n[aUm_ gmd©O{ZH$ {hV Ho$ {déÕ the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefi ts of such hmo gH$Vr h¡& communication. AÝ` _m_bo Other Matter 8. h_Zo 2412 emImAmo§, {Og_o§ gm§{d{YH$ boImnarjH$mo§ Ûmam 8. We did not audit the Financial Statements of 2412 boImnmar{jV 1477 emImE± Am¡a AboImnar{jV 935 emImE± branches, comprising of 1477 branches audited by h¡, {OgH$s {dÎmr` {ddaUr _o§ 31 _mM©, 2019 H$mo Hw b AmpñV`m± Statutory Branch Auditors and 935 unaudited branches, included in the Standalone Financial Statements of the 168647.62 H$amo‹S h¡ Am¡a Cgr {XZ H$mo g_mßV df© Ho$ {bE Hw b Bank whose Financial Statements refl ect total assets of amOñd 8666.43 H$amo‹S h¡ O¡go {H$ ~¢H$ Ho$ EH$b {dÎmr` {dda{U`mo§ _o§ `168647.62 crore as at 31st March 2019 and Total em{_b h¢, H$s {dÎmr` {dda{U`mo§ H$s boImnarjm Zht H$s h¡& 1477 Revenue of `8666.43 crore for the year ended on that date, as considered in the Standalone Financial Statements. The emImAmo§ H$s {dÎmr` {dda{U`m± emIm boImnarjH$mo§ Ûmam boImnar{jV Financial Statements of 1477 branches have been audited h¡, {Ogo h_o§ CnbãY H$amB© JB© h¡ Am¡a h_mar am` _o§ emIm go g§~§{YV by the branch auditors whose reports have been furnished am{e Am¡a àH$QZmo§ H$m g§~§Y h¡, dh Eogr emIm boImnarjH$mo§ H$s [anmoQ© to us, and in our opinion in so far as it relates to the amounts and disclosures included in respect of branches, is Ho$ AmYma na h¡& based on the report of such branch auditors. Bg _m_bo Ho$ g§~§Y _o§ h_mar am` _o§ g§emoYZ Zht h¡& Our opinion is not modifi ed in respect of this matter. AÝ` {d{YH$ Ed§ {Z`m_H$ Amdí`H$VmE±: Report on Other Legal and Regulatory Requirements 9. VwbZ nÌ Am¡a bm^ hm{Z boIm ImVm ~¢qH$J {d{Z`_Z A{Y{Z`_, 9. The Balance Sheet and the Profi t and Loss Account have been drawn up in accordance with Section 29 of the 1949 H$s Ymam 29 Ho$ AZwgma V¡`ma {H$`m J`m h¡& Banking Regulation Act, 1949. 10. Cn`w©º 6 go 8 VH$ Ho$ n¡amJŒm\ _o§ ~VmB© JB© gr_mAmo§ VWm ~¢qH$J H§ nZr 10. Subject to the limitations of the audit indicated in (CnHŒ _mo§ H$m AO©Z Ed§ A§VaU) A{Y{Z`_, 1970/1980 Ûmam paragraphs 6 to 8 above and as required by the Banking Companies (Acquisition and Transfer of Undertakings) Ano{jVmZwgma, Am¡a CZ_o§ Ano{jV àH$QZmo§ H$s gr_mAmo§ Ho$ ^r AYrZ, Act, 1970/1980, and subject also to the limitations of h_ [anmoQ© H$aVo h¢ {H$… disclosure required therein, we report that: H) h_Zo Eogr g^r gyMZm Ed§ ñnîQrH$aU àmßV {H$E h¢ Omo h_mar a) We have obtained all the information and explanations A{YH$V_ OmZH$mar Ed§ {dœmg _o§ h_mar boIm-narjm Ho$ {bE which, to the best of our knowledge and belief, were necessary for the purposes of our audit and have found Amdí`H$ Wo Am¡a CÝho§ g§VmofOZH$ nm`m h¡; them to be satisfactory; I). ~¢H$ Ho$ Omo boZXoZ h_mao Ü`mZ _o§ AmE, do ~¢H$ Ho$ A{YH$mamo§ Ho$ b) The transactions of the Bank, which have come to our ^rVa Wo; Am¡a notice, have been within the powers of the Bank; and c) The returns received from the offi ces and branches of

J) ~¢H$ Ho$ H$m`m©b`mo§ Am¡a emImAmo§ go àmßV {dda{U`m± h_mar boIm- the Bank have been found adequate for the purposes of narjm Ho$ {bE n`m©ßV nmB© JB© h¢& our audit.

134 11. h_ AmJo [anmoQ© H$aVo h¢ {H$… 11. We further report that: H$) h_mar am` _o§ h_mar boImnarjm Ho$ {bE h_mao Ûmam Xm¡am Zht H$s a) in our opinion, proper books of account as required by law have been kept by the Bank so far as it appears JB© emImAmo§ go àmßV Cº ~{h`mo§ VWm C{MV {dda{U`mo§ H$s Om±M from our examination of those books and proper go àVrV hmoVm h¡ {H$ ~¢H$ Zo {d{Y Ûmam Ano{jVmZwgma C{MV boIm returns adequate for the purposes of our audit have ~{h`m± aIr h¡; been received from branches not visited by us; b) the Balance Sheet, the Profi t and Loss Account and the I) Cº [anmoQ© _o§ em{_b VwbZnÌ, bm^ hm{Z {ddaU Am¡a ZH$X Statement of Cash Flows dealt with by this report are àdmh {ddaUr boIm ~{h`mo§ go Am¡a h_mao Ûmam Xm¡am Zht H$s JB© in agreement with the books of account and with the emImAmo§ go àmßV {dda{U`mo§ go _ob aIVo h¢; returns received from the branches not visited by us; c) the reports on the accounts of the branch offi ces J) ~¢H$ {d{Z`_Z A{Y{Z`_, 1949 H$s Ymam 29 Ho$ VhV ~¢H$ Ho$ audited by branch auditors of the Bank under Section emIm boImnarjH$mo§ Ûmam nar{jV emIm H$m`m©b`mo§ Ho$ boImo§ H$s 29 of the Banking Regulation Act, 1949 have been sent to us and have been properly dealt with by us in [anmoQ© h_o§ ào{fV H$s J`r Am¡a Bg [anmoQ© H$mo V¡`ma H$aZo _o§ h_Zo preparing this report; and CgH$m Cn`moJ {H$`m h¡; Am¡a d) In our opinion, the Balance Sheet, the Profi t and Loss K) h_mar am` _o§, VwbZ nÌ, bm^ hm{Z ImVm ZH$Xr àdmh {ddaU Account and the Statement of Cash Flows comply with the applicable accounting standards, to the extent bmJy boIm _mZH$mo§ H$m, Bg gr_m VH$ {H$ do Ama~rAmB© Ûmam they are not inconsistent with the accounting policies {ZYm©[aV boIm§H$Z Zr{V`mo§ Ho$ {déÕ Zht h¡, AZwnmbZ H$aVo h¢& prescribed by RBI.

H¥$Vo XÎmm qgJbm EÊS H§ . H¥$Vo E. Ho . g~V EÊS H§ . H¥$Vo à_moX EÊS Egmo{gEQ²g gZXr boImH$ma gZXr boImH$ma gZXr boImH$ma E\$AmaEZ-006185EZ E\$AmaEZ-321012B© E\$AmaEZ-001557gr (grE g§Ord AJ«dmb) (grE E. Ho . g~V) (grE a{dÝÐ amZrdmbm) gmÂmoXma gmÂmoXma gmÂmoXma gXñ` g§.503932 gXñ` g§. 30310 gXñ` g§. 073191 H¥$Vo MÝÐZ EÊS a_Z (H¥$Vo Eg. am_mZ§X Aæ`a EÊS H§ .) gZXr boImH$ma gZXr boImH$ma E\$AmaEZ-000571Eg E\$AmaEZ-000990EZ (grE Eg.Or. H$ë`mUa_U) (grE {~ZmoX gr. _hmamUm) gmÂmoXma gmÂmoXma gXñ` g§.10652 gXñ` g§.056373 ñWmZ … _§Jbyé {XZm§H$ … 17 _B©, 2019

For Datta Singla & Co. For A. K. Sabat & Co. For Pramod & Associates Chartered Accountants Chartered Accountants Chartered Accountants FRN - 006185N FRN - 321012E FRN - 001557C [CA Sanjeev Aggarwal] [CA A. K. Sabat ] [CA Ravindra Raniwala] Partner Partner Partner Membership No. 503932 Membership No. 30310 Membership No. 073191 For Chandran & Raman For S. Ramanand Aiyar & Co. Chartered Accountants Chartered Accountants FRN - 000571S FRN: 000990N [CA S. G. Kalyanaraman] [CA Binod C. Maharana] Partner Partner Membership No. 10652 Membership No. 056373 Place : Mangaluru Date : 17 May, 2019

ANNUAL REPORT 2018-19 135 H$mnm}aoeZ ~¢H$ CORPORATION BANK 31 _mM©, 2019 H$s pñW{V H$m EH$b VwbZ-nÌ STANDALONE BALANCE SHEET AS ON 31st MARCH, 2019 (` 000’s hQ>mH$a Omitted) AZwgyMr g§. `Wm As on `Wm As on {ddaU PARTICULARS Schedule 31.03.2019 31.03.2018 No. ` ` ny±Or Am¡a Xo`VmE± CAPITAL AND LIABILITIES ny±Or Capital 1 1198,83,68 333,10,97 Am~§Q>Z hoVw b§{~V eoà AmdoXZ am{e/Share Application Money Pending Allotment – – Ama{jV {Z{Y`m± Ed§ A{Yeof Reserves and Surplus 2 15366,02,45 10512,74,23 O_mam{e`m± Deposits 3 184567,84,45 183315,94,99 CYma am{e`m± Borrowings 4 8394,25,52 22171,13,35 AÝ` Xo`VmE± VWm àmdYmZ Other Liabilities and Provisions 5 4050,89,28 5558,37,00 `moJ TOTAL 213577,85,38 221891,30,54 AmpñV`m± ASSETS ZH$Xr Ed§ ^maVr` [aµOd© ~¢H$ _| eof Cash and Balances with Reserve Bank of India 6 9661,06,85 11140,15,36 ~¢H$m| _| eof VWm _m±J Ed§ Aën gyMZm na YZ 7 2907,96,58 177,52,65 Balances with Banks and Money at Call and Short Notice {Zdoe Investments 8 59979,19,81 70349,75,60 A{J«_ Advances 9 121251,20,92 119868,83,71 ñWmB© AmpñV`m± Fixed Assets 10 1421,84,82 1229,21,10 AÝ` AmpñV`m± Other Assets 11 18356,56,40 19125,82,12 `moJ TOTAL 213577,85,38 22,1891,30,54 AmH$pñ_H$ Xo`VmE± Contingent Liabilities 12 62625,62,97 87356,57,84 dgybr hoVw {~b Bills for Collection 13747,30,85 13893,39,89 _hËdnyU© boIm Zr{V`m± Signifi cant Accounting Policies 17 boIm g§~§Yr {Q>ßn{U`m± Notes on Accounts 18 CnamoŠV d{U©V AZwgy{M`m± VwbZ nÌ H$m A{^ÝZ ^mJ h§¡& The schedules referred to above form an integral part of Balance Sheet. [nr.dr.^maVr] h_mar g_{XZm§{H$V [anmoQ>© Ho$ AZwgma à~§Y {ZXoeH$ Ed§ grB©Amo {ZXoeH H¥$Vo XÎmm qgJbm EÊS H§ . H¥$Vo M§ÐZ EÊS> a_Z [Jmonmb _wabr ^JV] _Zrf JwßVm gZXr boImH ma FRN-006185N gZXr boImH$ma FRN-000571S H$m¶©nmbH {ZXoeH (grE g§Ord AJ«dmb) [{~énmj {_lm] nr. Ho . nm§Sm gmÂmoXma gXñ` g§.503932 (grE Eg.Or. H$ë`mUa_U) H m`©nmbH {ZXoeH Ho . lr{Zdmg _y{V© gmPoXma gXñ`Vm g§.10652 [dr. _wÎmwH¥ îUZ] H¥$Vo E. Ho . g~V EÊS H§ . E_. ^Jd§V amd gZXr boImH ma FRN-321012E H¥$Vo Eg. am_mZ§X Aæà EÊS> H§$. _hmà~§YH àXrn Hw$_ma O¡Z gZXr boImH$ma FRN-000990N (grE E. Ho . g~V) [kmZ a§OZ gma§Jr] {MÌm Jm¡ar bmb (grE {~ZmoX gr. _hmamUm) Cn _hm à~§YH gmÂmoXma gXñ` g§. 30310 gmPoXma gXñ`Vm g§.056373 [gw^mf Hw _ma Ho ed] H¥$Vo à_moX EÊS Egmo{gEQ²g Cn _hmà~§YH gZXr boImH ma FRN-001557 C ñWmZ … _§Jbyé (grE a{d§Ð amZrdmbm) {XZm§H … 17 ‘B©, 2019 gmÂmoXma gXñ` g§. 073191

136 31 _mM©, 2019 H$mo g_mßV df© Ho$ {bE EH$b bm^ d hm{Z boIm STANDALONE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH, 2019 (` 000’s hQ>mH$a Omitted) 31.03.2019 H$mo 31.03.2018 H$mo AZwgyMr g§. g_mßV df© g_mßV df© {ddaU PARTICULARS Schedule Year ended on Year ended on No. 31.03.2019 31.03.2018 ` ` I. Am` INCOME A{O©V ã`mO Interest earned 13 15622,63,03 17628,33,27 AÝ` Am` Other income 14 1872,06,87 2313,08,08 `moJ TOTAL 17494,69,90 19941,41,35 II. ì`` EXPENDITURE ì`` {H$`m J`m ã`mO Interest Expended 15 10114,16,60 12790,10,86 n[aMmbZ ì`` Operating Expenses 16 3486,06,80 3200,88,85 àmdYmZ Ed§ AmH$pñ_H$VmE± Provisions and Contingencies 10227,44,79 8004,35,95 `moJ TOTAL 23827,68,19 23995,35,66 III. df© hoVw {Zdb bm^/(hm{Z)>NET PROFIT/(LOSS) FOR THE YEAR (6332,98,29) (40,539,431) IV. {d{Z`moJ (go/H$mo) APPROPRIATIONS (From/To) gm§{d{YH$ Ama{jV {Z{Y`m| _| AÝVaU Transfer to Statutory Reserves - - ñQ>m\$ H$ë`mU {Z{Y _| AÝVaU Transfer to Staff Welfare Fund - - {Zdoe Ama{jV {Z{Y _| AÝVaU Transfer to Investment Reserve - (106,81,61) ny±Or Ama{jV {Z{Y _| AÝVaU Transfer to Capital Reserve - - {deof Ama{jV {Z{Y _| AÝVaU Transfer to Special Reserves - - gm_mÝ` Ama{jV {Z{Y _| AÝVaU Transfer to General Reserves - - àXÎm A§V[a_ bm^m§e Interim Dividend Paid - - àñVm{dV bm^m§e Proposed Dividend - - àXÎm A§V[a_ bm^m§e na H$a Tax on Interim Dividends paid - - VwbZ nÌ _| bo Om`m J`m eof Balance carried over to B/S (63,329,829) (3947,12,70) `moJ TOTAL (63,329,829) (4053,94,31) à{V eoà AO©Z Earning per Share (`) (30.06) (35.30) CnamoŠV d{U©V AZwgy{M`m± bm^ Ed§ hm{Z ImVm H$m A{^ÝZ ^mJ h§¡& The schedules referred to above form an integral part of Profi t and Loss Account. As per our Report of even date [P. V. Bharathi] Directors For Datta Singla & Co. For Chandran & Raman Managing Director & Manish Gupta Chartered Accountants FRN-006185N Chartered Accountants FRN-000571S Chief Executive Offi cer [CA Sanjeev Aggarwal] [CA S.G. Kalyanaraman] P. K. Panda [Gopal Murli Bhagat] (M. No. 503932) Partner (M. No. 10652) Partner Executive Director K. Srinivasa Murthy For A. K. Sabat & Co. For S. Ramanand Ayar & Co. [Birupaksha Mishra] M. Bhagavantha Rao Chartered Accountants FRN-000990N Executive Director Chartered Accountants FRN-321012E Pradeep Kumar Jain [CA A. K. Sabat] [CA Binod C Maharana] [V. Muthukrishnan] Chitra Gouri Lal (M. No. 30310) Partner (M. No. 056373) Partner General Manager [Gyana Ranjan Sarangi] For Pramod & Associates Chartered Accountants FRN-001557C Deputy Gen. Manager [CA Ravindra Raniwala] (Subhash Kumar Keshav) (M. No. 073191) Partner Deputy Gen. Manager Place : Mangaluru Date : 17 May, 2019 ANNUAL REPORT 2018-19 137 VwbZ nÌ _| g§b¾ AZwgy{M`m± SCHEDULES ANNEXED TO BALANCE SHEET (` 000’s hQ>mH$a Omitted) `Wm As on `Wm As on {ddaU PARTICULARS 31.03.2019 31.03.2018 ` ` ` ` AZwgyMr 1 – n±yOr SCHEDULE 1 – CAPITAL àm{YH¥$V n±yOr AUTHORISED CAPITAL àËòH$ `2 Ho$ 1500,00,00,000 B©pŠdQ>r eoà 1500,00,00,000 Equity Shares of `2 each 3000,00,00 3000,00,00 {ZJ©{_V Ed§ A{^XÎm n±yOr ISSUED & SUBSCRIBED CAPITAL àËòH$ `2 Ho$ 599,41,84,034 B©pŠdQ>r eoà (JV df© àËòH$ `2 Ho$ 166,55,48,619 B©pŠdQ>r eoà) 599,41,84,034 Equity Shares of `2 each (Previous year 166,55,48,619 Equity Shares of `2 each) àma§{^H$ eof Opening Balance 333,10,97 229,41,13 df© Ho$ Xm¡amZ n[adY©Z/(OãVr) Addition/(Forfeited) during the year 865,72,71 1198,83,68 103,69,84 333,10,97 àXÎm n±yOr PAID-UP CAPITAL H$) H|$Ð gaH$ma Ûmam Ym[aV àËòH$ `2 Ho$ 560,47,99,271 B©pŠdQ>r eoà (JV df© àËòH$ `2 Ho$ 133,02,04,426 B©pŠdQ>r eoà) a) Held by Central Government 1120,95,99 266,04,09 560,47,99,271 Equity Shares of `2 each (Previous year 133,02,04,426 Equity Shares of `2 each) I) OZVm d AÝ` Ûmam Ym[aV àËòH$ `2 Ho$ 38,93,84,763 B©pŠdQ>r eoà (JV df© àËòH$ `2 Ho$ 33,53,44,193 B©pŠdQ>r eoà) 67,06,88 b) Held by the Public & Others 77,87,70 38,93,84,763 Equity Shares of `2 each (Previous Yr. 33,53,44,193 Equity Shares of `2 each)

`moJ TOTAL 1198,83,68 333,10,97

AZwgyMr 2 – Ama{jV {Z{Y`m± Am¡a A{Yeof SCHEDULE 2 – RESERVES AND SURPLUS I. gm§{d{YH$ Ama{jV {Z{Y`m± Statutory Reserves àmapå^H$ eof Opening Balance 3368,88,47 3368,88,47 bm^ go {d{Z`moJ Appropriation from Proﬁ t – – {Zdoem| na _yë`õmg Ho$ A{V[aŠV àmdYmZ go {d{Z`moJ Appropriation from excess Provision of Depreciation on Investments – – {Zdoe CVma-M‹T>md Ama{jV {Z{Y go A§VaU – – Transfer from Investment Fluctuation Reserve 3368,88,47 3368,88,47

138 AZwgyMr-2 SCHEDULE – 2 (H«$_e: Contd.) (` 000’s hQ>mH$a Omitted) `Wm As on `Wm As on {ddaU PARTICULARS 31.03.2019 31.03.2018 ` ` ` ` II. n±yOr Ama{jV {Z{Y`m± Capital Reserves àmapå^H$ eof Opening Balance 1175,22,00 1175,22,00 df© Ho$ Xm¡amZ n[adY©Z Additions during the year – –

– 1175,22,00 – 1175,22,00 III. eo`a àr{_`_ Share Premium àmapå^H$ eof Opening Balance 5170,29,94 3086,99,78 df© Ho$ Xm¡amZ n[adY©Z Additions during the year 10911,64,57 2083,30,16

– 16081,94,51 – 5170,29,94 IV. amOñd Am¡a AÝ` Ama{jV {Z{Y`m± Revenue & Other Reserves H$) amOñd Ama{jV {Z{Y a) Revenue Reserve àmapå^H$ eof Opening Balance 3112,78,74 3095,47,45 df© Ho$ Xm¡amZ n[adY©Z Additions during the year 19,25,54 17,31,28 3132,04,27 3112,78,73 df© Ho$ Xm¡amZ H$Q>m¡Vr Deductions during the year – 3132,04,27 – 3112,78,73 I) {deof Ama{jV {Z{Y b) Special Reserve àmapå^H$ eof Opening Balance 1430,75,89 1430,75,89 df© Ho$ Xm¡amZ n[adY©Z Additions during the year – – df© Ho$ Xm¡amZ H$Q>m¡Vr Deductions during the year – 1430,75,89 – 1430,75,89 J) \$maoŠg ñd¡n na {deof Ama{jV {Z{Y bm^ c) Special Reserve Proﬁ t on Fx Swap àmapå^H$ eof Opening Balance 5,84,85 5,84,85 df© Ho$ Xm¡amZ n[adY©Z Additions during the year – – df© Ho$ Xm¡amZ H$Q>m¡Vr Deductions during the year – 5,84,85 – 5,84,85 K) {Zdoe Ama{jV {Z{Y d) Investment Reserve àmapå^H$ eof Opening Balance – 106,81,61 bm^-hm{Z {d{Z`moJ ImVo go A§VaU -106,81,61 Transfer from Proﬁ t and Loss Appropriation Account – –

V. n[aga Ho$ nwZ_y©ë`m§H$Z hoVw Ama{jV {Z{Y Reserve for Revaluation of Premises àmapå^H$ eof Opening Balance 646,81,55 663,27,86 df© Ho$ Xm¡amZ n[adY©Z Additions during the year 274,61,95 – KQ>mE±: df© Ho$ Xm¡amZ AmhaU Less : Withdrawal during the year 19,25,54 902,17,96 16,46,31 646,81,55 VI. bm^ d hm{Z ImVo _| eof Balance in Proﬁ t & Loss A/c (10730,85,49) (43,978,720) Hw$b TOTAL (I+II+III+IV+V+VI) 15366,02,45 10512,74,23

ANNUAL REPORT 2018-19 139 (` 000’s hQ>mH$a Omitted) `Wm As on `Wm As on {ddaU PARTICULARS 31.03.2019 31.03.2018 ` ` AZwgyMr 3 – O_mam{e`m± SCHEDULE 3 – DEPOSITS H$. A. I. _m±J O_mam{e`m± Demand Deposits i) ~¢H$m| go From Banks 31,69,15 22,71,85 ii) AÝ`m| go From Others 16168,06,59 14675,99,02 II. ~MV ~¢H$ O_mam{e`m± Savings Bank Deposits 42106,72,01 39424,40,64 III. _r`mXr O_mam{e`m± Term Deposits i) ~¢H$m| go From Banks 164,33,67 176,24,70 ii) AÝ`m| go From Others * 126097,03,03 129016,58,78 `moJ TOTAL (I, II d & III) 184567,84,45 183315,94,99 I. B. i) ^maV _| pñWV emImAm| H$s O_mE± Deposits of branches in India 184567,84,45 183315,94,99 ii) ^maV Ho$ ~mha pñWV emImAm| H$s O_mE± Deposits of branches outside India – – `moJ TOTAL 184567,84,45 183315,94,99 * {Og_| H$mn©JmoëS> O_mE± gpå_{bV h¢ which includes Corpgold Deposits 13,97,98 14,88,80 E\$grEZAma O_mE± FCNR Deposits 1527,77,14 1574,97,47 AZwgyMr 4 – CYma am{e`m± SCHEDULE 4 – BORROWINGS I. ^maV _| CYma am{e`m± Borrowings in India i) ^maVr` [aµOd© ~¢H Reserve Bank of India 425,00,00 8750,00,00 ii) AÝ` ~¢H$ Other Banks 4282,94,46 6479,32,76 iii) AÝ` g§ñWmE± Ed§ EOo§{g`m± Other Institutions and Agencies 86,31,06 104,30,59 iv) Agwa{jV ~m§S/AmB©nrS>rAmB© VWm AYrZñW H$O©* Unsecured Bonds/IPDI and Subordinated Debts* 3600,00,00 6837,50,00 `moJ TOTAL 8394,25,52 22171,13,35 II. ^maV go ~mha emImAm| H$s CYma am{e`m± Borrowings outside India – – `moJ TOTAL (I d & II) 8394,25,52 22171,13,35 Cn`w©ŠV I d II _| em{_b gwa{jV CYma am{e`m± Secured Borrowings included in I & II above Nil Nil

* Ama{jV {d_moÀ` ~m§S> (Q>rà-II) Includes Unsecured Redeemable Bonds (Tier II) 3100,00,00 4300,00,00 Q>rà-I ~o{_`mXr ~m§S> Tier I Perpetual Bonds 500,00,00 737,50,00 A{V[aŠV Q>rà-I ~o{_`mXr ~m§S> Additional Tier I Perpetual Bonds – 1800,00,00

140 (` 000’s hQ>mH$a Omitted) `Wm As on `Wm As on {ddaU PARTICULARS 31.03.2019 31.03.2018 ` ` AZwgyMr 5 – AÝ` Xo`VmE± Ed§ àmdYmZ SCHEDULE 5 – OTHER LIABILITIES AND PROVISIONS I. Xo` {~b Bills Payable 487,96,95 1137,99,46 II. AÝVa-H$m`m©b` g_m`moOZ ({Zdb) Inter-Ofﬁ ce Adjustments (Net) 114,83,76 – III. Cn{MV ã`mO Interests accrued 774,67,39 773,80,37 IV. AÝ` (àmdYmZm| H$mo em{_b H$aHo$)* Others (including provisions)* 2673,41,18 3646,57,17 `moJ TOTAL 4050,89,28 5558,37,00 * ""_mZH$ AmpñV`m| na AmH$pñ_H$ àmdYmZ'' gpå_{bV h¢ Includes “Contingent Provisions against Standard Assets” 740,23,78 559,71,25 AZwgyMr 6 – ZH$X Am¡a ^maVr` [a‹Od© ~¢H$ _| eof SCHEDULE 6 – CASH AND BALANCES WITH RESERVE BANK OF INDIA I. hñVJV amoH$‹S> ({dXoer _wÐm ZmoQ> Am¡a JmoëS> g{hV) Cash in hand (including foreign currency notes and gold) 1083,77,40 1234,33,48 II. ^maVr` [aµOd© ~¢H$ Ho$ eof Balances with Reserve Bank of India Mmby ImVo _| in Current Accounts 7202,29,45 8705,81,88 AÝ` ImVm| _| in Other Accounts 1375,00,00 1200,00,00 `moJ TOTAL (I, II d & III) 9661,06,85 11140,15,36 AZwgyMr 7 – ~¢H$m| _| eof Ed§ _m±J VWm Aën gyMZm na YZ SCHEDULE 7 – BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE I. ^maV _| In India i) ~¢H$m| _| eof Balances with Banks H$ a) Mmby ImVm| _| In Current Accounts 72,45,48 143,30,53 I b) AÝ` O_m ImVm| _| In Other Deposit Accounts 2,80 – ii) _m±J Ed§ Aën gyMZm na YZ Money at call and short notice H$ a) ~¢H$m| _| with Banks – II. ^maV Ho$ ~mha Outside India i) Mmby ImVm| _| In Current Accounts – 34,21,92 ii) AÝ` O_m ImVm| _| In Other Deposit Accounts 2835,48,30 20 iii) _m§J Am¡a Aën gyMZm na YZ Money at call and Short notice – – `moJ TOTAL 2835,48,30 34,22,12 gH$b `moJ GRAND TOTAL (I d & II) 2907,96,58 177,52,65

ANNUAL REPORT 2018-19 141 (` 000’s hQ>mH$a Omitted) `Wm As on `Wm As on {ddaU PARTICULARS 31.03.2019 31.03.2018 ` ` AZwgyMr 8 – {Zdoe SCHEDULE 8 – INVESTMENTS {Zdoe (g_J«) 61215,16,47 71488,77,29 Investments (Gross) KQ>mE±: _yë`õmg Ho$ {bE àmdYmZ 1235,96,66 1139,01,69 Less: Provision for Depreciation {Zdb {Zdoe Net Investments 59979,19,81 70349,75,60 I. ^maV _| {Zdoe Investments in India in i) gaH$mar à{V^y{V`m± Government Securities 41474,56,08 58173,35,57 ii) AÝ` AZw_mo{XV à{V^y{V`m± Other Approved Securities 99,61 1,49,39 iii) eo`a Shares 245,87,87 465,23,72 iv) {S>~|Ma Ed§ ~m§S> Debentures and Bonds 2471,85,58 3169,63,13 v) g§`wŠV AZwf§{J`m/CÚ_ Subsidiaries /Joint venture H$ a) jo.J«m. ~¢H$ _| {Zdoe Investments in R.R.B. – – I b) AZwf§{J`m| _| {Zdoe Investments in Subsidiaries 75,00,00 75,00,00 vi) AÝ`/Others H$ a) O_mAm| H$m à_mUnÌ Certiﬁ cate of Deposits 559,70,31 3101,92,16 I b) dm{UpÁ`H$ nÌ Commercial Paper – 1789,58,86 J c) å`yMwAb \§$S> H$s BH$mB©`m± Units of Mutual Funds 13,12,43 14,58,32 K d) d|Ma n§yOr {Z{Y`m°§ Venture Capital Funds 72,88,11 78,43,02 L e) gaH$mar {deof à{V^y{V`m± Govt. Special Securities 14926,57,16 3340,34,30 M f) à{V^y{V àmpßV`m± Security Receipts 138,08,48 139,62,95 `moJ TOTAL 59978,65,63 70349,21,42 II. ^maV Ho$ ~mha AÝ` {Zdoem| _| {Zdoe-pñdâQ>> _| 54,18 54,18 Investments outside India in other Investments-In Swift `moJ TOTAL (I d & II) 59979,19,81 70349,75,60

142 (` 000’s hQ>mH$a Omitted) `Wm As on `Wm As on {ddaU PARTICULARS 31.03.2019 31.03.2018 ` ` AZwgyMr 9 – A{J«_ SCHEDULE 9 – ADVANCES H$ A. i) IarXo Ed§ ^wZmE JE {~b Bills purchased and discounted 931,80,63 1680,15,72 ii) ZH$X O_mE±, AmodaS´>mâQ VWm _m±J na MwH$m¡Vr `mo½` F$U Cash Credits, Overdrafts and Loans repayable on demand 41619,71,21 42300,61,30 iii) gmd{Y F$U Term loans 78699,69,08 75888,06,69 `moJ TOTAL 121251,20,92 119868,83,71 I B. i) _yV© AmpñV`m| Ûmam à{V^yV (~hr F$Um| na A{J«_ em{_b h¢) Secured by Tangible Assets 95914,76,45 106030,83,48 (includes Advances against Book Debts) ii) ~¢H$/gaH$mar Jma§{Q>`m| Ûmam a{jV Covered by Bank/Government Guarantees 10,61,47 35,92,33 iii) Agwa{jV Unsecured 25325,83,00 13802,07,90 `moJ TOTAL 121251,20,92 119868,83,71 J C. I. ^maV _| A{J«_ Advances in India i) àmW{_H$Vm àmßV joÌ Priority Sector 49505,99,46 54623,03,26 ii) gmd©O{ZH$ joÌ Public Sector 10328,63,88 1029,96,41 iii) ~¢H$ Banks – – iv) AÝ` Others 61416,57,58 64215,84,04 `moJ TOTAL 121251,20,92 119868,83,71 J C. II. ^maV go ~mha A{J«_ Advances outside India – – gH$b `moJ GRAND TOTAL (J C. I d & J C. II) 121251,20,92 119868,83,71

ANNUAL REPORT 2018-19 143

(` 000’s hQ>mH$a Omitted) `Wm As on `Wm As on {ddaU PARTICULARS 31.03.2019 31.03.2018 ` ` ` ` AZwgyMr 10 – ñWmB© AmpñV`m± SCHEDULE 10 – FIXED ASSETS I. n[aga (nwZ_©yë`m§{H$V n[aga g{hV) Premises (including revalued premises) {nN>bo df© Ho$ 31 _mM© H$s pñW{V Ho$ AZwgma bmJV na At cost as on 31st March of the preceding year 924,01,08 923,47,53 df© Ho$ Xm¡amZ n[adY©Z Additions during the year 278,80,22 59,10 1202,81,30 924,06,63 df© Ho$ Xm¡amZ H$Q>m¡{V`m± Deductions during the year 9,83,52 5,55 1192,97,78 924,01,08 `Wm{V{W _yë`õmg Depreciation to date 151,42,90 132,76,13 1041,54,88 791,24,95 Omo‹S>|: H$m`©JV ny±Or Add: Capital Work in progress 4,29,26 1045,84,14 69,50 791,94,45 II. AÝ` ñWmB© AmpñV`m± Other Fixed Assets (\$ZuMa Am¡a Ow‹S>Zma g{hV including furniture and ﬁ xtures) nyd©dVu df© Ho$ 31 _mM© H$s pñW{V Ho$ AZwgma bmJV na At cost as on 31st March of the preceding year 1416,61,69 1355,79,56 df© Ho$ Xm¡amZ n[adY©Z Additions during the year 57,52,75 78,16,07 1474,14,44 1433,95,63 df© Ho$ Xm¡amZ H$Q>m¡{V`m± Deductions during the year 19,50,28 17,33,94 1454,64,17 1416,61,69 `Wm{V{W _yë`õmg Depreciation to date 1137,50,48 1040,07,01 317,13,69 376,54,68 Omo‹S>|: H$m`©JV ny±Or Add: Capital Work in progress 11,05 317,24,74 43,90 376,98,58 III. A_yV© AmpñV`m± Intangible Assets (H§$ß`yQ>a gm°âQ>do`a) (Computer Software) nyd©dVu df© 31 _mM© H$s pñW{V Ho$ AZwgma bmJV na At cost as on 31st March of the preceding year 243,06,48 205,59,05 df© Ho$ Xm¡amZ n[adY©Z Additions during the Year 37,04,08 37,47,81 280,10,56 243,06,86 df© Ho$ Xm¡amZ H$Q>m¡{V`m± Deductions during the Year 9,48,94 38 270,61,62 243,06,48 `Wm{V{W _yë`õmg Depreciation to date 211,85,68 58,75,94 182,78,41 60,28,07

`moJ TOTAL (I d & II) 1421,84,82 1229,21,10

144 (` 000’s hQ>mH$a Omitted) `Wm As on `Wm As on {ddaU PARTICULARS 31.03.2019 31.03.2018 ` ` AZwgyMr 11 - AÝ` AmpñV`m± SCHEDULE 11 – OTHER ASSETS I. A§Va H$m`m©b` g_m`moOZ ({Zdb) Inter-Ofﬁ ce Adjustments (Net) – 652.19,67 II. àmoX²^yV ã`mO Interest accrued 1706,05,05 1409,34,80 III. A{J«_/Q>rS>rEg _| àXÎm H$a Tax paid in advance/TDS 290,87,82 271,55,60 IV. {ddmX Ho$ AYrZ nXÎm H$a Taxes paid under dispute 2927,45,72 1837,01,65 V. AmñW{JV H$a AmpñV`m± ({Zdb) Deferred Tax Assets (net) 5446,25,82 3706,16,38 VI. _¡Q> H«o${S>Q>-nmÌVm MAT Credit Entitlement 651,38,99 658,97,22 VII. H$m°ÝdoQ>/BZnwQ> H$a O_m Convat/Input Tax Credit 39,78,84 33,99,94 VIII. boIZ-gm_J«r VWm ñQ>m°ån Stationery and stamps 4,78,60 4,82,91 IX. XmoZm| Ho$ emoYZ _| àmßV J¡a-~¢H$ H$s AmpñV`m± Non-banking assets acquired in satisfaction of claims 9,44 9,44 X. AmaAmB©S>rE\$/{gS>~r/AmaEMS>rE\$ O_mAm| Ho$ VhV Deposit with NABARD under RIDF/SIDBI/RHDF 5918,77,72 7555,02,84 XI. AÝ` Others 1371,08,39 2996,61,67 `moJ TOTAL 18356,56,40 19125,82,12 AZwgyMr 12 – AmH$pñ_H$ Xo`VmE± SCHEDULE 12 – CONTINGENT LIABILITIES I. H$O© Ho$ ê$n _| ñdrH$ma Zht {H$E JE ~¢H$ Ho$ {déÕ Xmdo Claims against the bank not acknowledged as debts 3232,79,24 2310,44,77 II. S>rB©EE\$ {Z{Y Depositors Education and Awareness Fund 116,56,16 99,66,99 III. H$. ~H$m`m dm`Xm {dXoer _wÐm g§{dXmAm| hoVw Xo`Vm A. Liability on account of outstanding forward exchange contracts 36004,23,88 58493,84,44 I. ì`wËnÝZr B. Derivatives 924,00,00 72,60,00 IV. g§KQ>H$m| H$s Amoa go Xr JB© Jma§{Q>`m± Guarantees given on behalf of constituents H$/a) ^maV _| in India 11583,83,58 14530,82,67 I/b) ^maV Ho$ ~mha outside India 223,25,88 1561,83,49 V. ñdrH¥${V`m±, n¥ð>m§H$Z Ed§ AÝ` ~mÜ`VmE± Acceptances, endorsements and other obligations 4189,45,19 8933,60,32 VI. AÝ` _X| {OZHo$ {bE ~¢H$ AmH$pñ_H$ ê$n go CÎmaXm`r h¡ Other items for which the Bank is contingently liable 105,06,62 153,75,12 VII. [adg© aonmo Ho$ VhV IarXr JB© à{V^y{V`m§ Securities Purchased Under Reverse Repo 6246,42,42 1200,00,04 `moJ TOTAL 62625,62,97 87356,57,84 VIII. dgybr Ho$ {bE {~b Bills For Collection 13747,30,85 13893,39,89

ANNUAL REPORT 2018-19 145 (` 000’s hQ>mH$a Omitted) 31.03.2019 H$mo 31.03.2018 H$mo {ddaU PARTICULARS g_má df© g_má df© Year ended 31.03.2019 Year ended 31.03.2018 ` ` AZwgyMr 13 - A{O©V ã`mO SCHEDULE 13 – INTEREST EARNED I. A{J«_m|/{~bm| na ã`mO/~Q²>Q>m Interest/Discount on advances/bills 10992,59,45 11471,20,84 II. {Zdoem| na ã`mO Income on investments 4120,20,01 5164,38,96 III. ^maVr` [aµOd© ~¢H$ Ho$ nmg eof Am¡a AÝ` A§Va-~¢H$ {Z{Y`m| na ã`mO Interest on balances with Reserve Bank of India and 22,85,31 81,70,14 other Inter-bank Funds IV. AÝ` Others 486,98,26 911,03,33 `moJ TOTAL 15622,63,03 17628,33,27

AZwgyMr 14 - AÝ` Am` SCHEDULE 14 – OTHER INCOME I. H$_reZ, {d{Z_` Ed§ Xbmbr Commission, exchange and brokerage 306,98,33 356,85,45 II. {Zdoem| ({Zdb) H$s {~H«$s na bm^/hm{Z Profi t/Loss on sale of investments (net) -80,92,51 735,82,92 III. ^y{_, ^dZ VWm AÝ` AmpñV`m| H$s {~H«$s go bm^/hm{Z ({Zdb) Profi t/Loss on sale of land, building and other assets (net) -1,49,49 45,07 IV. {d{Z_` boZ-XoZm| na bm^/hm{Z ({Zdb) Profi t/Loss on exchange transactions (net) 99,18,07 161,06,59 V. ^maV _| AZwf§{J`m|/H§$n{Z`m| go bm^m§e BË`m{X go Am` Income earned by way of dividend, etc. from subsidiaries/companies in India 3,32,66 5,77,15 VI. {d{dY Am` Miscellaneous income 1544,99,81 1053,10,90 `moJ TOTAL 1872,06,87 2313,08,08

146 (` 000’s hQ>mH$a Omitted) 31.03.2019 H$mo 31.03.2018 H$mo {ddaU PARTICULARS g_má df© g_má df© Year ended 31.03.2019 Year ended 31.03.2018 ` ` AZwgyMr 15 - ì`` {H$`m J`m ã`mO SCHEDULE 15 – INTEREST EXPENDED I. O_mam{e`m| na ã`mO Interest on deposits 9500,24,42 11639,20,58 II. ^maVr` [aµOd© ~¢H$/A§Va-~¢H$ CYma am{e`m| na ã`mO 119,61,64 221,07,82 Interest on Reserve Bank of India/inter-bank borrowings III. AÝ` Others 494,30,54 929,82,46 `moJ TOTAL 10114,16,60 12790,10,86

AZwgyMr 16 - n[aMmbZ ì`` SCHEDULE 16 – OPERATING EXPENSES I. H$_©Mm[a`m| H$mo ^wJVmZ Ed§ CZHo$ {bE àmdYmZ Payment to and provisions for employees 1746,94,71 1592,82,24 II. {H$am`m, H$a VWm {~Obr Rent, taxes and lighting 318,31,25 308,50,38 III. _wÐU Ed§ boIZ-gm_J«r Printing and stationery 21,99,57 22,37,98 IV. {dkmnZ Ed§ àMma Advertisement and publicity 3,08,58 3,10,37 V. ~¢H$ H$s g§n{Îm na _yë`õmg Depreciation on bank’s property 176,50,70 175,34,03 VI. {ZXoeH$m| Ho$ ewëH$, ^Îmo Am¡a ì`` Directors’ fees, allowances and expenses 31,82 74,70 VII. boIm narjH$m| Ho$ ewëH$ VWm ì`` (emIm Ho$ boIm narjH$ ^r em{_b) Auditors’ fees and expenses (including branch auditors) 25,03,44 25,85,23 VIII. {d{Y à^ma Law Charges 6,02,44 3,09,94 IX. S>mH$, Q>obr\$moZ BË`m{X Postages and Telephones etc. 77,52,52 64,91,21 X. _aå_V Ed§ AZwajU Repairs and Maintenance 115,77,36 113,39,93 XI. ~r_m Insurance 235,62,59 258,73,28 XII. AÝ` ì`` Other Expenditure 758,91,82 631,99,61

`moJ TOTAL 3486,06,80 3200,88,85

ANNUAL REPORT 2018-19 147 AZwgyMr 17 Schedule 17 SIGNIFICANT ACCOUNTING _hËdnyU© boIm§H$Z Zr{V`m± Omo 31 _mM©, 2019 POLICIES FORMING PART OF THE STANDALONE ACCOUNTS FOR THE H$mo g_mßV df© Ho EH$b boImo§ H$m A§J h¢ YEAR ENDED MARCH 31, 2019

1. {dÎmr` {ddaUmo§ H$mo V¡`ma H$aZo H$m AmYma 1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS H$) {dÎmr` {ddaU boIm§H$Z Ho Cn{MV AmYma na Eo{Vhm{gH$ a) The fi nancial statements have been prepared and bmJV na§nam Ho VhV V¡`ma VWm àñVwV {H$E JE h¢, VWm AÝ`Wm presented under the historical cost convention on Cp„{IV Ho {gdm` VWm ^maVr` {aµOd© ~¢H (^m.{a.~¢.) Ûmam accrual basis of accounting unless otherwise stated and except for items recognized on cash basis, as per Omar {Xem{ZXo©emo§ Ho AZwgma ZH$Xr AmYma na {ZYm©{aV _Xmo§ Ho guidelines issued by the Reserve Bank of India [‘RBI’] Abmdm ò ^maVr` gZXr boImH$ma g§ñWmZ (AmB©grEAmB©) Ûmam and comply with the Accounting Standards (AS) issued Omar boIm _mZH$mo§ (EEg) VWm ~¢qH J {d{Z`_Z A{Y{Z`_, by the Institute of Chartered Accountants of India 1949 VWm H§$nZr A{Y{Z`_, 2013 Ho VhV {ZYm©{aV g§~§{YV (ICAI) and relevant requirements prescribed under the Banking Regulation Act, 1949 and Companies AnojmAmo§ VWm ^maV _o§ ~¢qH J CÚmoJ _o§ àM{bV dV©_mZ ar{V`mo§ Act, 2013, and current practices prevailing within the Ho AZwên h¢& banking industry in India. I) gm_mÝ` ê$n go ñdr©H¥$V boIm§H Z {gÕm§Vmo§ (J¡n) Ho AZwên b) The preparation of fi nancial statements in conformity {dÎmr` {ddaUmo§ H$mo V¡`ma H aZo _o§ à~§YZ dJ© go Ano{jV hmoVm with generally accepted accounting principles [GAAP] requires the Management to make estimates and h¡ {H {dÎmr` {ddaUmo§ Ho {XZm§H Ho `Wm {dÚ_mZ {anmoQ© H$s JB© assumptions considered in the reported amounts of AmpñV`mo§ d Xo`VmAmo§ (AmH pñ_H Xo`VmAmo§ g{hV) H$s am{e assets and liabilities (including contingent liabilities) as VWm {anmoQm©YrZ Ad{Y Ho Xm¡amZ {anmoQ© H$s JB© Am` d ì``mo§ na of the date of the fi nancial statements and the reported àm¸ bZ d AZw_mZ H$ao§& à~§YZ dJ© H$m _mZZm h¡ {H {dÎmr` income and expenses during the reporting period. The Management believes that the estimates used in the {ddaU V¡`ma H$aZo _o§ à`wº àm¸ bZ {ddoH$nyU© Ed§ VH© g§JV h¢& preparation of the fi nancial statements are prudent and dmñV{dH$ Am§H$‹So BZ àm¸ bZmo§ go {^Þ hmo gH$Vo h¢& reasonable. Actuals could differ from these estimates.

2. amOñd {ZYm©aU 2. REVENUE RECOGNITION H ) Am` H$mo {ZåZ H$mo Nmo‹SH$a Cn{MV AmYma na {ZYm©{aV {H$`m J`m h¡… a] Income is recognized on an accrual basis except: i) ~¢H$ Jma§{Q`mo§ Ed§ gmI nÌ, Amny{V©H$Vm©/HŒo Vm G$U H$s i) Commission on Bank Guarantees and Letters of Credit; arrangement of suppliers/buyers Credit; ì`dñWm na H$_reZ, VWm bm°H$a {H$am`m Omo àmpßV AmYma and Locker rent which are recognized on receipt na {ZYm©{aV {H$`m J`m h¡& basis. ii) J¡a-{ZînmXH$ A{JŒ_mo§ VWm {Zdoemo§ na ã`mO Am` VWm Ho§ Ð ii) Interest income on Non-Performing advances and gaH$ma Ûmam Jma§QrH¥ V à{V^y{V`mo§ na ã`mO Am`, {OZHo investments, and securities guaranteed by Central {bE 90 {XZmo§ Ho A§Xa ã`mO dgyb Zht hmoVm h¡, àmpßV Government where interest is not realized within 90 days is recognized on receipt basis. AmYma na {ZYm©{aV H$s JB© h¡& iii) Interest on Income-tax refunds is accounted for iii) Am`-H$a dmn{g`mo§ na ã`mO H$m boIm§H$Z Am`H$a {d^mJ on receipt of Intimation order from the Income go gyMZm AmXoe àmßV hmoZo na {H$`m J`m h¡& Tax Department. ‘ I) n{an¹Vm VH$ Ym{aV' àdJ© _o§ {Zdoemo§ H$s {~HŒ s na àmßV bm^, b] Profi t or loss on sale of investments is recognized in the {Ogo bm^-hm{Z boIo _o§ {ZYm©{aV {H$`m J`m h¡ VWm VXZ§Va Profi t and Loss Account on settlement basis at the time ^m.{a.~¢. Ho {Xem{ZXo©emo§ Ho AZwgma Ama{jV ny±Or ImVo _o§ of sale except the realized profi t on sale of investments in {d{Z`mo{OV {H$`m J`m h¡, H$mo Nmo‹SH$a {Zdoe H$s {~HŒ s na bm^ ‘Held to Maturity’ category which is recognized in the profi t and loss account and subsequently appropriated `m hm{Z H$mo {~H«$s Ho g_` {ZnQmZ AmYma na bm^-hm{Z boIo _o§ to capital reserve account in accordance with the RBI {ZYm©{aV {H$`m J`m h¡& guidelines. J) ~¢H$ Ho àË`j A§eXmZ na àmßV Xbmbr/H$_reZ/àmoËgmhZ am{e c] Brokerage/commission/incentives received on Bank’s H$mo à{V^y{V`mo§ H$s bmJV go H$mQm J`m h¡, O~{H$ à{V^y{V`mo§ direct subscriptions are deducted from the cost of

148 Ho AO©Z hoVw àXÎm Xbmbr H$mo amOñd ì`` Ho ên _o§ _mZm securities, whereas brokerage paid in connection with acquisition of securities is treated as revenue J`m h¡& expenditure. K) à{V^y{V`mo§ Ho HŒ ` `m {dHŒ ` na I§{SV Ad{Y-ã`mO H$mo amOñd d] The broken period interest on sale or purchase of _X Ho ên _o§ _mZm J`m h¡& securities is treated as revenue item.

3. A{JŒ_ 3. ADVANCES a) Advances are classifi ed into standard, sub-standard, H$) A{JŒ_mo§ H$mo ^m.{a.~¢. Ûmam Omar {Xem{ZXoemo§ Ho AZwgma _mZH$, doubtful and loss assets in accordance with the Ad_mZH$, g§{X½Y VWm hm{Z AmpñV`mo§ _o§ dJr©©H¥$V {H$`m J`m h¡ guidelines issued by the RBI and are stated net of VWm J¡a-{ZînmXH$ A{JŒ_mo§ (EZnrE) Ho {bE {H$E JE {Z{X©îQ specifi c provisions made towards Non-Performing àmdYmZ Ho {Zdb Ho ên _o§ Xem©`m J`m h¡& Advances [‘NPAs’]. b) Credit Card dues are identifi ed as NPAs where minimum I) HŒo {SQ H$mS© ~H$m`mo§ H$mo Cg pñW{V _o§ EZnrE Ho ên _o§ {d{Z{X©îQ dues receivable as mentioned in the statement are in {H$`m J`m h¡ Ohm± Ý`yZV_ àmß` ~H$m`m am{e {ddaU _o§ Cp„{IV default for a continuous period of more than 90 days ^wJVmZ Xo` VmarI go bJmVma 90 {XZ go A{YH$ Ad{Y go MyH$ _o§ from the payment due date mentioned in statement. ahr h¡& J¡a-{ZînmXH$ H$mS© ImVmo§ go Am` {dÎmr` {ddaU _o§ Zht Income from non-performing card accounts is not recognized in fi nancial statements. br JB© h¡& c) Provisions for sub-standard, doubtful and loss advances J) ^maVr` {aµOd© ~¢H$ (Ama~rAmB©) Ûmam {ZYm©{aV {ddoH$nyU© _mZX§Smo§ are made on the basis of asset classifi cation and Ho A§VJ©V AmpñV dJr©H$aU Am¡a àmdYmZrH$aU Anojm Ho AmYma provisioning requirements under the prudential norms na Ad_mZH$, g§{X½Y VWm hm{Z-A{JŒ_mo§ Ho {bE àmdYmZ {H$`m laid down by the RBI. J`m h¡& d) Partial recoveries in non-preforming advances will be appropriated account-wise (not party-wise) in the K) J¡a-{ZînmXH$ A{JŒ_mo§ _o§ dgybr {ZåZ{b{IV HŒ _ _o§ ImVm dma following order of priority: (nmQr© dma Zht) g_m`mo{OV H$s OmòJr - i. Expenditure/out of pocket expenses incurred for i) dgybr hoVw {H$E JE ì``/AÝ` ì`` recovery, ii) ì`mO g§~§Yr A{Z`{_VVmò§/ A{O©V ã`mO Ed§ ii. Interest irregularities/accrued interest, and iii) _ybYZ g§~§Yr A{Z`{_VVm AWm©V ImVo _o§ eof _ybYZ iii. Principal irregularities i.e. Principal outstanding in the account. L) `{X {H$gr _m_bo _o§ J¡a-{ZînmXH$ G$U _o§ g_Âmm¡Vm {ZnQmZ e) In case of non-performing advances involving

Ûmam {H$`m J`m hmo Vmo dgybr H$mo nhbo _yb _o§ g_m`mo{OV compromise settlements, the recoveries may be {H$`m OmEJm& adjusted ﬁ rst towards principal. dgybr H$m g_m`moOZ gj_ àm{YH$mar/EZgrEbQr/ The adjustment of the recoveries as per sanction Ý`m`V§Ì Ho _§Oyar©H¥$V {Z`_mo§ Ho AZwgma H$s OmEJr& terms of competent Authority /NCLT/ Judiciary. `{X {H$gr _m_bo _o§ J¡a-{ZînmXH$ G$U _o§ g_Âmm¡Vm {ZnQmZ In case of non-performing advances involving Ûmam {H$`m J`m hmo Vmo dgybr H$mo nhbo _yb _o§ g_m`mo{OV compromise settlements, the adjustment of recoveries may be adjusted ﬁ rst towards principal {H$`m OmEJm& CgHo ~mX `{X dgybr _yb am{e go A{YH$ then to interest if recovery is over and above the hmoVr h¡ Vmo ã`mO _o§ g_m`mo{OV {H$`m OmEJm& Principal amount. M) ^m.{a.~¢. {Xem{ZXo©emo§ Ho AZwgma {ZYm©{aV _mZH$ AmpñV`mo§ hoVw f) General provision for Standard Assets made in gm_mÝ` àmdYmZ H$mo ‘AÝ` Xo`VmE§ d àmdYmZ-AÝ`’ Ho VhV accordance with RBI Guidelines is included under em{_b {H$`m J`m h¡& “Other Liabilities & Provisions-others”. g) Restructured Accounts: For restructured advances, N) nwZ… g§a{MV ImVo… nwZ…g§a{MV A{JŒ_mo§ Ho {bE G$U Ho C{MV provisions for erosion in fair value of loan are made _yë` _o§ õmg Ho$ {bE àmdYmZ AÝ`Wm Ano{jV àmdYmZ Ho$ in accordance with the guidelines issued by the RBI, Abmdm ^maVr` {a‹Od© ~¢H$ Ûmam Omar {Xem{ZXoemo§ Ho AZwgma in addition to the provisions otherwise required. The provision for erosion in fair value of advance is not {H$E JE h¢& A{JŒ_ Ho C{MV _yë` _o§ õmg hoVw àmdYmZ A{JŒ_mo§ go reduced from advances and is included in the Balance KQm`m Zht J`m h¡ VWm ‘AÝ` Xo`VmE§ d àmdYmZ-AÝ`’ erf© Ho$ Sheet under the head “Other Liabilities & Provisions- VhV VwbZ-nÌ _o§ em{_b {H$`m J`m h¡& Others”.

ANNUAL REPORT 2018-19 149 4. {Zdoe 4. INVESTMENTS 4.1 dJr©H$aU Ed§ loUrH$aU 4.1 Categorization & Classiﬁ cation In accordance with the RBI guidelines, investments at the ^maVr` {aµOd© ~¢H$ Ûmam Omar {Xem{ZXoemo§ Ho$ AZwgma {Zdoemo§ Ho$ time of acquisition are categorized as: A{YJŒhU Ho g_` {ZåZ{b{IV lo{U`mo§ _o§ dJr©©H¥$V {H$`m J`m h¡… . Held to Maturity [HTM], • n{an¹Vm VH$ Ym{aV (EMQrE_), . Available for Sale [AFS] and • {~HŒ s Ho {bE CnbãY (EE\ Eg) VWm . Held for Trading [HFT]. • Q—oqSJ Ho {bE Ym{aV (EME\ Qr)& The Bank shifts investments from AFS/HFT category ~¢H$, ~hr _yë` `m ~mµOma _yë`, BZ _o§ go Ý`yZV_ _yë` na {Zdoemo§ H$mo to HTM category at the lower of book value or market EE\ Eg/EME\ Qr àdJ© go EMQrE_ àdJ© _o§ A§V{aV H$aVm h¡& AWm©V², value. In other words, in cases where the market value is Ohm± A§VaU Ho g_` ~mµOma _yë` ~hr _yë` go A{YH$ h¡, _yë`d¥{Õ higher than the book value at the time of transfer, the appreciation should be ignored and the security should be Ho AZXoIm {H$`m OmZm Mm{hE VWm à{V^y{V H$mo ~hr _yë` na A§V{aV transferred at the book value. In cases where the market {H$`m OmZm Mm{hE& Eogo _m_bo Ohm± ~mµOma _yë` ~hr _yë` go H$_ h¡, value is less than the book value, the provision against Bg à{V^y{V (A§VaU H$mo {XZm§H H$mo {H$E JE _yë`m§H$Z Ho AmYma depreciation held against this security (including the na Ano{jV A{V{aº àmdYmZ, `{X H$moB© h¡, g{hV) Ho {déÕ Ym{aV additional provision, if any, required based on valuation _yë`õmg na àmdYmZ H$mo ~hr _yë` H$mo ~mµOma _yë` VH$ H$_ H$aZo done on the date of transfer) should be adjusted to reduce the book value to the market value and the security should

Ho {bE g_m`mo{OV {H$`m OmZm Mm{hE VWm à{V^y{V ~mµOma _yë` na be transferred at the market value. A§V{aV {H$`m Om gH$Vm h¡& If the security was originally placed under the HTM `{X à{V^y{V _ybV… ~Åo na EMQrE_ àdJ© Ho VhV aIr OmVr h¡, Cgo category at a discount, it may be transferred to AFS/ AO©Z _yë`/~hr _yë` na EE\ Eg/EME\ Qr àdJ© _o§ A§V{aV {H$`m HFT category at the acquisition price/book value. (It OmE& (`h ZmoQ {H$`m OmE {H$ {dÚ_mZ AZwXoemo§ Ho AZwgma EMQrE_ may be noted that as per existing instructions banks àdJ© Ho VhV Ym{aV à{V^y{V`mo§ na ~Åm Cn{MV H$aZo H$s AZw_{V are not allowed to accrue the discount on the securities held under HTM category and, therefore, such securities Zht h¡ VWm, AV…, Eogr à{V^y{V`mo§ H$mo n{an¹Vm VH$ AO©Z bmJV na would continue to be held at the acquisition cost till YmaU Omar aIm OmE)& A§VaU Ho nümV², BZ à{V^y{V`mo§ H$m VËH$mb maturity). After transfer, these securities should be nwZ_y©ë`m§H$Z {H$`m OmE VWm n{aUm_r _yë`õmg, `{X H$moB© h¡, hoVw immediately re-valued and resultant depreciation, if any, àmdYmZ {H$`m Om gH$Vm h¡& may be provided. `{X à{V^y{V _ybV… àr{_`_ na EMQrE_ àdJ© Ho VhV aIr OmVr h¡, If the security was originally placed in the HTM category Cgo n{aemoYH$ _yë` na EE\ Eg/EME\ Qr àdJ© _o§ A§V{aV {H$`m OmE& at a premium, it may be transferred to the AFS / HFT category at the amortised cost. After transfer, these A§VaU Ho nümV², BZ à{V^y{V`mo§ H$m VËH$mb nwZ_y©ë`m§H$Z {H$`m OmE securities should be immediately re-valued and resultant VWm n{aUm_r _yë`õmg, `{X H$moB© h¡, hoVw àmdYmZ {H$`m Om gH$Vm h¡& depreciation, if any, may be provided. EE\ Eg go EME\ Qr àdJ© _o§ `m {dbmo_V… à{V^y{V`mo§ H$mo A§V{aV In the case of transfer of securities from AFS to HFT H$aZo na, A§VaU H$s VmarI H$mo à{V^y{V`mo§ H$m nwZ_y©ë`Z H$aZo H$s category or vice-versa, the securities need not be re- Amdí`H$Vm Zht h¡ VWm g§{MV _yë`õmg Ho {bE `{X H$moB© àmdYmZ valued on the date of transfer and the provisions for the Ym{aV {H$`m h¡ Vmo Cgo EME\ Qr à{V^y{V`mo§ Ho {déÕ _yë`õmg hoVw accumulated depreciation, if any, held may be transferred to the provisions for depreciation against the HFT àmdYmZ _o§ `m {dbmo_V… A§V{aV {H$`m Om gH$Vm h¡& securities and vice-versa. hmbm§{H$, VwbZ-nÌ _o§ àH$QZ hoVw {Zdoemo§ H$mo 6 dJmoª Ho AÝVJ©V dJr©©H¥$V However, for disclosure in the Balance Sheet, investments {H$`m J`m h¡ - gaH$mar à{V^y{V`m±, amÁ` gaH$mar {deof à{V^y{V`m±, are classifi ed under six categories – Government AÝ` AZw_mo{XV à{V^y{V`m±, eoà, {S~o§Ma VWm ~m±S, AZwf§{J`mo§/ Securities, State Government Securities, Other Approved jo.JŒm.~¢./g§`wº CÚ_mo§ VWm AÝ` (å`yMwAb \§ S H$s `y{ZQmo§, Securities, Shares, Debentures and Bonds, Investments in Subsidiaries/RRB/ Joint Ventures and Others [units dm{UpÁ`H$ nÌmo§, O_m à_mU nÌ, à{V^y{V agrX VWm do§Ma ny§Or of Mutual Funds, Commercial Papers, Certifi cate of {Z{Y )& Deposits and Venture Capital Funds]. ‘ ’ n{an¹Vm VH$ Ym{aV loUr Ho VhV dJr©©H¥$V {Zdoemo§ _o§ {ZåZ{b{IV Investments classifi ed under ‘Held to Maturity’ include em{_b h¢… the following: H$) _m§J VWm _r`mXr Xo`VmAmo§ Ho à{VeV Ho ên _o§ ^m.{a.~¢. Ûmam a) Investments in SLR securities as percentage of g_`-g_` na A{Ygy{MV AZwgma EgEbAma à{V^y{V`mo§ _o§ Demand and Time liabilities or as notifi ed by RBI {Zdoe& from time to time.

150 I) nwZnyªOrH$aU Amdí`H$VmAmo§ hoVw ^maV gaH$ma go àmßV b) Recapitalization bonds received from the Government nwZnyªOrH$aU ~m§S& of India towards recapitalization requirements. J) AZwf§{J`mo§ Am¡a g§`wº CÚ_mo§ Ho eoàmo§ _o§ {Zdoe& c) Investments in share of subsidiaries and joint ventures. K) CÚ_ ny±Or {Z{Y`mo§ _o§ {Zdoe, 23 AJñV, 2006 Ho ~mX àËòH$ d) Investments in Venture Capital Funds, for an initial {JamdQ go VrZ dfmoª H$s Ama§{^H$ Ad{Y Ho {bE {H$E JE h¢& period of 3 years of each draw down, after 23rd August 2006. L) ~w{Z`mXr g§aMZmJV J{V{d{Y`mo§ _o§ bJo H§n{Z`mo§ Ûmam Omar XrKm©d{Y ~m°ÊSmo§ _o§ {Zdoe& e) Investments in long term bonds issued by companies engaged in infrastructure activities. Q—oqSJ Ho CÔoí` go àmW{_H$ ê n go A{YJŒhrV {Zdoemo§ H$mo EME\ Qr à{V^y{V`mo§ Ho ên _o§ dJr©©H¥$V {H$`m J`m h¡& ^maVr` {a‹Od© ~¢H$ Ho Investments acquired primarily with an intention for trading are classifi ed as HFT securities. As per RBI {Xem{ZXo©emo§ Ho AZwgma EME\ Qr loUr _o§ à{V^y{V`m± 90 {XZ go guidelines, securities in HFT category are not held

A{YH Zht Ym{aV H$s JB© h¢ VWm AndmXmË_H$ n{apñW{V`mo§ O¡go beyond 90 days and are transferred to AFS category {~HŒ r H$aZo _o§ Ag_W© `m AË`§V ApñWaVm `m ~mµOma Ho {XemhrZ under exceptional circumstances like not able to sell or hmoZo na, {ZXoeH _§Sb/AmëH$mo/{Zdoe g{_{V Ho AZw_moXZ Ho extreme volatility or market becoming unidirectional, gmW CÝho§ EE\ Eg loUr _o§ A§V{aV {H E OmVo h¢& with the approval of the Board/ALCO/Investment AÝ` g^r {Zdoemo§ H$mo EE\ Eg Ho VhV dJr©©H¥$V {H$`m J`m h¡& Committee. All other investments are classifi ed under AFS. 4.2 _yë`m§H$Z VWm n{aUm_r g_m`moOZ… H ) n{an¹Vm VH Ym{aV… ‘n{an¹Vm VH$ Ym{aV’ loUr Ho VhV 4.3 Valuation and consequential adjustments : dJr©©H¥$V {Zdoe ^m{aV Am¡gV AO©Z bmJV na _yë`m§{H$V {H$E JE a] Held to Maturity: Investments classifi ed under h¢& A{YJŒhU na àr{_`_ `{X H$moB© h¡ Vmo n{an¹Vm H$s eof Ad{Y ‘Held-to-Maturity’ are carried at weighted average _o§ grYr aoIm Ho AmYma na n{aemoYZ {H$`m J`m h¡& AZwf§{J`mo§/ acquisition cost. Premium on acquisition, if any, is g§`wº CÚ_mo§ _o§ {Zdoe Ho _m_bo _o§ AñWmB© H$mo Nmo‹SH$a AÝ` Eogo amortized on a straight-line basis over the remaining maturity period. In case of investments in subsidiaries/ {Zdoe Ho _yë` _o§ H$_r H$m {ZYm©aU {H$`m J`m h¡ Am¡a CgHo {bE joint ventures any diminution, other than temporary, àmdYmZ {H$`m J`m h¡& do§Ma ny§Or {Z{Y _o§ {Zdoemo§ H$mo bmJV na in the value of such investment is recognized and _yë`m§{H$V {H$`m J`m h¡& provided for. Investments in Venture Capital Fund I) {~H«$s Ho {bE CnbãY VWm Q—oqSJ Ho {bE Ym{aV… are valued at Cost. (i) BZ àdJmoª (‘Q—oqSJ Ho {bE Ym{aV’ VWm ‘{~HŒ r Ho {bE b] Available for Sale and Held for Trading: CnbãY’ loUr Ho VhV dJr©©H¥$V) _o§ {Zdoe H$mo ^m.{a.~¢. (i) Investments in these categories (classifi ed under Ho {Xem{ZXo©emo§ Ho AZwgma EME\ Qr VWm EE\ Eg hoVw the category ‘Held for Trading’ and ‘Available for HŒ _e… _m{gH$ VWm {V_mhr A§Vamb _o§ ~mµOma/AZw_m{ZV Sale’) are marked to market / estimated realizable dgybr `mo½` _yë` na A§{H$V {H$`m J`m h¡& O~{H$ D$na value as per the RBI guidelines at monthly and 4.1 _o§ Cp„{IV àËòH$ loUr Ho A§VJ©V n{aUm_r {Zdb quarterly intervals for HFT and AFS respectively. _yë`õmg `{X H$moB© h¡, H$mo bm^ Ed§ hm{Z boIo _o§ ‘àmdYmZ While the resultant net depreciation, if any, Ed§ AmH$pñ_H$VmAmo§’ Ho ên _o§ {ZYm©{aV {H$`m J`m h¡ VWm within each category referred to in 4.1 above, is _yë`õmg hoVw nhbo {H$E JE àmdYmZ H$s hX VH H$mo recognized in profi t & loss account as “Provisions Nmo‹SH$a {Zdb A{Y_yë`Z H$mo Nmo‹S {X`m J`m h¡& and Contingencies”, the net appreciation is nwZ_y©ë`m§H$Z Ho nümV² AbJ-AbJ à{V^y{V`mo§ Ho ~hr ignored except to the extent of depreciation previously provided. The book value of the _yë` _o§ n{adV©Z Zht hwAm h¡& individual scrip is not changed after revaluation. (ii) _yë`õmg Ho A{V{aº àmdYmZ Ho à{VboIZ Ho g§~§Y (ii) In the case of write back of excess provision of _o§, Cgo ‘àmdYmZ Am¡a AmH$pñ_H$VmE±’ _o§ O_m {H `m J`m depreciation the same is credited to “Provisions h¡ Am¡a g_Vwë` am{e (H amo§ H$m {Zdb Am¡a gm§{d{YH and Contingencies” and a like amount (net Ama{jV {Z{Y _o§ A§VaU) H$mo AZwgyMr 2 - “Ama{jV of taxes and transfer to Statutory Reserve) is {Z{Y Ed§ A{Yeof” Ho VhV {Zdoe Ama{jV {Z{Y ImVo _o§ appropriated to Investment Reserve Account {d{Z`mo{OV {H `m J`m h¡& under Schedule 2 – “Reserves & Surplus”.

ANNUAL REPORT 2018-19 151 (iii) Cnamoº (i) Ho CÔoí` hoVw, ~mOma H$s_V/AZw_m{ZV àmß` _yë` {ZåZdV² {ZYm©{aV {H `m OmVm h¡… For the purpose of (i) above, the market price / estimated realizable value is determined as under: Sr. No. Type of Securities Valuation of Securties H«$. g§. à{V^y{V Ho$ àH$ma à{V^y{V H$m _yë`m§H$Z 1. Ho§ Ð gaH$ma H$s à{V^y{V`m± (i) CÕ¥V… E\ AmB©E_E_SrE Ûmam {XE H$moQoeZ Ho AZwgma ~mµOma _yë` na Central Government of India securities Quoted: At market price as per the quotation put out by FIMMDA. (ii) AZwÕ¥V… E\ AmB©E_E_SrE Ûmam Xr JB© H$s_Vmo§/dmB©QrE_ Xamo§ Ho AmYma na Unquoted: on the basis of the prices /YTM rates put by the FIMMDA 2. amÁ` gaH$ma H$s à{V^y{V`m§, amÁ` gaH$ma H$s {deof à{V^y{V`m±, Ho§ Ð/amÁ` (i) amÁ` gaH$ma H$s à{V^y{V`mo§ Ho _m_bo _o§ E\ AmB©E_E_SrE Ûmam àH$m{eV H$s_Vmo§ na gaH$ma Ûmam Jma§Qr©H¥$V à{V^y{V`m± (AÝ` ñdr©H¥$V à{V^y{V`m±) At prices published by FIMMDA in respect of State Government State Government Securities, State Govt. Special Securities, Securities. Securities guaranteed by Central/State Government (other (ii) AÝ` AZw_mo{XV à{V^y{V`mo§ Ho _m_bo _o§ E\ AmB©E_E_SrE Ûmam {Z{X©îQ à{V\ b dHŒ approved securities) na Cn`wº A{V{aº H$s_V bmJV A§Va na At appropriate spread upon the yield curve put out by the FIMMDA in respect of other approved securities 3. Q—oOar {~b (nrSr H$mamo~ma Ho H$maU aIo Q—oµOar {~bmo§ g{hV)/O_m aImd bmJV na à_mUnÌ/dm{UpÁ`H nÌ At carrying cost. Treasury Bills (including Treasury Bills held on account of PD business)/Certifi cates of deposits/Commercial paper 4. B©p¹Qr eoà (i) CÕ¥V… ~mOma _yë` na Quoted : At market price Equity Shares (ii) AZwÕ¥V… H§$nZr Ho AÚVZ VwbZ-nÌ (EH df© go A{YH nwamZm Z hmo) Ho AZwgma {Z{üV {díbo{fV _yë` na AÝ`Wm ` 1/- à{V H§$nZr& Unquoted: At break up value as ascertained from the company’s latest Balance Sheet [not more than one year old], otherwise at `1/- per company. 5. A{Y_mZ eoà, {S~o§Ma Ed§ ~m§S (i) CÕ¥V… ~mOma _yë` na Quoted: At Market Price Preference Share, Debentures and Bonds (ii) AZwÕ¥V… C{MV n{an¹Vm à{V\ b na Unquoted: On appropriate Yield to Maturity 6. å`yMwAb \§ S (i) CÕ¥V…. ~mOma _yë` na Quoted: At market price Mutual Fund (ii) AZwÕ¥V… nwZHŒ© ` _yë` `m àËòH `moOZm _o§ \§ S Ûmam Kmo{fV {Zdb AmpñV _yë` na (Ohm± nwZHŒ© ` _yë` CnbãY Zht h¡) Unquoted : At repurchase price or Net Asset Value [where repurchase price is not available] declared by the fund in each of the schemes 7. CÚ_ ny§Or {Z{Y (i) CÕ¥V… ~mOma _yë` na Quoted: At market value Venture Capital Funds (ii) AZwÕ¥V… BH$mB`mo§ Ho ên _o§ {Zdoemo§ Ho _m_bo _o§, AnZo {dÎmr` {ddaUmo§ _o§ drgrE\ Ûmam Xem©E JE EZEdr na _yë`m§H Z {H `m OmE& EZEdr na AmYm{aV BH$mB`mo§ na _yë`õmg, `{X H$moB© hmo, Ho {bE {Zdoemo§ Ho EE\ Eg àdJ© go EMQrE_ àdJ© _o§ A§VaU Ho g_` VWm drgrE\ go àmßV {dÎmr` {ddaUmo§ Ho AmYma na {V_mhr `m ~ma§~ma A§Vambmo§ na {H E OmZo dmbo AZwdVr© _yë`m§H Zmo§ na ^r àmdYmZ {H `m OmZm Mm{hE& BH$mB`mo§ H$m H _ go H _ df© _o§ EH ~ma boImnar{jV n{aUm_mo§ Ho AmYma na _yë`m§H Z {H `m OmE& VWm{n, `{X EZEdr Am±H So Xem©Zo dmbo boIm nar{jV VwbZ nÌ/{dÎmr` {ddaU _yë`m§H Z H$s VmarI Ho 18 _mh go A{YH Ho {bE CnbãY Zht h¢, Vmo {Zdoemo§ H$m _yë`m§H Z 1 én`m à{V drgrE\ na {H `m OmE& Unquoted: In the case of investments in the form of units, the valuation will be done at the NAV shown by the VCF in its fi nancial statements. Depreciation, if any, on the units based on NAV has to be provided at the time of shifting the investments to AFS category from HTM category as also on subsequent valuations which should be done at quarterly or more frequent intervals based on the fi nancial statements received from the VCF. At least once in a year, the units should be valued based on the audited results. However, if the audited balance sheet/fi nancial statements showing NAV fi gures are not available continuously for more than 18 months as on the date of valuation, the investments are to be valued at `1per VCF.

152 4.3 J¡a-{ZînmXH {Zdoe 4.3 Non-performing Investments H ) Ho§ Ð gaH$ma Ûmam Jma§Qr©H¥$V à{V^y{V`mo§ H$mo Nmo‹SH a g^r à{V^y{V`mo§ a] All such securities where repayment of principal or H$mo, Ohm± _ybYZ `m ã`mO H$s MwH$mo¡Vr Xo` VmarI go 90 {XZmo§ interest not serviced within 90 days from the due date are classifi ed as Non-Performing Investments, except Ho A§Xa Zht H$s JB© h¡, J¡a-{ZînmXH {Zdoemo§ Ho ên _o§ dJr©©H¥$V securities guaranteed by the Central Government which {H `m J`m h¡& Ho§ Ð gaH$ma Ûmam Jma§Qr©H¥$V à{V^y{V`mo§ H$moo _ybYZ/ are treated as performing investments notwithstanding ã`mO AXm`Jr ~H$m`m ahZo Ho ~mdOyX {ZînmXH {Zdoemo§ Ho ên _o§ arrears of principal/interest payments. In respect of _mZm J`m h¡& J¡a-{ZînmXH Ho ên _o§ dJr©©H¥$V {Zdoemo§ Ho g§~§Y _o§ investments classifi ed as Non-performing, appropriate BZ {Zdoemo§ Ho _yë` _o§ _yë`hmg hoVw Cn`wº àmdYmZ {H E JE provisions are made for the depreciation in the value h¢& BZ à{V^y{V`mo§ Ho g§~§Y _o§ Ano{jV _yë`õmg AÝ` {ZînmXH of these investments. The depreciation requirement à{V^y{V`mo§ Ho g§~§Y _o§ _yë`d¥{Õ Ho gmW g_§OZ Zht {H `m J`m in respect of these securities is not set off against appreciation in respect of other performing securities. h¡& I) Ohm± ~¢H H$m {H gr nmQr©/JŒwn _o§ G$U Ed§ {Zdoe XmoZmo§ _o§ ~¢H em{_b b] Where the Bank has both credit and investment h¡ VWm G$U H$moo J¡a-{ZînmXH AmpñV Ho ên _o§ dJr©H¥$V H aZo exposures to any borrower/group and in the event the H$s pñW{V _o§ BZ_o§ {Zdoe H$moo ^r J¡a-{ZînmXH Ho ên _o§ dJr©H¥$V credit exposure is classifi ed as Non-Performing asset, {H `m OmVm h¡& the investment exposure to them is also classifi ed as Non-Performing. ñnîQrH aU Clarifi cations:

`{X {ZJ©_H Vm© Ûmam br hwB© H$mooB© ^r G$U gw{dYm ~¢H H$s ~hr _o§ J¡a- If any credit facility availed by the issuer is NPA in the

{ZînmXH h¡ Vmo Cgr {ZJ©_H Vm© Ûmam Omar {H gr ^r A{Y_mZr eoà books of the bank, investment in any of the securities, g{hV {H gr ^r à{V^y{V _o§ CgH$m {Zdoe EZnrAmB© _mZm OmEJm& hmbm§{H including preference shares issued by the same issuer would `{X Ho db A{Y_mZr eoà EZnrAmB© Ho ên _o§ dJr©©H¥$V {H E OmVo h¢ Vmo also be treated as NPI and vice versa. However, if only the Cgr {ZJ©_H Vm© Ûmam {H gr AÝ` {ZînmXH à{V^y{V`mo§ _o§ {H E JE {Zdoe preference shares are classifi ed as NPI, the investment in H$moo EZnrAmB© Ho ên _o§ dJr©©H¥$V Zht {H `m OmEJm Ed§ CYmaH Vm© H$moo Xr any of the other performing securities issued by the same J`r {H gr ^r {ZînmXH G$U gw{dYm H$moo EZnrE Zht _mZm OmEJm& issuer may not be classifi ed as NPI and any performing credit facilities granted to that borrower need not be 4.4 aonmo boZXoZmo§ Ho {bE boIm§H Z treated as NPA. ~mµOma aonmo Ho VhV aonmo/{adg© aonmo boZXoZmo§ Ho {bE n{anÌ g§X^©: g§»`m RBI/2018-19/24 FMRD.DIRD.01/14.03.038/ 4.4 ACCOUNTING FOR REPO TRANSACTIONS 2018-19, {XZm§{HV 24.07.2018 Ho O{aE ^m.{a.~¢. Ûmam {ZYm©{aV The Bank follows the accounting norms prescribed by boIm§H Z _mZX§S VWm Mb{Z{Y g_m`moOZ gw{dYm("EbEE\') the RBI vide circular Ref. No. RBI/2018-19/24 FMRD. DIRD.01/14.03.038/2018-19 dated 24.07.2018 in VWm gr_m§V ñWmB© gw{dYm (E_EgE\ ) Ho VhV aonmo/{adg© aonmo respect of repo/reverse repo transactions under market repo /2015-2016/403 boZXoZmo§ Ho {bE g§X^© ^m.{a.~¢. E\ E_AmaSr. and the accounting guidelines issued vide Ref. RBI/2015- SrAmB©AmaSr.10/14.03.002/2015-16 {XZm§{H V 19.05.2016 2016/403 FMRD.DIRD.10/14.03.002/2015-16 dated Ho O{aE Omar boIm§H$Z {Xem{ZXoemo§ H$m AZwnmbZ ~¢H$ Ûmam {H$`m 19.05.2016 in respect of repo/reverse repo transactions OmVm h¡& under Liquidity Adjustment Facility (LAF) and the Marginal Standing Facility (MSF). aonmo/{adg© aonmo boZXoZmo§ Ho {bE ~¢H$moo§ Ûmam Ama~rAmB© Ho EbEEµ\ Ed§ _m{O©Zb ñQ¢qSJ \¡ {g{bQr (E_EgEµ\) Ho VhV nmbZ H$s The accounting norms to be followed by Bank for repo/ OmZo dmbr boIm§H$Z _mZH$, _mHo© Q aonmo boZXoZmo§ Ho {bE {ZYm©{aV reverse repo transactions under LAF and the Marginal Standing Facility (MSF) of RBI shall be same as prescribed

boIm§H$Z _mZH$ Ho AZwên hmoJm& BgHo A{V[aº$ _mHo© Q aonmo boZXoZmo§ for market repo transactions. Further, in order to go Ama~rAmB© Ho aonmo/{adg© aonmo boZXoZmo§ H$moo {^Þ H$aZo Ho {bE, distinguish repo/reverse repo transactions with RBI from _mHo© Q aonmo§ boZ-XoZmo§ hoVw Mbm`o Om aho ImVmo§ H$s Vah EH$ g_mZmÝVa market repo transactions, a parallel set of accounts similar ImVmo§ Ho goQ H$moo, {OgHo AmJo ""Ama~rAmB©' bJm hmo, H$moo Mbm`m Om to those maintained for market repo transactions but gH$Vm h¡& preﬁ xed with ‘RBI’ may be maintained.

ANNUAL REPORT 2018-19 153 EbEEµ\ /E_EgEµ\ boZXoZ _o§ ho`aH$Q H$s JUZm g_nm{œ©H$ à{V^y{V`mo§ Reckon the market value of collateral securities for Ho A§{H$V _yë` Ho ~OmE ~mµOma _yë` na hr H$ao§& calculating the haircut instead of face value while initiating the LAF/MSF transactions; Ama~rAmB© Ho gmW {adg© aonmo Ho VhV A{O©V à{V^y{V`mo§ H$mo Bestow SLR status to the securities acquired by banks

EgEbAma H$m XOm© àXmZ H$ao§ Ed§ under reverse repo with RBI; and Ama~rAmB© Ho n{anÌ g§»`m Eµ\ E_AmaSr & SrAmB©AmaSr.5/ Allow re-repo of securities received under LAF 14.03.002/2014-15 {XZm§{H$V 05 \ adar 2015 _o§ C„o{IV {Z`_mo§ reverse repo with market participants subject to Ho AZwgma ~mOma à{V^m{J`mo§ Ho gmW EbEEµ\ {adg© aonmo Ho VhV the conditions prescribed in RBI circular FMRD. A{O©V à{V^y{V`mo§ Ho nwZa-aonmo H$s AZw_{V Xo§& DIRD.5/14.03.002/2014-15 dated February 5, 2015. 4.5 {Zdoe boZXoZmo§ hoVw boIm§H$Z 4.5 Accounting For Investment Transactions i) ~¢H$ AnZo {Zdoemo§ Ho boIm§H$Z hoVw {ZnQmZ VmarI nÕ{V H$m i) The Bank follows settlement date method of nmbZ H$aVm h¡; accounting its investments; ii) bmJV ^m{aV Am¡gV bmJV nÕ{V na {ZYm©{aV H$s JB© h¡; ii) Cost is determined on weighted average cost method; iii) à{V^y{V`mo§ Ho {dHŒ ` na bm^ H$m {dHŒ ` na hm{Z Ho gmW {Zdb iii) Proﬁ t on sale is netted with loss on sale of securities;

{ZH$mbm J`m h¡; Ed§ and iv) {ZåZ{b{IV {Zdoemo§ H$s {~H«$s na, Am` _o§ CVma-M‹Tmd Ho H$maU iv) The portion of income/loss that arises on account

CËnÞ hmoZo dmbr Am`/hm{Z H$m {hñgm bm^/hm{Z Ho ên _o§ _mZm of movement in the yield, when the following OmEJm: investments are sold, will have to be treated as profi t/ H$) {ZYm©{aV Am` à{V^y{V`mo§ H$s {~H«$s H$s_V/_moMZ _yë` loss: VWm ~hr _yë` Ho ~rM Ho A§Va H$moo {Zdoemo§ H$s {~H«$s na a) The difference between the sale price/ redemption bm^ `m hm{Z Ho ên _o§ _mZm OmE& value of fi xed income securities and its book I) Vab å`yMwAb \§ S g{hV å`yMwAb \§ S {~H«$s H$s_V/ value shall be treated as profi t or loss on sale of investments. _moMZ _yë` VWm ~hr _yë` Ho ~rM Ho A§Va H$moo {Zdoemo§ H$s {~H«$s na bm^ `m hm{Z Ho ên _o§ _mZm OmE& b) The difference between sale price/redemption value of mutual funds including liquid Mutual J) Vab å`yMwAb \§ S g{hV å`yMwAb \§$S {~H«$s H$s_V/ Funds and its book value shall be treated as profi t/ _moMZ _yë` VWm ~hr _yë` Ho ~rM Ho A§Va H$moo {Zdoemo§ loss on sale of investments.

H$s {~H«$s na bm^ `m hm{Z Ho ên _o§ _mZm OmE& ~ÅmJV c) In respect of discounted securities viz. CD/CP/T- à{V^y{V`mo§, AWm©V² , grSr/grnr/Qr-{~b hoVw, {~H«$s Bills, difference between sale price and carrying H$s_V VWr aImd bmJV (~hr _yë` + Cn{MV ã`mO) cost (book value + accrued interest) shall be Ho ~rM Ho A§Va H$moo {Zdoe na bm^/hm{Z Ho ên _o§ _mZm treated as profi t/ loss on investment. OmE& 5. FIXED ASSETS 5. pñWa AmpñV`m± a] i. Fixed assets are stated at cost less accumulated H$] i. pñWa AmpñV`mo§ H$moo g§{MV _yë`õmg VWm hm{Z hoVw àmdYmZ H$moo depreciation and provision for impairment. Cost H$_ H$aVo hwE bmJV na Xem©`m J`m h¡& bmJV _o§ HŒ ` H$s_V comprises of the purchase price and any cost VWm AmpñV H$moo CgHo A{^àoV à`moJ hoVw CgHo H$m`© H$aZo H$s attributable for bringing the asset to its working pñW{V _o§ bmZo hoVw ghm`H$ H$mooB© ^r bmJV em{_b h¡& pñWa condition for its intended use. The carrying amounts of fi xed assets are reviewed at each Balance AmpñV`mo§ H$s {Z{hV am{e H$s àËòH$ VwbZ-nÌ {XZm§H$ H$moo Sheet date and adjusted for any impairment in g_rjm H$s OmVr h¡ VWm {H$gr ^r j{V hoVw AmB©grEAmB© Ûmam accordance with the Accounting Standard 28 Bg g§~§Y _o§ Omar boIm§H$Z _mZH$ 28 (AmpñV`mo§ H$s j{V) Ho (“Impairment of Assets”) issued in this regard by AZwgma g_m`mo{OV {H$`m J`m h¡& the ICAI. ii. ^y{_ Am¡a {~pëS§J (brOYmaU ^y{_ H$moo NmoSH$a), Omo ii. Land and Buildings (other than Leasehold {H n{aga H$m EH$ ^mJ h¡, H$m {gV§~a, 2018 Ho Xm¡amZ Land) being part of Premises revalued during

154 nwZ_y©ë`m§H$Z {H$`m J`m Ed§ Cgo Xmo _yë`m§H$Z {anmoQmoª Ho September 2018 are stated at the average market Am¡gV ~mµOma _yë` Ho ên _o§ Xem©`m J`m Am¡a Eogr AmpñV`mo§ value of two Valuation reports by crediting to Ho dgybr `mo½` _yë` H$moo nwZ_y©ë`m§H$Z Ama{jV {Z{Y`mo§ _o§ Revaluation reserve. Consequently, depreciation on these assets is charged to Proﬁ t and Loss

O_m H$aHo {XIm`m J`m h¡& n{aUm_ñdên, BZ AmpñV`mo§ account and an equal amount is adjusted to

na _yë`õmg H$moo bm^ d hm{Z ImVo _o§ à^m{aV {H$`m J`m h¡ the accumulated depreciation. Difference VWm g_mZ am{e H$moo g§{MV _yë`õmg _o§ g_m`mo{OV {H$`m between the depreciation and revalued carrying J`m h¡& _yë`õmg VWm nwZ_y©ë`m§{H$V aImd am{e Ho ~rM Ho amount and depreciation on its original cost A§Va VWm CgH$s _yb bmJV na _yë`õmg H$moo AmB©grEAmB© is transferred from “Reserve for revaluation of g§ñWmZ Ûmam Bg g§~§Y _o§ Omar ""g§n{Îm, g§`§Ì d CnH$aU'' Land and Building“ to “General Reserve” in boIm§H$Z _mZH$ (EEg) 10 Ho AZwgma "^y{_ VWm ^dZ accordance with AS 10 “Property, Plant and Ho nwZ_y©ë`m§H$Z hoVw Ama{jV {Z{Y' go "gm_mÝ` Ama{jV Equipment issued in this regard by the ICAI”.

{Z{Y' _o§ A§V{aV {H$`m OmVm h¡& iii. Impairment of Assets: iii. AmpñV`mo§ H$s j{V… Fixed Assets are reviewed for impairment whenever Ohm± {H$Ýht KQZmAmo§ Am¡a n{apñW{V`mo§ _o§ n{adV©Zmo§ Ho H$maU events or changes in circumstances warrant that the Eogm hmo OmVm h¡ {H$ {H$gr AmpñV Ho aImd am{e H$s dgybr carrying amount of an asset may not be recoverable. Zht hmo gH$Vr h¡, dhm± pñWa AmpñV`mo§ H$s j{V hoVw g_rjm H$s Recoverability of assets to be held and used is measured by a comparison of the carrying amount JB© h¡& Ym{aV Am¡a Cn`moJ H$s OmZo dmbr AmpñV`mo§ H$s dgybr of an asset to future net discounted cash fl ows j_Vm {H$gr AmpñV H$s aImd am{e go Cº am{e go àË`m{eV expected to be generated by the asset. If such assets ^mdr {Zdb ~Åm©H¥$V ZH$X àdmh H$s VwbZm Ûmam _mnm OmVm are considered to be impaired, the impairment to h¡& `{X Eogr AmpñV`mo§ H$moo jV _mZm OmVm h¡, Vmo Cº AmpñV be recognised is measured by the amount by which Ho C{MV _yë` go {OVZr A{YH$ CgH$s aImd am{e h¡, Cggo the carrying amount of the asset exceeds the fair j{V H$m {ZYm©aU {H$`m OmVm h¡& value of the asset. iv. H$m`©JV ny±Or _o§ pñWa AmpñV`mo§ H$s bmJV em{_b h¡ Omo AnZo iv. Capital Work-in-progress includes cost of fi xed A{^àoV à`moJ hoVw V¡`ma Zht h¡ VWm pñWa AmpñV`m± A{O©V assets that are not ready for their intended use and H$aZo hoVw àXÎm A{JŒ_ ^r em{_b h¡& also includes advances paid to acquire fi xed assets. b] Depreciation shall be provided under the straight line I] ny±OrH$aU Ho {XZm§H$ go Ohm± grYr aoIm nÕ{V Ho VhV _yë`õmg method from the date of capitalization. The assets are àXmZ {H$`m J`m h¡& H§$nZr A{Y{Z`_, 2013 H$s AZwgyMr-II Ho depreciated taking into consideration the useful life of àmdYmZ Ho AZwgma AmpñV Ho Cn`moJr g_` na {dMma H$aVo hwE the asset as provided in Schedule II of the Companies AmpñV`mo§ hoVw _yë`õmg àXmZ {H$`m J`m h¡& gmdYmZr Ho _m_bo Act, 2013. The Bank as a matter of prudence fi nds that Ho ên _o§ ~¢H$ Zo nm`m {H$ {ZåZ{b{IV AmpñV`mo§ H$m Cn`moJr g_` the useful life of the following assets is lower than the useful life of the respective category of assets mentioned II H§$nZr A{Y{Z`_, 2013 H$s AZwgyMr- (g§X^©: Ymam 123) _o§ in Schedule II (ref.: Sec. 123) of the Companies Act, Cp„{IV AmpñV`mo§ Ho g§~§{YV àdJ© Ho Cn`moJr g_` go H$_ h¡: 2013 as stated below: H ) _moQa gmB©H$b, ñHy$Qa Am¡a AÝ` _monoS - 8 df© (H§$nZr a. Motor Cycles, scooters and other mopeds - 8 years A{Y{Z`_ AZwgyMr-II _o§ Cp„{IV {Z`V Am`w 10 df© Ho (As against standard life mentioned in Companies gmnoj) Act Schedule-II -10 years) I) _mo~mBb \$mooZ - 3 df© (H§$nZr A{Y{Z`_ AZwgyMr-II _o§ b. Mobile Phones - 3 years (As against standard life Cp„{IV {Z`V Am`w 15 df© Ho gmnoj) mentioned in Companies Act Schedule-II -15 years) J) `ynrEg VWm g§~Õ _Xo§ -5 df© (H§$nZr A{Y{Z`_ c. UPS and allied items - 5 years (As against standard life mentioned in Companies Act Schedule - II -10 II 10 AZwgyMr- _o§ Cp„{IV {Z`V Am`w df© Ho gmnoj) years) 5 K) Eà H§$SreZa Am¡a BbopŠQ—H$b {\ qQJ - df© (H§$nZr d. Air conditioners and Electrical fi ttings - 5 years A{Y{Z`_ AZwgyMr-II _o§ Cp„{IV {Z`V Am`w 10 df© Ho (As against standard life mentioned in Companies gmnoj) Act Schedule-II - 10 years) L) nÅmYmar gwYmamo§ H$m 5 dfmoª H$s Ad{Y Ho {bE _yë`õmg {H$`m e. Leasehold Improvements are depreciated over period OmVm h¡& of 5 years.

ANNUAL REPORT 2018-19 155 M) Ohm± ^y{_ Ed§ ^dZ H$m _yë` AbJ-AbJ Zht {b`m J`m h¡, dhm± f. Depreciation on premises is provided for on composite cost, wherever the value of land and building is not n{aga na _yë`õmg g§`wº bmJV na àXmZ {H$`m J`m h¡& separately identifi ed. 6. {dXoer {d{Z_` g§~§Yr boZXoZ 6. TRANSACTIONS INVOLVING FOREIGN EXCHANGE H$) {dXoer _wÐm _o§ {H$E JE boZXoZmo§ Ho boZXoZ H$s {V{W H$moo bmJy Xamo§ a. Transactions denominated in foreign currencies are na n{aH${bV {H$`m J`m h¡& {dXoer _wÐm _m¡{ÐH$ AmpñV`m± Ed§ accounted for at the rates prevailing on the date of the transaction. Foreign currency monetary assets and Xo`VmE§ VwbZ-nÌ H$s {V{W Ho ^maVr` {dXoe {d{Z_` Srba liabilities are translated at the balance sheet date at closing Egmo{gEeZ (E\ B© Sr E AmB©) Ûmam A{Ygy{MV A§{V_ {d{Z_` exchange rates notifi ed by Foreign Exchange Dealers Xamo§ na n{aH${bV H$s JB© h¢ VWm n{aUm_r bm^/hm{Z`m± bm^ Ed§ Association of India [‘FEDAI’] and the resulting profi ts/ hm{Z ImVo _o§ em{_b H$s JB© h¢& losses are recognized in the profi t and loss account. I) {dXoer _wÐm J¡a-_m¡{ÐH$ _Xo§ Omo na§namJV bmJV Ho AZwgma br b. Foreign Currency non-monetary items, which are JB©, boZXoZ H$s VmarI Ho {d{Z_` Xa H$m à`moJ H$aHo {anmoQ© H$s carried in terms at historical cost, are reported using the exchange rate at the date of the transaction. JB© h¢& c. Outstanding foreign exchange spot and forward J) Q—oqSJ Ho {bE Ym{aV ~H$m`m dm`Xm {d{Z_` hm{Oa d dm`Xm contracts meant for trading purpose are revalued at H$ama {d{Z{X©îQ n{an¹VmAmo§ hoVw E\ B© Sr E AmB© Ûmam A{Ygy{MV the exchange rates specifi ed for spot and the respective {d{Z_` Xamo§ na nwZ_y©ë`m§{H$V {H$E JE h¢ VWm n{aUm_r bm^ `m forward maturities as notifi ed by FEDAI. The resulting hm{Z H$moo bm^ hm{Z ImVo _o§ {b`m J`m h¡& profi t or loss is shown under Profi t or Loss account. K) {dXoe {d{Z_` dm`Xm g§{dXmE§, Omo Q—oqSJ hoVw C{ÔîQ Zht h¢ VWm d. Foreign exchange forward contracts, which are not intended for trading and are outstanding at the balance VwbZ nÌ Ho {XZm§H$ H$moo ~H$m`m h¢, CZH$m nwZ_y©ë`Z E\ B© Sr sheet date, are revalued at the closing spot rate as notifi ed E AmB© Ûmam A{Ygy{MV A§{V_ hm{µOa Xamo§ na {H$`m J`m h¡ VWm by FEDAI and the resulting profi t or loss is shown under n{aUm_r bm^ `m hm{Z bm^-hm{Z ImVo _o§ Xem©B© JB© h¡& Eogo Profi t or Loss account. The premium or discount arising dm`Xm {d{Z_` g§{dXm Ho àma§^ na CËnÞ àr{_`_ `m ~Åo H$moo at the inception of such a forward exchange contract is g§{dXm Ad{Y _o§ ã`mO ì`` AWdm Am` Ho ên _o§ n{aemo{YV amortized as interest expense or income over the period {H$`m J`m h¡& of the contract. e. Contingent liabilities denominated in foreign currency L) {dXoer _wÐm _o§ AmH$pñ_H$ Xo`VmAmo§ Ho E\ B© Sr E AmB© H$s are reported using the FEDAI closing spot rates. A§{V_ hm{µOa Xamo§ H$m Cn`moJ H$aHo {anmoQ© {H$`m J`m h¡& 7. ì`wËn{Þ`m± 7. DERIVATIVES H$) ~¢H$ {dXoer _wÐm ã`mO Xa ñd¡n, _wÐm ñd¡n, _wÐm â`wMa, Am°ßeZ a) The bank enters into derivative contracts such as foreign currency interest rate swaps, currency swaps, currency VWm dm`Xm Xa H$ama O¡go ì`wËnÞ g§{dXmE§ H$aVm h¡& futures, options and forward rate agreements. I) ì`wËnÞ H$amamo§ na ~Mmd (hoO) Ho ên _o§ dJr©©H¥$V Am`/ì`` b) The income/expenses on derivative contracts classifi ed CnM` AmYma na XO© H$s JB© h¡& as hedge are recorded on accrual basis. J) g^r Q—oqSJ ì`wËnÞ g§{dXmE§ ~mOma Xa na {Z{X©îQ H$s JB© h¢ VWm c) All trading derivative contracts are marked to market n{aUm_r bm^ `m hm{Z bm^-hm{Z boIo _o§ {d{Z{X©îQ H$s JB© h¡& and the resultant gains or losses are recognized in the profi t and loss account. K) g^r ì`wËnÞ boZXoZ AmH$pñ_H$ Xo`VmAmo§ Ho VhV dJr©©H¥$V {H$E d) All derivative transactions are classifi ed under contingent JE h¢ VWm {dXoer _wÐm _yë`dJ© Ho boZXoZmo§ H$moo E\ B© Sr E AmB© liabilities and those denominated in foreign currencies A§{V_ hm{µOa Xamo§ H$m à`moJ H$aHo {anmoQ© {H$`m J`m h¡& are reported using the FEDAI closing spot rates.

8. ~hw_yë` YmVw {Z{hV boZXoZ 8. TRANSACTIONS INVOLVING PRECIOUS METALS H$) ~hw_yë` YmVw boZXoZ go àmßV Am` H$moo ‘AÝ` Am`’ Ho ên _o§ a] Income from precious metals transactions is accounted boIm§{H$V {H$`m J`m h¡& naofU AmYma na àmßV YmVwAmo§ Ho _m_bo for as “Other Income”. In case of metals received on _o§ Cgo {~H«$s Ho g_` H$s Am` Ho AmYma na {ZYm©aU {H$`m consignment basis, the income thereon is recognized at J`m h¡& the time of sale.

156 I) ~hw_yë` YmVwAmo§ Ho ê$n _o§ JŒmhH$moo§ H$moo {XE JE nÊ` G$Umo§ VWm b] Commodity loans to the constituents and deposits OZVm go ñdU© O_m `moOZm Ho A§VJ©V àmßV O_mAmo§ H$moo Ad{Y from public under the gold deposit scheme in the form of precious metals are translated at market related rates g_mpßV Ho g_` àM{bV ~mµOma g§~Õ Xamo§ _o§ n{ad{V©V {H$`m J`m prevailing at the close of the period and shown under h¡ VWm HŒ _e… A{JŒ_’ Am¡a "O_mE±' erf© Ho VhV Xem©`m J`m h¡& the head “Advances” and “Deposits” respectively. J) ~hw_yë` YmVwAmo§ Ho A§{V_ ñQmH$ H$moo (AnZo boZXoZ) bmJV go c] Closing stock of precious metals [own dealing] is {ZåZ VWm {Zdb dgybr `mo½` _yë` na Am±H$m J`m h¡& valued at lower of the cost and net realizable value. K) ñdU© O_m `moOZm Ho A§VJ©V Ym{aV ñdU© Ho A§{V_ ñQmH$ H$moo d] Closing stock of gold held under Gold Deposit Scheme ^maVr` {aµOd© ~¢H$ Ho {Xem{ZXo©emo§ Ho AZwgma ~mµOma g§~Õ Xamo§ is valued at market related rates, as per RBI guidelines. na Am±H$m J`m h¡& 9. CASH AND BALANCES WITH RESERVE BANK OF 9. ZH$Xr Ed§ ^maVr` {aOd© ~¢H$ _o§ eof INDIA ZH$Xr VWm ^maVr` {aµOd© ~¢H$ _o§ eof _o§ hñVJV d EQrE_mo§ _o§ ZH$Xr Cash and Balance with Reserve Bank of India include cash VWm hñVJV ñdU© Ed§ ^maVr` {aµOd© ~¢H$ Ho nmg Mmby ImVo _o§ eof on hand and in ATMs, and gold in hand and balances em{_b h¢& with RBI in current accounts., 10. H$_©Mmar {hVbm^ 10. EMPLOYEE BENEFITS H) ^maVr` gZXr boImH$ma g§ñWmZ (AmB©grEAmB©) Ûmam Omar a) The Bank has accounted for Employee Benefi ts as per boIm§H$Z _mZH 15 Ho AZwgma H$_©Mmar {hVbm^ hoVw ~¢H$ ImVo Accounting Standard 15 issued by the ICAI. h¢& b) i) Contributions payable to Gratuity, Pension I) i) n{a^m{fV bm^ `moOZmE§ JŒ¡À`wQr, no§eZ Am¡a NwÅr and Leave Encashment etc., which are defi ned benefi ts, based on actuarial valuations, at ZH$XrH$aU H$moo Xo` A§eXmZ H$m boIm§H$Z VwbZ nÌ Ho the Balance Sheet date, carried out by an {XZm§H$ H$moo ñdV§Ì ~r_m§H$H$ Ûmam {H$E JE dmñV{dH$ independent actuary; _yë`m§H$Z Ho AmYma na {H$`m OmVm h¡& ii) Contributions payable to the recognized ii) {Z{X©îQ ^{dî` {Z{Y/amîQ—r` no§eZ `moOZm (EZnrEg) provident fund/National Pension Scheme Omo n{a^m{fV A{^XmZ `moOZmE± h¢, BZ_o§ Xo` A§eXmZ H$moo (NPS), which is a defi ned contribution scheme; bm^ Am¡a hm{Z ImVo _o§ à^m{aV {H$`m J`m h¡& are charged to the profi t and loss account.

11. nÅmJV boZXoZ 11. LEASE TRANSACTIONS n{aMmbZ nÅo na br JB© AmpñV`mo§ hoVw nÅo Ho ^wJVmZmo§ H$moo nÅo H$s Ad{Y Lease payments for assets taken on operating lease are _o§ grYr aoIm nÕ{V Ho AmYma na bm^-hm{Z boIo _o§ ì`` Ho ên _o§ recognized as an expense in the profi t and loss account on {b`m J`m h¡& a straight-line basis over the lease term. 12. AmH$pñ_H$ Xo`VmE§ Ed§ àmdYmZ 12. CONTINGENT LIABILITIES AND PROVISIONS ^maVr` gZXr boImH$ma g§ñWmZ (AmB©grEAmB©) Ûmam Omar EEg 29 In conformity with AS 29, “Provisions, Contingent “àmdYmZ, AmH$pñ_H$ Xo`VmE§ VWm AmH$pñ_H$ AmpñV`m§” Ho AZwên Liabilities and Contingent Assets”, issued by the ICAI, ~¢H$ àmdYmZmo§ H$m {ZYm©aU Ho db V^r H$aVm h¡ O~ {dJV {H$gr KQZm the Bank recognizes provisions only when it has a present obligation as a result of a past event, it is probable that Ho \ bñdên Cgo dV©_mZ Xm{`Ëd hmoVm h¡& `h g§^d h¡ {H$ O~ Xm{`Ëd an outfl ow of resources embodying economic benefi ts will H$m {dœgZr` àm¸ bZ {H$`m Om gH$Vm h¡ V~ Am{W©H$ bm^ A{^ì`º be required to settle the obligation, and when a reliable H$aZo dmbo g§gmYZmo§ Ho ~mha àdmh go Xm{`Ëd H$m {ZnQmZ H$aZm n‹So& estimate of the amount of the obligation can be made. Past events leading to possible obligations existence g§^m{dV Xm{`Ëd CËnÞ H$aZo dmbo {nNbr KQZmAmo§ H$s nwpîQ {OZH$m of which will be confi rmed only by the occurrence or ApñVËd EH$ AWdm A{YH$ A{Z{üV ^mdr KQZmAmo§, Omo nyU©V… ~¢H$ Ho non-occurrence of one or more uncertain future events {Z`§ÌU _o§ Zht h¢, Ho KQZo `m Z KQZo na hr, H$s OmEJr AWdm dV©_mZ not wholly within the control of the Bank; or present Xm{`Ëd, Ohm± `h g§^mì` Zht h¡ {H$ Am{W©H$ bm^ CËnÞ H$aZo dmbo obligations where it is not probable that an outfl ow of g§gmYZmo§ H$m H$mooB© ~{hdm©h Xm{`Ëd H$m {ZnQmZ H$aZo hoVw Ano{jV hmoJm resources embodying economic benefi ts will be required to

ANNUAL REPORT 2018-19 157 AWdm Xm{`Ëd H$s am{e H$m {dœgZr` àm¸ bZ Zht {H$`m Om gH$Vm settle the obligation; or a reliable estimate of the amount of obligation cannot be made, are treated as contingent h¡, BÝho§ AmH$pñ_H$ Xo`VmAmo§ Ho ê$n _o§ _mZm OmVm h¡ VWm boIm§H$Z liabilities and are dealt-with in accordance with AS-29. _mZH$ 29 Ho AZwgma H$m`©dmB© H$s OmVr h¡& Contingent Assets are not recognized in the ﬁ nancial {dÎmr` {ddaUmo§ _o§ AmH$pñ_H$ AmpñV`mo§ H$m {ZYm©aU Zht {H$`m OmVm statements. h¡& 13. TAXES ON INCOME 13. Am` na H$a Income-tax expense comprises current tax [i.e. amount Am` H$a ì`` _o§ Mmby H$a (AWm©V² Am` H$a H$mZyZ Ho AZwgma {ZYm©{aV of tax for the period determined in accordance with Ad{Y hoVw H$a H$r am{e) VWm AmñW{JV H$a à^ma `m O_m (Ad{Y the income-tax law] and deferred-tax charge or credit hoVw boIm§H$Z Am` VWm H$a `mo½` Am` Ho ~rM g_` Ho A§Va H$m H$a [reﬂ ecting tax effects of timing differences between accounting income and taxable income for the period]. à^md à{Vq~{~V H$aZo dmbm) em{_b h¡& H$) bmJy H$a Xamo§, H$a {d{Y`mo§ Am¡a AZwHy$b Ý`m{`H$ CX²¿mmofUmAmo§/ a] Current tax is measured at the amount expected {d{YH$ A{^_Vmo§ Ho AZwgma H$amYmZ àm{YH$m{a`mo§ H$moo ^wJVmZ to be paid to the taxation authorities, using the hoVw Ano{jV am{e Ho AmYma na Mmby H$a H$moo _mnm J`m h¡& applicable tax rates, tax laws and favourable judicial pronouncements/legal opinions. I) AmñW{JV H$a à^ma `m O_m VWm AZwênr AmñWm{JV H$a Xo`VmAmo§ `m AmpñV`mo§ H$mo CZ H$a Xamo§ Ho à`moJ go {ZYm©{aV b] The deferred-tax charge or credit and the corresponding {H$`m J`m h¡ Omo VwbZ-nÌ {XZm§H$ VH$ A{Y{Z`{_V `m _yb deferred-tax liabilities or assets are recognized using the tax rates that have been enacted or substantively ê$n go A{Y{Z`{_V H$s JB© h¢& ^m{a~¢ H$s gyMZm Ho AZwgma ~¢H$ enacted by the Balance Sheet date. As advised by the AmñW{JV H$a Xo`VmAmo§ H$mo Am`H$a A{Y{Z`_ H$s Ymam 36 RBI, Bank shall create Deferred Tax Liabilities on the (i) (viii) Ho A§VJ©V g¥{OV ""{deof Ama{jV {Z{Y'' H$mo àXmZ “Special Reserves” created by Banks under Section 36 H$aVm h¡& AmñW{JV H$a AmpñV`mo§ H$m {ZYm©aU Cgr gr_m VH$ (1) (viii) of the Income Tax Act, 1961. Deferred Tax {ddoH$mZwgma {H$`m J`m h¡ Ohm± `h g§^mì` {Z{üVVm ahVr h¡ {H$ assets are recognized keeping in view the consideration of prudence only to the extent there is virtual certainty AmpñV`mo§ H$mo ^{dî` _o§ àmßV {H$`m Om gH$Vm h¡& that the assets are realized in future.

14. à{V eoà AO©Z 14. EARNINGS PER SHARE _yb Ed§ VZy©H¥$V à{V eoà Am` H$m n{aH$bZ ^maVr` gZXr boImH$ma Basic and Diluted Earnings per Equity Share are computed g§ñWmZ Ûmam Omar boIm§H$Z _mZH$ 20 à{V eoà AO©Z Ho AZwên in accordance with Accounting Standard 20, Earnings Per Share, issued by the Institute of Chartered Accountants of {H$`m J`m h¡& India. 15. {Q—Ja Bdo§Q Ho hmoZo na ~ogb III AmYm{aV A{V{aº {Qà I ~m°ÊS 15. Treatment of Basel III compliant Additional Tier I VWm {Qà II ~m°ÊS H$m {ZênU: Bonds and Tier II Bonds on occurrence of Trigger events: H$] {Q—Ja Bdo§Q AWm©V², gm_mÝ` Bp¹Qr {Qà I {Q—Ja Bdo§Q Ho hmoZo na A] On occurrence of Trigger event i.e. Common Equity ~¢H$ ~m°ÊSmo§ Ho ~H$m`m _ybYZ H$m AdboIZ H$aoJm Omo ""EQr1 Tier I trigger event the Bank shall write-down the ~m°ÊS {aµOd©'' Ho g¥OZ Ûmam Cnamoº grB©Qr1 {Q—Ja Bdo§Q H$mo ~¢H$ outstanding principal of the Bonds not less than that the amount required to immediately return the Banks Ho$ gm_mÝ` Bp¹Qr AZwnmV H$s VËH$mb dmngr hoVw Ano{jV am{e Common Equity Ratio to above the CET1 trigger go H$_ Zht hmoJm& Bg àH$ma g¥{OV {aµOd© gm_mÝ` Bp¹Qr {Qà I event by creating “AT 1 Bond Reserve”. The reserve ny±Or ~m°ÊS H$m ^mJ hmoJm {Ogo grB©Qr1 {Q—Ja Bdo§Q Ho hmoZo na so created shall be part of Common Equity Tier I Capital Bonds written down on occurrence of CET1 AñWm`r ê$n go Adbo{IV {H$`m J`m h¡, H$mo EQr-1 ~m°ÊS {aµOd© Trigger event temporarily may be re-instated in terms _o§ Zm_o H$aVo hwE ~m°ÊS {ZJ©_/^m.{a.~¢. {Xem{ZXo©emo§ Ho AZwgma of Bond issue /RBI guidelines by debit to AT-1 Bond nwZ…ñWm{nV {H$`m OmEJm& reserve.

158 I) ^maVr` {aµOd© ~¢H$ Ûmam àma§^ ßdmB§Q Am°\ Zm°Z-dmò{~{bQr B] On occurrence of Point of Non-Viability [PONV] trigger event initiated by Reserve Bank of India, the (nrAmoEZdr) {Q—Ja Bdo§Q Ho hmoZo na, _m_bo Ho AZwgma EQr-1 Bank may create common equity Tier I capital by ~m°ÊS {aµOd©/{Qà II ~m°ÊS {aµOd© Ho VXZwê$nr g¥OZ Ho gmW writing off Additional Tier I Bond principal amount ñWm`r ê$n go A{V{aº {Qà I ~m°ÊS _ybYZ am{e Ho AdboIZ permanently with corresponding creation of AT-1 Ûmam gm_mÝ` Bp¹Qr {Qà I ny±Or H$m g¥OZ H$a gH$Vo h¢& Bond reserve/Tier II Bond Reserve as the case may nwZ…ñWmnZm eV© nrAmoEZdr {Q—Ja Bdo§Q H$s KQZm na bmJy be. The re-instatement clause is not applicable on Zht h¡& occurrence of PONV trigger event.

[nr.dr.^maVr] [Jmonmb _wabr ^JV] [{~énmj {_lm] à~§Y {ZXoeH Ed§ grB©Amo H$m`©nmbH {ZXoeH H$m`©nmbH {ZXoeH [_Zrf JwßVm] [nr. Ho . nm§Sm] [Ho . lr{Zdmg _y{V©] {ZXoeH {ZXoeH {ZXoeH [E_. ^Jd§V amd] [àXrn Hw _ma O¡Z] [{MÌm Jm¡ar bmb] {ZXoeH {ZXoeH {ZXoeH [dr. _wÎmwH¥ îUZ] [kmZ a§OZ gma§Jr] [gw^mf Hw$_ma Ho ed] _hm à~§YH Cn _hmà~§YH Cn _hmà~§YH H¥$Vo XÎmm qgJbm EÊS H§ . H¥$Vo E. Ho . g~V EÊS H§ . H¥$Vo à_moX EÊS Egmo{gEQ²g gZXr boImH ma gZXr boImH ma gZXr boImH ma E\$AmaEZ-006185EZ E\$AmaEZ-321012B© E\$AmaEZ-001557gr (grE g§Ord AJ«dmb) (grE E. Ho . g~V) (grE a{d§Ð amZrdmbm) gmÂmoXma gmÂmoXma gmÂmoXma gXñ` g§.503932 gXñ` g§. 30310 gXñ` g§. 073191 H¥$Vo MÝÐZ EÊS a_Z (H¥$Vo Eg. am_mZ§X Aæ`a EÊS H§ .) gZXr boImH ma gZXr boImH ma E\$AmaEZ-000571Eg E\$AmaEZ-000990EZ (grE Eg.Or. H$ë`mUa_U) (grE {~ZmoX gr. _hmamUm) gmÂmoXma gmÂmoXma gXñ` g§.10652 gXñ` g§.056373 ñWmZ … _§Jbyé {XZm§H $… 17 ‘B©, 2019 [ P.V. Bharathi] [Gopal Murli Bhagat] [Birupaksha Mishra] Managing Director & CEO Executive Director Executive Director [Manish Gupta] [P. K. Panda] [K. Srinivasa Murthy] Director Director Director [M. Bhagavantha Rao] [Pradeep Kumar Jain] [ Chitra Gouri Lal] Director Director Director [V Muthukrishnan] [Gyana Ranjan Sarangi] [Subhash Kumar Keshav] General Manager Deputy General Manager Deputy General Manager For Datta Singla & Co. For A. K. Sabat & Co. For Pramod & Associates Chartered Accountants Chartered Accountants Chartered Accountants FRN: 006185N FRN: 321012E FRN: 001557C [CA Sanjeev Aggarwal] [CA A K Sabat ] [CA Ravindra Raniwala] Partner Partner Partner Membership No. 503932 Membership No. 30310 Membership No. 073191 For Chandran & Raman For S. Ramanand Aiyar & Co. Chartered Accountants Chartered Accountants FRN: 000571S FRN: 000990N [CA S G Kalyanaraman] [CA Binod C. Maharana] Partner Partner Membership No. 10652 Membership No. 056373 Place : Mangaluru Date : 17 May, 2019

ANNUAL REPORT 2018-19 159 AZwgyMr 18 - EH$b Schedule 18 – Standalone {Q>ßn{U`m§ Omo 31 _mM©, 2019 H$mo g_má df© NOTES FORMING INTEGRAL PART OF THE ACCOUNTS FOR THE YEAR ENDED hoVw boIm| H$m A{^ÝZ A§J h¢ 31st MARCH, 2019 H$. ^m.[a.~¢ Ûmam Omar {Xem{ZX}em| H$s eVm] Ho$ AZwgma Amdí`H$ A. DISCLOSURES REQUIRED IN TERMS OF àH$Q>U GUIDELINES ISSUED BY RBI 1.0 ny±Or H$) ~¢H$ Zo `27.40 à{V eoà Ho$ àr{_`_ na `2/- A§{H$V _yë` Ho$ 1.0 CAPITAL 86,90,47,919 B©{¹$Q>r eoà 11, Aºy$~a 2018 H$mo `2555.00 a) Bank has allotted 86,90,47,619 equity shares of `2/- each at H$amo‹S> Ho$ à{V\$b hoVw A{Y_mZVm AmYma na AWm©V `29.40 Ho$ a premium of `27.40 per share i.e. at an issue price of `29.40 {ZJ©_ _yë` na ^maV gaH$ma H$mo Omar Ed§ Am~§{Q>V {H$E JE& to Government of India on preferential basis on October 11, I) df© Ho$ Xm¡amZ ~¢H$ Zo `17.61 à{V eoà Ho$ àr{_`_ na `2/- A§{H$V 2018 for a total consideration of `2555.00 crore. _yë` Ho$ 5,40,40,570 B©{¹$Q>r eoà 8 _mM©, 2019 H$mo H$mnm}aoeZ b) During the year, the Bank has allotted 5,40,40,570 equity ~¢H$ H$_©Mmar ñQ>m°H$ IarX `moOZm 2018 Ho$ A§VJ©V `105.97 H$amo‹S> shares of `2/- each at a premium of `17.61 per share i.e. at Ho$ à{V\$b hoVw AWm©V `19.61 à{V eoà Ho$ {ZJ©_ _yë` na ~¢H$ Ho$ an issue price of `19.61 per share to eligible employees of the nmÌ H$_©Mm[a`m| H$mo Omar Ed§ Am~§{Q>V {H$E JE& Bank under Corporation Bank Employees Stock Purchase Scheme 2018 on March 8, 2019 for a total consideration of ` ` J) df© Ho$ Xm¡amZ ~¢H$ Zo 24.68 à{V eoà Ho$ àr{_`_ na 2/- `105.97 crore. A§{H$V _yë` Ho$ 340,55,47,226 B©{¹$Q>r eoà 29 _mM©, 2019 c) During the year, the Bank has allotted 340,55,47,226 equity shares ` H$mo 9086.00 H$amo‹S> Ho$ à{V\$b hoVw A{Y_mZVm AmYma na AWm©V of `2/- each at a premium of `24.68 per share i.e. at an issue price `26.68 à{V eoà Ho$ {ZJ©_ _wë` na ^maV gaH$ma H$mo Omar Ed§ of `26.68 per share to Government of India on preferential basis on Am~§{Q>V {H$E JE& March 29, 2019 for a total consideration of `9086.00 crore. K) ~¢H$ H$s ny±Or _| ^m[aV OmopI_ AmpñV AZwnmV (grAmaEAma) H$s d) The Bank’s Capital to Weighted Risk Assets Ratio (CRAR) JUZm ^maVr` [aµOd© ~¢H$ Ho$ {Xem{ZX}em| Ho$ AZwgma H$s JB© h¡& ò has been worked out as per the RBI guidelines. These ratios AZwnmV {ZåZdV² h¢ are given below: (` H$amo‹S> ‘|/` in crores) 31 ‘mM©, 2019 31 ‘mM©, 2018 H«$.g§. 31st March, 2019 31st March, 2018 Sl. {ddaU Particulars No. ~ogb III ~ogb III Basel III Basel III i) gm_mÝ` B©{¹$Q>r {Q>¶a 1 ny±Or AZwnmV Common Equity Tier 1 capital ratio 10.39% 5.68% ii) {Q>¶a 1 ny±Or AZwnmV Tier 1 capital ratio 10.52% 7.27% iii) {Q>¶a 2 ny±Or AZwnmV Tier 2 capital ratio 1.78% 1.96% iv) Hw$b ny±Or AZwnmV (grAmaEAma) Total Capital ratio (CRAR) 12.30% 9.23% v) ^maV gaH$ma H$s eo¶aYm[aVm H$m à{VeV Percentage of the shareholding of the Government of India 93.50% 79.87% vi) df© Ho$ Xm¡amZ g§J«{hV B©{¹$Q>r ny±Or H$s am{e Amount of equity capital raised during the year 1. ^maV gaH$ma Ûmam S>mbr JB© ny§Or - `2555 H$amo‹S Capital infused by Govt. of India - `2555 crore 11,746.97 2,187.00 2. H$mn© ~¢H$ B©gnrEg 2018 Ho$ A§VJ©V g§J«{hV ny§Or - `105.97 H$amo‹S Capital raised under CORPBANK ESPS 2018 - `105.97 crores. 3. ^maV gaH$ma Ûmam S>mbr JB© ny§Or -`9086 H$amo‹S Capital infused by Govt. of India - `9086 crores vii) df© Ho$ Xm¡amZ g§J«{hV A{V[aº$ {Q>¶a 1 ny±Or H$s am{e {OZ‘| Amount of Additional Tier 1 capital raised; of which - 800.00 emídV J¡a- g§M`r A{Y_mZ eoà (nrEZgrnrEg) Perpetual Non-Cumulative Preference Shares (PNCPS) - emídV F$U {bIV (nrS>rAmB©) Perpetual Debt Instruments (PDI) - 800.00

160 31 ‘mM©, 2019 31 ‘mM©, 2018 H«$.g§. 31st March, 2019 31st March, 2018 Sl. {ddaU Particulars No. ~ogb III ~ogb III Basel III Basel III viii) g§J«hrV {Q>¶a 2 ny±Or; {OZ‘| go Amount of Tier 2 capital raised; of which - H$O© ny±Or {bIV… Debt capital instrument - 500.00 A{Y‘mZ eo¶a ny±Or {bIV Preference Share Capital Instruments - emídV g§M¶r A{Y‘mZ eo¶a (nrgrnrEg) Perpetual Cumulative Preference Shares (PCPS) - à{VXo¶ J¡a-g§M¶r A{Y‘mZ eo¶a (AmaEZgrnrEg) Redeemable Non-Cum. Preference Shares (RNCPS) - à{VXo¶ g§M`r A{Y‘mZ eo¶a (AmagrnrEg) Redeemable Cumulative Preference Shares (RCPS) -

2.0 {Zdoe 2.0 INVESTMENTS (` H$amo‹S> ‘|/` in crores) H«$.g§. 31 ‘mM©, 2019 31 ‘mM©, 2018 Sl. No. {ddaU Particulars 31st March, 2019 31st March, 2018 1 {Zdoem| H$m _yë` Value of Investments (i) {Zdoem| H$m gH$b _yë` Gross Value of Investments H$) (a) ^maV _| In India 61,214.62 71,488.23 I) (b) ^maV Ho$ ~mha Outside India 0.54 0.54 (ii) _yë`õmg hoVw àmdYmZ Provisions for Depreciation H$) (a) ^maV _| In India 1,235.97 1,139.02 I) (b) ^maV Ho$ ~mha Outside India eyÝ¶ Nil eyÝ¶ Nil (iii) {Zdoem| H$m {Zdb _yë` Net Value of Investments H$) (a) ^maV _| In India 59,978.65 70,349.21 I) (b) ^maV Ho$ ~mha Outside India 0.54 0.54 2 {Zdoem| ‘| ‘yë¶õmg hoVw Ym[aV àmdYmZm| H$s pñW{V Movement of provisions held towards depreciation on investments àma§{^H$ eof Opening balance 1,139.02 443.67 Omo‹S>o… df© Ho$ Xm¡amZ {H$E JE àmdYmZ Add: Provisions made during the year 332.69 821.26 KQ>mE§… df© Ho$ Xm¡amZ A{YH$ àmdYmZm| H$m AnboIZ/à{VboIZ 235.74 125.91 Less: Write-off/write-back of excess provisions during the year A§{V‘ eof Closing balance 1,235.97 1,139.02 H$) df© Ho$ Xm¡amZ ""n{an¹Vm VH$ Ym{aV'' dJ© Ho$ VhV AmZodmbr à{V^y{V a) During the year, premium of `78.94 crore (previous year `98.36 Ho$ g§~§Y _o§ `78.94 H$amo‹S ({nNbo df© `98.36 H$amoS.) Ho$ àr{_`_ crore) was amortized in respect of securities held under “Held to H$mo n{aemo{YV {H$`m J`m & Maturity” category. I) df© Ho$ Xm¡amZ ""Q—oqSJ Ho$ {bE Ym{aV'' dJ© Ho$ VhV AmZodmbr à{V^y{V b) During the year, there was depreciation of `0.01 crore (previous Ho$ {bE _yë`õmg `0.01 ({nN>bo df© `eyÝ` H$amo‹S>) Wm& year nil) for securities held under the “Held for Trading” category. J) df© Ho$ Xm¡amZ "{~H«$s Ho$ {bE CnbãY' dJ© Ho$ VhV {Zdoe Ho$ {bE c) During the year, there was reversal of provision for depreciation `58.96 H$amo‹S> H$m _yë`õmg ({nN>bo df© `202.91 H$amo‹S> {X`m J`m) of `58.96 crore (previous year `202.91 crore was provided) for àmdYmZ dm{ng {H$`m J`m & investments under the “Available for Sale” category. K) ^m.[a.~¡. Zo AnZo n[anÌ g§X^©.S>r~rAma.g§.~rnr.~rgr. 102/ d) RBI vide its circulars DBR.No.BP.BC.102/21.04.048/2017-18 21.04.048/2017-18 {XZm§{H$V 02.04.2018 Ed§ S>r~rAma dated April 2, 2018 and DBR.No.BP.BC.113/21.04.048/2017-18 g§.~rnr.~rgr.113/21.04.048/2017 -18 {XZm§{H$V 15.06.2018 dated June 15, 2018 had permitted banks to spread provisioning Ho$ O[aE ~¢H$m| H$mo {Xg§~a 31, 2017 Ed§ _mM© 31, 2018 Ed§ 30 OyZ for mark to market (MTM) losses on investments held in AFS 2018 H$mo g_má {V_mhr hoVw EE\$Eg Ed§ EME\$Q>r _| Ym[aV {Zdoe and HFT for the quarters ended 31st December, 2017, 31st

ANNUAL REPORT 2018-19 161 na _mH}$ go _mH}$Q> (E_Q>rE_) na hþB© hm{Z Ho$ {bE àmdYmZ H$aZo H$m March, 2018 and 30th June, 2018 equally over up to four quarters {dH$ën {X`m h¡& BZ VrZ {V_m{h`m| _| ~¢H$ Ûmam {H$E JE E_Q>rE_ KmQ>m commencing from the quarter in which the loss is incurred. The H«$_e: 414.88 H$amo‹S> énò, 99.25 H$amo‹S> énò Am¡a 209.15 H$amo‹S> MTM losses incurred by the bank of `414.88 crores, `99.25 crores énò h¡& VXZwgma, ~¢H$ Zo 31 _mM© `232.25 H$amo‹S>, 30 OyZ 2018 and `209.15 crore respectively in these three quarters have been H$mo `60.01 H$amo‹S>, Am¡a 30 {gV§~a 2018 H$mo g_má {V_mhr Ho$ spread over. Accordingly, the bank made provision of `232.25 cr, {bE `60.01 H$amo‹S> énò H$m àmdYmZ {H$`m Am¡a 31.12.2018 H$mo `60.01 cr and `60.01 cr in the quarters ended 31st March, 2018, `109.49 H$amo‹S> F$U_w{º$ eof Wr My§{H$ ~m°ÝS> Xa _| H$_r AmB© Wr Am¡a 30th June, 2018 and 30th September, 2018 and there was nmoQ>©\$mo{b`mo H§$nmo{OeZ _| ~Xbmd hþAm Wm, Bg{bE AmñW{JV àmdYmZ unamortized balance of `109.49 cr as on 31.12.2018. Since {H$E OmZo H$s Amdí`H$Vm Zht Wr Am¡a BgHo$ n[aUm_ñdê$n 31 _mM©, the Bond rate had eased and there was change in the portfolio 2019 H$mo g_má {V_mhr Ho$ {bE 52.29 H$amo‹S> énò Ho$ {Zdb àmdYmZ composition, deferred provision was not required to be made and it H$s nwZ… àm{á hþB©& resulted in retrieval of net provision of `52.29 crore for the quarter ended 31st March, 2019. L) df© Ho$ Xm¡amZ ~¢H$ Zo `8692.94 H$amo‹S> (JV df© `2940.94 H$amo‹S>) Ho$ ~hr _yë` H$s à{V^y{V`m| H$mo {~H«$s Ho$ {bE CnbãY àdJ© go e) During the year, the Bank had transferred securities of book value of `8692.94 crore (Previous year `2940.94 crore) from “Available for `238.52 H$amo‹S >(JV df© `66.47 H$amo‹S>) Ho$ _yë`hmg H$mo ""n[an¹$Vm ` Sale” to “Held to Maturity” category by accounting depreciation of VH$ Ym[aV'' àdJ© _| A§V[aV {H$`m, 12390.91 H$amo‹S> (JV df© `238.52 crores (previous year `66.47 crores), transferred securities ` 6186.89 H$amo‹S>) Ho$ ~hr _yë` H$s à{V^y{V`m| H$mo n[an¹$Vm VH$ of book value of `12390.91 crore (Previous year `6186.89 crore) Ym[aV'' àdJ© go ""{~H«$s Ho$ {bE CnbãY'' àdJ© _| A§V[aV {H$`m h¡, from “Held to Maturity” to “Available for Sale” category, transferred ` eyÝ` H$amo‹S> (JV df© eyÝ`) Ho$ ~hr _yë` H$s à{V^y{V`m| H$mo "Q´>oqS>J Ho$ securities of book value of ` NIL crores (Previous year ` Nil crores) {bE Ym[aV' go ""{~H«$s Ho$ {bE CnbãY'' àdJ© _| A§V[aV {H$`m h¡ Am¡a from “Held for Trading” to “Available for Sale category” and also ` eyÝ` H$amo‹S> (JV df© eyÝ`) Ho$ ~hr _yë` H$s à{V^y{V`m| H$mo ""Q´>oqS>J Ho$ transferred securities of book value of ` NIL crore (Previous year {bE Ym[aV'' go ""n[an¹$Vm VH$ Ym[aV'' àdJ© _| A§V[aV ^r {H$`m h¡& ` Nil crores) from “Held for Trading” to “Held to Maturity”. M) df© Ho$ Xm¡amZ, EMQ>rE_ àdJ© _|/go à{V^y{V`m| H$s {~H«$s/A§VaU H$m f) During the current year, the value of sales/ transfers of securities to/ _yë` à{V^y{V`m| H$m g§{d^mJ A§VaU (^m.[a.~¢. Ûmam AZw_V EH$ from HTM category [excluding portfolio transfer of securities ~maJr/{deof qdS>mo Ho$ A§VJ©V) Am¡a AmoE_Amo Zrbm{_`m| _| ^m.[a.~¢. (under one time/special window permitted by RBI) and sales to H$mo {~H«$s H$mo N>mo‹S>H$a df© Ho$ àma§^ _| EMQ>rE_ àdJ© _| Ym[aV {Zdoe RBI under OMO auctions] had not exceeded the limit of 5% of Ho$ ~hr _yë` Ho$ 5% go A{YH$ Wm& the book value of the investment held in HTM category at the N>) gaH$mar à{V^y{V`m| H$s am{e `661.85 H$amo‹S> (JV df© `1130.43 H$amo‹S>) beginning of the year. grgrAmB©Eb/EZEggrgrEb/E_grEŠggrgrEb/AmB©grgrEb g) Government Securities amounting to `661.85 cr (Previous Year Ho$ gmW goQ>b_|Q> Jma§Q>r \§$S> `m {S>\$m°ëQ> \§$S> Ho$ {bE {Jadr aIr `1,130.43 cr) are pledged with CCIL/NSCCL/MCXCCL/ICCL OmVr h¡& for Settlement Guarantee Fund or Default Fund. O) gaH$mar à{V^y{V`m§ g{hV `20,244.57 H$amo‹S> énò (JV df© h) Investments include Government securities amounting to 36,020.53 H$amo‹S> énò) H$m {Zdoe EbEE\$-aonmo/Q´>oßg/ grAmaAmoE_ `20,244.57 crores (Previous year `36,020.53 crore) pledged for Eg-aonmo/gr~rEbAmo Ho$ VhV CYma boZo Ho$ {bE {Jadr aIr JB© h¢ borrowing under LAF-Repo/TREPS/CROMS-Repo/CBLO (O¡gm {H$ bmJy h¡) {Og_| `5084.32 H$amo‹S> (JV df© 14,451.90 (as applicable) out of which `5084.32 crores (Previous year was H$amo‹S> Wr) na F$U {b`m J`m h¡& 14,451.90 crores) are encumbered. 2.2 aonmo boZXoZ (A§{H$V _yë` Ho$ AmYma na) 2.2 Repo Transactions (In face value terms) (` H$amo‹S> _|/` in crores) df© Ho$ Xm¡amZ Ý`yZ V_ df© Ho$ Xm¡amZ df© Ho$ Xm¡amZ Am¡g VZ `Wm 31 _mM©, 2019 ~H$m`m A{Y H$ V_ ~H$m`m X¡{ZH$ ~H$m`m H$mo ~H$m`m {ddaU Particulars Minimum Maximum Daily Average Outstanding outstanding outstanding outstanding as on during the year during the year during the year March 31, 2019 aonmo Ho$ VhV ~oMr JB© à{V ^y {V`m± Securities sold under repo i. gaH$mar à{V^y{V¶m± Government securities 0.00 5584.26 902.01 4430.31 ii. H$mnm}aoQ> H$O© à{V^y{V¶m± Corporate debt securities 0.00 0.00 0.00 0.00 [adg© aonmo Ho$ VhV IarXr JB© à{V ^y {V`m± Securities purchased under reverse repo i. gaH$mar à{V^y{V¶m± Government securities 0.00 3799.96 101.40 0.00 ii. H$mnm}aoQ> H$O© à{V^y{V¶m± Corporate debt securities 0.00 0.00 0.00 0.00

162 2.3 J¡a-EgEbAma {Zdoe g§{d^mJ 2.3 Non-SLR Investment Portfolio i) J¡a-EgEbAma {Zdoemo§ H$s OmarH$Vm© g§aMZm i) Issuer Composition of Non-SLR Investments (` H$amo‹S> _|/` in crores) {ZOr {Z`moOZ "{Zdoe J«oS> go {ZåZ' "AloUrJV' "AgyMr~Õ' H«$.g§. H$s _mÌm H$s _mÌm à{V^y{V`m| H$s à{V^y{V`m| H$s Sl. Issuer Amount Extent of Extent of ‘Below _mÌm _mÌm OmarH$Vm© am{e Extent of Extent of No. Private Investment Grade’ ‘Unrated’ ‘Unlisted’ Placement Securities Securities Securities 1 gm.jo. CÚ_ (gm.jo. ~¢H$m| d gm.jo. {d. g§ñWmAmo§ H$mo Nmo‹S>H$a) PSUs (Excl. PSB & PSU FIs) 950.44 117.61 - - - 2 {dÎmr` g§ñWmE§ FIs 1,808.15 1,654.97 - - - 3 ~¢H Banks 295.59 295.24 - - - 4 {ZOr H$mnmo©aoQ Private Corporates 1,611.68 1,584.52 80.58 80.58 80.58 5 AZwf§{J`m±/g§`wº CÚ_ Subsidiaries/Joint Ventures 75.00 75.00 - - - 6 AÝ` Others 14,992.48 13,988.24 - - - 7 _yë`õmg hoVw Ym[aV àmdYmZ Provision held towards depreciation (1,229.70) - - - - Hw$b Total 18,503.64 17,715.58 80.58 80.58 80.58 {Q>ßnUr : Cn`w©º$ H$m°b_ 4, 5, 6 Am¡a 7 _o§ {anmoQ© H$s JB© am{e nañna AZÝ` Zht hmo gH$Vr& Note : Amounts reported under columns 4, 5, 6 and 7 above may not be mutually exclusive. ii) J¡a-{ZînmXH$ J¡a-EgEbAma {Zdoe ii) Non-performing Non-SLR Investments (` H$amo‹S> _|/` in crores)

Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 {ddaU 31st March, 2019 31st March, 2018 àma§{^H$ eof Opening Balance 860.73 251.30 1 Aà¡b go df© Ho$ Xm¡amZ n[adY©Z Additions during the year since 1st April 99.14 672.76 Cn`w©ŠV Ad{Y Ho$ Xm¡amZ H$_r Reduction during the above period 25.18 63.33 B{Veof Closing balance 934.69 860.73 Ym[aV Hw$b àmdYmZ Total Provisions held 889.02 733.11 3.0 ì`wËn{Þ`m± 3.0 DERIVATIVES 3.1 dm`Xm Xa H$ama/ã`mO Xa ñd¡n 3.1 Forward Rate Agreement/Interest Rate swap (` H$amo‹S> _|/` in crores) H«$.g§. Items 31 ‘mM©, 2019 31 ‘mM©, 2018 Sl. No. _X| 31st March, 2019 31st March, 2018 i) ñd¡n H$ama H$m AmZw_m{ZH _ybYZ The notional principal of swap agreements – – ii) H$amam| Ho$ VhV `{X à{V nm{Q>©¶m± AnZo Xm{`Ëd nyam H$aZo _| Ag\$b hmoVr h¢ Vmo Cggo hmoZodmbr hm{Z Losses which would be incurred if counterparties failed to fulﬁ ll their obligations under the agreements – – iii) ñd¡n _| àdoe H$aZo na ~¢H$ Ûmam Ano{jV g§nmpíd©H à{V^y{V Collateral required by the bank upon entering into swaps – – iv) ~¢H$m| H$mo ñd¡n go CËnÞ hmoZo dmbo F$U Omo{I_ H$m Ho$ÝÐrH$aU Concentration of credit risk arising from the swaps – – v) ñd¡n ~hr H$m C{MV _yë` The fair value of the swap book – –

ANNUAL REPORT 2018-19 163 3.2 EŠgMo§O _o§ ì`mnmaJV ã`mO Xa ì`wËnÞ {bIVo§ 3.2 Exchange Traded Interest Rate Derivatives (` H$amo‹S> _|/` in crores)

H«$.g§. Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 Sl. No. {ddaU 31st March, 2019 31st March, 2018 (i) df© Ho$ Xm¡amZ EŠgMo§O _o§ ì`mnmaJV ã`mO Xa ì`wËnÞ {bIVmo§ H$s AmZw_m{ZH _yb am{e Notional principal amount of exchange traded interest rate derivatives undertaken during the year - - (ii) ~H$m`m EŠgMo§O _| ì`mnmaJV ã`mO Xa ì`wËnÞ {bIVmo§ H$s AmZw_m{ZH _yb am{e Notional principal amount of exchange traded interest rate derivatives outstanding - - (iii) ~H$m`m na§Vw ""A{YH à^mdr'' Zht, Eogr EŠgMo§O _o§ ì`mnmaJV ã`mO Xa ì`wËnÞ {bIVmo§ H$s AmZw_m{ZH _yb am{e Notional principal amount of exchange traded interest rate derivatives outstanding and not “highly effective” - - (iv) ~H$m`m na§Vw ""A{YH à^mdr'' Zht, Eogr EŠgMo§O _o§ ì`mnmaJV ã`mO Xa ì`wËnÞ {bIVmo§ H$m ~mOma-H$mo-A§{H$V _yë` Mark-to-market value of exchange traded interest rate derivatives outstanding and not “highly effective” - -

3.3 ì`wËnÞ {bIVmo§ _o§ Omo{I_ EŠgnmo‹Oa na àH$QZ 3.3 Disclosure on Risk Exposure in Derivatives (i) JwUmË_H àH$QZ… (i) Qualitative Disclosure: H$) ~moS©> Ûmam AZw_mo{XV ~¢H$ H$s ì`wËnÞ Zr{V ~¢H$ H$mo H$mC§Q>a a) The Bank’s Derivative Policy as approved by the Board permits Bank to undertake deals in over- na VWm EŠgM|O _| ì`mnmaJV (B©Q>r) ã`mO Xa VWm H$a|gr the-counter (OTC) as well as exchange traded ì`wËnÞ {bIVm| Ho$ boZXoZ H$s AZw_{V XoVr h¡& `h Zr{V (ET) interest rate and currency derivatives. The J«mhH$m| H$mo {dXoer _wÐm {Zdoem| Ho$ à~§YZ Ho$ {bE CËnmXm| H$mo policy permits the offering of the products to the customer to manage their foreign currency àñVwV H$aZo, Omo A§Va ~¢H$ ~mµOma _| ~¡H$-Qw>-~¢H$ AmYma na exposures, which are to be covered on Back-to- Amd[aV hmoZo h¢, H$s AZw_{V XoVr h¡& ì`wËnÞm| H$mo ~¡H$ Ûmam Back basis in the interbank market. Derivatives ì`mnma VWm VwbZ nÌ _Xm| H$s Q´>oqS>J Am¡a hoqOJ Ho$ {bE can also be used by the Bank both for trading as well as hedging on-balance sheet items. In the à`wº$ {H$`m Om gH$Vm h¡& Mmby {dÎm df© _| ~¢H$ Ûmam dm`Xm current ﬁ nancial year, Bank has entered into d H$a|gr â`yMam| dmbo ì`wËnÞm| _| gm¡Xo {H$E& derivative deals involving forwards and currency I) ~¢H$ H$s AmpñV Xo`Vm à~§YZ g{_{V (AmëH$mo) BZ futures. OmopI_m| Ho$ à~§YZ H$s {ZJamZr H$aVr h¡& ~¢H$ H$m EH$sH¥$V b) The Asset Liability Management Committee (ALCO) of the Bank overseas management of these OmopI_ à~§YZ {d^mJ (AmB©AmaE_S>r) ñdV§Ì ê$n go risks. The Bank’s Integrated Risk Management ì`wËnÞ {bIV boZXoZm| g§~§Yr ~mµOma OmopI_ A{^{ZYm©[aV Department (IRMD), independently identiﬁ es, H$aVm h¡, Cgo _mnVm h¡, {ZJamZr H$aVm h¡ Am¡a BZ OmopI_m| measures and monitors market risk associated with derivative transactions, assists ALCO in Ho$ {Z`§ÌU d à~§YZ _| AmëH$mo H$s _XX H$aVm h¡ VWm controlling and managing these risks and reports {Z`{_V A§Vambm| _| ~moS©> H$s OmopI_ à~§YZ g{_{V H$mo compliance with policy prescriptions to the Risk Zr{VJV nam_em] Ho$ AZwnmbZ H$s [anmoQ>© XoVm h¡& Management Committee of the Board (RMCB) at regular intervals. J) ì`wËnÞ {bIV boZXoZ _| ~mµOmar OmopI_ h¡, AWm©V² ã`mO c) Derivative transactions carry market risk i.e. the Xam|/{d{Z_` Xam| _| à{VHy$b n[adV©Zm| Ho$ H$maU ~¢H$ H$mo probable loss the Bank may incur as a result of g§^mì` hm{Z VWm CYma OmopI_ h¡, AWm©V² `{X à{V nm{Q©>`m± adverse movements in interest rates / exchange AnZr dMZ~ÕVm H$m nmbZ Zht H$aVr h¢ Vmo ~¢H$ H$mo hmoZo rates and credit risk i.e. the probable loss the Bank may incur if the counterparties fail to meet dmbr g§^mì` hm{Z& ì`wËnÞ {bIV boZXoZ _| em{_b their obligations. The Bank’s “Derivative Policy” hmoZo Ho$ {bE _§S>b Ûmam AZw_mo{XV ~¢H$ H$s ""ì`wËnÞ approved by the Board prescribes the market risk {bIV Zr{V'' ~mµOma OmopI_ _mZXÊS> VWm J«mhH$ parameters as well as Customer Appropriateness policy for entering into derivative transactions. {d{Z`moOZ Zr{V {ZYm©[aV H$aVr h¡& Ho$db CZ à{Vnm{Q©>`m| Credit risk is controlled by entering into Ho$ gmW ì`wËnÞ {bIV boZXoZ _| em{_b hmoH$a CYma derivative transactions only with counterparties

164 OmopI_ {Z`§{ÌV H$s OmVr h¡, {OZH$mo dMZ~ÕVm Ho$ nmbZ in respect of whom appropriate credit limits are sanctioned taking into account their ability H$s j_Vm H$mo Ü`mZ _| aIVo hþE Cn`wº$ CYma gr_m _§Oya to honour obligations. The Bank enters into h¡& ~¢H$ àË`oH$ à{VnmQ>u Ho$ gmW A§Vam©ï´>r` ñd¡n S>rbg© International Swap Dealers Association (ISDA) Egmo{gEeZ (AmB©EgS>rE) H$ama H$aVm h¡& agreements with each counter party. K) C„oIZr` boIm§H$Z Zr{V _| C{„pIV ì`wËn{Þ`m| hoVw d) The accounting policy for derivatives as stated in Signiﬁ cant Accounting Policies, has been boIm§H$Z Zr{V ^maVr` [aµOd© ~¢H$ {Xem{ZX}em| Ho$ AZwê$n drawn-up in accordance with RBI guidelines and V¡`ma H$s JB© h¢ VWm amOñd VXZwgma {ZYm©[aV {H$E JE h¢& revenues are recognized accordingly. (ii) _mÌmË_H$ àH$Q>Z (ii) Quantitative Disclosures (` H$amo‹S> _|/` in crores) 31 ‘mM©, 2019 31 ‘mM©, 2018 H«$. 31st March, 2019 31st March, 2018 g§. {ddaU Particulars _wÐm ì`wËnÞ ã`mO Xa _wÐm ì`wËnÞ ã`mO Xa Sl. {bIVo§ ì`wËnÞ {bIV§o {bIVo§ ì`wËnÞ {bIVo§ No. Currency Interest rate Currency Interest rate Derivatives Derivatives Derivatives Derivatives 1 ì`wËnÞ {bIV§o (AmZw_m{ZH$ _ybYZ) Derivatives (Notional Principal Amount) H$) a) hoqOJ hoVw For hedging - - - - I) b) Q´>oqS>J hoVw For trading - - - - 2 ~mµOma H$mo A§{H$V pñW{V Marked to Market Positions H$) a) AmpñV`m± (+) Asset (+) - - - - I) b) Xo`VmE§ (-) Liability (–) - - - - 3 G$U EŠgnmoµOa Credit Exposure - - - - 4 AmB©AmaEgmo§ VWm grgrEgmo§ na ã`mO Xa _o§ EH à{VeV n[adV©Z hmoZo na g§^m{dV à^md (100* nrdr 01) Likely impact of one percentage change in interest rate on IRSs and CCSs (100*PV01) H$) a) hoqOJ ì`wËnÞ {bIVm| na on hedging derivatives - - - - I) b) Q´>oqS>J ì`wËnÞ {bIVm| na on trading derivatives - - - 5 AmB©AmaEgmo§ VWm grgrEgmo§ hoVw df© Ho$ Xm¡amZ Adbmo{H V 100* nrdr 01 H$m A{YH$V_ Am¡a Ý`yZV_ Maximum and Minimum of 100*PV01 observed during the year for IRSs and CCSs H$) a) hoqOJ na on hedging i) A{YH$V_ maximum - - - - ii) Ý`yZV_ minimum - - - - I) b) Q´>oqS>J na on trading i) A{YH$V_ maximum - - - - ii) Ý`yZV_ minimum - - - -

ANNUAL REPORT 2018-19 165 4.0 AmpñV JwUdÎmm 4. ASSET QUALITY 4.1 A{J«_ 4.1 ADVANCES a) In the case of unaudited branches, the classiﬁ cation H$) $J¡a boIm-nar{jV emImAm| Ho$ _m_bo _|, emIm à~§YH$m| of advances, as certiﬁ ed by the Branch Managers has Ûmam `Wm à_m{UV A{J«_m| H$m dJuH$aU g_m{dï> {H$`m been incorporated. J`m h¡&& b) During the year the Bank has made provision I) df© Ho$ Xm¡amZ ~¢H$ Zo EZnrE hoVw `12002.72 H$amo‹S> (JV df© for NPA of `12,002.72 crores (Previous Year `11,111.90 H$amo‹S>) H$m àmdYmZ {H$`m& ~¢H$ Zo J¡a-{ZînmXH$ `11,111.90 crores). The Bank has made required A{J«_m| hoVw ^maVr` [a‹Od© ~¢H$ Ho$ {Xem{ZX}em| Ho$ AZwgma provision cumulative for Non Performing Advances as at 31st March 2019 `13,525.38 crores (Previous ` `Wm 31 _mM©, 2019 H$mo 13525.38 H$amo‹S> (JV df© Year `7,929.68 crores) in the line with RBI `7929.68 H$amo‹S>) H$m g§M`r àmdYmZ {H$`m&& guidelines. 4.2 J¡a-{ZînmXH$ AmpñV`m± 4.2 Non-Performing Assets (` H$amo‹S> _|/` in crores) {ddaU 31 ‘mM©, 2019 31 ‘mM©, 2018 Particulars 31st March, 2019 31st March, 2018 (i) H$) {Zdb J¡a-{ZînmXH$ AmpñV`m± Net NPAs 6,926.64 14,077.02 I) J¡.{Z.Am. AZwnmV NPA Ratios i) gH$b A{J«_mo§ _o§ gH$b J¡.{Z.Am. Gross NPAs to Gross Advances 15.35% 17.35% ii) {Zdb A{J«_mo§ _o§ {Zdb J¡.{Z.Am. Net NPAs to Net Advances 5.71% 11.74% (ii) J¡a-{ZînmXH$ AmpñV`mo§ _| H$‘r-~‹TV (gH$b) Movement of NPAs (Gross) H$) AWeof a) Opening balance 22,213.44 17,045.22 I) df© Ho$ Xm¡amZ n[adY©Z b) Additions during the year 6,282.60 14,576.86 J) df© Ho$ Xm¡amZ H$_r c) Reductions during the year 7,727.36 9,408.64 K) B{Veof d) Closing balance 20,723.68 22,213.44 (iii) {Zdb J¡a-{ZînmXH$ AmpñV`m| _| H$‘r-~‹TV Movement of Net NPAs H$) AWeof a) Opening balance 14,077.02 11,692.18 I) df© Ho$ Xm¡amZ n[adY©Z b) Additions during the year -5,720.12 3,464.96 J) df© Ho$ Xm¡amZ H$_r c) Reductions during the year 1,430.26 1,080.12 K) B{Veof d) Closing balance 6,926.64 14,077.02 (iv) J¡a-{ZînmXH$ AmpñV`m| hoVw àmdYmZ H$s pñW{V (_mZH$ AmpñV`m| hoVw àmdYmZ H$mo N>mo‹S>H$a) Movement of provisions for NPAs (excluding provisions on standard assets) H$) AWeof a) Opening balance 7,929.68 5,188.34 I) df© Ho$ Xm¡amZ {H$`m J`m àmdYmZ b) Provisions made during the year 12,002.72 11,111.90

J) A{V[aŠV àmdYmZ H$m ~Q²>Q>o ImVo {bIZm/nwZam§H$Z, àË`md{V©V àmdYmZ 6,407.02 8,370.56 c) Write off / write back off excess provisions, provision reversed K) B{Veof d) Closing balance 13,525.38 7,929.68 (v) J¡a-{ZînmXH$ {Zdoem| H$s am{e Amount of Non-Performing Investments 934.69 860.73

166 4.3 EZnrE hoVw AmpñV dJuH$aU VWm àmdYmZrH$aU _| 4.3 Divergence in Asset Classiﬁ cation and Provisioning {dMbZ : for NPAs: ^m.[a.~¢. n[anÌ g§.Ama~rAmB©/2018-19/157 S>r~rAma.~rnr. Pursuant to RBI Circular no. RBI/2018-19/157 DBR. BP.BC.NO.32/21.04.018/2018-19 dated April 1, 2019 ~rgr.32/21.04.018/2018-19 {XZm§{H$V 1 Aà¡b, 2019 Ho$ ‘‘Divergence in the asset Classiﬁ cation and Provisioning”, AZwgaU _|, "AmpñV dJuH$aU VWm àmdYmZrH$aU _| {dMbZ', ~¢H$ the Bank has incorporated the disclosure prescribed as Zo {ZåZ{bpIV Ho$ AZwgma àH$Q>Z em{_b {H$`m h¡ : under: (` H$amo‹S> _|/` in crores)

H«$. g§. Particulars Amount Sl. No. {ddaU am{e 1 31 _mM©, 2018 H$mo gH$b EZnrE Gross NPAs as on March 31, 2018 22,213.44 2 ^m.[a.~¢. Ho$ _yë`m§H$Z Ho$ AZwgma 31_mM©, 2018 H$mo gH$b EZnrE Gross NPAs as on March 31, 2018 as assessed by RBI 22,595.04 3 gH$b EZnrE _| {dMbZ (2-1) Divergence in Gross NPAs (2-1) 381.60 4 31 _mM©, 2018 H$mo {Zdb EZnrE Net NPAs as on March 31, 2018 14,077.02 5 ^m.[a.~¢. Ho$ _yë`m§H$Z Ho$ AZwgma 31 _mM©, 2018 H$mo {Zdb EZnrE Net NPAs as on March 31, 2018 as assessed by RBI 13,836.82 6 {Zdb EZnrE _| {dMbZ (5-4) Divergence in Net NPAs (5-4) -240.20 7 ~¢H$ H$s [anmoQ©> Ho$ AZwgma 31_mM©, 2018 H$mo EZnrE hoVw àmdYmZ Provisions for NPAs as on March 31, 2018 as reported by the Bank 10,982.14 8 ^m.[a.~¢. Ho$ _yë`m§H$Z Ho$ AZwgma 31 _mM©, 2018 H$mo EZnrE hoVw àmdYmZ Provisions for NPAs as on March 31, 2018 as assessed by RBI 11,603.94 9 àmdYmZrH$aU _| {dMbZ (8-7) Divergence in provisioning (8-7) 621.80 10 31 _mM©, 2018 H$mo g_má df© hoVw [anmoQ©> H$s JB© H$a níMmV² {Zdb bm^ Reported Net Proﬁ t after Tax (PAT) for the year ended March 31, 2018 -4,053.94 11 àmdYmZrH$aU _| {dMbZ H$mo boZo Ho$ ~mX 31 _mM©, 2018 H$mo g_má df© hoVw H$a níMmV² g_m`mo{OV (AmZw_m{ZH$) {Zdb bm^/(hm{Z) Adjusted (Notional) Net Proﬁ t / (Loss) after Tax (PAT) for the year ended March 31, 2018 after taking into account the divergence in provisioning -4,510.15 4.4 Ama~rAmB© g§Mma S>r~rAma g§. ~rnr.8756/21.04.048 / 4.4 In terms of RBI communication DBR No. 2017-18 {XZm§H$ 2 Aà¡b, 2018 Ho$ g§X^© _|, 31 _mM©, 2019 BP.8756/21.04.048/2017-18 dated 2nd April, 2018, H$mo nmÌ EZgrEbQ>r (gyMr 1 Am¡a gyMr 2) ImVm| Ho$ g§~§Y _| `1011.99 crore has been additionally provided in respect `1,011.99 H$amo‹S> A{V[aº$ àXmZ {H$E JE h¢& nmÌ EZgrEbQ>r of eligible NCLT (List 1 & List 2) accounts as on 31st March 2019. Total actual provision made as on 31st (gyMr 1 Am¡a gyMr 2) ImVm| Ho$ {bE 31 _mM©, 2019 H$mo Hw$b March 2019 for the eligible NCLT (List 1 & List 2) ` dmñV{dH$ àmdYmZ 9079.56 H$amo‹S> h¡, Omo AmB©AmaEgr _mZX§S>m| accounts is `9079.56 crore, which represents 100% Ho$ AZwgma `8067.57 H$amo‹S> Ho$ ~Om` 31 _mM©, 2019 H$mo ~H$m`m of provision of the outstanding value as on March 31, _yë` Ho$ àmdYmZ H$m 100% H$m à{V{Z{YËd H$aVm h¡& AÝ` 22 2019, instead of `8067.57 crore as per IRAC norms. EZgrEbQ>r ImVm| Ho$ g§~§Y _| 31 _mM©, 2019 VH$ àXmZ {H$E With regard to the other 22 NCLT accounts an amount of JB© am{e `610.40 H$amo‹S> h¡& 31 _mM©, 2019 H$mo {H$E JE `610.40 crore further provided as on 31st March, 2019. Hw$b dmñV{dH$ àmdYmZ `937.29 H$amo‹S> Ho$ ~Om` `1547.69 Total actual provision made as on 31st March, 2019 is H$amo‹S> h¢& `1547.69 crore instead of `937.29 crore. An additional, adequate and necessary, provision ` 29 EZnrE ImVm| _| 1280.55 H$amo‹S> H$m EH$ A{V[aº$, n`m©á Am¡a of `1280.55 crore has been provided in 29 NPA Amdí`H$, àmdYmZ àXmZ {H$`m J`m h¢ & accounts.

ANNUAL REPORT 2018-19 167 ~¢H$ Zo _mZH$ go EZnrE loUr Ho$ {bE 4 CYma ImVm| Ho$ {bE S>mCZJ«oS> The bank has downgraded for 4 borrowal accounts from {H$`m h¡ Am¡a {ddoH$nyU© _mZX§S>m| Ho$ AZwgma `123.70 H$amo‹S> H$m standard to NPA category and accordingly made a provision àmdYmZ {H$`m h¡& of `123.70 crore as per prudential norms. 4.5 `Wm 31.03.2019 H$mo nwZgªa{MV ImVm| H$m àH$Q>Z : 4.5 Disclosure of Restructured Accounts as on 31.03.2019: (` H$amo‹S> _|/` in crores) H«$.g§. Type of Restructuring grS>rAma V§Ì Ho$ A§VJ©V EgE_B© H$O© nwZgªaMZm V§Ì Ho$ A§VJ©V AÝ` Hw$b Sl. nwZgªaMZm H$m àH ma Under CDR Mechanism Under SME Debt Restructuring Mechanism Others Total No. AmpñV dJuH$aU Asset Classifi cation _mZH$ Ad_mZH Ad_mZH Ad_mZH Adn_mZH Standard Sub g§{X½Y hm{Z Hw$b _mZH$ Sub g§{X½Y hm{Z Hw$b _mZH$ Sub g§{X½Y hm{Z Hw$b _mZH$ Sub g§{X½Y hm{Z Hw$b ã`moao Details Standard Doubtful Loss Total Standard Standard Doubtful Loss Total Standard Standard Doubtful Loss Total Standard Standard Doubtful Loss Total 1 {dÎm df© Ho$ 1 Aà¡b H$mo CYmaH$Vm©Am| H$s g§. 5 3 38 7 53 37 8 62 10 117 62 14 121 25 222 104 25 221 42 392 nwZgªa{MV ImVo (àma§{^H$ No. of borrowers Am§H$‹S>o)* 312.35 411.04 3780.03 323.67 4827.09 30.54 19.23 303.27 149.32 502.36 1062.79 936.63 3066.65 603.47 5669.54 1405.68 1366.90 7149.95 1076.46 10998.99 Restructured Accounts ~H$m¶m am{e as on April 1 of the FY Amount (opening fi gures)* outstanding Cgna àmdYmZ 9.68 0.00 0.00 0.00 9.68 0.84 0.00 0.00 0.00 0.84 74.95 0.00 0.00 0.00 74.95 85.47 0.00 0.00 0.00 85.47 Provision thereon 2 df© Ho$ Xm¡amZ ZB© nwZgªaMZm CYmaH$Vm©Am| H$s g§. 0 0 0 0 0 1203 0 0 0 1203 0 0 1 0 1 1203 0 1 0 1204 Fresh restructuring No. of borrowers during the year ~H$m¶m am{e 30.54 0.00 55.05 0.15 85.74 182.45 0.44 1.48 0.90 185.27 4.50 0.71 29.79 0.73 35.73 217.49 1.15 86.32 1.78 306.74 Amount outstanding Cgna àmdYmZ 0.00 0.00 0.00 0.00 0.00 0.03 0.00 0.00 0.00 0.03 0.31 0.00 0.00 0.00 0.31 0.34 0.00 0.00 0.00 0.34 Provision thereon 3 {dÎm df© Ho$ Xm¡amZ CYmaH$Vm©Am| H$s g§. 0 0 0 0 0 1 -1 0 0 0 4 -3 -1 0 0 5 -4 -1 0 0 nwZgªa{MV ‘mZH$ àdJ© No. of borrowers ‘| CÞ¶Z 0.00 0.00 0.00 0.00 0.00 6.02 -6.02 0.00 0.00 0.00 25.84 -25.76 -0.08 0.00 0.00 31.86 -31.78 -0.08 0.00 0.00 Upgradations to ~H$m¶m am{e restructured standard Amount category during the FY outstanding Cgna àmdYmZ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Provision thereon 4 {dÎm df© Ho A§V CYmaH$Vm©Am| H$s g§. -2 0 0 0 -2 -7 0 0 0 -7 -9 0 0 0 -9 -18 0 0 0 -18 _o§ nwZgªa{MV _mZH$ ImVo No. of borrowers {OZHo {bE A{YH$ ~H$m¶m am{e -63.54 0.00 -69.24 0.00 -132.78 -10.18 0.00 0.00 0.00 -10.18 -295.15 0.00 0.00 0.00 -295.15 -368.87 0.00 -69.24 0.00 -438.11 àmdYmZ µOê ar Zht Am¡a Amount Bg{bE g_m`moOZ g{hV outstanding AJbo {dÎm df© Ho àma§^ _o§ CÝho§ nwZgªa{MV Cgna àmdYmZ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 _mZH$ ImVmo§ Ho ê n Provision thereon _o§ Xem©Zo H$s Amdí`H$Vm Zht h¡ Restructured standard advances which cease to attract higher provisioning and / or additional risk weight at the end of the FY and hence need not be shown as restructured standard advances at the beginning of the next FY including adjustments 5 {dÎm df© Ho$ Xm¡amZ CYmaH$Vm©Am| H$s g§. 0 -3 1 2 0 -3 -4 4 3 0 -3 -9 4 8 0 -6 -16 9 13 0 nwZgªa{MV ImVm| H$s No. of borrowers S>mCZ J«oqS>J ~H$m¶m am{e 0.00 -407.37 291.93 115.44 0.00 -0.08 -13.51 -4.23 17.82 0.00 -205.99 -760.42 577.64 388.77 0.00 -206.07 -1181.30 865.34 522.03 0.00 Downgradations of Amount restructured accounts outstanding during the FY Cgna àmdYmZ -1.36 0.00 0.00 0.00 -1.36 -0.31 0.00 0.00 0.00 -0.31 -10.82 0.00 0.00 0.00 -10.82 -12.49 0.00 0.00 0.00 -12.49 Provision thereon 6 {dÎm df© Ho$ Xm¡amZ CYmaH$Vm©Am| H$s g§. 0 0 -1 0 -1 -4 0 -6 0 -10 -3 0 -9 -1 -13 -7 0 -16 -1 -24 nwZgªa{MV ImVm| H$mo ~Å>o No. of borrowers ImVo {bIZm* ~H$m¶m am{e -6.69 -3.67 -264.10 0.00 -274.46 -3.16 -0.06 -3.49 -0.12 -6.83 -101.19 -127.14 -96.10 -2.92 -327.35 -111.04 -130.87 -363.69 -3.04 -608.64 Write-offs of restructured Amount accounts during the FY outstanding Cgna àmdYmZ -3.50 0.00 0.00 0.00 -3.50 -0.52 0.00 0.00 0.00 -0.52 -11.97 0.00 0.00 0.00 -11.97 -15.99 0.00 0.00 0.00 -15.99 Provision thereon 7 {dÎm df© Ho$ 31 ‘mM© H$mo CYmaH$Vm©Am| H$s g§. 3 0 38 9 50 1227 3 60 13 1303 51 2 116 32 201 1281 5 214 54 1554 nwZgªa{MV ImVo (A§{V‘ No. of borrowers Am§H$‹S>o)* ~H$m¶m am{e 272.67 0.00 3793.66 439.26 4505.59 205.60 0.08 297.02 167.92 670.62 490.79 24.03 3577.90 990.05 5082.77 969.06 24.11 7668.58 1597.23 10258.98 Restructured Accounts as Amount on March 31 of the FY outstanding (closing fi gures*) Cgna àmdYmZ 4.82 0.00 0.00 0.00 4.82 0.03 0.00 0.00 0.00 0.03 52.48 0.00 0.00 0.00 52.48 57.33 0.00 0.00 0.00 57.33 Provision thereon * _mZH$ nwZgª©a{MV A{J«_m| Ho$ AmH$‹S>m| H$mo N>mo‹S>H$a {OgHo$ {bE A{YH$ àmdYmZ `m OmopI_ ^m[aVm Zht Mm{hE (`{X bmJy). (^m.[a.~§¡. n[anÌ DBOD.BP.BC.No.80/21.04.132/2012-13 {XZm§H$ 31-01-2013)/Excluding the gures of Standard Restructured Advances which do not attract higher provisioning or risk weight (if applicable). (RBI Circular DBOD.BP.BC.No.80/21.04.132/2012-13 dated 31-01-2013) {d.d. Ho$ Xm¡amZ ZB© nwZgªaMZm _o§ dV©_mZ nwZgªa{MV ImVmo§ _o§ ~H m`m _o§ `110.12 H$amo‹S H$s d¥{Õ ^r em{_b h¡& Fresh restructuring during the FY also includes the increase of `110.12 crores in outstanding in the existing restructured accounts {d.d. Ho$ Xm¡amZ nwZgªa{MV ImVmo§ H mo ~Åo ImVo SmbZo _o§ dV©_mZ nwZgªa{MV ImVmo§ _o§ ~H$m`m _o§ `548.90 H$amo‹S H$s d¥{Õ ^r em{_b h¡& Write-offs of restructured accounts during the FY also includes the decrease of `584.90 crores in outstanding balances in the existing restructured accounts. 168 4.6 AmpñV nwZ{Z©_m©U hoVw à{V^y{VH$aU/nwZ{Z©_m©U H§ nZr H$mo {~H«$s 4.6 Details of fi nancial assets sold to Securitization/ H$s JB© {dÎmr` AmpñV`mo§ Ho$ ã`moao : Reconstruction Company for Asset Reconstruction: (` H$amo‹S> _|/` in crores) A) H$)/ H«$. g§. Item 31 ‘mM©, 2019 31 ‘mM©, 2018 Sl. No. _X 31st March, 2019 31st March, 2018 (i) ImVm| H$s g§. No. of accounts - - (ii) Eggr/Amagr H$mo {~H«$s {H$E JE ImVm| H$m g_J« _yë` (àmdYmZm| H$m {Zdb) Aggregate value (net of provisions) of accounts sold to SC/RC - - (iii) g_J« à{V\$b Aggregate consideration - - (iv) {dJV dfm] _| A§V[aV ImVm| Ho$ g§~§Y _| dgyb {H$`m J`m A{V[aŠV à{V\$b Additional consideration realized in respect of accounts transferred in earlier years - - (v) {Zdb ~hr _yë` na g_J« bm^/(hm{Z) - - Aggregate gain / (Loss) over net book value

~¢H$m| H$mo AnZo EZnrE Ho$ g§~§Y _| C{MV _yë` dgybZo Ho$ {bE With a view to incentivizing banks to recover appropriate àmoËgm{hV H$aZo H$s Ñ{ï> go, ~¢H$ EZnrE H$s {~H«$s na A{V[aº$ value in respect of their NPAs promptly, banks can reverse the excess provision on sale of NPA if the sale is àmdYmZ H$mo aÔ H$a gH$Vo h¢, AJa {~H«$s AnZo bm^ Am¡a hm{Z ImVo for a value higher than the net book value (NBV) to its Ho$ {bE ewÕ ~hr _yë` (EZ~rdr) go A{YH$ _yë` Ho$ {bE h¡& {Og profi t and loss account in the year the amounts received. df© am{e àmá hþB©& EZnrE H$s {~H«$s Ho$ H$maU bm^ Am¡a hm{Z ImVo The quantum of excess provision reversed to the profi t Ho$ {bE dmng {H$E JE A{V[aº$ àmdYmZ H$s _mÌm H$m àH$Q>rH$aU and loss account on account of sale of NPAs should be disclosed in the fi nancial statements of the bank under ""ZmoQ²g Qy> EH$mC§Q²g'' Ho$ VhV ~¢H$ Ho$ {dÎmr` {ddaUm| _| {H$`m OmZm “Notes to Accounts”. Mm{hE& As on incentive for early sale of NPAs, bank can spread EZnrE H$s ewéAmVr {~H«$s Ho$ {bE àmoËgmhZ Ho$ ê$n _|, ~¢H$ {H$gr over any shortfall, if the sale value is lower than the NBV, ^r H$_r na H$ma©dmB© H$a gH$Vm h¡, AJa {~H«$s _yë` Xmo gmb H$s over a period of two years. This facility of spreading Ad{Y _| EZ~rdr go H$_ h¡& hmbm§{H$ Ny>Q> àXmZ H$aZo H$s `h gw{dYm over the shortfall would however be available for NPAs as per the Master Circular on Prudential norms on Am` nhMmZ, AmpñV dJuH$aU Ed§ G U hoVw àmdYmZmo§ na _mZH$ Income Recognition, Assets Classifi cation and Provision {Z`_m| Ho$ _mñQ>a n[anÌ Ho$ AZwgma 31 _mM©, 2016 VH$ ~oMo JE pertaining to advances, in respect of NPA sold before EZnrE Ho$ {bE CnbãY hmoJr Am¡a ""ZmoQ²g Qy> AH$mC§Q>'' _| Amdí`H$ 31st March, 2016, and will be subject to necessary àH$Q>rH$aU Ho$ AYrZ hmoJr& disclosures in the “Notes to Account”. I) à{V^y{V agrXmo§ _o§ {Zdoemo§ Ho ~hr _yë` Ho ã`moao: B) Details of Book value of Investments in Security Receipts: (` H$amo‹S> _|/` in crores)

Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 {ddaU 31st March, 2019 31st March, 2018 (i) A§V{Z©{hV Ho$ ê n _o§ ~¢H Ûmam {~H«$s H$s JB© EZnrE Ûmam g_{W©V à{V^y{V`m± 139.63 139.63 Backed by NPAs sold by the Bank as underlying securities (ii) A§V{Z©{hV Ho$ ê n _o§ AÝ` ~¢H$m|/{dÎmr` g§ñWmAmo§/J¡a-~¢qH$J {dÎmr` H§$n{Z`mo§ Ûmam {~H«$s - - H$s JB© EZnrE Ûmam g_{W©V à{V^y{V`m± Backed by NPAs sold by other banks/ﬁ nancial institutions/non-banking ﬁ nancial companies as underlying securities Hw$b/Total 139.63 139.63

ANNUAL REPORT 2018-19 169 4.7 IarXr/{~H«$s H$s JB© J¡a-{ZînmXH {dÎmr` AmpñV`mo§ Ho 4.7 Details of non-performing ﬁ nancial assets purchased/ {ddaU: sold: H) IarXr JB© J¡a-{ZînmXH {dÎmr` AmpñV`mo§ Ho A. Details of non-performing ﬁ nancial assets {ddaU… purchased: (` H$amo‹S> _|/` in crores)

H«$. g§. Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 Sl. No. {ddaU 31st March, 2019 31st March, 2018 1. (H$) df© Ho$ Xm¡amZ IarXo JE ImVm| H$s g§. (a) No. of accounts purchased during the year - - (I) g‘J« ~H$m`m (b) Aggregate outstanding - - 2. (H$) BZ_| go, df© Ho$ Xm¡amZ nwZgªa{MV ImVm| H$s g§. (a) Of these, number of accounts restructured during the year - - (I) g_J« ~H$m`m (b) Aggregate outstanding - -

I) {~H«$s H$s JB© J¡a-{ZînmXH$ {dÎmr` AmpñV`m| Ho$ {ddaU… B. Details of non-performing ﬁ nancial assets sold (` H$amo‹S> _|/` in crores)

H«$.g§. Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 Sl. No. {ddaU 31st March, 2019 31st March, 2018 1. {~H«$s {H$E JE ImVm| H$s g§. No. of accounts sold - - 2. g_J« ~H$m`m (àmdYmZ H$m {Zdb) Aggregate outstanding (Net of Provision) - - 3. àmá g_J« à{V\$b Aggregate consideration received - - 4.8 _mZH$ AmpñV`mo§ na àmdYmZ 4.8 Provision on Standard Assets (` H$amo‹S> _|/` in crores)

Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 {ddaU 31st March, 2019 31st March, 2018 _mZH$ AmpñV`m| hoVw àmdYmZ Provision on Standard Assets 740.24 559.71

4.9 31 _mM© 2019 H mo X~mdJŒñV AmpñV`mo§ H$s YmaUr` g§aMZm 4.9 Disclosures on the Scheme for Sustainable Structuring of Stressed Assets (S4A), as on 31st March, 2019 (Eg4E) hoVw `moOZm na àH QZ (` H$amo‹S> _|/` in crores) ~H$m`m am{e ImVmo§ H$s g§»`m Ohm± Eg4E bmJy {H$`m J`m h¡& ImVmo§ H$s Hw$b ~H$m`m am{e Amount outstanding No. of accounts where S4A has been ap- g§»`m Aggregate amount Ym[aV àmdYmZ plied No. of outstanding * ^mJ H$ _| ^mJ I _| Provision Held accounts In Part A In Part B _mZH Ho$ ê n _o§ dJuH¥$V Classiﬁ ed as Standard 1 74.52 36.20 38.32 15.33 EZnrE Ho$ ê n _o§ dJuH¥$V Classiﬁ ed as NPA 0 0 0 0 0

170 4.10 31 _mM©, 2019 H$mo dV©_mZ G$Umo§ Ho bMrbo g§aMZm na 4.10 Disclosures on Flexible Structuring of Existing Loans as on 31st March, 2019 àH$QZ (` H$amo‹S> _|/` in crores) bMrbr g§aMZm hoVw {bE JE bMrbr g§aMZm hoVw {bE JE G Um| H$m Omo{I_ ^m[aV G Um| H$s am{e Am¡gV Ad{Y Amount of loans taken up Exposure weighted average duration of loans bMrbr g§aMZm hoVw {bE JE for fl exible structuring taken up for fl exible structuring Ad{Y CYmaH$Vm©Am| H$s g§»`m Period No. of borrowers taken up _mZH$ Ho$ EZnrE Ho$ bMrbr g§aMZm bmJy bMrbr g§aMZm bmJy H$aZo for fl exibly structuring ê$n _| H$aZo go nhbo (_mh _|) ê$n _| dJuH¥$V Before applying Ho$ ~mX (_mh _|) Classifi ed as dJuH¥$V After applying fl exible Classifi ed as fl exible structuring Standard structuring (in months) NPA (in months) 2016-17* 21 1398.08 2376.61 87 224 2017-18* 5 387.20 162.30 129 269 2018-19 0 0 0 0 0 * 31.03.2019 H$mo g^r CYma ImVm| hoVw am{e ~H$m`m * Balance outstanding as on 31.03.2019 for all the borrowal accounts 4.11 31 _mM©, 2019 H mo aUZr{VnaH G$U nwZgªaMZm `moOZm (ImVo 4.11 Disclosures on Strategic Debt Restructuring Scheme Omo dV©_mZ _o§ `WmdV pñW{V _o§ h¢) na àH QZ (accounts which are currently under the stand-still period) as on 31st March, 2019 (` H$amo‹S> _|/` in crores) CZ ImVmo§ hoVw [anmo{Q>ªJ {XZm§H H$moo ~H$m`m CZ ImVmo§ hoVw [anmo{Q>ªJ {XZm§H H$mo ~H$m`m am{e Ohm± G$U go B©{¹$Q>r H$m n[adV©Z am{e Ohm± G$U go B©{¹$Q>r H$m n[adV©Z [anmo{Q>ªJ {XZm§H H$moo ~H$m`m am{e b§{~V h¡ {H$`m J`m h¡ ImVmo§ H$s g§»`m Amount outstanding as on the Amount outstanding as on the Amount outstanding as on the Ohm± EgS>rAma reporting date reporting date with respect to reporting date with respect to bmJy {H$`m J`m h¡& accounts where conversion of debt accounts where conversion of debt No. of accounts to equity is pending to equity has taken place where SDR has been invoked _mZH Ho$ ê n _o§ EZnrE Ho$ ê n _o§ _mZH Ho$ ê n _o§ EZnrE Ho$ ê n _o§ _mZH Ho$ ê n _o§ EZnrE Ho$ ê n _o§ dJuH¥$V dJuH¥$V dJuH¥$V dJuH¥$V dJuH¥$V dJuH¥$V Classifi ed as Classifi ed as Classifi ed as Classifi ed as Classifi ed as Classifi ed as standard NPA standard NPA standard NPA – – – – – – – 4.12 31 _mM©, 2019 H$mo EgSrAma go ~mha ñdm{_Ëd _o§ n{adV©Z 4.12 Disclosures on Change in Ownership outside SDR Scheme (accounts which are currently under the `moOZm (ImVo Omo dV©_mZ _o§ `WmdV pñW{V _o§ h¢) na àH$QZ stand-still period) as on 31st March, 2019 (` H$amo‹S> _|/` in crores) CZ ImVmo§ hoVw [anmo{Q>ªJ {XZm§H ImVmo§ H$s g§»`m Ohm± CZ ImVmo§ hoVw [anmo{Q>ªJ {XZm§H CZ ImVmo§ hoVw [anmo{Q>ªJ {XZm§H H$moo ~H$m`m am{e Ohm± H$moo ~H$m`m am{e Ohm± G$U go H$moo ~H$m`m am{e Ohm± G$U go {ZåZ{b{IV Ûmam ñdm{_Ëd _o§ ~¢H$ Zo bmJy H$aZo H$m Amount outstanding as Amount outstanding as n[adV©Z n[aH$pënV h¡ {ZU©` {b`m h¡& on the reporting date with on the reporting date with Amount outstanding as No. of accounts respect to accounts where respect to accounts where on the reporting date with where banks have [anmo{Q>ªJ {XZm§H H$moo ~H$m`m conversion of decided to effect am{e conversion of respect to accounts where Amount outstanding as on debt to debt to change in ownership is the reporting date envisaged by B©pŠdQ>r/B©pŠdQ>r eoàm| H$s B©pŠdQ>r/B©pŠdQ>r eoàm| H$s ZE eàmo| H$m {ZJ©_ `m àdV©H$m| ñdm{_Ëd _o§ n[adV©Z ~§YH$ {H$`m OmZm b§{~V h¡ ~§YH$ {H$`m J`m h¡ Ho$ B©pŠdQ>r H$s {~H«$s change in Equity/invocation of Equity/invocation of Issuance of fresh shares or ownership pledge of pledge of equity shares has sale of equity shares is pending taken place promoters equity _mZH Ho$ ê n EZnrE Ho$ ê n _mZH Ho$ ê n EZnrE Ho$ ê n _mZH Ho$ ê n EZnrE Ho$ ê n _mZH Ho$ ê n EZnrE Ho$ ê n _o§ dJuH¥$V _o§ dJuH¥$V _o§ dJuH¥$V _o§ dJuH¥$V _o§ dJuH¥$V _o§ dJuH¥$V _o§ dJuH¥$V _o§ dJuH¥$V Classifi ed Classifi ed Classifi ed Classifi ed Classifi ed Classifi ed Classifi ed Classifi ed as standard as NPA as standard as NPA as standard as NPA as standard as NPA ------

ANNUAL REPORT 2018-19 171 4.13 31 _mM©, 2019 H$mo H$m`m©Ýd`Z Ho VhV n{a`moOZmAmo§ Ho 4.13 Disclosures on Change in Ownership of Projects ñdm{_Ëd _o§ n{adV©Z na àH$QZ (ImVo Omo dV©_mZ _o§ `WmdV Under Implementation (accounts which are currently under the stand-still period) as on 31st March, 2019 pñW{V _o§ h¢) (` H$amo‹S> _|/` in crores) n[a`moOZm G$U ImVmo§ H$s g§»`m Ohm± ~¢H Zo ñdm{_Ëd [anmo{Q>ªJ {XZm§H H$mo ~H$m`m am{e Amount outstanding as on the reporting date No. of project n[ad{V©V H$aZo H$m {ZU©` {b`m h¡ _mZH Ho$ ê n _o§ dJuH¥$V nwZgªa{MV _mZH Ho$ ê n EZnrE Ho$ ê n _o§ dJuH¥$V loan accounts where banks have decided to effect _o§ dJuH¥$V Classifi ed as change in ownership Classifi ed as standard standard restructured Classifi ed as NPA - - - - 5.0 H$mamo~ma AZwnmV… 5.0 BUSINESS RATIOS H«$.g§. {ddaU 31 ‘mM©, 2019 31 ‘mM©, 2018 Sl. No. Particulars 31st March, 2019 31st March, 2018 (i) Am¡gV H$m`©erb {Z{Y`mo§ _o§ ã`mO Am` H$m % Interest Income as a % to average Working Funds 7.74% 7.24% (ii) Am¡gV H$m¶©erb {Z{Y¶m| ‘| ã¶mOoVa Am¶ H$m % Non-Interest Income as a % to average Working Funds 0.93% 0.95% (iii) Am¡gV H$m`©erb {Z{Y`mo§ _o§ n[aMmbZ bm^ % Operating Profi t as a % to average Working Funds 1.93% 1.62% (iv) AmpñV`mo§ na à{Vbm^ Return on Assets -3.14% -1.67% (v) à{V H$‘©Mmar H$mamo~ma (O_mam{e`m± Am¡a A{J«_) (` H$amo‹Sm|> _o§) Business (deposits plus advances) per employee (` in crores) 17.20 16.63 (vi) à{V H$‘©©Mmar bm^ (` H$amo‹Sm|> _o§) Profi t per employee (` in crores) -0.36 -0.22 ZmoQ… Am¡gV H$m`©H$mar {Z{Y {dÎmr` df© Ho 12 _hrZmo§ Ho Xm¡amZ ^m.{a.~¢. H$mo {anmoQ© H$s JB© H$wb AmpñV`mo§ H$m Am¡gV h¡& Note : Average working funds represent average of total assets as reported to RBI during 12 months of the fi nancial year. 6. AmpñV Xo`Vm à~§YZ 6. ASSET LIABILITY MANAGEMENT 31 _mM© 2019 H$mo AmpñV`mo§ VWm Xo`VmAmo§ H$m n{an¹$Vm n¡QZ©… Maturity pattern of Assets and Liabilities as at March 31, 2019 (` H$amo‹S> _|/` in crores)

15-30 1 31 {XZ - 2 _mh go 3 _mh go 6 _mh go df© go 3 df© go 5 df© go H«$.g§. Particulars 1 {XZ 2-7 {XZ 8-14 {XZ {XZ A{YH$ 3 A{YH$ 6 A{YH$ - A{YH$ - A{YH$ - Hw$b Sl. No. {ddaU Day 1 2-7 Days 8-14 Days 15-30 2 _mh _mh VH$ _mh VH$ 1 df© VH$ 3 df© VH$ 5 df© VH$ A{YH$ Total Days 31D-2M >2M-3M >3M-6M >6M-1Y >1Y-3Y >3Y-5Y >5Yrs i) {Zdb G$U d A{J«‘ Net Loans & Advances 2,523.15 3,911.14 2,947.07 10,030.70 4,038.97 4,743.17 4,008.70 9,049.22 55,784.55 12,796.43 11,418.11 121,251.21

ii) {Zdoe Investments 10,425.80 1,952.58 1,016.26 726.70 1,792.17 979.14 2,956.55 4,309.18 6,437.63 2,259.04 27,124.15 59,979.20 iii) O_mam{e`m± Deposits 1,997.39 3,145.49 4,538.15 2,797.92 6,202.79 4,701.21 15,802.56 25,914.92 35,836.32 9,075.18 74,555.91 184,567.84 iv) CYma Borrowings - 4,706.06 - - 4.21 503.00 503.16 43.51 21.51 12.80 2,600.00 8,394.25 v) {dXoer _wÐm AmpñV`m± Foreign Currency Assets 362.47 2,685.04 28.44 152.59 313.49 324.66 200.89 0.97 - - - 4,068.55 vi) {dXoer _wÐm Xo`VmE± Foreign Currency Liabilities 191.95 58.51 31.46 63.70 60.27 176.65 152.37 374.17 383.37 244.67 - 1,737.12

172 31 _mM©, 2018 H$mo AmpñV`mo§ Ed§ Xo`VmAmo§ H$m n[an¹Vm n¡QZ© Maturity pattern of Assets and Liabilities as at March 31, 2018 (` H$amo‹S> _|/` in crores) 15-30 1 31 {XZ - 2 _mh go 3 _mh go 6 _mh go df© go 3 df© go 5 df© go H«$.g§. Particulars 1 {XZ 2-7 {XZ 8-14 {XZ {XZ A{YH$ 3 A{YH$ 6 A{YH$ - A{YH$ - A{YH$ - Hw$b Sl. No. {ddaU Day 1 2-7 Days 8-14 Days 15-30 2 _mh _mh VH$ _mh VH$ 1 df© VH$ 3 df© VH$ 5 df© VH$ A{YH$ Total Days 31D-2M >2M-3M >3M-6M >6M-1Y >1Y-3Y >3Y-5Y >5Yrs i) {Zdb G$U d A{J«‘ Net Loans & Advances 3,882.69 2,438.41 2,123.69 5,122.94 5,479.65 4,216.16 3,519.25 5,792.90 54,932.73 14,769.90 17,590.52 119,868.84 ii) {Zdoe Investments 22,362.64 3,907.00 796.15 1,174.69 2,167.06 3,953.55 3,814.26 4,577.61 8,583.14 2,372.73 16,640.93 70,349.76 iii) O_mam{e`m± Deposits 1,838.36 5,102.27 2,855.76 5,117.71 6,873.93 7,225.75 18,211.37 21,282.04 37,241.86 7,180.90 70,386.00 183,315.95 iv) CYma Borrowings 5.32 15,226.02 - - 14.21 - 10.53 445.26 1,546.54 1,320.80 3,602.40 22,171.08 v) {dXoer _wÐm AmpñV`m± Foreign Currency Assets 548.21 56.97 76.27 140.05 285.87 488.12 426.56 1.70 76.99 - 0.07 2,100.81 vi) {dXoer _wÐm Xo`VmE± Foreign Currency Liabilities 179.42 10.41 9.95 38.21 52.72 203.07 56.64 576.27 530.86 93.13 - 1,750.68 7.0 EŠgnmoµOa 7.0 EXPOSURES 7.1 ñWmda g§nXm joÌ H$mo EŠgnmoµOa 7.1 Exposure to Real Estate Sector (` H$amo‹S> _|/` in crores) H«$.g§. 31 ‘mM©, 2019 31 ‘mM©, 2018 Sl. No. loUr Category 31st March, 2019 31st March, 2018 H$) a) àË`j EŠgnmo‹Oa Direct Exposure i) Amdmgr` ~§YH$-Residential Mortgages – Eogr Amdmgr` g§n{Îm na ~§YH Ûmam nyU©V… à{V^yV CYma Ohm± CYmaH$Vm©© ahVm h¡ `m ahoJm `m ^m‹S>o na {X`m h¡; / Lending fully secured by mortgages on residential property that is or will be occupied by the borrower or that is rented; 13,473.59 14,244.29 ({Og_| go, àmW{‘H$Vm-àmá joÌ ‘| em{‘b H$aZo hoVw nmÌ d¡`pŠVH$ Amdmg F$U) (of which, Individual housing loans eligible for inclusion in priority Sector) (7,100.89) (7,802.57) ii) dm{UpÁ`H$ ñWmda g§nXm - Commercial Real Estate – dm{UpÁ`H$ ñWmda g§nXm (H$m`m©b` ^dZ, IwXam ñWmZ, ~hw-CÔoer` dm{UpÁ`H$ n[aga, ~hw-n[admar` Amdmgr` ^dZ, ~hw-{H$amEXmar dm{UpÁ`H$ n[aga, Am¡Úmo{JH$ `m JmoXm_ ñWmZ, hmoQb, ^y{_ A{YJŒhU, {dH mg Ed§ {Z_m©U Am{X) na ~§YH$ Ûmam à{V^yV CYma& EŠgnmoµOa _o§ J¡a-{Z{Y AmYm[aV gr_mE§ (EZE\ ~r) ^r em{_b/Lending secured by mortgages on commercial real estates (ofﬁ ce buildings, retail space, multi-purpose commercial premises, multi- family residential buildings, multi-tenanted commercial premises, industrial or warehouse space, hotels, land acquisition, development and construction, etc.). Exposure also includes non-fund based (NFB) limits 2,660.32 5,015.91 ({OZ_| go, [ahmBer Amdmg hoVw dm{UpÁ`H$ ñWmda g§nXm) (of which, commercial Real Estate to Residential Housing) (1,028.94) (1,417.14) iii) ~§YH$ g_{W©V à{V^y{V`m| (E_~rEg) _| {Zdoe VWm AÝ` à{V^y{VJV {dÎm EŠgnmo‹Oa - Investments in Mortgage Backed Securities (MBS) and other securitized exposures – H$) Amdmgr` a) Residential 164.90 328.23 I) dm{UpÁ`H$ ñWmda g§nXm b) Commercial Real Estate - - I) b) AàË`j EŠgnmoµOa Indirect Exposure amîQ—r` Amdmg ~¢H$ (EZEM~r) VWm Amdmg {dÎm H§$n{Z`mo§ (EME’$gr) na {Z{Y AmYm[aV Ed§ J¡a-{Z{Y AmYm[aV EŠgnmoµOa, ñQoQ hmCqgJ ~moSmoª VWm H$mnmo©aoeZmo§ g{hV Fund based and non-fund based exposures on National Housing Bank (NHB) and Housing Finance Companies (HFCs) including State Housing Boards and Corporations 5,790.09 1,801.15 ñWmda g§nXm joÌ _| Hw$b EŠgnmoµOa Total Exposure to Real Estate Sector 22,088.90 21,389.58

ANNUAL REPORT 2018-19 173 7.2 ny±Or ~mOma _o§ EŠgnmo‹Oa 7.2 Exposure to Capital Market (` H$amo‹S> _|/` in crores) H«$.g§. Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 Sl. No. {ddaU 31st March, 2019 31st March, 2018 [i] B©p¹Qr eoàmo§, n{adV©Zr` ~m±Smo§, n{adV©Zr` {S~o§Mamo§ VWm B©p¹Qr CÝ_wI å`yMwAb \§ Smo§ H$s `y{ZQmo§ _o§ àË`j 1,146.89 1,177.90 {Zdoe {OZH$s _yb {Z{Y {deof ên go H$mnmo©aoQ G$U _o§ {Zdoe Zht H$r JB© h¡;*** Direct investment in equity shares, convertible bonds, convertible debentures and units of equity-oriented mutual funds the corpus of which is not exclusively invested in corporate debt*** [ii] eoàmo§/~m±Smo§/{S~o§Mamo§ `m AÝ` à{V^y{V`mo§ na A{JŒ_ `m eoàmo§ (AmB©nrAmo/B©EgAmonr g{hV), n[adV©Zr` 0.21 0.15 ~m±Smo§, n[adV©Zr` {S~o§Mamo§ VWm B©pŠdQr CÝ_wI å`yMwAb \§ Smo§ H$s `y{ZQmo§ _o§ {Zdoe hoVw ì`{º `mo§ H$mo ~oO_mZVr AmYma na A{JŒ_; Advances against share/bonds/debentures or other securities or on clean basis to individuals for investment in shares [including IPOs/ESOPs], convertible bonds, convertible debentures and units of equity-oriented mutual funds; [iii] {H$gr AÝ` CÔoí`mo§ hoVw A{JŒ_ Ohm± eoàmo§ `m n[adV©Zr` ~m±Smo§ `m n[adV©Zr` {S~o§Mamo§ `m B©pŠdQr CÝ_wI 0.03 0.13 å`yMwAb \§ Smo§ H$s `y{ZQmo§ H mo àmW{_H$ à{V^y{V Ho ê n _o§ {b`m OmVm h¡; Advances for any other purposes where shares or convertible bonds or convertible debentures or units or equity oriented mutual funds are taken as primary security; [iv] {H gr AÝ` CÔoí`mo§ hoVw Cg gr_m VH$ A{JŒ_ Omo eoàmo§ `m n[adV©Zr` ~m±Smo§ `m n[adV©Zr` {S~o§Mamo§ `m 224.03 224.23 B©pŠdQr CÝ_wI å`yMwAb \§ Smo§ H$s `y{ZQmo§ H$s g§nm{œ©H$ à{V^y{V Ûmam a{jV h¡ AWm©V², Ohm± eoàmo§/n[adV©Zr` ~m±Smo§/n[adV©Zr` {S~o§Mamo§/B©pŠdQr CÝ_wI å`yMwAb \§ Smo§ H$s `y{ZQmo§ Ho Abmdm àmW{_H$ à{V^y{V/A{JŒ_mo§ H mo nyU©V… a{jV Zht H$aVo h¢ ; Advances for any other purposes to the extent secured by the collateral security of shares or convertible bonds or convertible debentures or units of equity oriented mutual funds, i.e., where the primary security other than shares/convertible bonds/convertible debentures/ units of equity oriented mutual funds does not fully cover the advances; [v] eoà Xbmbmo§ H mo O_mZVr VWm J¡a-O_mZVr A{JŒ_ VWm eoà Xbmbmo§ VWm ~mOma {d{Z_m©VmAmo§ H$s Amoa go 0.35 0.64 Omar Jma§{Q`m±; Secured and unsecured advances to stock brokers and guarantees issued on behalf of stockbrokers and market makers; [vi] eoàmo§/~m±Smo§/{S~o§Mamo§ `m AÝ` à{V^y{V`mo§ H$s à{V^y{V na `m ~‹TVo g§gmYZmo§ H$s àË`mem _o§ ZB© H§ n{Z`mo§ - - H$s B©pŠdQr _o§ àdV©H$ Ho `moJXmZ H mo nyam H aZo hoVw ~oO_mZVr AmYma na H mnmo©aoQmo§ hoVw _§Oya {H$E JE G$U; Loans sanctioned to corporates against the security of shares/bonds/debentures or other securities or on clean basis for meeting promoter’s contribution to the equity of new companies in anticipation of raising resources; [vii] àË`m{eV B©pŠdQr àdmh/{ZJ©_ na H§ n{Z`mo§ H mo VmËH m{bH$ G$U; - - Bridge loans to companies against expected equity fl ows/issues; [viii] eoàmo§ `m n[adV©Zr` ~m±Smo§ `m n[adV©Zr` {S~o§Mamo§ `m B©pŠdQr CÝ_wI å`yMwAb \§ Smo§ H$s `y{ZQmo§ H$s àmW{_H$ - - {ZJ©_ hoVw ~¢H$mo§ Ûmam br JB© hm_rXmar à{V~ÕVmE±; Underwriting commitments taken up by the banks in respect of primary issue of shares or convertible bonds or convertible debentures or units of equity oriented mutual funds; [ix] _m{O©Z ì`mnma hoVw eoà Xbmbmo§ H mo {dÎm àXmZ H$aZm; 1.75 2.25 (Omar ~¢H$ Jma§{Q`m±) Financing to stockbrokers for margin trading [Bank Guarantees issued] [x] CÚ_ ny±Or {Z{Y (n§OrH¥ V VWm J¡a-n§OrH¥ V XmoZmo§) H$mo g^r Omo{I_ 126.25 136.97 All exposures to Venture Capital Funds (both registered and unregistered) ny±Or ~mOma _o§ Hw b EŠgno‹Oa Total Exposure to Capital Market 1,499.51 1,542.27 *** Bg_o§ grSrAma/EgSrAma/Eg4E `moOZmAmo§ Ho VhV G$U H$mo B©p¹Qr _o§ n{ad{V©V H$aZo Ho H$maU `918.53 H$amo‹S (JV df© `899.37 H$amo‹S) {Zdoe VWm `107.70 H$amo‹S (JV df© `107.70 H$amo‹S) H$m aUZr{VnaH$/gpãgSoar {Zdoe, {OÝho§ 20% H$s gr_m go NyQ àmßV h¡, em{_b h¢& *** includes investments of `918.53 crores (Previous year `899.37 crores) on account of conversion of debt into equity under CDR/ SDR/S4A schemes and `107.70 crores (previous year `107.70 crores) as strategic/Subsidiary investments both of which are exempted from 20% ceiling.

174 7.3 Omo{I_ àdJ© dma Xoer EŠgnmoµOa 7.3 Risk Category wise Country Exposure {Z`m©V G$U Jma§Qr H mnmo©aoeZ (B©grOrgr) Ûmam àXÎm XoeJV G$U Omo{I_ The following are the bank’s country wise net risk exposure based on the Country risk classifi cation dJr©H$aU Ho AmYma na ~¢H Ho Xoe dma {Zdb Omo{I_ EŠgnmoµOa provided by the Export Credit Guarantee Corporation {ZåZ{b{IV h¡& (ECGC). (` H$amo‹S _o§/` in crores) 31 _mM©, 2019 H$mo 31 _mM©, 2019 H$mo 31 _mM©, 2018 H$mo 31 _mM©, 2018 H$mo H«$.g§. Omo{I_ loUr EŠgnmo‹Oa ({Zdb) Ym[aV àmdYmZ EŠgnmo‹Oa ({Zdb) Ym[aV àmdYmZ Sl. No. Risk Category Exposure (net) as at Provision held as at Exposure (net) as at Provision held as at March 31, 2019 March 31, 2019 March 31, 2018 March 31, 2018 i) ZJÊ` Insignifi cant 3975.68 - 966.98 - ii) {ZåZ Low 839.34 - 520.40 - iii) _Ü`_ Moderate 12.69 - 17.94 - iv) CÀM High 9.92 - 9.44 - v) AË`{YH Very High 6.58 - 4.19 - vi) à{V~§{YV Restricted - - 0.00 - vii) G$UoVa Off Credit - - - - `moJ Total 4,844.21 - 1,518.95 - 7.4 ~¢H$ Ûmam EH$b CYmaH$Vm© gr_m (Eg~rEb), JŒwn CYmaH$Vm© 7.4 Details of Single Borrower Limit (SBL), Group gr_m (Or~rEb) go A{YH$ àXÎm G$U Ho {ddaU Borrower Limit (GBL) exceeded by the Bank During the year ended March 31, 2019, the Bank has ~¢H Zo 31 _mM©, 2019 H$mo g_mßV df© Ho Xm¡amZ {ZåZdV d¡`{º H exceeded the exposure ceiling fi xed by RBI to Individual CYmaH$Vmª/JŒwn hoVw ^maVr` [aµOd© ~¢H Ûmam {ZYm©[aV ~¢H Ho ny§Or borrower/Group in the following cases, which have been {Z{Y`mo§ Ho à{VeV H$s EŠgnmoµOa A{YH$V_ gr_m H$mo nma {H$`m h¡, approved by the Board. {Ogo {ZXoeH _§Sb Ûmam AZw_mo{XV {H$`m J`m h¡& (` H$amo‹S _o§/` in crores) H«$.g§. n±yOrJV {Z{Y Ho$ à{VeV Ho$ Sl. No. JŒmhH$ H$m Zm_ df© Ho Xm¡amZ A{YH$V_ EŠgnmoOa ê$n _| EŠgnmoOa Name of the Client Maximum Exposure during the year Exposure as a percentage of Capital Funds H$. EH$b CYmaH$Vm©/A. Single Borrower 1 ^maVr` ImÚ {ZJ_/Food Corporation of India 2426.00 18.82% 2 Amdmg {dH$mg {dÎm H$mnmo©aoeZ {b. 2426.00 18.82% Housing Development Finance Corporation Ltd. 3 EbAmB©gr Amdmg {dÎm {b. LIC Housing Finance Ltd. 2320.00 17.99% I. g_yh CYmaH$Vm© / B. Group Borrower eyÝ`/ Nil J. Ama~rAmB© Ûmam Bg CÔoí` Ho$ {bE {ZYm©[aV g§^m{dV EŠgnmoµOa gr_mE± {ZåZmZwgma h¢:/C. Prudential Exposure limits for this purpose fi xed by the RBI are as under: ì`pŠVJV CYmaH$Vm© Individual g_yh CYmaH$Vm© Borrower Group Borrower H$] /A] Vob ~m§S OmarH$Vm© Vob H§ n{Z`mo§ H$mo NmoSH$a Other than oil companies who have been issued oil bonds _yb/Basic 15% 40% BÝ\Œ mñQ—ŠMa Ho Abmdm /Additional for Infrastructure 5% 10% VwbZ nÌ àH$QZ Ho gmW, AgmYmaU n[apñW{V`mo§ Ho VhV A{V[aº 5% 5% Additional under exceptional circumstances with Balance Sheet disclosures I] B] Vob ~m§S OmarH$Vm© Vob H§ n{Z`m± 25% N.A. Oil Companies who have been issued oil bonds

ANNUAL REPORT 2018-19 175 7.5 Aà{V^yV A{JŒ_ 7.5 Unsecured Advances (` H$amo‹S _o§/` in crores)

H«$.g§. Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 Sl. No. {ddaU 31st March, 2019 31st March, 2018 i) Hw$b Aà{V^yV A{JŒ_/Total Unsecured Advances 36,865.85 19,698.24 ii) {OZ_o§ ~¢H$ Ûmam A{YH$ma, bmBgo§g, ~Œ¢S _yë`m§H$Z, àm{YH$ma Am{X O¡gr A_yV© à{V^y{V`mo§ H$mo g§nm{œ©H$ à{V^y{V Ho ê$n _o§ {bE JE A{JŒ_ Out of which advances with intangible securities such as charge over the rights, licenses, brand valuations, authorizations etc., taken by the bank as collateral - 1.49 iii) Eogr A_yV© g§nm{œ©H$ à{V^y{V H$m AZw_m{ZV _yë` Estimated value of such intangible collateral - 55.47 8.0 ^m.[a.~¢. Ûmam bJm`o Ow_m©Zo H$m àH$QZ 8.0 Disclosure of Penalties Imposed by RBI During the year 2018-19, Reserve Bank of India (“RBI”) has {dÎm df© 2018-19 Ho$ Xm¡amZ, ^maVr` [a‹Od© ~¢H$ (^m.[a.~¢.) Zo {ZåZdV imposed following Penalties: Ow_m©Zm bJmE h¢: A. i) As per the provisions of RBI Master Circular DCM H$. i) ^m[a~¢ _mñQ>a n[anÌ S>rgrE_ (grgr) g§.Or-4/03.044.01/ (CC) No. G-4/03.044.01/2018-19 dated 03.07.2018 2018-19 {XZm§{H$V 03.07.2018 Am_ OZVm H$mo J«mhH$ godm on “Scheme of Incentive and penalties for Bank àXmZ H$aZo _| H$m`©{ZînmXZ Ho$ AmYma na ~¢H$ emImAm| Ho$ {bE branches based on performance in rendering customer àmoËgmhZ Am¡a X§S> H$s `moOZm Ho$ àmdYmZm| Ho$ AZwgma _wÐm {VOmoar go service to the members of public”, an aggregate amount of `0.31 crores has been imposed as penalties for àmá J§Xo ZmoQ> {dàofU H$s à{H«$`m Ho$ Xm¡amZ H$_r nm`r OmZo Ho$ H$maU discrepancies detected while a) processing the soiled ` 0.31 H$amo‹S> H$s am{e H$m Ow_m©Zm bJm`m J`m& notes remittances received from the Bank’s Currency ii) Ama~rAmB© Zo AnZo gyMZm g§»`m B©E\$S>r& grAmo / Chests and b) Inspection of Currency Chests. 537/02.01.013/2018-19 {XZm§H$ 01.02.2019 Ho$ Ymam ii) `2.00 crores penalty levied by RBI vide communication 35, 35 E, 46 Am¡a 47E Ho$ VhV ~¢qH$J {d{Z`_Z A{Y{Z`_, ref No. EFD.CO.SO/537/02.01.013/2018-19 dated 1949 Ho$ VhV {d{Z`m_H$ {Xem{ZX}em| Ho$ C„§KZ Ho$ H$maU ` 2.00 01.02.2019 under Section 35, 35A, 46 and 47A H$amo‹S> H$m Ow_m©Zm bJm`m & of Banking Regulation Act, 1949 for violation of iii) ~¢qH$J {d{Z`_Z A{Y{Z`_, 1949 H$s Ymam 35, 35E, 46 Am¡a regulatory guidelines. 47 E Ho$ VhV ~¢qH$J {d{Z`_Z A{Y{Z`_, 1949 H$s {d{Z`m_ iii) `1.00 crore penalty levied by RBI vide communication H$ {ZX}em| Ho$ C„§KZ Ho$ VhV Ama~rAmB© Zo AnZo gyMZm g§»`m ref No. EFD.CO.SO/616/02.01.008/2018-19 B©E\$S>r.grAmo& AmoAmo/EgAmo/616/02.01.008/2018-19 dated 25.02.2019 under Section 35, 35A, 46 and 47A of Banking Regulation Act, 1949 for violation of Ho$ VhV pñdâQ> g§~§{YV n[aMmbZ {Z`§ÌUm| Ho$ g_`~Õ H$m`m©Ýd`Z regulatory directions on time bound implementation ` Am¡a gwÑ‹T>rH$aU Ho$ C„§KZ Ho$ H$maU 1.00 H$amo‹S> H$m Ow_m©Zm & strengthening of SWIFT related operational bJm`m & controls. iv) ^maVr` [aOd© ~¢H$ Ho$ Am¡MH$ {ZarjU Ho$ Xm¡amZ ` 0.001 H$amo‹S> iv) Penalty levied during Incognito Visit of RBI `0.001 Ow_m©Zm bJm`m J`m& & crore. I. boIm _mZH mo§ Ho$ AZwgma àH QZ AnojmE§ Ohm± ^m.[a.~¢. Zo boImo§ B. Disclosure requirements as per accounting standards H$s {Qßn{U`mo§ Ho$ {bE àH$QZ _Xmo§ Ho$ g§~§Y _o§ {Xem{ZXo©e Omar where RBI has issued guidelines in respect of {H$E h¢ disclosure items for notes to the accounts 1.0 nyd© Ad{Y _Xo§ 1.0 PRIOR PERIOD ITEMS df© Ho$ Xm¡amZ nhMmZr JB© _mÌm VH$ nyd© Ad{Y Am` ({Zdb ì``) Prior Period Expenses (net of Income) during the ` ` ` ` year 3.29 crores [Previous year 0.44 crores (Prior 3.29 H$amo‹S> JV df© 0.44 H$amo‹S> (nyd© Ad{Y Am` ({Zdb Period Income (net of Expenses)] to the extent ì``)) H$m nyd© Ad{Y ì`` (Am` H$m {Zdb){H$`m J`m& identiﬁ ed. 2.0 pñWa AmpñV`m± 2.0 FIXED ASSETS 1. n[aga _| 12.23 H$amo‹S> (JV df© 12.47 H$amo‹S>) H$s bmJV dmbr 1. Premises include properties costing `12.23 crores n[ag§n{Îm`m± ^r em{_b h¢ {OZHo$ n§OrH$aU H$s Am¡nMm[aH$VmE§ (previous year `12.47 crores) for which registration bpå~V h¢& formalities are pending.

176 2. pñWa AmpñV`m| _| ny±OrJV Mmby H$m`©-n[aga go g§~§{YV 2. Fixed Assets include `4.40 crores (Previous Year ` ` `1.50 crores) in respect of Capital Work in Progress.- 4.40 H$amo‹S> (JV df© 1.50 H$amo‹S> ) em{_b h¡& Premises. 3. df© 2018-19 Ho$ Xm¡amZ A{O©V gm°âQ>doàm| H$s bmJV `37.04 3. During the year 2018-19, cost of software acquired is H$amo‹S> (JV df© `37.48 H$amo‹S>) h¡ Am¡a df© Ho$ Xm¡amZ n[aemo{YV `37.04 crores (Previous Year `37.48 crores) and the am{e `38.56 H$amo‹S> (JV df© `28.61 H$amo‹S>) h¡& amount amortized during the year is `38.56 crores 4. ny±OrJV ImVo na {ZînmXZ hoVw b§{~V g§{dXmE± {OZHo$ {bE (Previous Year `28.61 crores). ` ` 4. Contracts pending execution on Capital account and àmdYmZ Zht {H$`m J`m, 105.56 H$amo‹S> (JV df© 578.59 not provided for is `105.06 crores (Previous Year H$amo‹S>) h¢& `578.59 crores). 5. df© Ho$ Xm¡amZ ~¢H$ Zo gm_mÝ` Ama{jV ({nN>bo df© `16.46 5. During the year, the Bank has reversed `19.26 crores H$amo‹S>) Ho$ {bE nwZ_y©ë`m§H$Z [aOd© go `19.26 H$amo‹S> énò from the revaluation reserve towards the General àË`md{V©V {H$`m h¡ & Reserve (previous year `16.46 crores). 6. As per RBI guidelines, Bank has carried out 6. ^maVr` [a‹Od© ~¢H$ Ho$ {Xem{ZX}em| Ho$ AZwgma, ~¢H$ Zo ~¢H$ Ho$ Revaluation of Bank owned properties, the value of ñdm{_Ëd dmbr g§n{Îm`m| H$m nwZJ©R>Z {H$`m h¡, {OgH$m _yë` which is `962.62 crores as gainst the previous value {nN>bo _yë` Ho$ `687.99 H$amo‹S> H$s VwbZm _| `962.62 H$amo‹S> of `687.99 crores. h¡& 7. During the year 2018-19, an amount of `4.19 7. df© 2018-19 Ho$ Xm¡amZ, dñVw Ed§ godm H$a na ñWm`r AmpñV crores has been reduced from the cost of Fixed ` Assets on account of Goods and Services Tax (GST) Ho$ bmJV am{e H$mo 4.19 H$amo‹S> H$_ {H$`m J`m h¡ Vm{H$ for utilizing the same as input credit against GST OrEgQ>r Xo`VmE§ ({nN>bo df© `2.33 H$amo‹S>) Ho$ {bE Cº$ H$mo liability (previous year `2.33 crores) àd¥{ï> {ZH$mgr Ho$ ê$n _| à`moJ {H$`m Om gHo$ & 3.0 EMPLOYEE BENFITS 3.0 H$_©Mmar {hVbm^ 3.1 The Bank has accounted for Employee Benefi ts as per 3.1 ^maVr` gZXr boImH$ma g§ñWmZ Ûmam Omar boIm§H$Z _mZH$ 15 Ho$ AZwgma Accounting Standard 15 issued by the Institute of Chartered ~¢H$ Ûmam H$_©Mmar {hVbm^ hoVw boIm§H$Z {H$`m J`m h¡& Accountants of India. {Z{X©îQ bm^ DEFINED BENEFITS 3.2 (H$) n[a^m{fV bm^ Xo`Vm Ho$ dV©_mZ _yë` _o§ n[adV©Z 3.2 a) Changes in the present value of the defi ned benefi t obligations: (` H$amo‹S> _|/` in crores) XrKm©d{Y à{VnyaH$ {hVbm^ no§eZ [{Z{YH$] JŒ¡À`wQr [{Z{YH$] AZwnpñWV [A{Z{YH$] Pension [Funded] Gratuity [Funded] Long Term compensated Xm{`Ëd absences [Unfunded] Obligations 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 2019 2018 2019 2018 2019 2018 31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 2019 2018 2019 2018 2019 2018 Ama§{^H$ eof Opening Balance 3,427.79 3,206.07 543.97 460.38 250.65 247.16 ã`mO bmJV Interest Cost 260.42 228.81 38.98 31.93 17.75 16.56 Mmby godm bmJV Current Service Cost 93.03 82.66 48.17 42.66 38.55 35.02 {dJV godm bmJV - {ZYm©[aV Past service cost-recognized ------{dJV godm bmJV - A{ZYm©[aV Past service cost-unrecognized ------{dJV godm bmJV - n[aemoYZ hoVw AnmÌ Past service cost-Not eligible for amortization ------àXÎm {hVbm^ Benefi t Paid (220.66) (186.03) (84.56) (51.80) (49.16) (43.61)

Xm{`Ëd na ~r_m§{H H$ (bm^)/hm{Z Actuarial (Gain) / Loss on obligation 85.92 96.28 19.08 60.80 (0.86) (4.48) A§{V_ eof Closing Balance 3,646.50 3,427.79 565.64 543.97 256.93 250.65

ANNUAL REPORT 2018-19 177 I) `moOZm AmpñV`mo§ Ho$ A§{H$V _yë` _o§ n[adV©Z b) Changes in the fair value of the plan assets: (` H$amo‹S> _|/` in crores) no§eZ [{Z{YH$] JŒ¡À`wQr [{Z{YH$] Pension [Funded] Gratuity [Funded] `moOZm AmpñV`m± 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, Plan Assets 2019 2018 2019 2018 31st March, 31st March, 31st March, 31st March, 2019 2018 2019 2018 Aà¡b H$moo `moOZm AmpñV`mo§ H$m C{MV _yë` Fair Value of plan assets as on April 3,427.79 3,216.07 485.48 462.37 `moOZm AmpñV A§eXmZmo§ na àË`m{eV à{Vbm^ 278.77 516.63 40.71 38.12 Expected Return on Plan Assets Contributions {Z`moŠVm A§eXmZ Employer Contribution 147.76 139.52 113.86 40.00 Xygao Ý`mg Am¡a gXñ`mo§ go A§VaU Transfer from other trust and members - - - - àXÎm {hVbm^/Beneﬁ ts Paid (220.66) (186.03) (84.57) (51.80) ~r_m§{H$H$ bm^/(-) hm{Z Actuarial gain / (-) loss (5.33) (258.40) (0.23) (3.20) _mM© H$moo `moOZm AmpñV`mo§ H$m {hVbm^ /Fair Value of plan assets as on March 3,628.33 3,427.79 555.25 485.49

J. `Wm 31 _mM©, 2019 H$mo VwbZnÌ _o§ {ZpíMV {Zdb AmpñV/ (Xo`Vm): c. Net Asset/(Liability) recognised in the Balance Sheet as at March 31, 2019: (` H$amo‹S> _|/` in crores) XrKm©d{Y à{VnyaH$ {hVbm^ no§eZ [{Z{YH ] JŒ¡À`wQr [{Z{YH ] AZwnpñWV [A{Z{YH ] Pension [Funded] Gratuity [Funded] Long Term compensated n[a^m{fV bm^ absences [Unfunded] Defi ned benefi ts 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 2019 2018 2019 2018 2019 2018 31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 2019 2018 2019 2018 2019 2018 n[a^m{fV Xo`Vm H m dV©_mZ _yë` Present value of the defi ned obligation 3,646.50 3,427.79 565.64 543.97 256.93 250.65 `moOZm AmpñV`mo§ H m A§{H V _yë` Fair value of the plan assets 3,628.33 3,427.79 555.25 485.49 - - {Z{YH$ pñW{V [A{Yeof/(H _r)]Funded Status [surplus/(defi cit)] (18.17) - (10.39) (58.48) * (256.93) (250.65) VwbZnÌ _o§ {Z{üV {Zdb AmpñV/ (Xo`Vm) Net Asset/(Liability) recognised in the Balance Sheet (18.17) - (10.39) (58.48) * (256.93) (250.65) * Defi cit of `58.48 crores for the Financial Year 2017-18 provided in Financial Year 2018-19 in Three Quarters equally. * {dÎmr` df© 2017-18 Ho$ {bE 58.48 H$amo‹S> énò H$s H$_r H$mo {dÎmr` df© 2018-19 _| VrZ {V_mhr _| g_mZ ê$n go àmdYmZ H$s JB©& ^m[a~¡§ Zo AnZo nÌ g§X^© g§»`m.S>r~rAma.~rnr.9730/21/21.04.2018/2017-18 {XZm§{H$V 27 Aà¡b 2018 Ho$ O[aE 31 _mM© 2018 H$mo g_má {V_mhr go àmaå^ Mma {V_m{h`m| hoVw ~¢H$mo§ H$mo J«¡À`wQ>r H$m ^wJVmZ A{Y{Z`_ Ho$ VhV 29.03.2018 go J«¡À`wQ>r H$s gr_m H$mo `10 bmI go ~‹T>mH$a `20 bmI VH$ H$aZo H$m {dH$ën {X`m h¡ & VXZþgma,31.03.2018 H$mo g_má {V_mhr hoVw `19.49 H$amo‹S> àmdYmZ {H$`m J`m Am¡a {dÎm df© 2018-19 H$s VrZ {V_m{h`m| _| `58.48 H$amo‹S> àmdYmZ H$a {XE JE h¢ & Reserve bank of India vide their letter ref no:DBR.BP.9730/21/21.04.2018/2017-18 dt April 27, 2018 has given the option to the banks to spread the additional liability on account of the enhancement in Gratuity Limits from `10 Lakh to `20 Lakh from 29th March, 2018 under the Payment of Gratuity Act over 4 quarters beginning with the quarter ended March 31, 2018. Accordingly `19.49 crore was provided in the quarter ended 31st March, 2018 and `58.48 crore has been provided in fi rst three quarters of the FY 2018-19. 178 K. bm^ Ed§ hm{Z {ddaU _o§ {ZYm©[aV Hw$b ì``… d. Total Expenses recognized in the Profi t and Loss Account : (` H$amo‹S> _|/` in crores) XrKm©d{Y à{VnyaH$ {hVbm^ no§eZ [{Z{YH$] JŒ¡À`wQr [{Z{YH$] AZwnpñWV [A{Z{YH$] Pension [Funded] Gratuity [Funded] Long Term compensated n[a^m{fV {hVbm^ absences [Unfunded] Defi ned benefi ts 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 2019 2018 2019 2018 2019 2018 31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 2019 2018 2019 2018 2019 2018 Mmby godm bmJV Current Service Cost 93.03 82.66 48.17 42.66 38.55 35.02 ã`mO bmJV Interest Cost 260.42 228.81 38.98 31.93 17.75 16.56 `moOZm AmpñV`mo§ na àË`m{eV à{Vbm^ Expected return on plan assets (278.78) (516.63) (40.71) (38.11) - - Ad{Y Ho Xm¡amZ {ZYm©[aV {Zdb ~r_m§{H$H$ (bm^)/hm{Z Net Actuarial (Gain) / Loss recognized in the period 91.25 354.68 19.32 63.99 (0.86) (4.48) {dJV godm bmJV - {ZYm©[aV Past service cost-recognized ------{dJV godm bmJV - n[aemoYZ hoVw AnmÌ Past service cost–Not eligible for amortization ------bm^ Ed§ hm{Z {ddaU _o§ {ZYm©[aV ì`` Expenses recognized in the statement of Profi t and Loss 165.92 149.52 65.76 41.99 55.44 47.10 AJbo df© n{aemoYZ hoVw {dJV godm bmJV ñW{JV (g_mZ ê$n go VrZ {V_m{h`m| _|) Past service cost deferred for amortisation in next year (Equally in three quarters) - - 58.48 {dÎmr` df© 2017-18 Ho$ {bE 58.48 H$amo‹S> énò H$s H$_r {dÎmr` df© 2018-19 _| VrZ {V_mhr _| g_mZ ê$n go àmdYmZ H$s JB©& Defi cit for the year FY 2017-18 of `58.48 crores has been provided in Three quarters equally in FY 2018-19

L>. VwbZnÌ VmarI H mo à`wº _w»` ~r_m§{H$H$ _mÝ`VmE§ : e. The principal actuarial assumptions used at the balance sheet date: (à{VeV _o§/in percentage) XrKm©d{Y à{VnyaH$ {hVbm^ no§eZ [{Z{YH$] JŒ¡À`wQr [{Z{YH$] AZwnpñWV [A{Z{YH ] Pension [Funded] Gratuity [Funded] Long Term compensated n[a^m{fV bm^ {Z{YH absences [Unfunded] Deﬁ ned beneﬁ ts funded 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 2019 2018 2019 2018 2019 2018 31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 2019 2018 2019 2018 2019 2018 ~Åm Xa Discount Rate 7.77% 7.85% 7.77% 7.85% 7.77% 7.85% doVZ d¥{Õ Salaries increase 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% no§eZ d¥{Õ Pension increase 5.50% 5.50% bm.Z. NA bm.Z. NA bm.Z. NA bm.Z. NA AQ´>reZ _yë` Attrition Rate 2.02% 1.43% 1.63% 1.31% 1.63% 1.31% `moOZm AmpñV`mo§ na Ano{jV dmngr Xa Expected Rate of Return on Plan Assets 8.22% 8.12% 8.14% 8.11% bm.Z. NA bm.Z. NA

ANNUAL REPORT 2018-19 179 M. `moOZm AmpñV`mo§ H$m g§KQZ… f. The Compositions of Plan Assets: (à{VeV _o§/in percentage) no§eZ-({Z{YH$) Pension-(Funded) JŒ¡À`wQr-({Z{YH$) Gratuity-(Funded) {ddaU Particulars 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 2019 2018 2019 2018 31st March, 31st March, 31st March, 31st March, 2019 2018 2019 2018 gaH$mar à{V^y{V`m± Government Securities - - - - CÀM JwUdÎmm gaH$mar ~m±S High Quality Corporate Bonds 1.78 2.60 5.99 7.19 {deof O_mam{e`m± Special deposits 2.62 3.24 1.58 0.46 AÝ` (nrEg`y) Other (PSU) - - - - ~r_m `moOZmAmo§ Ho A§VJ©V AmpñV`m± Assets under Insurance Schemes 95.60 94.16 92.43 92.35 Hw$b Total 100.00 100.00 100.00 100.00 N>. n[a^m{fV {hVbm^ Xm{`Ëdmo§ H$m dV©_mZ _yë`, `moOZm AmpñV`mo§ H m C{MV _yë`, A{Yeof/H$_r VWm Mmby Ed§ JV df© Ho {bE AZw^d g_m`moOZ {ZåZmZwgma h¡… g. The present value of defi ned benefi ts obligations, the fair value of plan assets, Surplus/Defi cits and experience adjustments are as under:

(` H$amo‹S> _|/` in crores) 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 2019 2018 2017 2016 2015 no§eZ Pension 31st March, 31st March, 31st March, 31st March, 31st March, 2019 2018 2017 2016 2015 Xm{`Ëd H$m dV©_mZ _yë` PV of obligation 3646.50 3,427.79 3,206.07 2,975.91 2,779.59 `moOZm AmpñV`mo§ H$m C{MV _yë` Fair value of plan assets 3628.33 3,427.79 3,216.07 2,985.32 2,809.49 (A{Yeof)/H$_r (Surplus)/Deﬁ cits 18.17 0.00 (10.00) (9.41) (29.90) An[aemo{YV Xo`Vm Un-amortized Liability 0.00 0.00 0.00 0.00 0.00 (A{Yeof)/H$_r [An[aemo{YV Xo`Vm H$m {Zdb] (Surplus)/Deﬁ cits [Net of Un-amortized Liability] 18.17 0.00 (10.00) (9.41) (29.90) `moOZm Xo`VmAmo§ na AZw^d g_m`moOZ (hm{Z)/bm^ Experience Adjustment on Plan Liabilities (Loss)/Gain (85.92) (96.28) (89.20) (118.10) 148.08 `moOZm AmpñV`mo§ na AZw^d g_m`moOZ (hm{Z)/bm^ Experience Adjustment on Plan assets (Loss)/Gain (5.33) (258.41) (7.00) 23.46 61.96

31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 2019 2018 2017 2016 2015 JŒ¡À`wQr Gratuity 31st March, 31st March, 31st March, 31st March, 31st March, 2019 2018 2017 2016 2015 Xm{`Ëd H$m dV©_mZ _yë` PV of obligation 565.64 543.97 460.38 451.25 465.03 `moOZm AmpñV`mo§ H$m C{MV _yë` Fair value of plan assets 555.25 485.48 462.37 468.42 478.85 (A{Yeof)/H$_r (Surplus)/Deﬁ cits 10.39 58.49 (1.99) 17.17 13.82 `moOZm Xo`VmAmo§ na AZw^d g_m`moOZ (hm{Z)/bm^ Experience Adjustment on Plan Liabilities(Loss)/Gain (19.08) (60.80) 23.51 28.81 20.73 `moOZm AmpñV`mo§ na AZw^d g_m`moOZ (hm{Z)/bm^ Experience Adjustment on Plan assets (Loss)/Gain (0.23) (3.20) (1.10) (1.30) 18.30

180 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, 31 ‘mM©, XrKm©d{Y à{VnyaH$ {hVbm^ - A{Z{YH 2019 2018 2017 2016 2015 Long Term compensated Absences 31st March, 31st March, 31st March, 31st March, 31st March, 2019 2018 2017 2016 2015 Xm{`Ëd H$m dV©_mZ _yë` PV of obligation 256.93 250.65 247.16 247.36 236.56 `moOZm AmpñV`mo§ H$m C{MV _yë` Fair value of plan assets 0.00 0.00 0.00 0.00 0.00 (A{Yeof)/H$_r (Surplus)/Defi cits 256.93 250.65 247.16 247.36 236.56 `moOZm Xo`VmAm| na AZw^d g_m`moOZ (hm{Z)/bm^ Experience Adjustment on Plan Liabilities (Loss)/Gain (0.86) (4.48 ) ( 7.64) (5.56) (6.49) `moOZm AmpñV`mo§ na AZw^d g_m`moOZ (hm{Z)/bm^ Experience Adjustment on Plan assets (Loss)/Gain 0.00 0.00 0.00 0.00 0.00 H$_©Mmar ~r_mar NwÅr `moOZm - df© 2018-19 Ho Xm¡amZ, ~r_mar NwÅr hoVw Xm{`Ëd H$mo nyam H$aZo Ho {bE ~¢H$ Zo Hw b `2.07 H$amo‹S H$m ì`` {H$`m h¢ & _mM© 31, 2019 H$moo {Z{Y _yë` H$m dV©_mZ _yë` `58.01 H$amo‹S h¢ & The Employee Sick Leave Scheme- During the year 2018-19, Bank has provided a total expenses of `2.07 crores for meeting the obligation towards Sick Leave. Present value of Fund value as on 31st March 2019 is `58.01 crores. 4.0 àI§S [anmo{Q>ªJ - ^maVr` gZXr boImH ma g§ñWmZ Ûmam Omar 4.0 SEGMENT REPORTING - Disclosure as per “AS 17 - ‘‘Segment Reporting”, issued by the Institute of ""boIm§H$Z _mZH$ 17 - àI§S [anmo{Q>ªJ'' Ho AZwgma àI§S Chartered Accountants of India are given below: [anmoQ© Bg àH$ma h¡… (` H$amo‹S> _|/` in crores) H«$.g§. Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 Sl. No. {ddaU 31st March, 2019 31st March, 2018 H$) a) àI§S> amOñd Segment Revenue i) Q´>oµOar n[aMmbZ Treasury Operations 4,121.61 6,429.73 ii) WmoH$ ~¢qH$J Wholesale Banking 7,087.52 7,174.08 iii) IwXam ~¢qH$J Retail Banking 5,320.25 5,385.60 iv) AÝ¶ ~¢qH$J n[aMmbZ Other Banking Operations 388.63 451.62 v) AZm~§{Q>V Unallocated 576.70 500.38 Hw$b Total 17,494.70 19,941.41 I) b) àI§S> n[aUm‘ Segment Results àË¶oH$ àI§S> go H$a nyd© Am¡a ã¶mO níMmV² bm^ (+) hm{Z (-) Profi t (+) Loss (-) before tax and after interest from each segment i) Q´>oµOar n[aMmbZ Treasury Operations (48.13) 464.45 ii) WmoH$ ~¢qH$J Wholesale Banking (7,782.81) (6,819.21) iii) IwXam ~¢qH$J Retail Banking 498.80 419.25 iv) AÝ¶ ~¢qH$J n[aMmbZ Other Banking Operations 388.49 451.26 Hw$b Total (6,943.66) (5,484.25) J) c) AZm~§{Q>V ì¶¶ Unallocated Expenses 1,105.03 1,196.60 K) d) n[aMmbZ bm^ Operating Profi t/(Loss) (8,048.69) 6,680.86 L>>) e) Am¶ H$a Income Tax (1,715.70) (2,626.92) M) f) AgmYmaU bm^/hm{Z Extraordinary Profi t/Loss - - N>) g) {Zdb bm^/(hm{Z) Net Profi t/(Loss) (6,332.98) (4,053.94) O) h) AÝ¶ gyMZm Other Information P) i) àI§S> AmpñV¶m± Segment Assets i) Q´>oµOar n[aMmbZ Treasury Operations 60,943.96 72,196.01 ii) WmoH$ ~¢qH$J Wholesale Banking 65,204.55 66,930.56 iii) IwXam ~¢qH$J Retail Banking 63,081.65 60,871.73 iv) AÝ¶ ~¢qH$J n[aMmbZ Other Banking Operations 2.21 5.07 v) AZm~§{Q>V AmpñV¶m± Unallocated Assets 24,345.48 21,887.88 Hw$b AmpñV¶m± Total Assets 213,577.85 221,891.25 ANNUAL REPORT 2018-19 181 H«$.g§. Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 Sl. No. {ddaU 31st March, 2019 31st March, 2018 Äm) j) àI§S> Xo¶VmE± Segment Liabilities i) Q´>oµOar n[aMmbZ Treasury Operations 54,109.78 65,719.83 ii) WmoH$ ~¢qH$J Wholesale Banking 58,917.43 62,147.50 iii) IwXam ~¢qH$J Retail Banking 60,929.39 61,244.15 iv) AÝ¶ ~¢qH$J n[aMmbZ Other Banking Operations 1.96 4.60 v) AZm~§{Q>V Xo¶VmE± Unallocated Liabilities 23,054.42 21,929.32 Hw$b Xo¶VmE± Total Liabilities 197,012.99 211,045.40 Q) k) bJmB© JB© ny±Or (ZrMo Ho$ ZmoQ> H$m g§X^© b|) Capital employed (refer note below) i) Q´>oµOar n[aMmbZ Treasury Operations 6,834.18 6,476.17 ii) WmoH$ ~¢qH$J Wholesale Banking 6,287.12 4,783.07 iii) IwXam ~¢qH$J Retail Banking 2,152.26 (372.42) iv) AÝ¶ ~¢qH$J n[aMmbZ Other Banking Operations 0.25 0.47 v) AZm~§{Q>V AmpñV¶m§ Unallocated Assets 1,291.06 (41.44) Hw$b AmpñV`m± Total Assets 16,564.86 10,845.85 IÊS> I : ^m¡Jmo{bH$ àI§S> Part B : Geographic Segment ^m¡Jmo{bH$ àI§S> _| Ho$db Kaoby àI§S> em{_b h¢ Š`m|{H$ ~¢H$ H$s H$moB© {dXoer The Geographic segment consists of only domestic segment as emIm Zht h¡. the Bank does not have any foreign branch. Notes on Segment Reporting: àI§S> [anmo{Qª>J na ZmoQ>: 1 As per guidelines of RBI on compliance with Accounting 1. boIm _mZH$m| Ho$ AZwnmbZ na Ama~rAmB© Ho$ {Xem{ZX}em| Ho$ AZwgma, Standards, the Bank has adopted “Treasury Operations”, ~¢H$ Zo AmB©grEAmB© Ûmam Omar àI§S> [anmo{Qª>J na EEg-17 Ho$ AZwnmbZ “Wholesale”, “Retail” and “Other Banking Operations” as Primary segments under “Domestic Segment” for the Ho$ CÔoí` go Kaoby àI§S> Ho$ VhV àmW{_H$ àIÊS>m| Ho$ ê$n _| Q´>oOar purpose of compliance with AS-17 on “Segment Reporting” n[aMmbZ, WmoH$, IwXam Am¡a AÝ` ~¢qH$J n[aMmbZ H$mo AnZm`m h¡& issued by ICAI. 2. àI§S> Xo`VmAm| H$mo CZHo$ g§~§{YV àI§S> AmpñV AZwnmV _| {dV[aV {H$`m 2 Segment Liabilities are distributed in the ratio of their J`m. respective Segment Assets. 3 Figures of the previous period / year have been regrouped / 3. dV©_mZ {V_mhr / Ad{Y H$s àñVw{V Ho$ AmYma na {nN>br Ad{Y / df© reclassifi ed based on current quarter / period’s presentation. Ho$ Am§H$‹S>o H$mo {\$a go BH$Æ>m / nwZd©JuH¥$V {H$`m J`m h¡& 5.0 RELATED PARTY DISCLOSURE 5.0 g§~§{YV nmQ>u àH$Q>rH$aU : In compliance with Accounting Standard 18 - Related ^maVr` [aµOd© ~¢H$ Ho$ {Xem{ZX}em| Ho$ gmW n{R>V ^maVr` gZXr boImH$ma Party Disclosures, issued by the Institute of Chartered Accountants of India read along with the Reserve Bank g§ñWmZ Ûmam Omar boIm§H$Z _mZH$ 18-g§~§{YV nmQ>u àH$Q>Z Ho$ AZwnmbZ of India guidelines, the details pertaining to Related Party _| g§~§{YV nmQ>u boZXoZ go g§~§{YV {ddaU {ZåZdV² h¢ : transactions are disclosed as under: H$) g§~§{YV nmQ>u H$m Zm_ VWm g§~§Y a) Name of the Related Party and relationship: g§~§{YV nmQr© H m Zm_ g§~§Y Name of the Related Party Relationship _w»` à~§YZ H m{_©H (Ho E_nr) Key Management Personnel (KMP) lr_Vr nr.dr.^maVr (01.02.2019 go) à~§Y {ZXoeH$ E§d _w»` H m`©nmbH$ A{YH$mar Smt. P. V. Bharathi (From 01.02.2019) Managing Director & Chief Executive Offi cer lr O` Hw$_ma JJ© (31.01.2019 VH$) à~§Y {ZXoeH$ E§d _w»` H m`©nmbH$ A{YH$mar Shri Jai Kumar Garg (Till 31.01.2019) Managing Director & Chief Executive Offi cer lr Jmonmb _wabr ^JV/ Shri Gopal Murli Bhagat H$m`©nmbH$ {ZXoeH /Executive Director lr {~énmj {_lm (26.12.2018 go) H$m`©nmbH$ {ZXoeH Shri Birupaksha Mishra (From 26.12.2018) Executive Director H$mn© ~¢H$ {gŠ`w[a{QO /Corpbank Securities Limited AZwf§Jr /Subsidiary

182 I) g§~§{YV nm{Q©`mo§ Ho gmW boZ-XoZ… b) Transactions with the related parties (` H$amo‹S> _|/` in crores) Ho E_nr /KMP boZ-XoZ H m ñdê n Nature of transaction 31 ‘mM©, 2019 31 ‘mM©, 2018 31st March, 2019 31st March, 2018 àXÎm nm[al{_H$: /Remuneration lr_Vr nr.dr.^maVr / Smt. P. V. Bharathi 0.05 - lr O` Hw$_ma JJ© /Shri Jai Kumar Garg 0.27 0.35 lr Jmonmb _wabr ^JV /Shri Gopal Murli Bhagat 0.28 0.26 lr {~énmj {_lm /Shri Birupaksha Mishra 0.08 - AZwf§Jr Ho$ gmW boZXoZm| H$mo EEg-18 Ho$ AZwÀN>oX 9, Omo AÝ` g§~§{YV nmQ>u The transactions with the subsidiary are not disclosed in view of para 9 of AS-18 “ Related Party Disclosure”, which exempts go CZHo$ boZ-XoZ g§~§Yr H$moB© ^r àH$Q>Z H$aZo go amÁ` {Z`§{ÌV CÚ_m| H$mo Ny>Q> state controlled enterprises from making any disclosures XoVm h¡, Ho$ _ÔoZµOa àH$Q> Zht {H$`m J`m h¡, Omo amÁ` {Z`§{ÌV h¢& pertaining to their transactions with other related parties,which Ho$E_nr Am¡a Ho$E_nr Ho$ [aíVoXmam| Ho$ ~rM _| ~¢H$a J«mhH$ boZXoZ ñdê$n are also state controlled. Transactions in the nature of banker-customer relationship H$s boZXoZm| H$mo EEg-18 Ho$ AZwÀN>oX 5 Ho$ AZwgma àH$Q> Zht {H$`m including those with KMP and relatives of KMP have been J`m h¡& disclosed in terms of Para 5 of AS-18. 6.0 brO: 6.0 LEASES The Bank has entered into various operating lease for offi ces, ~¢H$ Zo H$m`m©b`m|, JoñQ> hmD$g Am¡a H$_©Mm[a`m| Ho$ {bE Amdmgr` n[aga hoVw guest house and residential premises for employees that are {d{dY n[aMm{bV brO {H$`m {Ogo Amd{YH$ AmYma na ZdrH¥$V VWm ~¢H$ Ho$ renewable on a periodical basis and cancelable at the bank’s {dH$ën _| {ZañV {H$`m Om gH$Vm h¡& df© 2018-19 Ho$ {dÎmr` {ddaUm| _| option. Rental expenses for such operating leases included in em{_b Eogo n[aMmbZ brO Ho$ {bE {H$am`m IM© `287.70 H$amo‹S> ({nN>bo fi nancial statements for the year 2018-19 are `287.70 crores (previous year `274.57 crores). df© `274.57 H$amo‹S>) h¡& 7.0 à{V eoà AO©Z : 7.0 EARNINGS PER SHARE _yb Am¡a VZwH¥$V à{V eoà AO©Z H$m n[aH$bZ boIm§H$Z _mZH$-20 (AO©Z Basic and diluted earnings per share has been computed in à{V eoà) Ho$ AZwgma {H$`m J`m h¡&: accordance with Accounting Standard - 20 (Earnings Per Share): _yb B©nrEg H$s JUZm…: Calculation of Basic EPS: H«$.g§. 31 ‘mM©, 2019 31 ‘mM©, 2018 Sl. No. {ddaU Particulars 31st March, 2019 31st March, 2018 i) B©p¹Qr eoàYmaH$moo§ hoVw H$a nümV² CnbãY {Zdb bm^/(hm{Z) (` H$amo‹S _o§) Net profi t/(loss) after tax available for equity shareholders (` in crore) (6,332.98) (4,053.94) ii) ^m[aV Am¡gV B©p¹Qr eoàmo§ H$s g§»`m (H$amo‹S _o§) Weighted average number of equity shares (in crore) 210.66 114.85 iii) à{V eoà _yb AO©Z Basic Earnings per Share (`) (30.06) (35.30) iv) à{V eoà Zm__mÌ _yë` Nominal Value per Share (`) 2.00 2.00 VZwH¥$V… bmJy Zht Š`m| {H$ H$moB© VZyH¥$V g§^mì` B©{¹$Q>r eoà Zht h¡& Diluted: Not applicable as there are no dilutive potential equity shares. 8.0 Am` na H$am| Ho$ {bE boIm§H$Z 8.0 ACCOUNTING FOR TAXES ON INCOME H$) ~¢H$ Zo Bg g§~§Y _| gr~rS>rQ>r H$m n[anÌ {XZm§{H$V 23.03.2017 a) The bank has reckoned the Income Computation and Ho$ gmW n{R>V H|$Ðr` àË`j H$a ~moS©> (gr~rS>rQ>r) H$s A{YgyMZm Disclosure Standards (ICDS) as per Notifi cation by {XZm§{H$V 29.09.2016 Ho$ AZwgma Am` n[aH$bZ VWm àH$Q>Z _mZH$ Central Board of Direct Taxes (CBDT) Dt. 29.09.2016, read with Circular of CBDT Dt 23.03.2017 in this regard (AmB©grS>rEg) H$s JUZm H$s h¡ Omo _yë`m§H$Z df© 2018-19 VWm ~mX which are applicable for the Assessment Year 2018-19 and Ho$ _yë`m§H$Z dfm] Ho$ {bE bmJy h¡& subsequent Assessment Years.

ANNUAL REPORT 2018-19 183 I) ~¢H$ Zo AmñW{JV H$a AmpñV`m| Ed§ Xo`VmAm| H$mo ^maVr` gZXr boImH$ma b) The Bank has recognized deferred tax assets and liabilities as per Accounting Standard No. 22 issued by The Institute of g§ñWmZ (AmB©grEAmB©) Ûmam boIm _mZH$ g§. 22 Ho$ AZwgma {ZYm©[aV Chartered Accountants of India (ICAI). The components {H$`m h¡, {OgHo$ à_wI g§KQ>H$ ZrMo àñVwV h¢: are as under: (` H$amo‹S> _|/` in crores) Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 {ddaU / 31st March, 2019 31st March, 2018 AmñW{JV H$a AmpñV`m± Deferred Tax Assets on account of NwÅr ZH$XrH$aU àmdYmZ Leave encashment Provision 89.78 86.75 {Z{YH ã`mO _r`mXr G$U Ed§ KmQ>m Funded Interest Term Loan 56.61 97.39 Ë`mJ Sacrifi ce 20.46 35.94 G$U hm{Z Loan Losses 3,914.38 2,431.18 pñWa AmpñV`mo§ na _yë`õmg Depreciation on Fixed Assets 48.36 17.02 H$a `mo½` Am` (hm{Z) Taxable Income / (Loss) 1,557.96 1,542.98 _mZH$ AmpñV àmdYmZ na 258.67 10.30 On Standard Assets Provision Hw$b Total 5,946.22 4,221.56 AmñW{JV H$a Xo`VmE±§ Deferred Tax Liabilities on account of n|eZ Ed§ J«¡MwQ>r-nyd© ^wJVmZ Pension & Gratuity - Pre-payment - 20.24 XrKm©d{Y {dÎm Am` Long Term Finance Income 499.96 495.16 EAmagr hoVw AmpñV`mo§ H$s {~H«$s na hm{Z Loss on Sale of Assets to ARC - - Hw$b Total 499.96 515.40 {Zdb AmñW{JV H a (Xo`Vm)/AmpñV 5,446.26 3,706.16 Net Deferred tax (Liabilities)/ Assets ZmoQ>: {dÎm df© 2018-19 Ho$ Xm¡amZ ~ZmE JE XrK©H$m{bH$ {dÎm go Am` Note: The DTA on Taxable Income (Loss) & DTL on Income na H$a `mo½` Am` (hm{Z) Am¡a S>rQ>rEb na S>rQ>rE Ho$db 34.608% go from Long Term Finance created during the year FY 2018- 19 was only on account of increase of tax rate (including cess 34.944% VH$ H$a H$s Xa (CnH$a Am¡a A{Y^ma g{hV) _| d¥{Õ Ho$ H$maU and surcharge) from 34.608% to 34.944%. The DTA was not Wm & {dÎm df© 2018-19 Ho$ Xm¡amZ H$a ZwH$gmZ na S>rQ>rE Zht ~Zm`m J`m created on the tax loss incurred during the FY 2018-19. Wm. c) The Bank has been recognising deferred tax assets and J) ~¢H$ ^maVr` gZXr boImH$ma g§ñWmZ (AmB©grEAmB©) Ûmam Omar {H$E liabilities as per Accounting Standard 22 issued by the JE boIm§H$Z _mZH$ 22 Ho$ AZwgma ~¢H$ AmñW{JV H$a AmpñV`m| Am¡a Institute of Chartered Accountants of India (ICAI), however Xo`VmAm| H$mo ñdrH¥$V {H$`m h¡, hmbm§{H$ H$a KmQ>o Ho$ Abmdm g§_`m§Vab during the current year deferred tax assets on timing na `1740.09 H$amo‹S> H$s AmñW{JV H$a AmpñV`m| H$m AmH$bZ {H$`m differences other than tax losses to the tune of `1740.09 J`m h¡ & ZwH$gmZ H$s _mÌm na {dMa H$aVo hþE Am¡a H$a hm{Z na crore has been recognised. Considering the quantum of loss and prudence the current year deferred tax of `1240.13 crore ` 1240.13 H$amo‹S> énò Ho$ _m¡OyXm df© Ho$ AmñW{JV H$a H$mo AmH${bV on tax loss has not been recognised. The bank carries deferred Zht H$s JB© h¡& ~¢H$ 31 _mM©, 2018 VH$ H$a ZwH$gmZ na ` 1557.96 tax asset of `1557.96 crore on tax losses upto March 31, H$amo‹S> énò H$s AmñW{JV H$a AmpñV H$m dhZ {H$`m h¡ & 2018. K) d) Income Tax Am`H$a i) Break-up of provision made for Income Tax during i ) df© Ho$ Xm¡amZ Am` H$a hoVw {H$E JE àmdYmZm| H$m {dûcofU… the year : (` H$amo‹S> _|/` in crores) Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 {ddaU 31st March, 2019 31st March, 2018 gm_mÝ` H$a Normal Tax - - Ý`yZV_ d¡H$pënH$ H$a (E_EQ>r) Minimum Alternate Tax (MAT) - - AmñW{JV H$a Xo`Vm/(AmpñV`m±) Deferred Tax Liability/(Assets) (1,740.09) (2,610.17) ~¢H$ Zo Am` {Z`_ Ho$ VhV CnbãY ` eyÝ` H$amo‹S> ({nN>bo df© eyÝ` H$amo‹S>) H$m E_EQ>r F$U CnbãY {H$`m h¡& The Bank has availed MAT Credit of ` NIL crores (Previous year ` NIL crores) as available under Income Tax Laws.

184 ii) {dÎm df© 2015-16 ({d. d. 2016-17) VH$ Am`H$a hoVw ii) Assessments for Income Tax have been completed up {ZYm©aU nyam {H$`m J`m h¡& to the ﬁ nancial year 2015-16 (AY 2016-17). Anrb àm{YH$mar/ Ý`m`mb` Ho$ g_j ~¢H$/ Am`H$a {d^mJ Ûmam Xm`a The following appeals by the Bank/Income Tax Department {ZåZ{bpIV Anrb {d{^Þ ñVam| na eof h¡… are pending before various appellate authorities/courts :

Am` H$a Income Tax godm H$a Service Tax ì`dgm` H$a Professional Tax {ZYm©aU df© 1998-99, 2004-05, 2007-08 go 2016-17 Assessment Year 1998-99, 2004-05 & 2007-08 to {dÎm df© 2006-07 go OyZ 2017 VH 2009-10 2013-14 Financial Year 2006-07 to June 2017 go VH 2016-17

iii) àXÎm A{J«_ H$a, {ddmXm| Ho$ VhV àXÎm H$a, CnbãY grB©EZdrEQ>r iii) Advance Taxes paid, Taxes Paid under Disputes, Input Tax Credit availed and TDS deducted on Income to F$U Am¡a Am` na Q>rS>rEg H$s H$Q>m¡Vr H$mo ""AÝ` AmpñV`m§- the Bank are appearing under “Other Assets--Tax A{J«_ _| àXÎm H$a/òmoV na H$a H$Q>m¡Vr'' Ho$ VhV em{_b {H$`m Paid in Advance / Tax Deducted at Source”. With J`m h¡& {ddmXm| Ho$ VhV àXÎm H$a Ho$ g§~§Y _| ~¢H$ Zo Anrb H$s h¡ regard to the Taxes paid under dispute the Bank has ﬁ led appeals before Appellate Authorities and no Am¡a Bgr àH$ma Ho$ _m_bm| _| AZwHy$b \¡$gbm| H$mo XoIVo hþE H$moB© additional provision is considered necessary in view A{V[aº$ àmdYmZ µOê$ar Zht g_Pm J`m h¡& of favourable judicial pronouncements in similar cases. 9.0 PROVISIONS, CONTINGENT LIABILITIES 9.0 àmdYmZ, AmH$pñ_H$ Xo`VmE§ Am¡a AmH$pñ_H$ AmpñV`m± AND CONTINGENT ASSETS H$) àmdYmZ… a) Provisions: (` H$amo‹S> _|/` in crores)

`Wm àma§{^H$ df© Ho Xm¡amZ df© Ho Xm¡amZ eof {H$E JE A{V[aº df© Ho Xm¡amZ àË`md{V©V 01.04.2018 à`moJ {H$E JE `Wm A§{V_ eof H«$.g§. àmdYmZ àmdYmZ 31.03.2019 Sl. àmdYmZ H$s àH¥${V Additional àmdYmZ Provision H$mo Nature of Provision H$mo Provision used Closing Balance No. Opening Provision Reversed during the Balance as on made during during the as on 31.03.2019 year 01.04.2018 the year year i) EZnrE Ho$ g§~§Y _| {H$E JE àmdYmZ 7,929.68 12,002.72 5,989.44 417.58 13,525.38 Provision made towards NPAs (5,188.34) (11,111.90) (8,228.37) (142.19) (7,929.68) ii) {Zdoe na _yë`õmg hoVw àmdYmZ 1,139.02 340.20 - 243.25 1,235.97 (EZnrE àmdYmZ g{hV) (443.67) (821.26) - (125.91) (1,139.02) Provision for Depreciation on Investment (Including NPI provision) iii) Am` H$a/g§n{Îm H a hoVw àmdYmZ 153.90 - - 7.30 146.60 Provision made towards Income Tax / (484.67) - (288.13) (42.64) (153.90) Wealth Tax iv) g^r AÝ` * All others * 1,020.66 189.80 - 171.96 1,038.50 (2,192.18) (4.83) - (1,176.35) (1,020.66)

* Bg_| H$O© Ho$ ê$n _| ñdrH$ma Z {H$ò Jò ~¢H$ Ho$ {déÕ Xmdm| hoVw àmdYmZ, * includes provision for claims against the Bank not acknowledged H$nQ>nyU© boZ-XoZm| hoVw àmdYmZ VWm AÝ` {d{dY boZXoZ em{_b h¢& as debt, provision towards fraudulent transactions and other miscellaneous transactions. H$moð>H$ Ho$ Am§H$So> JV df© Ho$ h¢& Figures in brackets represent previous year fi gures.

ANNUAL REPORT 2018-19 185 I) AmH$pñ_H$ Xo`Vm… b) Contingent Liability: i) Claims against the Bank not acknowledged as debts: i) H$O© Ho$ ê$n _| ñdrH$ma Z {H$ò Jò ~¢H$ Ho$ {déÕ Xmdo… 9. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS (` H$amo‹S> _|/` in crores) a) Provisions: Xmdmo§ H$s g§. (Rs.in crores) Particulars No. of gH$b Xmdo {Zdb Xmdo {ddaU Gross Claims Net Claims claims 01.04.2018 H$moo ~H$m`m Hw b Xmdo Total Claims outstanding as on 01.04.2018 100 2,317.92 2,311.11 KQmE§: df© Ho$ Xm¡amZ KQmE§/g§emo{YV Xmdo 16 1,058.48 1,058.48 Less: Claims deleted/revised during the year Omo‹So§: df© Ho Xm¡amZ Omo‹So ZE Xmdo Add : New Claims added during the year 18 1,980.83 1,980.83 31.03.2019 H$mo ~H$m`m Hw b Xmdo 102 3,240.27 3,233.46 Total Claims outstanding as on 31.03.2019 31 _mM©, 2019 H$mo ~H$m`m Xmdmo§ H$m {df`dma dJr©H$aU… Subject wise classifi cation of the claims outstanding as on Figures in brackets repre- 31st March, 2019: sent Previous Year fi gures. (` H$amo‹S> _|/` in crores) b) Contingent Liability: i) Claims against the (Rs.in crores) {ddaU Particulars Xmdmo§ H$s g§ gH$b Xmdo {Zdb Xmdo Bank not acknowledged No. of Claims Gross Claim Net Claims as debts: ~¢H$ Jma§Qr Bank Guarantees 2 0.16 0.01 Particulars No. of Claims Gross Claims Net Claims MoH$/_m±J S—mâQ/^wJVmZ AmXoe Am{X H$s CJmhr Cheques/DD/PO etc., collection 9 0.78 0.23 Total Claims outstanding as on 01.04.2018 Less: Claims deleted/revised during the year G$U g§{d^mJ Credit Portfolio 15 1.15 0.82 Add : New Claims added during the year O_m g§{d^mJ Deposits Portfolio 2 0.32 - Total Claims outstanding as on 31.03.2019 gVH©$Vm/H$nQ> Vigilance /Fradulant 23 6.51 1.71 [ ] # Subject wise classifi - {d{dY Am` H$a d ã`mO H$a _m±Jmo§ go g§~§{YV Xmdmo§ g{hV 51 3,231.35 3,230.69 Miscellaneous [Including claims on account of Income Tax Demands]# cation of the claims outstanding as on 31st `moJ* Total* 102 3,240.27 3,233.46 March, 2019: * ewéAmV go boH$a Ohm± bmJy hmo Xmdm| na ã`mO H$mo N>mo‹S>H$a * Excluding interest on claims, wherever applicable, since inception. (Rs.in crores) # AmH$pñ_H$ Xo`VmAm| _| `3210.93 H$amo‹S> H$m H$a VWm ã`mO em{_b h¡ # Contingent liabilities include tax and interest of `3210.93 crores Particulars No. of Claims Gross Claim Net Claim ` (Previous Year `2,290.59 crores) Bank Guarantees 2 0.16 0.01 (JV df© 2290.59 H$amo‹S>) Cheques/DD/PO etc., collection 9 0.78 0.23 J. A{V[aº àH$QZ C. ADDITIONAL DISCLOSURES Credit Portfolio 15 1.15 0.82 1. àmdYmZ Am¡a AmH$pñ_H$VmE§ 1. PROVISIONS AND CONTINGENCIES Deposits Portfolio 2 0.32 - (` H$amo‹S> _|/` in crores) Vigilance /Fradulant 23 6.51 1.71 Miscellaneous [Including claims on account of Income Tax H«$.g§. 31 ‘mM©, 2019 31 ‘mM©, 2018 51 3,231.35 3,230.69 {ddaU Particulars Demands]# Sl. No. 31st March, 2019 31st March, 2018 Total* 102 3,240.27 3,233.46 i. {Zdoe na _yë`õmg hoVw àmdYmZ Provision for Depreciation on Investments 340.20 820.66 * Excluding interest on claims, wherever applicable, since inception. ii. EZnrE ({Zdb) Ho à{V àmdYmZ Provision towards NPAs (net) 11,585.14 10,982.14 # iii. _mZH$ AmpñV Ho à{V àmdYmZ Provision towards Standard Assets 180.53 (815.65) iv. Am`H$a Am¡a g§n{Îm H$a hoVw àmdYmZ Provision for Income Tax and Wealth tax (1,715.70) (2,626.92) v. ã`mO ny±OrH$aU hoVw àmdYmZ Provision for Interest Capitalisation (119.42) (301.23) vi. AÝ` àmdYmZ Ed§ AmH$pñ_H$VmE§ Other Provisions & Contingencies (43.29) (54.64) `moJ TOTAL 10,227.46 8,004.36 H) RBI g§gyMZm DBR No. BP.8756/21.04.048/2017-18 a) In terms of RBI communication DBR No. {XZm§{H V 2 Aà¡b, 2018 Ho AZwgma, 31 _mM©, 2019 VH Ho nmÌ BP.8756/21.04.048/2017-18 dated 2nd April, 2018, EZgrEbQr (gyMr 1 Am¡a gyMr 2) ImVmo§ Ho g§~§Y _o§ `1,011.99 `1011.99 crores has been additionally provided in respect

186 H$amo‹S A{V{aº ê$n go àXmZ {H E JE h¢& nmÌ EZgrEbQr (gyMr 1 Am¡a of eligible NCLT (List 1 & List 2) accounts as on 31st gyMr 2) ImVmo§ Ho {bE 31 _mM© 2019 VH {H$E JE Hw$b dmñV{dH March 2019. Total actual provision made as on 31st March 2019 for the eligible NCLT (List 1 & List 2) accounts is ` àmdYmZ, 9079.56 H$amo‹S h¡, Omo AmB©AmaEgr _mZX§Smo§ Ho AZwgma `9079.56 crores, which represents 100% of provision of `8067.57 H$amo‹S Ho ~Xbo _o§ 31 _mM©, 2019 H$mo ~H$m`m _yë` Ho the outstanding value as on March 31, 2019, instead of àmdYmZ H m 100% h¡& `8067.57 crores as per IRAC norms. I) 31 _mM©, 2019 H$moo 22 AÝ` EZgrEbQr ImVmo§ H mo `610.40 H amo‹S b) With regard to the other 22 NCLT accounts an amount of nwZ… àXmZ {H$E JE& 31 _mM©, 2019 H$moo {H$`m J`m Hw$b dmñV{dH `610.40 crores further provided as on 31st March, 2019. àmdYmZ `937.29 H$amo‹S Ho ~Om` `1547.69 H$amo‹S h¡& Total actual provision made as on 31st March 2019 is `1547.69 crores instead of `937.29 crores. J) dgybr H$s A{Z{üVVm Ho _ÔoZOa 29 EZnrE ImVmo§ Ho g§~§Y _o§, c) In respect of 29 accounts under NPA category, in view of 31 _mM©, 2019 H$mo {H$E JE Hw$b àmdYmZ, AmB©AmaEgr _mZXÊSmo§ Ho uncertainty of recovery, total provision made as on March AZwgma `1486.67 H$amo‹S én`o Ho ~Om` `2767.22 H$amo‹S h¡& 31, 2019 is `2767.22 crores instead of `1486.67 crores as per IRAC Norms. K) ~¢H$ Zo 4 CYma ImVmo§ H$mo _mZH$ loUr go EZnrE loUr _o§ dJr©H¥$V {H$`m h¡, d) The Bank has classiﬁ ed 4 borrowal accounts whose ` {OZH$m 31 _mM©, 2019 VH$ ~H$m`m 627.63 H$amo‹S h¡ Am¡a VXZwgma outstanding as on March 31, 2019 is `627.63 crores, from {ddoH$nyU© _mZX§Smo§ Ho AZwgma `123.70 H$amo‹S H$m àmdYmZ {H$`m standard to NPA category and accordingly made a provision J`m h¡& of `123.70 crores as per prudential norms. 2. ApñWa àmdYmZ 2. FLOATING PROVISIONS (` H$amo‹S> _|/` in crores)

H«$.g§. Floating Provision 31 ‘mM©, 2019 31 ‘mM©, 2018 Sl. No. ApñWa àmdYmZ 31st March, 2019 31st March, 2018 i. àma§{^H$ eof Nil Nil Opening balance eyÝ` eyÝ` ii. df© Ho Xm¡amZ n[adY©Z Nil Nil Additional made during the year eyÝ` eyÝ` iii. boIm df© Ho Xm¡amZ {H$E JE AmhaU H$m CÔoí` Am¡a am{e Nil Nil Purpose and amount of draw down made during the year eyÝ` eyÝ` iv. A§{V_ eof Nil Nil Closing balance eyÝ` eyÝ`

3. Ama{jV {Z{Y`m| go Amh[aV: df© 2018-19 Ho$ Xm¡amZ Ama~rAmB© 3. Draw Down from Reserves : During the year 2018-19 {Xem{ZX}em| Ho$ AZwgma {Zdoe Ama{jV ImVm| go AmhaU eyÝ` was NIL (previously `106.82 crores) from Investment Reserve Account as per RBI guidelines (nhbo `106.82 H$amo‹S> Wm h¡& 4. {eH$m`Vo§/~¢qH$J bmoH$nmb Ho H$m`m©pÝdV Z {H$E JE A{Y{ZU©` 4. Complaints / unimplemented awards of Banking Ombudsman H$. JŒmhH$ {eH$m`Vo§ A. Investor Complaints

H«$.g§. Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 Sl. No. {ddaU 31st March, 2019 31st March, 2018 (H$)(a) df© Ho Ama§^ _o§ b§{~V {eH$m`Vmo§ H$s g§»`m eyÝ` Nil eyÝ` Nil No. of complaints pending at the beginning of the year (I)(b) df© Ho Xm¡amZ àmßV {eH$m`Vmo§ H$s g§»`m No. of complaints received during the year 716 482 (J)(c) df© Ho Xm¡amZ {ZnQmB© JB© {eH$m`Vmo§ H$s g§»`m 716 482 No. of complaints redressed during the year (K)(d) df© Ho A§V _o§ b§{~V {eH$m`Vmo§ H$s g§»`m eyÝ` Nil eyÝ` Nil No. of complaints pending at the end of the year

ANNUAL REPORT 2018-19 187 I. ~¢qH$J bmoH$nmb Ûmam nm[aV A{Y{ZU©` B. Awards passed by the Banking Ombudsman

H«$.g§. Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 Sl. No. {ddaU 31st March, 2019 31st March, 2018

(a) (H$) df© Ho Ama§^ _o§ J¡a-H$m`m©pÝdV A{Y{ZU©`mo§ H$s g§. Nil Nil No. of unimplemented Awards at the beginning of the year eyÝ` eyÝ`

(b) (I) df© Ho Xm¡amZ ~¢qH$J bmoH$nmb Ûmam nm[aV A{Y{ZU©`mo§ H$s g§. 4 Nil No. of Awards passed by the Banking Ombudsmen during the year eyÝ`

(c) (J) df© Ho Xm¡amZ H$m`m©pÝdV A{Y{ZU©`mo§ H$s g§. 4 Nil No. of Awards implemented during the year eyÝ` (K)(d) df© Ho A§V _o§ J¡a-H$m`m©pÝdV A{Y{ZU©`mo§ H$s g§. No. of unimplemented Awards at the end of the year eyÝ` Nil eyÝ` Nil J. 2018-19 Ho Xm¡amZ AÝ` ~¢H$ Ho$ EQ>rE_ g{hV H$s J«mhH$ {eH$m`V| C. Customer complaints including that of other Bank's ATM during the year 2018-19 BZ_o§ go BVao ~¢H$ Ho$ EQrE_m| H$m ~¢H$ Ho$ H$mS>© YmaH$m| Ho$ Cn`moJ H$aVo g_` h_mao àmßV {eH$m`Vo§ YmaH$moo§ go àmßV {eH$m`Vo§ HŒ . g§. Particulars Sl. No. {ddaU Complaints received Out of which complaints from Bank's received from Bank’s Card Card holders holders while using other Bank’s ATM (H$)(a) df© Ho Ama§^ _o§ b§{~V {eH$m`Vmo§ H$s g§»`m 695 674 No. of complaints pending at the beginning of the year (414) (409) (I)(b) df© Ho Xm¡amZ àmßV {eH$m`Vmo§ H$s g§»`m 82172 70595 No. of complaints received during the year (75314) (72127) (J)(c) df© Ho Xm¡amZ {ZnQmB© JB© {eH$m`Vmo§ H$s g§»`m 81312 70010 No. of complaints redressed during the year (75033) (71862) (K)(d) df© Ho A§V _o§ b§{~V {eH$m`Vmo§ H$s g§»`m 1555 1259 No. of complaints pending at the end of the year (695) (674)

{dJV df© Ho Am§H$‹Smo§ H$mo H$moîRH$ _o§ Xem©`m J`m h¡ Figures in Brackets represents Previous year Figures

5H$. HŒo Vm H$s gmI na CYma g{hV MwH m¡Vr AmœmgZ nÌ 5a. Letter of Comforts (LOC) including Buyer’s Credit: (EbAmogr) : The Bank issues Letters of Comfort (LOCs) on behalf of ~¢H$ AnZo {d{^Þ JŒmhH$mo§ H$mo _§Oya G$U gr_mAmo§ Ho à{V CZH$s Amoa go its various constituents against the credit limits sanctioned MwH$m¡Vr AmœmgZ nÌ (EbAmogr) Omar H$aVm h¡& à~§YZ-dJ© H$s am` _o§ to them. In the opinion of the Management, no signifi cant ~¢H$ Ûmam {dJV _o§, Mmby df© Ho Xm¡amZ Omar EbAmogr Ho A§VJ©V H$moB© fi nancial impact and cumulative fi nancial obligations have _hËdnyU© {dÎmr` à^md Am¡a g§M`r {dÎmr` Xm{`Ëd H$m AH$bZ Zht hwAm been assessed under LOCs issued by the Bank in the past, h¡ Am¡a A~ ^r ~H$m`m Zht h¡& ~¢H$ Ûmam Omar MwH$m¡Vr AmœmgZ nÌ Ho during the year and still outstanding. Brief details of LOCs g§{jßV ã`m¡ao {ZåZmZwgma h¡… by the Bank are as follows:

188 (` H$amo‹S> _|/` in crores) H«$.g§. Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 Sl. No. {ddaU 31st March, 2019 31st March, 2018

(H$) 1 Aà¡b H$mo MwH$m¡Vr AmœmgZ nÌ (EbAmogr) _o§ àma§{^H$ eof 2,460.18 3,121.87 (a) Opening balance in Letter of Comfort as at 1st April

(I) df© Ho Xm¡amZ Omar {H$`m J`m - 6,383.04 (b) Issued during the year (J)(c) df© Ho Xm¡amZ ^wJVmZ / ~§X {H$`m Payment/ Closed during the year 2,460.18 7,044.73

(K) 31 _mM© H$mo A§{V_ eof - 2,460.18 (d) Closing balance 31st March

I. df© Ho Xm¡amZ ~¢H$ Zo {H$gr ^r HŒo {SQ {S\ m°ëQ ñd¡n _o§ àdoe Zht b. Bank has not entered into any credit default swap during {H$`m h¡ & the year. 6. Provisioning coverage ratio of the Bank as on March 31, 6. 31 _mM© 2018 Ho 63.65% Ho _wH$m~bo 31 _mM© 2019 H$mo ~¢H$ H$m 2019 is 83.30 % as against 63.65% as on March 31, 2018. àmdYmZ H$daoO AZwnmV 83.30% h¢& 7. During the year, the Bank has received fee/remuneration of 7. df© Ho Xm¡amZ ~¢H$ H$mo ~¢H$mí`moaoÝg H$mamo~ma go `10.00 H$amo‹S (JV df© `10.00 crores from Bank assurance business (Previous year `13.43 H$amo‹S) ewëH$/à{Vbm^ àmßV hwAm h¡& `13.43 crores). HŒ . g§. 31 ‘mM©, 2019 VH$ 31 ‘mM©, 2018 VH$ Sl. No. Am` H$s àH¥${V/H$_reZ/~«moH$aoO Nature of Income/Commission/Brokerage As on March 31, 2019 As on March 31, 2018 1 OrdZ ~r_m H$mamo~ma Life Insurance Business 5.36 7.94 2 gm_mÝ` ~r_m H$mamo~ma General Insurance Business 2.94 3.45 3 _o{S>Šbo_ - hoëW Mediclaim - Health 1.55 1.82 4 å`wMb \§$S> Mutual Fund 0.15 0.22 Hw$b Total 10.00 13.43 gå_mZ _| àmá/àmá n[al{_H$/ewëH$ H$m {ddaU Details of fees/remuneration received/ accrued in respect HŒ . g§. 31 ‘mM©, 2019 VH$ 31 ‘mM©, 2018 VH$ Sl. No. Am` H$s àH¥${V/H$_reZ/~«moH$aoO Nature of Income/Commission/Brokerage As on March 31, 2019 As on March 31, 2018 1 Q>¡Šg g§J«hU Tax Collections 3.34 3.90 2 B©-ñQ>¡_qnJ, n¢eZ, EnrdmB°, AÝ` E-stamping, Pension, APY, others 4.19 4.58 7.53 8.48

8. O_mam{e`mo§, A{JŒ_mo§, EŠgnmoµOa Am¡a EZnrE H$m g§Ho ÐrH$aU 8. CONCENTRATION OF DEPOSITS, ADVANCES, EXPOSURES AND NPAs H$. O_mam{e`mo§ H$m g§Ho ÐrH$aU… a. Concentration of Deposits: (` H$amo‹S> _| ` in crores)

Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 {ddaU 31st March, 2019 31st March, 2018 ~rg g~go ~‹So O_mH$Vm©Amo§ H$s Hw b O_mam{e`m± Total deposits of twenty largest depositors 24,811.15 33,091.41

~¢H$ H$s Hw b O_mam{e`mo§ _o§ ~rg ~‹So O_mH$Vm©Amo§ H$s O_mam{e`mo§ H$m à{VeV 13.44% 18.05% Percentage of Deposits of twenty largest depositors to Total Deposits Hw$b O_mam{e Total Deposits 184,567.84 183,315.95

ANNUAL REPORT 2018-19 189 I. A{JŒ_mo§ H$m gH|$ÐrH$aU… b. Concentration of Advances: (` H$amo‹S> _| ` in crores) Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 {ddaU 31st March, 2019 31st March, 2018 ~rg g~go ~‹So CYmaH$Vm©Amo§ Ho Hw b A{JŒ_ Total Advances to twenty largest Borrowers 38,264.33 37,326.07 ~¢H$ Ho Hw b A{JŒ_mo§ _o§ ~rg g~go ~‹So CYmaH$Vm©Amo§ Ho A{JŒ_mo§ H$m à{VeV* 22.24% 22.25% Percentage of Advances of twenty largest borrowers to Total Advances* * nr S>ãë`yAmo go nhbo Hw$b A{J«_m| H$mo Hw$b A{J«_m| Ho$ EH$ KQ>H$ Ho$ ê$n _| {b`m J`m h¡& Gross Advances before PWO is taken as one of the component of total advances. J. EŠgnmoµOa H$m gH|$ÐrH$aU… c. Concentration of Exposures: (` H$amo‹S> _| ` in crores) Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 {ddaU 31st March, 2019 31st March, 2018 ~rg g~go ~‹So CYmaH$Vm©Amo§/JŒmhH$moo§ H$moo Hw b EŠgnmoµOa* 38,774.95 38,013.00 Total exposure to twenty largest borrowers /customers* ~¢H$ Ho CYmaH$Vm©Amo§/JŒmhH$moo§ Ho Hw b EŠgnmoµOa _o§ A{JŒ_mo§ _o§ ~rg g~go ~‹So CYmaH$Vm©Amo§/JŒmhH$moo§ Ho EŠgnmoµOa H$m à{VeV** 20.12% 20.18% Percentage of Exposure of twenty largest borrowers to Total Exposure on borrowers/ customers** * J¡a-à{V~ÕVm dmbo G$Umo§ H mo Nmo‹SH$a * Excluding Non-committal Line of Credit ** nrSãë`yAmo go nhbo Hw b A{JŒ_m| H mo Hw b A{JŒ_m| Ho EH$ KQH$ Ho ê n _o§ ** Gross Advances before PWO is taken as one of the component {b`m J`m h¡& of total advances.

K. EZnrE H m g§Ho ÐrH aU… d. Concentration of NPAs: (` H$amo‹S> _| ` in crores)

Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 {ddaU 31st March, 2019 31st March, 2018 Mma ~‹So J¡.{Z.AmpñV ImVmo§ _o§ {Z{hV am{e Total Exposure to top four NPA Accounts 3,256.84 3,112.92

9. joÌ-dma J¡a-{ZînmXH$ AmpñV`m± 9. Sector-wise advances (` H$amo‹S> _| ` in crores) 31 _mM©, 2019 31 _mM©, 2018 31st March, 2019 31st March, 2018 Hw$b A{J«_ _| Hw$b A{J«_ _| Hw$b A{JŒ_ Hw$b A{JŒ_ HŒ . g§. joÌ gH$b EZnrE gH$b EZnrE Sl. No. Sector ~H$m`m ~H$m`m gH$b EZnrE H$m % gH$b EZnrE H$m% Outstanding Gross NPAs Outstanding Gross NPAs Total % of Gross Total % of Gross Advances NPAs to total Advances NPAs to Total Advances Advances H àmW{_H$Vm àmßV joÌ A Priority Sector 1 H¥${f VWm g§~Õ {HŒ `mH$bmn Agriculture and allied 21,939.66 2,772.82 12.64 22,807.32 2,063.39 9.05 activities

190 31 _mM©, 2019 31 _mM©, 2018 31st March, 2019 31st March, 2018 Hw$b A{J«_ _| Hw$b A{J«_ _| Hw$b A{JŒ_ Hw$b A{JŒ_ HŒ . g§. joÌ gH$b EZnrE gH$b EZnrE Sl. No. Sector ~H$m`m ~H$m`m gH$b EZnrE H$m % gH$b EZnrE H$m% Outstanding Gross NPAs Outstanding Gross NPAs Total % of Gross Total % of Gross Advances NPAs to total Advances NPAs to Total Advances Advances 2 àmW{_H$Vm àmßV joÌ CYma Ho ê$n _o§ nmÌ CÚ_mo§ H$moo A{JŒ_ Advances to industries 10,043.51 3,727.37 37.11 11,613.74 2,916.07 25.11 sector eligible as priority sector lending 3 godm Services 14,847.65 2,556.57 17.22 16,440.35 2,259.91 13.75 4 d¡`{º H$ G$U Personal loans 10,497.00 660.77 6.29 9,635.31 598.33 6.21 Cn-`moJ (H$) Sub-total (A) 57,327.82 9,717.53 16.95 60,496.72 7,837.70 12.96 I J¡a-àmW{_H$Vm àmßV B Non-Priority Sector 1 H¥ {f VWm g§~Õ {H«$`mH$bmn Agriculture and allied - - - - - 0.00 activities 2 CÚ_ Industry 49,192.81 25,427.63 51.69 68,323.12 29,139.64 42.65 H$. a. {dÚwV Power 11,497.04 3,382.04 29.42 10,099.71 3,053.82 30.24 I. b. AÝ`/Others 37,695.77 22,045.59 58.48 58,223.41 26,085.82 44.80 3 godm Services 17,024.68 1,728.77 10.15 6,456.77 934.98 14.48 4 d¡`{º H$ G$U Personal loans 32,237.60 4,584.41 14.22 8,950.84 523.32 5.85 Cn-`moJ (I) Sub-total (B) 98,455.09 31,740.81 32.24 83,730.73 30,597.93 21.81 Hw b (H$+I) Total (A+B) 155,782.91 41,458.34 26.61 144,227.45 38,435.63 26.65 * ~¢H Cn`w©º àmên _o§ , CZ Cn joÌmo§ H m ^r àH QZ H aZm h¡ {OgH m ~H m`m A{JŒ_ Cg joÌ Ho ~H m`m Hw b A{JŒ_mo§ H m 10 à{VeV go A{YH h¡& CXmhaU Ho {bE, `{X IZZ CÚmoJ Ho {bE ~¢H H m ~H m`m A{JŒ_ CÚmoJ Ho joÌ _o§ ~H m`m Hw b A{JŒ_mo§ H m 10 à{VeV go A{YH h¡, Vmo Cgo Cnamoº àmên _o§ "CÚmoJ' joÌ Ho A§VJ©V AbJ ên go IZZ Ho A{JŒ_ ~H m`o H m {ddaU XoZm h¡& *Banks may also disclose in the format above, sub sectors where the outstanding advances exceeds 10 percent of the outstanding total advances to that sector. For instance, if a bank’s outstanding advances to the mining industry exceed 10 percent of the outstanding total advances to ‘Industry’ sector it should disclose details of its outstanding advances to mining separately in the format above under the ‘Industry’ sector.

ANNUAL REPORT 2018-19 191 10. J¡a-{ZînmXH$ AmpñV`mo§ _o§ CVma-M‹Tmd 10. Movement of NPAs (` H$amo‹S> _|/` in crores) Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 {ddaU 31st March, 2019 31st March, 2018

1 Aà¡b 2018 H mo gH$b EZnrE 22,213.44 17,045.22 Gross NPAs as on April 1, 2018 df© Ho Xm¡amZ n[adY©Z 6,282.60 14,576.86 Additions during the year Cn-`moJ (H$) Sub-Total [A] 28,496.04 31,622.08 KQmE§ Less : [i] CÞ`Z Upgradations 947.04 482.84

[ii] dgybr (CÞ`Z {H$E JE ImVmo§ _o§ H$s JB© dgybr H$moo Nmo‹SH$a) 835.88 697.43 Recoveries [excluding recoveries made from upgraded accounts] [iii] VH$ZrH$s/{ddoH$nyU© ~Å>o ImVo Technical/Prudential Write-offs 5,732.53 8,216.51

[iv] Cnamoº (iii) _o§ AmZodmbmo§ H$mo Nmo‹SH$a ~Åm ImVo Smbo JE 256.91 11.86 Write-offs other than those under (iii) above Cn-`moJ [I] Sub-total [B] 7,772.36 9,408.64

31 _mM©, 2019 H$moo gH$b EZnrE B{Veof (H$ -I) 20,723.68 22,213.44 Gross NPAs as on March 31, 2019 (A – B) [1] DBOD n{anÌ DBOD.BP.BC. No.46 / 21.04.048 / 2009- [1] Gross NPAs as per item 2 of Annex to DBOD Circular 10 {XZm§{H$V 24 {gV§~a, 2009 Ho AZw~§Y H$s _X g§»`m 2 Ho AZwgma DBOD.BP.BC.No.46/21.04.048/2009-10 dated gH b EZnrE, {Og_o§ gH$b A{JŒ_mo§, {Zdb A{JŒ_, gH$b EZnrE Am¡a September 24, 2009 which specifi ed a uniform method to compute Gross Advances, Net Advances, Gross NPAs and {Zdb EZnrE H$s JUZm H aZo Ho {bE EH g_mZ àUmbr {Z{X©îQ h¡& Net NPAs. [ ] 2 VH ZrH$s `m {ddoH nyU© amBQ-Am°\ J¡a-{Zînm{XV G$U H$s am{e h¡ Omo [2] Technical or prudential write-off is the amount of non- emImAmo§ H$s ~{h`mo§ _o§ ~H m`m am{e h¢, bo{H Z àYmZ H m`m©b` ñVa na performing loans which are outstanding in the books of the (nyar Vah `m Am§{eH ên go) {Ogo amBQ-Am°\ {H `m h¢& VH ZrH$s amBQ- branches, but have been written-off (fully or partially) at Am°\ {H E JE ImVmo§ H mo gm§{d{YH boIm narjH mo§ Ûmam à_m{UV {H `m Head Offi ce level. Amount of Technical write-off should OmZm h¡& (h_mao n{anÌ g§X^© DBOD.No.BP.BC.64/21.04.048 be certifi ed by statutory auditors. (Defi ned in our circular / 2009-10 {XZm§{H V 1 {Xg§~a, 2009 H mo A{JŒ_mo§ Ho {bE àmdYmZ reference DBOD.No.BP.BC.64/21.04.048/2009-10 dated _o§ n{a^m{fV {H `m J`m h¡&) December 1, 2009 on Provisioning Coverage for Advances) BgHo Abmdm, ~¢H mo§ H mo ZrMo {bIo àmên Ho AZwgma VH ZrH$s amBQ Am°\ H$m Further, Banks should disclose the stock of technical write offs ñQm°H Am¡a CgHo ~mX H$s JB© dgybr H m àH QZ H aZm h¡: and the recoveries made thereon as per the format below: (` H$amo‹S> _|/` in crores) Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 {ddaU 31st March, 2019 31st March, 2018

1 Aà¡b, 2018 H mo VH$ZrH$s/{ddoH$nyU© ~Åo ImVo H m àma§{^H$ eof 16,222.19 8,396.31 Opening balance of Technical/ Prudential written-off accounts as at April 1, 2018 OmoSo: df© Ho Xm¡amZ VH$ZrH$s/{ddoH$nyU© ~Åo ImVo (~H$m`m eof _| `0.45 H$amo‹S> H$s d¥{Õ g{hV) Add: Technical/Prudential write-offs during the year (includes `0.45 crores increase in 5,732.53 8,216.52 the outstanding balance of technical/prudential written off during the year) nrSãë`yAmo Ho$ ê$n _| dJuH¥$V H$aZo Ho$ ~mX nrS>ãë`yAmo ImVm| _| ~H$m`m d¥{Õ - - Increase in balance in PWO accounts after classifying as PWO Cn-`moJ (H$) Sub-total (A) 21,954.72 16,612.83

192 Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 {ddaU 31st March, 2019 31st March, 2018 KQmE§: df© Ho Xm¡amZ VH$ZrH$s/{ddoH$nyU© ~Åo ImVo go H$s JB© dgybr (I) Less: Recoveries made from previously technical/prudential written-off accounts during 703.84 317.34 the year (B)

KQmE§: df© Ho Xm¡amZ nrS>ãë`yCmo ImVm| _| amBQ> Am°\$ {H$`m J`m ~H$m`m 516.22 73.30 Less: Balance written off in PWO accounts during the year `Wm 31 _mM©, 2019 H mo A§{V_ eof (H$-I) Closing balance as at March 31, 2019 (A–B) 20,734.66 16,222.19 11. {dXoer AmpñV`m±, J¡a-{ZînmXH$ AmpñV`m± Ed§ amOñd 11. Overseas Assets, NPAs and Revenue (` H$amo‹S> _|/` in crores) Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 {ddaU 31st March, 2019 31st March, 2018 Hw$b AmpñV`m± Total Assets - - Hw$b J¡a-{ZînmXH$ AmpñV`m± Total NPAs - - Hw$b amOñd Total Revenue - - 12. df© 2018-19 Ho Xm¡amZ, H mo `1761.08 H amo‹S ~H m`m am{e Ho 12. During the year 2018-19, 162 cases of fraud, involving gmW `1951.10 H$s 162 H nQ Ho _m_bo ^m[a~¢ H$mo [anmoQ© H$s JB© & `1951.10 crores, with outstanding balance of `1761.08 crores were reported to RBI. Total provision made against ` BZ _m_bmo§ hoVw Hw b 1686.92 H amo‹S H m Hw b àmdYmZ {H `m these cases is `1686.92 crores. J`m& During the previous year 2017-18, 99 cases of fraud, df© 2017-18 Ho Xm¡amZ, H mo `1381.78 H amo‹S ~H m`m am{e Ho gmW involving `1296.23 crores, with outstanding balance of `1296.23 H$s 99 YmoImYSr _m_bmo§ H$s ^m[a~¢ H mo [anmoQ© H$s JB© & `1381.78 crores were reported to RBI. Total provision made `1348.37 H amo‹S Ho BZ _m_bmo§ hoVw nyam àmdYmZ {H `m J`m& against these cases is `1348.37 crores. 13. àm`mo{OV BVa VwbZ-nÌ Egnrdr (boIm§H Z _mZX§Smo§ Ho AZwgma 13. Off-Balance Sheet SPVs sponsored (which are required {OZH m g_oH Z {H `m OmZm h¡) to be consolidated as per accounting norms) àm`mo{OV Egnrdr H$m Zm_ Name of the SPV Sponsored Xoer Domestic {dXoer Overseas eyÝ` NIL eyÝ` NIL 14. àdV©H ~¢H Ho ên _o§ à{V^y{VH aU… 14. Securitisation as Originating Bank EH àdV©H ~¢H Ho ên _o§ ~¢H Ho à{V^yVrH aU boZXoZ Ho VhV gyMZm Information under Securitisation transaction of the Bank àñVwV H a aho h¢& as a Originating Bank is given below : (` H$am‹oS> _|/g§. ` in crores/No.) H«$. g§. 31 ‘mM©, 2019 31 ‘mM©, 2018 Sl. No. {ddaU Particulars 31st March, 2019 31st March, 2018 1 à{V^y{VH$aU boZ-XoZmo§ Ho {bE ~¢H$ Ûmam àm`mo{OV Egnrdr H$s g§»`m* - - No. of SPVs sponsored by the bank for securitization transactions* 2 ~¢H$ Ûmam àm`mo{OV Egnrdr H$s ~{h`mo§ Ho AZwgma à{V^yV AmpñV`mo§ H$s Hw b AmpñV - - Total amount of securitized assets as per books of the SPVs sponsored by the bank 3 VwbZ-nÌ H$s VmarI H$moo E_AmaAma H$m AZwnmbZ H$aZo Ho {bE ~¢H$ Ûmam à{VYm[aV EŠgnmoµOa H$s Hw b am{e Total amount of exposures retained by the bank to comply with MRR as on the date of balance sheet H$) a) VwbZ-nÌ go BVa EŠgnmoµOa Off-balance sheet exposures àW_ hm{Z First loss AÝ` Others - - I) b) VwbZ-nÌ _| EŠgnmoµOa On-balance sheet exposures àW_ hm{Z First loss AÝ` Others

ANNUAL REPORT 2018-19 193 H«$. g§. 31 ‘mM©, 2019 31 ‘mM©, 2018 Sl. No. {ddaU Particulars 31st March, 2019 31st March, 2018 4 E_AmaAma Ho Abmdm à{V^y{VH$aU boZ-XoZmo§ H$s EŠgnmoµOa am{e Amount of exposures to securitization transactions other than MRR H$) a) VwbZ-nÌ go BVa EŠgnmoµOa Off-balance sheet exposures i) ñd-AnZo hr à{V^y{VH$aU H$moo EŠgnmoµOa Exposure to own securitizations àW_ hm{Z First loss hm{Z Loss ii) V¥Vr` nmQr© à{V^y{VH$aU H$moo EŠgnmoµOa Exposure to third party securitizations - - àW_ hm{Z First loss AÝ` Others I) b) VwbZ-nÌ _| EŠgnmoµOa On-balance sheet exposures i) ñd-AnZo hr à{V^y{VH$aU H$moo EŠgnmoµOa Exposure to own securitizations àW_ hm{Z First loss AÝ` Others ii) V¥Vr` nmQr© à{V^y{VH$aU H$moo EŠgnmoµOa Exposure to third party securitizations àW_ hm{Z First loss AÝ` Others 15. A§V… g_yh EŠgnmoOa 15. Intra-Group Exposures g_yh BH mB©`mo§ hoVw EŠgnmoOa {ZåZdV h¡: Exposure to the group entities is as under: (` H$amo‹S> _|/` in crores)

H«$. g§. Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 Sl. No. {ddaU 31st March, 2019 31st March, 2018 i) A§V… g_yh EŠgnmo‹Oa H$s Hw b am{e Total amount of intra-group exposures - - ii) erf© 20 A§V… g_yh EŠgnmo‹Oa H$s Hw b am{e Total amount of top 20 intra-group - - exposures iii) CYmaH$Vm©Amo§/JŒmhH$mo§ na ~¢H$ Ho Hw b EŠgnmo‹Oa _o§ A§V… g_yh EŠgnmo‹Oa H$m à{VeV - - Percentage of intra-group exposures to total exposure on borrowers/customers iv) A§V…-g_yh EŠgnmo‹Oa na gr_m Vmo‹SZo H$m {ddaU Am¡a Cg na H$s JB© {Z`m_H$ H$ma©dmB©, `{X H$moB© hmo - - Details of breach of limits on intra-group exposures and regulatory action thereon, if any

16. O_mH$Vm© {ejm d OmJê$H$Vm {Z{Y _o§ A§VaU (SrB©EE\ ) 16. Transfers to Depositor Education and Awareness Fund (DEAF) ~¢H$ Zo SrB©EE\ H$mo {ZåZdV am{e A§V[aV H$s h¡: The Bank has transferred the below mentioned amount to DEAF. (` H$amo‹S> _| ` in crores) Particulars 31 ‘mM©, 2019 31 ‘mM©, 2018 {ddaU 31st March, 2019 31st March, 2018 SrB©EE\ H$moo A§V[aV am{e H$m àma§{^H$ eof 99.67 92.49 Opening balance of amounts transferred to DEAF OmoSo: df© Ho Xm¡amZ SrB©EE\ H$moo A§V[aV am{e 17.25 9.45 Add : Amounts transferred to DEAF during the year KQmE§: Xmdmo§ Ho g§~§Y _o§ SrB©EE\ Ûmam à{Vny{V© H$s JB© am{e 0.36 2.27 Less : Amounts reimbursed by DEAF towards claims SrB©EE\ H$moo A§V[aV am{e H$m A§{V_ eof 116.56 99.67 Closing balance of amounts transferred to DEAF

194 17. Aa{jV {dXoer _wÐm EŠgnm‹oOa: 17. Unhedged Foreign Currency Exposure ~¢H$ _o§ AnZo CYmaH$Vm©Amo§ Ho Aa{jV {dXoer _wÐm EŠgnmoOa go CËnÞ The Bank has in place a policy on managing credit risk arising out of unhedged foreign currency exposures of its borrowers. hmoZodmbr Omo{I_ Ho à~§YZ na EH Zr{V h¡& Bg Zr{V H$m CÔoí` `h h¡ The objective of this policy is to maximize the hedging on {H$ CYmaH Vm©Amo§ Ho {dXoer _wÐm CËnmX Ho nmoQ©\ mo{bAmo§ H$s g_rjm H$aVo foreign currency exposures of borrowers by reviewing their hwE CZHo {dXoer _wÐm EŠgnmoOa H$mo A{YH$V_ a{jV H$aZm Am¡a CÝho§ foreign currency product portfolio and encouraging them to Aa{jV ^mJ H$moo a{jV H aZo hoVw ào[aV H$aZm& hedge the unhedged portion. Zr{V Ho AZwgma, Aa{jV {dXoer _wÐm EŠgnmoOa H$m _yë`m§H$Z CYmaH$Vm© In line with the policy, assessment of unhedged foreign currency Ho _yë`m§H Z H$m EH ^mJ h¡ Am¡a Bgo gr_mAmo§ Ho àñVmd Ho g_` `m exposure is a part of assessment of borrowers and is undertaken g_rjm H aVo g_` na {H$`m OmVm h¡& BgHo Abmdm, ~¢H g^r JŒmhH mo§ while proposing limits or at the review stage. Additionally, at Ho {bE gr_m _§Oya H$aVo g_`, CYmaH$Vm© H$m Am§V[aH loUrH$aU, the time of sanctioning limits for all clients, the Bank stipulates a limit on the unhedged foreign currency exposure of the client AmH$ma, ñdm^m{dH ~Mmd ì`dñWmAmo§ H$s g§^mì`Vm, JŒmhH H$s Hw$b (as a % of total foreign currency exposure sanctioned by the CYma Ho g§~§Y _o§ Aa{jV {dXoer _wÐm EŠgnmoOa H m g§~§{YV AmH$ma Bank). After considering factors such as internal rating of Am{X Bg Vah Ho VÏ`mo§ na {dMma H$aZo Ho ~mX hr CYmaH$Vm© Ho {dXoer the borrower, size, possibility of natural hedging, relative size Aa{jV _wÐm EŠgnmoOa H$s gr_m {ZYm©[aV H$aVm h¡ (`Wm ~¢H Ûmam _§Oya of unhedged foreign currency exposure with respect to total Hw$b {dXoer _wÐm EŠgnmoOa H$m %)& BgHo Abmdm ~¢H AnZo g§nyU© borrowings of the client, etc. Further, the Bank reviews the nmoQ©\ mo{b`mo Ho A§VJ©V Aa{jV {dXoer _wÐm EŠgnmoOa H$s Amd{YH unhedged foreign currency exposure across its portfolio on a AmYma na g_rjm H$aVm h¡& BgHo gmW hr ~¢H ^m[a~¢ Ho dV©_mZ periodic basis. The Bank also maintains incremental provision towards the unhedged foreign currency exposures across of its {Xem{ZXo©emo§ Ho AZwgma AnZo CYmaH Vm©Amo§ Ho Aa{jV {dXoer _wÐm borrowers in line with the extant RBI guidelines. EŠgnmoOa Ho g§~§Y _o§ d¥{Õerb àmdYmZ aIVm h¡& Further, the bank has maintained provision of `23.85 crores BgHo Abmdm, ~¢H Zo `Wm 31 _mM©, 2019 H$mo AnZo Aa{jV {dXoer (Previous year `26.01 crores) and additional capital of `18.18 _wÐm EŠgnmoOa Ho ImVo _o§ `23.85 H$amo‹S (JV df© `26.01 H$amo‹S) crores (Previous year `16.22 crores) on account of Unhedged H$m àmdYmZ Am¡a `18.18 H$amo‹S (JV df© 16.22 H$amo‹S) H$s A{V[aº Foreign Currency Exposure of its borrowers as at March 31, ny§Or aIr h¡& 2019. 18. Mb{Z{Y H$daoO AZwnmV 18. Liquidity Coverage Ratio: Amdí`H$ gyMZm {ZåZdV h¡: The necessary information is as under: (` H$amo‹S> _|/` in crores) 31 ‘mM©, 2019 31 ‘mM©, 2018 31st March, 2019 31st March, 2018 {ddaU Hw b J¡a-^m[aV Hw b ^m[aV _yë` Hw b J¡a-^m[aV Hw b ^m[aV _yë` Particulars _yë` (Am¡gV) _yë` (Am¡gV) Total Un- (Am¡gV) Total (Am¡gV) Total Weighted Total Weighted weighted Value Un-weighted Value (average) Value (average) (average) Value (average) CÀM JwUdÎmm Mb AmpñV`m± High Quality Liquid Assets 1 Hw$b CÀM JwUdÎmm AmpñV`m§ (EMŠ`yEbE) 32,755.01 32,584.93 39,668.86 39,481.85 Total High Quality Liquid Assets (HQLA) ZH$Xr ~{hJ©_Z Cash Outﬂ ows 2 IwXam O_mE§ Am¡a bKw H$mamo~ma JŒmhH$moo§ go O_mE§, {Og_o§ go Retail deposits and deposits from small business 104,625.01 10,264.95 101,695.90 10,010.55 customers, of which: (i) pñWa O_mE§ Stable deposits 3,951.08 197.55 3,180.86 159.04 (ii) KQmE§- pñWa O_mE§ Less stable deposits 100,673.93 10,067.39 98,515.03 9,851.50 3 Aa{jV WmoH$ {Z{Y`Z, {Og_o§ go 38,466.18 16,145.33 59,549.27 24,707.48 Unsecured wholesale funding, of which: (i) n[aMmbZJV O_mE§ (g^r à{VnjH$ma) Operational deposits (all counterparties) - - - -

ANNUAL REPORT 2018-19 195 31 ‘mM©, 2019 31 ‘mM©, 2018 31st March, 2019 31st March, 2018 {ddaU Hw b J¡a-^m[aV Hw b ^m[aV _yë` Hw b J¡a-^m[aV Hw b ^m[aV _yë` Particulars _yë` (Am¡gV) _yë` (Am¡gV) Total Un- (Am¡gV) Total (Am¡gV) Total Weighted Total Weighted weighted Value Un-weighted Value (average) Value (average) (average) Value (average) (ii) J¡a-n[aMmbZJV O_mE§ (g^r à{VnjH$ma) Non-operational deposits (all counterparties) 38,466.18 16,145.33 59,549.27 24,707.48 (iii) Aa{jV G$U Unsecured debt - - - - 4 O_mZVr WmoH$ {Z{Y`Z Secured wholesale funding 2,220.86 - 8,256.55 - 5 A{V[aº Amdí`H$VmE§, {Og_o§ go Additional requirements, of which 30,762.12 4,121.26 26,594.31 3,512.23 (i) ì`wËnÞ EŠgnmo‹Oa Am¡a AÝ` g§nm{œ©H$ Amdí`H$VmAmo§ g§~§Yr ~{hJ©_Z Outfl ows related to derivative exposures and 3.43 3.43 6.64 6.64 other collateral requirements (ii) G$U CËnmXmo§ na {Z{Y`Z H$s hm{Z go g§~§{YV ~{hJ©_Z Outfl ows related to loss of funding on debt products - - - - (iii) G$U VWm Mb gw{dYm Credit and liquidity facilities 30,758.69 4,117.83 26,587.67 3,505.59 6 AÝ` g§{dXmJV {Z{Y`Z ~mÜ`VmE§ Other contractual funding obligations 232.69 232.69 544.22 544.22 7 AÝ` AmH$pñ_H$ {Z{Y`Z ~mÜ`VmE§ Other contingent funding obligations 21,127.80 699.39 26,692.71 859.50 8 Hw b ZH$Xr ~{hJ©_Z Total Cash Outfl ows 197,434.66 31,463.61 223,332.96 39,633.99 ZH$Xr A§Và©dmh Cash Infl ows 9 O_mZVr CYma Secured lending - - - - 10 g§nyU© {ZînmXZ EŠgnmo‹Oa go A§Và©dmh Infl ows from fully performing exposures 4,747.38 2,497.72 3,049.61 1,674.50 11 AÝ` ZH$Xr A§Và©dmh Other cash infl ows 7,437.06 7,068.59 11,117.73 10,805.31 12 Hw$b ZH$Xr A§Và©dmh Total Cash Infl ows 12,184.44 9,566.31 14,167.34 12,479.81 Hw b g_m`mo{OV _yë` Total Adjusted Value 13 Hw$b EMŠ`yEbE Total HQLA 32,755.01 32,584.93 39,668.86 39,481.85 14 Hw$b {Zdb ZH$Xr ~{hà©dmh Total Net Cash Outfl ows 185,250.23 21,897.31 209,165.62 27,154.18 15 Mb{Z{Y H$daoO AZwnmV (%) Liquidity Coverage Ratio (%) 148.81% 145.40%

1. EbgrAma n[a^mfm: 1. LCR Defi nition: Mb{Z{Y H$daoO AZwnmV (EbgrAma) H$mo {Zdb ewÕ ZH$Xr ~{hà©dmh Liquidity Coverage Ratio (LCR) is defi ned as the ratio of Ho {bE EMŠ`yEbE (CÀM JwUdÎmm dmbo Mb g§n{Îm) Ho AZwnmV Ho HQLA (High Quality Liquid Assets) to net cash outfl ows. ê$n _o§ n{a^m{fV {H$`m J`m h¡& BgH$m CÔoí` `h h¡ {H$ J§^ra VabVm It aims to ensure that the bank maintains adequate level VZmd Ho A§VJ©V 30 H¡$bo§Sa {XZ H$s Ad{Y Ho {bE nZr VabVm of unencumbered HQLAs that can be converted into cash to meet its liquidity needs for a 30 calendar day Oê$aVmo§ H$mo nyam H$aZo Ho {bE ^ma a{hV EMŠ`yEbE Ho n`m©ßV ñVa H$s time horizon under a signifi cantly severe liquidity stress ~¢H$ AZwa{jV aIZm gw{Z{üV H$ao§, {Ogo ZH$Xr _o§ n{ad{V©V {H$`m Om scenario. gHo & EbgrAma H$s JUZm Ho {bE {Xem{ZXo©e 1 OZdar 2015 go bmJy {H$E The Guidelines for computation of LCR was implemented with effect from 1st Jan 2015. The minimum LCR JE Wo& 1 OZdar 2015 H$mo Ý`yZV_ EbgrAma Amdí`H$Vm 60% go requirement increased from 60% as on 1st Jan, 2015 to ~‹TH$a 1 OZdar 2019 VH$ 100% hmo JB© Wr& H¡$bo§Sa df© 2016, 100% as on 1st Jan, 2019. The LCR requirement for the 2017 Am¡a 2018 Ho {bE EbgrAma H$s Amdí`H$Vm H«$_e… 70%, calendar years 2016, 2017 & 2018 was 70%, 80% & 90% 80% Am¡a 90% Wr& ~¢H$ EbgrAma Ho Amdí`H$ ñVa H$mo ~ZmE respectively. The Bank has been maintaining suffi cient aIZo Ho {bE n`m©ßV Vab g§n{Îm ~ZmE hwE h¡& 1 OZdar, 2017 go, liquid assets to maintain the required level of LCR. From Ama~rAmB© {Xem{ZXo©e Ho AZwgma ~¢H$ à{V{XZ Ho AmYma na EbgrAma 1st January, 2017, as per the RBI guidelines bank is H$s JUZm H$a ahm h¡& calculating LCR on a daily basis. 1.1 EbgrAma Ho$ KQH$: 1.1 Components of LCR: EbgrAma n{aUm_ Ho à_wI KQH$, AJbo 30 {XZmo§ Ho g_` The major components of LCR result are level {j{VO Ho ^rVa CÀM JwUdÎmm dmbo Vab AmpñV`m±, ZH$Xr of High Quality Liquid Assets, Cash Infl ows and A§Vdm©h Am¡a {Zdb ZH$Xr ~{hà©dmh Ho ñVa h¢ & Net Cash Outfl ow within next 30 days’ time horizon. H$. EMŠ`yEbE: CÀM JwUdÎmm dmbo Vab AmpñV`m± _o§ em{_bh¢: a. HQLA: The High Quality Liquid Assets  ñVa-1 AmpñV`m± comprises of :  ñVa-2 AmpñV`m±  Level 1 assets  ñVa-3 AmpñV`m±  Level 2A assets ñVa1 H$s AmpñV`mo§ _o§ em{_b h¢:  Level 2B assets  Amdí`H$ grAmaAma Ho A{V{aº ZH$Xr ^§Sma g{hV The Level 1 assets comprise of: ZH$X&  Cash including cash reserves in excess of  Ý`yZV_ EgEbAma Amdí`H$Vm Ho A{V{aº gaH$mar required CRR. {gŠ`mo{aQrO&  Government Securities in excess of minimum  A{Zdm`© EgEbAma Amdí`H$VmAmo§ _o§ gaH$mar SLR requirement. à{V^y{V`m±, gr_m§V ñWm`r gw{dYm(E_EgE\) Ho  Government securities within the mandatory VhV ^maVr` {aOd© ~¢H$ Ûmam {dñVma hoVw AZw_{V SLR requirement, to the extent allowed by (31/03/2019 H$mo EZSrQrEb Ho 2% Ho ê$n _o§ RBI under Marginal Standing Facility (MSF) E_EgE\ Ho {bE AZw_{V h¡)& (2% of NDTL is allowed for MSF as on  Mb{Z{Y àmßV H$aZo H$s gw{dYm hoVw Mb{Z{Y 31.03.2019). H$daoO AZwnmV (E\ EEbEbgrAma) (31.03.2019  Facility to avail liquidity for Liquidity H$mo E\ EEbEbgrAma Ho {bE EZSrQrEb Ho 13% Coverage Ratio (FALLCR) (13% of NDTL H$s AZw_{V h¡) is allowed for FALLCR as on 31.03.2019).

ANNUAL REPORT 2018-19 197  0% Omo{I_ ^ma Ho gmW g§à^w Ûmam Omar/Jma§QrH¥$V  Marketable securities issued/guaranteed by {dnUZ `mo½` à{V^y{V`m± & sovereigns with 0% risk weight. {dÎmr` df© Ho {bE ~¢H$ Ho ñVa 1 AmpñV`mo§ H$m dm{f©H$ Am¡gV The yearly average of Level 1 assets of the Bank for ` 31,626.56 H$amo‹S ({nNbo {dÎmr` df© `38,442.86 H$amo‹S) the fi nancial year were `31,626.56 Crores (previous fi nancial year `38,442.86 Crores) which accounts Omo Hw$b Am¡gV EMŠ`yEbE 32,755.01 ({nNbo {dÎmr` df© for 96.55% (previous fi nancial year 96.91%) of 39,688.86 H$amo‹S énò) H$amo‹S H$m 96.55% ({nNbo {dÎmr` total average HQLA of `32,755.01 Crores (previous df© 96.91%) h¡& fi nancial year `39,688.86 Crores).

ñVa 2 E AmpñV`mo§ _o§ em{_b h¢: The Level 2A assets comprise of:  ~mhar aoqQJ EOo§{g`mo§ Ûmam J¡a-{dÎmr` H$m°nmo©aoQ ~m°ÝS {Ogo  Non-Financial Corporate Bonds rated AA - or EE- `m Cggo D$na H$s aoqQJ Xr JB© h¡& above by external rating agencies.  ~mhar aoqQJ EOo§{g`mo§ Ûmam Zm°Z-\$mBZo§{e`b H$_{e©`b  Non-Financial Commercial Papers rated AA - or nong© {OÝho§ EE `m Bggo D$na H$s aoqQJ àmßV h¡& above by external rating agencies.   Marketable securities representing claims on or Xmdmo§ go g§~§{YV {dnUZ`mo½` à{V^y{V`mo§ na `m amOH$s` claims guaranteed by sovereigns, Public Sector gmd©O{ZH$ joÌ g§ñWmE± (nrEgB©) `m ~hwnjr` {dH$mg ~¢H$mo§ Entities (PSEs) or multilateral development banks Ûmam Jma§QrH¥ V Xmdmo§ Ho {bE ~ogb II _mZH$sH¥ V X¥pîQH$moU that are assigned 20% risk weight under the Ho VhV 20% Omo{I_ ^ma gm¢nm J`m h¡, ~eVo© {H$ do ~¢H$/ Basel II Standardised Approach for credit risk, {dÎmr` g§ñWmZ/EZ~rE\ gr `m BgHo {H$gr ^r gh`moJr provided that they are not issued by a bank/ Ûmam Omar Zht {H$E JE hmo§ & fi nancial institution/NBFC or any of its affi liates. Bank is applying 15% haircut on Level 2A assets as ^m{a~¢ Ho _m¡OyXm {Xem{ZXo©emo§ Ho AZwgma, ~¢H$ 2E ñVa H$s per extant guidelines of RBI. The share of average AmpñV`mo§ na 15% hoàH$Q bmJy H$a ahm h¡ & ñVa 2E AmpñV`mo§ Level 2A assets is 3.44 % (`1126.14 crores) [previous Ho Am¡gV H$s {hñgoXmar Hw$b Am¡gV EMŠ`yEbE H$m 3.44% fi nancial year 3.07% (`1217.13 Crores)] of total ({nNbo {dÎm df© 3.07%) `1126.14 H$amo‹S h¡ (JV df© average HQLA. 1217.13 H$amo‹S énò)& The Level 2B assets comprise of:

ñVa 2~r g§n{Îm _o§ em{_b h¢ :  Equity Shares not issued by a bank/fi nancial  {H$gr ~¢H$/{dÎmr` g§ñWmZ/EZ~rE\ gr `m CgH$s {H$gr ^r institution/NBFC or any of its affi liated entities g§~Õ g§ñWm Omar Zht {H$E JE Am¡a EZEgB©/grEZEŠg, and included in NSE CNX Nifty and/or S&P {ZâQr Am¡a/`m Eg E§S> nr ~rEgB© go§goŠg gyMH$m§H$mo§ _o§ BSE Sensex indices. em{_b Bp¹Qr eoà&  Corporate debt securities (including commercial  paper) not issued by a bank/fi nancial institution/ EH$ ~¢H$/{dÎmr` g§ñWm/nrSr/EZ~rE\ gr `m CgHo g§~Õ PD/NBFC or any of its affi liated entities and g§ñWmAmo§ _o§ go {H$gr Am¡a Ûmam Omar Zht {H$`m J`m E + having a long-term credit rating from an eligible Am¡a ~r~r~r `m XrKm©d{Y aoqQJ H$s AZwnbãYVm _o§ XrKm©d{Y Credit Rating Agency between A + and BBB - aoqQJ H$s JwUdÎmm Ho g_H$j bKwAd{Y aoqQJ Ho ~rM {H$gr or in the absence of a long term rating, a short- nmÌ aoqQJ EOo§gr Ûmam XrKm©d{Y aoqQJ àmßV H$m°nmo©aoQ G$U term rating equivalent in quality to the long-term à{V^y{V`mo§ (dm{UpÁ`H$ nÌ g{hV)& rating. ^m{a~¢ Ho _m¡OyXm {Xem{ZXo©emo§Ho AZwgma, ~¢H$ 2~r ñVa na Bank is applying 50% haircut on Level 2B assets as per extant guidelines of RBI. The share of average 50% hoàH$Q bmJy H$a ahm h¡& ñVa 2E AmpñV`mo§ Ho Am¡gV Level 2B assets is 0.01% (`2.32 Crores) [previous H$s {hñgoXmar Hw$b Am¡gV EMŠ`yEbE {OZ_o§ _w»`V… ZoeZb fi nancial year 0.02% (`8.87 Crores)] of total average ñQmH$ EŠgMo§O grEZEŠg, {ZâQr Am¡a/`m Eg E§S nr ~rEgB© HQLA and comprises mainly of equity shares of go§goŠg _o§ gyMr~Õ em{_b eoàmo§ H$m 0.01% (`2.32 H$amo‹S listed corporates which are listed in National Stock Omo {nNbm {dÎmr` df© _o§ 0.02% (`8.87 H$amo‹S ) Wm& Exchange CNX NIFTY and/or S&P BSE Sensex.

198 ~¢H$ {dÎm df© 2018-19 Ho {bE EMŠ`yEbE Ho n`m©ßV ñVa H$mo Bank has maintained a comfortable level of HQLA ~ZmE aIm h¡ & BgH$m {ddaU ZrMo àñVwV h¡: for the ﬁ nancial year 2018-19. Details are furnished below: (` H$amo‹S _o§) (` in Crores) Average HQLA for Average HQLA for 2018-19 Ho {bE 2017-18 Ho {bE Am¡gV 2018-19 2017-18 {ddaU Am¡gV EMŠ`yEbE EMŠ`yEbE Particulars Amount Weighted Amount Weighted aH$_ ^m{aV am{e aH$_ ^m{aV am{e Amount Amount 31, 626.56 31,626.56 38,442.86 38,442.86 ñVa 1 Level 1 31,626.56 31,626.56 38,442.86 38,442.86 ñVa 2 E 1126.14 957.22 1217.13 1034.55 Level 2A 1126.14 957.22 1217.13 1034.55 ñVa 2 ~r 2.32 1.16 8.87 4.44 Level 2B 2.32 1.16 8.87 4.44 Hw$b EMŠ`yEbE 32 ,755.02 32,584.93 39,668.86 39,481.85 Total HQLA 32,755.02 32,584.93 39,668.86 39,481.85

I. ZH$Xr A§Và©dmh: b. Cash infl ows:  O_mZVr CYma go A§Và©dmh:Bg_o§ bKw Ad{Y CYma  Infl ows from Secured Lending: It consists of QrAmaBnrEg, grEEbEb em{_b h¢& short term lending such as TREPS, CALL.  nyar Vah go {ZînmXZ H$aZo dmbo EŠgnmo‹Oa go  Infl ows from fully performing exposure: A§Và©dmh: 30 {XZmo§ Ho ^rVa G$U MwH$m¡Vr AZwgyMr Scheduled loan repayment within 30 days has na {dMma {H$`m J`m h¡& been considered.  AÝ` ZH$X A§Và©dmh: Bg_o§ Vab å`wMwAb \§$S/  Other Cash infl ows: It includes investments O_m à_mUnÌ {OÝho§ {H$gr ^r g_` àmßV {H$`m Om in Liquid Mutual Funds/Certifi cate of gHo , em{_b h¢ & Deposits etc. which can be liquidated any time.

J. ZH$X ~{hà©dmh: EAbgrAma Ho à`moOZ Ho {bE c. Cash Outfl ows: The outfl ows for the purpose ~{hà©dmh H$mo {ZåZ{b{IV Xmo à_wI _o§ lo{U`mo§ _o§ of LCR have been divided in to following major {d^m{OV {H$`m J`m h¡: categories:  IwXam O_m go ~{hà©dmh: EH$ àmH¥{VH$ ì`{º  Outfl ows from retail deposits: All demand Ûmam ~¢H$ Ho nmg aIo JE _m§J Am¡a gmd{Y O_mAmo§ and term deposits placed with the Bank H$mo IwXam O_m Ho ê$n _o§ _mZm OmVm h¡& IwXam O_m by a natural person are considered as retail go hmoZo dmbo ~{hà©dmh H$mo pñWa {Snm°{OQ Am¡a deposits. The outfl ows from retail deposit are H$_ pñWa {Snm°{OQ _o§ {d^m{OV {H$`m OmVm h¡& further bifurcated in to stable deposit and less stable deposit. Insured deposits (to the extent boZ-XoZ ImVmo§ _o§ gw{Z{üV O_mò§ (S>rAmB©grOrgr) covered by DICGC) in transactional accounts Ûmam H$da H$s JB© gr_m VH$) Ohm± doVZ/no§eZ where salaries/pensions are automatically ñdMm{bV ê$n go O_m {H$E OmVo h¢ `m {aíVo deposited or are paid out from or relationship AmYm{aV ImVmo§ go ^wJVmZ {H$E OmVo h¢ (O¡go O_m based accounts (e.g. the deposit customer has JŒmhH$ H$m ~¢H$ Ho gmW EH$ Am¡a g§~§Y h¡, O¡go another relationship with bank, say, a loan) G$U ImVm)à{V CYmaH$Vm© Ho ê$n _o§ Bgo pñWa per borrower have been considered as stable O_m Am¡a eof H$mo (Hw$b O_m-pñWa O_m) H$mo deposit and the remaining portion (Total H$_ pñWa O_m Ho ê$n _o§ dJr©H¥$V {H$`m OmVm h¡& deposits - stable deposits) is classifi ed as less stable deposits. Total yearly average retail EbgrAma à`moOZmo§ Ho {bE Hw$b dm{f©H$ Am¡gV deposit for LCR purposes is `97,762.10 ` IwXam O_m 97,762.10 H$amo‹S (JV {dÎmr` df© Crores (previous fi nancial year `95,969.05 `95,969.05 H$amo‹S), {Og_o§ go Am¡gV pñWa Crores) out of which average stable deposits O_mE§ `2,535.14 (JV {dÎm df© `1,854.30 was `2,535.14 Crores (previous fi nancial H$amo‹S) h¡ Am¡a H$_ pñWa O_mE§ `95,226.96 year `1,854.30 Crores) and less stable deposits

ANNUAL REPORT 2018-19 199 H$amo‹S (JV {dÎm df© `94,114.76 H$amo‹S) h¡ & was `95,226.96 Crores (previous fi nancial ~¢H$ Zo EbgrAma CÔoí` Ho {bE 30 {XZmo§ H$s year `94,114.76 Crores). Bank has considered eof n{an¹Vm Ad{Y g{hV g^r IwXam O_mAmo§ Ho outfl ows of all retail deposits for LCR purpose, ~{hà©dmh na {dMma {H$`m h¡& including those where residual maturity is beyond 30 days.  bKw ì`mnma JŒmhH$mo§ go ~{hà©dmh: bKw  ì`dgm` JŒmhH$mo§ go ~{hà©dmh do O_m hmoVo h¢, Ohm± Outfl ows from small business customers: The outfl ows from small business customers O_m H$mo IwXam O_m Ho ê$n _o§ à~§{YV {H$`m OmVm are those deposits where the deposit is managed h¡ Am¡a Eogo {H$gr ^r JŒmhH$ go Hw$b O_mE± 5 H$amo‹S as a retail deposit and aggregate funding from VH$ gr{_V hmoVm h¡& Ama~rAmB© Ho {Xem{ZXo©emo§ any such customer is up to 5 Crore . Outfl ows Ho AZwgma, BZ O_mAmo§ go 30 {XZmo§ VH$ Ho up to 30 days from these deposits have been ~{hà©dmh H$mo EbgrAma à`moOZmo§ Ho {bE _mZm considered for LCR purposes as per the RBI J`m h¡& guidelines.  WmoH$ {Z{Y`Z go ~{hdm©h: IwXam O_mAmo§ Am¡a  Outfl ows from wholesale funding: The bKw ì`dgm` O_mAmo§ Ho Abmdm ~{hà©dmh H$mo outfl ows other than those from retail WmoH$ {Z{Y`Z Ho H$maU ~{hà©dmh _mZm OmVm deposits and small business customers are considered as outfl ows due to wholesale

h¡ {Ogo ~mX _o§ J¡a O_mZVr WmoH$ {Z{Y`Z Am¡a funding which has been further bifurcated

O_mZVr WmoH$ {Z{Y`Z _o§ {d^m{OV {H$`m OmVm in to unsecured wholesale funding and h¡& EbgrAma à`moOZmo§ Ho {bE `45,329.09 secured wholesale funding. For LCR purpose, H$amo‹S (JV {dÎmr` df© `59,549.27 H$amo‹S) Ho all unsecured average wholesale funding WmoH$ {Z{Y`Z Ho g^r J¡a O_mZVr Am¡gV H$mo J¡a of `45,329.09 Crores (previous fi nancial n{aMmbZJV O_mAmo§ _o§ dJr©H¥ V {H$`m J`m Š`mo§{H$ year `59,549.27 Crores) are classifi ed as ò O_mò§ g_m`moOZ, A{âjm `m ZH$Xr à~§YZ non-operational deposits as these deposit {HŒ `mH$bmn Ho A§VJ©V Zht AmVr h¡ & O_mZVr do not represent clearing, custody or cash management activities. The secured

WmoH$ {Z{Y`Z _o§ Mb{Z{Y g_m`moOZ gw{dYm wholesale funding is consisting of secured (EbEE\)/{Ìnjr` aonmo boZ-XoZ àUmbr borrowings through Liquidity Adjustment (QrAmaBnrEg) Am¡a g§nm{œ©H$ CYma boZ-XoZ Facility (LAF)/ Triparty Repo Dealing g§~§Yr Xm{`Ëd, nwZI©arX H$ama (AmaBnrAmo) System (TREPS) and Lending Obligation Ûmam O_mZVr CYma em{_b h¡& O_mZVr CYma H$m (CBLO) and Repurchase Agreement Hw$b Am¡gV `2,220.86 H$amo‹S (JV {dÎmr` df© (REPO). Total average of secured borrowings `8,256.55 H$amo‹S) h¡& is `2,220.86 Crores (previous fi nancial year `8,256.55 Crores).  G$U Am¡a Mb{Z{Y gw{dYmAmo§ go ~{hà©dmh: Bg_o§ ZH$X HŒo {SQ ImVmo§ (grgr) Am¡a AmodaS—mâQ  Outfl ows from Credit and Liquidity (AmoSr) ImVmo§ H$s AàmßV/Aà`wº gr_mAmo§ na facilities: The un-availed/un-utilized limits of cash credit accounts (CC) and overdrafts {dMma {H$`m J`m h¡& (OD) accounts have been considered.  AÝ` AmH$pñ_H$ {Z{Y`Z ~mÜ`VmAmo§ go  Outfl ows from other contingent funding

~{hà©dmh: AÝ` AmH$pñ_H$ {Z{Y`Z ~mÜ`VmAmo§ obligations: The outfl ows from other go ~{hà©dmh _o§ ~¢H$ Jma§Qr Am¡a G$U à{V~ÕVm nÌ contingent funding obligations include Am{X Ho H$maU ~{hà©dmh em{_b h¢& EbgrAma outfl ows due to bank guarantee and letter of Ho à`moOZmo§ Ho {bE ~¢H$ Zo `Wm{V{W J¡a-{Z{Y credit commitments etc. For LCR purposes, AmYm{aV A{JŒ_ H$mo J¡a ^m{aV ~{hà©dmh Bank has considered the entire Non fund Ho ê$n _o§ {b`m h¡ & BgHo gmW hr ~¢H$ Zo ~¢H$ based advance as on date as unweighted Ho {dêÕ CZ g^r Xmdmo§ {OZH$mo G$U Zht _mZm outfl ow. Bank has also considered entire claims against the Bank not considered as debt J`m h¡, H$mo EbgrAma A^m{aV ~{hà©dmh Ho ê$n as LCR unweighted outfl ow. _o§ _mZm h¡ &

200 1.2 {V_mhrdma EbgrAma : 1.2 Quarter wise LCR: {dÎmr` df© 2018-19 Ho Xm¡amZ {V_mhr dma EbgrAma ZrMo The Quarter wise LCR during the ﬁ nancial year Cp„{IV h¡ 2018-19 is mentioned below. Average LCR of Average LCR of Average LCR of Average LCR of OyZ -2018 {gV§~a-2018 {Xg§~a - 2018 _mM© -2019 June-2018 September-2018 December - 2018 March -2019

{V_mhr H$m {V_mhr H$m {V_mhr H$m {V_mhr H$m Quarter Quarter Quarter Quarter AmogV EbgrAma Am¡gV EbgrAma Am¡gV EbgrAma Am¡gV EbgrAma 120.96% 151.79% 171.78% 153.73% 120.96% 151.79% 171.78% 153.73% {dÎm df© 2017-18 Xm¡amZ {V_mhrdma EbgrAma ZrMo The Quarter wise LCR during the ﬁ nancial year 2017- Cp„{IV h¡& 18 is mentioned below. OyZ 2017 {gV§~a -2017 {Xg§~a - 2017 _mM© -2018 Average LCR of Average LCR of Average LCR of Average LCR of June-2017 September-2017 December - 2017 March -2018 {V_mhr Am¡gV {V_mhr H$m {V_mhr H$m Am¡gV {V_mhr H$m Quarter Quarter Quarter Quarter EbgrAma Am¡gV EbgrAma EbgrAma Am¡gV EbgrAma 167 .03% 141.58% 127.87 % 147.43% 167.03% 141.58% 127.87% 147.43% 1.3 {dÎmr` df© 2018-19 Ho {bE ~¢H$ Ûmam EbgrAma H$s 1.3 The Daily LCR maintained by the Bank for the ﬁ nancial year 2018-19 was above the minimum X¡{ZH$ Ý`yZV_ Amdí`H$Vm (Aà¡b 2018 go {Xg§~a VH$ requirement (from April 2018 to December 2018 i.e.

90% Am¡a OZdar go 2019 go _mM© 2019 VH$ 100%) 90% & from January 2019 to March 2019 i.e. 100%). H$mo ~ZmE aIm J`m& 2. Concentration of funding sources: 2. {Z{Y`Z òmoVmo§ H$m g§H|$ÐrH$aU : The Bank is primarily engaged in lending and borrowing ~¢H$ _w»` ê$n go G$U XoZo Am¡a CYma boZo H$s J{V{d{Y`mo§ _o§ bJm hwAm activities. Bank is accepting deposit from the public as per h¡& ~¢H$ AnZr Amdí`H$Vm Ho AZwgma OZVm go O_m ñdrH$ma H$aVm h¡& the requirement of the Bank. Bank is borrowing from/ lending in the money market to manage its day to day ~¢H$ AnZr X¡{ZH$ VabVm Am¡a AÝ` Amdí`H$VmAmo§ Ho {bE _wÐm ~mOma liquidity and other requirements. The ratio of bulk deposit 31 2019 go CYma boVm `m XoVm h¡ & `Wm _mM©, H$mo Hw$b O_mAmo§ _o§ WmoH$ (`2 crore and above) to aggregate deposits as on 31st Mar O_mAmo§ (`2 H$amo‹S Am¡a Cggo A{YH$) H$m AZwnmV 23.91% ahm& ~¢H$, 2019 is 23.91%. Bank is taking concerted effort to reduce IwXam O_mAmo§ na Ü`mZ H|${ÐV H$aVo hwE WmoH$ O_mAmo§ H$mo H$_ H$aZo H$m the share of bulk deposits by focusing more on retail gVV à`mg H$a ahm h¡& deposits. 3. ì`wËnÞ Omo{I_ Am¡a g§^m{dV g§nm{œ©H$ _m±J: 3. Derivative exposures and potential collateral calls: Bank deals in derivative for trading as well as for hedging ~¢H$ ì`mnma Ho gmW-gmW hoqOJ CÔoí` Ho {bE ì`wËn{Þ H$m ì`dgm` purpose. The volume of derivative deals undertaken is H$aVm h¡& ì`wËnÞ gm¡Xmo§ H$s _mÌm AnojmH¥$V H$_ h¡& {dÎmr` df© 2018-19 relatively small. The average net derivative cash outfl ow ` Ho {bE EbgrAma _o§ {Zdb ì`wËn{Þ ZH$Xr àdmh Am¡gV 3.43 H$amo‹S in LCR for the fi nancial year 2018-19 is `3.43 Crores (JV {dÎmr` df© `6.64 H$amo‹S) h¡& (previous fi nancial year `6.64 Crores). 4. EbgrAma _o§ _wÐm Ag§VwbZ : 4. Currency mismatch in the LCR: O~ {dXoer _wÐm am{e _o§ Hw$b XoZXm{a`m§ ~¢H$ H$s Hw$b XoZXm{a`mo§ H$m 5% Currency mismatch is applicable when the aggregate `m Cggo A{YH$ hmo§ V~ H$ao§gr Ag§VwbZ bmJy hmoVm h¡& Eogo _m_bmo§ _o§, liabilities in the foreign currency amount to 5% or more of the bank’s total liabilities. In such cases, the currency is

_wÐm H$mo "_hËdnyU©' _mZm OmVm h¡& h_mao ~¢H$ H$s ~¢qH$J Am¡a ì`mnma ~hr considered as ‘signiﬁ cant’. Our Bank’s banking and trading H$mo ñWmZr` _wÐm _o§ Xem©`m J`m h¡& ~¢H$ Ho nmg H$moB© {dXoer ghm`H$ book is denominated in local currency. Bank does not H§ nZr Zht h¡& {dXoer _wÐm XoZ Xm{a`m§ ~¢H$ H$s Hw$b XoZ Xm{a`mo§ Ho 5% have any foreign subsidiary. Foreign currency liabilities are go H$_ h¢ Am¡a Bg{bE Bgo _wÐm Ag§VwbZ bmJy hmoZo hoVw _hËdnyU© Zht less than 5% of total liabilities of the Bank and hence not _mZm J`m h¡& treated as signiﬁ cant for application of currency mismatch. 5. Mb{Z{Y à~§YZ Ho H|$ÐrH$aU H$s {SJŒr Am¡a g_yh BH$mB`mo§ _o§ 5. Degree of centralization of liquidity management and interaction between the group’s units:

dmVm©bmn : The Bank manages its liquidity risk proactively in a ~¢H$ñQm°H$ Am¡a àdmh X¥pîQH$moU Ho VhV {d{dY AZwnmVmo§ H$s {ZJamZr Ho centralized manner through monitoring of various ratios _mÜ`_ go àYmZ H$m`m©b` _o§ Ho§ ÐrH¥$V VarHo go bJmVma AnZo Mb{Z{Y both under stock and ﬂ ow approach and the results are Omo{I_ H$m à~§YZ H$aVm h¡ Am¡a CgHo n{aUm_mo§ na {ZU©` boZo Ho {bE placed before the management for decision taking. Bank

ANNUAL REPORT 2018-19 201 à~§YZ Ho g_j àñVwV H$aVm h¡& ~¢H$, Am§V{aH$/Ama~rAmB© _mZX§Smo§ Ho prepares Structural Liquidity Statement (SLS) on a daily AZwgma {d{^Þ g_` dJ© _o§ Mb{Z{Y Ag§VwbZ Ho {díbofU/{ZJamZr Ho basis for analyzing / monitoring of liquidity mismatches in different time buckets according to internal/RBI norms. ( {bE X¡{ZH$ AmYma na g§aMZmË_H$ Mb {ddaU EgEbEg) V¡`ma H$aVm Such analysis is being reported to top management. SLS h¡& EgEbEg àËòH$ ewHŒ dma, àW_ VWm Vrgao ~wYdma Am¡a ha _hrZo H$s as on each Friday and 15th and last day of every month 15 dt Ed§ A§{V_ {XZ H$mo AmXo`Vm à~§YZ g{_{V (AëH$mo) Ho g_j aIm are placed before Asset Liability Management Committee OmVm h¡& 90 {XZmo§ go D$na H$s pñW{V Ho {bE J{Verb VabVm {díbofU (ALCO). Dynamic Liquidity Analysis (DLS) for likely (SrEbEg) H$mo _m{gH$/{V_mhr AmYma na EEbgrAmo Ho gm_Zo aIm position over a 90 days’ time horizon is placed to ALCO OmVm h¡& {dÎmr` df© 2018-19 Ho {bE ~¢H$ à{V{XZ Ho AmYma na on monthly / quarterly basis. For fi nancial year 2018- EbgrAma H$s JUZm H$a ahm h¡ Am¡a erf© à~§YZ Ed§ EEbgrAmo H$mo 19 bank has been calculating LCR on a daily basis and gy{MV H$a ahm h¡& reported to the Top management & ALCO. [nr.dr.^maVr] [Jmonmb _wabr ^JV] [{~énmj {_lm] à~§Y {ZXoeH Ed§ grB©Amo H$m`©nmbH {ZXoeH H$m`©nmbH {ZXoeH [_Zrf JwßVm] [nr. Ho . nm§Sm] [Ho . lr{Zdmg _y{V©] {ZXoeH {ZXoeH {ZXoeH [E_. ^Jd§V amd] [àXrn Hw _ma O¡Z] [{MÌm Jm¡ar bmb] {ZXoeH {ZXoeH {ZXoeH [dr. _wÎmwH¥ îUZ] [kmZ a§OZ gma§Jr] [gw^mf Hw$_ma Ho ed] _hm à~§YH Cn _hmà~§YH Cn _hmà~§YH H¥$Vo XÎmm qgJbm EÊS H§ . H¥$Vo E. Ho . g~V EÊS H§ . H¥$Vo à_moX EÊS Egmo{gEQ²g gZXr boImH ma gZXr boImH ma gZXr boImH ma E\$AmaEZ-006185EZ E\$AmaEZ-321012B© E\$AmaEZ-001557gr (grE g§Ord AJ«dmb) (grE E. Ho . g~V) (grE a{d§Ð amZrdmbm) gmÂmoXma gmÂmoXma gmÂmoXma gXñ` g§.503932 gXñ` g§. 30310 gXñ` g§. 073191 H¥$Vo MÝÐZ EÊS a_Z (H¥$Vo Eg. am_mZ§X Aæà EÊS H§ .) gZXr boImH ma gZXr boImH ma E\$AmaEZ-000571Eg E\$AmaEZ-000990EZ (grE Eg.Or. H$ë`mUa_U) (grE {~ZmoX gr. _hmamUm) gmÂmoXma gmÂmoXma gXñ` g§.10652 gXñ` g§.056373 [ P.V. Bharathi] [Gopal Murli Bhagat] [Birupaksha Mishra] Managing Director & CEO Executive Director Executive Director [Manish Gupta] [P. K. Panda] [K. Srinivasa Murthy] Director Director Director [M. Bhagavantha Rao] [Pradeep Kumar Jain] [ Chitra Gouri Lal] Director Director Director [V Muthukrishnan] [Gyana Ranjan Sarangi] [Subhash Kumar Keshav] General Manager Deputy General Manager Deputy General Manager For Datta Singla & Co. For A. K. Sabat & Co. For Pramod & Associates Chartered Accountants Chartered Accountants Chartered Accountants FRN: 006185N FRN: 321012E FRN: 001557C [CA Sanjeev Aggarwal] [CA A K Sabat ] [CA Ravindra Raniwala] Partner Partner Partner Membership No. 503932 Membership No. 30310 Membership No. 073191 For Chandran & Raman For S. Ramanand Aiyar & Co. Chartered Accountants Chartered Accountants FRN: 000571S FRN: 000990N [CA S G Kalyanaraman] [CA Binod C. Maharana] Partner Partner Membership No. 10652 Membership No. 056373 ñWmZ …_§Jbyé/Place : Mangaluru {XZm§H … 17 ‘B©, 2019/Date : 17 May, 2019 202 H$mnm}aoeZ ~¢H$ CORPORATION BANK 31 _mM©, 2019 H$mo g_mßV df© hoVw EH$b ZH$Xr àdmh {ddaU Standalone Cash Flow Statement for the year ended 31st March, 2019 (Ÿ` in ’000 _|) {ddaU PARTICULARS 31.03.2019 31.03.2018 H$. n[aMmbZ H$m`©H$bmnm| go ZH$Xr àdmh A. CASH FLOW FROM OPERATING ACTIVITIES H$a Cnam§V {Zdb bm^/hm{Z (-) Net Profi t/Loss (-) after Tax -6332,98,29 -4053,94,31 Omo‹S>|… H$a hoVw àmdYmZ Add: Provision for Tax -1715,70,23 -2626,91,50 H$a nyd© {Zdb bm^/hm{Z (-) Net Profi t/Loss(-) before Tax -8048,68,52 -6680,85,81 i {ZåZ hoVw g‘m¶moOZ Adjustment for : pñWa AmpñV¶m| na ‘yë¶õmg Depreciation on Fixed Assets 176,50,70 175,34,03 {Zdoem| na ‘yë¶õmg Depreciation on Investments 340,20,20 820,65,55 EZnrE hoVw ‘yë¶õmg Provision for NPAs 11585,13,72 10982,13,51 ‘mZH$ AmpñV¶m| hoVw àmdYmZ Provision for Standard Assets 180,52,52 -815,65,09 {Q>¶a I Am¡a {Q>¶a II ~m±S>m| na àXÎm ã¶mO Interest paid on Tier I & Tier II Bonds 420,81,01 592,65,49 AmH$pñ‘H$VmAm| Am¡a AÝ¶ hoVw àmdYmZ Provision for Contingencies and Others -43,29,41 -54,63,53 pñWa AmpñV¶m| H$s {~H«$s na (bm^)/hm{Z (Profi t)/Loss on Sale of Fixed Assets 1,49,49 -,45,07 H$_©Mmar H$ë`mU {Z{Y hoVw, _yë`õmg Provision for Staff welfare fund – – AZwf§{J¶m| Am¡a gh¶mo{J¶m| go bm^m§e Am{X Ûmam A{O©V Am¶ – – Income earned by way of Dividend etc. from Subsidiaries and Associates (àXÎm)/dmng {H$¶m J¶m àË¶j H$a Direct Taxes (paid)/Refund -1139,66,85 -85,28,71 ã¶mO ny±OrH$aU hoVw àmdYmZ Provision for Interest Capitalisation -119,42,00 -301,23,00 n[aMmbZ AmpñV¶m| Ed§ Xo¶VmAm| ‘| n[adV©Z go nhbo ZH$Xr àdmh Cash Flow before change in Operating Assets and Liabilities 3353,60,86 4632,67,37 ii {ZåZ hoVw g‘m¶moOZ Adjustment for: O‘mam{e¶m| ‘| d¥{Õ/(H$‘r) Increase/(Decrease) in Deposits 1251,89,46 -37243,66,93 CYma ‘| d¥{Õ/(H$‘r) Increase/(Decrease) in Borrowings -10539,37,83 14902,91,02 AÝ¶ Xo¶VmAm| Ed§ àmdYmZm| ‘| d¥{Õ/(H$‘r) Increase/(Decrease) in other liabilities & provisions -13443,32,07 -12893,45,26 {Zdoem| ‘| d¥{Õ/(H$‘r) (Increase)/Decrease in Investments 10370,55,79 -6276,77,96 A{J«‘m| ‘| d¥{Õ/(H$‘r) (Increase)/Decrease in Advances -1382,37,21 20487,95,67 AÝ¶ AmpñV¶m| ‘| d¥{Õ/(H$‘r) (Increase)/Decrease in Other Assets 3617,32,12 376,92,65 ~Å>o ImVo {bIZo/A§V[aV H$aZo Ho$ {bE Ama{jV {Z{Y¶m| ‘|/go g‘m¶moOZ Adjustments to/from Reserves for Write Off/trf 19,25,54 17,31,28 n[aMmbZ {H«$¶mH$bmnm| go {Zdb ZH$Xr àdmh (H$) NET CASH FLOW FROM OPERATING ACTIVITIES [A] -6752,43,34 -15996,12,16

ANNUAL REPORT 2018-19 203 (Ÿ` in ’000 _|) {ddaU PARTICULARS 31.03.2019 31.03.2018 I. {Zdoe {H«$¶mH$bmnm| go {Zdb ZH$Xr àdmh B. CASH FLOW FROM INVESTING ACTIVITIES pñWa AmpñV¶m| H$s {~H«$s/{ZnQ>mZ Sale/Disposal of Fixed Assets -3,78,32 1,74,69 pñWa AmpñV¶m| H$s IarX Purchase of Fixed Assets -111,49,17 -132,29,66 AZwf§Jr/g§¶wº$ CÚ‘/gh¶mo{J¶m| ‘| A{V[aº$ {Zdoe – – Additional Investment in Subsidiary/Joint Ventures/Associates AZwf§{J¶m| Am¡a gh¶mo{J¶m| ‘| bm^m§e Am{X Ûmam A{O©V Am¶ Income earned by way of Dividend etc. from Subsidiaries and Associates – – {Zdoe {H«$¶mH$bmnm| go {Zdb ZH$Xr àdmh (I) -115,27,49 -130,54,97 NET CASH FLOW FROM INVESTING ACTIVITIES [B] J. {dÎmr¶Z {H«$¶mH$bmnm| go {Zdb ZH$Xr àdmh C. CASH FLOW FROM FINANCING ACTIVITIES eo¶a ny±Or Ho$ {ZJ©‘Z go AmJ‘ Proceeds from Issuance of Share Capital 11777,37,28 2187,00,00 {Q>¶a I Am¡a {Q>¶a II ~m±S>m| go AmJ‘ Proceeds of Tier I & Tier II Bonds – 800,00,00 {Q>¶a I Am¡a {Q>¶a II ~m±S>m| H$m à{VXmZ Redemption of Tier I & Tier II Bonds -3237,50,00 – {Q>¶a I Am¡a {Q>¶a II ~m±S>m| na àXÎm ã¶mO Interest paid on Tier I & Tier II Bonds -420,81,01 -592,65,49 àXÎm bm^m§e (A§V[a‘ Ed§ A§{V‘) Dividend (Interim & Final) paid – – àXÎm bm^m§e g§{dVaU H$a Dividend Distribution Tax paid – – {dÎmr`Z {H«$¶mH$bmnm| go {Zdb ZH$Xr àdmh (J) 8119,06,27 2394,34,51 NET CASH FLOW FROM FINANCING ACTIVITIES [C]

K. ZH$Xr Am¡a ZH$Xr g‘Vwë¶ ‘| {Zdb d¥{Õ/(H$‘r) (H$+I+J) ¶m (M-L>) D. NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS [A+B+C] or [F-E] 1251,35,43 -13732,32,62

>L. df© Ho$ àma§^ ‘| ZH$Xr Am¡a ZH$Xr g‘Vwë¶ E. CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR ZH$Xr Am¡a ^m.[a.~¢. Ho$ nmg ~¢H$ eof Cash and Bank Balance with RBI 11140,15,36 17496,63,49 ~¢H$m| Ho$$ nmg eof am{e¶m± Am¡a ‘m±J na Am¡a Aën gyMZm na YZ Balance with Banks and Money at Call and Short Notice 177,52,65 7553,32,14 df© Ho$ àma§^ ‘| {Zdb ZH$Xr Am¡a ZH$Xr g‘Vwë¶ (L>) NET CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR [E] 11317,68,01 25049,95,63 M. df© Ho$ A§V ‘| {Zdb ZH$Xr Am¡a ZH$Xr g‘Vwë¶ F. CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR ZH$Xr Am¡a ^m.[a.~¢. Ho$ nmg ~¢H$ eof Cash and Bank Balance with RBI 9661,06,85 11140,15,36 ~¢H$m| Ho$ nmg eof am{e¶m± Am¡a ‘m±J na Am¡a Aën gyMZm na YZ Balance with Banks and Money at Call and Short Notice 2907,96,58 177,47,67 df© Ho$ A§V ‘| {Zdb ZH$Xr Am¡a ZH$Xr g‘Vwë¶ (M) NET CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR [F] 12569,03,43 11317,63,03

204

g_o{H V {dÎmr` {ddaUmo§ na ñdV§Ì boIm INDEPENDENT AUDITORS’ REPORT narjH mo§ H$s {anmoQ© ON THE CONSOLIDATED FINANCIAL godm _o§ STATEMENTS H$mnmo©aoeZ ~¢H$ gXñ`, To _§Jbyé The Members of Corporation Bank, Mangaluru g_o{H$V {dÎmr` {ddaUmo§ na [anmoQ© Report on the Consolidated Financial Statements A{^_V Opinion 1. h_Zo H mnmo©aoeZ ~¢H (~¢H ) Am¡a CgH r AZwf§Jr, H mn© ~¢H {gŠ`w{aQrµO 1. We have audited the attached Consolidated Balance Sheet {b{_QoS (EH gmW ""ggyh'' H$hm J`m h¡) Ho 31 _mM©, 2019 H$s of Corporation Bank (‘the Bank’) and its Subsidiary, Corpbank Securities Limited, (collectively referred to as pñW{V Ho AZwgma g§b¾ g_o{H V VwbZ-nÌ, VWm CgHo gmW Cº {XZm§H “the Group”), as at 31st March 2019, the Consolidated H$mo g_mßV df© hoVw g_yh Ho _hËdnyU© boIm-Zr{V`mo§ H m gmam§e Ed§ AÝ` Profi t and Loss account and the Consolidated Cash Flows ì`m»`mË_H gyMZmAmo§ g{hV g_o{H V bm^-hm{Z boIo Am¡a g_o{H V Statement and notes to fi nancial statements including ZH$Xr àdmh {dda{U`mo§ H$s boImnarjm H$s h¡& a summary of signifi cant accounting policies and other explanatory information of the Group for the year ended 2. h_mar boImnarjm Ho AmYma na, AZwf§Jr Ho AbJ {dÎmr` {ddaU on that date. na Xygao boImnarjH$m| Ho {anmoQ© Ho AmYma na Am¡a h_mar OmZH$mar 2. Based on our audit, consideration of the report of other Ed§ {ZåZ{b{IV n¡amJŒm\ 4 go 8 Ho gmW n{RV h_o§ Xr JB© ñnîQrH$aU auditor on separate fi nancial statements of the subsidiary Ho AZwgma, h_mar am` h¡ {H g§b¾ g_o{H$V {dÎmr` {ddaU ^maV _o§ and to the best of our information and according to the gm_mÝ` ê$n go ñdrH¥$V boIm§H Z {gÕm§Vmo§ Ho AZwê$n ghr Am¡a C{MV explanations given to us read with paragraphs 4 to 8 below, we are of the opinion that the attached consolidated pñW{V àñVwV H$aVr h¡& fi nancial statements give a true and fair view in conformity i. g_o{H$V VwbZnÌ Ho _m_bo _o§, `h 31 _mM©, 2019 H$mo g_yh H$s with the accounting principles generally accepted in India. pñW{V H$mo Xem©Vr h¡; i. In the case of the Consolidated Balance Sheet, of the ii. g_o{H$V bm^ Am¡a hm{Z boIm Ho _m_bo _o§ Cg {XZ H$mo g_mßV df© state of affairs of the Group as at 31st March 2019; ii. In the case of the Consolidated Profi t and Loss account, Ho {bE g_yh H$s g_o{H$V hm{Z h¡, Am¡a the Consolidated Loss of the Group for the year ended iii. g_o{H$V ZH$Xr àdmh {dda{U`mo§ Ho _m_bo _o§ `h Cg VmarI H$mo on that date, and g_mßV df© Ho {bE g_yh Ho ZH Xr àdmh H m ghr Am¡a C{MV pñW{V iii. In the case of Consolidated Cash Flow Statement gives àñVwV H$aVr h¡& a true and fair view of the cash fl ows of the Group for the year ended on that date. A{^_V H$m AmYma Basis for Opinion 3. h_Zo ^maVr` gZXr boImH$ma g§ñWmZ (AmB©grEAmB©) Ho$ Ûmam Omar 3. We conducted our audit in accordance with the Standards boImnarjm Ho$ _mZH$mo§ Ho$ AZwgma AnZr boImnarjm H$r h¡& CZ _mZH$mo§ on Auditing (SAs) issued by the Institute of Chartered Ho$ VhV AnZr {Oå_oXm[a`mo§ H$mo AmJo h_mar [anmoQ© Ho$ {dÎmr` {ddaU Accountants of India (ICAI). Our responsibilities under AZw^mJ H$r boImnarjm hoVw boImnarjH$ H$r {Oå_oXm[a`mo§ _o§ ~Vm`m those Standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements Jm`m h¡& h_ AmB©grEAmB© Ho$ Ûmam Omar AmMma g§{hVm Ho$ AZwgma g_yh section of our report. We are independent of the Group go ñdV§Ì h¢ Am¡a gmW hr Z¡{VH$ AnojmAmo§ H$mo ^r nyam H$aVo h¢ Omo in accordance with the code of ethics issued by the ICAI ^maV _o§ AnZr {dÎmr` {ddaUmo§ H$s boImnarjm Ho$ {bE g§JV h¡ Am¡a together with ethical requirements that are relevant to our h_Zo BZ AnojmAmo§ Am¡a AmMma g§{hVm Ho$ AZwgma h_mar AÝ` Z¡{VH$ audit of the fi nancial statements in India, and we have fulfi lled our other ethical responsibilities in accordance CÎmaXm{`Ëdmo§ H$mo nyam {H$`m h¡& h_mam {dœmg h¡ {H$ Omo boImnarjm gmú` with these requirements and the code of ethics. We believe h_Zo àmßV {H$`m h¡, do h_mar A{^_V Ho$ {bE n`m©ßV Am¡a C{MV AmYma that the audit evidence we have obtained is suffi cient and àXmZ H$aVm h¡& appropriate to provide a basis for our opinion. 4. _m_bo H$m _hËd 4. Emphasis of Matter Without qualifying our conclusion, we draw attention to : AnZo {ZîH$f© na nhw±Mo {~Zm h_ {ZåZ{b{IV na Ü`mZ AmH${f©V H$aVo h¡… i) Note No. 1 of Schedule 18-C regarding provisioning i. EZgrEbQr ImVmo§ na {H$E JE àmdYmZ Am¡a J¡a-{ZînmXH$ ImVmo§ na {H$E made on NCLT accounts and provision made on Non- JE àmdYmZ Ho$ ~mao _o§ AZwgyMr 18-gr H$m ZmoQ Z§~a 1 performing accounts. ii) Note No. 8(C) of Schedule 18-B regarding non- ii. dV©_mZ df© H$s H$a hm{Z na AmñW{JV H$a AmpñV H$r J¡a-_mÝ`Vm Ho$ recognition of Deferred Tax asset on current year tax g§~§Y _o§ AZwgyMr 18-~r Ho$ ZmoQ 8 (gr) loss.

ANNUAL REPORT 2018-19 205 5. boIm narjm H$r à_wI _Xo§ 5. Key Audit Matters H«$. g§. boIm narjm H$r à_wI _Xo§ boImnarjH$mo§ H$m Odm~ Sl. No. Key Audit Matters Auditor’s Response 1 àmW{_H$Vm Am¡a J¡a àmW{_H$Vm joÌ _o§ A{JŒ_mo§ H$m h_Zo ~¢H$ Ûmam joÌdma dJr©H$aU H$r àUmbr H$r à^m{dH$Vm H$m _yë`m§H$Z {H$`m h¡& dJr©H$aU h_ joÌdma dJr©H$aU Ho$ {bE emIm Am¡a A§Mb {dda{U`mo§, emIm boIm narjH$mo§ H$r ~¢H$ Zo boImnarjmYrZ df© Ho$ Xm¡amZ àmW{_H$Vm Am¡a [anmoQ© na {Z^©a Wo& J¡a àmW{_H$Vm joÌ Ho$ CYmaH$Vm©Amo§ Ho$ ImVmo§ H$m nwZ: h_Zo joÌdma dJr©H$aU H$r [anmo{Q>ªJ H$s ewÕVm H$m {ZYm©aU H$aZo Ho$ {bE àmW{_H$Vm joÌ dJr©H$aU {H$`m h¡& Ho$ dJr©H$aU _o§ CËnmX dma ImVmo§ H$m Z_yZm MwZm h¡& Classifi cation of Advances into Priority & àmW{_H$Vm/J¡a àmW{_H$Vm joÌ A{JŒ_mo§ H$s nhMmZ H$s àUmbr H$s g_rjm Am¡a Non Priority Sector nwZ_y©ë`m§H$Z H$aZo H$s Amdí`H$Vm h¡& Bank has made re classifi cation of borrowers’ We have assessed the effi cacy of the system of sector wise classifi cation accounts between Priority & Non Priority by the bank. Sector during the year under Audit. We relied on the branch and zonal returns, branch auditors reports for sector wise classifi cation. We have selected sample of product wise accounts in priority sector classifi cation to determine the correctness of reporting of sector wise classifi cation. The system of identifi cation of priority/non priority sector advances needs review and revalidation. 2 gyMZm àm¡Úmo{JH$r àUmbr ({\$ZoH$b) AmYm[aV h_ H$moa, ßb_, Am¡a Q—oµOar go àmßV OmZH$mar Am¡a SoQm H$s g_rjm Am¡a _yë`m§H$Z H$aHo$ {dÎmr` [anmo{Q>ªJ à{HŒ `m `h AmœñV H$aVo h¢ {H$ [anmoQ© {H$E JE {dÎmr` {ddaU C{MV Am¡a {dœgZr` h¢& ~¢H$ H$moa ~¢qH$J gmoë`yeZ (gr~rEg) _o§ H$m_ H$a ahm h_mao boImnarjm X¥pîQH$moU _o§ Am§V[aH$ {Z`§ÌU H$r n[aMmbZ à^mderbVm em{_b h¢& h¡, n[aMmbZ Am¡a {dÎmr` [anmo{Q>ªJ à{HŒ `mE§ ~‹Sr _mÌm Omo {ZåZ{b{IV h¡… _o§ boZXoZmo§ Ho$ {bE \Œ ÝQ EÝS Am¡a ~¡H$ EÝS _o§ AmB©Qr h_mao boImnarjm {ZåZ{b{IV H$mo naIZo Ho$ n[aàoú` _o§ H$r J`r h¡… {gñQ_ na {Z^©a h¢& df© Ho$ Xm¡amZ Am`mo{OV AmB©Eg boImnarjm àmßV H$aZm Am¡a CgH$r g_rjm H$aZm& ~¢H$ Ho$ EH$rH¥ V Q—oµOar à~§YZ Ho$ {bE g{hV g^r ~¢H$ Ho$ AmB©Qr {Z`§ÌU n[adoe, AmB©Qr Zr{V`mo§ Am¡a ~moS© Ho$ gm_Zo aIo JE ZmoQmo§ g{hV boZXoZmo§ Ho$ {bE H$moa ~¢qH$J _o§ à^mdr SoQm H¡ ßMqaJ boImnarjm Ad{Y Ho$ Xm¡amZ _hËdnyU© n[adV©Zmo§ go gh_{V & Am¡a [anmo{Q>ªJ Ho$ {bE ~ZmE JE n`m©ßV Om±M, eof, ~¢H$ Ho$ à_wI AmB©Qr àUm{b`mo§ na gm_mÝ` AmB©Qr {Z`§ÌUmo§ Ho$ {SOmBZ, H$m`m©Ýd`Z à{HŒ `mE§ Am¡a {Z`§ÌU em{_b h¢& Am¡a n[aMmbZ à^m{dH$Vm H$s g_rjm H$s, Omo Z_yZm Om±M AmYma na {dÎmr` [anmo{Q>ªJ Information Technology System (Finacle) Ho$ {bE _hËdnyU© h¢ & based Financial reporting process. boIm narjm Ho$ {bE Cn`wº à_wI ñdMm{bV Ed§ _¡ZwAb H$mamo~ma MHŒ {Z`§ÌUmo§ Am¡a The bank is operating under Core Banking Solution (CBS), the Operational and {gñQ_ Ûmam OZaoQS [anmoQmoª H$s narjU H$s Om±M H$s& Financial reporting processes are dependent We conducted a review and assessment of information and data derived on IT Systems for the large volume of from Core, PLUM, and treasury to assure that the reported Financial transactions at the front end and at the back Statements are proper and reliable. end. Our audit approach consisted of testing operating effectiveness of Core banking for all transactions including internal controls as follows: for integrated treasury management of Obtaining and reviewed the IS Audit conducted during the year. the bank has adequate checks, balances, Obtaining an understanding of the Bank’s IT Control environment, IT processes and controls designed for the Policies and key changes during the audit period including the notes effective data capturing and reporting. placed before the Board. Reviewed the design, implementation and operating effectiveness of the Bank’s General IT controls over key IT systems that are critical to Financial reporting on test check basis. Test checked key automated and manual business cycle controls and system generated reports relevant to audit.

206 g_o{H$V {dÎmr` {ddaUmo§ Ho$ {bE Am¡a A{êmgZ na à~§YZ Ho$ Responsibilities of Management and those charged with Xm{`Ëd Governance for the Consolidated Financial Statements 6. The Bank’s Board of Directors is responsible with respect to 6. ~¢H$ Ho$ {ZXoeH$ _§Sb H$m BZ g_o{H$V {dÎmr` {ddaUmo§, Omo AmB©grEAmB© the preparation of these Consolidated Financial Statements Ûmam Omar boIm§H$Z _mZH$mo§ g{hV ^maV _o§ gm_mÝ` ê$n go ñdrH¥ V that give a true and fair view of the Financial position, boIm§H$Z {gÕm§Vmo§ VWm ~¢qH$J {d{Z`_Z A{Y{Z`_, 1949 H$r Ymam Financial performance and cash fl ows of the Group in 29 Ho$ àmdYmZmo§ Ed§ g_` g_` na ^maVr` [aµOd© ~¢H$ (Ama~rAmB©) accordance with the accounting principles generally accepted in India, including the Accounting Standards Ûmam Omar n[anÌmo§ d {Xem{ZXo©emo§ Ho$ AZwgma g_yh H$s {dÎmr` pñW{V, issued by ICAI, and provisions of Section 29 of the {dÎmr` {ZînmXZ Am¡a ZH$Xr àdmh H$m ghr C{MV pñW{V Xem©Vr h¡, H$mo Banking Regulation Act, 1949 (the Act) and circulars and V¡`ma H$aZo Ho$ {bE {Oå_oXma h¡& Bg {Oå_oXmar _o§ g_yh H$r AmpñV`mo§ guidelines issued by the Reserve Bank of India (‘RBI’) from H$r gwajm Ho$ {bE Am¡a H$nQ Ed§ AÝ` A{Z`{_VVmAmo§ H$mo amoH$Zo d time to time. This responsibility also includes maintenance of adequate accounting records in accordance with the CgH$m nVm bJmZo Ho$ {bE A{Y{Z`_ Ho$ àmdYmZmo§ Ho$ AZwgma n`m©ßV provisions of the Act for safeguarding of the assets of the boIm§H$Z [aH$mS© H$m aIaImd; C{MV boIm§H$Z Zr{V`mo§ H$m M`Z Am¡a Group and for preventing and detecting frauds and other H$m`m©Ýd`Z; {ZU©` Am¡a AmH$bZ H$aZm Omo C{MV Am¡a {ddoH$nyU© h¢; irregularities; selection and application of appropriate Am¡a n`m©ßV Am§V[aH$ {dÎmr` {dda{U`mo§ H$r ê$naoIm ~ZmZm, H$m`m©Ýd`Z accounting policies; making judgments and estimates that Am¡a aIaImd, Omo {H$ boIm§H$Z Ho$ [aH$mS© H$s gQrH$Vm Am¡a nyU©Vm are reasonable and prudent; and design, implementation and maintenance of adequate internal Financial controls, gw{Z{üV H$aZo Ho$ {bE à^mdr T§J go H$m`© H$aVo h¢ Omo {dÎmr` {ddaUmo§ that were operating effectively for ensuring the accuracy H$r V¡`mar Am¡a àñVw{V Ho$ {bE g§JV h¡ Am¡a ghr Am¡a C{MV pñW{V and completeness of the accounting records, relevant to the Xem©Zodmbr h¡ Am¡a Mmho H$nQ `m Ìw{Q Ho$ H$maU hmoZo dmbr Jb` ~`mZmo§ go preparation and presentation of the Financial Statements _wº h¡, ^r em{_b h¡& {dÎmr` {ddaUmo§ H$r V¡`mar _o§, à~§YZ, H$m`©erb that give a true and fair view and are free from material misstatement, whether due to fraud or error. In preparing g§ñWm Ho$ ên _o§ ~Zo ahZo, `Wm bmJy, H$m`©erb g§ñWm go Ow‹Sr _m_bmo§ H$m the Financial Statements, Management is responsible for àH$QZ H$aZo VWm O~ VH$ à~§YZ g_yh H$m n[ag_mnZ, g§MmbZ amoH$Zm assessing the Bank’s ability to continue as a going concern, Zht MmhVm h¡ `m Eogm H$aZo Ho$ {bE H$moB© dmñV{dH$ {dH$ën Zht h¡, V~ disclosing, as applicable, matters related to going concern VH$ H$m`©erb g§ñWm AmYma na boIm§H$Z H$m Cn`moJ H$aZo H$s JŒwn H$s and using the going concern basis of accounting unless j_Vm H$m _yë`m§H$Z H$aZo Ho$ {bE CÎmaXm`r h¡& Management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. {dÎmr` {ddaUmo§ H$r boIm narjm Ho$ {bE boIm narjH$ H$r Auditor’s Responsibilities for the Audit of the Financial {Oå_oXm[a`m± Statements 7. h_mam CÔoí` Bg ~mao _o§ C{MV AmœmgZ àmßV H$aZm h¡ {H$ {dÎmr` {ddaU 7. Our objectives are to obtain reasonable assurance about Mmho H$nQ `m Ìw{Q Ho$ H$maU hmoZo dmbr JbV ~`mZmo§ go nyU© ê$n go _wº whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and h¡ Am¡a boImnarjH$mo§ H$s [anmoQ© em{_b H$aZm h¡ {Og_o§ h_mam A{^_V to issue an auditor’s report that includes our opinion. ^r em{_b h¢& C{MV AmœmgZ CÀM ñVar` AmœmgZ h¡, na§Vw `h Jma§Qr Reasonable assurance is a high level of assurance, but is not Zht h¡ {H$ EgE Ho$ AZwgma H$r J`r boImnarjm _o§ JbV ~`mZ hmoZo na a guarantee that an audit conducted in accordance with CgH$m nVm bJm`m OmEJm& & JbV ~`mZ H$nQ `m Ìw{Q Ho$ H$maU hmo SAs will always detect a material misstatement when it gH$Vr h¡ Am¡a Bg {dÎmr` {dda{U`mo§ Ho$ AmYma na Cn`moÎmm Ho$ {dÎmr` exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they {ZU©`mo§ na ì`{º$JV ê$n go `m g_JŒ ê$n go à^m{dV H$aVm h¡ Vmo Cgo could reasonably be expected to infl uence the economic J§^ra _mZm OmEJm& EgEEg Ho$ AZwgma boImnarjm Ho$ ^mJ Ho$ ê$n _o§, decisions of users taken on the basis of these Financial h_Zo noeoda {ZU©` {b`m h¢ Am¡a nyao boImnarjm _o§ noeoda g§e`mË_H$Vm Statements. As part of an audit in accordance with SAs, we H$mo ~ZmE aIm& exercise professional judgment and maintain professional skepticism throughout the audit. h_Zo {ZåZ H$m`© ^r {H$`m h¡ : We also: • {dÎmr` {ddaUmo§ _o§ à_wI ê$n go JbV ~`mZ, Mmho do H$nQ `m Ìw{Q Ho$ • Identify and assess the risks of material misstatement of the H$maU hmo§, Ho$ Omo{I_mo§ H$r nhMmZ Am¡a CZH$m AmH$bZ H$aVo h¢, CZ Financial Statements, whether due to fraud or error, design Omo{I_mo§ Ho$ {bE boImnarjm àUmbr V¡`ma H$aVo h¢ Am¡a H$m`m©pÝdV and perform audit procedures responsive to those risks, and H$aVo h¢ VWm h_mao A{^_V Ho$ AmYma ~ZZo Ho$ {bE n`m©ßV Am¡a C{MV obtain audit evidence that is suffi cient and appropriate to boImnarjm gmú` àmßV {H$`m h¡& H$nQ Ho$ H$maU hmoZo dmbr Jb` ~`mZ provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than H$m nVm Zht bJmZo H$m Omo{I_ Ìw{Q Ho$ H$maU hmoZodmbr Omo{I_ go A{YH$ for one resulting from error, as fraud may involve collusion, hmoVm h¡ Š`mo§{H$ YmoImY‹Sr _o§ {_br^JV, OmbgmOr, OmZ~yÂmH$a MyH$, forgery, intentional omissions, misrepresentations, or the JbV ~`mZr, `m Am§V[aH$ {Z`§ÌU H$m C„§KZ em{_b hmo gH$Vm h¡& override of internal control.

ANNUAL REPORT 2018-19 207 • Cn`moJ H$r JB© boIm§H$Z Zr{V`mo§ H$r Cn`wº$Vm Am¡a à~§YZ Ûmam {H$E JE • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related boIm§H$Z AmH$bZmo§ Am¡a g§~§{YV àH$QZmo§ H$r {dœgZr`Vm H$m _yë`m§H$Z disclosures made by Management. {H$`m h¡& • Conclude on the appropriateness of management’s use of • h_ à~§YZ H$r Mmby boIm§H$Z AmYmamo§ Ho$ Cn`moJ H$r Cn`wº$Vm Am¡a àmßV the going concern basis of accounting and, based on the boImnarjm gmú` Ho$ AmYma na Š`m Eogr KQZm `m pñW{V`mo§ go g§~§{YV audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast signifi cant H$moB© _hËdnyU© A{Z{üVVm _m¡OyX h¡ Omo ~¢H$ H$r j_Vm na _hËdnyU© g§Xoh doubt on the bank’s ability to continue as a going concern. n¡Xm H$aVr h¡, na {ZîH$f© {ZH$mbVo h¡ & `{X h_ `h {ZîH$f© {ZH$mbVo h¢ If we conclude that a material uncertainty exists, we are {H$ H$moB© _hËdnyU© A{Z{üVVm {dÚ_mZ h¡, Vmo h_o§ AnZo boIm narjH$ required to draw attention in our auditor’s report to the H$r [anmoQ© _o§ {dÎmr` {ddaUmo§ _o§ g§~§{YV àH$QZmo§ na Ü`mZ AmH${f©V H$aZm related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our hmoJm `m `{X Bg Vah Ho$ àH$QZ An`m©ßV h¢, Vmo h_mao A{^_V H$mo conclusions are based on the audit evidence obtained up g§emo{YV H$aZm h¡& h_mao {ZîH$f© h_mao boIm narjH$ H$r [anmoQ© H$r VmarI to the date of our auditor’s report. However, future events VH$ àmßV boImnarjm gmú` Ho$ AmYma na h¡& VWm{n, ^{dî` _o§ hmoZo or conditions may cause the bank to cease to continue as a dmbr KQZmAmo§ `m pñW{V`mo§ go ~¢H$ H$mo H$m`©erb g§ñWm Ho$ ê$n _o§ ~Zo going concern. • Evaluate the overall presentation, structure and content of ahZm g_mßV hmo gH$Vm h¡& the Financial Statements, including the disclosures, and • àH$QZ g{hV {dÎmr` {ddaUmo§ H$r g_JŒ àñVw{V, g§aMZm Am¡a {df`dñVw whether the Financial Statements represent the underlying H$m _yë`m§H$Z {H$`m h¡ Am¡a Š`m {dÎmr` {ddaU A§V{Z©{hV boZXoZ Am¡a transactions and events in a manner that achieves fair KQZmAmo§ H$mo Bg Vah go Xem©Vo h¢ Omo C{MV àñVw{V H$a gH$Vo h¢& presentation. We communicate with those charged with governance h_ AÝ` _m_bmo§ Ho$ gmW A{êmgZ go Ow‹So `moOZm~Õ H$m`©joÌ Am¡a regarding, among other matters, the planned scope and boImnarjm H$m g_` VWm Am§V[aV {Z`§ÌUmo§ _o§ nmB© JB© C„oIZr` H${_`mo§ timing of the audit and signifi cant audit fi ndings, including g{hV boImnarjm {ZîH$f© Ho$ ~mao _o§ gy{MV H$aVo h¢& any signifi cant defi ciencies in internal control that we identify during our audit. h_ CZ bmoJmo§ H$mo Omo A{êmgZ Ho$ {bE CÎmaXm`r h¡, {ddaU Ho$ gmW `h We also provide those charged with governance with a gy{MV H$aVo h¢ {H$ h_Zo ñdV§ÌVm Ho$ g§~§Y _o§ g§JV Z¡{VH$ Amdí`H$VmAmo§ Statement that we have complied with relevant ethical H$m AZwnmbZ {H$`m h¡, Am¡a CZ g^r g§~§Y Ed§ AÝ` _m_bmo§ Ho$ ~mao _o§ requirements regarding independence, and to communicate ^r gy{MV {H$`m h¡, {Og_o§ g_w{MV ê$n go h_mar ñdV§ÌVm Am¡a Ohm± bmJy with them all relationships and other matters that may reasonably be thought to bear on our independence, and h¡, g§~§{YV gwajm, H$mo à^m{dV H$a gH$Vm h¡& A{êmgZ Ho$ Ow‹Sr ~mVmo§ where applicable, related safeguards. H$mo g§gy{MV _m_bmo§ go, h_ CZ _m_bmo§ H$mo {ZYm©[aV H$aVo h¢ Omo dV©_mZ From the matters communicated with those charged with Ad{Y Ho$ {dÎmr` {ddaUmo§ H$s boImnarjm _o§ g~go A{YH$ _hËd aIVo h¢ governance, we determine those matters that were of most Am¡a Bg{bE do boImnarjm g§~§Yr à_wI _m_bo h¢& signifi cance in the audit of the Financial Statements of the current period and are therefore the key audit matters. We h_ AnZo boImnarjH$ H$r [anmoQ© _o§ BZ _m_bmo§ H$mo V^r àñVwV H$aVo describe these matters in our auditor’s report unless law or h¢ O~ H$mZyZ `m {d{Z`_Z Bg _m_bo Ho$ ~mao _o§ gmd©O{ZH$ àH$QrH$aU regulation precludes public disclosure about the matter or Ho$ {bE amoH$ Zht bJmVm h¡ `m AË`§V {deof n[apñW{V`mo§ _o§, h_ `h when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because {ZU©` boVo h¢ {H$ h_mar [anmoQ© _o§ {H$gr _m_bo H$mo àH$Q Zht {H$`m OmZm the adverse consequences of doing so would reasonably be h¡ Š`mo§{H$ Eogm H$aZo Ho$ à{VHy b n[aUm_ gmd©O{ZH$ {hV Ho$ {déÕ hmo expected to outweigh the public interest benefi ts of such gH$Vr h¡& communication. AÝ` _m_bo Other Matter 8. We have not audited the fi nancial statements of the 8. h_Zo AZwf§Jr, H$mn© ~¢H {gŠ`mo{aQr {b{_QoS Ho {dÎmr` {ddaUmo§ H$s Subsidiary, Corpbank Securities Limited, whose fi nancial boImnarjm Zht H$s h¡, {OgH r {dÎmr` {ddaUr _o§ 31 _mM© , 2019 statements refl ect total assets of `125.02 Crores as at H$mo Hw$b AmpñV`m± `125.02 H amo‹S h¡ Am¡a Cgr {XZ g_mßV df© Ho March 31, 2019 and total revenues of `.9.73 Crores for ` the year ended on that date. These fi nancial statements {bE Hw b amOñd 9.73 H amo‹S h¡& BZ {dÎmr` {ddaUmo§ H r boImnarjm have been audited by another auditor whose report has Xygao boImnarjH Zo {H `m h¡, {OgH r {anmoQ© h_o§ Xr JB© h¡, Am¡a h_mar been furnished to us, and our opinion, in so far as it relates am`, Ohm± VH `h Cº AZwf§Jr Ho g§~§Y _o§ em{_b am{e`mo§ go g§~§{YV to the amounts included in respect of the said subsidiary, is h¡, nyar Vah go Xygao boImnarjH H$s {anmoQ© Ho AmYma na h¡& based solely on the report of the other auditor. Our opinion is not modifi ed in respect of this matter. Bg _m_bo Ho$ g§~§Y _o§ h_mar am` _o§ g§emoYZ Zht h¡& 9. The Balance Sheet and the Profi t and Loss Account have 9. VwbZ nÌ Am¡a bm^ hm{Z boIm ImVm ~¢qH$J {d{Z`_Z A{Y{Z`_, been drawn up in accordance with Section 29 of the 1949 H$r Ymam 29 Ho$ AZwgma V¡`ma {H$`m J`m h¡& Banking Regulation Act, 1949.

208 10. Cn`w©º 4 go 8 VH$ Ho$ n¡amJŒm\ _o§ ~VmB© JB© gr_mAmo§ VWm ~¢qH$J H§ nZr 10. Subject to the limitations of the audit indicated in paragraphs 4 to 8 above and as required by the Banking (CnHŒ _mo§ H$m AO©Z Ed§ A§VaU) A{Y{Z`_, 1970/1980 Ûmam Companies (Acquisition and Transfer of Undertakings) Ano{jVmZwgma, Am¡a CZ_o§ Ano{jV àH$QZmo§ H$r gr_mAmo§ Ho$ ^r AYrZ, Act, 1970/1980, and subject also to the limitations of h_ [anmoQ© H$aVo h¢ {H$… disclosure required therein, we report that: a) We have obtained all the information and explanations H$) h_Zo Eogr g^r gyMZm Ed§ ñnîQrH$aU àmßV {H$E h¢ Omo h_mar which, to the best of our knowledge and belief, were A{YH$V_ OmZH$mar Ed§ {dœmg _o§ h_mar boIm-narjm Ho$ {bE necessary for the purposes of our audit and have found them to be satisfactory; Amdí`H$ Wo Am¡a CÝho§ g§VmofOZH$ nm`m h¡; b) The transactions of the Group, which have come to I) g_yh Ho$ Omo boZXoZ h_mao Ü`mZ _o§ AmE, do g_yh Ho$ A{YH$mamo§ Ho$ our notice, have been within the powers of the Group; and ^rVa Wo; Am¡a c) The returns received from the offi ces and branches of J) ~¢H$ Ho$ H$m`m©b`mo§ Am¡a emImAmo§ go àmßV {dda{U`m± h_mar boIm- the Bank have been found adequate for the purposes of our audit. narjm Ho$ {bE n`m©ßV nmB© JB© h¢& 11. We further report that: 11. h_ AmJo [anmoQ© H$aVo h¢ {H$… a) in our opinion, proper books of account as required by law have been kept by the Group so far as it appears H$) h_mar am` _o§ h_mar boImnarjm Ho {bE àmßV Cº ~{h`mo§ VWm from our examination of those books and proper C{MV {dda{U`mo§ H r Om±M go àVrV hmoVm h¡ {H g_yh Zo {d{Y Ûmam returns adequate for the purposes of our audit have been received; Ano{jVmZwgma C{MV boIm ~{h`m± aIr h¡; b) the Balance Sheet, the Profi t and Loss Account and the I) Cº {anmoQ© _o§ em{_b VwbZnÌ, bm^ hm{Z {ddaU Am¡a ZH X àdmh Statement of Cash Flows dealt with by this report are in agreement with the books of account; and {ddaUr boIm ~{h`mo§ go _ob aIVo h¢; c) In our opinion, the Balance Sheet, the Profi t and Loss J) h_mar am` _o§, VwbZ nÌ, bm^ Ed§ hm{Z ImVo Ed§ ZH$X àdmh Account and the Statement of Cash Flows comply {ddaUr bmJy _mZH$ boIm_mZH$m| H$m AZwnmbZ H$aVr h¢ Am¡a do with the applicable accounting standards, to the extent they are not inconsistent with the accounting policies Ama~rAmB© Ûmam {Z{X©îQ> boIm Zr{V`m| Ho$ g§X^© _| {dM{bV Zht h¢Ÿ& prescribed by RBI. H¥$Vo XÎmm qgJbm EÊS H§ . H¥$Vo E. Ho . g~V EÊS H§ . H¥$Vo à_moX EÊS Egmo{gEQ²g gZXr boImH ma gZXr boImH ma gZXr boImH ma E\$AmaEZ-006185EZ E\$AmaEZ-321012B© E\$AmaEZ-001557gr (grE g§Ord AJ«dmb) (grE E. Ho . g~V) (grE a{dÝÐ amZrdmbm) gmÂmoXma gmÂmoXma gmÂmoXma gXñ` g§.503932 gXñ` g§. 30310 gXñ` g§. 073191 H¥$Vo MÝÐZ EÊS a_Z H¥$Vo Eg. am_mZ§X Aæà EÊS H§ . gZXr boImH ma gZXr boImH ma E\$AmaEZ-000571Eg E\$AmaEZ-000990EZ (grE Eg.Or. H$ë`mUa_U) (grE {dZmoX gr. _hmamUm) gmÂmoXma gmÂmoXma gXñ` g§.10652 gXñ` g§. 056373 ñWmZ … _§Jbyé {XZm§H$ … 17 _B©, 2019 For Datta Singla & Co. For A. K. Sabat & Co. For Pramod & Associates Chartered Accountants Chartered Accountants Chartered Accountants FRN - 006185N FRN - 321012E FRN - 001557C [CA Sanjeev Aggarwal] [CA A. K. Sabat] [CA Ravindra Raniwala] Partner Partner Partner Membership No. 503932 Membership No. 30310 Membership No. 073191 For Chandran & Raman For S. Ramanand Aiyar & Co. Chartered Accountants Chartered Accountants FRN - 000571S FRN: 000990N [CA S. G. Kalyanaraman] [CA Binod C. Maharana] Partner Partner Membership No. 10652 Membership No. 056373 Place : Mangaluru Date : 17 May, 2019 ANNUAL REPORT 2018-19 209 H$mnm}aoeZ ~¢H$ CORPORATION BANK 31 _mM©, 2019 H$s g_o{H$V pñW{V H$m VwbZ-nÌ CONSOLIDATED BALANCE SHEET AS ON 31st MARCH, 2019 (` 000’s hQ>mH$a Omitted) AZwgyMr g§. `Wm As on `Wm As on {ddaU PARTICULARS Schedule 31.03.2019 31.03.2018 No. ` ` ny±Or Am¡a Xo`VmE± CAPITAL AND LIABILITIES ny±Or Capital 1 1198,83,68 333,10,97 Share Application Money Pending Allotment Ama{jV {Z{Y`m± Am¡a A{Yeof Reserves and Surplus 2 15415,67,51 10554,70,91 Ý`yZ{hV Minority Interest Nil Nil O_mam{e`m± Deposits 3 184564,10,70 183309,04,59 CYma am{e`m± Borrowings 4 8394,25,52 22171,08,37 AÝ` Xo`VmE± d àmdYmZ Other Liabilities and Provisions 5 4051,24,06 5558,23,13 `moJ TOTAL 213624,11,47 221926,17,97 AmpñV`m± ASSETS ZH$Xr Am¡a ^maVr` [aµOd© ~¢H$ _| eof Cash and Balances with Reserve Bank of India 6 9661,06,91 11140,15,44 ~¢H$m| _| eof Am¡a _m±J VWm Aën gyMZm na YZ Balances with Banks and Money at Call and Short Notice 7 2909,05,44 177,90,18 {Zdoe Investments 8 60018,61,38 70379,27,68 A{J«_ Advances 9 121251,20,92 119868,83,71 ñWmB© AmpñV`m± Fixed Assets 10 1421,91,55 1229,31,51 AÝ` AmpñV`m± Other Assets 11 18362,25,27 19130,69,45 `moJ TOTAL 213624,11,47 221926,17,97 AmH$pñ_H$ Xo`VmE± Contingent Liabilities 12 62625,62,97 87356,57,84 CJmhr Ho$ {bE {~b Bills for Collection 13747,30,85 13893,39,89 _hËdnyU© boIm§H$Z Zr{V`m± Signifi cant Accounting Policies 17 boIm g§~§Yr {Q>ßn{U`m± Notes to the Accounts 18

CnamoŠV AZwgy{M`m± VwbZ nÌ H$m A{^ÝZ A§J h¢& The schedules referred to above form an integral part of Balance Sheet. h_mar g_{XZm§{H$V [anmoQ>© Ho$ AZwgma (nr.dr.^maVr) grB©Amo {ZXoeH H¥$Vo XÎmm qgJbm EÊS H§ . H¥$Vo M§ÐZ EÊS> a_Z à~§Y {ZXoeH$ Ed§ FRN N FRN S (Jmonmb _wabr ^JV) _Zrf JwßVm gZXr boImH ma -006185 gZXr boImH$a -000571 H$m¶©nmbH {ZXoeH (grE g§Ord AJ«dmb) (grE Eg. Or. H$ë`mUa_U) ({~énmj {_lm) nr. Ho . nm§Sm gmÂmoXma gXñ` g§.503932 gmPoXma gXñ`Vm g§.10652 H m`©nmbH {ZXoeH Ho . lr{Zdmg _y{V© (dr. _wÎmwH¥ îUZ) H¥$Vo E. Ho . g~V EÊS H§ . H¥$Vo Eg. am_mZ§X Aæà EÊS> H§$. _hmà~§YH E_. ^Jd§V amd gZXr boImH ma FRN-321012E gZXr boImH$ma FRN-000990N àXrn Hw$_ma O¡Z (kmZ a§OZ gma§Jr) (grE E. Ho . g~V) (grE {~ZmoX gr. _hmamUm) Cn _hmà~§YH {MÌm Jm¡ar bmb gmÂmoXma gXñ` g§. 30310 gmPoXma gXñ`Vm g§.056373 (gw^mf Hw _ma Ho ed) Cn _hmà~§YH H¥$Vo à_moX EÊS Egmo{gEQ²g ñWmZ … _§Jbyé gZXr boImH ma FRN-001557 C {XZm§H … 17 ‘B©, 2019 (grE a{dÝÐ amZrdmbm) gmÂmoXma gXñ` g§. 073191 210 31 _mM©, 2019 H$mo g_mßV df© Ho$ {bE g_o{H$V bm^-hm{Z ImVm CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH, 2019 (` 000’s hQ>mH$a Omitted) 31.03.2019 H$mo 31.03.2018 H$mo AZwgyMr g§. g_mßV df© g_mßV df© {ddaU PARTICULARS Schedule Year ended Year ended No. 31.03.2019 31.03.2018 ` ` I. Am` INCOME A{O©V ã`mO Interest Earned 13 15622,65,40 17628,36,00 AÝ` Am` Other Income 14 1881,43,59 2319,04,27 `moJ TOTAL 17504,08,99 19947,40,27 II. ì`` EXPENDITURE ì`` {H$`m J`m ã`mO Interest Expended 15 10113,91,23 12789,41,83 n[aMmbZ ì`` Operating Expenses 16 3487,02,71 3201,95,68 àmdYmZ Am¡a AmH$pñ_H$VmE± Provisions and Contingencies 10228,44,94 8005,95,95 `moJ TOTAL 23829,38,88 23997,33,46 III. Ý`yZ{hV ã`mO KQ>mZo go nhbo df© H$m g_o{H$V {Zdb bm^ Consolidated Net Profi t for the year before deducting Minority Interest -6325,29,89 -4049,93,19 KQ>mE±: Ý`yZ{hV ã`mO Less: Minority Interest – – df© hoVw J«yn H$m g_o{H$V {Zdb bm^ -6325,29,89 -4049,93,19 Consolidated Net Profi t of the Group for the year IV. {d{Z`moJ (go/H$mo$) APPROPRIATIONS (From/To) gm§{d{YH$ Ama{jV {Z{Y`m| _| AÝVaU Transfer to Statutory Reserves – – H$_©Mmar H$ë`mU {Z{Y _| AÝVaU Transfer to Staff Welfare Fund – – ny±Or Ama{jV {Z{Y`m| _| AÝVaU Transfer to Capital Reserves – – {Zdoe Ama{jV {Z{Y`m± Investment Reserve – -106,81,61 VwbZ-nÌ _| bo Om`r JB© eof am{e Balance carried over to B/S -6325,29,89 -3943,11,58 `moJ TOTAL -6325,29,89 -4049,93,19 à{V eoà AO©Z (`) Earning per Share (`) (30.03) (35.26) CnamoŠV AZwgy{M`m± bm^ VWm hm{Z ImVm H$m A{^ÝZ A§J h¢& The schedules referred to above form an integral part of Profi t and Loss Account.

As per our Report of even date [P. V. Bharathi] Directors For Datta Singla & Co. For Chandran & Raman Managing Director & Manish Gupta Chartered Accountants FRN-006185N Chartered Accountants FRN-000571S Chief Executive Ofﬁ cer [CA Sanjeev Aggarwal] [CA S.G. Kalyanaraman] P. K. Panda [Gopal Murli Bhagat] (M. No. 503932) Partner (M. No. 10652) Partner Executive Director K. Srinivasa Murthy For S. Ramanand Ayar & Co. [Birupaksha Mishra] M. Bhagavantha Rao For A. K. Sabat & Co. Executive Director Chartered Accountants FRN-000990N Pradeep Kumar Jain Chartered Accountants FRN-321012E [CA Binod C. Maharana] [V. Muthukrishnan] [CA A. K. Sabat] Chitra Gosuri Lal (M. No. 056373) Partner General Manager (M. No. 30310) Partner [Gyana Ranjan Sarangi] Deputy Gen. Manager For Pramod & Associates [Subhash Kumar Keshav] Chartered Accountants FRN-001557C Deputy Gen. Manager [CA Ravindra Raniwala] Place : Mangaluru (M. No. 073191) Partner Date : 17 May, 2019

ANNUAL REPORT 2018-19 211 31 _mM©, 2019 H$s pñW{V Ho$ AZwgma g_o{H$V VwbZ-nÌ _| g§b½Z AZwgy{M`m± SCHEDULES ANNEXED TO THE CONSOLIDATED BALANCE SHEET AS AT 31st MARCH, 2019 (` 000’s hQ>mH$a Omitted) 31.03.2019 H$mo g_mßV df© 31.03.2018 H$mo g_mßV df© {ddaU PARTICULARS Year Ended 31.03.2019 Year Ended 31.03.2018 ` ` ` ` AZwgyMr 1 – n±yOr SCHEDULE 1 – CAPITAL àm{YH¥$V n±yOr AUTHORISED CAPITAL àËòH$ `2 Ho$ 1500,00,00,000 B©pŠdQ>r eoà ` 1500,00,00,000 Equity Shares of 2/- each 3000,00,00 3000,00,00 {ZJ©{_V Ed§ A{^XÎm n±yOr ISSUED & SUBSCRIBED CAPITAL àËòH$ `2 Ho$ 599,41,84,034 B©pŠdQ>r eoà ({nN>bo df© _| àËòH$ `2 Ho 166,55,48,619) 599,41,84,034 Equity Shares of `2 each (Previous year 166,55,48,619 Equity Share of `2 each) àma§{^H$ eof Opening Balance 333,10,97 229,41,13 df© Ho$ Xm¡amZ n[adY©Z/(OãV)/Additions/(Forfeited) during the year 865,72,71 1198,83,68 103,69,84 333,10,97 àXÎm n±yOr PAID UP CAPITAL H$) Ho$ÝÐ gaH$ma Ûmam Ym[aV a) Held by Central Government 1120,95,99 1120,95,99 266,04,09 266,04,09 àËòH$ `2 Ho 560,47,99,271 B©pŠdQ>r eoà ({nN>bo df© _| àËòH$ `2 Ho 133,02,04,426 B©pŠdQ>r eoà) 560,47,99,271 Equity Shares of `2 each (Previous year 133,02,04,426 Equity Share of `2 each) I) OZVm Ed§ AÝ` Ûmam Ym[aV b) Held by the public & others 77,87,69 67,06,88 àËòH$ `2 Ho 38,93,84,763 B©pŠdQ>r eoà ({nN>bo df© _| àËòH$ `2 Ho 33,53,44,193 B©pŠdQ>r eoà) 38,93,84,763 Equity Shares of `2 each (Previous year 33,53,44,193 Equity Share of `2 each) KQ>mE±: Xo` Am~§Q>Z am{e Less : Allotment money due – – df© Ho$ Xm¡amZ OãV Forfeiture during the year – 77,87,69 – 67,06,88 `moJ TOTAL 1198,83,68 333,10,97 AZwgyMr 2 – Ama{jV {Z{Y`m± Am¡a A{Yeof SCHEDULE 2 – RESERVES AND SURPLUS I. gm§{d{YH$ Ama{jV {Z{Y`m± Statutory Reserves àma§{^H$ eof Opening Balance 3368,88,47 3368,88,47 df© Ho$ Xm¡amZ n[adY©Z Additions during the year – – {Zdoem| na _yë`õmg hoVw A{V[aŠV àmdYmZ go {d{Z`moJ Appropriation from excess Provision of Depreciation on Investments – – gm_mÝ` Ama{jV {Z{Y _| A§V[aV am{e Amount trfd. to Gen. Reserve – 3368,88,47 – 3368,88,47 II. ny±Or Ama{jV {Z{Y`m± Capital Reserves àma§{^H$ eof Opening Balance 1200,22,00 1200,22,00 df© Ho$ Xm¡amZ n[adY©Z Additions during the year – – nwZ: {ZJ©_Z hoVw nmÌ OãV eoà Forfeited shares eligible for Re-issue 1200,22,00 1200,22,00

212 g_o{H$V Consolidated ( ` 000’s hQ>mH$a Omitted)

31.03.2019 H$mo g_mßV df© 31.03.2018 H$mo g_mßV df© {ddaU PARTICULARS Year Ended 31.03.2019 Year Ended 31.03.2018 ` ` ` ` III. eo`a àr{_`_ Share Premium àmapå^H$ eof Opening Balance 5170,29,94 3086,99,78 df© Ho$ Xm¡amZ n[adY©Z Additions during the year 10911,64,57 2083,30,16 KQ>mE± : _m±J _| ~H$m`m am{e Less : Calls in Arrears – 16081,94,51 – 5170,29,94 IV. amOñd Ed§ AÝ` Ama{jV {Z{Y`m± Revenue & Other Reserves H$) amOñd Ama{jV {Z{Y`m± a) Revenue Reserves àmapå^H$ eof Opening Balance 3113,95,01 3096,63,72 df© Ho$ Xm¡amZ n[adY©Z Additions during the year 19,25,54 17,31,28 3133,20,54 3113,95,00 df© Ho$ Xm¡amZ H$Q>m¡{V`m± Deductions during the year – 3133,20,54 – 3113,95,00 I) {deof Ama{jV {Z{Y`m± b) Special Reserve àmapå^H$ eof Opening Balance 1436,60,74 1436,60,74 df© Ho$ Xm¡amZ n[adY©Z Additions during the year – – H$m°n© ~¢H$ hmo_ go A§VaU Transferred from Corp Bank Homes – – df© Ho$ Xm¡amZ H$Q>m¡{V`m± Deductions during the year – 1436,60,74 – 1436,60,74 J) {Zdoe Ama{jV {Z{Y c) Investment Reserve àmapå^H$ eof Opening Balance – 106,81,61 bm^-hm{Z {d{Z`moJ ImVo go A§VaU Transfer from Proﬁ t and Loss Appropriation Account – -106,81,61 – – – – V. ^y{_ Am¡a ^dZ Ho$ nwZ_y©ë`m§H$Z hoVw Ama{jV {Z{Y Reserve for Revaluation of Land and Building àmapå^H$ eof Opening Balance 646,81,55 663,27,86 df© Ho$ Xm¡amZ n[adY©Z Addition during the year 274,61,95 – KQ>mE± : df© Ho$ Xm¡amZ AmhaU Less: Withdrawal during the year 19,25,54 902,17,96 16,46,31 646,81,55 VI. bm^ hm{Z ImVo _| eof Balance of P & L Account -10707,36,70 -4382,06,79 `moJ TOTAL (I+II+III+IV+V+VI) 15415,67,51 10554,70,91

ANNUAL REPORT 2018-19 213 g_o{H$V Consolidated ( ` 000’s hQ>mH$a Omitted) 31.03.2019 H$mo g_mßV df© 31.03.2018 H$mo g_mßV df© {ddaU PARTICULARS Year Ended 31.03.2019 Year Ended 31.03.2018 ` ` AZwgyMr 3 – O_mam{e`m± SCHEDULE 3 – DEPOSITS H$ A. I. _m±J O_mam{e`m± Demand Deposits i) ~¢H$m| go From Banks 31,69,15 22,71,85 ii) AÝ`m| go From Others 16164,32,84 14675,77,85 II. ~MV ~¢H$ O_mam{e`m± Savings Bank Deposits 42106,72,01 39424,40,64 III. _r`mXr O_mam{e`m± Term Deposits i) ~¢H$m| go From Banks 164,33,67 176,24,70 ii) AÝ`m| go From Others* 126097,03,03 129009,89,55 `moJ TOTAL (I, II d & III) 184564,10,70 183309,04,59 B. i) I ^maV _| pñWV emImAm| H$s O_mam{e`m± 184564,10,70 183309,04,59 Deposits of branches in India ii) ^maV Ho$ ~mha H$s emImAm| H$s O_mam{e`m± Deposits of Branches outside India – – `moJ TOTAL 184564,10,70 183309,04,59 * {Og_| em{_b h¢ H$mn©JmoëS> O_mam{e`m± which includes Corpgold Deposits 13,97,98 14,88,80 E\$grEZAma O_mam{e`m± FCNR Deposits 1527,77,14 1574,97,47 AZwgyMr 4 – CYma am{e`m± SCHEDULE 4 – BORROWINGS I. ^maV _| CYma am{e`m± Borrowings in India i) ^maVr` [aµOd© ~¢H Reserve Bank of India 425,00,00 8750,00,00 ii) AÝ` ~¢H$ Other Banks 4282,94,46 6479,27,78 iii) AÝ` g§ñWmE± Ed§ EO|{g`m± Other Institutions and Agencies 86,31,06 104,30,59 iv) Ama{jV ~m§S>/AmB©nrS>rAmB© Am¡a AYrZñW F$U 3600,00,00 6837,50,00 Unsecured Bonds/IPDI and Subordinated Debts* `moJ TOTAL 8394,25,52 22171,08,37 II. a) ^maV Ho$ ~mha CYma am{e`m± Borrowings outside India – – `moJ TOTAL (I d & II) 8394,25,52 22171,08,37 CnamoŠV I & II _| g_m{hV gwa{jV CYma Secured borrowings included in I & II above * g{hV Includes Agwa{jV {d_moÀ` ~m§S> (Q>rà-II) Unsecured Redeemable Bonds (Tier II) 3100,00,00 4300,00,00 Q>rà-I ~o_r`mXr ~m§S Tier I Perpetual Bonds 500,00,00 737,50,00 A{V[aŠV Q>rà-I {garO II Additional Tier I Series II – – A{V[aŠV Q>rà-I ~o_r`mXr ~m§S Additional Tier I Perpetual Bonds – 1800,00,00

214 g_o{H$V Consolidated ( ` 000’s hQ>mH$a Omitted) 31.03.2019 H$mo g_mßV df© 31.03.2018 H$mo g_mßV df© {ddaU PARTICULARS Year Ended 31.03.2019 Year Ended 31.03.2018 ` ` AZwgyMr 5 – AÝ` Xo`VmE± Ed§ àmdYmZ SCHEDULE 5 – OTHER LIABILITIES AND PROVISIONS I. Xo` {~b Bills payable 487,96,95 1137,99,46 II. AÝVa-H$m`m©b` g_m`moOZ ({Zdb) Inter-Ofﬁ ce adjustments (net) 114,83,76 – III. Cn{MV ã`mO Interests accrued 774,64,95 773,55,62 IV. AmñW{JV H$a Xo`Vm Deferred Tax Liability – – V. AÝ` (àmdYmZm| g{hV)* Others (including provisions)* 2673,78,40 3646,68,05 `moJ TOTAL 4051,24,06 5558,23,13 * _mZH$ AmpñV`m| Ho$ ~Xbo AmH$pñ_H$ àmdYmZ em{_b 740,23,78 559,71,25 * Includes contingent provisions against standard assets AZwgyMr 6 – ZH$Xr Am¡a ^maVr` [a‹Od© ~¢H$ _| eof SCHEDULE 6 – CASH AND BALANCES WITH RESERVE BANK OF INDIA I. hñVJV amoH$‹S> ({dXoer _wÐm ZmoQ>m|> Am¡a JmoëS> g{hV) Cash in hand (including foreign currency notes and Gold) 1083,77,46 1234,33,56 II. ^maVr` [aµOd© ~¢H$ Ho$ nmg eof Balances with the Reserve Bank of India in - Mmby ImVm§o Current Accounts 7202,29,45 8705,81,88 - AÝ` ImVm§o Other Accounts 1375,00,00 1200,00,00 `moJ TOTAL (I, II d & III) 9661,06,91 11140,15,44 AZwgyMr 7 – ~¢H$m| _| eof Ed§ _m±J VWm Aën gyMZm na am{e SCHEDULE 7 – BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICES I. ^maV _| In India i) ~¢H$m| _| eof Balances with Banks H$ a) Mmby ImVm| _| In Current Accounts 73,19,35 143,38,04 I b) AÝ` O_m ImVm| _| In Other Deposit Accounts 37,79 30,02 ii) _m±J Ed§ Aën gyMZm na YZ Money at Call and Short Notice H$ a) ~¢H$m| _| with Banks – – I b) AÝ` g§ñWmAm| _| with other Institutions – – `moJ TOTAL (i+ii) 73,57,14 143,68,06 II. ^maV Ho$ ~mha Outside India i) Mmby ImVm| _| In Current Accounts – 34,21,92 ii) AÝ` O_m ImVm| _| In Other Deposit Accounts 2835,48,30 20 iii) _m§J Am¡a Aën gyMZm na YZ Money at Call and Short Notice Nil Nil `moJ TOTAL (i+ii+iii) 2835,48,30 34,22,12 gH$b `moJ GRAND TOTAL (I d & II) 2909,05,44 177,90,18

ANNUAL REPORT 2018-19 215 g_o{H$V Consolidated ( ` 000’s hQ>mH$a Omitted) 31.03.2019 H$mo g_mßV df© 31.03.2018 H$mo g_mßV df© {ddaU PARTICULARS Year Ended 31.03.2019 Year Ended 31.03.2018 ` ` AZwgyMr 8 – {Zdoe SCHEDULE 8 – INVESTMENTS ^maV _| {Zdoe (gH$b) Investment in India (Gross) 61254,58,04 71518,29,37 KQ>mE±: _yë`õmg Ho$ {bE àmdYmZ Less: Provision for depreciation 1235,96,66 1139,01,69 {Zdb {Zdoe Net Investments 60018,61,38 70379,27,68 I. ^maV _| {Zdoe Investments in India in i) gaH$mar à{V^y{V`m± Government Securities 41474,56,08 58173,35,57 ii) AÝ` AZw_mo{XV à{V^y{V`m± Other Approved Securities 99,61 1,49,39 iii) eo`a Shares 246,37,87 466,06,45 iv) {S>~|Ma Am¡a ~m§S> Debentures and Bonds 2471,85,58 3169,63,13 v) gh`mo{J`m| _| {Zdoe Investments in Associates – – vi) AÝ` Others H$ a) O_m à_mUnÌ Certiﬁ cate of Deposit 580,15,16 3101,92,16 I b) dm{UpÁ`H$ nÌ Commercial Paper 93,17,10 1883,98,00 J c) å`yMwAb \§$S>m| H$s `y{ZQ>| Units of Mutual Funds 13,42,05 23,88,53 K d) d|Ma n§yOr {Z{Y`m§ Venture Capital Funds 72,88,11 78,43,02 L> e) gaH$mar {deof à{V^y{V`m± Government Special Securities 14926,57,16 3340,34,30 M> f) à{V^y{V àmpßV`m± Security Receipts 138,08,48 139,62,95 `moJ TOTAL 60018,07,20 70378,73,50 II. ^maV Ho$ ~mha {Zdoe – pñdâQ> _| Investments outside India – In Swift 54,18 54,18 `moJ TOTAL (I d & II) 60018,61,38 70379,27,68 AZwgyMr 9 – A{J«_ SCHEDULE 9 – ADVANCES

H$ A. i) IarXo Ed§ ^wZm`o J`o {~b 931,80,63 1680,15,72 Bills purchased and discounted ii) ZH$X CYma, AmodaS´>mâQ> Ed§ _m±J na à{Vg§Xo` F$U 41619,71,21 42300,61,30 Cash Credits, Overdrafts and Loans Repayable on Demand iii) _r`mXr GU Term Loans 78699,69,08 75888,06,69 `moJ TOTAL 121251,20,92 119868,83,71 I B. i) _yV© AmpñV`m| Ûmam à{V^yV (~hr G$Um| na A{J«_ g{§§hV) 95914,76,45 106030,83,48 Secured by Tangible Assets (includes Advances against book debts) ii) ~¢H$/gaH$mar Jma§{Q>`m| Ûmam a{jV Covered by Bank/Government Guarantees 10,61,47 35,92,33 iii) J¡a-O_mZVr Unsecured 25325,83,00 13802,07,90 `moJ TOTAL 121251,20,92 119868,83,71 J C. I. ^maV _| A{J«_ Advances in India i) àmW{_H$Vm àmßV joÌ Priority Sector 49505,99,46 54623,03,26 ii) gmd©O{ZH$ joÌ Public Sector 10328,63,88 1029,96,41 iii) ~¢H$ Banks – – iv) AÝ` Others 61416,57,58 64215,84,04 `moJ TOTAL 121251,20,92 119868,83,71 J C. II. ^maV Ho$ ~mha A{J«_ Advances outside India Nil Nil gH$b `moJ GRAND TOTAL (J C. I d & J C. II) 121251,20,92 119868,83,71

216 g_o{H$V Consolidated ( ` 000’s hQ>mH$a Omitted) 31.03.2019 H$mo g_mßV df© 31.03.2018 H$mo g_mßV df© {ddaU PARTICULARS Year Ended 31.03.2019 Year Ended 31.03.2018 ` ` AZwgyMr 10 – AMb AmpñV`m± SCHEDULE 10 – FIXED ASSETS I. n[aga Premises {nN>bo df© H$s 31 _mM© H$s pñW{V Ho$ AZwgma bmJV na At cost as on 31st March of the preceding year 924,01,08 923,47,53 df© Ho$ Xm¡amZ n[adY©Z Additions during the year 278,80,22 59,10 1202,81,30 924,06,63 df© Ho$ Xm¡amZ H$Q>m¡{V`m± Deductions during the year 9,83,52 5,55 1192,97,78 924,01,08 `Wm {V{W _yë`õmg Depreciation to date 151,42,90 132,76,13 1041,54,88 791,24,95 OmoS>|: ny°§OrJV Mmby H$m`© Add: Capital Work in progress 4,29,26 1045,84,14 69,50 791,94,45

II. AÝ` AMb AmpñV`m± (Bg_| \$ZuMa Am¡a Ow‹S>Zma gpå_{bV h¡|) Other Fixed Assets (including furniture & ﬁ xtures) {nN>bo df© H$s 31 _mM© H$s pñW{V Ho$ AZwgma bmJV na At cost as on 31st March of the preceding year 1417,12,24 1356,30,11 df© Ho$ Xm¡amZ n[adY©Z Additions during the year 57,52,75 78,16,07 1474,64,99 1434,46,18 df© Ho$ Xm¡amZ H$Q>m¡{V`m± Deductions during the year 19,50,28 17,33,94 1455,14,72 1417,12,24 `Wm {V{W _yë`õmg Depreciation to date 1137,96,62 1040,50,62 317,18,10 376,61,62 OmoS>|: ny§OrJV Mmby H$m`© Add: Capital Work in progress 11,05 317,29,15 43,90 377,05,52

III. A_yV© AmpñV`m± (H$åß`yQ>a gm°âQ>do`a) Intangible Assets (Computer Software) {nN>bo df© H$s 31 _mM© H$s pñW{V Ho$ AZwgma bmJV na At cost as on 31st March of the preceding year 243,11,16 205,59,23 df© Ho$ Xm¡amZ n[adY©Z Additions during the year 37,04,08 37,52,31 280,15,24 243,11,54 df© Ho$ Xm¡amZ H$Q>m¡{V`m± Deductions during the year 9,48,94 38 270,66,30 243,11,16 `Wm {V{W _yë`õmg Depreciation to date 211,88,04 58,78,26 182,79,62 60,31,54

`moJ TOTAL (I+ II+III) 1421,91,55 1229,31,51

ANNUAL REPORT 2018-19 217 g_o{H$V Consolidated (` 000’s hQ>mH$a Omitted) 31.03.2019 H$mo g_mßV df© 31.03.2018 H$mo g_mßV df© {ddaU Particulars Year Ended 31.03.2019 Year Ended 31.03.2018 ` ` AZwgyMr 11 – AÝ` AmpñV`m± SCHEDULE 11 – OTHER ASSETS I. A§Va H$m`m©b` g_m`moOZ ({Zdb) I nter Office Adjustments (Net) – 652,19,67 II. Cn{MV ã`mO I nterest accrued 1706,06,38 1409,35,76 III. _¡Q> O_m CnbãYVm Mat Credit Availability 655,28,45 662,12,81 IV. nyd©g§XÎm H$a/òmoV na H$mQ>m J`m H$a Tax paid in advance/TDS 291,43,30 272,05,92 V. H|$Ðr` _yë` `mo{OV H$a O_m C envat Credit 39,81,19 34,02,05 VI. {ddmX Ho$ VhV àXÎm H$a T axes paid under Dispute 2927,45,72 1837,01,65 VII. boIZ gm_J«r Ed§ ñQ>mån S tationery and stamps 4,78,60 4,82,91 VIII. Xmdm| Ho$ emoYZ _| àmßV J¡a-~¢qH$J AmpñV`m± Non-banking assets acquired in satisfaction of claims 9,44 9,44 IX. AmñW{JV H$a AmpñV Deferred Tax Asset 5446,26,73 3706,18,80 X. AmaAmB©S>rE\$/{gS>~r/AmaEMS>rE\$ O_mAm| Ho$ VhV Zm~mS>© _| {Zdoe I nvestment with NABARD under RIDF/SIDBI/RHDF Dep. 5918,77,72 7555,02,84 XI. AÝ` Others 1372,27,74 2997,77,60 `moJ TOTAL 18362,25,27 19130,69,45

AZwgyMr 12 – AmH$pñ_H$ Xo`VmE± SCHEDULE 12 – CONTINGENT LIABILITIES I. ~¢H$ Ho$ {déÕ Xmdo {OÝh| H$O© Ho$ ê$n _| ñdrH$ma Zht {H$`m J`m Claims against the bank not acknowledged as debts 3232,79,24 2310,44,77 II. S>rBEE\$ - ^m[a~¢$ Ho$ nmg eof DEAF - Balance with RBI 116,56,16 99,66,99 III. à{Vd{V© aonmo na IarXr JB© à{V^y{V S ecurities Purchased under Reverse Repo 6246,42,42 1200,00,04 IV. H$) ~H$m`m dm`Xm {dXoer {d{Z_` g§{dXmAm| Ho$ ~m~V Xo`Vm A. Liability on account of outstanding forward exchange contracts 36004,23,88 58493,84,44 I) ì`wËnÝZr B. Derivatives 924,00,00 72,60,00 V. g§KQ>H$m| H$s Amoa go Xr JB© Jma§{Q>`m± Guarantees given on behalf of constituents H$ a) ^maV _| in India 11583,83,58 14530,82,67 I b) ^maV Ho$ ~mha outside India 223,25,88 1561,83,49 VI. ñdrH¥${V`m±, n¥ð>m§H$Z Ed§ AÝ` ~mÜ`VmE± Acceptances, endorsements and other obligations 4189,45,19 8933,60,32 VII. AÝ` _X| {OZHo$ {bE ~¢H$ AmH$pñ_H$ ê$n go CÎmaXm`r h¡ Other items for which the Bank is contingently liable 105,06,62 153,75,12 `moJ TOTAL 62625,62,97 87356,57,84

218 g_o{H$V Consolidated (` 000’s hQ>mH$a Omitted) 31.03.2019 H$mo g_mßV df© 31.03.2018 H$mo g_mßV df© {ddaU Particulars Year Ended 31.03.2019 Year Ended 31.03.2018 ` ` AZwgyMr 13 – A{O©V ã`mO SCHEDULE 13 – INTEREST EARNED I. A{J«_m|/{~bm| na ã`mO/~Q²>Q>m I nterest/Discount on advances/bills 10992,61,82 11471,23,57 II. {Zdoem| na Am` Income on investments 4120,20,01 5164,38,96 III. ^maVr` [aµOd© ~¢H$ _| O_mam{e`m| Am¡a AÝ` A§Va-~¢H$ {Z{Y`m| na ã`mO I nterest on balances with Reserve Bank of India and other Inter-bank Funds 22,85,31 81,70,14 IV. AÝ` Others 486,98,26 911,03,33 `moJ TOTAL 15622,65,40 17628,36,00

AZwgyMr 14 – AÝ` Am` SCHEDULE 14 – OTHER INCOME I. H$_reZ, {d{Z_` Ed§ Xbmbr Commission, exchange and brokerage 316,27,23 362,75,22 II. {Zdoem| H$s {~H«$s na bm^ ({Zdb) Profit on sale of investments (net) -80,92,51 735,83,13 III. ^y{_, ^dZm| Ed§ AÝ` AmpñV`m| H$s {~H«$s na bm^ ({Zdb) Profit on sale of land, buildings and other assets (net) -1,49,49 45,07 IV. {d{Z_` boZ-XoZm| na bm^ ({Zdb) Profit on exchange transactions (net) 99,18,07 161,06,59 V. AZwf§{J`m|/H§$n{Z`m| go bm^m§e Am{X Ho$ ê$n _| A{O©V Am` Income earned by way of dividends, etc. from subsidiaries/companies 3,32,66 5,92,17 VI. {d{dY Am` Miscellaneous income 1545,07,63 1053,02,09 `moJ TOTAL 1881,43,59 2319,04,27 AZwgyMr 15 – ì`` {H$`m J`m ã`mO SCHEDULE 15 – INTEREST EXPENDED I. O_mam{e`m| na ã`mO I nterest on deposits 9499,99,05 11638,51,55 II. ^maVr` [aµOd© ~¢H$/A§Va-~¢H$ CYmam| na ã`mO I nterest on Reserve Bank of India/inter-bank borrowings 119,61,64 221,07,82 III. AÝ` Others 494,30,54 929,82,46 `moJ TOTAL 10113,91,23 12789,41,83

ANNUAL REPORT 2018-19 219 g_o{H$V Consolidated (` 000’s hQ>mH$a Omitted) 31.03.2019 H$mo g_mßV df© 31.03.2018 H$mo g_mßV df© {ddaU Particulars Year Ended 31.03.2019 Year Ended 31.03.2018 ` `

AZwgyMr 16 – n[aMmbZ ì`` SCHEDULE 16 – OPERATING EXPENSES I. H$_©Mm[a`m| H$mo ^wJVmZ Am¡a CZHo$ {bE àmdYmZ Payment to and provisions of employee 1747,47,00 1593,43,39 II. {H$am`m, H$a Ed§ {~Obr R ent, taxes and lighting 318,39,70 308,50,38 III. _wÐU Ed§ boIZ-gm_J«r Printing and stationery 22,00,44 22,38,63 IV. {dkmnZ Ed§ àMma A dvertisement and Publicity 3,08,67 3,10,37 V. ~¢H$ H$s g§n{Îm na _yë`õmg Depreciation on bank’s property 176,54,38 175,41,49 VI. {ZXoeH$m| H$s \$sg, ^Îmo Am¡a ì`` Directors’ fees, allowances and expenses 33,32 75,93 VII. boIm narjH$m| H$s \$sg Ed§ ì`` (emIm boIm narjH$m| g{hV) A uditors’ fees and expenses (including branch auditors) 25,04,34 25,86,24 VIII. {d{Y à^ma Law charges 6,04,25 3,11,73 IX. S>mH$ IM©, Vma, Q>obr\$moZ Am{X Postages, Telegrams, Telephones, etc. 77,55,70 64,94,74 X. _aå_V Ed§ AZwajU Repairs and maintenance 115,81,08 113,42,90 XI. ~r_m Insurance 235,62,59 258,73,28 XII. AÝ` ì`` Other expenditure 759,11,24 632,26,60 `moJ TOTAL 3487,02,71 3201,95,68

220 AZwgyMr 17 Schedule 17 SIGNIFICANT ACCOUNTING _hËdnyU© boIm§H Z Zr{V`m± Omo 31 _mM©, 2019 POLICIES FORMING PART OF THE CONSOLIDATED ACCOUNTS FOR THE H$moo g_mßV df© Ho g_o{H V boImo§ H$m A§J h¢ YEAR ENDED MARCH 31, 2019

1. g_oH Z Ho {gÕm§V 1. Principles of Consolidation The Consolidated Financial Statements include the g_o{H$V {dÎmr` {ddaUmo§ _o§ H$mnmo©aoeZ ~¢H$ (~¢H$) Am¡a CgH$s AZwf§Jr fi nancial statements of Corporation Bank (‘the Bank’) and H$mn©~¢H$ goŠ`y[aQrµO {b. Ho {dÎmr` {ddaU em{_b h¢& its subsidiary Corpbank Securities Limited. The fi nancial statements of the Bank and its subsidiary have ~¢H$ Am¡a BgH$s AZwf§Jr H$m {dÎmr` {ddaU A§Vam-g_yh eofmo§ Am¡a been combined on a line by line basis by adding together A§Vam-g_yh boZXoZmo§ H$mo, AÝ`Wm Cp„{IV Ho {gdm`, nyU©V… {Za{gV the book values of like items of assets, liabilities, income H$aZo Ho ~mX AmpñV`mo§, Xo`VmAmo§, Am` Ed§ ì`` O¡gr _Xmo§ Ho ~hr _yë`mo§ and expenses, after eliminating intra group balances and H$mo gmW Omo‹SH$a n§{º-Xa-n§{º AmYma na EH$ gmW {_bm`m J`m h¡& intra group transactions, except wherever otherwise stated. 2. Basis of Preparation 2. V¡`ma H$aZo H m AmYma The consolidated fi nancial statements of the Bank and ~¢H$ Am¡a BgH$s AZwf§Jr Ho g_o{H$V {dÎmr` {ddaU ^maVr` gZXr its subsidiary have been prepared in accordance with the Accounting Standards issued by the Institute of Chartered boImH$ma g§ñWmZ Ûmam Omar boIm§H$Z _mZH$ Ûmam Omar ñdrH¥ V boIm§H$Z Accountants of India. {gÕm§Vmo§ Ho AZwê$n V¡`ma {H$ò Jò h¢& The fi nancial statements have been prepared and presented {dÎmr` {ddaU boIm§H$Z Ho Cn{MV AmYma na Eo{Vhm{gH$ bmJV na§nam Ho under the historical cost convention on accrual basis of accounting unless otherwise stated and except for VhV V¡`ma VWm àñVwV {H$E JE h¢, VWm AÝ`Wm Cp„{IV Ho {gdm` VWm items recognized on cash basis, as per guidelines issued ^maVr` [aµOd© ~¢H$ (^m.[a.~¢.) Ûmam Omar {Xem{ZXo©emo§ Ho AZwgma ZH$Xr by the Reserve Bank of India [‘RBI’] and comply with AmYma na {ZYm©[aV _Xmo§ Ho Abmdm ò ^maVr` gZXr boImH$ma g§ñWmZ the Accounting Standards issued by the Institute of Ûmam Omar boIm _mZH$mo§ VWm ~¢qH$J {d{Z`_Z A{Y{Z`_, 1949 VWm Chartered Accountants of India and relevant requirements prescribed under the Banking Regulation Act, 1949 and H§$nZr A{Y{Z`_, 2013 Ho VhV {ZYm©[aV g§~§{YV AnojmAmo§ VWm the Companies Act, 2013, and current practices prevailing ^maV _o§ ~¢qH$J CÚmoJ _o§ àM{bV dV©_mZ ar{V`mo§ Ho AZwê$n h¢& in the banking industry in India. gm_mÝ` ê$n go ñdrH¥$V boIm§H$Z {gÕm§Vmo§ (J¡n) Ho AZwê$n {dÎmr` The preparation of fi nancial statements in conformity with Generally Accepted Accounting Principles [GAAP] requires {ddaUmo§ H$mo V¡`ma H$aZo _o§ à~§YZ dJ© go Ano{jV hmoVm h¡ {H$ {dÎmr` the Management to make estimates and assumptions {ddaUmo§ Ho {XZm§H$ `Wm {dÚ_mZ [anmoQ© H$s JB© AmpñV`mo§ d Xo`VmAmo§ considered in the reported amounts of assets and liabilities (AmH$pñ_H$ Xo`VmAmo§ g{hV) H$s am{e VWm [anmoQm©YrZ Ad{Y Ho Xm¡amZ (including contingent liabilities) as of the date of the [anmoQ© H$s JB© Am` d ì``mo§ na àm¸ bZ d AZw_mZ H$ao§& à~§YZ dJ© H$m fi nancial statements and the reported income and expenses during the reporting period. The Management believes _mZZm h¡ {H$ {dÎmr` {ddaU V¡`ma H$aZo _o§ à`wº àm¸ bZ {ddoH$nyU© Ed§ that the estimates used in the preparation of the fi nancial VH©$ g§JV h¢& dmñV{dH$ Am§H$‹So BZ àm¸ bZmo§ go {^Þ hmo gH$Vo h¢& statements are prudent and reasonable. Actuals could differ {ZåZ{b{IV AZwf§Jr H$mo boIm§H$Z _mZH$ 21 "g_o{H$V {dÎmr` {ddaU' from these estimates. Ho AZwgma g_o{H$V {H$`m J`m h¡… The following subsidiary has been consolidated as per the Accounting Standard 21, “Consolidated Financial H§ nZr H m Zm_ Xoe/{Zdmg g§~§Y ñdm{_Ëd {hV Statements”: Name of the Country / Relationship Ownership H mn© ~¢H ^maV AZwf§Jr 100% Company Residence Interest {gŠ`w[aQrµO {b{_QoS Corpbank India Subsidiary 100% Securities Limited AZwf§Jr Ho {dÎmr` {ddaUmo§ H$mo Amdí`H$VmZwgma ~¢H$ Ho Am§H$‹S>mo§ Ho gmW The subsidiary company fi gures are regrouped to conform nwZg©_y{hV {H$`m J`m h¡& with those of the Bank, wherever necessary. AZwf§Jr Zo Hw N _m_bmo§ _o§ g_mZ boZXoZ Ed§ EH$ hr àH$ma H$s n[apñW{V`mo§ The subsidiary has used accounting policies other than those Ho _m_bo _o§ ~¢H$ Ûmam AnZmB© JB© boImH$Z Zr{V`mo§ go {^Þ boIm§H$Z Zr{V adopted by the Bank, in certain cases, for like transactions

ANNUAL REPORT 2018-19 221 H$m à`moJ {H$`m h¡& g_o{H$V {dÎmr` {ddaUmo§ H$mo V¡`ma H$aZo Ho {bE and events in similar circumstances. No adjustments have Cn`moJ H$aVo g_` AZwf§Jr Ho {dÎmr` {ddaUmo§ _o§ H$moB© g_m`moOZ Zht been made to the fi nancial statements of the subsidiary, when they are used in preparing the consolidated fi nancial {H$`m J`m h¡& statements. g_oH$Z _o§ à`wº, AZwf§Jr Ho {dÎmr` {ddaU _yb H§$nZr Ho [anmo{Q>ªJ The fi nancial statements of the subsidiary used in the {XZm§H$ AWm©V² 31 _mM© 2019 VH$ Ho hr h¢& consolidation are drawn up to the same reporting date as that of the parent company i.e. year ended March 31, 3. Am` {ZYm©aU 2019. H ) ~¢qH J g§ñWm… 3. REVENUE RECOGNITION i) {ZåZ H$mo Nmo‹SH$a Cn{MV AmYma na Am` H$mo {ZYm©[aV {H$`m a. Banking Entity: J`m h¡… i) Income is recognized on an accrual basis except: 1. ~¢H$ Jma§{Q`mo§ Ed§ gmI nÌ, Amny{V©H$Vm©/H«o$Vm G$U H$s 1. Commission on Bank Guarantees and Letters of Credit; arrangement of suppliers/buyers ì`dñWm na H$_reZ; VWm bm°H$a {H$am`m Omo àmpßV AmYma Credit; and Locker rent which are recognized na {ZYm©[aV {H$`m J`m h¡& on receipt basis. 2. J¡a-{ZînmXH$ A{JŒ_mo§ VWm {Zdoemo§ na ã`mO Am` VWm 2. Interest income on Non-Performing advances Ho§ Ð gaH$ma Ûmam Jma§QrH¥ V à{V^y{V`mo§ na ã`mO Am`, and investments, and securities guaranteed {OZHo {bE 90 {XZmo§ Ho A§Xa ã`mO dgyb Zht hmoVm h¡, by Central Government where interest is àmpßV AmYma na {ZYm©[aV H$s JB© h¡& not realized within 90 days is recognized on receipt basis. 3. Am`-H$a dmn{g`mo§ na ã`mO H$m boIm§H$Z Am`H$a {d^mJ 3. Interest on Income-tax refunds is accounted go gyMZm AmXoe àmßV hmoZo na {H$`m J`m h¡& for on receipt of Intimation order from the ii) "n[an¹Vm VH$ Ym[aV' àdJ© _o§ {Zdoemo§ H$s {~H«$s na àmßV bm^, Income Tax Department. {Ogo bm^-hm{Z boIo _o§ {ZYm©[aV {H$`m J`m h¡ VWm VXZ§Va ii) Profi t or loss on sale of investments is recognized ^m.[a.~¢. Ho {Xem{ZXo©emo§ Ho AZwgma Ama{jV ny±Or ImVo _o§ in the Profi t and Loss Account on settlement basis at the time of sale except the realized profi t on {d{Z`mo{OV {H$`m J`m h¡, H$mo Nmo‹SH$a {Zdoe H$s {~H«$s na bm^ sale of investments in 'Held to Maturity' category `m hm{Z H$mo {~H«$s Ho g_` {ZnQmZ AmYma na bm^-hm{Z boIo which is recognized in the profi t and loss account _o§ {ZYm©[aV {H$`m J`m h¡& and subsequently appropriated to capital reserve iii) ~¢H$ Ho àË`j A§eXmZ na àmßV Xbmbr/H$_reZ/àmoËgmhZ account in accordance with the RBI guidelines. am{e H$mo à{V^y{V`mo§ H$s bmJV go H$mQm J`m h¡, O~{H$ iii) Brokerage/commission/incentives received on à{V^y{V`mo§ Ho AO©Z hoVw àXÎm Xbmbr H$mo amOñd ì`` Ho ê$n Bank’s direct subscriptions are deducted from the cost of securities, whereas brokerage paid in _o§ _mZm J`m h¡& connection with acquisition of securities is treated iv) à{V^y{V`mo§ Ho H«$` `m {dH«$` na I§{SV Ad{Y-ã`mO H$mo as revenue expenditure. amOñd _X Ho ê$n _o§ _mZm J`m h¡& iv) The broken period interest on sale or purchase of securities is treated as revenue item. I) J¡a-~¢qH J g§ñWm… b. Non-Banking Entity: i) {XZm§{H$V gaH$mar à{V^y{V`mo§ na Cn{MV ã`mO H$mo CgH$s i) Interest accrued on Dated Government Securities Hy$nZ Xa na {ZYm©[aV {H$`m OmVm h¡& is recognized at its coupon rate. ii) pñWa Am` à{V^y{V`mo§ H$s IarX Ed§ {~H«$s _yë` H$mo bmJV ii) Purchase and sale price of fi xed income securities Am¡a àXÎm Ed§ dgyb Cn{MV ã`mO Ho ê$n _o§ {d^m{OV {H$`m is bifurcated into cost and accrued interest paid OmVm h¡& pñWa Am` à{V^y{V`mo§ H$s IarX na Cn{MV `m {~H«$s or realized. Amount paid as interest accrued on na àmßV ã`mO (I§{SV Ad{Y ã`mO) Ho ê$n _o§ àXÎm am{e H$m purchase and received on sale of fi xed income securities (Broken period interest) is netted and {Zdb {ZH$mbm J`m Am¡a Am`/ì`` Ho ê$n _o§ _mZm OmVm h¡& reckoned as income/expense. iii) à{V^y{V`mo§ H$s {~H«$s na bm^/hm{Z, ^m[aV Am¡gV _yë` iii) Profi t/loss on sale of securities is accounted on nÕ{V (Sãë`yEnr) na n[aH${bV H$s OmVr h¡ Am¡a {ZnQmZ Weighted Average Price Method (WAP) and is VmarI H$mo BgH$m {ZYm©aU {H$`m OmVm h¡& recognized on settlement date.

222 iv) _Ü`dVr© Ho$ ê$n _o§ {H$E JE H$mamo~ma na H$_reZ/Xbmbr H$m iv) Commission on the business done as intermediaries {ZYm©aU C{MV AmYma na am{e {ZYm©[aV hmoZo Ho ~mX CnM` is recognised on accrual basis. v) Revenue from brokerage business is recognised on AmYma na {H$`m OmVm h¡& the basis of the confi rmed Contract note of the v) ~ŒmoH$aoO ì`dgm` go àmßV amOñd H$mo ì`dgm` Ho nwîQ g§{dXm trade. ZmoQ Ho AmYma na {b`m OmVm h¡& vi) Interest on investments is recognised on accrual vi) {Zdoemo§ na ã`mO H$m {ZYm©aU CnM` AmYma na {H$`m OmVm basis. Dividend income on investments in the h¡& å`yMwAb \§$Smo§ H$s `y{ZQmo§ _o§ {Zdoe na bm^m§e Am` CZH$s Units of Mutual Funds and on equity shares is KmofUm Ho AmYma na {ZYm©[aV H$s OmVr h¡& recognised on the basis of declaration of the same. 4. ADVANCES 4. A{J«_ a) Advances are classifi ed into standard, sub-standard, H ) A{JŒ_o§ H$mo ^m.[a.~¢. Ûmam Omar {Xem{ZXoemo§ Ho AZwgma _mZH$, doubtful and loss assets in accordance with the Ad_mZH$, g§{X½Y VWm hm{Z AmpñV`mo§ _o§ dJr©H¥ V {H$`m J`m guidelines issued by the RBI and are stated net of specifi c provisions made towards Non-Performing h¡ VWm J¡a-{ZînmXH$ A{JŒ_mo§ (EZnrE) Ho {bE {H$E JE {Z{X©îQ Advances [‘NPAs’]. àmdYmZ Ho {Zdb Ho ê$n _o§ Xem©`m J`m h¡& b) Credit Card dues are identifi ed as NPAs where minimum I) HŒo {SQ H$mS© ~H$m`mo§ H$mo Cg pñW{V _o§ EZnrE Ho ê$n _o§ {d{Z{X©îQ dues receivable as mentioned in the statement are in default for a continuous period of more than 90 days {H$`m J`m h¡ Ohm± Ý`yZV_ àmß` ~H$m`m am{e bJmVma 90 {XZ go from the payment due date mentioned in statement. A{YH$ Ad{Y go MyH$ _o§ ahr h¡& J¡a-{ZînmXH$ H$mS© ImVmo§ go Am` Income from non-performing card accounts is not {dÎmr` {ddaU _o§ Zht br JB© h¡& recognized in fi nancial statements.- J) ^maVr` [aµOd© ~¢H$ Ûmam {ZYm©[aV {ddoH$nyU© _mZX§Smo§ Ho$ A§VJ©V c) Provisions for sub-standard, doubtful and loss AmpñV dJr©H$aU Am¡a àmdYmZrH$aU Anojm Ho$ AmYma na advances are made on the basis of asset classifi cation and provisioning requirements under the prudential Ad_mZH$, g§{X½Y VWm hm{Z-A{JŒ_mo§ Ho {bE àmdYmZ {H$`m norms laid down by the RBI. J`m h¡& d) Partial recoveries in non-performing advances will be K) J¡a-{ZînmXH$ A{JŒ_mo§ _o§ Am§{eH$ dgybr {ZåZ{b{IV HŒ _ _o§ appropriated account wise (not party-wise) in the ImVm dma (nmQr©dma Zht) g_m`mo{OV H$s OmòJr& following order of priority: i. i. Expenditure/out of pocket expenses incurred for dgybr hoVw {H$E JE ì``/AÝ` ì`` recovery, ii. ì`mO g§~§Yr A{Z`{_VVmò§/A{O©V ã`mO ii. Interest irregularities/accrued interest, and iii. _ybYZ g§~§Yr A{Z`{_VVm AWm©V ImVo _o§ eof _ybYZ iii. Principal irregularities i.e. Principal outstanding L) g_Pm¡Vm {ZnQmZ g{hV J¡a {ZînmXH$ A{JŒ_mo§ Ho _m_bo _o§, in the account. dgy{b`m± nhbo _ybYZ _o§ g_m`mo{OV H$s OmE§Jr & e) In case of non-performing advances involving compromise settlements, the recoveries may be gj_ àm{YH$mar/EZgrEbQr/Ý`m`nm{bH$m Ho _§Oyar H$s eVmoª Ho adjusted fi rst towards principal. AZwgma dgy{b`mo§ H$m g_m`moOZ & The adjustment of the recoveries as per sanction terms of competent Authority /NCLT/Judiciary. g_Âmm¡Vm {ZnQmZ g{hV J¡a-{ZînmXH$ A{JŒ_mo§ Ho _m_bo _o§ In case of non-performing advances involving dgy{b`mo§ H$m g_m`moOZ nhbo _ybYZ _o§ Ed§ `{X dgybr _ybYZ go compromise settlements, the adjustment of recoveries A{YH$ hmoVr h¡ Vmo ã`mO _o§ hmoJm& may be adjusted fi rst towards principal then to interest M) ^m.[a.~¢. {Xem{ZXo©emo§ Ho AZwgma {ZYm©[aV _mZH$ AmpñV`mo§ hoVw if recovery is over and above the Principal amount. gm_mÝ` àmdYmZ H$mo AÝ` Xo`VmE§ d àmdYmZ-AÝ` Ho VhV f) General provision for Standard Assets made in " ' accordance with RBI Guidelines is included under em{_b {H$`m J`m h¡& “Other Liabilities & Provisions-others”. nwZ…g§a{MV ImVo… nwZ…g§a{MV A{JŒ_mo§ Ho {bE G$U Ho C{MV Restructured Accounts: For restructured advances, _yë` _o§ õmg Ho {bE àmdYmZ AÝ`Wm Ano{jV àmdYmZ Ho Abmdm provisions for erosion in fair value of loan are made ^maVr` [aOd© ~¢H$ Ûmam Omar {Xem{ZXoemo§ Ho AZwgma {H$E JE h¢& A{JŒ_ in accordance with the guidelines issued by the RBI, in addition to the provisions otherwise required. The Ho C{MV _yë` _o§ õmg hoVw àmdYmZ A{JŒ_mo§ go KQm`m Zht J`m h¡ VWm provision for erosion in fair value of advance is not reduced "AÝ` Xo`VmE§ d àmdYmZ -AÝ`' erf© Ho VhV VwbZ-nÌ _o§ em{_b from advances and is included in the Balance Sheet under {H$`m J`m h¡& the head “Other Liabilities & Provisions-Others”.

ANNUAL REPORT 2018-19 223 5. {Zdoe 5. INVESTMENTS ~¢qH J g§ñWm… Banking Entity: 5.1 loUrH aU Ed§ dJr©H aU 5.1 Categorization & Classifi cation ^maVr` [aµOd© ~¢H$ Ûmam Omar {Xem{ZXoemo§ Ho AZwgma {Zdoemo§ Ho In accordance with the RBI guidelines, investments at A{YJŒhU Ho g_` {ZåZ{b{IV lo{U`mo§ _o§ dJr©H¥$V {H$`m J`m h¡… the time of acquisition are categorized as: . Held to Maturity [HTM], . n[an¹$Vm VH$ Ym[aV (EMQrE_), . Available for Sale [AFS] and . {~H«$s Ho {bE CnbãY (EE\ Eg) VWm . Held for Trading [HFT]. . Q—oqSJ Ho {bE Ym[aV (EME\ Qr)& The Bank shifts investments from AFS/HFT category to HTM category at the lower of book value or market ~¢H$, ~hr _yë` `m ~mµOma _yë`, BZ _o§ go Ý`yZV_ _yë` na {Zdoemo§ value. In other words, in cases where the market value H$mo EE\ Eg/EME\ Qr àdJ© go EMQrE_ àdJ© _o§ A§V[aV H$aVm h¡& is higher than the book value at the time of transfer, AWm©V², Ohm± A§VaU Ho g_` ~mµOma _yë` ~hr _yë` go A{YH$ the appreciation should be ignored and the security h¡, _yë`d¥{Õ H$mo AZXoIm {H$`m OmE VWm à{V^y{V H$mo ~hr _yë` should be transferred at the book value. In cases na A§V[aV {H$`m OmE& Eogo _m_bo Ohm± ~mµOma _yë` ~hr _yë` go where the market value is less than the book value, the H$_ h¡, Bg à{V^y{V (A§VaU Ho {XZm§H$ H$mo {H$E JE _yë`m§H$Z Ho provision against depreciation held against this security AmYma na Ano{jV A{V[aº àmdYmZ, `{X H$moB© h¡, g{hV) Ho (including the additional provision, if any, required based on valuation done on the date of transfer) should {déÕ Ym[aV _yë`õmg na àmdYmZ H$mo ~hr _yë` H$mo ~mµOma _yë` be adjusted to reduce the book value to the market VH$ H$_ H$aZo Ho {bE g_m`mo{OV {H$`m OmE VWm à{V^y{V ~mµOma value and the security should be transferred at the _yë` na A§V[aV {H$`m OmE& market value. If the security was originally placed under the HTM `{X à{V^y{V _ybV… ~Åo na EMQrE_ àdJ© Ho VhV aIr OmVr h¡, category at a discount, it may be transferred to AFS/ Cgo AO©Z _yë`/~hr _yë` na EE\ Eg/EME\ Qr àdJ© _o§ A§V[aV HFT category at the acquisition price/book value. (It {H$`m OmE& (`h ZmoQ {H$`m OmE {H$ {dÚ_mZ AZwXoemo§ Ho AZwgma may be noted that as per existing instructions banks EMQrE_ àdJ© Ho VhV Ym[aV à{V^y{V`mo§ na ~Åm Cn{MV H$aZo are not allowed to accrue the discount on the securities H$s AZw_{V Zht h¡ VWm, AV…, Eogr à{V^y{V`mo§ H$mo n[an¹Vm held under HTM category and, therefore, such VH$ AO©Z bmJV na YmaU Omar aIm OmE)& A§VaU Ho nümV², securities would continue to be held at the acquisition BZ à{V^y{V`mo§ H$m VËH$mb nwZ_y©ë`m§H$Z {H$`m OmE VWm n[aUm_r cost till maturity). After transfer, these securities should _yë`õmg, `{X H$moB© h¡, hoVw àmdYmZ {H$`m OmE& be immediately re-valued and resultant depreciation, if any, may be provided. `{X à{V^y{V _ybV… àr{_`_ na EMQrE_ àdJ© Ho VhV aIr If the security was originally placed in the HTM OmVr h¡, Cgo n[aemoYH$ _yë` na EE\ Eg/EME\ Qr àdJ© _o§ category at a premium, it may be transferred to the A§V[aV {H$`m OmE& A§VaU Ho nümV², BZ à{V^y{V`mo§ H$m VËH$mb AFS/HFT category at the amortised cost. After transfer, these securities should be immediately re-valued and nwZ_y©ë`m§H$Z {H$`m OmE VWm n[aUm_r _yë`õmg, `{X H$moB© h¡, hoVw resultant depreciation, if any, may be provided. àmdYmZ {H$`m OmE& In the case of transfer of securities from AFS to HFT EE\ Eg go EME\ Qr àdJ© _o§ `m {dbmo_V… à{V^y{V`mo§ H$mo A§V[aV category or vice-versa, the securities need not be re- H$aZo na, A§VaU H$s VmarI H$mo à{V^y{V`mo§ H$m nwZ_y©ë`Z H$aZo valued on the date of transfer and the provisions for the accumulated depreciation, if any, held may be H$s Amdí`H$Vm Zht h¡ VWm g§{MV _yë`õmg Ho {bE `{X H$moB© transferred to the provisions for depreciation against àmdYmZ Ym[aV {H$`m h¡ Vmo Cgo EME\$Qr à{V^y{V`mo§ Ho {déÕ the HFT securities and vice-versa. _yë`õmg hoVw àmdYmZ _o§ `m {dbmo_V… A§V[aV {H$`m Om gH$Vm h¡& However, for disclosure in the Balance Sheet, hmbm§{H$ VwbZ-nÌ _o§ àH$QZ hoVw {Zdoemo§ H$mo gmV àdJmoª _o§ dJr©H¥ V investments are classifi ed under six categories – Government Securities, State Government Securities, {H$`m J`m h¡ - gaH$mar à{V^y{V`m±, amÁ` gaH$mar {deof Other Approved Securities, Shares, Debentures à{V^y{V`m±, AÝ` AZw_mo{XV à{V^y{V`m±, eoà, {S~o§Ma VWm and Bonds, Investments in Subsidiaries/RRB/Joint ~m±S, AZwf§{J`mo§/jo.JŒm.~¢./g§`wº CÚ_mo§ VWm AÝ` (å`yMwAb Ventures and Others [units of Mutual Funds, \§$S H$s `y{ZQmo§, dm{UpÁ`H$ nÌmo§, O_m à_mUnÌ, à{V^y{V Commercial Papers, Certifi cate of Deposits and agrX VWm do§Ma ny§Or {Z{Y)& Venture Capital Funds].

224 "n[an¹Vm VH$ Ym[aV' loUr Ho VhV dJr©H¥ V {Zdoemo§ _o§ {ZåZ{b{IV Investments classifi ed under ‘Held to Maturity’ include em{_b h¢: the following: a) Investments in SLR securities as percentage of H) _m§J VWm _r`mXr Xo`VmAmo§ Ho à{VeV Ho ê$n _o§ ^m.[a.~¢. Ûmam Demand and Time liabilities or as notifi ed by RBI g_`-g_` na A{Ygy{MV AZwgma EgEbAma à{V^y{V`mo§ from time to time. _o§ {Zdoe& b) Recapitalization bonds received from the I) nwZnyªOrH$aU Amdí`H$VmAmo§ hoVw ^maV gaH$ma go àmßV Government of India towards recapitalization requirements. nwZnyªOrH$aU ~m§S& c) Investments in share of subsidiaries and joint J) AZwf§{J`mo§ Am¡a g§`wº CÚ_mo§ Ho eoàmo§ _o§ {Zdoe& ventures. K) CÚ_ ny±Or {Z{Y`mo§ _o§ {Zdoe, 23 AJñV, 2006 Ho ~mX d) Investments in Venture Capital Funds, for an àËòH$ S—m SmD$Z go VrZ dfmoª H$s Ama§{^H$ Ad{Y Ho {bE initial period of 3 years of each draw down, after {H$E JE h¢& 23rd August 2006. L) ~w{Z`mXr g§aMZmJV J{V{d{Y`mo§ _o§ bJo H§$n{Z`mo§ Ûmam Omar e) Investments in long term bonds issued by XrKm©d{Y ~m°ÊSmo§ _o§ {Zdoe& companies engaged in infrastructure activities. Q—oqSJ Ho CÔoí` go àmW{_H$ ê$n go A{YJŒhrV {Zdoemo§ H$mo EME\ Qr à{V^y{V`mo§ Investments acquired primarily with an intention for trading are classifi ed as HFT securities. As per RBI guidelines, Ho ê$n _o§ dJr©H¥ V {H$`m J`m h¡& ^maVr` [aOd© ~¢H$ Ho {Xem{ZXo©emo§ Ho securities in HFT category are not held beyond 90 days AZwgma EME\ Qr loUr _o§ à{V^y{V`m± 90 {XZ go A{YH$ Zht Ym[aV H$s JB© and are transferred to AFS category under exceptional h¢ VWm AndmXmË_H$ n[apñW{V`mo§ O¡go {~HŒ r H$aZo _o§ Ag_W© `m AË`§V circumstances like not able to sell or extreme volatility or ApñWaVm `m ~mµOma Ho {XemhrZ hmoZo na, {ZXoeH$ _§Sb/AmëH$mo/{Zdoe market becoming unidirectional, with the approval of the Board/ALCO/Investment Committee. g{_{V Ho AZw_moXZ Ho gmW CÝho§ EE\ Eg loUr _o§ A§V[aV {H$E OmVo h¢& All other investments are classifi ed under AFS. AÝ` g^r {Zdoemo§ H$mo EE\ Eg Ho VhV dJr©H¥$V {H$`m J`m h¡&

5.2 _yë`m§H Z VWm n[aUm_r g_m`moOZ… 5.2 Valuation and consequential adjustments: a] Held to Maturity: Investments classifi ed under H$) n[an¹Vm VH$ Ym[aV… "n[an¹Vm VH$Ym[aV' loUr Ho VhV ‘Held-to-Maturity’ are carried at weighted dJuH¥$V {Zdoe ^m[aV Am¡gV AO©Z bmJV na _yë`m§{H$V {H$E average acquisition cost. Premium on acquisition, JE h¢& A{YJŒhU na àr{_`_ `{X H$moB© h¡ Vmo n[an¹$Vm H$s if any, is amortized on a straight-line basis eof Ad{Y _o§ grYr aoIm Ho AmYma na n[aemoYZ {H$`m J`m over the remaining maturity period. In case of h¡& AZwf§{J`mo§/g§`wº CÚ_mo§ _o§ {Zdoe Ho _m_bo _o§ AñWmB© H$mo investments in subsidiaries/joint ventures any diminution, other than temporary, in the value of Nmo‹SH$a AÝ` Eogo {Zdoe Ho _yë` _o§ H$_r H$m {ZYm©aU {H$`m J`m such investment is recognized and provided for. h¡ Am¡a CgHo {bE àmdYmZ {H$`m J`m h¡& do§Ma ny§Or {Z{Y _o§ Investments in Venture Capital Fund are valued at {Zdoemo§ H$mo bmJV na _yë`m§{H$V {H$`m J`m h¡& Cost. I) {~H«$s Ho {bE CnbãY VWm Q—oqSJ Ho {bE Ym[aV… b] Available for Sale and Held for Trading: i. BZ àdJmoª ("Q—oqSJ Ho {bE Ym[aV' VWm "{~H«$s Ho {bE i. Investments in these categories (classifi ed under the category ‘Held for Trading’ and CnbãY' loUr Ho VhV dJr©H¥$V) _o§ {Zdoe H$mo ^m.[a.~¢. ‘Available for Sale’) are marked to market/ Ho {Xem{ZXo©emo§ Ho$ AZwgma EME\$Qr VWm EE\$Eg hoVw estimated realizable value as per the RBI HŒ _e… _m{gH$ VWm {V_mhr A§Vamb _o§ ~mµOma/AZw_m{ZV guidelines at monthly and quarterly intervals dgybr `mo½` _yë` na A§{H$V {H$`m J`m h¡& O~{H$ D$na for HFT and AFS respectively. While the 5.1 _o§ Cp„{IV àËòH$ loUr Ho A§VJ©V n[aUm_r {Zdb resultant net depreciation, if any, within each category referred to in 5.1 above, _yë`õmg `{X H$moB© h¡, H$mo bm^ Ed§ hm{Z boIo _o§ "àmdYmZ is recognized in profi t & loss account as Ed§ AmH$pñ_H$VmAmo§' Ho ê$n _o§ {ZYm©[aV {H$`m J`m h¡ “Provisions and Contingencies”, the net VWm _yë`õmg hoVw nhbo {H$E JE àmdYmZ H$s hX VH$ appreciation is ignored except to the extent of H$mo Nmo‹SH$a {Zdb A{Y_yë`Z H$mo Nmo‹S {X`m J`m h¡& depreciation previously provided. The book

ANNUAL REPORT 2018-19 225 nwZ_y©ë`m§H$Z Ho nümV² AbJ-AbJ à{V^y{V`mo§ Ho ~hr value of the individual scrip is not changed _yë` _o§ n[adV©Z Zht hwAm h¡& after revaluation. ii. _yë`õmg Ho A{V[aº$ àmdYmZ Ho à{VboIZ Ho g§~§Y _o§, ii. In the case of write back of excess provision of depreciation the same is credited to “Provisions Cgo "àmdYmZ Am¡a AmH$pñ_H$VmE±' _o§ O_m {H$`m J`m and Contingencies” and a like amount (net h¡ Am¡a g_Vwë` am{e (H$amo§ H$m {Zdb Am¡a gm§{d{YH$ of taxes and transfer to Statutory Reserve) is Ama{jV {Z{Y _o§ A§VaU) H$mo AZwgyMr 2 - "Ama{jV appropriated to Investment Reserve Account {Z{Y Ed§ A{Yeof' Ho VhV {Zdoe Ama{jV {Z{Y ImVo _o§ under Schedule 2 – “Reserves & Surplus”. {d{Z`mo{OV {H$`m J`m h¡& iii. For the purpose of (i) above, the market price / iii. Cnamoº (i) Ho CÔoí` hoVw, ~mOma H$s_V/AZw_m{ZV àmß` estimated realizable value is determined as _yë` {ZåZdV² {ZYm©[aV {H `m OmVm h¡… under:

H«$_ g§. à{V^y{V Ho$ àH$ma à{V^y{V H$m _yë`m§H$Z S. No. Type of Securities Valuation of Securities 1. H|$Ð gaH$ma H$s à{V^y{V`m± i) CÕ¥V… E\ AmB©E_E_SrE Ûmam {XE H$moQoeZ Ho AZwgma ~mµOma _yë` na Central Government of India i) Quoted: At market price as per the quotation put out by FIMMDA. Securities ii) AZwÕ¥V… E\ AmB©E_E_SrE Ûmam Xr JB© H$s_Vmo§/dmB©QrE_ Xamo§ Ho AmYma na ii) Unquoted: On the basis of the prices/YTM rates put by FIMMDA 2. amÁ` gaH$ma H$s à{V^y{V`m§, H|$Ð/amÁ` i) amÁ` gaH$ma H$s à{V^y{V`mo§ Ho _m_bo _o§ E\ AmB©E_E_SrE Ûmam àH$m{eV H$s_Vmo§ na gaH$ma Ûmam Jma§QrH¥ V à{V^y{V`m± (AÝ` i) At prices published by FIMMDA in respect of State Govt. Securities. ñdrH¥ V à{V^y{V`m±) ii) AÝ` AZw_mo{XV à{V^y{V`mo§ Ho _m_bo _o§ E\ AmB©E_E_SrE Ûmam {Z{X©îQ à{V\ b dHŒ na Cn`wº State Government Securities, A{V[aº H$s_V bmJV A§Va na State Govt. Special Securities, ii) At appropriate spread upon the yield curve put out by FIMMDA in respect of Securities guaranteed by Central/ other approved securities. State Government (other approved securities) 3. Q—oOar {~b (nrSr H$mamo~ma Ho H$maU aIo aImd bmJV na Q—oµOar {~bmo§ g{hV)/O_m à_mUnÌ/ At carrying cost. dm{UpÁ`H$ nÌ Treasury Bills (including Treasury Bills held on account of PD business)/Certifi cates of deposits/ Commercial paper 4. B©pŠdQ>r eoà i) CÕ¥V… ~mµOma _yë` na Equity shares i) Quoted : At market price ii) AZwÕ¥V… H§$nZr Ho AÚVZ VwbZ nÌ (EH df© go A{YH nwamZm Z hmo) Ho AZwgma {Z{üV {díbo{fV _yë` na AÝ`Wm ` 1/- à{V H§ nZr& ii) Unquoted: At break up value as ascertained from the company’s latest Balance Sheet [not more than one year old], otherwise at `1/- per company. 5. A{Y_mZ eoà, {S~o§Ma Ed§ ~m§S i) CÕ¥V… ~mµOma _yë` na Preference Shares, Debentures i) Quoted: At Market Price and Bonds ii) AZwÕ¥V… C{MV n[an¹ Vm na à{V\ b ii) Unquoted: On appropriate Yield on Maturity

226 6. å`yMwAb \§ S i) CÕ¥V… ~mµOma _yë` na Mutual Fund i) Quoted: At market price ii) AZwÕ¥V… nwZH«$` _yë` `m àËòH `moOZm _o§ \§ S Ûmam Kmo{fV {Zdb AmpñV _yë` na (Ohm± nwZH«$` _yë` CnbãY Zht h¡) ii) Unquoted: At repurchase price or Net Asset Value [where repurchase price is not available] declared by the fund in eacH$of the schemes. 7. CÚ_ ny§Or {Z{Y i) CÕ¥V… ~mOma _yë` na Venture Capital Funds i) Quoted: At market value ii) AZwÕ¥V… BH$mB`mo§ Ho ê$n _o§ {Zdoemo§ Ho _m_bo _o§, AnZo {dÎmr` {ddaUmo§ _o§ drgrE\ Ûmam Xem©E JE EZEdr na _yë`m§H$Z {H$`m OmE& EZEdr na AmYm[aV BH$mB`mo§ na _yë`õmg,`{X H$moB© hmo, Ho {bE {Zdoemo§ Ho EE\ Eg àdJ© go EMQrE_ àdJ© _o§ A§VaU Ho g_` VWm drgrE\ go àmßV {dÎmr` {ddaUmo§ Ho$ AmYma na {V_mhr `m ~ma§~ma A§Vambmo§ na {H$E OmZo dmbo AZwdVr© _yë`m§H$Zmo§ na ^r àmdYmZ {H$`m OmZm Mm{hE& BH$mB`mo§ H$m H$_ go H$_ df© _o§ EH$ ~ma boImnar{jV n[aUm_mo§ Ho AmYma na _yë`m§H$Z {H$`m OmE& VWm{n, `{X EZEdr Am±H$So Xem©Zo dmbo boIm nar{jV VwbZ nÌ/{dÎmr` {ddaU _yë`m§H$Z H$s VmarI H$mo 18 _mh go A{YH$ Ho {bE CnbãY Zht h¢, Vmo {Zdoemo§ H$m _yë`m§H$Z 1 én`m à{V drgrE\ na {H$`m OmE& ii) Unquoted: In the case of investments in the form of units, the valuation will be done at the NAV shown by the VCF in its fi nancial statements. Depreciation, if any, on the units based on NAV has to be provided at the time of shifting the investments to AFS category from HTM category as also on subsequent valuations whicH$should be done at quarterly or more frequent intervals based on the fi nancial statements received from the VCF. At least once in a year, the units should be valued based on the audited results. However, if the audited balance sheet/fi nancial statements showing NAV fi gures are not available continuously for more than 18 months as on the date of valuation, the investments are to be valued at Rupee 1/- per VCF.

5.3 J¡a-{ZînmXH {Zdoe 5.3 Non-performing Investments H$) H|$Ð gaH$ma Ûmam Jma§QrH¥$V à{V^y{V`mo§ H$mo Nmo‹SH$a g^r a] All such securities where repayment of principal or interest not serviced within 90 days from the due à{V^y{V`mo§ H$mo, Ohm± _ybYZ `m ã`mO H$s MwH$m¡Vr Xo` date are classifi ed as Non-Performing Investments, VmarI go 90 {XZmo§ Ho A§Xa Zht H$s JB© h¡, J¡a-{ZînmXH$ except securities guaranteed by the Central {Zdoemo§ Ho ê$n _o§ dJr©H¥$V {H$`m J`m h¡& H|$Ð gaH$ma Ûmam Government which are treated as performing Jmma§Q>rH¥$V à{V^y{V`mo§ H$mo _ybYZ/ã`mO AXm`Jr ~H$m`m investments notwithstanding arrears of principal/ ahZo Ho ~mdOyX {ZînmXH$ {Zdoemo§ Ho ê$n _o§ _mZm J`m h¡& J¡a- interest payments. In respect of investments classifi ed as Non-performing, appropriate {ZînmXH$ Ho ê$n _o§ dJuH¥$V {Zdoemo§ Ho g§~§Y _o§ BZ {Zdoemo§ provisions are made for the depreciation in the Ho _yë` _o§ _yë`õmg hoVw Cn`wº àmdYmZ {H$E JE h¢& BZ value of these investments. The depreciation à{V^y{V`mo§ Ho g§~§Y _o§ Ano{jV _yë`õmg AÝ` {ZînmXH$ requirement in respect of these securities is not à{V^y{V`mo§ Ho g§~§Y _o§ _yë`d¥{Õ Ho gmW g_§OZ Zht {H$`m set off against appreciation in respect of other J`m h¡& performing securities. b] Where the Bank has both credit and investment I) Ohm± ~¢H$ H$m {H$gr nmQr©/JŒwn _o§ G$U Ed§ {Zdoe XmoZmo§ exposures to any borrower/group and in the event {d{ZYmZ h¢ VWm G$U {d{ZYmZ H$mo J¡a-{ZînmXH$ AmpñV Ho the credit exposure is classifi ed as Non-Performing ê$n _o§ dJr©H¥$V H$aZo H$s pñW{V _o§ BZ_o§ {Zdoe {d{ZYmZ H$mo asset, the investment exposure to them is also ^r J¡a-{ZînmXH$ Ho ê$n _o§ dJr©H¥$V {H$`m J`m h¡& classifi ed as Non-Performing. Clarifi cations: ñnîQrH$aU: If any credit facility availed by the issuer is NPA `{X {ZJ©_H$Vm© Ûmam br hwB© H$moB© ^r G$U gw{dYm ~¢H$ H$s in the books of the bank, investment in any of ~hr _o§ J¡a-{ZînmXH$ h¡ Vmo Cgr {ZJ©_H$Vm© Ûmam Omar {H$gr the securities, including preference shares issued ^r A{Y_mZr eoà g{hV {H$gr ^r à{V^y{V _o§ CgH$m {Zdoe by the same issuer would also be treated as NPI EZnrAmB© _mZm OmEJm& hmbm§{H$ `{X Ho db A{Y_mZr eoà and vice versa. However, if only the preference shares are classifi ed as NPI, the investment EZnrAmB© Ho ê$n _o§ dJr©H¥$V {H$E OmVo h¢ Vmo Cgr {ZJ©_H$Vm© in any of the other performing securities Ûmam {H$gr AÝ` {ZînmXH$ à{V^y{V`mo§ _o§ {H$E JE {Zdoe H$mo issued by the same issuer may not be classifi ed EZnrAmB© Ho ê$n _o§ dJuH¥$V Zht {H$`m OmEJm Ed§ CYmaH$Vm© as NPI and any performing credit facilities

ANNUAL REPORT 2018-19 227 H$mo Xr J`r {H$gr ^r {ZînmXH$ G$U gw{dYm H$mo EZnrE Zht granted to that borrower need not be treated as _mZm OmEJm& NPA. 5.4 ACCOUNTING FOR REPO TRANSACTIONS 5.4 aonmo boZXoZmo§ Ho {bE boIm§H$Z The Bank follows the accounting norms prescribed by ~mµOma aonmo Ho VhV aonmo/[adg© aonmo boZXoZmo§ Ho$ {bE n[anÌ the RBI vide circular Ref. No. RBI/2018-19/24 FMRD. Ama~rAmB© / 2018-19 / 24E\ EAmaS>r.S>rAmB©AmaS>r.01/14. DIRD.01/14.03.038/2018-19 dated 24.07.2018 in 03.038/2018-19 {XZm§{H$V 24.07.2018 Ho O[aE ^m.[a.~¢. respect of repo/reverse repo transactions under market repo and the accounting guidelines issued Ûmam {ZYm©[aV boIm§H$Z _mZX§S VWm Mb{Z{Y g_m`moOZ gw{dYm vide Ref. RBI/2015-2016/403 FMRD.DIRD.10/ (EbEE\) VWm gr_m§V ñWmB© gw{dYm (E_EgE\) Ho VhV aonmo/[adg© 14.03.002/2015-16 dated 19.05.2016 in respect of aonmo boZXoZmo§ Ho {bE g§X^© ^m.[a.~¢./2015-2016/403E\ E_ repo/reverse repo transactions under Liquidity AmaSr.SrAmB©AmaSr.10/14.03.002/2015-16 {XZm§{H$V Adjustment Facility (LAF) and the Marginal Standing 19.05.2016 Ho O[aE Omar boIm§H$Z {Xem{ZXoemo§ H$m AZwnmbZ Facility (MSF). ~¢H$ Ûmam {H$`m OmVm h¡& The accounting norms to be followed by Bank for repo/reverse repo transactions under LAF and the Ama~rAmB© H$s EbEEµ\ Ed§ gr_m§V ñWmB© gw{dYm(E_EgEµ\) Ho Marginal Standing Facility (MSF) of RBI shall be same VhV [anmo/[adg© [anmo boZXoZmo§ Ho {bE ~¢H$ Ûmam AnZmE OmZo dmbo as prescribed for market repo transactions. Further, boIm {Z`_ ~mOma Ho {bE aonmo boZXoZ {Z`_mo§ Ho g_mZ hr hmo§Jo& gmW in order to distinguish repo/reverse repo transactions with RBI from market repo transactions, a parallel set hr, Ama~rAmB© Ho gmW {H$E OmZo dmbo [anmo/[adg© [anmo boZXoZmo§ H$mo of accounts similar to those maintained for market ~mµOma Ho boZXoZmo§ go AbJ H$aZo Ho {bE ~mµOma [anmo boZXoZmo§ Ho repo transactions but prefi xed with ‘RBI’ may be g_mZ hr ~hr-ImVo ~ZmE OmE±Jo {OZHo AmJo "Ama~rAmB©' Ow‹Sm maintained. hmoJm& Reckon the market value of collateral securities for calculating the haircut instead of face value while EbEEµ\/E_EgEµ\ boZXoZ _o§ hoàH$Q> H$s JUZm g_nm{œ©H$ initiating the LAF/MSF transactions; à{V^y{V`mo§ Ho A§{H$V _yë` Ho ~OmE ~mµOma _yë` na hr H$ao§& Bestow SLR status to the securities acquired by banks Ama~rAmB© Ho gmW [adg© aonmo Ho VhV A{O©V à{V^y{V`mo§ H$mo under reverse repo with RBI; and EgEbAma H$m XOm© àXmZ H$ao§ Ed§ Allow re-repo of securities received under LAF reverse repo with market participants subject to Ama~rAmB© Ho n[anÌ g§»`m E\$E_AmaSr.SrAmB©AmaSr.5/ the conditions prescribed in RBI circular FMRD. 14.03.002/2014-15 {XZm§{H$V 05 \$adar 2015 _o§ C„o{IV DIRD.5/14.03.002/2014-15 dated February 5, 2015. {Z`_mo§ Ho AZwgma ~mOma à{V^m{J`mo§ Ho gmW EbEEµ\ [adg© aonmo Ho 5.5 Accounting For Investment Transactions VhV A{O©V à{V^y{V`mo§ Ho nwZa-aonmo H$s AZw_{V Xo§& i) The Bank follows settlement date method of 5.5 {Zdoe boZXoZmo§ hoVw boIm§H$Z accounting its investments; i) ~¢H$ AnZo {Zdoemo§ Ho boIm§H$Z hoVw {ZnQmZ H$s nÕ{V H$m nmbZ ii) Cost is determined on weighted average cost H$aVm h¡; method; ii) bmJV ^m[aV Am¡gV bmJV nÕ{V na {ZYm©[aV H$s JB© h¡; iii) Profi t on sale is netted with loss on sale of iii) à{V^y{V`mo§ Ho {dH«$` na bm^ H$m {dH«$` na hm{Z Ho gmW securities; and {Zdb {ZH$mbm J`m h¡; iv) The portion of income/loss that arises on account of movement in the yield, when the following iv) {ZåZ{b{IV {Zdoemo§ H$s {~H«$s na, Am` _o§ CVma-M‹Tmd Ho investments are sold, will have to be treated as H$maU CËnÞ hmoZo dmbr Am`/hm{Z H$m {hñgm bm^/hm{Z Ho profi t/loss: ê$n _o§ _mZm OmEJm& a) The difference between the sale price/ H$) {ZYm©[aV Am` à{V^y{V`mo§ H$s {~H«$s H$s_V/_moMZ _yë` redemption value of fi xed income securities and its book value shall be treated as profi t or VWm ~hr _yë` Ho ~rM Ho A§Va H$mo {Zdoemo§ H$s {~H«$s na loss on sale of investments. bm^ `m hm{Z Ho ê$n _o§ _mZm OmE& b) The difference between sale price/redemption I) Vab å`yMwAb \§$S g{hV å`yMwAb \§$S {~H«$s H$s_V/ value of mutual funds including liquid Mutual _moMZ _yë` VWm ~hr _yë` Ho ~rM Ho A§Va H$mo {Zdoemo§ Funds and its book value shall be treated as profi t/loss on sale of investments. H$s {~H«$s na bm^ `m hm{Z Ho ê$n _o§ _mZm OmE&

228 J) ~ÅmJV à{V^y{V`mo§, AWm©V², grSr/grnr/Qr-{~b hoVw, c) In respect of discounted securities viz. CD/ {~H«$s H$s_V VWm aImd bmJV (~hr _yë` + Cn{MV CP/T-Bills, difference between sale price and carrying cost (book value + accrued interest) ã`mO) Ho ~rM Ho A§Va H$mo {Zdoe na bm^/hm{Z Ho ê$n shall be treated as profi t/loss on investment. _o§ _mZm OmE& H mn©~¢H {gŠ`w[aQrµO {b. Ho {Zdoe Ho g§~§Y _o§: In respect of Investments of Corpbank Securities Limited: (i) Aënmd{Y YmaU VWm ì`mnm[aH$ H«$`-{dH«$` Ho CÔoí` go A{O©V (i) The securities acquired with the intention of short term à{V^y{V`mo§ H$mo "{dH«$` ñQm°H$’ Ho ê$n _o§ _mZm OmVm h¡ Am¡a Mmby holding and trading positions is considered as “Stock-in- Trade” and shown under current assets. Other securities AmpñV`mo§ Ho$ AYrZ Xem©`m OmVm h¡& XrKm©d{Y YmaU Ho$ CÔoí` go acquired with the intention of long-term holding are A{O©V AÝ` AmpñV`mo§ H$mo "{Zdoe' Ho ê$n _o§ _mZm OmVm h¡& treated as “Investments.” (ii) {Zdoemo§ Ho ê$n _o§ Ym[aV VWm n[an¹$Vm VH$ Ym[aV à{V^y{V`mo§ H$mo (ii) Securities held as investments and held till maturity are bmJV na _yë`m§{H$V {H$`m OmVm h¡& valued at cost. (iii) (iii) Any diminution in the value of securities held as {Zdoe Ho$ ê$n _| aIr JB© àËòH$ à{V^y{V`m| Ho$ _yë` _| õmg Ho$ {bE investment individually is provided for, wherever such àmdYmZ {H$E JE h¢, Ohm± H$ht ^t `h $õmg ñWmB© h¢& diminution is permanent. (i) H$moQ H$s JB© à{V^y{V`mo§ H$mo bmJV `m ~mµOma _yë`, Omo ^r H$_ (i) The Quoted securities are valued at cost or market h¡, na _yë`m§{H$V {H$`m OmVm h¡& ~mµOma ^md CnbãY Z hmoZo price, whichever is lower. In the absence of market na, g_mZ àH¥${V Ed§ n[an¹Vm Ad{Y dmbr à{V^y{V`mo§ Ho quotes, market prices are determined at the rates {dÚ_mZ à{V\ b Ho AmYma na n[aH${bV Xamo§ na ~mµOma _yë` derived from the prevailing yield of securities having {ZYm©[aV {H$E OmVo h¢& similar standing and maturity period. (ii) Each type of security is regarded as a separate category. (ii) àËòH$ àH$ma H$s à{V^y{V H$mo EH$ àËòH$ àdJ© _mZm OmVm h¡& Under each category, valuation is done scrip-wise àËòH$ àdJ© Ho A§VJ©V, _yë`m§H$Z pñHŒ n-dma {H$`m OmVm h¡ and depreciation is provided, while appreciation VWm _yë`õmg H$m àmdYmZ {H$`m OmVm h¡ O~{H$ _yë`-d¥{Õ is ignored. The depreciation in one category of H$mo Nmo‹S {X`m OmVm h¡& EH$ àdJ© H$s à{V^y{V`mo§ Ho _yë`õmg securities is not set off against appreciation in another H$mo Xygao àdJ© _o§ _yë`d¥{Õ Ho ~Xbo g_§OZ Zht {H$`m OmVm h¡& category. (iii) VwbZ-nÌ H$s VmarI H$mo Ym[aV Q—oµOar {~b H$m _yë`m§H$Z aImd (iii) Treasury Bills held on the balance sheet date are valued at carrying cost or market value whichever bmJV `m ~mµOma _yë`, Omo ^r H$_ hmo, na {H$`m OmVm h¡& is lower. The market value of Treasury Bills held on VwbZ-nÌ H$s VmarI H$mo Ym[aV Q—oµOar {~bmo§ H$m ~mµOma _yë` the balance sheet date is determined as per the rates ^maVr` g_memoYZ {ZJ_ {b{_QoS Ûmam CnbãY H$amB© Xamo§ Ho provided by Clearing Corporation of India Limited. AZwgma {ZYm©[aV {H$`m OmVm h¡& (iv) The Certifi cate of Deposits and Commercial Papers (iv) VwbZ nÌ VmarI H$mo Ym[aV O_mAmo§ H$m à_mUnÌ Am¡a held on the balance sheet date are valued at carrying dm{UpÁ`H$ nÌ {Z{hV bmJV na _yë`m§{H$V {H$E OmVo h¡& cost. (v) The market value of Central Government Dated (v) Ho§ Ð gaH$ma {XZm§{H V à{V^y{V`mo§ H$m ~mµOma _yë` ^maVr` {Z`V Securities is determined as per the rates provided by Am` _wÐm ~mµOma Am¡a ì`wËnÞr g§K (E\ AmB©E_E_SrE) Ûmam Fixed Income and Money Market Dealers Association CnbãY H amB© Xamo§ Ho AZwgma {ZYm©[aV {H `m OmVm h¡& (FIMMDA). 6. pñWa AmpñV`m± ~¢qH$J g§ñWm: 6. FIXED ASSETS H ) i. pñWa AmpñV`mo§ (nwZ_y©ë`m§{H$V AmpñV`mo§ Ho Abmdm) H$mo g§{MV Banking Entity: _yë`õmg VWm hm{Z hoVw àmdYmZ H$mo H$_ H$aVo hwE bmJV na a] i. Fixed assets are stated at cost less accumulated Xem©`m J`m h¡& bmJV _o§ H«$` H$s_V VWm AmpñV H$mo CgHo depreciation and provision for impairment. Cost A{^àoV à`moJ hoVw CgHo H$m`© H$aZo H$s pñW{V _o§ bmZo hoVw comprises of the purchase price and any cost attributable for bringing the asset to its working ghm`H$ H$moB© ^r bmJV em{_b h¡& pñWa AmpñV`mo§ H$s {Z{hV condition for its intended use. The carrying am{e H$s àËòH$ VwbZ-nÌ {XZm§H$ H$mo g_rjm H$s OmVr h¡ VWm amounts of fi xed assets are reviewed at each Balance {H$gr ^r j{V hoVw ^maVr` gZXr boImH$ma g§ñWmZ Ûmam Bg Sheet date and adjusted for any impairment in g§~§Y _o§ Omar boIm§H$Z _mZH$ 28 ("AmpñV`mo§ H$s j{V') Ho accordance with the Accounting Standard 28 AZwgma g_m`mo{OV {H$`m J`m h¡&& (“Impairment of Assets”) issued in this regard by ii. n[aga H$m {hñgm hmoZo Ho ZmVo ^y{_ Am¡a ^dZmo§ the ICAI. (brOYm[aV ^y{_ H$mo NmoSH$a) H$m nwZ_y©ë`m§H$Z {gV§~a, ii. Land and Buildings (other than Leasehold 2018 Ho Xm¡amZ Xmo _yë`m§H$Z [anmoQmoª Ho Am¡gV ~mµOma Land) being part of Premises revalued during _yë` Ho AmYma na {H$`m J`m Ed§ Cgo nwZ_y©ë`m§H$Z September 2018 are stated at the average market

ANNUAL REPORT 2018-19 229 Am[a{jV {Z{Y`mo§ _o§ O_m {H$`m J`m& n[aUm_ñdê$n, value of two Valuation reports by crediting to BZ AmpñV`mo§ na _yë`õmg H$mo bm^ d hm{Z ImVo Revaluation reserve. Consequently, depreciation on these assets is charged to Profi t and Loss _o§ à^m[aV {H$`m J`m h¡ VWm g_mZ am{e H$mo g§{MV account and an equal amount is adjusted to _yë`õmg _o§ g_m`mo{OV {H$`m J`m h¡& _yë`õmg VWm the accumulated depreciation. Difference nwZ_©yë`m§{H$V aImd am{e Ho ~rM Ho A§Va VWm CgH$s _yb between the depreciation and revalued carrying bmJV na _yë`õmg H$mo ^maVr` g§ZXr boImH$ma g§ñWmZ amount and depreciation on its original cost Ûmam Bg g§~§Y _o§ Omar ""g§n{Îm, g§`§Ì d CnH$aU'' is transferred from “Reserve for revaluation of boIm§H$Z _mZH$ (EEg) 10 Ho AZwgma "^y{_ VWm ^dZ Land and Building” to “General Reserve” in accordance with AS 10 “Property, Plant and Ho nwZ_y©ë`m§H$Z hoVw Ama{jV {Z{Y' go "amOñd Ama{jV Equipment issued in this regard by the ICAI”. {Z{Y' _o§ A§V[aV {H$`m OmVm h¡& iii. Impairment of Assets: iii. AmpñV`mo§ H$s j{V… Fixed Assets are reviewed for impairment whenever Ohm± {H$Ýht KQZmAmo§ Am¡a n[apñW{V`mo§ _o§ n[adV©Zmo§ Ho H$maU events or changes in circumstances warrant that the Eogm hmo OmVm h¡ {H$ {H$gr AmpñV Ho aImd am{e H$s dgybr carrying amount of an asset may not be recoverable. Zht hmo gH$Vr h¡, dhm± pñWa AmpñV`mo§ H$s j{V hoVw g_rjm H$s Recoverability of assets to be held and used is measured by a comparison of the carrying amount JB© h¡& Ym[aV Am¡a Cn`moJ H$s OmZo dmbr AmpñV`mo§ H$s dgybr of an asset to future net discounted cash fl ows j_Vm {H$gr AmpñV H$s aImd am{e go Cº am{e go àË`m{eV expected to be generated by the asset. If such assets ^mdr {Zdb ~ÅmH¥ V ZH$X àdmH$H$s VwbZm Ûmam _mnm OmVm are considered to be impaired, the impairment to be h¡& `{X Eogr AmpñV`mo§ H$mo jV _mZm OmVm h¡, Vmo Cº AmpñV Ho recognised is measured by the amount by which the C{MV _yë` go {OVZr A{YH$ CgH$s aImd am{e h¡, Cggo j{V carrying amount of the asset exceeds the fair value H$m {ZYm©aU {H$`m OmVm h¡& of the asset. iv. Capital Work-in-progress includes cost of fi xed iv. ny§OrJV Omar H$m`© _o§ AMb AmpñV`mo§ H$s bmJV Omo AnZo assets that are not ready for their intended use and A{^àoV à`moJ hoVw V¡`ma Zht h¡ & Ed§ gmW hr AMb AmpñV Ho$ also includes advances paid to acquire fi xed assets. A{YJ«U hoVw ^wJVmZ {H$ò JE A{J«_ em{_b h¡& b] Depreciation shall be provided under the straight-line I) ny±OrH$aU Ho {XZm§H$ go Ohm± grYr aoIm nÕ{V Ho VhV _yë`õmg àXmZ method from the date of capitalization. The assets are depreciated taking into consideration the useful life of II {H$`m J`m h¡& H§$nZr A{Y{Z`_, 2013 H$s AZwgyMr Ho àmdYmZ the asset as provided in Schedule II of the Companies Ho AZwgma AmpñV Ho Cn`moJr g_` na {dMma H$aVo hwE AmpñV`mo§ Act, 2013. The Bank as a matter of prudence fi nds that hoVw _yë`õmg àXmZ {H$`m J`m h¡& gmdYmZr Ho _m_bo Ho ê$n _o§ the useful life of the following assets is lower than the ~¢H$ Zo nm`m {H$ {ZåZ{b{IV AmpñV`mo§ H$m Cn`moJr g_` H§$nZr useful life of the respective category of assets mentioned A{Y{Z`_, 2013 H$s AZwgyMr II (g§X^©: Ymam 123) _o§ C{„{IV in Schedule II (ref.: Sec. 123) of the Companies Act, AmpñV`mo§ Ho g§~§{YV àdJ© Ho Cn`moJr g_` go H$_ h¡: 2013 as stated below: a. Motor Cycles, scooters and other mopeds – 8 years H$) _moQa gmB©H b, ñHy Qa Am¡a AÝ` _monoS - 8 df© (H§$nZr (As against standard life mentioned in Companies A{Y{Z`_ AZwgyMr-II _o§ Cp„{IV {Z`V Am`w 10 df© Ho Act Schedule-II – 10 years) gmnoj) b. Mobile Phones – 3 years (As against standard life I) _mo~mBb \ moZ - 3 df© (H§$nZr A{Y{Z`_ AZwgyMr-II _o§ mentioned in Companies Act Schedule-II – 15 Cp„{IV {Z`V Am`w 15 df© Ho gmnoj) years) J) `ynrEg VWm g§~Õ _Xo§ - 5 df© (H§ nZr A{Y{Z`_ AZwgyMr-II c. UPS and allied items – 5 years (As against standard _o§ Cp„{IV {Z`V Am`w 10 df© Ho gmnoj) life mentioned in Companies Act Schedule-II – 10 years) K) Eà H§ SreZa Am¡a BbopŠQ—H b {\ qQJ - 5 df© (H§$nZr d. Air conditioners and Electrical fi ttings – 5 years(As II A{Y{Z`_ AZwgyMr- _o§ Cp„{IV {Z`V Am`w 10 df© Ho against standard life mentioned in Companies Act gmnoj) Schedule-II –10 years) L) nÅmYmar gwYmamo§ H$m 5 dfmoª H$s Ad{Y Ho {bE _yë`õmg {H `m e. Lease hold Improvements are depreciated over OmVm h¡& period of 5 years. M) Ohm± ^y{_ Ed§ ^dZ H$m _yë` AbJ-AbJ Zht {b`m J`m f. Depreciation on premises is provided for on h¡, dhm± n[aga na _yë`õmg g§`wº bmJV na àXmZ {H$`m composite cost, wherever the value of land and J`m h¡& building is not separately identifi ed.

230 J¡a ~¢qH J g§ñWmZ Non-Banking Entity: i) AMb AmpñV`m| H$m _yë`m§H$Z _yb bmJV _| go AmH${bV _yë`õmg H$mo i) Fixed assets are valued at original cost less accumulated depreciation. Costs include all direct costs attributable to KQ>m H$a {H$`m OmVm h¡& bmJV _| A{YJ«hU, g§ñWmnZ Ed§ A{YH¥${VH$aU acquisition, installation and commissioning. go Ow‹S>o g^r àË`j bmJV e{_b h¡& ii) Depreciation on fi xed assets is provided on “Written Down ii) pñWa AmpñV`mo§ Ho _yë`õmg H$mo H§$nZr A{Y{Z`_, 2013 H$s Value” (WDV) method, at the rates specifi ed in and in the AZwgyMr-II _o§ {ZYm©[aV Xamo§ Am¡a _mZX§Smo na Ad{b{IV _yë` nÕ{V manner as laid down by Schedule II of the Companies Act, 2013. (Sãë`y Sr dr) na àXmZ {H$`m J`m h¡& 7. {dXoer {d{Z_` g§~§Yr boZ-XoZ 7. TRANSACTIONS INVOLVING FOREIGN EXCHANGE H . {dXoer _wÐm _o§ {H$E JE boZXoZmo§ Ho boZXoZ H$s VmarI H$mo bmJy a. Transactions denominated in foreign currencies are accounted for at the rates prevailing on the date of Xamo§ na n[aH${bV {H$`m J`m h¡& {dXoer _wÐm _m¡{ÐH$ AmpñV`m± the transaction. Foreign currency monetary assets and Ed§ Xo`VmE§ VwbZ-nÌ H$s {V{W Ho ^maVr` {dXoe {d{Z_` Srba liabilities are translated at the balance sheet date at Egmo{gEeZ (E\ B©SrEAmB©) Ûmam A{Ygy{MV A§{V_ {d{Z_` Xamo§ closing exchange rates notifi ed by Foreign Exchange na n[aH${bV H$s JB© h¢ VWm n[aUm_r bm^/hm{Z`m± bm^ Ed§ hm{Z Dealers Association of India [‘FEDAI’] and the resulting profi ts/losses are recognized in the profi t and ImVo _o§ em{_b H$s JB© h¢& loss account. I. {dXoer _wÐm J¡a-_m¡{ÐH$ _Xo§ Omo na§namJV bmJV Ho AZwgma br JB©, b. Foreign Currency non-monetary items, which are boZXoZ H$s VmarI Ho {d{Z_` Xa H$m à`moJ H$aHo [anmoQ© H$s JB© h¢& carried in terms at historical cost, are reported using the exchange rate at the date of the transaction. J. Q—oqSJ Ho {bE Ym[aV ~H$m`m dm`Xm {d{Z_` hm{Oa d dm`Xm H$ama c. Outstanding foreign exchange spot and forward {d{Z{X©îQ n[an¹VmAmo§ hoVw E\ B©SrEAmB© Ûmam A{Ygy{MV {d{Z_` contracts meant for trading purpose are revalued at Xamo§ na nwZ_y©ë`m§{H$V {H$E JE h¢ VWm n[aUm_r bm^ `m hm{Z H$mo the exchange rates specifi ed for spot and the respective bm^ hm{Z ImVo _o§ {b`m J`m h¡& forward maturities as notifi ed by FEDAI. The resulting profi t or loss is shown under Profi t or Loss account. K. {dXoe {d{Z_` dm`Xm g§{dXmE§, Omo Q—oqSJ hoVw C{ÔîQ Zht h¢ VWm d. Foreign exchange forward contracts, which are not VwbZ nÌ Ho {XZm§H$ H$mo ~H$m`m h¢, CZH$m nwZ_y©ë`Z E\$B©SrEAmB© intended for trading and are outstanding at the balance Ûmam A{Ygy{MV A§{V_ hm{µOa Xamo§ na {H$`m J`m h¡ VWm n[aUm_r sheet date, are revalued at the closing spot rate as bm^ `m hm{Z bm^-hm{Z ImVo _o§ Xem©B© JB© h¡& Eogo dm`Xm {d{Z_` notifi ed by FEDAI and the resulting profi t or loss is shown under Profi t or Loss account. The premium g§{dXm Ho àma§^ na CËnÞ àr{_`_ `m ~Åo H$mo g§{dXm Ad{Y _o§ or discount arising at the inception of such a forward ã`mO ì`` AWdm Am` Ho ê$n _o§ n[aemo{YV {H$`m J`m h¡& exchange contract is amortized as interest expense or income over the period of the contract. L. {dXoer _wÐm _o§ AmH$pñ_H$ Xo`VmAmo§ Ho E\$B©SrEAmB© H$s A§{V_ hm{µOa Xamo§ H$m Cn`moJ H$aHo [anmoQ© {H$`m J`m h¡& e. Contingent liabilities denominated in foreign currency are reported using the FEDAI closing spot rates. 8. ì`wËn{Þ`m± 8. DERIVATIVES i. ~¢H$ {dXoer _wÐm ã`mO Xa ñd¡n, _wÐm ñd¡n, _wÐm â`wMa, Am°ßeZ i. The bank enters into derivative contracts such as VWm dm`Xm Xa H$ama O¡go ì`wËnÞ g§{dXmE§ H$aVm h¡& foreign currency interest rate swaps, currency swaps, currency futures, options and forward rate agreements. ii. ì`wËnÞ H$amamo§ na ~Mmd (hoO) Ho ê$n _o§ dJr©H¥$V Am`/ì`` CnM` ii. The income/expenses on derivative contracts classifi ed AmYma na XO© H$s JB© h¡& as hedge are recorded on accrual basis. iii. iii. All trading derivative contracts are marked to market g^r Q—oqSJ ì`wËnÞ g§{dXmE§ ~mOma Xa na {Z{X©îQ H$s JB© h¢ VWm and the resultant gains or losses are recognized in the n[aUm_r bm^ `m hm{Z bm^-hm{Z boIo _o§ {d{Z{X©îQ H$s JB© h¡& Profi t and Loss Account. iv. g^r ì`wËnÞ boZXoZ AmH$pñ_H$ Xo`VmAmo§ Ho VhV dJr©H¥$V {H$E JE iv. All derivative transactions are classifi ed under contingent liabilities and those denominated in foreign h¢ VWm {dXoer _wÐm _yë`dJ© Ho boZXoZmo§ H$mo E\$B©SrEAmB© A§{V_ currencies are reported using the FEDAI closing spot hm{µOa Xamo§ H$m à`moJ H$aHo [anmoQ© {H$`m J`m h¡& rates.

9. ~hþ_yë` YmVw {Z{hV boZ XoZ 9. TRANSACTIONS INVOLVING PRECIOUS METALS i. ~hw_yë` YmVw boZXoZ go àmßV Am` H$mo "AÝ` Am`’ Ho ê$n _o§ i. Income from precious metals transactions is accounted boIm§{H$V {H$`m J`m h¡& naofU AmYma na àmßV YmVwAmo§ Ho _m_bo for as “Other Income”. In case of metals received on

ANNUAL REPORT 2018-19 231 _o§ Cgo {~H«$s Ho g_` H$s Am` Ho AmYma na {ZYm©aU {H$`m J`m consignment basis, the income thereon is recognized at the time of sale. h¡& ii. Commodity loans to the constituents and deposits ii. ~hw_yë` YmVwAmo§ Ho ê$n _o§ JŒmhH$mo§ H$mo {XE JE nÊ` G$Umo§ VWm from public under the gold deposit scheme in the form OZVm go ñdU© O_m `moOZm Ho A§VJ©V àmßV O_mAmo§ H$mo Ad{Y of precious metals are translated at market related rates g_mpßV Ho g_` àM{bV ~mµOma g§~Õ Xamo§ _o§ n[ad{V©V {H$`m J`m prevailing at the close of the period and shown under h¡ VWm HŒ _e… "A{J«_' Am¡a "O_mE±' erf© Ho VhV Xem©`m J`m h¡& the head “Advances” and “Deposits” respectively. iii. Closing stock of precious metals [own dealing] is valued iii. ~hw_yë` YmVwAmo§ Ho A§{V_ ñQmH$ H$mo (AnZo boZXoZ) bmJV go {ZåZ at lower of the cost and net realizable value. VWm {Zdb dgybr `mo½` _yë` na Am±H$m J`m h¡& iv. Closing stock of gold held under Gold Deposit iv. ñdU© O_m `moOZm Ho A§VJ©V Ym[aV ñdU© Ho A§{V_ ñQmH$ H$mo Scheme is valued at market related rates, as per the RBI ^maVr` [aµOd© ~¢H$ Ho {Xem{ZXo©emo§ Ho AZwgma ~mµOma g§~Õ Xamo§ na guidelines. Am±H$m J`m h¡& 10. CASH AND BALANCES WITH RESERVE BANK OF 10. ZH Xr Ed§ ^maVr` [aµOd© ~¢H _o§ eof INDIA Cash and Balance with Reserve Bank of India include cash ZH$Xr VWm ^maVr` [aµOd© ~¢H$ _o§ eof _o§ hñVJV d EQrE_mo§ _o§ ZH$Xr VWm on hand and in ATM’s, and gold in hand and balances with hñVJV ñdU© Ed§ ^maVr` [aµOd© ~¢H$ Ho nmg Mmby ImVo _o§ eof em{_b RBI in current accounts. h¢& 11. EMPLOYEE BENEFITS 11. ñQm\ {hVbm^ Banking Entity: ~¢qH$J g§ñWm: a) The Bank has accounted for Employee Benefi ts as H ) ^maVr` gZXr boImH$ma g§ñWmZ Ûmam Omar boIm§H$Z _mZH$ 15 Ho per Accounting Standard 15 issued by the Institute of AZwgma H$_©Mmar {hVbm^ hoVw ~¢H$ ImVo h¢& Chartered Accountants of India. i) b) i) Contributions payable to Gratuity, Pension, Leave I) JŒ¡À`wQr, no§eZ Am¡a NwÅr ZH$XrH$aU H$mo Xo` A§eXmZ Omo Encashment and Sick Leave etc., which are defi ned n[a^m{fV bm^ `moOZmE§ h¢, H$m boIm§H$Z dmñV{dH$ _yë`m§H$Z benefi ts are accounted based on actuarial valuations Ho AmYma na , VwbZ nÌ Ho {XZm§H$ H$mo ñdV§Ì ~r_m§H$H$ Ûmam made at the Balance Sheet date, carried out by an {H$`m OmVm h¡& independent actuary; ii) {Z{X©îQ ^{dî` {Z{Y/amîQ—r` no§eZ `moOZm (EZnrEg) Omo ii) Contributions payable to the recognized provident fund / National Pension Scheme (NPS), which is n[a^m{fV A{^XmZ `moOZmE± h¢, BZ_o§ Xo` A§eXmZ H$mo bm^ a defi ned contribution scheme; are charged to the Am¡a hm{Z ImVo _o§ à^m[aV {H$`m J`m h¡& Profi t and Loss Account. J¡a ~¢qH$J g§ñWm: Non-Banking Entity: _yb g§ñWm H$mo {H$`m J`m ^wJVmZ O¡go H$mnmo©aoeZ ~¢H$ Ho do ñQm\ Omo Payments made to parent organization viz., Corporation AÝ`Ì à{V{Z`w{º na h¢ CZHo doVZ/^{dî` {Z{Y hoVw {H$`m J`m ^wJVmZ Bank’s staff, towards emoluments/provident funds of their H$mo H§$nZr Ho ì`` Ho ê$n _o§ {XIm`m J`m h¡& employees/offi cials, whose services are lent to the Company on deputation basis, are regarded as Company’s costs. H$_©Mmar H$m [aQmà_o§Q bm^ _yb g§ñWm AWm©V H$mnm}aoeZ ~¢H$H$s Employee Retirement Benefi ts being the liability of O~m~Xohr h¡ AV… Bgo {dÎmr` {ddaU _o§ Zht {XIm`m J`m h¡& ~Im©ñVJr the parent organization viz. Corporation Bank is not bm^ VWm NwÅr ZH$Xr H$aU Ho gmW ^r `hr ì`dhma {H$`m J`m h¡¡& recognized in the Financial Statement. Similar is the case for termination benefi ts and leave encashment. 12. nÅmJV boZ-XoZ n[aMmbZ nÅo na br JB© AmpñV`mo§ hoVw nÅo Ho ^wJVmZmo§ H$mo nÅo H$s Ad{Y 12. LEASE TRANSACTIONS Lease payments for assets taken on operating lease are _o§ grYr aoIm nÕ{V Ho AmYma na bm^-hm{Z boIo _o§ ì`` Ho ê$n _o§ {b`m recognized as an expense in the profi t and loss account on a J`m h¡& straight-line basis over the lease term.

13. AmH pñ_H Xo`VmE§ Ed§ àmdYmZ 13. CONTINGENT LIABILITIES AND PROVISIONS ^maVr` gZXr boImH$ma g§ñWmZ Ûmam Omar boIm§H$Z _mZH$29 In conformity with AS 29, “Provisions, Contingent Liabilities and Contingent Assets”, issued by the ICAI, "àmdYmZ, AmH$pñ_H$ Xo`VmE§ VWm AmH$pñ_H$ AmpñV`m§' Ho AZwê$n the Bank recognizes provisions only when it has a present ~¢H$ àmdYmZmo§ H$m {ZYm©aU Ho$db V^r H$aVm h¡ O~ {dJV {H$gr KQZm Ho obligation as a result of a past event, it is probable that \ bñdê$n Cgo dV©_mZ Xm{`Ëd hmoVm h¡& `h $g§^d h¡ {H$ O~ Xm{`Ëd H$m an outﬂ ow of resources embodying economic beneﬁ ts will {dœgZr` àm¸ bZ {H$`m OmVm h¡, V~ Am{W©H$ bm^ A{^ì`º H$aZo be required to settle the obligation, and when a reliable dmbo g§gmYZmo§ Ho ~mha àdmh go Xm{`Ëd H$m {ZnQmZ H$aZm n‹So& estimate of the amount of the obligation can be made.

232 g§^m{dV Xm{`Ëd CËnÞ H$aZo dmbo {nNbr KQZmAmo§ H$s nwpîQ {OZH$m Past events leading to possible obligations existence of which ApñVËd EH$ AWdm A{YH$ A{Z{üV ^mdr KQZmAmo§, Omo nyU©V… ~¢H$ Ho will be confi rmed only by the occurrence or non-occurrence {Z`§ÌU _o§ Zht h¢, Ho KQZo `m Z KQZo na hr, H$s OmEJr AWdm dV©_mZ of one or more uncertain future events not wholly within the control of the Bank; or present obligations where it Xm{`Ëd, Ohm± `h g§^mì` Zht h¡ {H$ Am{W©H$ bm^ CËnÞ H$aZo dmbo is not probable that an outfl ow of resources embodying g§gmYZmo§ H$m H$moB© ~{hà©dmh Xm{`Ëd H$m {ZnQmZ H$aZo hoVw Ano{jV hmoJm economic benefi ts will be required to settle the obligation; AWdm Xm{`Ëd H$s am{e H$m {dœgZr` àm¸ bZ Zht {H$`m Om gH$Vm h¡, or a reliable estimate of the amount of obligation cannot be BÝho§ AmH$pñ_H$ Xo`VmAmo§ Ho ê$n _o§ _mZm OmVm h¡ VWm boIm§H$Z _mZH$ made, are treated as contingent liabilities and are dealt-with EEg-29 Ho AZwgma H$m`©dmB© H$s OmVr h¡& in accordance with AS-29. {dÎmr` {ddaUmo§ _o§ AmH$pñ_H$ AmpñV`mo§ H$m {ZYm©aU Zht {H$`m OmVm h¡& Contingent Assets are not recognized in the fi nancial statements. 14. Am` na H$a 14. TAXES ON INCOME Am` H$a ì`` _o§ Mmby H$a (AWm©V² Am` H$a H$mZyZ Ho AZwgma {ZYm©[aV Income-tax expense comprises current tax [i.e. amount Ad{Y hoVw H$a H$s am{e) VWm AmñW{JV H$a à^ma `m O_m (Ad{Y hoVw of tax for the period determined in accordance with the boIm§H$Z Am` VWm H$a `mo½` Am` Ho ~rM g_` Ho A§Va H$m H$a à^md income-tax law] and deferred-tax charge or credit [refl ecting à{Vq~{~V H$aZo dmbm) em{_b h¡& tax effects of timing differences between accounting income and taxable income for the period]. H ) bmJy H$a Xamo§, H$a {d{Y`mo§ Am¡a AZwHy b Ý`m{`H$ CX²¿mmofUmAmo§/ {d{YH$ A{^_Vmo§ Ho AZwgma H$amYmZ àm{YH$m[a`mo§ H$mo ^wJVmZ hoVw a] Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax Ano{jV am{e Ho AmYma na Mmby H$a H$mo _mnm J`m h¡& rates, tax laws and favourable judicial pronouncements/ I) AmñW{JV H$a à^ma `m O_m VWm AZwê$nr AmñWm{JV H$a Xo`VmAmo§ legal opinions. `m AmpñV`mo§ H$mo CZ H$a Xamo§ Ho à`moJ go {ZYm©[aV {H$`m J`m h¡ Omo b] The deferred-tax charge or credit and the corresponding VwbZnÌ {XZm§H$ VH$ A{Y{Z`{_V `m _yb ê$n go A{Y{Z`{_V H$s deferred-tax liabilities or assets are recognized using JB© h¢& ^m.[a.~¢. Ho {Xem{ZXo©emo§ Ho AZwgma, Am` H$a A{Y{Z`_, the tax rates that have been enacted or substantively 1961 H$s Ymam 36(1)(viii) Ho A§VJ©V H$Q>m¡Vr H$mo ñWmB© A§Va enacted by the Balance Sheet date. As advised by the Zht _mZm J`m h¡ AmñW{JV H$a Xo`Vm g¥{OV H$s OmZr h¡& Ohm± VH$ RBI, Bank shall create Deferred Tax Liabilities on the {Zdoe g§{d^mJ _o§ _yë`õmg H$m gdmb h¡, My±{H$ boImo§ Ho AZwgma “Special Reserves” created by Banks under Section 36 {Zdoemo§ na _yë`õmg _o§ A§Va Am¡a Am` H$a A{^H$bZ Ho AZwgma (1) (viii) of the Income Tax Act, 1961. Deferred Tax assets are recognized keeping in view the consideration A§Va H$mo ñWmB© A§Va _mZm OmVm h¡, AV… {Zdoe na _yë`õmg Ho of prudence only to the extent there is virtual certainty à{V SrQrEb H$m g¥OZ Amdí`H$ Zht g_Âmm J`m& AmñW{JV H$a that the assets are realized in future. AmpñV`mo§ H$m {ZYm©aU Cgr gr_m VH$ {ddoH$mZwgma {H$`m J`m h¡ Ohm± `h$g§^mì` {Z{üVVm ahVr h¡ {H$ AmpñV`mo§ H$mo ^{dî` _o§ àmßV 15. EARNINGS PER SHARE {H$`m Om gH$Vm h¡& Basic and Diluted Earnings per Equity Share are computed 15. à{V eoà AO©Z in accordance with Accounting Standard 20, Earnings Per Share, issued by the Institute of Chartered Accountants of _yb Ed§ VZwH¥$V à{V eoà Am` H$m n[aH$bZ ^maVr` gZXr boImH$ma India. g§ñWmZ Ûmam Omar boIm§H$Z _mZH$ 20, à{V eoà AO©Z Ho AZwê$n {H$`m J`m h¡& 16. TREATMENT OF BASEL III COMPLIANT 16. {Q—Ja Bdo§Q Ho hmoZo na ~ogb III AmYm[aV A{V[aº {Qà I ~m°ÊS ADDITIONAL TIER I BONDS AND TIER II BONDS VWm {Qà II ~m°ÊS H m {Zê$nU: ON OCCURRENCE OF TRIGGER EVENTS: H ) {Q—Ja Bdo§Q AWm©V², gm_mÝ` Bp¹Qr {Qà I {Q—Ja Bdo§Q Ho hmoZo na a] On occurrence of Trigger event i.e. Common Equity ~¢H$ ~m°ÊSmo§ Ho ~H$m`m _ybYZ H$m AdboIZ H$aoJm Omo ""EQr1 Tier I trigger event the Bank shall write-down the ~m°ÊS [aµOd©'' Ho g¥OZ Ûmam Cnamoº grB©Qr1 {Q—Ja Bdo§Q H$mo ~¢H$ outstanding principal of the Bonds not less than that the amount required to immediately return the Banks Ho gm_mÝ` B{¹$Q>r AZwnmV H$s VËH$mb dmngr hoVw Ano{jV am{e Common Equity Ratio to above the CET1 trigger go H$_ Zht hmoJm& Bg àH$ma g¥{OV [aµOd© gm_mÝ` B{¹$Q>r {Qà I event by creating “AT 1 Bond Reserve”. The reserve so ny±Or ~m°ÊS H$m ^mJ hmoJm {Ogo grB©Qr1 {Q—Ja Bdo§Q Ho hmoZo na created shall be part of Common Equity Tier I Capital AñWm`r ê$n go Adbo{IV {H$`m J`m h¡, H$mo EQr-1 ~m°ÊS [aµOd© Bonds written down on occurrence of CET1 Trigger _o§ Zm_o H$aVo hwE ~m°ÊS {ZJ©_/^m.[a.~¢. {Xem{ZXo©emo§ Ho AZwgma event temporarily may be re-instated in terms of Bond nwZ…ñWm{nV {H$`m OmEJm& issue/RBI guidelines by debit to AT-1 Bond reserve.

ANNUAL REPORT 2018-19 233 I) ^maVr` [aµOd© ~¢H$ Ûmam àma§^ ßdmB§Q Am°\ Zm°Z dmò{~{bQr b] On occurrence of Point of Non Viability [PONV] trigger event initiated by Reserve Bank of India, the (nrAmoEZdr) {Q—Ja Bdo§Q Ho hmoZo na, _m_bo Ho AZwgma EQr-1 Bank may create common equity Tier I capital by ~m°ÊS [aµOd©/{Qà II ~m°ÊS [aµOd© Ho VXZwê$nr g¥OZ Ho gmW ñWm`r writing off Additional Tier I Bond principal amount I permanently with corresponding creation of AT-1 Bond ê$n go A{V[aº {Qà ~m°ÊS _ybYZ am{e Ho AdboIZ Ûmam reserve/Tier II Bond Reserve as the case may be. The re- gm_mÝ` Bp¹Qr {Qà I ny±Or H$m g¥OZ H$a gH$Vo h¢& nwZ…ñWmnZm eV© instatement clause is not applicable on occurrence of nrAmoEZdr {Q—Ja Bdo§Q H$s KQZm na bmJy Zht h¡& PONV trigger event.

For Datta Singla & Co. For A. K. Sabat & Co. For Pramod & Associates Chartered Accountants Chartered Accountants Chartered Accountants FRN: 006185N FRN: 321012E FRN: 001557C [CA Sanjeev Aggarwal] [CA. A. K. Sabat] [CA Ravindra Raniwala] Partner Partner Partner Membership No. 503932 Membership No. 30310 Membership No. 073191 For Chandran & Raman For S. Ramanand Aiyar & Co. Chartered Accountants Chartered Accountants FRN: 000571S FRN: 000990N [CA S. G. Kalyanaraman] [CA Binod C. Maharana] Partner Partner Membership No. 10652 Membership No. 056373 ñWmZ …_§Jbyé/Place : Mangaluru {XZm§H … 17 ‘B©, 2019/Date : 17 May, 2019 234 AZwgyMr 18 SCHEDULE 18

boImo§ H$s {Qßn{U`m± Omo g_o{H V {dÎmr` {ddaU NOTES TO THE ACCOUNTS FORMING PART OF THE CONSOLIDATED H m A§J h¢ FINANCIAL STATEMENTS

1. AmñW{JV H a : 1. DEFERRED TAX : H ) ~¢H Zo H|$Ðr` àË`j H$a ~moS© Ho n{anÌ gr~rSrQr {XZm§{H$V a) The bank has reckoned the Income Computation and 23.03.2017 Ho gmW n{RV gr~rSrQr A{YgyMZm {XZm§{H$V Disclosure Standards (ICDS) as per Notiﬁ cation by Central Board of Direct Taxes (CBDT) Dt 29.09.2016, 29.09.2016 Ho AZwgma Am` JUZm Am¡a àH$Q>rH$aU _mZH read with Circular of CBDT Dt 23.03.2017 in this (AmB©grSrEg) H$s nwpîQ H$s h¡, Bg g§~§Y _o§ Omo AmH$bZ df© regard which are applicable for the Assessment Year 2018-19 Am¡a CgHo ~mX Ho _yë`m§H$Z df© Ho {bE bmJy h¢ & 2018-19 and subsequent Assessment Years. I) ~¢H B§pñQQ²æyQ Am°\ MmQ©S© EH$mC§Qo§Q²g Am°\ B§{S`m (ICAI) b) The Bank has been recognizing deferred tax assets Ûmam Omar {H$E JE boIm§H$Z _mZH 22 Ho AZwgma, AmñW{JV and liabilities as per Accounting Standard 22 issued H$a AmpñV`mo§ Am¡a XoZXm{a`mo§ H$mo _mÝ`Vm XoVm ahm h¡, hmbm±{H by Institute of Chartered Accountants of India (ICAI), however during the current year deferred tax assets on Mmby df© Ho Xm¡amZ AÝ` Q¡Šg hm{Z`mo§ Ho Abmdm H$mbm§Va _o§ timing differences other than tax losses to the tune AmñW{JV H$a g§n{Îm`mo§ H$mo `1740.09 H$amo‹S AmH${bV {H$`m of `1740.09 crore has been recognized. Considering J`m h¡& hm{Z Am¡a A{eîQVm H$s _mÌm H$mo Ü`mZ _o§ aIVo hwE,Mmby the quantum of loss and prudence, the current year df© _o§ H$a hm{Z na `1240.13 H$amo‹S H$s AmñW{JV H$a deferred tax asset of `1240.13 crore on tax loss has not AmpñV`mo§ H$mo g§kmZ _o§ Zht {b`m J`m h¡ & ~¢H 31.03.2018 been recognized. The bank carries a deferred tax asset of `1557.96 crore on tax losses to 31.03.2018. The ` H$mo H$a KmQo KmQo na 1557.96 H$amo‹S H$s AmñW{JV H$a AmpñV Components of deferred taxes are as under: aIVm h¢ BgHo _w»` KQH {ZåZdV² h¢ & (` H amo‹S _o§) (` in Crores) 31 _mM©, 31 _mM©, 31st March, 31st March, {ddaU Particulars 2019 2018 2019 2018 AmñW{JV H a AmpñV`m§ Deferred Tax Assets on account of 89.78 86.75 NwÅr ZH XrH aU Leave encashment Provision 89.78 86.75 56.61 97.39 {dÎmnmo{fV ã`mO _r`mXr G$U Funded Interest Term Loans 56.61 97.39 n[aË`mJ 20.46 35.94 Sacriﬁ ce 20.46 35.94 G$U g§~§Yr hm{Z`m± 3,914.38 2,431.18 Loan Losses 3,914.38 2,431.18 pñWa AmpñV`mo§ na _yë`õmg 48.36 17.02 H a `mo½` Am`/(hm{Z) 1,557.96 1,542.98 Depreciation on Fixed Assets 48.36 17.02 Taxable Income/(Loss) 1,557.96 1,542.98 Hw N {Z{X©îQ _mZH AmpñV`mo§ hoVw AmB©AmaEgr 258.67 10.30 _mZX§Smo§ Ho AZwgma àmdYmZ On Standard Assets Provision 258.67 10.30 Hw b 5,946.22 4,221.56 Total 5,946.22 4,221.56 AmñW{JV H a Xo`VmE§ Deferred Tax Liabilities on account of no§eZ d J«¡À`wQr - nyd© ^wJVmZ – 20.24 Pension & Gratuity - Prepayment – 20.24 XrKm©d{Y {dÎm Am` 499.96 495.16 Long Term Finance Income 499.96 495.16 499.96 515.40 Hw b Total 499.96 515.40 {Zdb AmñW{JV H a (Xo`Vm)/AmpñV 5,446.26 3,706.16 Net Deferred tax (Liabilities) / Assets 5,446.26 3,706.16 AmñW{JV H a AmpñV ({Zdb) `5446.26 H amo‹S (JV df© AmñW{JV Deferred Tax Assets (net) `5446.26 crore (Previous Year H a AmpñV ({Zdb) `3706.16 H amo‹S) H mo ""AÝ` AmpñV`mo§'' Ho Deferred Tax Assets (net) `3706.16 crores) is included A§VJ©V em{_b {H `m J`m& under “other assets”.

ANNUAL REPORT 2018-19 235 2. àI§S [anmoqQ©J 2. SEGMENT REPORTING: Part A: ^mJ H$: Disclosure as per “AS 17 - Segment Reporting”, issued by the ^maVr` gZXr boImH ma g§ñWmZ Ûmam Omar ""boIm§H Z _mZH 17- Institute of Chartered Accountants of India are given àI§S [anmo{Q>ªJ'' Ho AZwgma àH QZ {ZåZdV² h¡: below: (` H amo‹S _o§) (` in Crores) HŒ .g§. {ddaU 31 _mM©, 2019 31 _mM©, 2018 Sl. No. Particulars 31 March, 2019 31 March, 2018 H ) a) àI§S amOñd Segment Revenue i) Q—oµOar n[aMmbZ Treasury Operations 4,121.61 6,429.73 ii) WmoH ~¢qH J Wholesale Banking 7,087.52 7,174.08 iii) IwXam ~¢qH J Retail Banking 5,320.25 5,385.60 iv) AÝ` ~¢qH J n[aMmbZ Other Banking Operations 398.02 457.61 v) AZm~§{QV Unallocated 576.70 500.38 Hw b Total 17,504.09 19,947.40 I) b) àI§S n[aUm_ Segment Results àËòH àI§S go H a nyd© Am¡a ã`mO nümV² bm^ (+) hm{Z (-) Profi t (+) Loss (-) before tax and after interest from each segment i) Q—oµOar n[aMmbZ Treasury Operations (48.13) 464.45 ii) WmoH ~¢qH J Wholesale Banking (7,782.81) (6,819.21) iii) IwXam ~¢qH J Retail Banking 498.80 419.25 iv) AÝ` ~¢qH J n[aMmbZ Other Banking Operations 397.17 456.87 Hw b Total (6,934.97) (5,478.64) J) c) AZm~§{QV ì`` Unallocated Expenses 1105.03 1196.60 K) d) H$a go nyd© Hw$b bm^/(hm{Z) Total Profi t/(Loss) before Tax (8,040.00) (6,675.25) L) e) Am` H a Income Tax (1,714.70) (2,625.32) M) f) AgmYmaU bm^/(hm{Z) Extraordinary Profi t/(Loss) 0.00 0.00 N) g) {Zdb bm^/(hm{Z) Net Profi t/(Loss) (6,325.30) (4,049.93) O) h) AÝ` gyMZm Other Information 0.00 0.00 Âm) i) àI§S AmpñV`m± Segment Assets i) Q—oµOar n[aMmbZ Treasury Operations 60,943.96 72,196.01 ii) WmoH ~¢qH J Wholesale Banking 65,204.55 66,930.56 iii) IwXam ~¢qH J Retail Banking 63,081.65 60,871.74 iv) AÝ` ~¢qH J n[aMmbZ Other Banking Operations 48.47 39.99 v) AZm~§{QV AmpñV`m± Unallocated Assets 24345.48 21887.88 Hw b Total 213,624.11 221,926.18 àI§S Xo`VmE± Segment Liabilities: i) Q—oµOar n[aMmbZ Treasury Operations 54,109.78 65,719.83 ii) WmoH ~¢qH J Wholesale Banking 58,917.43 62,147.49 iii) IwXam ~¢qH J Retail Banking 60,929.39 61,244.15 iv) AÝ` ~¢qH J n[aMmbZ Other Banking Operations 1.96 (2.44) v) AZm~§{QV Xo`VmE§ Unallocated liabilities 23,054.42 21,929.32 Hw b Total 197,012.99 211,038.36 à`wº ny±Or ((àI§S> AmpñV`m±-àI§S> Xo`VmE±) Capital Employed (Segment assets-Segment liabilities) i) Q—oµOar n[aMmbZ Treasury Operations 6,834.18 6,476.18 ii) WmoH ~¢qH J Wholesale Banking 6,287.12 4,783.07 iii) IwXam ~¢qH J Retail Banking 2,152.26 (372.42) iv) AÝ` ~¢qH J n[aMmbZ Other Banking Operations 46.51 42.43 v) AZm~§{QV Xo`VmE§ Unallocated Assets 1,291.06 (41.44) Hw b Total 16,611.12 10,887.82

236 ^mJ I : ^m¡Jmo{bH àI§S Part B : Geographic Segment The Geographic segment consists of only domestic segment as My±{H ~¢H H$s H$moB© {dXoer emIm Zht h¡ AV: ^m¡Jmo{bH àI§S àñVwV Zht the Bank does not have any foreign branch. {H$`m J`m h¡& Notes: {QßnUr : 1. As per guidelines of RBI on compliance with Accounting 1. boIm _mZH$m| Ho AZwnmbZ na Ama~rAmB© Ho {Xem{ZXo©emo§ Ho AZwgma, Standards, the Bank has adopted "Treasury Operations", ~¢H Zo AmB©grEAmB© Ûmam "goJ_o§Q [anmo{Q>ªJ' na Omar EEg-17 Ho "Wholesale", "Retail" and "Other Banking Operations" AZwnmbZ Ho CÔoí` go "Kaoby goJ_o§Q' Ho VhV àmW{_H IÊSmo§ Ho ê$n _o§ as Primary segments under "Domestic Segment" for the purpose of compliance with AS-17 on "Segment "Q—oOar Am°naoe§g', "hmobgob', "{aQob' Am¡a "AÝ` ~¢qH J Am°naoe§g' Reporting" issued by ICAI. H$mo AnZm`m h¡& 2. Segment Liabilities are distributed in the ratio of their 2. àI§S Xo`VmE§ CZHo g§~§{YV àI§S n{ag§n{Îm`mo§ Ho AZwnmV _o§ {dV{aV respective Segment Assets. H$s OmVr h¢& 3. Figures of the previous period/year have been 3. dV©_mZ {V_mhr/Ad{Y H$s àñVw{V Ho AmYma na {nNbr Ad{Y/df© regrouped/ reclassiﬁ ed based on current quarter/period's Ho Am§H$‹So H$mo nwZ: EH {ÌV/nwZd©JuH¥$V {H$`m J`m h¡Ÿ& presentation. 3. RELATED PARTY DISCLOSURES : 3. g§~§{YV nmQr© àH QrH aU : In compliance with “Accounting Standard 18 - Related ^maVr` [aµOd© ~¢H Ho {Xem{ZXo©emo§ Ho gmW n{RV ^maVr` gZXr boImH ma Party Disclosures”, issued by the Institute of Chartered Accountants of India read along with the Reserve Bank of g§ñWmZ Ûmam Omar ""EEg 18-g§~§{YV nmQr© àH QZ'' Ho AZwnmbZ _o§ India guidelines, the details of Related Party Transactions g§~§{YV nmQr© boZ XoZ go g§~§{YV {ddaU {ZåZdV² h¢: are disclosed as under: g§~§{YV nm{Q©`mo§ H$m Zm_ Ed§ H$mnmo©aoeZ ~¢H Ho gmW CZH$m g§~§Y/ Name of the related parties and relationship with Corporation Bank _w»` à~§YZ H$m{_©H/Key Management Personnel (KMP) Zm_ g§~§Y lr_Vr nr. dr. ^maVr (01.02.2019 go)(01-02-2016 go) à~§Y {ZXoeH E§d _w»` H m`©nmbH A{YH mar Smt. P. V. Bharathi (from 01.02.2019) Managing Director & CEO lr O` Hw$_ma JJ© (VH$ 31.01.2019)22-01-) à~§Y {ZXoeH E§d _w»` H m`©nmbH A{YH mar Shri Jai Kumar Garg (Till 31.01.2019) Managing Director & CEO lr Jmonmb _wabr ^JV H m`©nmbH {ZXoeH Shri Gopal Murli Bhagat Executive Director lr {~énmj {_lm (26.12.2018 go) H m`©nmbH {ZXoeH Shri Birupaksha Mishra (From 26.12.2018) Executive Director H$mn© ~¢H goŠ`y{aQrO {b{_QoS/Corp bank Securities Limited AZwf§Jr/Subsidiary g§~§{YV nm{Q©`mo§ go boZXoZ/Transactions with the related parties: (` H$amo‹S _o§ )/(`in Crores) HŒ . g§./ Nature of transaction KMP Sl. No. boZXoZ H$m àH ma / Ho$E_nr/ n[al{_H$/Remuneration 31 _mM©, 2019 31 _mM©, 2018 1. lr_Vr nr. dr. ^maVr/Smt. P. V. Bharathi 0.05 – 2. lr O` Hw _ma JJ©/Shri Jai Kumar Garg 0.27 0.30 3. lr Jmonmb _wabr ^JV/Shri Gopal Murli Bhagat 0.28 0.26 4. lr {~énmj {_lm/Shri Birupaksha Mishra 0.08 – {QßnUr: AZwf§Jr Ho gmW boZ-XoZ H$m Iwbmgm EEg -18 "g§~§{YV nmQ>u àH$Q>rH$aU' Ho n¡am 9 Ho _ÔoZOa Zht {H$`m J`m h¡, Omo amÁ` {Z`§{ÌV CÚ_mo§ H$mo amÁ` {Z`§{ÌV AÝ` g§~§{YV njmo§ Ho gmW CZHo boZXoZ go g§~§{YV {H$gr ^r Iwbmgo H$mo H$aZo go NyQ XoVm h¡ & _w»` à~§YZ H$m{_©H$m| Am¡a _w»` àd§YZ H$m{_©H$m| Ho {aíVoXmamo Ho gmW ~¢H$a J«mhH$ g§~§Y _o§ boZXoZmo§ H$mo EEg 18 Ho AZwÀNoX 5 H$s eVmoª _o§ àH$Q> {H$`m J`m h¡& Note: The transactions with the subsidiary are not disclosed in view of para 9 of AS-18 “Related Party Disclosure”, which exempts state controlled enterprises from making any disclosures pertaining to their transactions with other related parties, which are also state controlled. Transactions in the nature of banker-customer relationship including those with KMP and relatives of KMP have been disclosed in terms of Para 5 of AS-18.

ANNUAL REPORT 2018-19 237 4. à{V eoà AO©Z : 4. EARNINGS PER SHARE: à{V eoà _yb AO©Z… Basic Earnings per Share: 31 March, 31 March, 31 _mM©, 31 _mM©, Particulars {ddaU 2019 2018 2019 2018 Net profi t/(loss) after tax available for B©pŠdQ>r eoàYmaH mo§ hoVw CnbãY H a Ho (6,325.30) (4,049.93) (6,325.30) (4,049.93) ~mX {Zdb bm^/(hm{Z) (am{e H amo‹S _o§) equity shareholders (` in crores) Weighted average number of equity shares ^m[aV Am¡gV B©pŠdQ>r eoàmo§ H$s g§»`m 210.66 114.85 210.66 114.85 (H amo‹S _o§) (in crores) à{V eoà _yb AO©Z (`) (30.03) (37.31) Basic Earnings per Share (`) (30.03) (37.31) à{V eoà Zm__mÌ _yë` (`) 2.00 2.00 Nominal Value per Share (`) 2.00 2.00 VZyH¥ V à{V eoà AO©Z: bmJy Zht Š`mo§{H H moB© VZyH¥$V g§^mì` B©pŠdQ>r Diluted Earnings per Share: Not applicable as there are no eoà Zht h¡& dilutive potential equity shares.

5. ny§Or n`m©ßVVm: 5. CAPITAL ADEQUACY : bmJy Zht h¡& Not applicable. 6. FIXED ASSETS: 6. pñWa AmpñV`m±: i. n[aga _o§ `12.23 H amo‹S (JV df© `12.47 H amo‹S) H$s bmJV i. Premises include properties costing `12.23 Crores (previous year `12.47 crores) for which registration dmbr n[ag§n{Îm`m± ^r em{_b h¢ {OZHo {bE n§OrH aU H$s formalities are pending. Am¡nMm[aH$VmE§ b§{~V h¢& ii. Fixed Assets include `4.40 crores (Previous Year ii. pñWa AmpñV`mo§ _o§ ny±OrJV Mmby H m`©-n[aga go g§~§{YV `4.40 `1.50 crores) in respect of Capital Work in Progress- H amo‹S (JV df© `1.50 H$amo‹S>) em{_b h¡& Premises. iii. During the year 2018-19, cost of software acquired is iii. ` df© 2018-19 Ho Xm¡amZ A{O©V gm°âQdo`amo§ H$s bmJV 37.04 `37.04 crores (Previous Year `37.48 crores) and the H amo‹S (JV df© `37.48 H amo‹S) h¡ Am¡a df© Ho Xm¡amZ n[aemo{YV amount amortized during the year is `38.56 crores am{e `38.56 H amo‹S (JV df© `28.61 H amo‹S) h¡& (Previous Year `28.61 crores). iv. ny±OrJV ImVo na {ZînmXZ hoVw b§{~V g§{dXmE± {OZHo {bE àmdYmZ iv. Contracts pending execution on Capital account and not provided for is `105.06 crores (Previous Year ` ` Zht {H `m J`m, 105.06 H amo‹S (JV df© 578.59 H amo‹S) h¡& `578.59 crores).

v. df© Ho Xm¡amZ ~¢H Zo `19.26 H amo‹S H mo ^y{_ d ^dZ Ho v. During the year, the Bank has reversed `19.26 crores nwZ_y©ë`m§H Z hoVw Ama{jV {Z{Y`mo§ go àË`md{V©V {H$`m (JV df© from the revaluation reserve towards the General `16.46 H amo‹S)& Reserve (previous years `16.46 crores). vi. As per RBI guidelines, Bank has carried out Revaluation vi. Ama~rAmB© {Xem{ZXoemo§ Ho AZwgma ~¢H Zo ~¢H Ho ñdm{_Ëd of Bank owned properties, the value of which is dmbr g§n{Îm`mo§ H$m nwZ_y©ë`m§H$Z {H$`m {OgH$m _yë` {nNbo _yë` `962.62 crores as against the previous value of `687.99 H$amo‹S Ho _wH$m~bo `962.62 H$amo‹S ahm& `687.99 crores. vii. df© 2018-19 Ho Xm¡amZ, `4.19 H$amo‹S H$s am{e H$mo dñVw d vii. During the year 2018-19, an amount of `4.19 crores has been reduced from the cost of Fixed Assets on godm H$a (OrEgQr) Ho H$maU pñWa AmpñV`mo§ H$s bmJV go H$_ account of Goods and Services Tax (GST) for utilizing {H$`m J`m h¡ Vm{H BgH m Cn`moJ OrEgQr Xo`Vm Ho {bE {Z{dpîQ the same as input credit against GST liability (previous O_m Ho ê$n _o§ {H$`m Om gHo (JV df© `2.33. H$amo‹S)& year `2.33 crores)

238 7. H$_©Mmar {hVbm^: 7. EMPLOYEE BENEFITS: 7.1 ^maVr` gZXr boImH ma g§ñWmZ Ûmam Omar boIm§H Z _mZH 7.1 The Bank has accounted for Employee Benefi ts as per AS EEg 15 Ho AZwgma ~¢H Ûmam H _©Mmar {hVbm^ hoVw boIm§H Z {H `m 15 issued by the Institute of Chartered Accountants of India. J`m h¡& (a) The Principal actuarial assumptions used as at the (H ) VwbZ nÌ H$s VmarI H mo à`wº _w»` ~r_m§{H V YmaUmE§… balance sheet date: (à{VeV _|/in percentage) XrKm©d{Y à{VnyaH {hVbm^ no§eZ ({Z{YH) JŒ¡À`wQr ({Z{YH ) (A{Z{YH) Pension (Funded) Gratuity (Funded) Long Term compensated n[a^m{fV {hVbm^ {Z{YH absences (Un-funded) Defi ned Benefi ts Funded 31 _mM©, 31 _mM©, 31 _mM©, 31 _mM©, 31 _mM©, 31 _mM©, 2019 2018 2019 2018 2019 2018 31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 2019 2018 2019 2018 2019 2018 ~Åm Xa Discount Rate 7.77% 7.85% 7.77% 7.85% 7.77% 7.85% doVZ d¥{Õ Salaries increase 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% no§eZ d¥{Õ Pension increase 5.50% 5.50% bmJy Zht NA bmJy Zht NA bmJy Zht NA bmJy Zht NA EQ´>reZ Xa Attrition Rate 2.02% 1.43% 1.63% 1.31% 1.63% 1.31%

`moOZm AmpñV`mo§ na àË`m{eV à{Vbm^ Xa 8.22% 8.12% 8.14% 8.11% bmJy Zht bmJy Zht Expected Rate of Return on Plan Assets NA NA (I) n[a^m{fV {hVbm^ Xm{`Ëd Am¡a `moOZm AmpñV`m| Ho dV©_mZ _yë` Ho Ama§{^H Ed§ A§{V_ eof H m g_mYmZ {ZåZdV² àñVwV h¡… (b) A reconciliation of Opening and Closing Balances of the present value of the defi ned benefi t obligation and Plan assets is as under: n[a^m{fV {hVbm^ Defi ned benefi ts (` H amo‹S _o§) (` in Crores) XrKm©d{Y à{VnyaH {hVbm^ no§eZ ({Z{YH$) JŒ¡À`wQr ({Z{YH$) (A{Z{YH$) Pension (Funded) Gratuity (Funded) Long Term compensated Xm{`Ëd Obligations absences (Un-funded) 31 _mM©, 31 _mM©, 31 _mM©, 31 _mM©, 31 _mM©, 31 _mM©, 2019 2018 2019 2018 2019 2018 31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 2019 2018 2019 2018 2019 2018 Ama§{^H eof Opening Balance 3,427.79 3,206.07 543.97 460.38 250.65 247.16 ã`mO bmJV Interest Cost 260.42 228.81 38.98 31.93 17.75 16.56 Mmby godm bmJV Current Service Cost 93.03 82.66 48.17 42.66 38.55 35.02

{dJV godm bmJV - n[aemoYZ hoVw AnmÌ – – – – – – Past service cost – Not eligible for amortization àXÎm {hVbm^ Beneﬁ ts Paid (220.66) (186.03) (84.56) (51.80) (49.16) (43.61)

Xm{`Ëd na ~r_m§{H H$ (bm^)/hm{Z 85.92 96.28 19.08 60.80 (0.86) (4.48) Actuarial (Gain) / Loss on obligation A§{V_ eof Closing Balance 3,646.50 3,427.79 565.64 543.97 256.93 250.65

ANNUAL REPORT 2018-19 239 (` H amo‹S _o§) (` in Crores) no§eZ ({Z{YH$) Pension (Funded) JŒ¡À`wQr ({Z{YH$) Gratuity (Funded) Plan Assets `moOZm AmpñV`m± 31 _mM©, 2019 31 _mM©, 2018 31 _mM©, 2019 31 _mM©, 2018 31st March, 2019 31st March, 2018 31st March, 2019 31st March, 2018

Aà¡b H mo `moOZm AmpñV`mo§ H m C{MV _yë` 3,427.79 3,216.07 485.48 462.37 Fair Value of plan assets as on April `moOZm AmpñV A§eXmZmo§ na àË`m{eV à{Vbm^ 278.77 516.63 40.71 38.12 Expected Return on Plan Assets Contributions {Z`moº$m A§eXmZ Employer Contribution 147.76 139.52 113.86 40.00 Xygao Ý`mg Am¡a gXñ`mo§ go A§VaU – – – – Transfer from other trust and members àXÎm {hVbm^ Benefi ts Paid (220.66) (186.03) (84.57) (51.80) ~r_m§{H H$ bm^/(-) hm{Z Actuarial gain / (-) loss (5.33) (258.40) (0.23) (3.20) `moOZm AmpñV`mo§ H m A§{H V _yë` 3,628.33 3,427.79 555.25 485.49 Fair Value of plan assets as on March 2019 (J) bm^ Ed§ hm{Z boIm _o§ {ZYm©[aV Hw b ì``… (c) Total Expenses recognized in the Profi t and Loss Account : (` H amo‹S _o§) (` in Crores) XrKm©d{Y à{VnyaH {hVbm^ ) (A{Z{YH) no§eZ ({Z{YH ) JŒ¡À`wQr ({Z{YH Long Term compensated Gratuity (Funded) Pension (Funded) benefi t absences n[a^m{fV {hVbm^ Defi ned benefi ts (Un-funded) 31 _mM©, 31 _mM©, 31 _mM©, 31 _mM©, 31 _mM©, 31 _mM©, 2019 2018 2019 2018 2019 2018 31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 2019 2018 2019 2018 2019 2018 Mmby godm bmJV Current Service Cost 93.03 82.66 48.17 42.66 38.55 35.02 ã`mO bmJV Interest Cost 260.42 228.81 38.98 31.93 17.75 16.56 `moOZm AmpñV`mo§ na àË`m{eV à{Vbm^ (278.78) (516.63) (40.71) (38.11) – – Expected return on plan assets Ad{Y Ho Xm¡amZ {ZYm©[aV {Zdb ~r_m§{H$H$ (bm^)/hm{Z 91.25 354.68 19.32 63.99 (0.86) (4.48) Net Actuarial (Gain) / Loss recognized in the period {dJV godm bmJV - {ZYm©[aV Past service cost–recognized – – – – – – {dJV godm bmJV - n[aemoYZ hoVw AnmÌ – – – – – – Past service cost – Not eligible for amortization bm^ Ed§ hm{Z {ddaU _o§ {ZYm©[aV ì`` 165.92 149.52 65.76 41.99 55.44 47.10 Expenses recognized in the Statement of Profi t and Loss AJbo df© _o§ n{aemoYZ hoVw AmñW{JV {dJV godm bmJV (VrZ {V_m{h`mo§ _o§ g_mZ ê$n go)Past service cost deferred for – – – 58.48* – – amortisation in next year (Equally in three quarters) * {dÎm df© 2017-18 `58.48 H$amo‹S Ho KmQo Ho {bE {dÎm df© 2018-19 H$s VrZ {V_m{h`mo§ _o§ g_mZ àmdYmZ {H$`m J`m h¡| * Defi cit of `58.48 Crore for the Financial Year 2017-18 provided in Financial Year 2018-19 in Three Quarters equally. ^maVr` {aµOd© ~¢H Zo AnZo nÌ g§X^© g§. Sr~rAma.~rnr.9730/21/21.04.018/2017-18 {XZm§{H$V 27 Aà¡b 2018 Ho O{aE 31 _mM© 2018 H$mo g_mßV {V_mhr go àma§^ hmoZo dmbr Mmamo§ {V_m{h`mo§ Ho {bE CnXmZ g§Xm` A{Y{Z`_ 1972 Ho VhV 29 _mM©, 2018 go `10 bmI go `20 bmI VH JŒ¡À`wQr _o§ d¥{Õ Ho H$maU A{V{aº Xo`Vm H$mo \¡$bmZo H$m {dH$ën ~¢H$m| H$mo {X`m h¡& VXZwgma, 31-03-2018 H$mo g_mßV {V_mhr _o§ `19.49 H$amo‹S H$m àmdYmZ {H$`m h¡ VWm {dÎmr` df© 2018-19 H$s ~mX H$s VrZ {V_m{h`mo§ hoVw `58.48 H$amo‹S àmdYm{ZV {H$`m J`m h¡& Reserve bank of India vide their letter ref no: DBR.BP.9730/21/21.04.2018/2017-18 dt April 27, 2018 has given the option to the banks to spread the additional liability on account of the enhancement in Gratuity Limits from `10 Lakh to `20 Lakh from 29th March 2018 under the Payment of Gratuity Act over 4 quarters beginning with the quarter ended March 31, 2018. Accordingly `19.49 crore was provided in the quarter ended 31st March 2018 and `58.48 Crore has been provided in fi rst three quarters of the FY 2018-19.

240 (K) `moOZm AmpñV`mo§ H m g§KQZ… (d) The Compositions of Plan Assets: (à{VeV _o§) (In Percentage) no§eZ ({Z{YH ) JŒ¡À`wQr ({Z{YH ) Pension (Funded) Gratuity (Funded) {ddaU Particulars 31 _mM©, 2019 31 _mM©, 2018 31 _mM©, 2019 31 _mM©, 2018 31st March, 2019 31st March, 2018 31st March, 2019 31st March, 2018 gaH mar à{V^y{V`m± Government Securities – – – – CÀM JwUdÎmm gaH mar ~m±S High Quality Corporate Bonds 1.78 2.60 5.99 7.19 {deof O_mam{e`m± Special Deposits 2.62 3.24 1.58 0.46 AÝ` (nrEg`y) Other (PSU) – – – – ~r_m `moOZmAmo§ Ho A§VJ©V AmpñV`m± 95.60 94.16 92.43 92.35 Assets under Insurance Schemes Hw b Total 100.00 100.00 100.00 100.00 (L) n[a^m{fV {hVbm^ Xm{`Ëdmo§ H$m dV©_mZ _yë`, `moOZm AmpñV`mo§ H$m C{MV _yë`, A{Yeof/H$_r VWm Mmby Ed§ JV df© Ho {bE AZw^d g_m`moOZ {ZåZmZwgma h¡… (e) The present value of defi ned benefi ts obligations, the fair value of plan assets, Surplus/Defi cits and experience adjustments are as under: (` H amo‹S _o§) (` in Crores) 31 _mM©, 31 _mM©, 31 _mM©, 31 _mM©, 31 _mM©, Pension 2019 2018 2017 2016 2015 no§eZ 31st March, 31st March, 31st March, 31st March, 31st March, 2019 2018 2017 2016 2015 Xm{`Ëd H m dV©_mZ _yë` PV of Obligation 3646.50 3427.79 3206.07 2975.91 2779.59 `moOZm AmpñV`mo§ H m C{MV _yë` Fair Value of Plan Assets 3628.33 3427.79 3216.07 2985.32 2809.49 (A{Yeof)/H _r (Surplus) /Defi cits 18.17 0.00 (10.00) (9.41) (29.90) An[aemo{YV Xo`Vm Un-amortized Liability 0.00 0.00 0.00 0.00 0.00 (A{Yeof)/H _r [An[aemo{YV Xo`Vm H m {Zdb] 18.17 0.00 (10.00) (9.41) (29.90) (Surplus) / Defi cits [Net of Un-amortized Liability] `moOZm Xo`VmAmo§ na AZw^d g_m`moOZ (hm{Z)/bm^ (85.92) (96.28) (89.20) (118.10) (148.08) Experience Adjustment on Plan Liabilities (Loss)/Gain `moOZm AmpñV`mo§ na AZw^d g_m`moOZ (hm{Z)/bm^ (5.33) (258.41) (7.00) 23.46 61.96 Experience Adjustment on Plan Assets (Loss)/Gain

31 _mM©, 31 _mM©, 31 _mM©, 31 _mM©, 31 _mM©, Gratuity 2019 2018 2017 2016 2015 JŒ¡À`wQr 31st March, 31st March, 31st March, 31st March, 31st March, 2019 2018 2017 2016 2015 Xm{`Ëd H m dV©_mZ _yë` PV of Obligation 565.64 543.97 460.38 451.25 465.03 `moOZm AmpñV`mo§ H m C{MV _yë` Fair Value of Plan Assets 555.25 485.48 462.37 468.42 478.85 (A{Yeof)/H$_r (Surplus) /Deﬁ cits 10.39 58.49 (1.99) 17.17 13.82 `moOZm Xo`VmAmo§ na AZw^d g_m`moOZ (hm{Z)/bm^ (19.08) (60.80) 23.51 28.81 20.73 Experience Adjustment on Plan Liabilities (Loss)/ Gain `moOZm AmpñV`mo§ na AZw^d g_m`moOZ (hm{Z)/bm^ (0.23) (3.20) (1.10) (1.30) 18.30 Experience Adjustment on Plan Assets (Loss)/ Gain

ANNUAL REPORT 2018-19 241 31 _mM©, 31 _mM©, 31 _mM©, 31 _mM©, 31 _mM©, XrKm©d{Y à{VnyaH {hVbm^ AZwnpñW{V 2019 2018 2017 2016 2015 Long term compensated absences 31st March, 31st March, 31st March, 31st March, 31st March, 2019 2018 2017 2016 2015 Xm{`Ëd H m dV©_mZ _yë` PV of Obligation 256.93 250.65 247.16 247.36 236.56 `moOZm AmpñV`mo§ H m C{MV _yë` Fair value of Plan Assets 0 0 0.00 0.00 0.00 (A{Yeof)/H _r (Surplus) /Deﬁ cits 256.93 250.65 247.16 247.36 236.56 `moOZm Xo`VmAmo§ na AZw^d g_m`moOZ (hm{Z)/bm^ (0.86) (4.48) (7.64) (5.56) (6.49) Experience Adjustment on Plan Liabilities (Loss)/ Gain `moOZm AmpñV`mo§ na AZw^d g_m`moOZ (hm{Z)/bm^ 0 0 0 0 0 Experience Adjustment on Plan Assets (Loss)/Gain H _©Mmar ~r_mar NwÅr `moOZm - df© 2018-19 Ho Xm¡amZ, ~¢H Zo ~r_mar NwÅr hoVw ~mÜ`Vm nyar H$aZo hoVw `2.07 H amo‹S H m Hw b ì`` {H$`m h¡& `Wm 31.03.2019 H$mo {Z{Y _yë` H$m dV©_mZ _yë` `58.01 H$amo‹S h¡& The Employee Sick Leave Scheme - During the year 2018-19, Bank has provided total expenses of `2.07 crore for meeting the obligations towards Sick Leave. Present value of Fund as on 31st March, 2019 is `58.01 crore.

M. `Wm 31 _mM© 2019 H mo VwbZ nÌ _o§ _mÝ`Vm àmßV {Zdb AmpñV/(Xo`Vm) : f. Net Asset/(Liability) recognized in the Balance Sheet as at March 31, 2019: (` H$amo‹S> _|) (ìn crores) XrKm©d{Y à{VnyaH {hVbm^ no§eZ {Z{YH JŒ¡À`wQr {Z{YH A{Z{YH Pension [Funded] Gratuity Funded] Long Term compensated n{a^m{fV {hVbm^ absences [Un funded] Defi ned benefi ts 31 _mM©, 31 _mM©, 31 _mM©, 31 _mM©, 31 _mM©, 31 _mM©, 2019 2018 2019 2018 2019 2018 31st March, 31st March, 31st March, 31st March, 31st March, 31st March, 2019 2018 2019 2018 2019 2018 n{a^m{fV Xm{`Ëd H m dV©_mZ _yë` 3,646.50 3,427.79 565.64 543.97 256.93 250.65 Present value of the defi ned obligation

`moOZm AmpñV`mo§ H m C{MV _yë` 3,628.33 3,427.79 555.25 485.49 – Fair value of the Plan Assets –

{Z{YH¥$V pñW{V A{Yeof/(KmQm) (18.17) – (10.39) (58.48)* (256.93) (250.65) Funded Status [surplus/(deﬁ cit)]

VwbZ nÌ _o§ _mÝ`Vm àmßV {Zdb AmpñV /(Xo`Vm) (18.17) – (10.39) (58.48)* (256.93) (250.65) Net Asset/(Liability) recognised in the Balance Sheet

* {dÎm df© 2017-18 `58.48 H$amo‹S Ho KmQo Ho {bE {dÎm df© 2018-19 H$s VrZ {V_m{h`mo§ _o§ gm_mZ àmdYmZ {H$`m J`m h¡| Ÿ& * Deﬁ cit of `58.48 crore for the Financial Year 2017-18 provided in Financial Year 2018-19 in Three Quarters equally.

242 8. àmdYmZ, AmH pñ_H Xo`VmE§ Am¡a AmH pñ_H AmpñV`m± 8. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS H ) àmdYmZ… a) Provisions: (` H amo‹S _o§) (` in Crores)

`Wm df© Ho Xm¡amZ {H E df© Ho Xm¡amZ `Wm H«$. 01.04.2018 H mo JE A{V[aŠV df© Ho Xm¡amZ à`moJ àË`md{V©V àmdYmZ 31.03.2019 g§. àmdYmZ H$s àH¥ {V àma§{^H eof àmdYmZ {H E JE àmdYmZ Provision H mo A§{V_ eof Sl. Nature of Provision Opening Additional Provision used Closing Reversed No. Balance as on Provision made during the year Balance as on during the year 01.04.2018 during the year 31.03.2019 i. J¡.{Z.Am. hoVw {H E JE àmdYmZ 7,929.68 12,002.72 5,989.44 417.58 13,525.38 Provision made towards NPAs (5,188.34) (11,111.90) (8,228.37) (142.19) (7,929.68) ii. {Zdoe na _yë`õmg hoVw àmdYmZ (J¡.{Z.Am. àmdYmZ g{hV) 1,139.02 340.20 – 243.25 1,235.97 Provision for Depreciation on Investment (Including (443.67) (821.26) – (125.91) (1,139.02) NPI provision) iii. Am` H a/g§n{Îm H a hoVw àmdYmZ 153.90 – – 7.30 146.60 Provision made towards Income Tax/Wealth Tax (484.67) – (288.13) (42.64) (153.90)

iv. g^r AÝ` _X| * All others* 1,020.66 189.80 – 171.96 1,038.50 (2,192.18) (4.83) – (1,176.35) (1,020.66)

H moîRH _o§ JV df© Ho Am±H$‹So h¢/Figures in brackets represent Previous Year fi gures * Bg_o§ H O© Ho ê$n _o§ ñdrH ma Z {H ò Jò ~¢H Ho {déÕ Xmdmo§ hoVw àmdYmZ, H nQnyU© boZ-XoZmo§ hoVw àmdYmZ VWm AÝ` {d{dY boZ-XoZ em{_b h¢& * Includes provision for claims against the Bank not acknowledged as debt, provision towards fraudulent transactions and other miscellaneous transactions.

I) AmH pñ_H Xo`Vm… b) Contingent Liabilities: i) H O© Ho ê$n _o§ ñdrH$ma Z {H `o J`o ~¢H Ho {déÕ Xmdo… Claims against the Bank not acknowledged as debts: (` H amo‹S _o§) (` in Crores) Xmdmo§ H$s g§ gH$b Xmdo {Zdb Xmdo {ddaU Particulars No. of Claims Gross Claim Net Claim

01-04-2018 H$mo ~H m`m Hw b Xmdo Total Claims outstanding as on 01-04-2018 100 2,317.92 2,311.11 KQmE§: df© Ho Xm¡amZ hQmE/g§emo{YV Xmdo Less: Claims deleted/revised during the year 16 1,058.48 1,058.48 Omo‹So§: df© Ho Xm¡amZ Omo‹So ZE Xmdo Add : Claims added during the year 18 1,980.83 1,980.83 31-03-2019 H mo ~H m`m Hw b Xmdo Total Claims outstanding as on 31-03-2019 102 3,240.27 3,233.46

ANNUAL REPORT 2018-19 243 31 _mM©, 2019 H mo ~H m`m Xmdmo§ H m {df`dma dJr©H aU… Subject-wise classiﬁ cation of the claims outstanding as on 31st March, 2019: (` H amo‹S _o§) (` in Crores)

Particulars Xmdmo§ H$s g§. gH b Xmdo {Zdb Xmdo {ddaU No. of Claims Gross Claim Net Claim

~¢H Jma§Qr Bank Guarantees 2 0.16 0.01 MoH /_m±J S—mâQ/^wJVmZ AmXoe Am{X H$s CJmhr Cheques/DD/PO etc., collection 9 0.78 0.23 G$U nmoQ©\$mo{b`mo Credit Portfolio 15 1.15 0.82 O_m nmoQ©\$mo{b`mo Deposits Portfolio 2 0.32 – gVH© Vm Vigilance 23 6.51 1.71

{d{dY [Am` H$a _m±Jmo§ go g§~§{YV Xmdmo§ g{hV]# 51 3,231.35 3,230.69 Miscellaneous [Including claims on account of Income Tax Demands]# `moJ* Total* 102 3,240.27 3,233.46 * ewéAmV go boH a Ohm± bmJy hmo Xmdmo§ na ã`mO H mo Nmo‹SH a/Excluding interest on claims, wherever applicable, since inception. # H$a Am¡a ã`mO g{hV AmH$pñ_H$ Xo`VmE§ _o§ `3,210.93 H$amo‹S ({dJV df© `2, 290.59 H$amo‹S) Contingent liabilities include tax and interest of `3,210.93 Crores (Previous Year `2,290.59 crores) 9. Ama~rAmB© g§Mma {S>~rAma g§»`m ~rnr.8756/21.04.048/ 9. In terms of RBI communication DBR No. 2017-18 H$s {XZm§H 2 Aà¡b, 2018 go, EZgrEbQr (gyMr 1 BP.8756/21.04.048/2017-18 dated 2nd April, 2018, Am¡a gyMr 2) ImVmo§ Ho g§X^© _o§, 31 _mM© 2019 VH ~¢H Ho nmg, in respect of NCLT (List 1 & List 2) accounts, as on `9079.55 H$amo‹S _yë` 100% àmdYmZ h¡& 31st March 2019, Bank holds 100% provision of the outstanding value of `9079.55 crore. 10. Ama~rAmB© Zo n{anÌ g§. Ama~rAmB©/2017-18/186 {S>{~Ama. 10. RBI vide Circular No. RBI/2017-18/186 DBR.No.BP. g§. {~{n{~gr.108/21.04.048/2017-18 {XZm§H 6 OyZ, BC.108/21.04.048/2017-18 dated 6th June, 2018 2018 Ho _mÜ`_ go ~¢H mo§ H$mo E_EgE_B© CYmaH$Vm©Am| H$mo {XE JE permitted banks to continue the exposure to MSME d¡go G$Umo§ {OZ_o§ 1 {gVå~a 2017 go 31 {Xg§~a, 2018 Ho ~rM borrowers to be classiﬁ ed as standard assets where the dues Ho ~H$m`m CZH r Xo`Vm H$s dmñV{dH {V{W go 180 {XZmo§ Ho ~mX ^r between 1st September, 2017 and 31st December, 2018 are ^wJVmZ Zht {H$`m J`m h¡, H$mo ñQ¡ÊSS© AmpñV`mo§ Ho ê$n _o§ dJuH¥$V paid not later than 180 days from their respective original H$aZo H$s AZw_{V Xr h¡ & VXZwgma, ~¢H Zo 31 _mM©, 2019 VH due dates. Accordingly, the Bank has retained advances `309.66 H$amo‹S Ho A{JŒ_mo§ H$mo ñQ¡ÊSS© AmpñV`mo§ Ho ê$n _o§ ~aH$ama of `309.66 crore as standard assets as on 31st March, aIm h¡& Amdí`H$VmZwgma, ~¢H Zo Eogo H$O©Xmam| Ho g§~§Y _o§ `9.75 2019. As required, the Bank has not recognised interest H$amo‹S H$s ã`mO Am` H mo _mÝ`Vm Zht Xr h¡ Am¡a 31 _mM©, 2019 VH income of `9.75 crore and is maintaining a standard 15.00 H$amo‹S Ho ñQ¡ÊSS© AmpñV àmdYmZ H$mo ~ZmE aIm h¡& asset provision of `15.00 crore as on 31st March, 2019 in respect of such borrowers.. 11. Ama~rAmB© Zo n{anÌ g§. Ama~rAmB©/2018-19/100 {S>{~Ama 11. RBI vide Circular No. RBI/2018-19/100 DBR.No.BP. g§. {~{n{~gr. 18/21.04.048/2018-19 {XZm§H 1 OZdar , BC.18/21.04.048/2018-19 dated 1st January, 2019 2019 Ho _mÜ`_ go ~¢H$m| H$moo E_EgE_B© CYmaH$Vm©Am| H$mo {XE JE permitted banks to restructure the exposure to MSME d¡go G$Umo§ {OZ_o§ 1 {gVå~a, 2017 go 31 {Xg§~a, 2018 Ho ~rM borrowers and permit them to be classiﬁ ed as standard Ho ~H$m`m CZH r Xo`Vm H$s dmñV{dH {V{W go 180 {XZmo§ Ho ~mX ^r assets where the dues between 1st September, 2017 and ^wJVmZ Zht {H `m J`m h¡, H mo nwZgªa{MV H aZo Am¡a ñQ¡ÊSS© AmpñV`mo§ 31st December, 2018 are paid not later than 180 days Ho ê$n _o§ dJr©H¥ V aIZo H$s AZw_{V Xr h¡| VXZwgma, ~¢H Zo 31 _mM©, from their respective original due dates. Accordingly, the 2019 VH `181.85 H amo‹S Ho A{JŒ_mo§ H mo ñQ¡ÊSS© AmpñV`mo§ Ho ê$n Bank has retained advances of `181.85 crore as standard _o§ ~aH ama aIm h¡& Amdí`H VmZwgma, ~¢H Zo Eogo H$O©Xmamo§ Ho g§~§Y _o§ assets as on 31st March, 2019. As required, the Bank has 31 _mM©, 2019 VH 9.09 H$amo‹S Ho ñQ¡ÊSS© AmpñV àmdYmZ H$mo made provision of `9.09 crore as on 31st March, 2019 in ~ZmE aIm h¡& respect of such borrowers.

244 12. Ohm± Amdí`H h¡, {nNbo df© Ho Am§H$S>m| H$mo dV©_mZ df© H$s àñVw{V 12. Previous year's ﬁ gures have been regrouped/rearranged wherever necessary in order to conﬁ rm with the current Ho AZwên ~ZmZo Ho {bE nwZ…dJr©H¥$V/nwZì`©dpñWV {H `m J`m h¡& year presentation.

[nr.dr.^maVr] [Jmonmb _wabr ^JV] [{~énmj {_lm] à~§Y {ZXoeH Ed§ grB©Amo H$m`©nmbH {ZXoeH H$m`©nmbH {ZXoeH [_Zrf JwßVm] [nr. Ho . nm§Sm] [Ho . lr{Zdmg _y{V©] {ZXoeH {ZXoeH {ZXoeH [E_. ^Jd§V amd] [àXrn Hw _ma O¡Z] [{MÌm Jm¡ar bmb] {ZXoeH {ZXoeH {ZXoeH [dr. _wËVwH¥ îUZ] [kmZ a§OZ gma§Jr] [gw^mf Hw$_ma Ho$ed] _hm à~§YH Cn _hmà~§YH Cn _hmà~§YH H¥$Vo XÎmm qgJbm EÊS H§ . H¥$Vo E. Ho . g~V EÊS H§ . H¥$Vo à_moX EÊS Egmo{gEQ²g gZXr boImH ma gZXr boImH ma gZXr boImH ma E\$AmaEZ-006185EZ E\$AmaEZ-321012B© E\$AmaEZ-001557gr (grE g§Ord AJ«dmb) (grE E. Ho . g~V) (grE a{dÝÐ amZrdmbm) gmÂmoXma gmÂmoXma gmÂmoXma gXñ` g§.503932 gXñ` g§. 30310 gXñ` g§. 073191 H¥$Vo MÝÐZ EÊS a_Z H¥$Vo Eg. am_mZ§X Aæ`a EÊS H§ . gZXr boImH ma gZXr boImH ma E\$AmaEZ-000571Eg E\$AmaEZ-000990EZ (grE Eg.Or. H$ë`mUa_U) (grE {~ZmoX gr. _hmamUm) gmÂmoXma gmÂmoXma gXñ` g§.10652 gXñ` g§.056373 ñWmZ … _§Jbyé {XZm§H $… 17 ‘B©, 2019 [ P.V. Bharathi] [Gopal Murli Bhagat] [Birupaksha Mishra] Managing Director & CEO Executive Director Executive Director [Manish Gupta] [P. K. Panda] [K. Srinivasa Murthy] Director Director Director [M. Bhagavantha Rao] [Pradeep Kumar Jain] [Chitra Gouri Lal] Director Director Director [V. Muthukrishnan] [Gyana Ranjan Sarangi] [Subhash Kumar Keshav] General Manager Deputy General Manager Deputy General Manager

ANNUAL REPORT 2018-19 245 H$mnm}aoeZ ~¢H$ CORPORATION BANK 31 _mM©, 2019 H$mo g_mßV df© hoVw g_o{H$V ZH$Xr àdmh {ddaU Consolidated Cash Flow Statement for the year ended 31st March, 2019 (Ÿ` in ’000 _|)

31.03.2019 31.03.2018 PARTICULARS H$mo g_mßV df© H$mo g_mßV df© {ddaU Year Ended 31.03.2019 Year Ended 31.03.2018 H$. n[aMmbZ H$m`©H$bmnm| go ZH$Xr àdmh / A. CASH FLOW FROM OPERATING ACTIVITIES H$a Cnam§V {Zdb bm^/hm{Z (-) Net Profi t/Loss (-) after Tax -6325,29,89 -4049,93,19 Omo‹S>|… H$a hoVw àmdYmZ Add: Provision for Tax -1714,70,08 -2625,31,50 H$a nyd© {Zdb bm^/hm{Z (-) Net Profi t/Loss (-) before Tax -8039,99,97 -6675,24,69 i {ZåZ hoVw g‘m¶moOZ Adjustment for : pñWa AmpñV¶m| na ‘yë¶õmg Depreciation on Fixed Assets 176,54,38 175,41,49 {Zdoem| na ‘yë¶õmg Depreciation on Investments 340,20,20 820,65,55 EZnrE hoVw ‘yë¶õmg Provision for NPAs 11585,13,72 10982,13,51 ‘mZH$ AmpñV¶m| hoVw àmdYmZ Provision for Standard Assets 180,52,52 -815,65,09 {Q>¶a I Am¡a {Q>¶a II ~m±S>m| na àXÎm ã¶mO Interest paid on Tier I & Tier II Bonds 420,81,01 592,65,49 AmH$pñ‘H$VmAm| Am¡a AÝ¶ hoVw àmdYmZ Provision for Contingencies and Others -43,29,41 -54,63,53 H$_©Mmar H$ë`mU {Z{Y hoVw, _yë`õmg Provision for Staff welfare fund – – pñWa AmpñV¶m| H$s {~H«$s na (bm^)/hm{Z (Profi t)/Loss on Sale of Fixed Assets 1,49,49 -,45,07 àmßV ã`mO/bm^m§e Interest/Dividend Received -,43,57 -,86,78 å`yMwAb \§$S> Ho$ _moMZ na àmpßV Gain on redemption of Mutual Funds – – Income earned AZwf§{J¶m| Am¡a gh¶mo{J¶m| go bm^m§e Am{X Ûmam A{O©V Am¶ – – by way of Dividend etc. from Subsidiaries and Associates

àË¶j H$a (àXÎm)/dmng {H$¶m J¶m (H$mn© ~¢H$ {gŠ`y[a{Q>O {b. Ûmam) -1,82,77 -1,43,75 Direct Taxes (paid)/Refund (by Corp Bank Securities Ltd.) ã¶mO ny±OrH$aU hoVw àmdYmZ Provision for Interest Capitalisation -119,42,00 -301,23,00 ii n[aMmbZ AmpñV¶m| Ed§ Xo¶VmAm| ‘| n[adV©Z go nhbo ZH$Xr àdmh 3360,06,75 4636,05,43 Cash Flow before change in Operating Assets and Liabilities {ZåZ hoVw g‘m¶moOZ Adjustment for: O‘mam{e¶m| ‘| d¥{Õ/(H$‘r) Increase/(Decrease) in Deposits 1251,44,28 -37243,86,46 CYma ‘| d¥{Õ/(H$‘r) Increase/(Decrease) in Borrowings -10539,37,83 14902,91,01

AÝ¶ Xo¶VmAm| Ed§ àmdYmZ ‘| d¥{Õ/(H$‘r) -13443,33,46 -12893,62,84 Increase/(Decrease) in other liabilities & provisions {Zdoem| ‘| (d¥{Õ)/H$‘r (Increase)/Decrease in Investments 10370,57,25 -6276,78,99 A{J«‘m| ‘| (d¥{Õ)/H$‘r (Increase)/Decrease in Advances -1382,37,21 20487,95,66 AÝ¶ AmpñV¶m| ‘| (d¥{Õ)/H$‘r (Increase)/Decrease in Other Assets 3607,92,30 370,77,44

~Å>o ImVo {bIZo/A§V[aV H$aZo Ho$ {bE Ama{jV {Z{Y¶m| ‘|/go g‘m¶moOZ 19,25,54 17,31,29 Adjustments to/from Reserves for Write Off/trf

n[aMmbZ {H«$¶mH$bmnm| go {Zdb ZH$Xr àdmh (H$) -6755,82,38 -15999,27,46 NET CASH FLOW FROM OPERATING ACTIVITIES [A]

246 (` in ’000 _|)

31.03.2019 31.03.2018 PARTICULARS H$mo g_mßV df© H$mo g_mßV df© {ddaU Year Ended 31.03.2019 Year Ended 31.03.2018 I. {Zdoe {H«$¶mH$bmnm| go {Zdb ZH$Xr àdmh B. CASH FLOW FROM INVESTING ACTIVITIES pñWa AmpñV¶m| H$s {~H«$s/{ZnQ>mZ Sale/Disposal of Fixed Assets -3,78,32 1,74,69 {~H«$s AmpñV¶m| H$s IarX/Purchase of Fixed Assets -111,49,17 -132,34,17 AZwf§{J`m±/g§¶wº$ CÚ‘/gh¶mo{J¶m| ‘| A{V[aº$ {Zdoe – – Additional Investment in Subsidiary/Joint Ventures/Associates àmßV ã`mO/bm^m§e Interest/Dividend Received ,43,57 ,86,78 å`yMwAb \§$S> Ho$ _moMZ na àmpßV Gain on redemption of Mutual Funds 2,95,47 2,33,06 AZwf§{J¶m| Am¡a gh¶mo{J¶m| ‘| bm^m§e Am{X Ûmam A{O©V Am¶ – – Income earned by way of Dividend etc. from Subsidiaries and Associates

{Zdoe {H«$¶mH$bmnm| go {Zdb ZH$Xr àdmh (I) -111,88,45 -127,39,64 NET CASH FLOW FROM INVESTING ACTIVITIES [B] J. {dÎmr¶Z {H«$¶mH$bmnm| go {Zdb ZH$Xr àdmh C. CASH FLOW FROM FINANCING ACTIVITIES eo¶a ny±Or Ho$ {ZJ©‘Z go AmJ‘ Proceeds from Issuance of Share Capital 11777,37,28 2187,00,00 {Q>¶a I Am¡a {Q>¶a II ~m±S>m| go AmJ‘ Proceeds of Tier I & Tier II Bonds -3237,50,00 800,00,00 {Q>¶a I Am¡a {Q>¶a II ~m±S>m| H$m à{VXmZ Redemption of Tier I & Tier II Bonds – – {Q>¶a I Am¡a {Q>¶a II ~m±S>m| na àXÎm ã¶mO Interest paid on Tier I & Tier II Bonds -420,81,01 -592,65,49 àXÎm bm^m§e (A§V[a‘ d A§{V_) Dividend (Interim & Final) paid – – àXÎm bm^m§e g§{dVaU H$a Dividend Distribution Tax paid – – {dÎmr`Z {H«$¶mH$bmnm| go {Zdb ZH$Xr àdmh (J) 8119,06,27 2394,34,51 NET CASH FLOW FROM FINANCING ACTIVITIES [C] K. ZH$Xr Am¡a ZH$Xr g‘Vwë¶ ‘| {Zdb d¥{Õ/(H$‘r) (H$+I+J) ¶m (M-L>) D. NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 1251,35,43 -13732,32,59 [A+B+C] or [F-E] >L. df© Ho$ àma§^ ‘| ZH$Xr Am¡a ZH$Xr g‘Vwë¶ CASH AND CASH EQUIVA- E. LENTS AT THE BEGINNING OF THE YEAR ZH$Xr Am¡a ^m.[a.~¢. Ho$ nmg ~¢H$ eof Cash and Bank Balance with RBI 11140,15,44 17496,63,54 ~¢H$ Ho$$ nmg eof am{e¶m± Am¡a ‘m±J na Am¡a Aën gyMZm na YZ 177,52,65 7553,32,14 Balance with Banks and Money at Call and Short Notice df© Ho$ àma§^ ‘| {Zdb ZH$Xr Am¡a ZH$Xr g‘Vwë¶ (L>) NET CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE 11317,68,09 25049,95,67 YEAR [E] M. df© Ho$ A§V ‘| {Zdb ZH$Xr Am¡a ZH$Xr g‘Vwë¶ CASH AND CASH F. EQUIVALENTS AT THE END OF THE YEAR ZH$Xr Am¡a ^m.[a.~¢. Ho$ nmg ~¢H$ eof Cash and Bank Balance with RBI 9661,06,91 11140,15,44 Balance with Banks and Money at ~¢H$ Ho$ nmg eof am{e¶m± Am¡a ‘m±J na Am¡a Aën gyMZm na YZ 2907,96,58 177,47,66 Call and Short Notice

df© Ho$ A§V ‘| {Zdb ZH$Xr Am¡a ZH$Xr g‘Vwë¶ (M) 12569,03,49 11317,63,10 NET CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR [F]

ANNUAL REPORT 2018-19 247 ñdV§Ì boImnarjH$m| H$s {anmoQ© INDEPENDENT AUDITORS’ REPORT To the Members of Corpbank Securities Limited H$mn©~¢H$ {gŠ`w{aQrµO {b{_QoS Ho gXñ`mo§ H$mo

{dÎmr` {ddaUmo§ na {anmoQ© Report on the Financial Statements A{^_V Opinion h_Zo H mn©~¢H {gŠ`w{aQrµO {b{_QoS (""H§ nZr'') Ho g§b¾ {dÎmr` We have audited the accompanying financial statements of CorpBank Securities Limited (“the Company”) which 9 {ddaUmo§ H$s boIm-narjm H$s h¡ {OZ_o§ 31, _mM© 201 VH H$s pñW{V comprises the Balance Sheet as at March 31, 2019, the Ho AZwgma VwbZ-nÌ VWm Cg VmarI H mo g_mßV df© hoVw bm^-hm{Z boIo Statement of Profit and Loss and statement of cash flows for Am¡a ZH$Xr àdmh {ddaU, _hËdnyU© boIm-Zr{V`mo§ Ho gmam§e Am¡a AÝ` the year then ended, and notes to the financial statements, including a summary of significant accounting policies and

ì`m»`mË_H gyMZm em{_b h¢& other explanatory information. h_mar am` Am¡a h_o§ àmßV OmZH mar VWm h_o§ {X`o JE ñnîQrH aU Ho AZwgma, In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements Cnamoº {dÎmr` {ddaU, A{Y{Z`_ Ho {bE Ano{jV gyMZm àXmZ H$aVm h¡ give the information required by the Act in the manner so Am¡a `Wm 31.03.2019 H mo g_mßV df© hoVw BgHo bm^ VWm ZH Xr àdmh Ho required and give a true and fair view in conformity with the ~mao _o§, H§ nZr _m_bmo§ Ho {bE ^maV _o§ gm_mÝ`V… ñdrH¥ V boIm§H Z {gÕm§Vmo§ accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2019, its profit and its Ho AZwgma ghr Am¡a {Zînj _V àXmZ H$aVm h¡& cash flows for the year ended on that date. A{^_V H$m AmYma Basis for Opinion h_mao Ûmam H$s JB© `h boImnarjm H§ nZr A{Y{Z`_, 2013 H r Ymam 143(10) We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Ho VhV {Z{X©îQ boIm§H Z _mZH mo§ (EgE) Ho AZwgma H r JB© h¡& CZ boIm§H Z Companies Act, 2013. Our responsibilities under those _mZH$m| Ho A§VJ©V h_mao CÎmaXm{`Ëdmo§ H$mo h_mar {anmoQ© Ho AZw^mJ _o§, {dÎmr` Standards are further described in the Auditor’s Responsibilities {ddaU Ho boImnarjm hoVw boImnarjH Ho CÎmaXm{`Ëd _o§ AmJo d{U©V {H `m for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the J`m h¡& h_ H§$nZr Ho A{Y{Z`_, 2013 Am¡a {Z`_mo§ Ho àmdYmZmo§ Ho VhV Code of Ethics issued by the Institute of Chartered Accountants {dÎmr` {ddaUmo§ H r h_mar boIm narjm Ho {bE àmg§{JH Z¡{VH Amdí`H VmAmo§ of India together with the ethical requirements that are relevant Ho gmW ^maV Ho MmQ©S© EH$mC§Qo§Q²g g§ñWmZ Ûmam Omar AmMma g§{hVm Ho AZwgma to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we H§$nZr go ñdV§Ì h¢, Am¡a h_Zo BZ AnojmAmo§ Am¡a AmMma g§{hVm Ho AZwgma have fulfilled our other ethical responsibilities in accordance AnZr AÝ` Z¡{VH CÎmaXm{`Ëdmo§ H mo nyam {H `m h¡& h_ {dœmg H aVo h¢ {H h_mao with these requirements and the Code of Ethics. We believe Ûmam àmßV H$s`m J`m boImnarjm gmú` n`m©ßV h¡ Am¡a h_mao A{^_V hoVw Cn`wº that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. AmYma h¡& Responsibility of Management for the Financial Statements {dÎmr` {ddaU hoVw à~§YZ H$m CÎmaXm{`Ëd The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) {dÎmr` {ddaU V¡`ma H aZo Ed§ àñVwV H aZo Ho g§~§Y _o§ H§ nZr A{Y{Z`_, 2013 with respect to the preparation of these financial statements (""A{Y{Z`_'') H$s Ymam 134(5) _o§ g§X{^©V boIm _mZH$mo Ho AZwgma that give a true and fair view of the financial position, financial performance, and cash flows of the Company in accordance with

^maV _o§ gm_mÝ`V… ñdrH¥ V boIm§H$Z {gÕm§Vmo§ g{hV Bg A{Y{Z`_ H$s Ymam the accounting principles generally accepted in India, including 133 Ho AZwgma H§$nZr H$s {dÎmr` pñW{V, {dÎmr` {ZînmXZ Am¡a H§$nZr H$s the accounting Standards specified unders ection 133 of the ZH$Xr àdmh H$m ghr Ed§ {Zînj pñW{V Xem©Zo dmbo {dÎmr` {ddaUmo§ H$mo V¡`ma Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act

H$aZo H$m CÎmaXm{`Ëd H§$nZr Ho {ZXoeH _§Sb H$m h¡& Bg CÎmaXm{`Ëd _o§ H§$nZr for safeguarding of the assets of the Company and for preventing H$s AmpñV`mo§ H$s gwajm VWm YmoImY{‹S`mo§ d AÝ` A{Z`{_VVmAmo§ H$mo nVm and detecting frauds and other irregularities; selection and

248 bJmZo Am¡a amoH$Zo Ho {bE, C{MV boIm§H$Z Zr{V H$m M`Z Cn`moJ, A{Y{Z`_ application of appropriate implementation and maintenance of accounting policies; making judgments and estimates that

Ho AZwgma n`m©ßV boIm§H$Z {aH$mSmoª H$m aI-aImd; Cn`wº boIm§H Z Zr{V`mo§ are reasonable and prudent; and design, implementation and H$m M`Z Am¡a Cn`moJ, ghr Ed§ C{MV AmH$bZ Ed§ {ZU©`; boIm§H Z {aH$mS© maintenance of adequate internal financial controls, that were H$s ewÕVm Ed§ nyU©Vm gw{Z{üV H$aZo hoVw n`m©ßV Am§V{aH {dÎmr` {Z`§ÌU H$m operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and

{Zê$nU, H$m`m©Ý`dZ Am¡a AZwajU em{_b h¡, Omo {dÎmr` {ddaUmo§ H$mo H$nQ `m presentation of the financial statement that give a true and fair Ìw{Q, VmpËdH A`WmW© go _wº, ghr Ed§ {Zînj pñW{V Xem©Vo hwE ~ZmZo Ed§ view and are free from material misstatement, whether due to àñVw{V hoVw Cn`moJr h¡& fraud or error. In preparing the financial statements, management is

{dÎmr` {ddaUmo§ H mo V¡`ma H aVo hwE dV©_mZ pñW{V _o§ Mmby ahZo H r H§ nZr H$s responsible for assessing the Company’s ability to continue as j_Vm H m AmH bZ H aZo, Mmby ahZo go g§~§{YV _wÔo H$m `Wm bmJy àH$QZ Ed§ a going concern, disclosing, as applicable, matters related to boIm§H Z H$s Mmby à{HŒ `m Ho BñVo_mb Ho {bE à~§YZ CÎmaXm`r h¡ O~ VH {H going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or

à~§YZ Ho nmg H§$nZr H$mo n{ag_m{nV H$aZo `m CgH m n{aMmbZ ~§X H$aZo `m to cease operations, or has no realistic alternative but to do so. BgHo Abmdm H$moB© ì`mdhm{aH {dH ën Zht hmo& The Board of Directors is also responsible for overseeing the {ZXoeH _§Sb H§ nZr H r {dÎmr` {anmoqQ©J à{HŒ `m H r XoIaoI Ho {bE ^r company’s financial reporting process. CÎmaXm`r h¡& Auditor’s Responsibility for the Audit of the Financial {dÎmr` {ddaUAmo§ Ho boImnarjm hoVw boImnarjH$m| H$m CÎmaXm{`Ëd Statements Our objectives are to obtain reasonable assurance about whether h_mam CÎmaXm{`Ëd AnZr boImnarjm Ho AmYma na BZ {dÎmr` {ddaUmo§ Ho g§~§Y the financial statements as a whole are free from material _o§ AnZm A{^_V ì`º H aZm h¡ Am¡a {dÎmr` {ddaU Ho ~mao _o§ C{MV AmœmgZ misstatement, whether due to fraud or error, and to issue an XoZm h¡ {H g§nyU© {dÎmr` {ddaU H$nQ Am¡a Ìw{Q _wº h¡& `h EH CÀM ñVar` auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit

AmœmgZ h¡, bo{H Z `h Jma§Qr Zht h¡ {H EgE Ho AZwgma {H `o JE boImnarjm conducted in accordance with SAs will always detect a material Ho Ûmam h_oem Jb{V`mo§ H m nVm Mb OmEJm& JbV {ddaUr YmoImY‹Sr `m Ìw{Q go misstatement when it exists. Misstatements can arise from fraud V¡`ma hmo gH Vr h¡ Am¡a `{X, Cn`moJH Vm© ì`{º$JV `m g_JŒên go, BZ {dÎmr` or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the

{ddaUmo§ Ho AmYma na Am{W©H {ZU©`mo§ H mo à^m{dV H aZo H$s Anojm H aVm h¡ , economic decisions of users taken on the basis of these financial Vmo `h Am{W©H {ZU©`mo§ H$mo à^m{dV H$aZo dmbr EH gm_JŒr h¡& statements.

Report on Other Legal and Regulatory Requirements AÝ` {d{YH Ed§ {d{Z`m_H AnojmAmo§ na {anmoQ© As required by the Companies (Auditor’s Report) Order, 2016 H§$nZr A{Y{Z`_ 2013 H$s Ymam 143 Ho CnIÊS> (11) Ho AZwgma ^maV (“the Order”), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies 201 Ho H|$Ð gaH$ma Ûmam Omar H§$nZr (boIm-narjH$m| H$s {anmoQ©) AmXoe, 6 Act, 2013, we give in the “Annexure A” a statement on the (""AmXoe'') Ho AZwgma h_ Cº AmXoe Ho g§~§{YV A§e H$mo n¡am 3 Am¡a 4 _o§ matters specified in paragraphs 3 and 4 of the Order, to the {d{Z{X©îQ _m_bmo§ na {ddaU AZw~§Y- E _o§ g§b¾ H$aVo h¢& extent applicable. As required by Section 143(3) of the Act, we report that: A{Y{Z`_ H r Ymam 143 (3) Ûmam Ano{jV AZwgma, h_ {anmoQ© H aVo h¢ {H … We have sought and obtained all the information and h_mar boImnarjm Ho {bE h_mar OmZH mar Am¡a {dœmg Ho AZwgma Amdí`H explanations which to the best of our knowledge and belief were g^r gyMZmE± Ed§ ñnîQrH aUmo§ H$mo h_Zo àmßV {H$`m h¡& necessary for the purposes of our audit. a. In our opinion, proper books of account as required by law H . h_mar am` _o§ Ed§ Cº ~{h`mo§ H$s Om±M go àVrV hmoVm h¡, H§$nZr Zo {d{Y have been kept by the Company so far as it appears from Ûmam Amdí`H C{MV boIm ~{h`m± aIr h¢; our examination of those books. b. The Balance Sheet, the Statement of Profit and Loss and I. Cº {anmoQ© _o§ g_m{hV VwbZ-nÌ Ed§ bm^-hm{Z {ddaU VWm ZH$Xr the Cash Flow Statement dealt with by this Report are in àdmh {ddaU H§ nZr H r boIm ~{h`mo§ go _ob ImVo h¢; agreement with the books of account.

ANNUAL REPORT 2018-19 249 J. h_mar am` _o§, Cnamoº {XE JE {dÎmr` {ddaU A{Y{Z`_ H$s Ymam 133 c. In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 2014 7 H§$nZr {Z`_ gn{RV {Z`_ g{hV g§X{^©V boIm§H Z _mZH mo§ H m of the Act, read with Rule 7 of the Companies (Accounts) nmbZ H aVo h¢& Rules, 2014. K. 31 _mM© 2019 VH {ZXoeH mo§ go àmßV {b{IV Aä`mdoXZmo§ VWm {ZXoeH d. On the basis of the written representations received from st _§Sb Ûmam A{^{b{IV {H E OmZo Ho AmYma na A{Y{Z`_ H r Ymam the directors as on 31 March, 2019 taken on record by the Board of Directors, none of the directors is disqualified as 164 2 ( ) Ho AZwgma {H gr ^r {ZXoeH H mo 31 _mM©, 2019 H r pñW{V Ho on 31st March, 2019 from being appointed as a director in AZwgma {ZXoeH Ho ên _o§ {Z`wº {H E OmZo go A`mo½` Zht Rham`m J`m h¡& terms of Section 164 (2) of the Act. L>. H§$nZr H$s {dÎmr` {anmoqQ©J na Am§V{aH {dÎmr` {Z`§ÌUmo§ H$s n`m©ßVVm Am¡a e. With respect to the adequacy of the internal financial Eogo {Z`§ÌUmo§ Ho à^mdr n{aMmbZ Ho g§~§Y _o§ H¥ n`m AZw~§Y (I) _o§ {XE controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our JE h_mao {anmoQ© H$m g§X^© bo§& separate Report in “Annexure B”. M. H§ nZr {Z`_(boIm narjm VWm boImnarjH ), 2014 Ho {Z`_ 11 Ho f. With respect to the other matters to be included in the AZwgma boImnarjm {anmoQ© _o§ AÝ` _m_bmo§ H mo em{_b H aZo Ho g§~§Y _o§, Auditor’s Report in accordance with Rule 11 of the h_mao {dMma Am¡a h_mar gyMZm Ho AZwgma Am¡a h_o§ {XE JE ñnîQrH aU Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according

Ho AZwgma; to the explanations given to us: i. H§$nZr _o§ {H$gr ^r àH$ma H$m b§{~V _wH$X_m Zht h¡ Omo {dÎmr` i. The Company does not have any pending litigations {ddaU _o§ CZH r {dÎmr` pñW{V H mo à^m{dV H ao§& which would impact its financial position. ii. H§ nZr Ho nmg ì`wËnÞ H$ama g{hV H$moB© ^r XrK© H mbrZ H$ama Zht ii. The Company did not have any long-term contracts h¡ {Oggo ^{dî` _o§ {H gr ^r àH$ma H$s Am{W©H hm{Z H$s g§^mdZm including derivative contracts for which there were any Zht h¡& material foreseeable losses. iii. H§$nZr Ûmam {ZdoeH {ejm Am¡a g§ajU {Z{Y _o§ A§VaU H$aZo hoVw iii. There were no amounts which were required to be transferred to the Investor Education and Protection

{ZXo©emo§/Cn {ZXo©emo§ na {anmoQ>© Report on Direction / Sub-Direction A{Y{Z`_ H$s Ymam 143 (5) Ho AZwgma h_Zo {Z`§ÌH Am¡a ^maVr` _hm boIm As required by Section 143(5) of the Act, we give in Annexure C narjH Ûmam Omar {ZXo©emo§/Cn {ZXo©emo§ na EH {ddaU AZw~§Y (J) _o§ {X`m h¡& a statement on the direction/sub-direction issued by the Comptroller and Auditor General of India. AÝ` _m_bo Other Matter 31 03 2018 . . H$mo g_mßV df© Ho {bE H$mn© ~¢H {gŠ`mo{aQr {b{_QoS Ho The financial statements of CoprBank Securities Limited for the {dÎmr` {ddaU H$mo AÝ` boIm narjH go boImnar{jV H$am`m J`m {OgZo Year ended 31st March, 2018 were audited by another auditor `Wm 31.03.2018 Ho Cg {ddaU Ho ~mao _o§ Ag§emo{YV _V àH Q {H `m Am¡a who express an unmodified opinion on those statements as at h_Zo Cgr boImnar{jV {ddaU Ho AmYma na `Wm 01.04.2018 Ho ewéAmVr 31st March, 2018 and we have relied on the opening balances as eof na ^amogm {H `m & on 1st April, 2018 based on those audited financial statements. H¥$Vo ^yQ>m emh EÊS H§ . EbEbnr For Bhuta Shah & Co. LLP gZXr boImH ma Chartered Accountants \$_© n§OrH$aU g§. 101474W / W100100 Firm Registration No. 101474W / W100100 AVwb Jmbm Atul Gala gmÂmoXma Partner gXñ`Vm g§. 048650 Membership No. 048650 ñWmZ : _w§~B© Place : Mumbai {XZm§H : 10 _B©, 2019 Date : 10th May, 2019

250 AZw~§Y E ANNEXURE A

31 _mM©, 2019 H$mo g_mßV df© hoVw {dÎmr` {ddaUmo§ na g_{XZm§{H V To Independent Auditors’ Report of even date on the financial {anmoQ© na ñdV§Ì boIm narjH$m| H$s {anmoQ© ""AÝ` {d{YH Am¡a {d{Z`m_H statements for the year ended 31 March, 2019 referred to in paragraph 1 under the heading of “Report on Other Legal and Amdí`H VmAmo§ na {anmoQ©'' Ho A§VJ©V AZwÀNoX 1 _o§ g§X{^©V h¡& Regulatory Requirements”. i) BgHo ñWmB© AmpñV`mo§ Ho g§~§Y _o§ i) In respect of its fixed assets: a. The Company has maintained proper records H . H§$nZr _o§ {aH mS© H m C{MV AZwajU {H `m h¡, pñWa AmpñV`mo§ H m showing full particulars, including quantitative JwUmË_H {ddaU Am¡a pñW{V H mo Xem©`m h¡& details and situation of fixed assets. I. MaUdma ê$n go g^r AmBQ_mo§ H$mo H$da H$aVo hwE H§$nZr Ûmam b. The Company has a program of verification of fixed ha VrZ df© Ho Xm¡amZ à~§YZ Ûmam pñWa AmpñV`mo§ H$m ^m¡{VH assets to cover all the items in a phased manner over a period of three years which, in our opinion,

gË`mnZ {H `m OmVm h¡, Omo {H h_mao _V go Eogo AmpñV`mo§ Ho is reasonable having regard to the size of the AmH ma Am¡a ñdên Ho {bE n`m©ßV h¡& Bg H m`©HŒ _ Ho A§VJ©V, Company and the nature of its assets. Pursuant to df© Ho Xm¡amZ à~§YZ Ûmam pñWa AmpñV`mo§ H$s ^m¡{VH Om§M H$s the programme, certain fixed assets were physically JB©& h_o§ {X`o JE ñnîQrH aU Am¡a gyMZm Ho AZwgma Eogo gË`mnZ verified by the management during the year. According to the information and explanations

na à~§YZ Ûmam Cg {aH mS© Am¡a ^m¡{VH Om§M _o§ H$moB© {dg§J{V given to us no material discrepancies were noticed Zht nmB© JB©& on such verification. J. h_o§ Xr JB© gyMZm Am¡a ñnîQrH$aU Ed§ h_mao Ûmam H§$nZr Ho$ [aH$mS>© c. According to the information and explanations given to us and on the basis of our examination H$s Om°§M Ho$ AmYma na H§$nZr Ho nmg BgHo$ AMb AmpñV of records of the Company, the Company does AZwgyMr _| H$moB© AMb g§n{Îm Zht h¡ Am¡a Bg{bE H§$nZr Ho Zm_ not have any immovable property in its fixed asset _o§ ñdËd{dboI Ho Om§M H$s Amdí`H Vm Zht h¡& schedule and hence verification of title deeds being held in the name of the Company does not arise. ii) BgHo BZdo§QarµO Ho g§~§Y _o§: ii) In respect of its inventories: H§$nZr O_mAmo§ Ho à_mUnÌ H$m ì`dhma H$aVr h¡ Am¡a à{V^y{V`mo§ The Company is dealing in certificate of deposits and interest bearing securities and equity shares which are H$m ã`mO Sr_oQo{abmBO àmén _o§ hmoVm h¡& VXZwgma Eogo O_m in dematerialized form. Accordingly the question of à_mUnÌmo§ `m à{V^y{V`m| H$s ^m¡{VH Om§M H$s Amdí`H Vm Zht physical verification of such certificate of deposits or h¡& BZdo§Q{a`mo§ Ho [aH$mS>© Ho h_mao ñnîQrH aU Ho AmYma na, h_mam securities does not arise. Further, on the basis of our examination of the records of inventories, we are of A{^_V `h h¡ {H H§$nZr BZdo§Qar H$m C{MV {aH$mS© aIVr h¡& the opinion that the Company is maintaining proper records of inventories. iii) H§$nZr Ho {ZXoeH mo§ Ûmam h_o§ {XE JE ñnîQrH aU Ho AZwgma H§$nZr iii) As explained to us, the directors of the Company are H$mnmo©aoeZ ~¢H H$s Zm{_Vr h¡ Am¡a H§$nZr H$s Ymam 189 Ho VhV nominees of the Corporation Bank and are not to be g§~§{YV `m {hVm{YH mar Zht h¡& H§ nZr {H gr ^r H§ nZr, \ _©, regarded as concerned or interested under section 189 gr{_V Xo`Vm gmÂmoXmar `m A{Y{Z`_ H$s Ymam 189 _o§ n§OrH¥ V of the Act. The Company has not granted loans, secured or unsecured, to companies, firms, Limited Liability

AÝ` nm{Q©`mo§ H$mo gwa{jV `m Agwa{jV G$U àXmZ Zht H aVr h¡& Partnerships or other parties covered in the register Bg{bE AmXoe Ho$ I§S 3(iii) Ho VhV [anmo{Q>ªJ H$s Amdí`H Vm maintained under section 189 of the Act. Accordingly, Zht h¡& the provisions of Clause (iii) of Para 3 of the Order are not applicable to the Company. iv) h_mao {dMma go Am¡a h_o§ XrE JE gyMZmAmo§ Ed§ ñnîQrH aUm| Ho AmYma iv) In our opinion and according to the information and na H§$nZr Ymam 185 Ed§ 186 Ho VhV H moB© G$U `m A{JŒ_ _§Oya Zht explanations given to us, The Company has not granted

ANNUAL REPORT 2018-19 251 H$aVr h¡, H moB© {Zdoe Zht H aVr h¡, H moB© Jma§Qr `m à{V^y{V àXmZ Zht any loans or advances, provided any guarantee or security under Section 185 and 186, except investment, H$aVr h¢, CZ {Zdoem| Ho$ Abmdm Omo Ymam 186 Ho$ AZwnmbZ which is in compliance with Section 186. _| h¡& v) According to information and explanations given to v) h_o§ Xr JB© gyMZm Am¡a ñnîQrH aU Ho AmYma na H§ nZr Zo A{Y{Z`_ us, the Company has not accepted any deposits from H$s Ymam 73 go 76 Ed§ BgHo AÝVJ©V ~Zm`o J`o {Z`_ Ho AZwgma the public as per provisions of Section 73 to 76 of the Act and rules framed thereunder, and accordingly, the

OZVm go H moB© O_m ñdrH¥ V Zht H r h¡ Am¡a VXZwgma AmXoe Ho nmam provisions of Clause (v) of Para 3 of the Order are not 3 Ho Cn~§Y(v) H§$nZr na bmJy Zht hmo§Jo& applicable to the Company. vi) H|$Ð gaH$ma Zo H§$nZr Ho {H$gr ^r CËnmX Ho {bE A{Y{Z`_ H$s Ymam vi) The maintenance of cost records has not been specified 148 Ho$ CnYmam (1) Ho A§VJ©V {aH mS© Ho AZwajU hoVw AZwajU by the Central Government under sub-section (1) of Section 148 of the Act and accordingly, provisions of 3 ewëH {ZYm©{aV Zht {H `m h¡& VXZwgma AmXoe H$m IÊS H$m Cn~§Y Clause (vi) of Para 3 of the Order are not applicable to (vi) H§$nZr na bmJy Zht h¡& the Company. vii) d¡Ym{ZH ~H m`m Ho g§~§Y _o§ vii) In respect of statutory dues: H . h_o§ Xr JB© gyMZm Am¡a ñnîQrH aU Ho AZwgma Am¡a h_mao Ûmam a. According to information and explanations given to us and on the basis of our examination of records H§ nZr Ho [aH$mS>© H$s Om§M H aZo Ho ~mX h_mam _V h¡ {H H§$nZr of the Company, the Company has generally {Z{d©dmX d¡Úm{ZH ~H$m`m g{hV Am`H$a, OrEgQr, gog been regular in depositing undisputed statutory VWm Xygao bmJy d¡Ym{ZH ~H$m`m H$mo {Z`{_V ê$n go A{YH¥$V dues including Income-tax, GST, Cess and any other relevant statutory dues with the appropriate àmYrH m{a`mo§ Ho nmg O_m H$a ahr h¡ & h_| Xr JB© ñnï>rH$aU Ho$ authorities. According to the information and AZwgma `Wm 31 _mM© 2019 Ho$ Xo` {V{W go N: _hrZo go A{YH explanations given to us, there were no arrears of H$s Ad{Y Ho {bE H moB© d¡Ym{ZH ~H m`m Xo` Zht h¡& statutory dues as on 31 March, 2019 for a period of more than six months from the date they became

H§$nZr Ho {aH mS© H$s Om§M H aZo Ho ~mX Am`H a, OrEgQr, gog b. According to the information and explanations VWm AÝ` H moB© ^r d¡Ym{ZH ~H m`m Zht h¡, {OgH mo {ddmX Ho given to us, there are no dues of income tax, GST H$maU O_m Zht {H `m J`m h¡& and any other relevant statutory dues which have not been deposited on account of any dispute. viii) h_mao _V go Am¡a h_o§ Xr JB© gyMZm Am¡a ñnîQrH aU Ho AZwgma H§ nZr viii) In our opinion and according to the information Ûmam H moB© G$U Zht {b`m J`m h¡ AWdm {H gr {dÎmr` g§ñWm, ~¢H , and explanations given to us, the Company does not gaH ma H mo H moB© CYma Xo` Zht h¡ `m {S~o§MaYmaH H mo H moB© ~H m`m have any loans or borrowings payable to any financial Zht h¡& institution, bank, Government or dues to debenture holders. ix) h_mao boImnarjm à{H«$`m VWm à~§YZ Ûmam h_o§ Xr JB© gyMZm Am¡a ix) Based on our audit procedures and on the information ñnîQrH aU Ho AmYma na df© Ho Xm¡amZ H§$nZr Zo B{Z{e`b npãbH and explanations given to us by the management, the Am°\ a `m {H gr Am¡a npãbH Am°\ a (G$U {bIV g{hV) Ho _mÜ`_ Company has not raised moneys by way of initial go H moB© YZ g§JŒh Zht {H `m h¡& public offer or further public offer (including debt instruments) during the year. x) h_mao Ûmam H r JB© boImnarjm à{H«$`m VWm à~§YZ Ûmam h_o§ Xr JB© x) Based on the audit procedures performed and based gyMZm Am¡a ñnîQrH aU Ho AmYma na h_ {anmoQ© H$aVo h¢ {H H§$nZr Ho on the information and explanations given to us by the Ûmam `m H§$nZr _o§ BgHo A{YH m{a`mo§ `m H _©Mm{a`mo§ Ûmam df© Ho Xm¡amZ management, we report that no fraud by the Company H$moB© ^r H$nQ> {H$`m OmZm g§kmZ _o§ Zht Am`m h¡ Am¡a Z hr {anmoQ© or on the Company by its officers or employees has been noticed or reported during the year. {H `m J`m h¡ &

252 xi) H$s JB© boImnarjm à{HŒ `m Ho AmYma na Ed§ à~§YZ Ûmam h_o§ Xr xi) Based on the audit procedures performed and the information and explanations given to us by the JB© gyMZm Ed§ ñnîQrH aU Ho AmYma na A{Y{Z`_ H$s AZwgy{MV management, the managerial remuneration has been Ho gmW gn{RV Ymam 197 Ho àmdYmZmo§ Ho Ûmam AZw_mo{XV paid or provided in accordance with the requisite _¢SoQ Ho AZwgaU _o§ à~§YH r` nm{al{_H H m ^wJVmZ {H `m approvals mandated by the provisions of Section 197 J`m h¡& read with Schedule V to the Act. xii) In our opinion and according to the information and xii) h_mao _V Ed§ h_o§ Xr JB© gyMZm Ed§ ñnîQrH aU Ho AZwgma H§$nZr explanations given to us, the Company is not a nidhi H$moB© {Z{Y H§$nZr Zht h¡& VXZwgma AmXoe Ho n¡am. 3 Ho I§S (xii) Ho Company. Accordingly, the provisions of Clause (xii) of àmdYmZ H§$nZr Ho {bE bmJy Zht h¡& Para 3 of the Order are not applicable to the Company. xiii) According to the information and explanations given xiii) h_o§ Xr JB© gyMZm Ed§ ñnîQrH aU Ho AZwgma Am¡a h_mao Ûmam H§ nZr to us and based on our examination of the records of Ho {aH m°S© Ho narjU Ho AmYma na H§ nZr Zo g§~§{YV nmQr© boZXoZ Ho the Company, transactions with the related parties are g§~§Y _o§ `Wm bmJy A{Y{Z`_ H r Ymam 177 Am¡a 188 Ho àmdYmZmo§ in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have

H m AZwnmbZ {H `m h¡ VWm Eogo boZXoZmo§ Ho {ddaUmo§ H mo boIm_mZH been disclosed in the financial statements as required by H r Amdí`H VmZwgma {dÎmr` {ddaU _o§ àH QZ {H `m h¡& the applicable accounting standards.

xiv) h_o§ Xr JB© gyMZm Ed§ ñnîQrH$aUmo§ Ho AZwgma Am¡a h_mao Ûmam H§ nZr xiv) According to the information and explanations given to us and based on our examination of the records of the

Ho {aH m°S© Ho narjU Ho AmYma na H§ nZr Zo df© Ho Xm¡amZ eo`amo§ Company, the Company has not made any preferential `m nyU©V: AWdm Am§{eH én go g§n{adV©Zr` {S~o§Mamo§ H m H moB© allotment or private placement of shares or fully or A{Y_mZr Am~§QZ `m {ZOr ßbog_o§Q Zht {H `m h¡& partly convertible debentures during the year. xv) According to the information and explanations given to xv) h_o§ Xr JB© gyMZm Ed§ ñnîQrH aU Ho AZwgma Am¡a h_mao Ûmam H§ nZr Ho us and based on our examination of the records of the {aH m°S© Ho narjU Ho AmYma na H§ nZr Zo {ZXoeH mo§ `m CZgo g§~§{YV Company, the Company has not entered into non-cash ì`{º`mo§ Ho gmW H moB© J¡a ZH Xr boZ-XoZ Zht {H `m h¡& VXZwgma, transactions with directors or persons connected with the directors. Accordingly, provisions of Clause (xv) of AmXoe Ho n¡am 3 Ho I§S (xv) H m àmdYmZ H§ nZr na bmJy Zht h¡& Para 3 of the Order are not applicable to the Company. xvi) ^maVr` {a‹Od© ~¢H A{Y{Z`_ 1934 H$s Ymam 45-IA Ho VhV xvi) The Company is not required to be registered under H§$nZr Ho n§OrH$aU H$s Amdí`H$Vm Zht h¡ Am¡a VXZwgma, CZHo section 45-IA of the Reserve Bank of India Act, 1934 and accordingly, question of obtaining registration

n§OrH aU g§»`m àmßV H$aZo H r Amdí`H Vm Zht h¡& thereof does not arise.

H¥$Vo ^yQ>m emh EÊS H§ . EbEbnr For Bhuta Shah & Co. LLP gZXr boImH ma Chartered Accountants E\ AmaEZ. 101474W / W100100 Firm Registration No. 101474W / W100100

AVwb Jmbm Atul Gala gmÂmoXma Partner gXñ`Vm g§. 048650 Membership No. 048650

ANNUAL REPORT 2018-19 253 AZw~§Y ~r ANNEXURE B g_mZ {XZm§H H$s h_mar ñdV§Ì boImnarjH mo§ H r {anmoQ© Ho AZwÀNoX 2 To Independent Auditors’ Report of even date referred to (E\ ) _o§ ""AÝ` {d{YH Am¡a {Z`m_H Amdí`H$VmAm| {anmoQ©'' erf©H in paragraph 2(f) under the heading of “Report on Other Legal and Regulatory Requirements” Ho ê$n _o§ g§X{^©V h¡ & Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 H§$nZr A{Y{Z`_ 2013 (A{Y{Z`_) H r Ymam 143 H r CnYmam 3 H$s (“the Act”) eV© (i) Ho AÝVJ©V Am§V{aH {dÎmr` {Z`§ÌU na {anmoQ© We have audited the internal financial controls over financial h_Zo H$mn©~¢H$ {gŠ`w{aQrµO {b{_QoS (H§$nZr) H$s 31 _mM©, 2019 H$mo reporting of CorpBank Securities Limited (“the Company”) {dÎmr` {anmo{Q>ªJ _o§ Am§V{aH {dÎmr` {Z`§ÌU Ho g§~§Y _o§ H§$nZr Ho Cg VmarI as of 31 March, 2019 in conjunction with our audit of the H$mo g_mßV df© na EH b {dÎmr` {ddaUmo§ Ho g§`moOZ _o§ boImnarjm {H `m & financial statements of the Company for the period ended on that date. Am§V{aH {dÎmr` {Z`§ÌU _o§ à~§YZ-dJ© H m CÎmaXm{`Ëd Management’s Responsibility for Internal Financial Controls H§$nZr H$m à~§YZ H§$nZr Ûmam ñWm{nV {dÎmr` {ddaU Ho Am§V{aH {Z`§ÌU The Company’s management is responsible for establishing _mZX§S na AmYm{aV ^maVr` MmQ©S© EH mC§Qo§Q B§ñQrQ²æyQ (AmB©grEAmB©) Ûmam and maintaining internal financial controls based on the {dÎmr` {ddaU Ho Am§V{aH {Z`§ÌU H$s boIm-narjm na Omar {Xem-{ZXo©emo§ internal control over financial reporting criteria established H$mo Am§V{aH {Z`§ÌU Ho Amdí`H KQH Ho Vm¡a na boH a Am§V{aH {dÎmr` by the Company considering the essential components of {Z`§ÌU ñWm{nV H$aZo Am¡a ~ZmE aIZo Ho {bE CÎmaXm`r h¡ & H§$nZr EŠQ Ho internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued AÝVJ©V BZ Xm{`Ëdmo§ _o§ Amdí`H h¡ {SOmBZ, ì`mnma Ho gwMmé Vm¡a na Omar by the Institute of Chartered Accountants of India (‘ICAI’). ahZo hoVw aI aImd Am¡a n`m©ßV Am§V{aH {Z`§ÌUmo§ H m H m`m©Ýd`Z, H§ nZr H$s These responsibilities include the design, implementation and Zr{V`mo§ H m nmbZ, BgH r AmpñV`mo§ H mo ~MmZm, H nQ Am¡a Ìw{Q`mo§ H r nhMmZ maintenance of adequate internal financial controls that were Ed§ BgH r amoH Wm_, boIm {aH mS© Ho nyU© Am¡a Ìw{Qa{hV hmoZo Am¡a ghr g_` operating effectively for ensuring the orderly and efficient na {dœgZr` {dÎmr` gyMZm V¡`ma H aZm em{_b h¡& conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness boIm-narjH mo§ H m CÎmaXm{`Ëd of the accounting records, and the timely preparation h_mam CÎmaXm{`Ëd AnZr boImnarjm Ho AmYma na BZ {dÎmr` gyMZm Ho of reliable financial information, as required under the Act. {df` _o§ H§$nZr Ho Am§V{aH {dÎmr` {Z`§ÌU Ho g§~§Y _o§ AnZm A{^_V ì`º H$aZm h¡& h_Zo boImnarjm AmB©grEAmB© Ûmam Omar Am¡a H§$nZr EŠQ H$s Auditors’ Responsibility Ymam 143 (10) _o§ _mZo JE {dÎmr` {ddaU na Am§V{aH {dÎmr` {Z`§ÌU Ho Our responsibility is to express an opinion on the Company’s {Xem-{ZXo©e ZmoQ Am¡a boImnarjm Ho _mZH , Am§V{aH {dÎmr` {Z`§ÌU H$s internal financial controls over financial reporting based on boIm-narjm na bmJy hmoZo H r gr_m VH ({Xem-{ZXo©e ZmoQ) XmoZmo§ hr Am§V{aH our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over {dÎmr` {Z`§ÌU H r boIm-narjm na bmJy hmoVo h¢ Am¡a XmoZmo§ hr ^maVr` MmQ©S© Financial Reporting (the “Guidance Note”) and the Standards EH mC§Qo§Q B§ñQrQ²æyQ (AmB©grEAmB©) Ûmam Omar {H E JE h¢ & ñdrH¥ V {dÎmr` on Auditing, issued by ICAI and deemed to be prescribed under {ddaU Ho Am§V{aH {Z`§ÌU H$s boIm-narjm VWm {ZYm©{aV A{Y{Z`_ section 143 (10) of the Act, to the extent applicable to an audit of Ho àmdYmZmo§ Ed§ BgHo A§VJ©V {Z{_©V {Z`_mo§ Ho AZwgma boIm§H$Z Am¡a internal financial controls, both applicable to an audit of Internal Financial Controls and, issued by the Institute of Chartered boImnarjm _mZH mo§ Am¡a boImnarjm {anmoQmoª _o§ em{_b H aZo hoVw Oê$ar {df`mo§ Accountants of India. Those Standards and the Guidance Note H$mo Ü`mZ _o§ aIm h¡& BZ _mZH$m| Am¡a {Xem-{ZXo©e Ho {bE `h Amdí`H h¡ require that we comply with ethical requirements and plan and {H h_ Z¡{VH AnojmAmo§ H$m nmbZ H$ao§ Am¡a Bg ~mao _o§ C{MV AmœmgZ àmßV perform the audit to obtain reasonable assurance about whether H aZo hoVw `moOZm ~ZmH a boImnarjm H$m H m`© g§nÞ H$ao§ {H {dÎmr` {ddaUmo§ adequate internal financial controls over financial reporting _o§ n`m©ßV Am§V{aH {dÎmr` {Z`§ÌU h¡ Am¡a `h {Z`§ÌU g^r gmú`mo§ H$s X¥pîQ was established and maintained and if such controls operated effectively in all material respects. go à^mdr ên go ñWm{nV Am¡a n{aMm{bV h¢ &

254 h_mar boIm-narjm _o§ {dÎmr` [anmo{Q>ªJ _o§ Am§V{aH {dÎmr` {Z`§ÌU H$s Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls n`m©ßVVm H$s {ZînmXZ à{H«$`m Am¡a CZH$s n{aMmbmZmË_H à^mderbVm system over financial reporting and their operating effectiveness. em{_b h¡ Ÿ& {dÎmr` [anmo{Q>ªJ _o§ Am§V{aH {dÎmr` {Z`§ÌU H$s h_mar Our audit of internal financial controls over financial reporting boImnarjm _o§ dñVwJV H _Omoar Ho ahZo go hmoZo dmbo Omo{I_ H$m Am§H bZ included obtaining an understanding of internal financial H a Am¡a Am§H {bV Omo{I_ na AmYm{aV Am§V{aH {Z`§ÌU H$s n{aMmbZmË_H controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design à^mderbVm H$m narjU Am¡a _yë`m§H Z {dÎmr` [anmo{Q>ªJ _o§ Am§V{aH {dÎmr` and operating effectiveness of internal control based on the {Z`§ÌU na àmßV gh_{V em{_b h¡ & MwZr JB© à{HŒ `m boImnarjH Ho assessed risk. The procedures selected depend on the auditor’s {ZU©` na , {dÎmr` {ddaUmo§ Ho dñVwJV AWmW© {ddaU Omo{I_, H nQ `m Ìw{Q judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud Ho H$maU go K{QV hmoZo dmbo Omo{I_ H$mo em{_b H aVo hwE, {Z^©a H$aVr h¡ & or error. h_ {dœmg H$aVo h¢ h_mao Ûmam àmßV boIm gmú`, {dÎmr` {anmoqQ©J _o§ H§$nZr We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ho Am§V{aH {dÎmr` {Z`§ÌU na h_mao boImnarjm A{^_V XoZo H m n`m©ßV Company’s internal financial controls system over financial Am¡a Cn`wº AmYma h¢& reporting. Meaning of Internal Financial Controls over Financial {dÎmr` {anmoqQ©J _o§ Am§V{aH {dÎmr` {Z`§ÌU H$m AW© Reporting A company’s internal financial control over financial reporting is {H$gr H§$nZr H$m {dÎmr` [anmo{Q>ªJ _o§ Am§V{aH {dÎmr` {Z`§ÌU EH à{HŒ `m h¡ a process designed to provide reasonable assurance regarding the Omo Bg àH ma V¡`ma H r JB© h¡ {H {dÎmr` [anmo{Q>ªJ H$s {dœZr`Vm na `Wmo{MV reliability of financial reporting and the preparation of financial AmœmgZ àXmZ H ao Am¡a dmø CÔoí`mo§ hoVw {dÎmr` {ddaU gm_mÝ`V… ñdrH¥ V statements for external purposes in accordance with generally boIm {gÕm§Vmo§ Ho AZwgma V¡`ma {H E JE hmo§& {H gr H§ nZr Ho {dÎmr` {anmoqQ©J accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and na Am§V{aH {dÎmr` {Z`§ÌU _o§ Omo Zr{V Am¡a à{HŒ `m em{_b h¢ dh h¢- (1) procedures that (1) pertain to the maintenance of records that, {aH mS© H$mo ~ZmE aIZo Ho g§~§Y _o§ O¡go `Wmo{MV {ddaU, ^br^m§{V Am¡a in reasonable detail, accurately and fairly reflect the transactions ñnîQ Vm¡a na H§ nZr H$s AmpñV`mo§ H mo g_mßV H aZo VWm boZ XoZ H mo {XIm`m and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary OmZm (2) `h `Wmo{MV {dœmg {XbmZm {H gm_mÝ`V… àM{bV boIm {gÕm§Vmo§ to permit preparation of financial statements in accordance Ho AZwgma {dÎmr` {ddaU V¡`ma H aZo hoVw AZw_{V XoZo Ho {bE boZ XoZmo§ H mo with generally accepted accounting principles, and that receipts Amdí`H Vm¡a na {aH$mS>© {H `m J`m hmo Am¡a H§$nZr H$s àmpßV`m± Am¡a ì`` and expenditures of the Company are being made only in accordance with authorisations of management and directors of Ho$db H§$nZr Ho à~§YZ Am¡a {ZXoeH mo§ Ho A{YH ma go {H E JE hmo§ Am¡a (3) the Company; and (3) provide reasonable assurance regarding H§$nZr H r AmpñV Ho Ad¡Y A{YJŒhU,Cn`moJ Am¡a g_mßV H$aZm, Omo {H prevention or timely detection of unauthorised acquisition, use, {dÎmr` {ddaUmo§ na dñVwJV à^md Smb gH$Vm h¡, Ho g§~§Y _o§ ~Mmd Am¡a or disposition of the company’s assets that could have a material effect on the financial statements. BZH r g_` na nhMmZ Ho {bE `Wmo{MV AmœmgZ XoZm & Inherent Limitations of Internal Financial Controls Over Financial Reporting {dÎmr` {anmoqQ©J _o§ Am§V{aH {dÎmr` {Z`§ÌU H r Am§V{aH gr_mE± Because of the inherent limitations of internal financial controls H nQ Ho H$maU AWdm à~§YZ Ûmam {Z`§ÌUmo§ H$s AdhobZm H mo em{_b H aVo over financial reporting, including the possibility of collusion or improper management override of controls, material hwE {dÎmr` [anmo{Q>ªJ _o§ Am§V{aH {dÎmr` {Z`§ÌU _o§ {Z{hV gr_mAmo§ H$s dOh misstatements due to error or fraud may occur and not be go H nQ `m Ìw{Qde hmoZo dmbo dñVwJV AWmW© {ddaU K{QV hmo gH Vo h¢ Am¡a detected. Also, projections of any evaluation of the internal Omo nH$‹S _o§ Zht AmVm h¢ & {dÎmr` [anmo{Q>ªJ _o§ Am§V{aH {dÎmr` {Z`§ÌU H$m financial controls over financial reporting to future periods are subject to the risk that the internal financial control over ^{dî` Ho dfmoª Ho {bE _yë`m§H Z H m AZw_mZ bJmZo _o§ `h ^r Omo{I_ h¡ {H financial reporting may become inadequate because of changes {dÎmr` [anmo{Q>ªJ _o§ Am§V{aH {dÎmr` {Z`§ÌU, pñW{V`mo§ _o§ n{adV©Z go AWdm in conditions, or that the degree of compliance with the policies Zr{V Am¡a à{HŒ `m Ho {JaVo AZwnmbZ ñVa Ho H$maU, An`m©ßV hmo gH Vr h¡ & or procedures may deteriorate.

ANNUAL REPORT 2018-19 255 A{^_V Opinion h_mar am` _o§, H§$nZr Ho nmg, g^r nhbwAmo§ _o§, {dÎmr` [anmo{Q>ªJ _o§ n`m©ßV In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial Am§V{aH {dÎmr` {Z`§ÌU ì`dñWm h¡ Am¡a Eogo Am§V{aH {dÎmr` {Z`§ÌUmo§ H mo reporting and such internal financial controls over financial ^maVr` gZXr boImH ma g§ñWmZ Ûmam {dÎmr` [anmo{Q>ªJ na Am§V{aH {dÎmr` reporting were operating effectively as at 31 March, 2019, {Z`§ÌU H$s boIm narjm na _mJ©Xe©Z {QßnUr _o§ Cp„{IV Am§V{aH {Z`§ÌU Ho based on the internal control over financial reporting criteria established by the Company considering the essential Amdí`H KQH mo§ _o§ H§$nZr Ûmam ñWm{nV {dÎmr` [anmo{Q>ªJ _mZX§S na Am§V{aH components of internal control stated in the Guidance Note on ì`dñWm Ho AmYma na `Wm 31 _mM©,2019 H mo à^mdr ê$n go n{aMm{bV Audit of Internal Financial Controls Over Financial Reporting {H `m J`m h¡& issued by the Institute of Chartered Accountants of India.

H¥$Vo ^yQ>m emh EÊS H§ .EbEbnr For Bhuta Shah & Co. LLP gZXr boImH ma Chartered Accountants Firm Registration No. 101474W / W100100 \$_© n§OrH$aU g§. 101474W / W100100

AVwb Jmbm Atul Gala gmÂmoXma Partner Membership No. 048650 gXñ`Vm g§. 048650

256 AZw~§Y J ANNEXURE C

""AÝ` {d{YH Am¡a {d{Z`m_H Amdí`VmAmo§ na [anmoQ>©'' erf© Ho VhV To Independent Auditors’ Report of even date referred to {ZXoemo§/Cn-{ZXoemo§ _o§ g§X{^©V ñdV§Ì boImnarjH mo§ H$s g_{XZm§{H V in report on direction / sub-direction under the heading of {anmoQ© Ho {bE “Report on Other Legal and Regulatory Requirements” Based on the verification of records of the Company and based H§$nZr Ho [aH$m°S>© Ho gË`mnZ Ho AmYma na Am¡a h_o§ Xr JB© OmZH$mar Ed§ on information and explanation given to us, we give below a

ñnîQrH aU Ho AmYma na, h_ ^maV Ho {Z`§ÌH Am¡a _hmboIm narjH Ûmam report on the directions issued by the Comptroller and Auditor- 143(5) A{Y{Z`_ H r Ymam Ho AZwgma Omar {H E JE {ZXo©emo§ na {ZåZ{b{IV General of India in terms of Section 143(5) of the Act. {anmoQ© Xo aho h¢& Š`m `{X H§$nZr Ho nmg AmB©Qr àUmbr Ho _mÜ`_ go g^r boIm§H r` boZXoZ H mo g§gm{YV H aZo hm± H$s nÕ{V h¡? h_o§ Xr JB© gyMZm Am¡a ñnîQrH aU Ho AZwgma, AmB©Qr {gñQ_ `{X hm±, Vmo AmB©Qr àUmbr Ho ~mha boIm§H r` boZXoZ Ho àg§ñH aU H m {dÎmr` n{aUm_, `{X Ho ~mha H moB© ^r boIm§H r` boZXoZ Zht hmo ahm h¡& H moB© hmo, Ho gmW ImVmo§ H r àm_m{UH Vm na à^md Ho ~mao _o§ OmZH mar Xo§& Yes Whether the Company has system in place to process all the accounting Yes transactions through IT system? If yes, the implications of processing of accounting transactions outside IT As informed and explained to us, no accounting system on the integrity of the accounts along with the financial implications, transaction takes place outside IT system. if any, may be stated. Š`m H§$nZr Ûmam G$U MwH mZo _o§ Ag_W©Vm Ho H maU G$UXmVm Ûmam H§ nZr Ho {H gr dV©_mZ G$U H$s bmJy Zht nwZgªaMZm `m H$O©©/G$U/ã`mO _o§ NyQ/amBQ Am°\ {H `m J`m h¡ ? Not Applicable `{X hm±, Vmo {dÎmr` à^md Ho ~mao _o§ OmZH mar Xo§& Whether there is any restructuring of an existing loan or cases of waiver/write off of debts /loans/interest etc. made by a lender to the Company due to the Company’s inability to repay the loan? If yes, the financial impact may be stated. Š`m Ho§ Ðr`/amÁ`Á` EOo§{g`mo§ go {deof `moOZmAmo§ Ho {bE àmßV/àmß` {Z{Y`mo§ H m C{MV ê$n go bmJy Zht {hgm~ {H `m h¡/CgHo eVmoª d {Z`_mo§ Ho AZwgma Cn`moJ {H `m J`m h¡? Not Applicable {dMbZ Ho _m_bo gyMr~Õ H ao§& Whether funds received/receivable for specific schemes from central/state agencies were properly accounted for/ utilized as per its term and conditions? List the cases of deviation.

H¥ Vo ^yQ>m emh EÊS H§ .EbEbnr For Bhuta Shah & Co. LLP gZXr boImH ma Chartered Accountants \$_© n§OrH$aU g§. 101474W / W100100 Firm Registration No. 101474W / W100100

AVwb Jmbm Atul Gala gmÂmoXma Partner gXñ`Vm g§. 048650 Membership No. 048650

ANNUAL REPORT 2018-19 257 H$mn©~¢H$ {gŠ`w[aQrµO {b. Corpbank Securities Ltd. 31 _mM©, 2019 H$s pñW{V HŸm VwbZ-nÌ BALANCE SHEET AS AT 31st MARCH, 2019 (` h‹Omam| _|/` in thousands) As on As on Particulars {QßnUr g§. `Wm `Wm {ddaU Note No. 31st March, 2019 31st March, 2018 I. B©{¹ŸQr Ed§ Xo`VmE§ EQUITY AND LIABILITIES 1) eo`aYmaHŸmo§ H$s {Z{Y`m± Shareholder’s funds H a) eo`a ny±Or Share Capital 2 750,000 750,000 I b) Ama{jV {Z{Y`m± Ed§ A{Yeof Reserves & Surplus 3 496,507 419,668 2) Mmby Xo`VmE§ Current liabilities H a) ì`mnma XoZXm{a`m± Trade payables 4 gyú_ Ed§ bKw CÚ_ Micro Enterprises and Small Enterprises – – AÝ` CÚ_ Other Enterprises 3600 1,078 I b) AÝ` Mmby Xo`VmE§ Other current liabilities 5 122 10 HwŸb TOTAL 1,250,228 1,170,756 II. AmpñV`m± ASSETS 1) J¡a-Mmby AmpñV`m± Non-current Assets H a) pñWa AmpñV`m± Fixed assets 6 _yV© AmpñV`m± Tangible Assets 442 694 A_yV© AmpñV`m± Intangible Assets 232 347 674 1,041 I b) J¡a-Mmby {Zdoe Non - Current Investment 7 5,000 5,000 J c) AmñW{JV H a AmpñV`m± Deferred tax assets 8 91 242 K d) XrKm©d{Y G$U Am¡a A{JŒ_ Long - term loans and advances 9 55,884 47,832 2) Mmby AmpñV`m± Current Assets H a) BZdo§Qar Inventories 10 1,139,157 1,040,208 I b) ZH Xr Ed§ ZH$Xr eofam{e Cash & Cash Equivalents 11 48,267 73,299 J c) Aënmd{Y-G$U Ed§ A{JŒ_ Short Term-Loans and Advances 12 778 564 K d) AÝ` Mmby AmpñV`m± Other Current Assets 13 377 2,571 Hw b TOTAL 1,250,228 1,170,756 _hËdnyU© boIm-Zr{V`m± Ed§ boImo§ na {Qßn{U`m± 1 to 28 SIGNIFICANT ACCOUNTING POLICIES & NOTES TO ACCOUNTS h_mar g§b½Z g_{XZm§{HŸV {anmoQ© Ho AZwgma As per our report of even date attached

H¥ŸVo ^yQ>m emh EÊS> H§$. H$mn©~¢H$ {gŠ`w{aQrµO {b{_QoS Ho {ZXoeH _§Sb Ho {bE d CZH r Amoa go For Bhuta Shah & Co. For and on behalf of the Board of Directors of CorpBank Securities Limited gZXr boImHŸma Chartered Accountants nr. dr. ^maVr {~énmj {_lm dr. _wÎmwH¥$îUZ \$_© n§OrH$aU g§. 101474W P. V. Bharathi Birupaksha Mishra V. Muthukrishnan FRN No. 101474W AÜ`j Chairman {ZXoeH Director {ZXoeH Director AVwb Jmbm S>rAmB©EZ DIN 06519925 S>rAmB©EZ DIN 06884225 S>rAmB©EZ DIN 03113886 Atul Gala gmÂmoXma Partner nr. Ho$. AmMm`© Ama. lrYaZ gXñ`Vm g§§. 048650 P. K. Acharya R. Sridharan Membership No. 048650 {ZXoeH Director {ZXoeH Director S>rAmB©EZ DIN 06503668 S>rAmB©EZ DIN 08267185 E. AmB©. Ooåg A. I. James XrnH$ Hw$_ma a§OZ nyU©H$m{bH$ {ZXoeH$ Ed§ H§$nZr g{Md Deepak Kumar Ranjan Place Mumbai Whole time Director & Company gr.E\$.Amo. C.F.O. ñWmZ : _w§~B© Secretary {XZm§H Dated : 10 _B© May, 2019 S>rAmB©EZ DIN 06903375 258 H$mn©~¢H$ {gŠ`w[aQrµO {b. Corpbank Securities Ltd. 31 _mM©, 2019 H$mo g_mßV df© hoVw bm^-hm{Z boIm Statement of Profit and loss for the year ended 31st MARCH, 2019 (` h‹Omam| _|/` in thousands) g_mßV df© g_mßV df© {ddaU Particulars {QßnUr g§. Year ended 31st Year ended 31st Note No. March, 2019 March, 2018 n{aMmbZ go amOñd Revenue from Operation 14 92,890 58,997 AÝ` Am` Other income 15 4,437 8,678 Hw b amOñd Total Revenue 97,327 67,676 ì`` Expenses: H$_©Mmar {hVbm^ ì`` Employee benefit expenses 16 5,229 6,115 _yë`õmg Ed§ n[aemoYZ ì`` Depreciation & amortization expenses 6 368 746 AÝ` ì`` Other Expenses 17 4,875 4,703 Hw b ì`` Total Expenses 10,472 11,564 AndmXmË_H Am¡a AgmYmaU _X Ed§ H$a nyd© bm^ Profit before exceptional and 86,855 56,112 extraordinary items & tax AndmXmË_H _Xo§ Exceptional Items – – AgmYmaU _Xmo§ Am¡a HŸa go nyd© bm^ Profit before extraordinary items and tax 86,855 56,112 AgmYmaU _Xo§ Extraordinary Items – – HŸa nyd© bm^ Profit before tax 86,855 56,112 OmoS>| (KQmE§): HŸa ì`` A dd/(Less) : Tax expenses (1) Am` HŸa Income tax Mmby dfmoª H$m of Current years 24,045 15,601 JV dfmoª H$m of Earlier years -14,181 459 (2) AmñW{JV H$a AmpñV Deferred tax assets 151 -60 Ad{Y hoVw bm^/(hm{Z) Profit / (Loss) for the period 76,839 40,112 à{V eo`a AO©Z: Earning per share: à{V eo`a _yb Am¡a VZyH¥$V AO©Z Basic and Diluted Earnings per share 18 1.02 0.53 h_mar g§b½Z g_{XZm§{HŸV {anmoQ© Ho AZwgma As per our report of even date attached H¥ŸVo ^yQ>m emh EÊS> H§$. H$mn©~¢H$ {gŠ`w{aQrµO {b{_QoS Ho {ZXoeH _§Sb Ho {bE d CZH r Amoa go For Bhuta Shah & Co. For and on behalf of the Board of Directors of CorpBank Securities Limited gZXr boImHŸma Chartered Accountants nr. dr. ^maVr {~énmj {_lm dr. _wÎmwH¥$îUZ \$_© n§OrH$aU g§. 101474W P. V. Bharathi Birupaksha Mishra V. Muthukrishnan FRN No. 101474W AÜ`j Chairman {ZXoeH Director {ZXoeH Director AVwb Jmbm S>rAmB©EZ DIN 06519925 S>rAmB©EZ DIN 06884225 S>rAmB©EZ DIN 03113886 Atul Gala nr. Ho$. AmMm`© Ama. lrYaZ Partner gmÂmoXma P. K. Acharya R. Sridharan 048650 gXñ`Vm g§§. Director Membership No. 048650 {ZXoeH Director {ZXoeH S>rAmB©EZ DIN 06503668 S>rAmB©EZ DIN 08267185 E. AmB©. Ooåg A. I. James XrnH$ Hw$_ma a§OZ nyU©H$m{bH$ {ZXoeH$ Ed§ H§$nZr g{Md Deepak Kumar Ranjan Place Mumbai Whole time Director & Company gr.E\$.Amo. C.F.O. ñWmZ : _w§~B© Secretary {XZm§H Dated : 10 _B© May, 2019 S>rAmB©EZ DIN 06903375 ANNUAL REPORT 2018-19 259

31 _mM©, 2019 VH ZH Xr àdmh {ddaU CASH FLOW STATEMENT AS ON 31ST MARCH, 2019 (` h‹Omam| _o|/` in thousands) 2018-2019 2017-2018 H ) n{aMmbZ {H«$`mH$bmnm| go ZHŸXr àdmh A) CASH FLOW FROM OPERATING ACTIVITIES HŸa Ed§ AgmYmaU _Xmo§ go nyd© {Zdb bm^ 86,855 56,111 Net Profit before tax & Extraordinary Items {ZåZ hoVw g_m`moOZ: Adjustment for: àmßV bm^m§e Dividend Received -1,583 -1,502 pñWa AmpñV`mo§ na _yë`õmg Depreciation on Fixed Assets 368 746 àmßV ã`mO Interest Received -2,774 -7,176 -3,989 -7,930 HŸm`©erb n[adV©Zmo§ go nyd© n{aMmbZ bm^ OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES 82,865 48,181 HŸm`©erb ny±Or n[adV©Zmo§ Ho$ {bE g_m`moOZ: ADJUSTMENTS FOR WORKING CAPITAL CHANGES : Mmby Xo`VmE± Current Liabilities 2,635 716 ì`mnmaJV ñQm°H Stock in trade -98,950 -63,576 G U Ed§ A{J«_ Loans & Advances 146 -104 AÝ` Mmby AmpñV`m± Other Current Assets 2,194 -421 -93,976 -63,385 n{aMmbZmo§ go A{O©V ZHŸX Cash Generated from Operations -11,111 -15,204 àXÎm àË`j H$a Direct Taxes paid -18,277 -14,375

n{aMmbZ {HŒ `mHŸbmnm| go {Zdb ZH$Xr (H ) -29,388 -29,579 NET CASH FROM OPERATING ACTIVITIES (A) I) {Zdoe {HŒ `mH bmnmo§ go ZH$Xr àdmh B) CASH FLOW FROM INVESTING ACTIVITIES àmßV ã`mO Interest Received 2,774 7,176 àmßV bm^m§e Dividend Received 1,583 1,502 O_m Ho$ {Zdoe _| ~Xbmd Change in Investment of Deposits 29,547 23,306 IarXr JB© pñWa AmpñV`m± Purchase of Fixed Assets 0 -450 {Zdoe J{V{d{Y`m| _| Cn`moJ H$s J`r {Zdb ZHŸXr (I) NET CASH USED IN INVESTING ACTIVITY (B) 33,904 31,534 J) {dÎm {HŒ `mHŸbmnm| go ZHŸXr àdmh C) CASH FLOW FROM FINANCING ACTIVITIES àXÎm bm^m§e (bm^m§e g§{dVaU H$a g{hV) Dividend Paid (Includes Dividend Distribution Tax) 0 0 {dÎmr`Z {HŒ `mHŸbmn _o§ à`wº {Zdb ZHŸXr (J) NET CASH USED IN FINANCING ACTIVITY (C) 0 0 ZHŸXr Ed§ ZHŸXr g_Vwë` _o§ {Zdb n{adV©Z(H +I+J) NET CHANGES IN CASH & CASH EQUIVALENTS (A+B+C) 4,516 1,956

ZHŸXr Ed§ ZHŸXr g_Vwë` H m àma§{^H eof 2,876 921 OPENING BALANCE OF CASH & CASH EQUIVALENTS

ZHŸXr Ed§ ZHŸXr g_Vwë` H m A§{V_ eof 7,392 2,876 CLOSING BALANCE OF CASH & CASH EQUIVALENTS 4,516 1,956

260 ZmoQ²>g Notes : ZHŸXr Ed§ ZHŸXr g_Vwë` H m A§{V_ eof Closing Balance of Cash & Cash Equivalents 1. ZHŸXr Ed§ ZHŸXr g_Vwë` _o§ em{_b h¢: Cash and Cash Equivalents includes: hñVJV ZHŸXr Cash in Hand 6 8 AZwgy{MV ~¢H mo§ _o§ eof Balance with Scheduled Banks - Mmby ImVo _o§ In Current Account 7,386 2,868 - Eogo O_m ImVo {OZH$s n[anŠdVm Ad{Y 12 _mh go H$_ hmo In Deposit account having maturity below 12 months 7,392 2,876 2. AàË`j nÕ{V go ZH$Xr àdmh [anmoQ>© H$s OmVr h¡& Cash flows are reported using the indirected Method. 3. Mmby df© Ho Am§H ‹Smo§ Ho gmW VwbZr` ~ZmZo Ho {bE Ohm± H ht Amdí`H g_Âmm J`m JV df© Ho Am§H ‹Smo§ H mo nwZ… g_y{hV Ed§ nwZì`©dpñWV {H `m J`m h¡& Previous year figures have been regrouped and rearranged wherever considered necessary to make them comparable with those of the current year.

h_mar g§b½Z g_{XZm§{HŸV {anmoQ© Ho AZwgma As per our report of even date attached H¥ŸVo ^yQ>m emh EÊS> H§$. For Bhuta Shah & Co. gZXr boImHŸma Chartered Accountants \$_© n§OrH aU g§. 101474W H$mn©~¢H$ {gŠ`w{aQrµO {b{_QoS Ho {ZXoeH _§Sb Ho {bE d CZH r Amoa go FRN No. 101474W For and on behalf of the Board of Directors of CorpBank Securities Limited AVwb Jmbm Atul Gala nr. dr. ^maVr {~énmj {_lm dr. _wÎmwH¥$îUZ gmÂmoXma Partner P. V. Bharathi Birupaksha Mishra V. Muthukrishnan gXñ`Vm g§§. 048650 AÜ`j Chairman {ZXoeH Director {ZXoeH Director Membership No. 048650 S>rAmB©EZ DIN 06519925 S>rAmB©EZ DIN 06884225 S>rAmB©EZ DIN 03113886 nr. Ho$. AmMm`© Ama. lrYaZ P. K. Acharya R. Sridharan {ZXoeH Director {ZXoeH Director S>rAmB©EZ DIN 06503668 S>rAmB©EZ DIN 08267185

E. AmB©. Ooåg XrnH$ Hw$_ma a§OZ ñWmZ Place : _w§~B© Mumbai A. I. James {XZm§H Dated : 10 _B© May, 2019 Deepak Kumar Ranjan nyU©H$m{bH$ {ZXoeH$ Ed§ H§$nZr g{Md C.F.O. Whole time Director & Company Secretary gr.E\$.Amo. S>rAmB©EZ DIN 06903375

ANNUAL REPORT 2018-19 261 31.03.2019 H mo g_mßV df© hoVw {dÎmr` {ddaU H$m ZmoQ> NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2019

ZmoQ 1: H§$nZr Ûmam AZwnm{bV _hËdnyU© boIm-Zr{V`mo§ H$m Note 1: Summary of Significant Accounting Policies followed by The Company gmam§e Company Overview H§$nZr H$m ã`m¡am Corpbank Securities Ltd. (the Company) was registered as a H$mn© ~¢H$ goŠ`y{a{Q‹O {b. (H§$nZr) J¡a ~¢qH$J {dÎmr` H§$nZr (EZ~rE\$gr) Non Banking Financial Company (NBFC) with the Reserve Ho ê$n _o§ ^maVr` {aOd© ~¢H$ _o§ n§OrH¥$V hwB© Wr VWm _mM© 2007 VH$ Bank of India and had been functioning as Primary Dealer till àmW{_H$$ Srba Ho ê$n _o§ H$m`©aV Wr& AmJo àmW{_H$ Srba{en H$s March, 2007. Further to the discontinuation of its Primary Dealership activity, the Company had ceased to be the NBFC g_mpßV na H§$nZr EZ~rE\ gr Zhr ahr VXZwgma Ama~rAmB© A{Y{Z`_ and accordingly the Certificate of Registration under Section 1934 H$s Ymam 45-AmB©E (6) Ho A§VJ©V n§OrH$aU df© 2007 _o§ {ZañV 45-IA (6) of the RBI Act 1934 was cancelled in the year 2007. Thereafter the Company started the distribution of Mutual hmo J`m& CgHo ~mX H§ nZr Zo å`wMwAb \§$S Ho$ {dVaU H$m H$m`© ewê$ Fund products. Besides, the Company has been deploying its {H$`m & BgHo$ A{V{aº$ H§$nZr ì`dgm{`H$ J{V{d{Y`mo§ Ho A§VJ©V AnZr funds by way of trading in approved instruments including {Z{Y`mo§ H$m {d{Z`moOZ AZw_mo{XV à{V^y{V`mo§ O¡go O_m à_mUnÌ, dm{UpÁ`H$ Certificate of Deposits, Commercial Papers, Central Govt. Securities and Treasury Bills as part of its business activity. nÌ, gaH$mar à{V^y{V`mo§ VWm Q—oOar {~bmo§ _o§ H$aVr h¡& df© 2015-16 _o§ After securing the requisite regulatory approvals and registering EZEgB©/~rEgB© go Amdí`H$ {d{Z`m_H$ AZw_moXZ àmßV H$aHo H§$nZr Zo with the NSE/BSE the Company commenced equity broking business for institutional investors during the financial year g§ñWmJV {ZdoeH$mo§ Ho$ {bE B{¹$Qr ~ŒmoqH$J ì`dgm` H$mo ewê$ {H$`m h¡& 2015-16. Bg gmb H§$nZr Zo B{¹$Qr eo`amo§ _o§ ì`mnm{aH$ ì`dgm` ewê$ {H$`m h¡ & This year the Company started proprietary trading business in equity shares. {dÎmr` {ddaUmo§ Ho$ {Z_m©U H$m AmYma Basis of preparation of Financial Statements: {dÎmr` {ddaUmo§ H$mo CnM` AmYma na ^maV _o§ bmJy g^r {dÎmr` _mZH$mo§ Ho These financial statements have been prepared on accrual basis and under historical cost convention and in compliance, in AZwgma g^r VÏ`JV nhbwAmo§ H$mo Ü`mZ _o§ aIH$a Eo{Vhm{gH$ bmJV na§nam Ho all material aspects, with the applicable accounting principles AZwnmbZ _o§ ~Zm`m J`m h¡, H§$nZr A{Y{Z`_, 2013 (A{Y{Z`_) H$s Ymam in India, the applicable accounting standards prescribed under section 129 and 133 and the other relevant provisions 129 VWm 133 Ed§ AÝ` g§~§{YV àmdYmZ Ho A§VJ©V {ZYm©{aV bmJy boIm§H$Z of the Companies Act, 2013 (the Act) read with rule 7 of the _mZH$ H$mo H§$nZr (boIm) {Z`_, 2014 Ho {Z`_ 7 Ho$ gmW n‹Tm OmE & Companies (Accounts) Rules, 2014.

AmH$bZ H$m à`moJ Use of Estimates {dÎmr` {ddaUmo§ H$m {Z_m©U gm_mÝ`V… boIm {gÕmVmo§ Ho AZwgma ~Zm`m J`m The preparation of financial statements are in confirmity with generally accepted accounting principles which require h¡ {Og_o§ à~§YZ V§Ì Ûmam AmH$bZ Ed§ àmH$bZ H$aZo H$s Amdí`H$Vm hmoVr h¡ estimates and assumptions to be made by the management Omo {dÎmr` {ddaU Ho {XZm§H$ na {anmoQ© H$s JB© AmpñV`mo§ Ed§ Xo`VmAmo§ H$s am{e that affects the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of Ed§ {anmo{Q>ªJ df© Ho Xm¡amZ {anmoQ© {H$E JE Am` Ed§ ì`` H$s am{e H$mo à^m{dV revenues and expenses during the reporting year. Difference H$aVo h¢& _yb n{aUm_ VWm AmH$bZ Ho A§Va H$mo n{aUm_ Kmo{fV/~VmE OmZo between the actual results and estimates are recognised in the dmbo df© _o§ {XIm`m OmVm h¡& year in which the results are known/materialised. 1 _hËdnyU© boIm-Zr{V`m± 1 Significant accounting policies 1.1 boIm§H$Z {d{Y 1.1 Method of Accounting (i) The financial statements are prepared on historical (i) {dÎmr` {ddaU gm_mÝ`V… ñdrH¥$V boIm§H$Z {gÕm§Vmo§ Ho$ cost basis conforming to the statutory provisions, AZwgaU _o§ gm§{d{YH$ àmdYmZmo§ Ho$ AZwgma Eo{Vhm{gH$ in accordance with Generally Accepted Accounting bmJV AmYma na V¡`ma {H$E OmVo h¢& Principles. (ii) H§$nZr, boIm§H$Z H$s àmoØdZ àUmbr AnZmVr h¡& (ii) The company follows accrual system of accounting.

262 1.2 pñWa AmpñV`m± Ed§ _yë`õmg 1.2 Fixed Assets & Depreciation (i) pñWa AmpñV`mo§ H$m _yë`m§H$Z CZH$s _yb bmJV _o§ go g§{MV (i) Fixed assets are valued at original cost less _yë`õmg KQmH$a {H$`m OmVm h¡& bmJV _o§ A{YJŒhU, accumulated depreciation. Costs include all direct g§ñWmnZ VWm H$m`©-Ama§^ go Ow‹Sr g_ñV àË`j bmJV costs attributable to acquisition, installation and commissioning. em{_b h¡& (ii) Depreciation on fixed assets is provided on (ii) pñWa AmpñV`mo§ na _yë`õmg H$m {ZYm©aU H§$nZr A{Y{Z`_, “Written Down Value” (WDV) method, at the 2013 H$s AZwgyMr II _o§ {Z{X©îQ Xamo§ Ed§ {ZYm©[aV T§J go rates specified in and in the manner as laid down "Ad{b{IV _yë`’ (Sãë`ySrdr) nÕ{V go {H$`m OmVm h¡& by Schedule II of the Companies Act, 2013. 1.3 {Zdoe 1.3 Investments (i) Aënmd{Y YmaU VWm ì`mnm{aH$ H«$`-{dH«$` Ho$ CÔoí` go (i) The securities acquired with the intention of short A{O©V à{V^y{V`mo§ H$mo "{dHŒo ` ñQm°H$' Ho ê$n _o§ _mZm OmVm term holding and trading positions is considered as h¡ Am¡a Mmby AmpñV`mo§ Ho AYrZ Xem©`m OmVm h¡& XrKm©d{Y “Stock-in-Trade” and shown under current assets. YmaU Ho CÔoí` go A{O©V AÝ` AmpñV`mo§ H$mo "{Zdoe' Ho Other securities acquired with the intention of long ê$n _o§ _mZm OmVm h¡& term holding are treated as “Investments.” (ii) {Zdoemo§ Q—oS Ho ê$n _o§ Ym{aV VWm n{an¹$Vm VH$ Ym{aV (ii) Securities held as investments and held till maturity are valued at cost. à{V^y{V`mo§ H$mo bmJV na _yë`m§{H$V {H$`m OmVm h¡& (iii) Any diminution in the value of securities held as (iii) {Zdoe Ho$ ê$n _o§ Ym[aV à{V^y{V _| {H$g àH$ma Ho$ _yë`õmg investment individually is provided for, wherever hoVw, Ohm± H$ht `h õmg ñWmB© h¡, àmdYmZ {H$`m OmVm h¡& such diminution is permanent. 1.4 ì`mnma hoVw ñQmH$ 1.4 Stock-in-trade (i) H$moQ H$s JB© à{V^y{V`mo§ H$mo bmJV `m ~mµOma _yë`, Omo ^r (i) The Quoted securities are valued at cost or market H$_ h¡, na _yë`m§{H$V {H$`m OmVm h¡& ~mµOma ^md CnbãY price, whichever is lower. In the absence of market Z hmoZo na, g_mZ àH¥${V Ed§ n{an¹$Vm Ad{Y dmbr quotes, market prices are determined at the rates à{V^y{V`mo§ Ho {dÚ_mZ à{V\$b Ho AmYma na n[aH${bV derived from the prevailing yield of securities Xamo§ na ~mµOma _yë` {ZYm©[aV {H$E OmVo h¢& having similar standing and maturity period. (ii) àËòH$ àH$ma H$s à{V^y{V H$mo EH$ àËòH$ àdJ© _mZm (ii) Each type of security is regarded as a separate OmVm h¡& àËòH$ àdJ© Ho$ A§VJ©V, _yë`m§H$Z pñH«$n-dma category. Under each category, valuation is done {H$`m OmVm h¡ VWm _yë`õmg H$m àmdYmZ {H$`m OmVm scrip-wise and depreciation is provided, while h¡ O~{H$ _yë`-d¥{Õ H$mo Nmo‹S {X`m OmVm h¡& EH$ àdJ© appreciation is ignored. The depreciation in H r à{V^y{V`mo§ Ho _yë`õmg H$mo Xygao àdJ© _o§ _yë`d¥{Õ Ho one category of securities is not set off against appreciation in another category. ~Xbo g_§OZ Zht {H$`m OmVm h¡& (iii) VwbZ-nÌ H$s VmarI H$mo Ym{aV Q—oµOar {~b H$m _yë`m§H$Z (iii) Treasury Bills held on the balance sheet date are aImd bmJV `m ~mµOma _yë`, Omo ^r H$_ hmo, na {H$`m valued at carrying cost or market value whichever is lower. The market value of Treasury Bills held OmVm h¡& VwbZ-nÌ H$s VmarI H$mo Ym{aV Q—oµOar {~bmo§ on the Balance Sheet date is determined as per H$m ~mµOma _yë` ^maVr` g_memoYZ {ZJ_ {b{_QoS Ûmam the rates provided by Clearing Corporation of CnbãY H$amB© Xamo§ Ho AZwgma {ZYm©{aV {H$`m OmVm h¡& India Limited. The Certificate of Deposits, and VwbZ-nÌ H$s VmarI H$mo Ym{aV O_m à_mU-nÌ Am¡a Commercial Papers held on the balance sheet dm{UÁ` nÌmo§ H$mo ZrMo 1.6 _o§ d{U©V AZwgma aImd bmJV date, are valued at carrying cost as explained in 1.6 na _yë`m§{H$V {H$`m OmVm h¡& below. (iv) H|$Ð gaH$ma {XZm§{H$V à{V^y{V`mo§ H$m ~mµOma _yë` ^maVr` (iv) The market value of Central Government Dated {Z`V Am` _wÐm ~mµOma Am¡a ì`wËnÞr g§K (E\$AmB©E_E_ Securities is determined as per the rates provided SrE) Ûmam CnbãY H$amB© Xamo§ Ho$ AZwgma {ZYm©[aV {H$`m by Fixed Income and Money Market Dealers Association (FIMMDA). OmVm h¡& 1.5 H$_©Mm[a`mo§ H$mo ^wJVmZ d CZHo$ {bE àmdYmZ 1.5 Payments to and Provision for Employees _yb g§JRZ AWm©V², H$mnmo©aoeZ ~¢H$ H$mo, CZHo$ H$_©Mm[a`mo§/ Payments made to parent organization viz., A{YH$m[a`mo§ H$s, {OZH$s godmE§ à{V{Z`w{º$ Ho$ AmYma na Corporation Bank’s staff, towards emoluments/

ANNUAL REPORT 2018-19 263 H§$nZr H$mo àXmZ H$s OmVr h¢, n[abpãY`mo§/^{dî` {Z{Y hoVw provident funds of their employees/officials, whose {H$E JE ^wJVmZ H$mo H§$nZr H$s bmJV Ho$ ê$n _o§ _mZm OmVm services are lent to the Company on deputation basis, are regarded as Company’s costs. h¡& H$_©Mmar gdm{Zd¥{Îm bm^ _yb g§JRZ AWm©V H$mnmo©aoeZ ~¢H$ H$m Employee Retirement Benefits being the liability of the parent organization viz., Corporation Bank CÎmaXm{`Ëd h¡ {Ogo {dÎmr` {ddaU go _mÝ`Vm Zht Xr JB© h¡& is not recognized in the Financial Statement. godm§V bm^ Am¡a NwÅr ZH$XrH$aU Ho$ _m_bo _o§ ^r `hr hwAm Similar is the case for termination benefits and leave h¡& encashment. 1.6 amOñd H$m {ZYm©aU 1.6 Revenue Recognition (i) {XZm§{H$V gaH$mar à{V^y{V`mo§ na Cn{MV ã`mO H$mo CgH$s (i) Interest accrued on Dated Government Hy$nZ Xa na {ZYm©[aV {H$`m OmVm h¡& Securities is recognized at its coupon rate. (ii) pñWa Am` à{V^y{V`mo§ H$s IarX Ed§ {~H«$s _yë` H$mo bmJV (ii) Purchase and sale price of fixed income securities is bifurcated into cost and accrued interest paid Am¡a àXÎm Ed§ dgyb Cn{MV ã`mO Ho ên _o§ {d^m{OV or realized. Amount paid as interest accrued on {H$`m OmVm h¡& pñWa Am` à{V^y{V`mo§ H$s IarX na Cn{MV purchase and received on sale of fixed income `m {~H«$s na àmßV ã`mO (I§{SV Ad{Y ã`mO) Ho ê$n _o§ securities (Broken period interest) is netted and àXÎm am{e H$m {Zdb {ZH$mbm J`m Am¡a Am`/ì`` Ho ê$n reckoned as income/expense. _o§ _mZm OmVm h¡& (iii) Profit / loss on sale of securities is accounted on Weighted Average Price Method (WAP) and is (iii) à{V^y{V H$s {~ŒH$s na bm^/hm{Z H$mo ^m{aV Am¡gV _yë` recognized on settlement date. {d{Y (d¡n) na boIm§{H$V {H$`m OmVm h¡ Am¡a {ZnQmZ {V{W (iv) Commission on the business done as H$mo _mÝ`Vm Xr OmVr h¡ & intermediaries is recognised on accrual basis. (iv) _Ü`dVu Ho ê$n _o§ {H$E JE H$mamo~ma na H$_reZ/Xbmbr (v) Revenue from brokerage busines is recognised H$m {ZYm©aU CnM` AmYma na {H$`m OmVm h¡& on the basis of the confirmed Contract note of (v) ~ŒmoH$aoO ì`dgm` go amOñd H$s nhMmZ ì`mnma H$s nwîQ the trade. g§{dXm ZmoQ Ho$ AmYma na H$s OmVr h¡ & (vi) Interest on investments is recognised on accrual (vi) {Zdoemo§ na ã`mO H$m {ZYm©aU CnM` AmYma na {H$`m OmVm basis. Dividend income on investments in the h¡& å`yMwAb \§$Smo§ H$s `y{ZQmo§ Ed§ B{¹$Qr eo`a _o§ {Zdoe na Units of Mutual Funds and on equity shares is recognised on the basis of declaration of the bm^m§e Am` CZH$s KmofUm Ho AmYma na {ZYm©{aV H$s OmVr same. h¡& 1.7 Taxation 1.7 H$amYmZ (i) Provision for current tax is made on the basis (i) Mmby H$a H$m àmdYmZ Am` H$a A{Y{Z`_, 1961 Ho$ of estimated taxable income for the current àmdYmZmo§ Ho$ AZwgma Mmby boIm§H$Z df© hoVw AZw_m{ZV H$a- accounting year in accordance with the `mo½` Am` Ho$ AmYma na {H$`m OmVm h¡& provisions of the Income Tax Act, 1961. (ii) df© Ho H$a bm^ Ed§ ~hr bm^ Ho g_`mÝVa hoVw AmñW{JV (ii) Deferred Tax for timing differences between tax profit & book profit for the year is accounted H a H$s JUZm VwbZ-nÌ H$s VmarI H$mo {dÚ_mZ H$a Xa VWm for using the tax rate & laws that have been A{Y{Z`{_V `m VËdV… A{Y{Z`{_V {d{Y`mo§ H$m à`moJ enacted or substantially enacted as of the H$aVo hwE H$s OmVr h¡& g_`mÝVa go CËnÞ AmñW{JV H a Balance Sheet date. Deferred Tax assets arising AmpñV`mo§ H$m {ZYm©aU Bg gr_m VH$ {H$`m OmVm h¡ {OVZm from timing differences are recognised to the {H$ ^{dî` _o§ Cº AmpñV`mo§ H r dgybr H$s {Z{üVVm hmo extent there is a virtual certainity that these assets would be realised in future and reviewed Am¡a ha VwbZ-nÌ H$s VmarI H mo CZHo g§~§{YV _yë`mo§ H r for the appropriateness of their respective Cn`wº$Vm H$s g_rjm H$s OmVr h¡& carrying values at each Balance Sheet date. 1.8 AmpñV`mo§ H$s j{V 1.8 I mpairment of Assets Am§V{aH$/~mø KQH$mo§ Ho AmYma na {H$gr j{V Ho g§Ho V H$s The carrying amount of assets is reviewed at each X¥pîQ go AmpñV`mo§ H$s {Z{hV am{e H$s àË`oH$ VwbZ-nÌ VmarI H mo balance sheet date for indications of any impairment g_rjm H$s OmVr h¡& Ohm± H$ht {Z{hV am{e CgH$s dgybr-`mo½` based on internal/external factors. An impairment loss

264 am{e go A{YH$ hmo OmVr h¡, j{VJV hm{Z {ZYm©{aV H$s OmVr h¡& is recognised wherever the carrying amount of the assets Eogr {H gr j{VJV hm{Z H$mo bm^-hm{Z boIo _o§ à^m{aV H aVo exceeds its recoverable amount. Any such impairment loss is recognised by charging it to the profit and loss hwE {ZYm©{aV {H$`m OmVm h¡& O~ {H$gr nyd© {ZYm©{aV j{VJV account. A previously recognised impairment loss is hm{Z H r _m¡OyXJr IË_ hmo OmVr h¡, Cgo àË`md{V©V {H$`m OmVm reversed when it ceases to exist and the asset is restated h¡ Am¡a Cg hX VH$ nwZ{Z©Ym©{aV {H `m OmVm h¡& to that effect. 1.9 àmdYmZ, AmH$pñ_H$ AmpñV`m± Ed§ AmH$pñ_H$ Xo`Vm 1.9 P rovisions, Contingent Assets and Contingent {dJV H r {H$gr KQZm Ho H$maU O~ dV©_mZ _o§ H$moB© Xm{`Ëd hmo Liabilities {OgHo {bE g§gmYZmo§ H$mo ~{hJ©_Z Ano{jV hmo Am¡a Cº Xm{`Ëd The Company creates a provision when there is a present obligation as a result of a past event that H r am{e H m H$moB© {dœgZr` AZw_mZ bJm`m Om gH Vm hmo H§ nZr probably requires an outflow of resourses and a realiable BgHo {bE àmdYmZ H aVr h¡& AmH$pñ_H$ Xo`Vm H m àH QZ V~ estimate can be made of the amount of the obligation. {H `m OmVm h¡ O~ Egr H$moB© g§^m{dV Xm{`Ëd `m dV©_mZ Xm{`Ëd A disclosure for contingent liability is made when there hmo {OgHo {bE g§^dV… g§gmYZmo§ Ho ~{hJ©_Z Ano{jV Z hmo& is possible obligation or a present obligation that may, Ohm± Eogm H$moB© g§^m{dV Xm{`Ëd `m dV©_mZ Xm{`Ëd hmo {OgHo but probably will not, require any outflow of resourses. g§~§Y _o§ g§gmYZmo§ Ho ~{hJ©_Z H$s g§^mdZm ZJÊ` h¡, dhm± H$moB© Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow àmdYmZ `m àH QZ Zht {H$`m OmVm h¡ & of resources is remote no provision or disclosure is {dÎmr` {ddaUmo§ _o§ AmH$pñ_H$ AmpñV`mo§ H$moo Z Vmo _mÝ`Vm Xr JB© made. h¡ Am¡a Z hr àH$Q>rH$aU {H$`m J`m h¡& Contingent assets are not recognized nor disclosed in 1.10 ZH$Xr VWm ZH$Xr Ho$ g__yë` the Financial Statements. ZH$Xr Am¡a ZH$Xr Ho$ g__yë` {OgHo$ A§VJ©V ZH$Xr VWm {dÎmr` 1.10 Cash & Cash Equivalents g§ñWmAmo§ VWm ~¢H$mo§ _o§ O_mE± em{_b h¢& H§ nZr g^r CÀM Cash and cash equivalents comprise cash and cash VabVm dmbo {Zdoemo§ H mo eof n{an¹Vm AmYma na IarX H$s on deposit with banks and financial institutions. The Company considers all highly liquid investments with VmarI go VrZ _mh `m H _ H$s Ad{Y àXmZ H$aVr h¡ VWm ò a remaining maturity at the date of purchase of three ZH$Xr H$s kmV am{e `m ZH$Xr g_mZ _o§ AmgmZr go n{adV©Zr` months or less and that are readily convertible to h¢& known amounts of cash to be cash equivalents. 1.11 ZH$Xr àdmh {ddaUr 1.11 Cash Flow Statement ZH$Xr àdmh H$mo Anamoj {d{Y Ûmam {anmoQ© {H$`m OmVm h¡, {Og_o§ Cash flows are reported using the indirect method Ad{Y Ho Xm¡amZ hwE bm^ H$mo J¡a-ZH$Xr dmbo boZXoZ, {H gr where by the profit for the period is adjusted for the Qmbo JE `m Cn{MV ^yV `m ^{dî` H$s n{aMm{bV ZH$X nmdVr effects of the transactions of a non-cash nature, any deferrals or accruals of any past or future operating `m ^wJVmZ VWm ZH$Xr àdmX Ho {dÎmnmofU `m {Zdoe go g§~§{YV cash receipts and payments and item of income and ì`` Ho gmnoj g_m`mo{OV {H$`m OmVm h¡ & n{aMmbZ, {Zdoe expenses associated with investing or financing cash VWm {dÎmnmofU J{V{d{Y`mo§ go àmßV ZH$Xr H mo AbJ AbJ flows. The cash flows from operating, investing and {XIm`m OmVm h¡& financing activities of the Company are segregated. 1.12 à{V eoà AO©Z (B©nrEg ) 1.12 Earnings Per Share (EPS) à{V eoà AO©Z H r JUZm H§$nZr Ho B{¹$Qr eoàYmaH$mo§ H$mo Earnings per equity share is computed by dividng the net profit attributable to the equity shareholders of the XoZo `mo½` {Zdb bm^ _o§ Ad{Y Ho Xm¡amZ eof B{¹$Qr eoàmo§ H$s Company by the weighted average number of equity ^m{aV Am¡gV g§»`m go ^mJ XoH$a H$s OmVr h¡& H§ nZr Zo df© Ho shares outstanding during the period. The Company Xm¡amZ H moB© eoà/BEgAmonr Omar Zht {H$E h¢ Am¡a Z hr eoàmo§ has not issued any Shares / ESOP nor is there any H$s g§»`m _o§ H moB© n[adV©Z hþAm h¡, AV… à{V eoà VZwH¥ V Am` change in the number of shares during the year and à{V eoà H$s _yb Am` Ho g_mZ h¡& hence diluted earning per share are same as basic earnings per share. 1.13 A_yV© AmpñV`m± 1.13 Intangible Assets A_yV© AmpñV`mo§ _o§ EßbrHo$eZ gmâQ²doà H$s A{YJ«hU bmJV Intangible assets consist of acquisition cost of em{_b h¢& BgH m n{aemoYZ {~Zm Adeof _yë` Ho AmYma na application software. This is being amortised over a AmpñV`mo§ Ho Cn`moJr OrdZ `m 3 df© H$s Ad{Y, Omo ^r H$_ hmo useful life of the asset or 3 years which ever is less with na {H$`m OmVm h¡& no residual value.

ANNUAL REPORT 2018-19 265 31 _mM©, 2019 H$mo g_mßV Ad{Y hoVw boImo§ H$s {Qßn{U`m± NOTES TO FINANCIAL STATEMENTS FOR THE year ENDED 31st MARCH, 2019 2 eoà ny±Or SHARE CAPITAL (` hµOmamo§ _| ` in thousands) As at As at Particulars `Wm `Wm {ddaU March 31, 2019 March 31, 2018 àm{YH¥ V Authorized 12,50,00,000 B©pŠdQ>r eoà, `10/- g_ _yë` Ho 12,50,00,000 Equity shares, `10/- par value 1,250,000 1,250,000 (JV df© 12,50,00,000 B©pŠdQ>r eoà `10/- g_ _yë` Ho ) (Previous Year 12,50,00,000 equity shares `10/- par value) 1,250,000 1,250,000 {ZJ©{_V, A{^XÎm Ed§ àXÎm Issued, Subscribed and Paid Up 7,50,00,000 B©pŠdQ>r eoà, `10/- g_ _yë` Ho , nyU©V… àXÎm 7,50,00,000 Equity shares, `10/- par value, fully paid up 750,000 750,000 (7,50,00,000 eoà YmaH H§$nZr H$mnmo©aoeZ ~¢H Am¡a CgHo Zm{_{V`mo§ Ûmam Ym[aV) (7,50,00,000 Shares held by Holding Company Corporation Bank and its Nominees) 750,000 750,000

{Q>ßnUr g§. 2.1… 31.3.2019 Am¡a 31.3.2018 H$mo ~H$m`m eoàm| H$m g_mYmZ `hm§ ZrMo àñVwV h¡… Note No. 2.1 : The reconciliation of the number of shares outstanding as at 31.3.2019 and 31.3.2018 is set out below : 31 2019 31 2018 Particulars _mM©, H$mo _mM©, H$mo {ddaU As at March 31, 2019 As at March 31, 2018 Ama§^ _| eoàm| H$s g§»`m Number of shares at the beginning 75,000 75,000 OmoS>|… df© Ho$ Xm¡amZ Omar eoà Add: Shares issued during the year – – KQ>mE§… dmng IarXo JE eoà (AJa H$moB© hmo Vmo) Less : Shares bought back (if any) – – A§V _| eoàm| H$s g§»`m Number of Shares at the end 75,000 75,000 H§ nZr Ho nmg Ho db EH hr loUr Ho B{¹$Q>r eoà h¡ {OgH m g_ _yë` `10 à{V eoà h¡& B{¹$Q>r eoà H$m ha YmaH à{V eoà Ho {bE EH dmoQ H$m hH$Xma h¡& H§$nZr bm^m§e H$m ^wJVmZ KmofUm Ed§ ^maVr` énE _o§ H aVr h¡& `{X {ZXoeH _§Sb Ûmam bm^m§e H m àñVmd h¡, Vmo AJm_r dm{f©H _hm g^m _o§ eoàYmaH mo§ go BgH m AZw_moXZ àmßV H aZm Mm{hE& H§ nZr Ho n[ag_mnZ Ho Adga na, B{¹$Q>r eoàYmaH A{Y_mÝ` am{e Ho {dVaU Ho ~mX H§ nZr Ho eof AmpñV H mo àmßV H aZo H m hH Xma hmo§Jo& {dVaU eoàYmaH Ûmam aIo B{¹$Q>r eoàmo§ H r g§»`m Ho AZwnmV _o§ hmoJm & The Company has only one class of equity shares having a par value of `10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General meeting. In the event of liquidation of the Company, the hoders of the equity shares will be entitled to receive remaining assets of the Company, after distribution of preferential amounts. The distribution will be in proportion to the number of equity shares held by the Shareholders. {Q>ßnUr g§. 2.2 … 31.3.2019 Am¡a 31.3.2018 H$mo 5% eoàmo§ go A{YH Ym[aV H$aZo dmbo eoàYmaH$mo§ Ho ã`moao ZrMo àñVwV h¡ : Note No. 2.2 : The details of shareholders holding more than 5% shares as at 31.3.2019 and 31.3.2018 is set out below : Ym[aV eoàmo§ H$s 31 _mM©, 2019 Ym[aV eoàmo§ 31 _mM©, 2018 Name of the Shareholders g§. H$mo Ym[aV H$s g§. H$mo Ym[aV eoàYmaH$mo§ Ho Zm_ No. of As at No. of As at shares held March 31, 2019 shares held March 31,2018 H mnmo©aoeZ ~¢H (YmaH$ H§$nZr) Am¡a CgHo Zm{_Vr 75,000 100% 75,000 100% Corporation Bank (Holding Company) and its Nominees

{Q>ßnUr g§. 2.3… JV nm±M dfm] _| ZH$Xr Ho$ Abmdm g§ko` eo`am| H$m {ZJ©_ `Nil `Nil Note No. 2.3: Issue of Share for consideration other than in cash in last five years

266 3 Ama{jV {Z{Y`m± d A{Yeof RESERVES & SURPLUS (` hµOmamo§ _| ` in thousands) 31 2019 31 2018 Particulars `Wm _mM©, `Wm _mM©, {ddaU As at March 31, 2019 As at March 31, 2018 ny±Or _moMZ Ama{jV {Z{Y Capital Redemption Reserve àma§{^H eof Opening Balance H /A 250,000 250,000 gm_mÝ` Ama{jV {Z{Y General Reserve àma§{^H eof Opening Balance 11,627 11,627 Omo‹So§: A{Yeof go A§VaU Add: Transferred from surplus – – I/B 11,627 11,627 A{Yeof-àma§{^H$ eof Surplus – Opening balance 158,040 117,929 OmoS>|… bm^-hm{Z {ddaU go H$a H$m A§VaU H$aZo Ho$ ~mX {Zdb bm^ Add: Net profit after tax transferred from 76,839 40,111 bm^ - hm{Z {ddaU Statement of Profit & Loss – – {d{Z`moOZ hoVw CnbãY am{e Amount available for appropriation 234,879 158,040 KQmE§ : {d{Z`moOZ Less : Appropriations A§{V_ bm^m§e Final Dividend – – A§V[a_ bm^m§e Interim Dividend – – Hw$b bm^m§e Total Dividend – – {dJV df© hoVw bm^m§e g§{dVaU H$a Dividend Distribution Tax for earlier year – – gm_mÝ` Ama{jV {Z{Y _| A§V[aV am{e Amount transferred to General Reserve – – A{Yeof A§{V_ eof Surplus Closing Balance J/C 234,879 158,040 Hw$b Ama{jV {Z{Y Am¡a A{Yeof Total Reserves & Surplus 496,507 419,667 (H$+I+J/A+B+C) 4 ì`mnma XoZXm[a`m± TRADE PAYABLES (` hµOmamo§ _| ` in thousands) 31 2019 31 2018 Particulars `Wm _mM©, `Wm _mM©, {ddaU As at March 31, 2019 As at March 31, 2018 gyú_ Am¡a bKw CÚ_mo§ H$s ~H$m`m Xo` Outstanding dues of Micro Enterprices and Small enterprises – –

AÝ` CÚ_mo§ go ~H$m`m Xo` 3,600 1,079 Outstanding dues of Other enterprises 3,600 1,079 {Q>ßnUr g§. 4.1 gyú_, bKw VWm _Ü`_ CÚmoJ {dH$mg A{Y{Z`_ 2006 Ho$ A§VJ©V d|S>am| H$s pñW{V H$mo CZgo àmßV gyMZm Ho$ AmYma na H§$nZr Zo àH$Q> {H$`m h¡& gyú_ VWm bKw CÚmoJ d|S>am| H$mo ^wJVmZ _| H$moB© {db§~ Zhr hþAm h¡ AV: {H$gr ã`mO `m AÝ` X§S> am{e Ho$ àmdYmZ H$m àíZ Zht h¡& à~§YZ Ûmam àñVwV àË`mdoXZ H$mo boIm narjH$m| Zo ñdrH$ma {H$`m h¡& Note No. 4.1 The Company has made the disclosure based on the information received from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. There are no delays in the payment to micro or small vendors and as such the question of provision of any interest or other penal sum does not arise.The representation of the management has been relied upon by the Auditors. 5 AÝ` Mmby Xo`VmE§ OTHER CURRENT LIABILITIES (` hµOmamo§ _| ` in thousands) 31 2019 31 2018 Particulars `Wm _mM©, `Wm _mM©, {ddaU As at March 31, 2019 As at March 31, 2018 AÝ` Xo`VmE§ Other payables – – gm§{d{YH$ Xo`VmE§ (QrSrEg) Statutory Liabilities 122 10 122 10

ANNUAL REPORT 2018-19 267

23 32 79 455 106 347 694 347 1,041 As at `Wm 31.03.2018 s. 232 232 Net Block Net in thousands) ` Total WDV Total Hw$b S>ãë`yS>rdr As at {Zdb I§S hµOmamo§ _o§/ `Wm 31.03.2019 ` ( 236 232 236 232 313 17 603 32 416 48 485 95 years 4,850 673 4,614 442 As at 2,797 250 df© 0 0 `Wm 31.03.2019 – – – H$Qm¡Vr df© Ho$ Xm¡amZ Deduction Deduction mortisation during the year a years 15 to 20 _yë`õmg/n{aemoYZ df© 0 0 Depreciation/ Depreciation Depreciation for the period df© hoVw _yë`õmg

385 31 121 115 – 121 115 – 307 6 – 603 – 474 11 4,482 368 – As at 2,592 205 – 4,361 252.88 – `Wm 01.04.2018 years 10 to 15 468 468 330 635 464 581 5,523 As At df© 3,047 5,055 0 0

years 5 to 10 – – – – – – df© 232 232 Ho$ AZwgma _yë`õmg {H$`m h¡& AV: `o AmpñV`m| Omo AnZo à`wŠV OrdZ go A{YH$ h¡ CÝho§ Z XoH$a H$~m‹S> _yë` {X`m J`m 2 gH$b I§S n{adY©Z Additions 0 to 5 2018-19 Y F 468 – – 468 – – 330 – – 635 464 581 5,523 – – H$s AZwgyMr As at 3,047 – – 5,055 – – `Wm ssets 01.04.2018 2013 A Ho àmdYmZm| Ho$ AZwgma _yë`õmg àXmZ {H$`m J`m h¡& 2 ed x i F Computer software Total Assets Total Particulars Computer {ddaU Vehicles Total Total Total pñWa AmpñV`m± H§$ß`yQ>a gm°âQ>do`a The Company has considered depreciation as per Schedule II of the Companies Act, 2013. Thus assets which have exceeded their estimated useful life have not been their estimated useful life have exceeded Thus assets which have 2013. as per Schedule II of the Companies Act, depreciation The Company has considered ote :

6 _yV© AmpñV`m± : ASSETS TANGIBLE A_yV© AmpñV`m± : ASSETS INTANGIBLE H§$ß`yQ>a gmâQ>do`a Computer Software Hw$b Hw$b AmpñV`m± \$ZuMa Am¡a Ow‹S>Zma & Fixtures Furniture dmhZ H$m`m©b` CnH$aU Equipment Office H§$ß`yQ>a {dÚwV g§ñWmnZ Installations Electrical Hw$b AÝ` AmpñV`m| H$mo AZwgyMr ZmoQ>: H§$nZr Zo A{Y{Z`_ N their useful life as per Schedule II provision over been depreciated The other assets have value. realisable scrap at their reflected and are charged depreciation : period of amortisation of intagible assets is as follows Range of remaining A_yV© AmpñV`m| Ho$ n[aemoYZ H$s eof Ad{Y {dñVma gr_m {ZåZdV h¢:

268 7 J¡a Mmby {Zdoe NON-CURRENT INVESTMENT (` hµOmamo§ _| ` in thousands) 31 2019 31 2018 Particulars `Wm _mM©, `Wm _mM©, {ddaU As at March 31, 2019 As at March 31, 2018 A§{H V _yë` _mÌm Qty. am{e (`) am{e (`) Face Value Amount Amount ` ` H$moQ Z {H E JE Unquoted B©pŠdQ>r {bIVmo§ _o§ In Equity Instruments pŠb`qaJ H$mnmo©aoeZ Am°\ B§{S`m {b{_QoS Clearing Corporation of India Limited 10 500 5,000 5,000 H$moQ Z {H E JE {Zdoemo§ H$m Hw b _yë` Total Value of Unquoted Investments 5,000 5,000 XrKm©d{Y {Zdoemo§ H$m `moJ Total of Long Term Investments 5,000 5,000 KQmE§ : {Zdoemo§ Ho _yë` _o§ õmg hoVw àmdYmZ Less : Provision for Diminution in the value of Investment – – {Zdoe H$m {Zdb _yë` Net Value of Investment 5,000 5,000

8 AmñW{JV H$a AmpñV`m± DEFERRED TAX ASSETS (` hµOmamo§ _| ` in thousands) 31 2019 31 2018 Particulars `Wm _mM©, `Wm _mM©, {ddaU As at March 31, 2019 As at March 31, 2018

~{h`mo§ Am¡a Am` H$a A{Y{Z`_ Ho AZwgma _yë`õmg _o§ A§Va Ho H$maU 91 242 On account of Difference in Depreciation as per books and as per Income Tax Act 91 242 9 XrKm©d{Y G$U Ed§ A{JŒ_ LONG TERM LOANS & ADVANCES (` hµOmamo§ _| ` in thousands) 31 2019 31 2018 Particulars `Wm _mM©, `Wm _mM©, {ddaU As at March 31, 2019 As at March 31, 2018

(Aà{V^yV, AÝ`Wm Z ~VmE OmZo na emoÜ` _mZo JE) (Unsecured, considered good unless stated otherwise) à{V^y{V O_mE± Security Deposits 11,390 11,240 A{J«_ Am` H$a ({Zdb àmdYmZ) Advanced Income Tax (Net of Provisions) 5,548 5,032 Ý`yZV_ d¡H$pënH H$a O_m Minimum Alternate Tax Credit 38,946 31,559 55,884 47,832

10 BZdo§Qar INVENTORIES (` hµOmamo§ _| ` in thousands) `Wm 31 _mM©, 2019 `Wm 31 _mM©, 2018 {ddaU Particulars As at March 31, 2019 As at March 31, 2018 O_m à_mUnÌ Certificate of Deposits 204,485 – nÌ Commercial Papers 931,710 943,914 BpŠdQ>r BÝdoñQ>_|Q> Equity Investement 2,962 3,273 å`yMwdb \§$S> Mutual Funds – 93,021 1,139,157 1,040,208

ANNUAL REPORT 2018-19 269 11 ZH$Xr Ed§ ZH$Xr g_Vwë` CASH & CASH EQUIVALENTS (` hµOmamo§ _| ` in thousands) {ddaU Particulars `Wm 31 _mM©, 2019 `Wm 31 _mM©, 2018 As at March 31, 2019 As at March 31, 2018 ZH$Xr Ed§ ~¢H$ eof am{e Cash & bank balances ~¢H$m| _o§ eof Balance with Banks – Mmby ImVo _o§ In Current Account i) {M{•V Mmby ImVo Earmarked Current Accounts 6,894 751 ii) AÝ` Mmby ImVo Other Current Accounts 492 2,117 - 12 _mh go H _ n[an¹ Vmdmbo O_m ImVo _o§ In Deposit account having maturity below 12 months i) {M{•V O_mE§ Earmarked Deposits* 4,875 4,875 ii) AÝ` O_mE§ Other Deposits 36,000 65,548 hmW _| ZH$Xr Cash In Hand 6 8 48,267 73,299

* Cnamoº {M{•V O_mE§ H§ nZr H$s gwajm Am¡a Jma§Qr Ho CÔoí` hoVw CgH$s EZEgB©/~rEgB© _o§ _m{O©Z Am¡a ~H$m`m go g§~§{YV h¡& The deposits earmarked above are for the purposes of security and guarantee of the Company towards its margin and outstandings with NSE/ BSE in the course of its broking business.

12 Aënmd{Y G$U Ed§ A{J«_ SHORT TERM LOANS & ADVANCES (` hµOmamo§ _| ` in thousands) 31 2019 31 2018 Particulars `Wm _mM©, `Wm _mM©, {ddaU As at March 31, 2019 As at March 31, 2018 (Aà{V^yV, AÝ`Wm Z ~VmE OmZo na emoÜ` _mZo JE) (Unsecured, considered good unless stated otherwise) OrEgQ>r – >{Z{dpîQ> O_m GST – Input Credit 235 148 {d{dY XoZXma-g§ajH$ Sundry Debtors – Custodian 56 63 nyd©XÎm ì`` Prepaid Expenses 487 253 {d{dY O_mE± Sundry Deposits – 100 778 564

13 AÝ` Mmby AmpñV`m± OTHER CURRENT ASSETS (` hµOmamo§ _| ` in thousands) 31 2019 31 2018 Particulars `Wm _mM©, `Wm _mM©, {ddaU As at March 31, 2019 As at March 31, 2018 (Aà{V^yV, AÝ`Wm Z ~VmE OmZo na emoÜ` _mZo JE) (Unsecured, considered good unless stated otherwise) àmß` ã`mO Interest Receivable 377 2,571 377 2,571 {ZXoeH$m| Ho$ {dMma Ho$ AZwgma Mmby AmpñV`m±, F$U VWm A{J«_ Cpëb{IV _yë` Ho$ bJ^J ~am~a h¢ Ed§ ì`dgm` Ho$ gm_mÝ` H«$_ _| àmßV hþE h¢& In the opinion of the Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business.

270 14 n[aMmbZ go amOñd REVENUE FROM OPERATION (` hµOmamo§ _| ` in thousands) Mmby df© Current Year JV df© Previous Year Particulars {ddaU 2018-19 2017-18 O_m à_mUnÌm| _o§ boZ-XoZ (XoI| {Q>ßnUr g§ 14.1) Trading in Certificate of Deposits (Refer Note No. 14.1) àma§{^H ñQm°H Opening Stock – 492,918 H«$` Purchases 347,850 – H$ A 347,850 492,918 KQmE§: {~H«$s/_moMZ Less: Sales/Redemption 150,000 500,000 A§{V_ ñQm°H Closing Stock 204,485 – I B 354,485 500,000 I-H$ B-A 6,635 7,083 dm{UpÁ`H$ nÌ _| Q´>oqS>J (XoI| {Q>ßnUr g§. 14.1) Trading in Commercial Paper (Refer Note No. 14.1) àma§{^H ñQm°H Opening Stock 943,914 483,715 H«$` Purchases 1,403,865 2,659,341 H$ A 2,347,779 3,143,055 KQmE§: {~H«$s/_moMZ Less: Sales/Redemption 1,497,955 2,249,908 A§{V_ ñQm°H Closing Stock 931,710 943,914 I B 2,429,666 3,193,821 I-H$ B-A 81,887 50,766 Trading Equity Shares àma§{^H ñQm°H Opening Stock 3,273 – H«$` Purchases 97,482 29,311 ñQ>m±n S>çyQ>r EgQ>rQ>r Ed§ BpŠdQ>r Q´>o{S>§J go g§~§{YV H$mamo~ma ewëH$ Stamp Duty, STT and Tunover Charges relating to Equity Trading 1,089 161 H$ A 101,844 29,472 KQ>mE§: {~H«$s/_moMZ Less: Sales/Redemption 98,825 25,893 A§Va{Xdgr` boZXoZ na bm^ Gain on Intraday Transactions -360 91 A§{V_ ñQm°H Closing Stock 2,962 3,273 I B 101,427 29,258 I-H$ B-A -417 -214

~«moqH$J H$mamo~ma go Am` Income from Broking Business 668 785

Gain on Redemption of Short Term Investment 4,104 21 å`yMwAb \§$S> Ho$ g§{dVaU na H$_reZ/Xbmbr Commission/Brokerage on Distribution of Mutual Fund 13 557 92,890 58,997

ANNUAL REPORT 2018-19 271 15 AÝ` Am` OTHER INCOME (` hµOmamo§ _| ` in thousands) Mmby df© Current Year JV df© Previous Year Particulars {ddaU 2018-19 2017-18 gmd{Y O_mam{e`mo§ na àmßV ã`mO Interest Received on Fixed Deposits 2,774 7,176 XrKm©d{Y {Zdoe na àmßV bm^m§e Dividend Received on Long Term Investments 1,500 1,500 bKw Ad{Y {Zdoem| na àm Dividend Received on Short Term Investments 83 2 pñWa AmpñV`m| H$s {~H«$s na bm^ Profit on sale of Fixed Assets – – {d{dY Am` Miscellaneous Income 80 0 4,437 8,678

16 H$_©Mmar {hVbm^ ì`` EMPLOYEE BENEFIT EXPENSES Mmby df© Current Year JV df© Previous Year Particulars {ddaU 2018-19 2017-18 doVZ Ed§ _µOXyar (XoI| {Q>ßnUr g§. 16.1) Salaries & Wages (Refer Note No. 16.1) 5,051 5,814 ^{dî` Am¡a AÝ` {Z{Y`m| Ho$ à{V A§eXmZ (XoI| {Q>ßnUr g§. 16.1) Contribution to Provident and other funds (Refer Note No. 16.1) – – ñQ>m\$ H$ë`mU ì`` Staff welfare expenses 178 301 5,229 6,115 {Q>ßnUr g§. 16.1 doVZ Ed§ _µOXyar _o§ em{_b h¡ `1,636/- (JV df© `1,492/-) H$m {ZXoeH$ H$m nm[al{_H & ({dÎmr` {ddaUm| H$mo ZmoQ> g§. 22 XoI|) Note No. 16.1 Salaries & Wages includes Director’s Remuneration of `1,636/- (Previous Year `1,492/-) (Refer Note No. 22 of the notes to financial statements)

17 AÝ` ì`` OTHER EXPENSES (` hµOmamo§ _| ` in thousands) Mmby df© Current Year JV df© Previous Year Particulars {ddaU 2018-19 2017-18 {H$am`m Rent 755 755 _aå_V Ed§ aI-aImd Repairs & Maintenance 52 56 {ZXoeH$m|§ H$m ~¡RH ewëH Directors Sitting fees 150 123 boIm-narjH$ H$mo ^wJVmZ Payment to Auditor: boIm-narjm ewëH Audit Fees 55 55 H$a boIm-narjm ewëH Tax Audit Fees 35 35 AÝ` _X| Other Matter – 11 90 101 EE_gr Ed§ S>rnr à^ma AMC & DP Charges 398 221 Egmo{gEeZ gXñ`Vm ewëH$ Association Membership Fee 62 90

272 (` hµOmamo§ _| ` in thousands) Mmby df© Current Year JV df© Previous Year Particulars {ddaU 2018-19 2017-18 ~moS>©/boIm-narjm g{_Vr/dm{f©H$ _hmg^m ì`` Board/Audit Committee/AGM Expenses 51 38 ~rEgB©/EZEgB© Xbmbr H$mamo~ma ì`` BSE/NSE broking business expenses 457 461 n[adhZ à^ma Conveyance Charges 175 218 Hw$[a`a/S>mH$ à^ma Courier/Postage Charges 126 125 grEgAma ì`` CSR expense 1,290 1,527 {~Obr à^ma Electricity Charges 90 90 _moQ>a H$ma aI-aImd Motor Car Maintenance 320 277 _wÐU Ed§ boIZ gm_J«r Printing & Stationery 87 70 ì`mdgm{`H Ed§ {d{YH ewëH Professional & Legal fees 181 179 Qo{b\$moZ à^ma Telephone Charges 192 228 gËH$ma/H$mamo~ma {dH$mg ì`` Entertainment/Business Dev. Expenses 9 12 {d{dY ì`` Miscellaneous Expenses 193 132 AmaAmogr \$mBqbJ ROC Filing 24 – OrEgQ>r ì`` GST Expenses 117 – EZEgS>rEb S>r_¡Q> NSDL Demat 55 – 4,875 4,703 {Q>ßnUr: 1. H§ nZr Zo df© Ho Xm¡amZ `12.90 (JV df© `15.27 bmI) bmI H$m ì`` grEgAma ì`` Ho ên _o§ {H `m Am¡a grEgAma CÔoí` hoVw {H E JE ì`` H$s JB© am{e H$m H$mnmo©aoeZ ~¢H Am{W©H {dH$mg \$mC§SoeZ (Omo _yb H§$nZr Ho$ gh`moJr gyMr~Õ BH$mB© h¡&) 2. df© Ho Xm¡amZ H§ nZr Ûmam grEgAma {HŒ `mH bmnmo§ na {H$`m J`m ì`` `12.90 bmI (JV df© `15.27 bmI) h¡&

Notes: 1. The Company has during the year incurred a sum of `12.90 lakhs as CSR Expenses (Previous year `15.27 lakhs) and paid the sum to Corporation Bank Economic Development Foundation (in collaboration with its parent Company which is a listed entity) to incur the expenses for the purposes of CSR. 2. Gross amount required to be spent by the Company on CSR activities during the year `12.90 lakhs (Prev. year `15.27 lakhs) df© Ho Xm¡amZ {ZåZdV na IM© H$s JB© am{e (` bmI _o§) Amount (in `lakhs) spent during the year on - ZH Xr _o§ ZH$X ^wJVmZ hoVw Hw$b In cash Yet to be paid in cash Total (i) H§ ñQ—ŠeZ/ {H gr AmpñV`mo§ H$m AO©Z 0 0 0 Construction / Acquisition of any asset (0) (0) (0) (ii) Cnamoº (i) Ho Abmdm AÝ` CÔoí` 0 on purpose other than (i) above (12.90) (0) (12.90) 0 Total Hw$b (12.90) (0) (12.90)

3. Ý`yZV_ Xo` ^mdr nÅm {H am`m {ZåZdV h¡ Minimum future lease rentals payable are: 2018-19 2017-18 H$)/a) EH df© Ho A§Xa Xo` Payable within one year 755 755 I)/b) EH df© Ed§ nm§M df© Ho A§Xa Xo` Payable within one year & five years – – J)/c) nm§M df© Ho ~mX Xo` Payable after five years – –

ANNUAL REPORT 2018-19 273 18 à{V eoà AO©Z EARNING PER SHARE (` µhOmam| _o| in thousands) Mmby df© Current Year JV df© Previous Year Particulars {ddaU 2018-19 2017-18 (H /A) B©pŠdQ>r eoàYmaH$m| H$mo {Z`moÁ` bm^ Profit attributable to Equity Shareholders 76,839 40,112 (I/B) df© Ho Xm¡amZ ~H$m`m B©pŠdQ>r eoàmo§ H$s g§»`m No. of Equity Shares outstanding during the year 75,000 75,000 (J/C) àËòH B©pŠdQ>r eoà H$m A§{H$V _yë` (`) Face Value of each Equity Share (`) 10 10 (K/D) à{V eoà _yb Ed§ VZyH¥$V AO©Z (`) Basic & Diluted earning per Share (`) 1.02 0.53

19 H§ nZr Ho g^r H _©Mmar H$mnmo©aoeZ ~¢H go à{V{Z`w{º na h¢ Am¡a ~¢H H$s H _©Mmar ^{dî` {Z{Y Ho gXñ` h¢ Am¡a ~¢H H$s no§eZ {Z{Y Ho ^r gXñ` h¢, BZ XmoZmo§ H$mo Am` H$a A{Y{Z`_, 1961 Ho A§VJ©V AmZo dmbo Ý`mg Ho ê n _o§ _mÝ`Vm-àmßV h¡& no§eZ {Z{Y Ho g§~§Y _o§, no§eZ {dH ënXmVmAmo§ Ho doVZ go 10% Ho _m{gH A§eXmZ Ho Abmdm ~¢H , no§eZ Xo`VmAmo§ H$s Xo`VmAmo§ H$s ny{V© hoVw ~r_m§{H H _yë`m§H Z Ho AmYma na EH _wíV ê n go {Z{Y _o§ A§eXmZ H aVm h¡& godm{Zd¥{Îm bm^ H$m àmdYmZ H$mnmo©aoeZ ~¢H Ûmam {H$`m OmVm h¡& Bgr àH$ma, CnM` AmYma na NwÅr ZH XrH aU H$m àmdYmZ H$mnmo©aoeZ ~¢H Ûmam {H$`m OmVm h¡ Am¡a AV… godm{Zd¥{Îm Xo` H$mo H§ nZr Ûmam Xo`Vm Ho ê n _o§ _mÝ`Vm Zht Xr JB© h¢& All the employees of the Company are on deputation from Corporation Bank and are the members of Bank’s Staff Provident Fund and also the members of Bank’s Pension Fund, both are recognised as Trusts coming under Income Tax Act, 1961. In regard to Pension Fund, apart from the monthly contribution of 10% of the salary of pension optees, the Bank contributes to the Fund in lump sum, based on the actuarial valuation to meet the pension liabilities. The provision for retirement benefits is made by Corporation Bank. Similarly provision for Leave Encashment and Gratuity on accrual basis is made by Corporation Bank and hence retirement dues are not recognised as a liability by the Company.

20 àI§S [anmo{Q>ªJ… H§ nZr AnZm H$mamo~ma _w»`V… ^maV H$s joÌr` n[a{Y Ho A§Xa H$aVr ahr h¡& VXZwgma, {dÎmr` {ddaU ^m¡Jmo{bH àI§S Ho AmYma na àI§Sr` gyMZm H$m àmW{_H AmYma g§b¾ bm^-hm{Z boIm VWm VwbZ-nÌ Ho AZwgma h¡ {Og_o§ ^maVr` gZXr boImH$ma g§ñWmZ Ûmam Omar boIm§H$Z _mZH (EEg-17) "àI§S [anmo{Q>ªJ' Ho AYrZ `Wm Ano{jV g^r àmW{_H àH QZ O¡go àI§S amOñd, àI§S n[aUm_, àI§S AmpñV`m±, àI§S Xo`VmE§ Am{X {XE JE h¢& BgHo Abmdm, H§ nZr Xmo AbJ-AbJ H$mamo~a {H«$`mH bmnmo§ AWm©V² 1. å`wMwAb \§ S CËnmXmo§ Ho g§{dVaU Am¡a 2. O_m à_mUnÌmo§, Q—oµOar {~b Am¡a {XZm§{H V gaH$mar à{V^y{V`mo§ Ho boZ-XoZ _o§ bJr h¡& df© Ho$ Xm¡amZ H§$nZr Ho$ nmg g§ñWmJV {ZXoeH$m| Ho$ eo`a ~«moqH$J H$m ì`dgm` {H$`m h¡& VWm{n boIm§H$Z _mZH$-17 Ho$ AZwgma `h ì`dgm` AbJ go [anmoQ>© {H$E OmZo hoVw nmÌ Zht h¡& AV… Cn`w©º Xmo H$mamo~ma àI§Smo§ na AmYm[aV àmW{_H$ àI§Sr` [anm{Q>ªJ {ZåZdV h¡… Segment Reporting: The Company has been predominantly carrying on its business within the territorial limits of India. Accordingly, the primary basis of segmental information on the basis of geographical segment in the financial statement is as per the attached Profit and Loss account and Balance Sheet that give all the necessary primary disclosures such as Segment Revenue, Segment Result, Segment Assets, Segment Liabilities, etc., as required under Accounting Standard (AS-17) “Segment Reporting” issued by the Institute of Chartered Accountants of India.

Further the Company is engaged in the business of two separate business activities, viz. 1. Distribution of Mutual Fund Products and 2. Dealing in Certificate of Deposits, Treasury Bills and Dated Govt. Securities. The Company also has a business segment of sharebroking for institutional investors during the year. However the business does not qualify for reporting as a separate segment based in parameters of AS-17. Therefore, the primary segmental reporting based on the above mentioned two business segments is as under:

274 31 _mM© 2019 VH$ Ed§ H$mo g_mßV df© Ho${bE IÊS>r` gyMZmAmo H$m gmam§e Summary of the Segmental information as at and for the year ended 31st March, 2019 (` hµOmamo§ _| ` in thousands) 2018-19 2017-18

O_m O_m {ddaU Particulars Xbmbr Ed§ à_mUnÌ/Q—o. {~b/ Xbmbr Ed§ à_mUnÌ/Q—o. H$_reZ ì`mnma Hw$b Total H$_reZ ì`mnma Hw$b Total Broking and gaH$mar à{V^y{V`mo§/ Broking & {~b/gaH$mar à{V^y{V`mo§/ Commission BpŠdQ>r _o§ boZ-XoZ Commission BpŠdQ>r _o§ boZ-XoZ Business Dealing in CDs/T.Bills/ Business Dealing in CDs/T.Bills/ Govt. Securities/Equity Govt. Securities/Equity amOñd Revenue ~mø amOñd External Revenue 681 92,209 92,890 1,341 57,656 58,997 KQmE§: A§VIªS>r` amOñd Less: Inter-segment Revenue – – – – – – Omo‹So§ : A{d{ZYmZr` Am` Add: Un-allocable Income – – 4,437 – – 8,678

Hw$b amOñd Total Revenue – – 97,327 – – 67,676 n[aUm_ Results IÊS>r` n[aUm_ Segment Result 73 9,921 9,995 299 9,848 10,077

KQmE§: ã`mO Ed§ {\${ZqeJ à^ma 1,486 Less: Interest and Finishing charges – – 447 – – Omo‹So§ : ã`mO amOñd Add : Interest Revenue – – – – – – H$a nyd© bm^ Profit beofre tax – – 86,855 – – 56,113 KQmE§ : H$a ì`` Less : Tax Expenses – – 10,015 – – 16,001 H$amonam§V bm^ Profit after Tax – – 76,839 – – 40,111 AÝ` gyMZm Other Information àI§S AmpñV`m± Segment Assets 11,375 1,139,157 1,150,532 11,225 1,040,208 1,051,433 AZm~§{QV >AmpñV`m± Unallocated Assets – – 99,696 – – 119,323

Hw$b AmpñV`m± Total Assets – – 1,250,228 – – 1,170,756 àI§S Xo`VmE§ Segment Liabilities AZm~§{Q>>V Xo`VmE§ – – 3,723 – – 1,088 Unallocated Liabilities Hw$b Xo`VmE§ Total Liabilities 3,723 – – 1,088 ny±OrJV ì`` Capital Expenditure AZm~§{Q>V ny±OrJV ì`` Unallocated Capital Expenditure – – – – 450

_yë`õmg/n[aemoYZ Depreciation/ – – 368 – – 746 Amortisation AZm~§{Q>V _yë`õmg Ed§ n[aemoYZ Unallocated Depreciation and – – 368 – – 1,196 Amortisation

ANNUAL REPORT 2018-19 275 21 H§$nZr, H$mnmo©aoeZ ~¢H Ho nyU© ñdm{_Ëd dmbr AZwf§Jr h¡& H§$nZr H$m g_J« n`©dojU Ed§ {Z`§ÌU BgHo {ZXoeH _§Sb Ho hmWmo§ _o§ h¡& H§$nZr Ho à~§Y {ZXoeH g{hV g^r à_wI à~§YH$s` H$m{_©H Omo H§$nZr _o§ H$m_ H a aho h¢, do H$mnmo©aoeZ ~¢H go à{V{Z`w{º na AmE h¢& do H§$nZr _o§ nyU©H$mbrZ H$m`© H a aho h¢& The Company is a fully owned subsidiary of Corporation Bank. The overall supervision and control of the Company vests with the Board of Directors. All the key managerial personnel including the Whole time Director & Co. Secretary of the Company are on deputation from Corporation Bank. They are working full-time with the Company. 22 g§~§{YV nmQr© àH$Q>Z RELATED PARTY DISCLOSURES g§~§{YV nmQr© àH$QZ na boIm§H Z _mZH (EEg)-18 Ho n¡am 9 Ho AZwgma, amÁ` gaH$ma Ho {Z`§ÌUmYrZ CÚ_ hmoZo Ho ZmVo H§$nZr Ho {bE `h Ano{jV Zht h¡ {H dh gaH$ma Ho {Z`§ÌUmYrZ AÝ` CÚ_mo§ Ho gmW g§~§{YV nmQr© boZ-XoZmo§ Am¡a Eogo CÚ_mo§ Ho gmW boZ-XoZmo§ H$m àH QZ H ao§& AV: H$mnm}aoeZ ~¢H$ (_yb H§$nZr) Ho$ gmW boZXoZ H$mo àH$Q> Zht {H$`m J`m h¡& As per Para 9 of the Accounting Standard (AS)-18 on Related Party Disclosures, the Company being a state-controlled enterprise is not required to make disclosures of related party transactions with other state controlled enterprises and transactions with such enterprises. Hence, transactions with Corporation Bank (Parent Company) is not disclosed. df© Ho Xm¡amZ g§~§{YV nm{Q>©`mo§ Ho gmW {H$E JE boZ-XoZ: Details of Related Party transactions during the year: g§~§{YV nm{Q©`mo§ H$m Zm_ Name of Related Parties g§~§Y H$m ñdê$n Nature of Relationship H$mnm}aoeZ ~¢H$ Corporation Bank YmaH$ H§$nZr Holding Company E. AmB©. Ooåg A. I. James nyU©H$m{bH$ {ZXoeH$ Ed§ H§$nZr g{Md (10 OyZ, 2014 go-AmO H$s VmarI VH$) Whole-time Director & Co. Secretary (10 June, 2014 - Till Date) XrnH$ a§OZ Deepak Ranjan àYmZ {dÎm A{YH$mar Chief Financial Officer df© Ho Xm¡amZ H§$nZr Ûmam g§~§{YV nm{Q>©`mo§ Ho gmW {H$E JE boZ-XoZ: Transactions that have taken place during the year with related parties by the Company: (` µh‹Omam| ‘| ` in thousands)

g§~§{YV nm{Q>©`mo§ H$m Zm_ df© Ho Xm¡amZ boZ-XoZ H$m ñdê$n 2018-2019 Name of Related Parties Nature of Transaction during the year H$mnmo©aoeZ ~¢H gmd{Y O_mAm| na ã`mO Corporation Bank Interest on Fixed Deposits 2,497 H$mnmo©aoeZ ~¢H {H$am`m `m bmJV eo`[a¨J Corporation Bank Rent Cost Sharing* 755 H$mnmo©aoeZ ~¢H {~Obr VWm aIaImd eo`[a¨J Corporation Bank Electricity and Maintenance Cost Sharing 126 H$mnmo©aoeZ ~¢H à{V{Z`wpŠV na AÝ` ñQ>m\$ Ho$ bmJV H$s à{Vny{V© Corporation Bank Reimbursement of cost of other staff on deputation 2,637 E. AmB©. Ooåg {ZXoeH$m| H$mo nm[al{_H$ A. I. James Directors Remuneration 1,636 {XnH$ a§OZ nm[al{_H$ Deepak Ranjan Remuneration 956

* n[aga H$m {H$am`m _yb ~¢H$ Ûmam {ZYm©[aV Ho$ ê$n _| ^wJVmZ {H$`m OmZm Omar h¡Ÿ& The Rent on Premises continues to be paid as prescribed by the Parent Bank

276 23 Ohm± VH pŠb`qaJ H$mnmo©aoeZ Am°\ B§{S`m {b{_QoS Ho B©{¹$Qr eoàmo§ _o§ {H E JE `50 bmI {Zdoe H$m g§~§Y h¡, VwbZ-nÌ H$s VmarI H$mo BgH$m ~mµOma _yë` nVm Zht bJm`m Om gH Vm My±{H ò eoà gyMr~Õ Zht h¢& VWm{n, bmJV na _yë` {b`m J`m h¡ Am¡a ZdrZV_ CnbãY dm{f©H {anmoQ© Ho AZwgma Cº {Zdoe Ho _yë` _o§ H$moB© {JamdQ `m õmg Zht hþAm h¡& As regards the Investment of `50 lakhs made in Equity Shares of Clearing Corporation of India Limited, market value as on Balance Sheet date is not ascertainable, as the shares are not listed. However, as certified by the management the value is taken at cost and there is no deterioration or depreciation in the value of Investment as ascertained from the latest available audited annual report. 24 _yë`õmg Am¡a g^r kmV Xo`VmAmo§ Ho {bE àmdYmZ n`m©ßV h¡ Am¡a Amdí`H am{e go A{YH Zht h¡& The provision for depreciation and all known liabilities are adequate and not in excess of the amounts reasonably necessary. 25 {d{dY XoZXmamo§, G$Umo§ Ed§ A{JŒ_mo§ H$s eofam{e, nwîQrH aU Am¡a n{aUm_r g_m`moOZ, `{X H$moB© hmo Vmo CgHo AYrZ h¡& Balances of Loans & Advances are subject to confirmation and consequential adjustments, if any. 26 H§$nZr Ho$ H$_©Mmar BgH$s hmopëS§J H§$nZr, H$mnm}aoeZ ~¢H$ go à{V{Z`wpŠV na h¢Ÿ& H$mnm}aoeZ ~¢H$ BZ H$_©Mm[a`m| Ho${bE g_`-g_` na bmJy J«oÀ`wQ>r>, ZH$XrH$aU Am¡a Eogo AÝ` godm{Zd¥{Îm bm^m| Ho$ {bE àmdYmZ H$aVm h¡/Bg{bE H§$nZr H$mo H$_©Mm[a`m| H$s J«oÀ`wQ>r _| `moJXmZ Zht H$aZm n‹S>Vm h¡ Am¡a Bg{bE EEg-15 Ho$ àmdYmZ bmJy Zht hmoVo h¢Ÿ& The Staff of the Company are employees on deputation from its holding Company, the Corporation Bank. The Corporation Bank makes provisions for gratuity, leave encashment and such other retirement benefits as applicable from time to time for these employees. Hence the Company does not have to contribute towards gratuity of the employees and hence provisions of AS-15 are not applicable. 27 bm^ VWm hm{Z {ddaU Ho$ {Z_m©U hoVw gm_mÝ` {ZX}em| Ho$ AZwÀN>oX 5 (viii) Ho$ A§VJ©V {Z{X©îQ> {dXoer _wÐm _| boZXoZ na A{V[aŠV gyMZm$ Additional information on transactions in foreign currency as specified under Para 5 (viii) of the General Instructions for preparation of statement of profit and loss dV©_mZ df© JV df© Current Year Previous Year 2018-19 2017-18 H$ÀMo _mb, ny±OrJV dñVwAm|, KQ>H$m| Am¡a H$bnwOm] Ho$ {bE grAmB©E\$ AmYma na JUZm {H$E JE Am`mV H$m _yë`Ÿ& NIL NIL Value of imports calculated on CIF basis for raw materials, capital goods, components and eyÝ` eyÝ` spare parts. am°`ëQ>r, noeoda `m VH$ZrH$s nam_e© ewëH$, nVm, ã`mO `m AÝ` _m_bm| na {dXoer _wÐm _| ì``Ÿ& Expenditure in foreign currency on royalty, professional or technical consultancy fees, eyÝ` NIL eyÝ` NIL knowhow, interest or other matters. {dÎmr` df© Ho$ Xm¡amZ Cn^moJ {H$E JE g^r Am`m{VV H$ÀMo _mb, ñnoà nmQ²>g© Am¡a KQ>H$m| H$m _yë`& Value of all imported raw materials, spare parts and components consumed during the eyÝ` NIL eyÝ` NIL financial year.

bm^m§e Ho$ H$maU {dÎmr` df© Ho$ Xm¡amZ ào{fV am{e& NIL NIL Amount remitted during the financial year on account of dividends eyÝ` eyÝ`

_mb Ho$ {Z`m©V Ho$ {bE E\$Amo~r Ho$ AmYma na JUZm H$s JB© {dXoer _wÐm _| Am`& NIL NIL Earnings in foreign exchange calculated on FOB basis for export of goods eyÝ` eyÝ` am°`ëQ>r, ã`mO, bm^m§e, nVm, noeoda `m VH$ZrH$s nam_e© ewëH$ Ho$ H$maU {dXoer _wÐm _| Am`& Earnings in foreign exchange on account of royalty, interest, dividend, knowhow, professional eyÝ` NIL eyÝ` NIL or technical consultancy fees

ANNUAL REPORT 2018-19 277 28 Ohm± H$ht Amdí`H$ g_Pm J`m, JV df© Ho$ Am§H$‹S>m| H$mo nwZ: g_y{hV, nwZ: ì`dpñWV `m nwZ: dJuH¥$V {H$`m J`m h¡& Previous year figures have been regrouped, rearranged or reclassified wherever necessary to make them comparable with those of the current year.

h_mar g§b½Z g_{XZm§{HŸV {anmoQ© Ho AZwgma As per our report of even date attached H¥ŸVo ^yQ>m emh EÊS> H§$. For Bhuta Shah & Co. Chartered Accountants gZXr boImHŸma \$_© n§OrH$aU g§. 101474W H$mn©~¢H$ {gŠ`w{aQrµO {b{_QoS Ho {ZXoeH _§Sb Ho {bE d CZH r Amoa go FRN No. 101474W For and on behalf of the Board of Directors of CorpBank Securities Limited AVwb Jmbm {~énmj {_lm Atul Gala nr. dr. ^maVr dr. _wÎmwH¥$îUZ P. V. Bharathi Birupaksha Mishra V. Muthukrishnan Partner gmÂmoXma AÜ`j Chairman Director {ZXoeH Director 048650 {ZXoeH gXñ`Vm g§§. DIN 06519925 DIN 03113886 Membership No. 048650 S>rAmB©EZ S>rAmB©EZ DIN 06884225 S>rAmB©EZ E. AmB©. Ooåg A. I. James nr. Ho$. AmMm`© Ama. lrYaZ P. K. Acharya R. Sridharan nyU©H$m{bH$ {ZXoeH$ Ed§ H§$nZr g{Md Director Director Whole time Director & Company Secretary {ZXoeH {ZXoeH DIN 06503668 DIN 08267185 S>rAmB©EZ DIN 06903375 S>rAmB©EZ S>rAmB©EZ XrnH$ Hw$_ma a§OZ ñWmZ Place : _w§~B© Mumbai Deepak Kumar Ranjan {XZm§H Dated : 10 _B© May, 2019 gr.E\$.Amo. C.F.O.

‘¢/h‘...... Am¡a ...... Am¡a...... , ’$mo{b¶mo g§. gr~rB© ...... Ho$ Ûmam H$mnm}aoeZ ~¢H$ Ho$ {d{eï> g§...... go ...... VH$ ...... B©{¹$Q>r eo¶a Ho$ YmaH$ h¢ Am¡a Zm‘m§H$Z H$aZm MmhVo h¢ VWm EVX²Ûmam {ZåZ{b{IV ì¶{º$(¶m|) H$mo Zm‘m§{H$V H$aVo h¢, {OÝh| ‘oar/h‘mar ‘¥Ë¶w hmoZo H$s pñW{V ‘| Cº$ eo¶am| Ho$ g§~§Y ‘| A§VaU Ho$ g^r A{YH$ma/Xo¶ am{e {Z{hV hmoJr& Zm‘m§{H$Vr (Zm‘m§{H${V¶m|) H$m Zm‘ Am¡a nVm/nVo Zm‘ ...... nVm ...... OÝ‘ H$s {V{W* ...... (* ¶{X Zm‘m§{H$Vr Ad¶ñH$ hmo Vmo àñVwV H$a|) Zm‘m§{H$Vr Ho$ hñVmja (d¡H$pënH$) ** Zm‘m§{H$Vr Ad¶ñH$ h¢, CZHo$ A{^^mdH$ h¢… Zm‘ ...... nVm ...... (** ¶{X bmJy Zht Vmo H$mQ> X|) YmaH$(H$m|) Ho$ hñVmja hñVmja… 1...... 2...... 3...... Zm‘… 1...... 2...... 3...... nVm ...... {XZm§H$ … ...... /...... /201

Xmo gm{j¶m| Ho$ hñVmja Zm‘ Am¡a nVm 1...... 1...... 2...... 2...... {XZm§H$… {XZm§H$ g{hV hñVmja AZwXoe… 1. Ho$db AnZr Amoa go AHo$bo ¶m g§¶wº$ ê$n go AmdoXZ H$aZodmbo/eo¶a aIZodmbo ì¶{º$ hr Zm‘m§H$Z H$a gH$Vo h¢& gmogmBQ>r, Q´>ñQ>, H§$nZr {ZH$m¶, ^mJrXmar ’$‘©, {hÝXÿ A{d^º$ n[adma Ho$ H$Vm©, ‘w»VmaZm‘m YmaH$ g{hV ì¶{º$¶m| H$mo N>mo‹S>H$a AÝ¶ Zm‘m§H$Z Zht H$a gH$Vo& AJa eo¶a g§¶wº$ ê$n go Ym[aV {H$E h¢, Vmo Zm‘m§H$Z ’$m‘© ‘| g^r hñVmja (~¢H$ Ho$ nmg n§OrH¥$V Z‘yZo Ho$ AZwgma) H$a|o& 2. eo¶am| Ho$ YmaH$ Ûmam {H$gr Ad¶ñH$ H$mo Zm‘m§{H$V {H$¶m Om gH$Vm h¡ Am¡a Eogr pñW{V ‘| YmaH$ Ûmam A{^^mdH$ H$m Zm‘ Am¡a nVm ^r {X¶m OmE& 3. Zm‘m§{H$Vr H$moB© Q´>ñQ>, gmogmBQ>r, H§$nZr {ZH$m¶, ^mJrXmar ’$‘©, {hÝXÿ A{d^º$ n[adma H$m H$Vm© ¶m ‘w»VmaZm‘m YmaH$ Z hmo& A{Zdmgr ^maVr¶ àË¶mdV©Zr¶ AmYma na Zm‘m§{H$Vr hmo gH$Vm h¡ ~eV} {H$ ^m.[a.~¡. Ûmam {XE JE AZw‘moXZ H$mo ~¢H$ Ho$ nmg n§OrH¥$V H$adm¶m hmo& 4. eo¶am| H$m A§VaU hmoZo na Zm‘m§H$Z {ZañV hmo OmEJm& 5. Zm‘m§{H$Vr Ho$ nj ‘| eo¶a H$m A§VaU H$mZyZr dm[ag Ho$ {déÕ ~¢H$ H$m d¡Y Xm{¶Ëd-‘moMZ hmoJm& 6. Zm‘m§H$Z g§~§Yr gyMZm/Zm‘m§H$Z ’$m‘© ~¢H$/~¢H$ Ho$ a{OñQ´>ma/eo¶a A§VaU EO|Q> Ho$ nmg Xmo à{V¶m| ‘| Xm¶a {H$¶m OmE, Omo CgH$s EH$ à{V eo¶aYmaH$ H$mo bm¡Q>mE§Jo& Ho$db H$m¶m©b¶ Ho$ Cn¶moJ hoVw Zm‘m§H$Z n§OrH$aU g§...... n§OrH$aU H$s VmarI…...... {Q>ßnUr… ...... Om±MH$Vm© Am¡a H$‘©Mmar Ho$ hñVmja …......

ANNUAL REPORT 2018-19 279 CORPORATION BANK NOMINATION FORM (To be ﬁ lled in by individual applying singly or jointly, only upto two persons)

I/We______and______and ______the holder of ______equity shares bearing Distinctive Nos. from ______to ______of Corporation Bank vide Folio No. CBE______wish to make a nomination and do hereby nominate the following person(s) in whom all rights of transfer and/or amount payable inrespect of shares shall vest in the event of my/our death. NAME(S) AND ADDRESS(S) OF NOMINEE(S) Name ______Address______Date of Birth * ______(* To be furnished in case the nominee is a minor) Signature of Nominee (Optional) ** The nominee is a minor, whose guardian is: Name : ______Address: ______(** To be deleted if not applicable) Signature(s) of Holders(s) Signature : 1. ______2.______3.______Name : 1. ______2.______3.______Address : ______Date : ______/______/201

Signature of two witnesses Name and Address

1. ______1. ______

2. ______2. ______Date: Signature with date

Instructions: 1. The nomination can be made by individuals’ only applying/holding shares on their own behalf singly or jointly. Non individuals including society, trust, body corporate, partnership fi rm, karta of Hindu Undivided family, holder of power of attorney cannot nominate. If the shares are held jointly, all joint holders will sign (as per the specimen registered with the Bank) the nomination form. 2. A minor can be nominated by a holder of shares and in that event the name and address of the Guardian shall be given by the holder. 3. The nominee shall not be a trust, society, body corporate, partnership fi rm, Karta of Hindu Undivided Family or a power of attorney holder. A non-resident Indian can be a nominee on a re-patriable basis, provided RBI approval granted is registered with the Bank. 4. Nomination shall stand rescinded upon transfer of share(s). 5. Transfer of share in favour of a nominee shall be a valid discharge by a Bank against the legal heir. 6. The intimation regarding Nomination/Nomination form shall be fi led in duplicate with Bank/Registrar & Share Transfer Agents of the Bank who will return one copy thereof to the shareholder.

FOR OFFICE USE ONLY Nomination Registration No. ______Date of Registration:______Remarks:______Checked by and Signature of Employee: ______

280 B©pŠdQ>r eoàm| na bm^m§e Ho$ ^wJVmZ hoVw EZEgrEM/AmaQ>rOrEg/EZB©E\$Q>r A{YXoe \$m_© (H$mJµOr ê$n _| eoàm| Ho$ _m_bo _| - eoà A§VaU EOoÝQ> _ogg© H$mdu H$§ß`yQ>a eoà àm. {b. H$mo ôO|) (S>r_¡Q> eoàm| Ho$ _m_bo _| - AnZo {S>nm°{µOQ>ar nm{Q>©{gnoÝQ> H$mo ôO|)

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ANNUAL REPORT 2018-19 281 ------NACH/RTGS/NEFT MANDATE FORM FOR PAYMENT OF DIVIDEND ON EQUITY SHARES (In case of physical shares – send to Share Transfer Agent, M/s. Karvy Computershare Pvt. Ltd.) (In case of demat shares – send to your Depository Participant)

1. First Shareholder’s Name (in Block letters) :

2. Address :

3. Regd. Folio No. : CBE ...... (If not Dematerialised) (If Dematerialised) : Client ID No……………………….: DPID No……………………..

4. Particulars of Bank Account : A. Bank Name : B. Branch Name & City or name of ¡lace (Pin code) : C. Account No. (as appearing on the Cheque Book) : D. Account Type (Please tick) : SB Current Cash Credit E. 9 Digit MICR code No. of the Bank & Branch : As appearing on the MICR cheque issued by the bank :

F. IFSC Code of the Branch :

G. Contact Details : Mobile No……………………………. E-mail id ………………………………………………..

5. Please attach a photocopy of a cheque leaf or a blank cancelled cheque issued by your Bank relating to your above account for verifying the accuracy of the code numbers.

DECLARATION

I hereby declare that the particulars given above are correct and complete. If the transaction is delayed or not effected at all for reasons of incomplete or incorrect information, I would not hold the Corporation Bank responsible. In case of NECS/RTGS/NEFT facility not being available for any reason, the account details provided above may be incorporated in the payment instrument.

Place : Date : Signature of the ﬁ rst shareholder

Certiﬁ ed that the particulars furnished above are correct as per our records.

Place : Date : Signature of the Manager of the Bank Concerned

Notes : 1. Kindly ﬁ ll all columns. Incomplete forms shall not be entertained. 2. Please ignore this form, if the same is already submitted. 3. In lieu of the Bank Certiﬁ cate to be obtained, shareholders can attach a blank ‘cancelled’ cheque or a photocopy thereof.

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àm°Šgr \$m_© na hñVmja H$aZo Am¡a àñVwV H$aZo g§~§Yr AZwXoe 1. àm°Šgr {bIV d¡Y hmoZo Ho {bE `h µOê ar h¡ {H , H . ì`{º JV eoàYmaH Ho _m_bo _o§ `h CgHo Ûmam `m {b{IV ê n _o§ {d{YdV² àm{YH¥ V CgHo AQZr© Ûmam hñVmj{aV hmo& I. g§`wº YmaH mo§ Ho _m_bo _o§ `h gXñ`-a{OñQa _o§ àW_ Zm{_V eoàYmaH Ûmam `m {b{IV ê n _o§ {d{YdV² àm{YH¥ V CgHo AQZr© Ûmam hñVmj{aV hmo& J. {H gr H mnmo©aoQ {ZH m` Ho _m_bo _o§ `h gm_mÝ` _moha AJa H moB© h¡, Ho gmW BgHo A{YH mar Ûmam hñVmj{aV Ed§ {Zînm{XV {H `m OmEJm `m AÝ`Wm {b{IV ê n _o§ {d{YdV² àm{YH¥ V CgHo AQZr© Ûmam hñVmj{aV hmo& 2. àm°Šgr H$s H moB© {bIV {Og _o§ eoàYmaH Ho A§JyRo H m {ZemZ h¡, d¡Y hmoJr ~eVo© `h {H gr OO, _{OñQ—oQ, a{OñQ—ma `m g~-a{OñQ—ma, Eí`moa¢g `m {H gr AÝ` gaH mar amOn{ÌV A{YH mar `m H mnmo©aoeZ ~¢H Ho A{YH mar Ûmam A{Yà_m{UV H$s J`r hmo& 3. àm°Šgr Ho gmW H . _w»VmaZm_m `m AÝ` àm{YH ma (`{X H moB© h¡) {OgHo VhV `h hñVmj{aV {H `m J`m `m ------I. ZmoQar npãbH `m {H gr _{OñQ—oQ Ûmam à_m{UV Cg _w»VmaZm_m `m àm{YH ma H$s à{V _hmg^m àma§^ hmoZo H$s VmarI go Mma {XZ nhbo AWm©V²  gmo_dma 24 OyZ, 2019 H mo H m`m©b` g_` H$s g_mpßV AWm©V² Anam• 5.00 ~Oo VH `m CgHo nhbo H mnmo©aoeZ ~¢H Ho àYmZ H m`m©b` _o§ O_m H$s OmZr Mm{hE& 4. `{X g§~Õ _w»VmaZm_m H mnmo©aoeZ ~¢H `m BgHo eoà A§VaU EOo§Q Ho nmg nhbo hr n§OrH¥ V {H `m Om MwH m h¡ Vmo _w»VmaZm_o H$s n§OrH aU g§»`m VWm Eogo n§OrH aU H$s {V{W Cp„{IV H$s OmZr Mm{hE & 5. H moB© ^r àm°Šgr V~ VH d¡Y Zht hmoJr O~ VH {H Cg na {d{YdV² ñQ¡ån Z bJm`m OmE& 6. ~¢H _o§ O_m H$s JB© àm°Šgr {bIV Aà{Vg§haUr` VWm A§{V_ hmoJr& 7. `{X àm°Šgr {bIV d¡H pënH ê n _o§ Xmo àmpßVH Vm©Amo§ Ho nj _o§ àXmZ H$s JB© h¡ Vmo EH go A{YH \ m_© {Zînm{XV Zht {H `m OmEJm& 8. eoàYmaH {OgZo àm°Šgr {bIV {Zînm{XV H$s h¡, Eogr {bIV {Og ~¡RH go g§~§{YV h¡ Cg_o§ ì`{º JV ê n go dmoQ SmbZo H m hH Xma Zht hmoJm& 9. H mnmo©aoeZ ~¢H Ho {H gr H _©Mmar AWdm A{YH mar H mo {d{YdV² àm{YH¥ V à{V{Z{Y `m àm°Šgr Ho ê n _o§ {Z`wº Zht {H `m OmEJm& 10. H moB© ^r àm°Šgr {bIV V~ VH d¡Y Zht hmoJm O~ VH {H `h \ m_© ""~r'' _o§ Z hmo& ANNUAL REPORT 2018-19 283 ------Corporation Bank Regd. Folio No. CBE ...... Head Offi ce : Mangaluru – 575 001 (If not Dematerialised) FORM ‘B’ DPID No...... Client ID No...... FORM OF PROXY (If Dematerialised) (To be fi lled in and signed by the shareholder)

I/We, ...... Resident of ...... in the District of ...... in the State of...... being a shareholder/s of CORPORATION BANK, hereby appoint Shri/Smt...... resident of ……...... ………...... in the district of ...... in the State of...... or failing him/her, Shri/Smt...... resident of ...... in the District of ...... in the State of ...... as my/our proxy to vote for me/us on my/our behalf at the ANNUAL GENERAL MEETING of the shareholders of the Bank to be held at 10.30 a.m. on Saturday, 29th June, 2019, at MILLENNIUM BUILDING, CORPORATION BANK, HEAD OFFICE, MANGALURU and at any adjournment thereof. Please affi x Signed this …………………….. day of ………………………… 2019. fi fteen paise revenue stamp ...... Signature of the Proxy Signature of the fi rst holder/sole holder Name : ...... Address : ......

INSTRUCTIONS FOR SIGNING AND LODGING THE PROXY FORM 1. The instrument of proxy to be valid, a. in case of an individual shareholder, shall be signed by him/her or by his/her attorney duly authorised in writing. b. in the case of joint holders, shall be signed by the shareholder fi rst named in the Register of Members or by his/her attorney duly authorised in writing. c. in the case of a body corporate, shall be signed by its offi cer and executed under its Common Seal, if any, or otherwise signed by its attorney duly authorised in writing. 2. An instrument of proxy, in which the thumb impression of the shareholder is affi xed, will be valid provided it is attested by a Judge, Magistrate, Sub-Registrar of Assurances or any other Government Gazetted Offi cer or an offi cer of Corporation Bank. 3. The proxy together with a. the power of attorney or other authority (if any) under which it is signed or b. a copy of that power of attorney or authority, certifi ed by a Notary Public or a Magistrate, should be deposited at the Head Offi ce of Corporation Bank, not later than FOUR DAYS before the date of the Annual General Meeting, i.e. on or before closing hours i.e. 5.00 p.m. of Monday the 24th June, 2019. 4. In case the relevant power of attorney is already registered with Corporation Bank or its Share Transfer Agent, the registration number of the power of attorney and the date of such registration may be mentioned. 5. No proxy shall be valid unless it is duly stamped. 6. An instrument of proxy deposited with the Bank shall be irrevocable and fi nal. 7. In the case of an instrument of proxy granted in favour of two grantees in the alternative, not more than one form shall be executed. 8. The shareholder who has executed an instrument of proxy shall not be entitled to vote in person at the meeting to which such instrument relates. 9. No person shall be appointed as duly authorised representative or a proxy who is an offi cer or an employee of CORPORATION BANK. 10. No instrument of proxy shall be valid unless it is in Form “B”.

284

CORPORATION BANK 0pg WF TMfCM: 11 ¶f, T - 575001 Head Office: Mangala Devi Temple Road, MANGALURU-575001.

:i / SLN0:.

qft Tm1T * ffrfT ——T ATTENDANCE SLIP-CUM-ENTRY PASS FOR ANNUAL GENERAL MEETING Date : 29th June, 2019 29 , 2019 Time :10.30 A.M. 9 10.30 Place : Auditorium, Millennium Building Corporation Bank, TF : PIP, 'e1I14 TFT, q'i'.4i'i TFI vqlciq Head Office, Mangaluru - 575001 1 1 Ic.<) 575_001 s*-i1r ti ATTENDANCE SLIP (Tr * PTZ iPTI fZff Wt, To be surrendered at the time of entry) (9N 7W NeM 4 NAME IN BLOCK LETTERS) 3Tl T. 1T1 ( Member! SI1t Proxy! 31fT ithfi FOLIO/DPID/CLIENT ID NO. No. of Shares Authorised Representative)

it I1II I Note: Entry restricted only to the first named shareholder in case of joint holding.

iifm Signature of Shareholder/Proxy/Representative present

T~T IT-51 ENTRY PASS

('nTr 7W 319t 4 NAME IN BLOCK LETTERS) /A t r, q, 31Tt . Member! tzRt Proxy! 317 TIf?1i FOLIO/DPID/CLIENT ID NO. No. of Shares Authorlsed_Representative)

T:t Sl.No:

3*-TT * IM'II1 Signature of Shareholder/Proxy/Representative present

F1IEVEN TUR3ITI USER ID gIdcl/PASSWORD

(—T W 9) (E-VOTING EVENT NUMBER)

3J rj t qftf t ff iiei I ii i /ifPrI1W1EA ft ft miii i trif I f q , T I lQ'dll1l' 3B IYl/ * a9 1TI 31Tff ——i ff9iTftl Shareholders/Proxy holders/Representatives are requested to produce this Attendance Slip-cum-entry Pass duly signed, for admission to the meeting hail. The Entry Pass portion will be handed back to the Shareholders/Proxy holders/ Representatives, who should retain it till the conclusion of the meeting. The admission may, however, be subject to further verification/checks, as may be deemed necessary. Under no circumstances, will any duplicate Attendance Slip-cum-Entry Pass be issued at the entrance to the meeting hall.

P.S. : No gifts/gift coupons will be distributed at the meeting. Please bring your copy of the enclosed Notice for the Meeting.