5.2 Impairment assessment Definition of default
The Company considers a financial instrument as defaulted and considers it as Stage 3 (credit-impaired) for expected credit loss (ECL) calculations, when the assets become more than 90 days past due on its contractual payments and these assets continue to be classified as Stage 3 till the entire overdues are received, in accordance with the RBI guidelines and the Company's ECL Policy.
Exposure at default
The exposure at default (EAD) represents the gross carrying amount of the financial instruments subject to the impairment calculation, addressing both the customer's ability to increase its exposure while approaching default and potential early repayments too.
Probability of default
Probability of default (PD) represents the likelihood of default over a defined time horizon.
Loss given default
Loss given default (LGD) has been calculated by taking into account the recovery experience across the Company's loan accounts post default. The recoveries netted off by expenses incurred for recovery, are tracked and discounted to the date of default using the interest rate.
Macro-economic variables relevant to the underlying loan portfolio such as Gross Domestic Product, Inflation and Housing price index are analysed for their correlations with the Company's historical loan defaults, based on which a macroeconomic variable is selected to ensure that the ECL is forward looking.
Significant increase in credit risk
The Company continuously monitors all assets subjected to ECL. In order to determine whether an instrument or a portfolio of instruments is subject to 12 months ECL or lifetime ECL, the Company assesses whether there has been a significant increase in credit risk since initial recognition. The Company considers an exposure to have significantly increased in credit risk when contractual payments are more than 30 days past due and/ or when the accounts have been restructured under the RBI 'Resolution Framework - 2.0: Resolution of COVID-19 related stress of Individuals and Small Businesses'
Guidelines. The Company also assesses if there has been a significant increase in credit risk by considering qualitative factors for increased risk of default for a financial asset.
When estimating ECLs on a collective basis for a group of similar assets, the Company applies the same principles for assessing whether there has been a significant increase in credit risk since initial recognition.
Grouping financial assets measured on a collective basis
As explained above, the Company calculates ECL on a collective basis on the following broad asset classes:
- Home loans
- Loan against property
- Commercial loan
Risk assessment model
The Company has designed and operates its risk assessment model that factors in both quantitative as well as qualitative information on the loans and the borrowers. The model uses historical empirical data to arrive at factors that are indicative of future credit risk and segments the portfolio on the basis of combinations of these parameters into smaller homogenous portfolios from the perspective of credit behaviour.
The Company considers qualitative factors and creates management judgement based provisions in relation to specific borrowers over and above the ECL model based on the evaluation of the expected cash flows.
Collateral
The Company holds collateral to mitigate credit risk associated with financial assets that are measured at amortised cost. The main types of collateral include residential and commercial properties.
Assets possessed under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
Loan Portfolio includes gross loans amounting to ' 505.46 million (31 March 2025: ' 439.43 million), out of which ' 15.49 million (31 March 2025: ' 20.38 million) pertains to retained portion of loans from the assigned portfolio, against which the Company has taken possession of the properties under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and held such properties for disposal.
Hedging activities and derivatives
The Company enters into derivatives for risk management purposes. Derivatives held for risk management purposes include hedges that either meet the hedge accounting requirements or hedges that are economic hedges.
The Company is exposed to currency risk on its outstanding foreign currency borrowing amounting to ' 12,603.64 million (31 March 2025: ' 6,343.17 million) which is primarily mitigated using derivative financial instruments such as currency swaps and forward contracts. Refer note 16(v), 16(vi) and note 36 for foreign currency risk disclosures. The Company uses interest rate swaps to mitigate the interest rate risk on its foreign currency borrowings.
iii. Terms, rights, preferences and restrictions attached to shares Equity shares:
The Company has only one class of equity share having face value of ' 2 per share. Each holder of equity share is entitled to one vote per share. The dividend proposed, if any, by the board of directors is subject to the approval of shareholders in the ensuing general meeting. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive any of the remaining assets of the Company.
iv. Issue of bonus shares or buyback of shares
The Company has not issued/ allotted any shares pursuant to contracts without payment being received in cash, nor issued any bonus shares nor there has been any buyback of shares during five years immediately preceding 31 March 2026.
v. For details of shares reserved for issue under the employee stock option plan (ESOP) of the Company and shares exercised under ESOP, refer note 40.
vii. Dividend
The Board of Directors at their meeting held on 06 May 2026 have recommended dividend of ' 5.20 per equity share for the year ended 31 March 2026 (Previous year: ' 3.70 per equity share), subject to the approval of shareholders at the ensuing Annual General Meeting.
viii. During the year ended 31 March 2026, the Company has, by way of Qualified Institutions Placement in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, alloted 1,28,86,597 equity shares of face value of ' 2 per share at a price of ' 970 per share, aggregating to ' 12,500 million.
21.2 Statutory reserve
As per Section 29C of National Housing Bank Act (NHB), 1987, the Company is required to transfer at least 20% of its net profits every year to a reserve before any dividend is declared. For this purpose, any Special Reserve created by the Company under Section 36(1 )(viii) of the Income Tax Act, 1961 is considered to be an eligible transfer. Thus, during the year ended 31 March 2026 and 31 March 2025, the Company has transferred to Statutory Reserve, an amount arrived in accordance with Section 29C of the NHB Act, 1987.
21.3 Securities premium
Securities premium is credited when shares are issued at premium. It can be used to issue bonus shares, to provide for premium on redemption of shares or debentures, share issue related expenses, like underwriting costs, etc. in accordance with Section 52 of the Companies Act, 2013.
21.4 Stock options outstanding account
Stock options outstanding account is created as required by Ind AS 102 'Share Based Payments' on the Employee stock option schemes operated by the Company for its employees.
21.5 Retained earnings
Retained earnings represents the amount of accumulated earnings of the Company.
21.6 Remeasurements of defined benefit plans
Remeasurements of defined benefit plans represents change on account of remeasurement of the net defined benefit liabilities comprising of actuarial gain/ loss.
21.7 Cash flow hedge reserve
Cash flow hedge reserve represents changes in the fair value of derivative financial instruments which are designated as effective portion of cash flow hedges.
21.8 Cost of hedging
Cost of hedging reserve represents change in time value of derivative financial instruments which are designated as effective hedges.
34 Capital management
The Company's capital management strategy is to effectively determine, raise and deploy capital to cover risk inherent in business and meeting the capital adequacy requirements of the Reserve Bank of India (RBI). The same is done through a combination of equity and/ or short term/ long term debt as may be appropriate. The Company determines the amount of capital required on the basis of operations and capital expenditure. The adequacy of the Company's capital is monitored using, among other measures, the regulations issued by the RBI.
The capital structure is monitored on the basis of net debt to equity and maturity profile of overall debt portfolio. The Company's policy is in line with Reserve Bank of India (Housing Finance Companies) Directions, 2025 which currently permits HFCs to borrow up to 12 times of their net owned funds ("NOF"). Refer note 50 for Capital to risk-weighted assets ratio (CRAR).
The Company has complied in full with all its externally imposed capital requirements over the reported periods.
Loan covenants
In order to achieve the overall objective, the Company's capital management, amongst other things, aims to ensure that it meets the financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breach in meeting these financial covenants would permit the banks and/ or financial institutions to immediately call loans and borrowings. There have been no breaches in the financial covenants of any borrowing in the reporting year.
35.2 Fair value hierarchy
Thefairvaluesofthefinancial assetsandliabilitiesareincluded at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the Indian Accounting standard.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, units of mutual funds (open ended) and traded bonds that have quoted price. Open-ended mutual funds are valued at Net Asset Value (NAV) declared by respective fund house and are classified under Level 1.
Level 2: The fair value of financial instruments that are not
traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2, this level of hierarchy includes financial assets, measured using inputs other than quoted prices included within Level 1 that are observable for the asset, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: This level of hierarchy includes financial instruments measured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.
There have been no transfers amongst the levels of hierarchy during the year ended 31 March 2026 and 31 March 2025.
35.4 Financial assets and liabilities measured at amortised cost at each reporting date
1. The carrying value of excess interest strip receivable, bank deposits, debt securities and borrowings represents its fair value.
2. Further, the carrying value of cash and cash equivalents, bank balances other than cash and cash equivalents, investments in government securities, receivables, other financial assets, trade payables and other financial liabilities are considered to be approximately equal to the fair value due to their short term maturities.
3. Substantial amount of loans and borrowings are at a floating rate of interest and the carrying amount of these are considered to be approximately equal to their fair value.
4. Debt securities are at a floating rate of interest and hence, the carrying value is equal to the fair value. For carrying value and fair value of investments in mutual funds and derivative financial instruments, refer note 35.3.
35.5 Valuation techniques
The fair value of the financial assets and liabilities is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:
Derivative financial instruments - The fair value is determined as the present value of future expected cashflows based on observable yield curves and/ or forward exchange rates on the reporting date. The fair valuation is classified as level 2 in the fair value hierarchy since the inputs are observable but are not quoted prices.
36 Financial risk management
The Company is exposed to certain financial risks namely credit risk, liquidity risk and market risk i.e. interest risk,
foreign currency risk and price risk. The Company's primary focus is to achieve better predictability of financial markets and minimise potential adverse effects on its financial performance by effectively managing the risks on its financial assets and liabilities.
The principal objective in the Company's risk management processes is to measure and monitor the various risks associated with the Company and to follow policies and procedures to address such risks. The Company's risk management framework is driven by its Board and its subcommittees including the Audit Committee, the Asset Liability Management Committee and the Risk Management Committee. The Company gives due importance to prudent lending practices and have implemented suitable measures for risk mitigation, which include verification of credit history from credit information bureaus, personal verification of a customer's business and residence, valuation of collateral, technical and legal verifications, conservative loan to value, and required term cover for insurance.
A Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. For the Company, liquidity risk arises from obligations on account of financial liabilities - borrowings, trade payables and other financial liabilities. The Company manages liquidity risk by maintaining adequate cash reserves by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
B Market risk
(i) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign currency rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily towards principal and interest payments at a future date on the foreign currency borrowings and certain vendors in trade payables.
In order to minimise any adverse impact on the financial performance of the Company, the Company enters in to forward contracts and cross currency interest rate swaps to hedge the foreign currency risk in such a manner that it results in fixed determinate outflows in the functional currency and as such there would be no significant impact of movement in foreign currency rates on the Company's profit before tax and equity.
(ii) Interest rate risk
The Company is subject to interest rate risk, since the rates of loans and borrowings might fluctuate over the tenure of instrument. Interest rates are highly sensitive to many factors beyond control, including the monetary policies of the Reserve Bank of India, deregulation of the financial sector in India, domestic and international economic and
political conditions, inflation and other factors. In order to manage interest rate risk, the Company seeks to optimise borrowing profile between short-term and long-term loans. The liabilities are categorised into various time buckets based on their maturities and the Asset Liability Management Committee supervise an interest rate sensitivity report periodically for assessment of interest rate risks.
37 Credit risk management Credit quality of assets
Credit risk is the risk that the Company will incur a loss because the counterparty might fail to discharge their contractual obligations. The Company has a comprehensive framework for monitoring credit quality of its retail and other loans primarily based on number of days past due.
The Company manages credit risks by using a set of credit procedures and guidelines, laid down in the credit
risk policy, to ensure effective credit risk management and health of the portfolio. The adherence to the policy and various processes is monitored and appraised in the credit committee meetings on a quarterly basis. The policy is amended periodically to ensure compliance with the guidelines of the RBI as well as other regulatory bodies.
We have implemented a structured credit approval process, including multi-step customer verification and comprehensive credit risk assessment, which encompasses analysis of relevant quantitative and qualitative information to ascertain the credit worthiness of a potential customer.
As part of our multi-step customer verification, we have established a process by which separate set of verifications are conducted by a customer relationship manager and customer service officer to ensure the quality of customers acquired as well as eliminate misuse of borrowing practices.
Portfolio quality, credit limits, collateral quality and credit exposure limits are regularly monitored at various levels.
The Company considers a financial instrument as defaulted and considers it as Stage 3 (credit-impaired) for expected credit loss (ECL) calculations, when the assets become more than 90 days past due on its contratual payments and these assets continue to be classified as Stage 3 till the entire overdues are received, in accordance with the RBI guidelines and the ECL Policy.
The Company evaluates the credit risk on its receivables from assigned portfolio and creates a provision for expected credit loss, refer note 7. The expected credit loss on the underlying assigned portfolio is used to determine the provision for expected credit loss on the excess interest strip receivable.
The following table sets out information about creditquality of loans measured at amortised cost based on the staging of the loans. The amount represents gross carrying amount. (Refer note 5 - Loans for detailed disclosure on gross carrying amount and impairment loss allowance on loans).
38 Transfers of assets Assignment deal:
The Company has sold some loans measured at amortised cost as per assignment deals during the year. As per the terms of these deals, since substantial risk and rewards related to these assets were transferred to the buyer, the assets have been derecognised from the Company's balance sheet.
The management has evaluated the impact of assignment transactions done during the year for its business model. Based on the future business plan, the Company's business model remains to hold the assets for collecting contractual cash flows. The table below summarises the carrying amount of the derecognised financial assets measured at amortised cost and the gain on derecognition, per type of asset.
On 21 November 2025, the Government of India has consolidated 29 existing labour laws in to four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively referred to as the 'New Labour Codes'). As per the requirements under Ind AS 19, changes to employee benefit plans arising from the New Labour Codes constitute plan amendments and are required to be treated as past service costs. Accordingly, the Company has estimated an increase in provision for employee benefits, on account of the New Labour Codes, by ' 32.99 million and the same has been recognized under the head 'Employee benefits expense' in the statement of profit and loss for the year ended 31 March 2026. The Company continues to monitor the finalisation of Central and State Rules and clarifications on the New Labour Codes and would provide appropriate accounting treatment on the basis of such developments, if needed.
(B) Defined contribution plan
The Company contributes towards provident fund for employees which is the defined contribution plan for qualifying employees. Under this Scheme, the Company is required to contribute specified percentage of the payroll cost to fund the benefits. The Company recognised ' 58.82 million (31 March 2025: ' 52.35 million) for provident fund contributions in the statement of profit and loss. The Company has recognised ' 3.32 million (31 March 2025: ' 2.87 million) for National Pension Scheme contributions in the statement of profit and loss.
(C) Compensated absence expenses
The Company has accounted for provision for compensated absences. An employee is eligible to carry forward 30 to 90 days of leaves basis their work location to the next period from the balance leaves pending utilisation; however these leaves are non-encashable. Provision for compensated absence for current year is ' 2.94 million (31 March 2025: ' 3.39 million).
40.3 Contractual life
ESOP 2012: The contractual life (vesting period plus exercise period) ranges from 11 to 14 years i.e. vesting period ranging from 1 to 4 years and exercise period of 10 years from the date of vesting of the option. In case of resignation/ termination of any employee, the exercise period shall be 6 months from the last working day of the employee.
ESOP II: The contractual life (vesting period plus exercise period) ranges from 11 to 16 years i.e. vesting period ranging from 1 to 6 years and exercise period of 10 years from the date of vesting of the option. In case of resignation/ termination of any employee, the exercise period shall be 6 months from the last working day of the employee.
ESOP 2021: The contractual life (vesting period plus exercise period) ranges from 4 to 7.3 years i.e. vesting period ranging from 1 to 4.3 years and exercise period of 3 years from the date of vesting of the option. In case of resignation/ termination of any employee, the exercise period shall be 6 months from the last working day of the employee.
ESOP 2024: The contractual life (vesting period plus exercise period) ranges from 5 to 6.8 years i.e. vesting period ranging from 1 to 2.83 years and exercise period of 4 years from the date of vesting of the option. In case of resignation/ termination of any employee, the exercise period shall be 6 months from the last working day of the employee.
Method of settlement: ESOP 2012, ESOP II, ESOP 2021 and ESOP 2024 is to be settled through issue of equity shares.
41 Segment information41.1 Operating segment
The Company's main business is financing by way of loans towards affordable housing segment in India. All other activities of the Company revolve around the main business. As such, there are no separate reportable segments, as per the Indian Accounting Standard (Ind AS) 108 on 'Segment Reporting'. Accordingly, the amounts appearing in the financial statements relate to the Company's single business segment.
41.2 Entity wide disclosures
No revenue from transactions with a single external customer or counterparty amounted to 10% or more of the Company's total revenue in the year ended 31
March 2026 and 31 March 2025. The Company operates in single geography i.e. India and therefore geographical information is not required to be disclosed separately.
42 Lease disclosureWhere the Company is the lessee:
The Company has entered into agreements for taking its office premises under leave and license arrangements. These agreements are for tenures between 11 months and 9 years and are renewable by mutual consent on mutually agreeable terms, lease rentals have an escalation ranging between 5% to 15%. Leases for which the lease term is less than 12 months have been accounted as short term leases.
46 i. The Company does not hold any immovable property as on 31 March 2026 and 31 March 2025. All the lease agreements are duly executed in favour of the Company for properties where the Company is the lessee.
ii. No proceedings have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder, as at 31 March 2026 and 31 March 2025.
iii. The Company has a process whereby periodically all long-term contracts (including derivative contracts) are assessed for material foreseeable losses. The Company reviews and ensures that adequate provision as required under any law/ accounting standards for material foreseeable losses on such long-term contracts (including derivative contracts) has been made in the books of account. There were no such contracts for which there
were any material foreseeable losses for the year ended 31 March 2026 and 31 March 2025.
47 The Company is not a declared wilful defaulter by any bank or financial Institution or other lender, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India, during the year ended 31 March 2026 and 31 March 2025.
48 The Company does not have any transactions with the companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956 during the year ended 31 March 2026 and 31 March 2025.
49 Registration of charges or satisfaction with Registrar of Companies (ROC)
There has been no delay in registration or satisfaction of charges with ROC beyond the statutory date during the year ended 31 March 2026 and 31 March 2025.
51 The Company has borrowings from banks and financial institutions on the basis of security of receivables and current assets and the quarterly returns filed by the Company with the banks and financial institutions are in agreement with the books of accounts of the Company for the respective quarters.
52 The Company has taken borrowings from banks and financial institutions and utilised them for the specific purpose for which they were taken as at the Balance sheet date. Unutilised funds as at 31 March 2026 and 31 March 2025 are held by the Company in the form of liquid assets till the time the utilisation is made subsequently.
53 There have been no transactions which have not been recorded in the books of accounts, that have been surrendered or disclosed as income during the year ended 31 March 2026 and 31 March 2025, in the tax assessments under the Income Tax Act, 1961. There have been no previously unrecorded income and related assets which
were to be properly recorded in the books of account during the year ended 31 March 2026 and 31 March 2025.
54 As a part of normal lending business, the Company grants loans and advances on the basis of security/ guarantee provided by the borrower/ co-borrower.
Other than the transactions described above, a. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding (whether recorded in writing or otherwise), that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
b. No funds have been received by the Company from any persons(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding (whether recorded in writing or otherwise), that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Parties ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
55 The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended 31 March 2026 and 31 March 2025.
57.6 Institutional set-up for liquidity risk management
The Company's Board of Directors monitors all the risks, including liquidity risk. Governance structure, policies and risks limits are prescribed by the Board.
Board Constituted Asset Liability Committee (ALCO) ensures effective asset-liability management, market risk management, liquidity and interest rate risk management and also adherence to risk tolerance/ limits set up by the Board. ALCO provides guidance and directions in terms of interest rate, liquidity, funding sources, and investment of surplus funds.
The Risk Management Committee constituted by the Board of Directors is primarily responsible for the effective supervision, evaluation, monitoring and review of various aspects and types of risks, including liquidity risk, faced by the Company.
Further, as per guidelines issued by the RBI, HFCs are required to maintain the Liquidity Coverage Ratio (LCR), to maintain liquidity buffers to withstand potential liquidity disruptions by ensuring that it has sufficient High Quality Liquid Assets (HQLA) to survive any acute liquidity stress scenario lasting for 30 days. As per the guidelines, the weighted values of the net cash flows are calculated after the application of respective haircuts for HQLA and considering stress factors on inflows at 75% and outflows at 115%.
The Company has put in place a liquidity risk management framework so as to adhere to the said LCR guidelines and applicable timelines.
58 Disclosure on Liquidity Coverage Ratio (LCR) in accordance with the Reserve Bank of India (NonBanking Financial Companies - Financial Statements: Presentation and Disclosures) Directions, 2025 and Reserve Bank of India (Non-Banking Financial Companies - Asset Liability Management) Directions, 2025
The RBI has prescribed guidelines on maintenance of Liquidity Coverage Ratio (LCR) for HFCs vide Reserve Bank of India (Non-Banking Financial Companies -Asset Liability Management) Directions, 2025 dated 28 November 2025.
The objective of the LCR is to promote resilience in the liquidity risk profile of HFCs. This is done by ensuring that the Company has an adequate stock of unencumbered high-quality liquid assets (HQLA) that can be converted easily and immediately into cash to meet its liquidity needs for a 30 calendar day liquidity stress scenario. Further, the guidelines required all non-deposit taking HFCs with an asset size of ' 5,000 crore and above to
maintain minimum LCR of 100% by December 2025. The Company's Board approved Asset Liability Management (ALM) Policy covers its Liquidity Risk Management policies and processes, stress testing, contingency funding plan, maturity profiling, Currency Risk, Interest Rate Risk and Liquidity Risk Monitoring Tools.
The Company regularly reviews the maturity position of assets and liabilities and liquidity buffers, and ensures maintenance of sufficient quantum of High Quality Liquid Assets, most of which is in the form of government securities as at 31 March 2026 and 31 March 2025.
The main drivers of LCR are:
Outflows comprises of:
a) All the contractual debt repayments and interest payments
b) Expected operating expense Inflows comprises of:
a) Expected receipt (scheduled EMIs) from all loans
b) Liquid investment in the form of unencumbered fixed deposits with banks which are not forming part of High Quality Liquid Assets
c) Sanctioned and undrawn lines of credits.
For concentration of funding sources, refer note 57 on disclosure on liquidity risk.
To hedge the interest rate risk and foreign currency risk on foreign currency borrowings, the Company enters into derivative transactions. All the derivatives of the Company are for hedging purpose and not for any speculative or trading purpose. As at 31 March 2026, the notional amount of outstanding derivatives is ' 12,242.86 million (31 March 2025: ' 6,383.46 million) representing derivative financial liabilities of ' 172.12 million (31 March 2025: ' 66.87 million) and derivative financial assets of ' 819.15 million (31 March 2025: Nil). Further, the Company has an ongoing bilateral Credit Support Agreement with one of its derivative counterparty. As on 31 March 2026, there is an outstanding margin received from the counterparty on account of the MTM movement on derivative financial instruments amounting to ' 300.58 million, and there could be potential future margin calls based on the MTM movements in the future. There is no currency mismatch required to be reported in LCR as on 31 March 2026 and 31 March 2025 since all the foreign currency liabilities are reinstated to ' as per the corresponding derivative/ forward deals and closing exchange rates.
64.3 Disclosures on Risk Exposure in Derivatives A. Qualitative Disclosure
The Company manages various risks associated with the lending business, including liquidity risk, foreign exchange risk, interest rate risk and counterparty risk.
To manage these risks, the Company has Board approved policies and framework, including the Risk Management Policy and ALCO Policy, which sets limits for exposures on currency, interest rates and other parameters. The Company manages its currency risk and enters in to derivative contracts in accordance with the guidelines prescribed therein.
Liquidity risk and Interest rate risk arising out of maturity mismatch of assets and liabilities are managed through regular monitoring of maturity profiles. The currency risk and interest rate risk on borrowings is actively managed mainly through derivative financial instruments by entering in to forward contracts, cross currency interest rate swaps and interest rate swaps. Counter party risk is reviewed periodically to ensure that exposure to various counter parties is well diversified and is within the limits fixed by the Risk Management Committee.
80 During the year ended 31 March 2026, fine amounting to ' 4,720 has been levied by BSE Limited and paid by the Company for delay in submission of annual report. There was no penalty, other than the above, imposed by any regulator/ supervisor/ enforcement authority on the Company during the year ended 31 March 2026 and 31 March 2025.
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