Analysis of Financial Results

September 2013 Table of Contents

Company Overview

Financial Performance

Business Strategy

Annexure

Corporate Goal for 2013-14

2 Company Overview

1. Over 89 years of banking history

2. Pan-India footprint

3. Robust technology and risk management systems

4. Strong productivity, capital adequacy ratios

5. Experienced management team

6. Highest Standard of Corporate Governance

7. Business Process Reengineering [BPR] in progress

3 History & Evolution

• Incorporated in 1924, 2013 • Secured ISO 27001 : 2005 Certificate from NQA • BPR implementation under the guidance of M/s KPMG Advisory Services Pvt Ltd. commenced is one of the oldest time tested private • Business Turnover crossed the milestone of ` 50,000 crore 2012 sector • No. of branches crossed 500 • Average turnover per branch crossed ` 100 crore • Launched ASBA facility • Offers wide variety of corporate and 2011 • Right issue of ` 457.03 crore in the ratio of 2:5. retail banking products and services • Launched Online Trading facility 2010 • Maiden QIP aggregate ` 160.83 crs. to over 7.4 million customers 2009 • Compliance with Basel-II norms

• Completion of 100% core banking • Forayed into General Insurance 2007 • Floated general insurance JV along with , , Dabur business as a JV partner in Universal 2006 Investments and Sompo Japan Insurance • Launched CDSL-DP services at select branches

Sompo General Insurance Company 2005 • Completed 2:1 rights issue to raise ` 160 crs

Limited 2003 • Right issue in the ratio of 1:2

2002 • Bancassurance tie-up with MetLife • 1,130 service outlets with 558 • Maiden bonus issue in the ratio of 1:1 branches, 4 Extension Counters and 2000 • Implementation of “Finacle” CBS 568 ATMs in 361 centres across 1995 • Public issue of 45 lakh equity shares in October 1995 1977 • Became an authorised dealer of foreign exchange India as on September 30, 2013 1966 • Took over assets and liabilities of Bank of Karnataka, Hubli and opened 14 new branches

• Business Turnover of ` 64,482 crore 1961 • Took over assets and liabilities of the Chitaldurg Bank

as of September 2013 1960 • Took over assets and liabilities of Sringeri Sharada Bank Ltd • Incorporated on 18th February 1924 at by Late B R Vyasarayachar & other 1924 leading members of the South Kanara Region 4 Awards & Accolades IN 2013  Bagged “STP Award” by Bank of New York Mellon

 Bagged IDRBT Banking Technology Excellence Awards for 2012-13 among “Small Banks” under the following categories: (i) Best Bank Award for Managing IT risks, (ii) Best Bank Award for use of IT for business innovation.

 Bagged Sunday Standard FINWIZ 2013 Best Bankers Awards under the following categories: (i) Best Bank for Customer Friendliness under the category of “Midsized Banks”, (ii) Best Bank for Customer Orientation under the category of “Private Sector Banks”. (iii) Best Bank for HR Practices under the category of “Private Sector Banks”.

 Bagged “Runner-up” of ASSOCHAM [Associated Chambers of Commerce & Industry of India] Social Banking Excellence Award for 2012 under the private sector banks category.

IN 2012  Bagged “Operational Excellence Award” for ATMs  Bagged “Best Banker in Customer Friendliness – Runner up” by The Sunday Standard Finwiz  Bagged “Best Risk Mgmt & Security Initiative – 2nd runner up”  Bagged “Best Financial Inclusion Initiative – 2nd runner up” by IBA Banking Technology Awards

IN 2011  Bagged “Special Award for managing IT risks” instituted by IDRBT. Awards & Accolades

Dr. C. Rangarajan, Chairman, Economic Advisory Council to the Sri.Kamal Nath, Union Minister of Urban Development, Prime Minister, presenting the ASSOCHAM Social Banking Government of India, presenting the "Sunday Standard FINWIZ - Excellence Award to our MD & CEO Shri. P. Jayarama Bhat. 2013 Best Bankers Awards" to MD & CEO Shri. P. Jayarama Bhat.

Shri P.Jayarama Bhat, MD & CEO receiving the ISO 27001:2005 Dr. D. Subba Rao, Ex Governor, RBI, presenting the IDRBT Banking certification, for its IT setup, from Shri Ganesh Shastri, CEO of Technology Excellence Award to MD & CEO Shri. P. Jayarama Bhat. NQA India. Pan-India footprint

Pan-India Presence No of branches & ATMs

 Total 1,140 outlets – 10 regional offices, 558 branches, Branches ATMs 550 558 568 4 Extension Counters & 568 ATMs 600 510 504 500  Specialized branches for Forex, Industrial, Agriculture, 409 400 MSME & Corporate finance business 300  42 Financial Inclusion branches, 26 Ultra Small branches 200  Expanding network in northern India in the recent past 100 0 Sept'12 Mar '13 Sept'13

19 4 1 2 7 Area wise distribution of branches (Sept „13) 3 9 1 1 Metro 3 5 5 12 28% 4 7 Rural 36 Has the strongest presence in 19% 40 South India with 433 branches Urban 6 345 Top 5 States: Semi 29% Urban 1 Karnataka (345), Andhra Pradesh (40), 35 Maharashtra (36), Tamilnadu (35), 24% 12 Delhi (19) 7 Robust technology platform and risk management systems

Strong technology platform Secured “ISO 27001:2005” certificate from NQA [National Quality Assurance] for its three I.T. set- ups, encompassing the Information Security Management System (ISMS) at Data Centre, Near line Site [NS] at Bangalore and Information Technology Department including the DR site [IT & DR] at Head Office, Mangalore

 Pioneer in implementing “Finacle” (CBS) amongst the old generation private sector banks  100% networking of branches using CBS  State-of-art IT set up which has enabled Anytime Anywhere banking through alternate delivery channels such as ATMs, International Debit Card, Internet Banking, Mobile Banking, and also other products such as Online Trading, ASBA facility, Gift Card, Travel Card, Biometric Smart Card under Financial Inclusion, PoS Network, Online inward remittance facility to NRIs, etc.

Effective risk management system  Integrated Risk Management Committee develops policies and strategies for integrated risk management, monitors and reviews risk profile of the bank periodically  Internal Credit Rating of all the borrowers: Credit exposure above INR 25 lakh are rated borrower- wise and credit facilities below INR 25 lakh & all schematic advances including agri-credit proposals are rated under „Pool based approach‟  Continuous offsite surveillance of borrower accounts  Effective ALM/mid office set up to monitor Market risk/Liquidity risk on a continuous basis  For effective Operational risk management: Bank is building up a database of internal Loss data, near- miss cases and other Operational risk events, since Sept 2007  Bank has taken all necessary steps for migration to „Basel II advanced approaches‟ under Credit, Market and Operational Risk and also implemented „Basel III‟ guidelines of RBI 8 Return and Capital Adequacy Ratios

Return on Equity (%) (after tax) Return on Assets (%) (after tax)

20.0% 1.5% 14.87% 1.06% 15.0% 12.76% 1.0% 0.89% 8.44% 10.0% 0.58% 0.5% 5.0% 0.0% 0.0% Sept'12 Mar '13 Sept'13 Sept'12 Mar '13 Sept'13

Capital Adequacy (%) Basel II Tier I Tier II

14 13.22 13.47 12.17 12 2.66 1.81 2.71 10

8

6 10.36 10.51 10.81 4

2

0

Sept'12 Mar '13 Sept'13 9 Productivity ratios

Operating Profit per employee (` lakh) * Operating Profit per branch (` lakh) *

18 200 12.7 153.8 15 128.5 10.7 10.0 150 12 115.5 9 100 6 50 3 0 0 Sept'12 Mar '13 Sept'13 Sept'12 Mar '13 Sept'13

* annualised

Business per employee (` crs) Business per branch (` crs)

12 111.4 115.6 9.7 9.5 120 110.5 10 9.2 100 8 80

6 60

4 40

2 20 0 0 Sept'12 Mar '13 Sept'13 Sept'12 Mar '13 Sept'13

10 Financial Performance

11 Income & Profit

Net Income (` crs) Operating and Net Profit (` crs) Other Income 1301 Net Interest Income Operating profit 700 635 1,200 Net profit 398 600 1,000 828 500 429 348 800 637 400 328 294 300 600 201 182 200 123 904 400 100 534 200 455 0

0 Sept'12 Mar '13 Sept'13 Sept'12 Mar '13 Sept'13 (6 months) (12 months) (6 months) (6 months) (12 months) (6 months)

Net Interest Margins (%) Cost to Income Ratio (%)

3% 2.51% 75% 2.40% 2.31% 48.54% 51.18% 48.19% 2% 50%

1% 25%

0% 0% Sept'12 Mar '13 Sept'13 Sept'12 Mar '13 Sept'13

12 Deposits

Deposits (` crs)

38,014 33,968 36,056 100% 820 1,155 717 90% 80% 70% 60% 25,179 25,919 28,258 50% 40% 30% 20% 10% 7,969 8,982 9,040 0% Sept'12 Mar '13 Sept'13

CASA Retail Purchase liability Deposits break up (Sept 2013)

Savings Bank 17.7% Current Account 6.1%

Retail Term Purchase Deposits liability 74.3% 1.9%

13 Advances

Advances (` crs) 25,208 26,469 25,000 22,395 20,000

15,000 10,000

5,000 0 Sept'12 Mar '13 Sept'13

Restructured loans & related accounts (` crs)

Restructured loans Related a/cs

1,485 1,500 1,224 1,364

1,000 770 479 530 500

0 Sept'12 Mar '13 Sept'13

14 Advances

Segmentation of Advances (Sept 2013) Retail & Corporate Advances (%)

Retail Advances Corporate Advances 75% * Agriculture 15.6% Small-Micro 52.5% 53.7% 51.8% Others 48.2% Ent. 50% 47.5% 46.3% 24.9% 15.9%

25%

0% Sept'12 Mar '13 Sept'13

Medium Ent. Other 5.3% Personal loans Housing 12.3% 10.0% Large Ent. 16.1%

* However, this works out to 16.47% of the ANBC of 31.03.2013.

15 Advances

Priority Sector Advances (` crs) Amount % 10,149 12,000 45.26% 43.31% 43.57% * 40.10% 39.93% 9,482 40% 7,711 8,401 Agriculture Advances (` crs) 8,000 6,389 Amount % 20% 4,000 5,000 3,903 4,186 18.0% 4,000 2,804 3,278 18.63% * 0 0% 3,000 2,002 16.47% 15.85% 15.65% 15.0% Mar '11 Mar '12 Sept'12 Mar '13 Sept'13 2,000 13.57% 12.0% 1,000 0 9.0% Mar '11 Mar '12 Sept'12 Mar '13 Sept'13 Advances to Weaker Section (` crs)

Amount % 2,528 2,683 3,000 1,876 1,461 12.07% * 11.0% 2,000 10.56% 540 8.26% 8.95% 1,000 6.0% 3.66% 0 1.0%

Mar '11 Mar '12 Sept'12 Mar '13 Sept'13 * Base figure for the calculation of % is ANBC as on March 31st of previous year. 16 CD Ratio & Yield on Advances

Credit Deposit ratio (%)

CD Ratio Incremental CD Ratio [Annual] Incremental CD Ratio [Quarter]

150% 125.6% 111.4% 125% 100.9% 100.7% 100% 65.9%65.0% 69.9% 69.6% 75% 50.5% 50% 25% 0% Sept'12 Mar '13 Sept'13

Yield on Advances & Interest Spread (%)

Yield on advances Interest spread

15% 12.91% 12.62% 12.39% 10% 4.77% 4.48% 4.44% 5% 0% Sept'12 Mar '13 Sept'13

17 NPAs

Gross NPAs (` crs) Net NPAs (` crs)

Gross NPA Gross NPA % Net NPA Net NPA % 962 1,000 6% 593 3.0% 729 5% 600 750 639 464 2.5% 4% 450 378 2.0% 500 3% 2.08% 2.25% 3.22% 3.59% 1.5% 2.51% 2% 300 250 1.51% 1.0% 1% 150 0 0% 0.5% 0 0.0% Sept'12 Mar '13 Sept'13 Sept'12 Mar '13 Sept'13

Fresh accretions and recoveries (` crs)

Fresh Accretions to NPA Stock Recovery / Upgradation 459 500 413 415 400 253 300 208 200 92 100 0 Sept'12 Mar '13 Sept'13 (6 months) (12 months) (6 months) 18 Investments

HFT Investments (` crs) 0.0% AFS 20.4% 14,042 14,960 15,000 13,432

10,000

5,000

0 HTM 79.6% Sept'12 Mar '13 Sept'13 Duration

AFS HFT HTM TOTAL 2.22 0.00 4.28 3.84

Debentures, Bonds, CD, RIDF MF 17.5% Yield on Investments (excl. RIDF & MF) (%) 15.0% SLR 7.48% 7.57% 7.42% 66.5% 8% 6% 4% 2% 0% Shares 1.0% Sept'12 Mar '13 Sept'13

19 Share holders‟ value

Share holding pattern (Sept 2013)

Banks, MF, Insurance Cos Others 6.94% FIIs 0.82% Earning Per Share (`) * NRIs/Ocs 16.45% 0.83% 25 Private 21.30 18.48 Corporate 20 Bodies 15 13.08 18.93% 10 5 0

Indian Public Sept'12 Mar '13 Sept'13 56.04% * annualised

Book value (`) Dividend (%) 158.19 50% 148.64 151.70 150 35% 40% 40% 30% 100 30% 50 20% 10% 0 0% Sept'12 Mar '13 Sept'13 Mar '11 Mar '12 Mar '13 20 Business Strategy

21 “PROJECT TEJAS” – BPR project of KBL

The Bank has embarked on a “transformation journey” by initiating “Business Process Re-engineering” [BPR] named

“PROJECT TEJAS” and has engaged renowned

Management Consultants M/s KPMG Advisory Services for the purpose. This initiative was kick started during

2012-13 & is aimed at high growth with superior quality across assets & liabilities portfolio and products & services.

22 Business Strategy Priorities Strategy Product support Increasing • Introduction of new SB & Current Salaried Persons the share account schemes tailored to suit the  KBL Salary Privilege various market segments and Students of CASA periodical overhauling of the  KBL – Tarun schemes with necessary deposits  KBL – Kishore sophistication / upgradation. Women • Increasing the penetration level of  KBL –Vanitha alternate delivery channels such as HNIs ATMs, Internet banking and mobile  KBL – SB Money Sapphire banking facilities, POS etc.  KBL – SB Money Platinum • Pushing the use of electronic Businessmen/Corporates payment facilities like Real Time KBL Current Accounts Gross Settlement (RTGS) and NEFT.  General  Money Pearl • Effective marketing through a  Money Ruby focused marketing vertical.  Money Diamond • Holding CASA campaigns to reach  Money Platinum out to new clients. 23 Business Strategy Priorities Strategy Product support Agri Sector Credit  Augmenting the credit disbursal through  KBL- Instant  KBL - Krishik in specially identified Focused Attention Agri Credit Sarathi Branches (FAB). Centre  KBL - Agri Gold  KBL – Krishik  KBL - Kissan Godham  Thrust on Micro, Manufacturing and Stage Credit Card  KBL – Kisan Service sector under MSME lending and Mitra introduction of new loan products for MSME Sector MSME.  KBL- MSE  KBL – MSE  Modification in organizational set up for (Traders, Support Professionals,  Vyaapar Mithra effective credit dispensation and Transport monitoring. Operators etc) Housing  Thrust on maintaining quality of credit and effective credit monitoring through  BL- Apna Ghar  KBL - Mortgage creation of Regular Asset Monitoring Cell  KBL - Ghar  KBL - Lease N Niveshan Cash (RAM Cell) and Stressed Asset Monitoring Cell (SAM Cell). Consumption  KBL- Car Loan  KBL- Insta Cash  Tackling Non Performing Assets through  KBL- Salaried  KBL - Easy Ride early and effective recovery action. Persons Students  KBL- Vidyanidhi  More thrust for Financial Inclusion Women  KBL- Mahila agenda. 24 Udyog Business Strategy Priorities Strategy Product support Augmenting  Leveraging the Clientele base to enhance  Life Insurance products the “Other Income” by Cross Selling / Fee Income  General Insurance products upselling of other products such as insurance  Mutual Fund products & mutual fund products, lockers, gift cards, travel cards, etc.  Demat Services  Effective utilisation of „customer  Online Trading segmentation‟ tool – CLIVE tool & CAFÉ tool  POS Network provided by KPMG.  Gift Card

 Concentrating more on acquirer business in  Travel Card ATM channel.  ASBA facility  Appropriate counselling on “Financial  Online inward remittance Planning” relevant for various stages of one‟s life/life style. facility for NRIs Customer  Retention / Acquisition of customer  ATM facilities through constant improvement in the  Internet Banking facilities Relationship  services rendered. Mobile Banking Management  Moneyplant Visa International Debit Cards  Speedy redressal of customer complaints  E - Commerce Online & grievances. payment thro Debit Card  M – Commerce Payment  Special attention & support to senior thro Mobile citizens and differently enabled  A dedicated Customer Service & Grievance Redressal Cell at HO. customers. 25 Financial Inclusion Initiative

 Bank is providing banking services to rural unbanked areas through about 68 outlets, including 26 Ultra Small Branches [USBs].  Bank plans to open another 38 service outlets, including 24 USBs, by the end of March 2014.  Bank has sponsored 2 Financial Literacy & Counseling Centres [FLCC] & plans to open 4 more FLCCs in the current Financial Year.  Bank is one of the Trustees of Karnataka Farmers‟ Resource Centre, which serves as a Resource Centre for providing training, counseling & consultancy services to farmers.  Bank is participating in the Govt. of Karnataka EBT Pilot project for NREGA / SSP beneficiaries.  Bank is participating in DBT programme of Govt. of India.  Bank has introduced Basic Savings Bank Deposit Account [BSBD] & SB-Small Account with simplified KYC requirement for hassle free opening of account.  Bank has also introduced General Credit Card scheme which enables customers in rural & semi urban area to avail credit upto ` 25,000/-. 26 MSME Initiative

 Focused attention through 160 specialised MSME branches to ensure hassle free flow of credit to the sector.

 Holding MSME cluster meets at various centres in association with stakeholders like DIC, ASSOCHAM, DSIA, etc.

 Simplified systems & procedures, attractive rates of interest & collateral free loans upto ` 10 lakh.

 Bank has entered into a MOU with Reliance Capital Ltd. for financing of MSMEs through co-financing arrangement, on July 4, 2013.

27 Other initiatives

 „Agri meets‟ are being held at various agri centres, by involving NABARD & Lead Bank.

 Exporters‟ meets are being held at various potential centres, in association with FIEO.

 Bank has tied up with Times of Money to offer an internet based online money transfer solution, „Remit2India‟, to NRIs on July 2, 2013.

28 Annexure

29 Income & Expenditure

` crs Mar-13 Sept-12 Sept-13 (12 months) (6 months) (6 months) Interest Income 3,764 1,839 2,062 Interest Expense 2,861 1,384 1,528 Net Interest Income 903 455 534 Fee Income 345 160 211 Treasury Income 53 22 83 Non-Interest Income 398 182 294 Total Income 1,301 637 828 (Net of Interest Expense) Operating Expenses 666 309 399 Operating Profit 635 328 429 Provision for Taxes / loan losses 287 127 306 in Adv. / losses in Invts. / other

Net Profit 30 348 201 123 Interest Income & Interest Expenditure Mar-13 Sept-12 Sept-13 ` crs (12 months) (6 months) (6 months) Interest Income Interest Income 3,764 1,839 2,062 Interest on Advances 2,818 1,376 1,557 Interest on Investments 938 452 496 Other interest 8 11 9 Yield on Advances 12.62% 12.91% 12.39% Adjusted yield on Invts. 7.34% 7.19% 7.80% Interest Expense Interest Expense 2,861 1,384 1,528 Interest on Deposits 2,726 1,323 1,455 Other interest 135 61 73 Cost of Deposits 8.14% 8.14% 7.95% Net Interest Income Net Interest Income 903 455 535 Interest Spread in Lending 4.48% 4.77% 4.44%

Net Interest Margin on average assets 31 2.31% 2.40% 2.51% Capital Adequacy ` crs Sept-12 Mar-13 Sept-13 Total Risk Weighted Assets – Basel II 24,894 26,838 26,068 Total Risk Weighted Assets – Basel III -NA- -NA- 26,117 Total Capital Fund 3,030 3,548 3,511 Total Tier I Capital 2,579 2,820 2,819 Paid up Equity Capital 188 188 188 Reserves under Tier I Cap. 2,391 2,632 2,631 Total Tier II Capital 451 728 692 Surplus Provisions & Reserves 125 158 186 Subordinated Debt Fund 326 570 506 CRAR under Basel II 12.17% 13.22% 13.47% CRAR Tier I Capital 10.36% 10.51% 10.81% CRAR Tier II Capital 1.81% 2.71% 2.66% CRAR under Basel III -NA- -NA- 13.22% CRAR Common Equity Tier I Capital -NA- -NA- 10.57% CRAR Tier I Capital -NA- -NA- 10.57%

CRAR Tier II Capital 32 32 -NA- -NA- 2.65% Corporate Goal for 2013-14

33 Corporate Goal for 2013-14

Business Turnover ` 78,000 crore Deposits ` 45,500 crore Advances ` 32,500 crore No. of Branches 600 No. of ATMs 600

34 BANK HAS STEPPED INTO ITS 90TH YEAR OF

PURPOSEFUL BANKING ON FEBRUARY 18, 2013.

WE EXPRESS OUR HEARTFELT GRATITUDE TO

ALL OUR STAKE HOLDERS FOR THEIR TRUST &

SUPPORT AND SOLICIT THEIR CONTINUED

PATRONAGE, AS WE CONTINUE OUR JOURNEY

WITH RENEWED DEDICATION & COMMITMENT.

35 Present Management Team

Top Management

Ananthakrishna P Jayarama Bhat Chairman Managing Director & CEO

Board of Directors

R V Shastri U R Bhat T S Vishwanath Bangalore Mumbai New Delhi Former Chairman and Investment Adviser & Chartered Accountant Managing Director, Columnist Former President, ICAI

D Harshendra Kumar Sitarama Murthy M S V Manjunath Shri Kshethra Hyderabad Chikmagalur Dharmastala, Former Managing Planter Director, State Bank of Mysore

Mrs Usha Ganesh, IAS Dr. H Rama Mohan T R Chandrasekaran Ashok Haranahalli Bangalore Kundapura Chennai Bangalore Former Member of Medical Practitioner Chartered Accountant Advocate Karnataka Administrative Tribunal

36 Disclaimer

This presentation has been prepared by Karnataka Bank (the “Bank”) solely for providing information about the Bank. This presentation is confidential and may not be copied or disseminated, in whole or part, in any manner. This presentation has been prepared by the Bank based on information and data which the Bank considers reliable, but the Bank makes no representation or warranty or undertaking, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness, correctness and reasonableness of the contents of this presentation. This presentation has not been approved and will not be reviewed or approved by any statutory or regulatory authority in India or by any Stock Exchange in India and may not comply with all the disclosure requirements prescribed thereof. This presentation may not be all inclusive and may not contain all of the information that you may consider material. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. Any liability in respect of the contents of, or any omission from, this presentation is expressly excluded. No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. Neither the Bank nor any of its respective affiliates, advisers or representatives, shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be “forward-looking statements”, including those relating to the Bank‟s general business plans and strategy, its future financial condition and growth prospects, and future developments in its industry and its competitive and regulatory environment. Actual results may differ from these forward-looking statements due to a number of factors, including future changes or developments in the Bank‟s business, its competitive environment, information technology and political, economic, legal and social conditions in India and worldwide. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Bank disclaims no obligation to update forward looking statements to reflect events or circumstances after the date thereof. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation and any information presented herein are not intended to be, offers to sell or solicitation of offers to buy the Bank‟s equity shares or any of its other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. The Bank‟s equity shares have not been and will not be registered under the U.S. Securities Act 1993, as amended (the Securities Act”) or any securities laws in the United States and, as such, may not be offered or sold in the United States or to, or for the benefit of, U.S. persons (as such term is defined in Regulation S under the Securities Act) absent registration or an exemption from the registration requirements of the Securities Act and applicable laws. Any offering of the equity shares made, if any, in the United States (or to U.S. persons) was made by means of a prospectus and private placement memorandum which contained detailed information about the Bank and its management, as well as financial statements. The Bank may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person.

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