13. CONTINGENT LIABILITIES AND PROVISIONS

13.1 Contingent liability: Past events leading to, possible
or present obligations are recognized as contingent
liability in the following instances where:

(a) The existence of such obligations has not been
confirmed

(b) No outflow of resources are required to settle
such obligations

(c) A reliable estimate of the amount of the
obligations cannot be made

(d) Such amounts are not material

13.2 (a) Provision is recognized in case of present
obligations where a reliable estimate can be
made and/or where there are probable outflow
of resources embodying foregoing of economic
benefits to settle the obligations, excluding
frivolous claims.

(b) Provision for Market Risk, Country Risk, etc., are
made in terms of extant instructions of RBI.

(c) Floating provision as identified by the Bank
Management is provided for.

Floating provision may be utilized as per extant RBI
guidelines, for -

(i) Making specific provisions for non-performing
assets;

(ii) Meeting any shortfall in sale of non-performing
assets.

14. IMPAIRMENT OF ASSETS

Impairment losses, if any, on Fixed Assets (including
revalued assets) are recognised and charged to Profit
and Loss Account in accordance with the Accounting
Standard 28 "Impairment of Assets". However, an
impairment loss on a revalued asset is recognised
directly against any revaluation surplus for the asset
to the extent that the impairment loss does not
exceed the amount held in the revaluation surplus
for that same asset.

15. TAXES ON INCOME

15.1 Provision for tax is made for both Current Tax and
Deferred Tax.

15.2 Current tax is measured at the amount expected
to be paid to the taxation authorities, using the
applicable tax rates, tax laws and favourable judicial
pronouncements / legal opinion.

15.3 Deferred Tax Assets and Liabilities arising on account
of timing differences and which are capable of
reversal in subsequent periods are recognized using
the tax rates and tax laws that have been enacted
or substantively enacted till the date of the Balance
Sheet. Deferred Tax Assets are not recognized unless
there is "virtual certainty" that sufficient future
taxable income will be available against which such
deferred tax assets will be realized.

AnnexureI

HELD FOR TRADING (HFT)

1. Held for Trading (HFT), which is a sub-category of Fair
Value through Profit and Loss (FVTPL) shall consist of
all instruments that meet the specifications for HFT
instruments set out in the following paragraphs. All
other instruments shall be excluded from HFT.

2. Bank shall only include those financial instruments
in HFT when there is no legal impediment against
selling or fully hedging it.

3. Bank shall fair value daily all HFT instruments and
recognise any valuation changes in the profit and
loss account.

4. Any instrument that a bank holds for one or more
of the following purposes shall, when it is first
recognised on its books, be designated as a HFT
instrument, unless specifically otherwise:

(a) short-term resale;

(b) profiting from short-term price movements;

(c) locking in arbitrage profits; or

(d) Hedging risks that arise from instruments
meeting(a), (b) or (c) above

5. The following instruments shall be included in HFT,
unless specifically otherwise:

(a) instruments in the correlation trading portfolio

(b) instruments that would give rise to a net short
credit or equity position in the banking book; or

(c) Instruments resulting from underwriting

commitments, where underwriting

commitments refer only to securities
underwriting, and relate only to securities that
are expected to be actually purchased by the
bank on the settlement date.

6. Any instrument which is not held for any of the
purposes listed as per RBI Circular at inception, nor
seen as being held for these purposes according to,
shall not be assigned to HFT.

7. The following instruments shall not be included in
HFT category:

(a) unlisted equities and equity investments in
subsidiaries, associates and joint ventures;

(b) instruments designated for securitisation
warehousing;

(c) direct holding of real estate and derivatives on
direct holdings of real estate;

(d) equity investments in a fund, unless the bank
meets at least one of the following conditions:

i. the bank is able to look through the fund
to its individual components and there is
sufficient and frequent information, verified
by an independent third party, provided to
the bank regarding the fund's composition;
or

ii. the bank obtains daily price quotes for the
fund and it has access to the information
contained in the fund's mandate or in
the national regulations governing such
investment funds;

(e) derivative instruments and funds that have
instrument types specified from (a) to (d) above
as underlying assets; or

(f) Instruments held for the purpose of hedging
a particular risk of a position in the types of
instruments specified from (a) to (e) above.

8. The following instruments shall be presumed to be in
HFT unless specifically otherwise provided:

a) Instruments resulting from market-making
activities;

b) equity investments in a fund excluding
those exempted from assignment to HFT in
accordance; or

c) Listed equities.

d) trading-related repo-style transaction; or

9. Bank shall have the option to deviate from the
presumptive list specified in RBI Circular according to
the process set out below.

a) If a bank believes that it needs to deviate from
the presumptive list established in RBI Circular
for an instrument, it shall submit a request to
Department of Regulation, RBI and receive
explicit approval. In its request, the bank shall
provide evidence that the instrument is not held
for any of the purposes.

b) Incases where this approval is not given, the
instrument shall be designated as HFT. Bank shall
document any deviations from the presumptive
list in detail on an on-going basis.

Separate Trading of Registered Interest and Principal

Securities (STRIPS)

1. Bank can strip eligible Government Securities held
under the AFS or FVTPL (including HFT) categories
of their investment portfolio. STRIPS shall be valued
and accounted for as zero-coupon bonds and in the
manner prescribed in in these Directions.

2. The discount rates used for valuation of STRIPS at
inception shall be market-based. However, in case
traded zero-coupon rates are not available, the
zero-coupon yields published by FBIL shall be used
instead.

3. On the day of stripping, the STRIPS shall be
recognised in the books of account of the
participant at their discounted value and at the
same time, the Government Security in question
shall be derecognised. The accounting treatment

for reconstitution shall be exactly the opposite of
stripping.

4. The stripping/reconstitution shall not result in
any profit or loss. The present value of the STRIPS
(coupon as well as principal) discounted using the
Zero Coupon Yield Curve (ZCYC) shall be normalized
using a factor that will be the ratio of the carrying
value of the security or market value of the security
(whichever is lower) to the sum total of the market
value of all STRIPS created out of the security.

5. Normalisation shall also be applied in the case of
reconstitution (even when STRIPS are acquired from
the market).

6. The book value of the STRIPS (ZCBs) shall be valued
and marked to market as per these Directions.
Accordingly, the book value of the STRIPS shall be
marked up to the extent of accrued interest before
MTM.

Un-weighted values are calculated as outstanding balances maturing or callable within 30 days (for inflows and outflows) except where otherwise mentioned
in the circular and LCR template.

Weighted values are calculated after the application of respective haircuts (for HQLA) or inflow and outflow rates (for inflows and outflows)

Adjusted values calculated after the application of both (i) haircuts and inflow and outflow rates and (ii) any applicable caps (i.e. cap on Level 2B and Level 2
assets for HQLA and cap on inflows).

The LCR is designed to promote short-term resilience of a bank's liquidity risk profile by ensuring that it has sufficient
high quality liquid resources to survive an acute stress scenario lasting for 30 days. As per the RBI guidelines minimum
requirement of LCR for FY 2024-25 on a daily basis is 100%. The methodology for estimating the LCR is based on RBI
guidelines updated on time to time.

The LCR is calculated by dividing the amount of high quality liquid unencumbered assets (HQLA) by the estimated net
outflows over a 30 calendar day period. The net cash outflows are calculated by applying RBI prescribed outflow factors to
the various categories of liabilities (deposits viz Retail, Small Business customers (deposits upto Rs. 7.50 crore), unsecured
and secured wholesale borrowings) as well as to undrawn commitments and derivatives-related exposures partially offset
by inflows from assets maturing within 30 days.

The bank during the quarter ended March 31,2025 had maintained average HQLA (after haircut) of Rs. 1,69,525 crores.
HQLA primarily includes SLR securities in excess of minimum Statutory Liquidity Ratio (SLR) requirement the extent allowed
under the Marginal Standing Facility (MSF) and the Facility to Avail Liquidity for LCR (FALLCR). Additionally, cash balances in
excess of cash reserve requirement with RBI and the overseas central banks form part of level 1 HQLA. The Daily average
LCR of the Indian bank for the quarter ended March 31,2025 was 126.62%.

The main drivers of LCR of the bank are sufficient high quality liquid assets (HQLAs) to meet liquidity needs of the bank at
all times. The weighted cash outflows are primarily driven by unsecured wholesale funding which contributed 54.42% of
the total weighted cash outflows. Retail deposits including deposits from small business customers contributed 15.93% of
the total weighted cash outflows. The other contingent funding obligations primarily include bank guarantees (BGs) and
letters of credit (LCs) issued on behalf of the Bank's clients.

Bank has no significant counterparty (Deposit / Borrowing) as on 31.03.2025. The total contribution of the top 20 largest
domestic depositors as on 31.03.2025 is 5.31% of the total deposits. The significant domestic product / instruments
includes Savings deposit, Current deposit and Term deposit which are 32.99%, 5.38% and 61.63% of bank's total deposits
respectively, the funding from which are widely spread and there is no major concentration risk under Liquidity front for
bank.

Available Stable Funding (ASF)

ASF is defined as the portion of capital and liabilities expected to be reliable over the time horizon considered (viz. up
to 1 year) by the NSFR. The amount of ASF is measured, based on the broad characteristics of the relative stability of an
institution's funding sources, including the contractual maturity of its liabilities and the differences in the propensity of
different types of funding providers to withdraw their funding.

Required Stable Funding (RSF)

RSF is the amount of stable funding required based on the liquidity characteristics and residual maturities of various
assets held by that institution as well as those of its off-balance sheet (OBS) exposures. RSF is computed by multiplying the
outstanding amount of the specified component with the prescribed and associated RSF Factor.

The objective of NSFR is to ensure that banks maintain a stable funding profile in relation to the composition of their
assets and off-balance sheet activities. The NSFR limits over-reliance on short-term wholesale funding, encourages better
assessment of funding risk across all on and off-balance sheet items, and promotes funding stability.

Bank's NSFR stands at 138.84% as on 31.03.2024 and 141.62% as on 31.03.2025. NSFR is above the minimum regulatory
requirement of 100%. As on 31.03.2025, the Available Stable Funding (ASF) was Rs. 605734 crore and the Required Stable
Funding (RSF) was Rs. 427729 crore.

Bank also computes Liquidity Coverage Ratio and prepares Structural Liquidity Statements on a daily basis to assess the
liquidity needs of the Bank.

c. Sale and transfers to/from HTM category

The value of sales and transfers of securities to/from HTM category did not exceed 5 per cent of the book value of
investments held in HTM category at the beginning of the year as per RBI guidelines.

• In case of securities classified under HTM category, if acquisition cost is more than the face value, the premium
is amortized over the remaining period to maturity. For the Financial Year 2024-25, a sum of Rs. 0.16 crores
(previous year Rs. 0.16 crores) has been amortized and the same is reflected as a deduction from 'Income on
Investments'.

iv. Details of loans acquired during the year: NIL

v. The distribution of Security Receipts (SRs) held by the Bank across the various categories of Recovery Ratings
assigned to such SRs by the Credit Rating Agencies as on 31.03.2025 is given as under:

In terms of revised norms for Government Guaranteed Security Receipts (SRs) issued by RBI on March 29, 2025,
Banks can reverse any excess provision to the Profit and Loss Account in the year of transfer, if a loan is transferred
to an ARC for a value higher than the net book value (NBV), and the sale consideration comprises only of cash
and SRs guaranteed by the Government of India. Such SRs shall be valued periodically by reckoning the Net Asset
Value declared by the ARC based on the recovery ratings received for such instruments.

As on March 31,2025, the Bank is holding in Government guaranteed SRs having Face Value of Rs.491.95 Crores.
The Bank is valuing its Investment in SR at a lower of Net Book Value of the stressed loans at the time of transfer
to ARC or NAV declared by such ARC. The Bank, on a prudent basis, will continue to value SRs in this manner
and book revenue on SRs only on actual receipts of recoveries/redemption or approval of claims, if any, by the

j. Disclosure under Resolution Framework for COVID-19-related Stress

A special window under the Prudential Framework was extended vide circular DOR.No.BP.BC/3/21.04.048/2021-22
dated August 6, 2020 and RBI/2022-23/31 DOR.STR.REC.11/21.04.048/2022-23 dated May 5, 2021 to enable the lenders
to implement a resolution plan in respect of eligible corporate exposures, and personal loans, while classifying such
exposures as Standard. Details of resolution plan implemented under the resolution framework for covid-19 related
stress as given below

K. Covid Measures:

The spread of COVID-19 across the globe has resulted in declined economic activity and increased volatility in financial
markets. In this situation, though the challenges continue to unfold, the Bank is gearing itself on all fronts to meet
the same. The situation continues to be uncertain and the Bank is evaluating the situation on an ongoing basis. The
extent to which the COVID-19 pandemic will impact the Bank's results will depend on future developments, which
are highly uncertain. Major challenges for the Bank would be from extended working capital cycle and reduced cash
flows. The Bank's capital and liquidity position is strong and would continue to be the focus area for the Bank during
this period.

d. Letter of comfort issued by the Bank:

During the year ended 31.03.2025 branches in India have not issued any letter of comfort for financing of imports.
Outstanding as on 31.03.2025 is NIL. Accordingly, there is no financial impact.

During the year ended 31.03.2025, Letter of Comfort issued by our foreign branches (Singapore and Colombo) and
GIFT City Branch is NIL and Outstanding as on 31.03.2025 is NIL

As per the Letter of Responsibility given by the Bank to the Monetary Authority of Singapore, Bank to ensure that
Singapore Branch maintains sound liquidity and a sound financial position at all times. Accordingly, the Bank continues
to maintain deposits to the extent of USD 43.00 Mio (equivalent to INR 367.54 crore) with Singapore Branch.

Bank has issued LOU for Sri Lankan branches favouring Central Bank of Sri Lanka (CBSL) as per the mandatory
requirement of CBSL. Bank undertakes to provide funds as may be necessary to meet all obligations incurred in or in
connection with its business in Sri Lanka. Bank does not anticipate any financial impact in immediate near future on
account of this LOU.

Bank has issued LOC for our IBU/ FBU in IFSC, SEZ Gift City, Gujarat Favouring International Financial Service Centres
Authority (IFSCA) as per the mandatory requirement of IFSCA. Bank undertakes to provide the necessary financial
assistance as and when required in the form of Capital and liquidity support for our IBU/FBU in IFSC, GIFT city. Bank
does not anticipate any financial impact in immediate near future on account of this LOC.

h. Unhedged foreign currency exposure

The Bank has in place a policy on managing credit risk arising out of Unhedged Foreign Currency Exposures of its
borrowers. Where there is no natural hedge, forward cover is suggested to customers in respect of import/export
transactions. The forward cover will act as Unhedged risk mitigation on exchange risk. While sanctioning the facilities,
Bank is ensuring that all the exposures (fund based and non-fund based including Letter of comfort/ Letter of

c) Disclosures on risk exposure in derivatives

i) Qualitative disclosures

Bank's policy permits hedging of asset as well as liability using IRS. The hedging transactions are to be accounted
on an accrual basis. Swaps, which hedge interest bearing asset / liability, are accounted for as the asset or
liability hedged. Outstanding swap contracts are marked to market.

All swap deals shall be based on the guidelines of International Swaps Dealers' Association. Bank has adequate
control systems and also internal approvals prior to concluding transactions. There exists a clear functional
segregation between (i) trading (Dealing) (ii) back office (settlement, monitoring and control) and (iii) accounting
sections.

In the derivatives segment, the bank's policy permits doing proprietary trading in Overnight Index Swaps (OIS).
The activities in this segment are governed by the Derivatives Policy approved by the Bank's Board.

The gain or loss in OIS transactions is booked in the Profit and Loss account on the maturity or unwinding of the
deal whichever is earlier. For the purpose of valuation of outstanding OIS deals, the fair value of the total swap is
computed on the basis of the amount that would be receivable or payable on termination of the swap as on the
balance sheet date. Losses arising there from, if any, are fully provided for while the profits, if any, are ignored.

Exchange traded FX Derivatives i.e. Currency Futures, are valued at the Exchange determined prices and the
resultant gains and losses are recognized in the Profit and Loss account.

12.2 Disclosure of penalties imposed by the GOI / State Govt.:

For the F.Y. 2024-25, Government has imposed Nil penalty (In F.Y. 2023-24 penalty of Rs.1.24 Crore- 19 instances was
imposed pertaining to the year 2005-2023 by the Government for which Bank had made representation to various
ministries. Considering the representation, penal interest amount has been reduced to Rs.85.86 lakhs for which Bank
has made representation again with the concerned ministries/department).

12.3 Central Bank of Sri Lanka -Financial Intelligence Unit has imposed a monetary penalty of Sri Lankan Rupees (LKR) Two
Million (LKR 2,000,000) i.e. approx. Indian Rupees (INR) Five Lakh Eighty Five Thousands (INR 5.85 Lakh) on the Bank
for failure to conform to the provisions of Financial Transactions Reporting Act, No.6 of 2006 (FTRA) of Sri Lanka and
rules, regulations issued thereunder.

14. Employee Benefits (AS 15)

i. Defined Contribution Plans:

Provident fund is a statutory obligation and in the case of Contributory Provident Fund Optees, the Bank pays
fixed contribution at pre-determined rates. The obligation of the Bank is limited to such fixed contribution. The
contributions are charged to Profit and Loss Account. The fund is managed by Indian Bank Staff Provident Fund
Trust. During the financial year 2024-25, the Bank has contributed ? 0.84 crores (previous year ? 1.07 crores).

New Pension Scheme (NPS) is applicable to employees who joined bank on or after 01.04.2010 and it is a defined
contribution scheme. Under NPS the Bank pays fixed contribution at pre-determined rate and the obligation of
the Bank is limited to such fixed contribution. The contribution is charged to Profit and Loss Account. During the
financial year 2024-25, the Bank has contributed ? 387.42 crores (previous year ? 353.34 crores)

ii. Defined Benefit Plans:

The summarized position of Post-employment benefits and long term employee benefits recognised in the
Profit & Loss Account and Balance Sheet as required in accordance with Accounting Standard-15 (Revised) are as
under:

The following table sets out the basis of the Defined Benefit Pension Plan and Gratuity Plan as per the actuarial
valuation by the independent Actuary appointed by the Bank.

The estimates of future salary increases are considered taking into account inflation, seniority, promotion and other
relevant factors, such as supply and demand in the employment market and in tandem with Funding Guidelines for
Superannuation Schemes communicated by IBA. Such estimates are very long term and are not based on limited past
experience / immediate future. Empirical evidence also suggests that in very long term, consistent high salary growth
rates are not possible.

The liabilities of leave encashment are unfunded.

15. Property, Plant and Equipment (AS-10)

15.1 The premises of the Bank include land and building are stated at revalued amount. The Bank revalued its premises
in the financial year 2024-25 at fair market value determined by the approved external valuers. There is an increase
of Rs. 1510.28 Crore in the amount of revaluation of premises, which has been credited to "Revaluation Reserve
Account." For the year 2024-25, depreciation amounting to Rs. 107.07 Crore (previous year Rs. 105.56 Crore) was
charged under expenditure and depreciation on revalued portion amounting to Rs. 100.21 Crore (previous year Rs.
98.79 Crore) is adjusted against the "Revaluation Reserve Account." Also Rs. 184.48 Cr (previous year Rs.7.50 Crore)
was transferred from Revaluation Reserve to Revenue Reserve on account of Sale of Premises.

15.2 Premises include 9 (7 2*) properties original costing Rs. 8.38 crores (previous year 9 (7 2*) properties costing Rs. 8.38
crores) having revalued book value of Rs. 83.77 crores (previous year Rs. 63.71 Crores), net of depreciation at Rs. 0.79
Crore (Previous year Rs.0.44 crore) for which registration formalities are pending.

* Property at Hyderabad costing Rs.1.61 Crore, where clearance is pending before ULC authority at Govt of Telangana for regularization and at Chennai
costing Rs.2.32 Crore, where the legal case is pending in High Court of Madras.

16. Lease (AS 19)

A) The properties taken on lease / rental basis are renewable / cancellable at the option of the Bank.

B) The leases entered into by the Bank are for agreed period with an option to terminate the leases even during the
currency of lease period by giving agreed calendar month notice in writing.

C) Lease rent paid for operating leases are recognized as an expense in the Profit & Loss account in the year to
which it relates. The lease rent recognized during the year is Rs. 456.93 Crore. (Previous year Rs. 426.22 Cr).

D) Finance lease

An asset acquired on finance lease comprises land and building. The leases have a primary period, which is fixed
and non-cancellable. The bank has an option to renew the lease for a secondary period.

The minimum lease rentals and the present value of minimum lease payments in respect of assets acquired
under finance leases are as follows:

17. Indian Bank Trust for Rural Development

Indian Bank Trust for Rural Development (IBTRD) has been set up by the Bank in 22.09.2008 to pay focused attention
on Rural Development initiatives. IBTRD sponsors the following institutes across the country in accordance with the
guidelines / directives issued by Ministry of Rural Development (Government of India) & Reserve Bank of India (RBI).

• As per the direction of Ministry of Rural Development (MoRD), GoI, our Bank has established 38 Rural Self¬
Employment Training Institutes (RSETIs) in the name of Indian Bank Self-Employment Training Institutes
(INDSETIs) through the Trust to imparting training on skill development and entrepreneurship for promoting
self-employment among rural youth. These Institutes are engaged in extending handholding support for the
purpose of settlement of trained candidates and facilitating credit linkage through bank branches to enable the
candidates to set up entrepreneurial ventures.

• 42 Financial Literacy Centres (FLCs) for imparting awareness on financial literacy at district-level among
predominantly rural population. These FLCs are operated in accordance with the guidelines issued by Reserve
Bank of India and impart awareness to various target groups viz. senior citizens, women, school children, SHG
members, farmers, micro & small entrepreneurs, etc. on various aspects of financial literacy viz. modes of
operation and benefits of bank accounts, social security schemes, digital banking channels, banking products,
cyber-security, etc.

• 142 Centres of Financial Literacy (CFLs) set up in collaboration with RBI-appointed Non-Government Organizations
(NGOs) in selected districts as per RBI directives. These CFLs, operating at block-level, are partly funded by RBI
/ NABARD. The CFLs, which have been established with the objective of exploring innovative and participatory
approaches to financial literacy, conduct sessions among various target groups such as women, young adults,
working population as well as vulnerable sections of the population on opening of accounts, usage of debit/ATM
card, online banking transactions, social security schemes, etc.

18. Legal

Contingent liabilities include an A/c M/s Nimbus Communications Ltd., Guarantees were issued by Consortium Banks
favouring BCCI aggregating to Rs.1602.44 Crore. BCCI filed suit against Consortium Banks claiming guarantee liability
wherein claim aggregating to Rs.406.47 Cr was made against the Bank during FY 2011-12. In the suit, conditional leave
to defend was granted on making payment of Rs.400 crores, wherein our Bank's share is Rs.100 crores. Remittance
of our Bank's share of Rs.100 crores was made during FY 2012-13 with the Prothonotary and Senior Master of the
Hon'ble High Court of Bombay. The summary suit is pending adjudication before Hon'ble High Court of Bombay. The
said remittance of Rs. 100 Crore made by the Bank has been adjusted during F.Y. 2023-24 by debiting the current
account and FD account (Rs.84.09 Crore) of M/s Nimbus Communications Ltd. leaving O/s balance as on 31.03.2025
of Rs.15.94 Crore.

For this claim against the Bank by BCCI, Bank is having total provision of Rs.31.26 Crore (previous year Rs. 31.26
Crore).

19. Accounting standard-17 "Segment Reporting"

1. Segment Identification

I. Primary (Business Segment)

The following are the primary segments of the Bank:

- Treasury

- Corporate / Wholesale Banking

- Retail Banking*

- Other Banking Business.

* Further, the Retail Banking segment has been sub-divided into Digital Banking and Other Retail Banking Segment in terms of RBI
Circular DOR.AUT.REC.12/22.01.001/2022-23 dated April 7, 2022.

The present accounting and information system of the Bank does not support capturing and extraction of the
data in respect of the above segments separately. However, based on the present internal, organisational and
management reporting structure and the nature of their risk and returns, the data on the primary segments
have been computed as under:

i. Treasury -

The Treasury Segment includes the entire investment portfolio and trading in foreign exchange contracts
and derivative contracts. The revenue of the treasury segment primarily consists of fees and gains or losses
from trading operations and interest income on the investment portfolio.

ii. Corporate / Wholesale Banking -

The Corporate / Wholesale Banking segment comprises the lending activities of Corporate Accounts Group,
Commercial Clients Group and Stressed Assets Resolution Group. These include providing loans and
transaction services to corporate and institutional clients and further include non-treasury operations of
foreign offices.

iii. Retail Banking -

(i) Digital Banking - In compliance with the RBI Circular dated April 7, 2022, the bank has commenced
operations at three DBUs during the year ended March 31,2023. The segment information pertains to
the said DBUs' operations.

(ii) Other Retail Banking - This Segment comprises of retail branches, which primarily includes Personal
Banking activities including lending activities to corporate customers having banking relations with
these branches. This segment also includes agency business and ATMs.

iv. Other Banking Business —

Segments not classified under (i) to (iii) above are classified under this primary segment.

II. Secondary (Geographical Segment)

i. Domestic Operations - Branches/Offices having operations in India

ii. Foreign Operations - Branches/Offices having operations outside India and off-shore Banking units having
operations in India.

III. Allocation of Expenses, Assets and Liabilities

Expenses incurred at Corporate Centre establishments directly attributable either to Corporate / Wholesale and Retail
Banking Operations or to Treasury Operations segment, are allocated accordingly. Expenses not directly attributable
are allocated on the basis of the ratio of segment assets in each segment/ratio of directly attributable expenses. The
Bank has certain common assets and liabilities, which cannot be attributed to any segment, and the same are treated
as unallocated.

c) Marketing and distribution

The Bank does not undertake marketing and/or distribution of any product of other entities (other than products
under Bancassurance Business). Therefore, the Bank has not earned any fees/remuneration from the stated
activities.

f) Implementation of IFRS converged Indian Accounting Standards (Ind AS)

i) As per the directions of RBI vide their letter DBR.BP.BC.No.76/21.07.001/2015-16 dated 11.02.2016, Banks
shall comply with Ind AS for standalone and consolidated financial statements for accounting periods
beginning from April 1, 2018 onwards with comparative figures for the preceding period ending March 31,
2018.

ii) RBI also advised the Banks to prepare Proforma Financial Statements as per Ind AS for the half year ended
30.09.2016 with transition date as 01.04.2016 and the same was prepared and submitted to RBI. Similarly,
proforma Ind AS financials for the quarter ended 30.06.2017 was also submitted to RBI.

iii) Subsequently, RBI advised that Banks shall submit Ind AS proforma financial statement for every quarter
starting from quarter ending 30th June 2018 onwards. The same has been duly complied with.

iv) From F.Y. 2021-22 onwards, RBI advised to reduce the frequency of Ind AS proforma financial statement
submission from quarterly to half yearly. The same has been complied with. The Audit Committee of the
Board and Board of Directors have been periodically apprised the progress in this regard.

k) Reconciliation and Adjustments

• Reconciliation of Inter Branch Account is completed up to 31.03.2025 except few old entries. The Bank
through various effective steps has achieved reduction in the outstanding.

• In view of the net credit position in respect of un-reconciled entries in the Inter Branch Account outstanding
for more than 6 months as on 31.03.2025, no provision is required. However, the bank is maintaining 100%
provisions on the gross debit balance in inter branch account amounting to Rs. 263.79 Crore (Previous Year
2023-24 Rs.263.79 Crore)

• Old outstanding entries, in drafts payable, clearing adjustment, sundries receivable, sundry deposit accounts,
etc. and in bank reconciliation relating to Reserve Bank of India and other banks are being regularly reviewed
for appropriate adjustments.

• Balancing of subsidiary/ ledgers, registers and reconciliation with general ledgers are in progress at some
branches. In the opinion of the management, consequential financial impact of the above on the accounts
will not be significant.

l) Dividend

• Dividend of Rs. 16.25 per equity share i.e. 162.50% to the paid up capital is proposed by the Bank for
FY 2024-25.

m) As per information available with the Bank, there is no outstanding dues payable by the Bank to MSME units
identified by the Bank, which is pending beyond the time limit prescribed under MSMED Act, 2006 and there have
been no reported cases of accepted liability of delayed payments of principal amount or interest thereon for such
parties during the year.

n) Previous year's figures have been regrouped / reclassified, wherever necessary, to conform to current year's
figures.