Ref: STEX/SECT/2020

August 04, 2020

The Relationship Manager, National Stock Exchange of Limited DCS-CRD Exchange Plaza, 5th Floor, BSE Limited, Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra – Kurla Complex, Dalal Street, Fort, Bandra (East), Mumbai 400 001 Mumbai 400 051

BSE Scrip Code: 500480 NSE Symbol: CUMMINSIND

Subject: Board Meeting for approval of unaudited standalone and consolidated financial results for the quarter ended June 30, 2020.

Dear Sir/ Madam,

In terms of Regulation 29 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI LODR’), we wish to inform you that a meeting of Board of Directors of the Company will be held at Pune on Wednesday, August 12, 2020, through Video Conferencing to consider and approve the unaudited standalone and consolidated financial results of the Company for the quarter ended June 30, 2020 .

Also, we are enclosing the copies of the notice published in newspapers Business Standard (All editions) and Loksatta (Pune edition), both the newspapers having electronic editions, on August 04, 2020, in terms of Regulations 47 of the SEBI LODR for the above-mentioned details.

Kindly take this intimation on your record.

Thanking you,

Yours faithfully, For Cummins India Limited

Vinaya A. Joshi Company Secretary & Compliance Officer

Encl. As above (This letter is digitally signed).

Cummins India Limited Registered Office Cummins India Office Campus Tower A, 5 th Floor, Survey No. 21, Balewadi Pune 411 045 Maharashtra, India Phone +91 20 67067000 Fax +91 20 67067015 cumminsindia.com [email protected] CIN : L29112PN1962PLC012276

6 ECONOMY & FINANCE MUMBAI | TUESDAY, 4 AUGUST 2020 > HSBC profit Centre launches new set of BoI’s pre-tax halves in H1 profit jumps to $5.6 billion 10-year benchmark bonds HARRY WILSON & ALFRED LIU fourfold 3 August Govt may raise redemption limit later to avoid issuance of such number of securities ABHIJIT LELE REPORT CARD HSBC Holdings is speeding up the shakeup ANUP ROY That will push up yield. Mumbai, 3 August of its global business and warning loan Mumbai, 3 August THE MOVEMENT The high-borrowing pro- Q1FY21 Q1FY20 losses may reach $13 billion this year as it 10-Year G-sec yield (%) gramme has upset normal rules of Bank of India (BoI) on PBT (~cr) 1,332.4 359.3 battles the economic fallout from the he Centre has introduced a investing for many in the market. Monday reported a fourfold Net profit (~cr) 843.6 242.6 coronavirus pandemic. new set of 10-year bench- The original plan was to raise ~7.8 jump in profit before tax (PBT) NII (~cr) 3,481.1 3,485.4 The Asia-focused lender reported T mark bonds, within 10 trillion for FY21, but the target was to ~1,332.45 crore in the first-half profit that missed estimates after months of raising the earlier one. subsequently raised by 53.85 per quarter ended June (Q1Fy21) Provisions (~cr) 1,512.0 1,911.9 they more than halved to $5.6 billion because This comes amid record borrow- cent, to ~12 trillion. In the first half, owing to rise in other income and contingencies of higher loan losses. The bank said it was ings, which have limited the gov- ~5.16 trillion was raised, with the and lower provisions and con- Net NPA 3.58% 5.79% looking at further measures to boost ernment’s ability to ensure that green shoe option used to raise a tingencies. The public sector CAR 12.765 14.35% performance, including investing more in redemptions do not bunch up. further ~60,000 crore. bank had posted PBT of ~359.3 Asia and cutting back in the US. In Friday’s auction, the govern- The RBI has also engaged in crore in the June quarter last “We do need to take costs down, as a ment raised ~18,000 crore by yield management by switching financial year. result of the revenue pressures” from the introducing new 10-year bonds at short-term bonds with longer dated The lender's net profit for STOCK GAINS coronavirus, said Chief Financial Officer a yield of 5.77 per cent. The secur- bonds. The 10-year bond launched the reporting quarter rose to Ewen Stevenson in an interview with ity issued in May had a cut-off in May still has ~16,000 crore of ~843.6 crore from net profit of Bloomberg Television after HSBC lifted its coupon rate of 5.79 per cent, and room left on that, which could be ~242.6 crore in the year-ago estimated bad debt charge to the range of $8 is the most traded in the market used to switch auctions during the period. billion to $13 billion for the year. The shares because of its liquidity. rest of the year, said Prasanna. The bank’s stock closed were down 4.2 per cent at 9 am in London. This has been the shortest rul- tions. Given the increased weekly Typically, such benchmark set- Additionally, the 10-year secur- 2.02 per cent higher at ~48.05 HSBC has been seeking to pivot away ing benchmark ever, and the gov- auction size, the 10-year bond ting used to happen once a year. ity is the ninth security to be made apiece on the BSE. The bank’s from Europe and the US to expand its busi- ernment may have to increase its issued in May had already reached Bond dealers say such this may available to foreign portfolio capital adequacy ratio stood ness in the fast-growing Chinese market. redemption limit later to avoid ~1.04 trillion in total outstanding, create confusion in the markets investors under the fully access- at 12.76 per cent as of June 30. The lender, which has been singled out issuance of such number of secur- due to which the government pro- on rate setting. ible route. Therefore, this will also The net interest income by Washington for its backing of Beijing, ities. “The government typically bably decided to issue a new 10- Further, when the outstanding increase the availability of secur- (NII) remained almost flat said it will continue to shift its capital caps total issuances in any par- year bond so early into the fiscal touches ~1.2 trillion, people may ities for foreign investors to take year on year at ~3,481.1 crore towards Asia, which provided nearly all of ticular security at ~1.2 trillion, to year,” said B Prasanna, head not take positions on existing positions in, and boost foreign in Q1FY21, from ~3,485.4 crore its earnings. BLOOMBERG avoid the bunching up of redemp- (treasury), ICICI Bank. bonds fearing a stop in issuances. currency flow. in the same quarter a year ago. Net interest margin (NIM) Bank to raise for domestic operations fell to 2.73 per cent in June 2020 ~8,000 crore against 3.03 per cent in the Bank of India plans to raise year-ago month. Bank’s ~7,000-8,000 crore to meet The imprint of financial stability in RBI policy Managing Director and Chief regulatory norms and support Executive A K Das said the business growth. It may tap nature, it will be a surprise if strict rule- based approach. The focus of central bank is likely to tion target”. Nowhere in the which can be done either decline in NIM was due to fac- equity market with qualified the central bank cuts again RBI over the past several maintain adequate liquidity, MPC’s mandate is there any ref- through a process of gradual- tors like somewhat muted institutional placement, raise even if it’s token. months has exactly been doing continuing to address financial erence to its role in liquidity ism as against a cold turkey growth in loan book and money through additional tier The issue of financial sta- that with great success. One stability and addressing the management, which remains approach, regulatory changes efforts towards effective rate I bonds. The government bility in monetary policy has such defining example is the vexed issue of moratorium internal to the functioning of should not be ushered in at a transmission. However, the participation in infusing always been an unsettled issue, current liquidity through a balanced the Bank consistent with its frantic pace disruptive of econ- other income comprising fees capital is also one option if ever since the global financial framework, which communication with policy stance. As Goodhart omic activity. With the pan- and commissions rose to Centre decides on recapit - crisis. For example, the Federal has achieved the the market. (2010) observes, the width of demic now occurring, it is natu- ~1,707.2 crore in Q1FY21 from alisation plans, said Managing Open Market Committee, even unthinkable task of Interestingly, even the policy corridor acts as an ral that such measures are ~1,194.7 crore in Q1FY20. Director & Chief Executive 12 years after global financial fastest rate trans- as the RBI has taken independent instrument for partially relaxed to loosen the The bank has estimated A K Das. BS REPORTER crisis, has reached no agree- mission in the short- the Covid crisis with a the central bank in a crisis and stranglehold of deflationary the impact of such wage revi- COMMENT ment to date to change the pol- est possible time. RUN -UP TO strong response, some an asymmetric corridor is a momentum on economic sion arrears amounting the June quarter for Special icy framework to handle finan- The second example MONETARY POLICY of the measures by the logical outcome under such. activity and rekindle animal ~1,461.63 crore till June 30, Mention Accounts where SOUMYA KANTI GHOSH cial instability or the is restoring financial RBI has been surpris- The ECB maintains an asym- spirits. One must be mindful of 2020. It made additional moratorium was extended, it probability of effective lower stability through ingly labelled as not in metric corridor and the RBI has the banking system of again not provision of ~161.63 crore in said in a BSE filing. The forthcoming Reserve Bank bound (ELB) episodes. unconventional monetary pol- sync with the MPC; for followed suit amidst the pan- being caught in a pincer move- Q1FY21. The provisions, The bank held the total of India (RBI) policy is likely to In this context, I am icy surprises with NBFC sector example, the reverse repo rate demic-induced dislocation. ment of intense regulatory including for non-performing provision of ~1,034.78 crore for address the issue of financial tempted to quote former Fed garnering ~1 trillion in FY21. cut outside policy. Section 45Z In a similar vein, there has monitoring and mounting non- assets, and contingencies the Covid-19 pandemic. The stability. With inflation set to Chairman Ben Bernanke (2003) Several small MFs with much (3) of the amended RBI Act of been criticisms regarding the performing assets! dipped to ~1,512.07 crore in the provisions are higher than stay higher than the upper of how constrained discretion lower rating (A3+ with an 2016 clearly states that “The slowing down of regulatory first quarter of FY21, from what is required by the RBI’s band of RBI inflation target and achieves the desired objective equivalent long term rating at Monetary Policy Committee changes being ushered by the (The author is group chief economic ~1,911.18 crore in Q1FY20. guidelines to cushion the bal- given that inflation expecta- of monetary policy making BBB) are also now participating shall determine the policy rate RBI. We must remember that advisor, State Bank of India. The lender made Covid-19 ance sheet from the impact of tions in India are adaptive in rather than adherence to a in CP market. Given all this, the required to achieve the infla- similar to fighting inflation, Views are personal) provisions of ~620.30 crore in pandemic. promoters sell 21%

SAMIE MODAK, SHREEPAD S AUTE is compliant with norms (stake & ABHIJIT LELE STOCK MOVEMENT holding). Referring to use of Mumbai, 3 August Bandhan Bank proceeds from sale of stake, BSE Sensex 140 Ghosh said, now, the holding Bandhan Bank’s promoters company can start insurance on Monday offloaded nearly 99.79 and mutual fund businesses, 21 per cent stake in the bank 100 subject to RBI approval. to comply with the Reserve The board of the holding Bank of India’s (RBI’s) 100 company will either decide to ownership rule. 60 start business or give dividend Bandhan Financial or do both. In insurance, the Holdings (BFHL), the holding 64.31 option is open to pick up stake company of the bank, sold 20 in the company. nearly 337.4 million shares at Aug 1,’19 Aug 3,’20 Though Bandhan Bank is a minimum of ~311 apiece to now on a par with RBI’s norms raise ~10,500 crore. The stake for the bank are now complied moter stake to 40 per cent. on promoter holding, there are sale was done through with,” Bandhan Bank said. Prior to the stake sale, some near-term fundamental multiple block deals on the According to RBI’s licen- BFHL’s stake stood at 60.96 per worries, mainly on the asset stock exchange platform. sing norms, any bank offering cent, after mortgage lender — quality front. This is owing to While the domestic market ‘universal’ services need to Gruh Finance — was merged over 65 per cent of its loan book had seen bigger share sales bring down the promoter’s with Bandhan Bank in coming from microfinance. through block deals, this was stake to 40 per cent in three October 2019. Deepak Jasani, head of one of the largest in terms of years from the date of com- Chandra Shekhar Ghosh, research-retail at HDFC percentage shareholding, said mencement of operations. managing director and chief Securities, said, “The microfi- experts. Credit Suisse, JP In 2018, when Bandhan executive, said in February the nance segment has been Morgan, Goldman Sachs, and Bank got listed, the promoter RBI removed restriction on impacted by the pandemic-led JM Financial were the invest- stake stood at 82.3 per cent. branch expansion. After that, disruptions. This, along with ment bankers that handled Since then, the bank had been the Covid-19 pandemic hap- the floods in Assam, which is the share sale. exploring various options to pened, due to which Bandhan a key state for Bandhan Bank, With the stake sale, shares dilute the promoter stake to could not open branches. could put some pressure on of Bandhan Bank tanked 10.6 meet the RBI requirement. In Now, the bank has a plan to the bank’s asset quality.” Some per cent to ~309 apiece on fact, last year, the central bank expand network. As for freeze comfort, however, is that the Monday, where shares worth had imposed restrictions on on salary to top executive, it is bank’s collection efficiency ~11,800 crore changed hands. branch expansion on the bank subject to RBI decision. The has improved to 76 per cent in “All the licensing conditions after it had failed to lower pro- bank has given a report that it June from 29 per cent in April. ‘We now have 3 years to reduce stake to 20%’

Bandhan Financial Holdings, the holding company of Bandhan Bank, has diluted its does this mean for Bandhan’s expansion? stake by 20.95 per cent to comply with the ’s (RBI’s) licensing A couple of months back, RBI withdrew the guidelines. CHANDRA SHEKHAR GHOSH, managing director and chief executive officer of restriction on expansion and, accordingly, we the firm, tells Ishita Ayan Dutt that entering the insurance and mutual fund businesses are planning for the next five years on the is an option, but the board will take a call on this. Edited excerpts: bank’s expansion. However, there are hindrances because of the Covid-19 situation. Bandhan has diluted its excess Gradually, we are going to expand branches to shareholding through secondary market attract retail deposits. CHANDRA SHEKHAR sale. Who are the buyers? GHOSH There were multiple buyers, but among them Are you seeing an improvement in collections? MD & CEO,Bandhan Bank were GIC Pte, BlackRock, Temasek, and SBI Collection efficiency is very good. When the Mutual Fund. lockdown was relaxed in June, borrowers started repaying. But localised lockdowns are Bandhan has raised about ~10,500 crore. a challenge. Apart from that, collection has How will this be utilised? reached almost 85 per cent of normal. This money will go to the holding company, Overall, collection efficiency has improved Bandhan Financial Holdings. One of the opt- since June. ions before the NOFHC (non-operative fina - ncial holding company) is entering the insu - To what extent have floods in Bihar and rance and mutual fund businesses. The board Assam impacted recovery? will take a call. We have floods in Bihar and Assam, and had a cyclone. Every year, there is a What is the timeframe for flood or cyclone. Last year, we faced Cyclone bring ing promoter holding Fani in Odisha. We stopped the collection to 20 per cent? voluntarily this time, learning from our The first dilution had to be done in previous experience. We were only in touch three years. We now have three years with customers to ensure their safety, which in hand to reduce stake to 20 per cent. helped us build a good relationship. Once they get over the current situation, they will Now that compliance is taken care of, what automatically come forward to repay. � � � �� � � � � � � � �� � � ��� ��� ��� ������ ����������� � ������� ���� � ��� �������� ������� ������������� ��� �� ������������ ������ ��������� ���� ���������� ����������� ������� ���� �� �� �������� � ������� ���� ������ ���� ������� �������������� ����� ����������� �� � ����� �������������� ���� ������ �������������� �������������� ������ ������������ ������� ��������� ����� ��� �� ��������� �������� �� �������� ������� ��������������������� ���������� ������� ������ ������������� ��� �� ���������� ����� �������� ��� ������ ������������ ���� �������� ��������� ������ �� ������ ������� ���� �� ����� ����������� ����� ����������� ������� ������ ���������� ��� �������������� ����������� �� ��� �������������� ������������ ������������������������ ��������������������� ��������������� � ������������ ������ �������� ����� ����� ����������� ������ � ���� ������ ������� ������� ������� ������� �������������� �������� ������������� ��� �� ���������� ���� ��������� ��������� ����� ��������� ����������� ��� ���� ����� �� ���