The average LCR for the quarter ended March 31, 2023 was at 285.51% as against 311.32% for the quarter ended March 31, 2022 and well above the regulatory prescribed minimum requirement of 100%. The average HQLA for the quarter ended March 31,2023 was ' 106,207.00 crore as against ' 1,28,085.00 crore for the quarter ended March 31, 2022.

The average LCR for the year ended March 31,2023 was at 302.34 % as against 360.81% for the year ended March 31, 2022.

c) Net Stable Funding ratio (NSFR): (This has not been audited by Statutory Central Auditor)

Reserve Bank of India vide its circular no. BR.BPBC.No.106/21.04.098/2017-18 May 17, 2018 had issued guidelines on “Basel III Framework on Liquidity Standards - Net Stable Funding Ratio (NSFR)”. The guidelines for NSFR were effective from October 1,2021.

The objective of NSFR is ensure reduction in funding risk over a longer time horizon extending to one year by requiring banks to fund their activities in relation to the composition of their assets and off balance sheet activities, with sufficiently stable sources of funding on an on-going basis. A sustainable funding structure is intended to reduce the probability of erosion of a bank's liquidity position due to disruptions in the regular sources of funding. 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.

The NSFR is defined as the amount of available stable funding relative to the amount of required stable funding. “Available Stable Funding” (ASF) is defined as the portion of capital and liabilities expected to be reliable over the time horizon considered by the NSFR, which extends to one year. The amount of stable funding required (“Required Stable Funding”) (RSF) is a function of the liquidity characteristics and residual maturities of the various assets held by the Bank as well as those of its off-balance sheet (OBS) exposures. The Available Stable Funding (ASF) is primarily driven by the total regulatory capital as per Basel III Capital Adequacy guidelines stipulated by RBI and deposits from retail customers, small business customers and non-financial corporate customers. Under the Required Stable Funding (RSF), the primary drivers are unencumbered performing loans with residual maturities of one year or more.

The runoff factors for the stressed scenarios are prescribed by the RBI, for various categories of liabilities (viz., deposits, unsecured and secured wholesale borrowings), undrawn commitments, derivative-related exposures, and offset with inflows emanating from assets maturing within the same time period. The minimum NSFR requirement set out in the RBI guideline is 100% on an on-going basis.

The Liquidity Risk Management of the Bank is governed by the Asset Liability Management (ALM) Policy approved by the Board. The Asset Liability Committee (ALCO) is a decision-making unit responsible for implementing the liquidity and interest rate risk management strategy of the Bank in line with its risk management objectives and ensures adherence to the risk tolerance/limits set by the Board.

Central Bank of India on standalone basis maintained Available Stable Funding (ASF) of ' 3,44,387.62 Crore against the RSF requirement of ' 2,13,238.27 Crore as on 31st March 2023. The NSFR for the quarter ended Mar 2023 is at 161.50%.

c) Sale and transfer to / from HTM category

During the year ended March 31, 2023 the value of sales and transfers of securities to/from HTM category (excluding one-time transfer of securities to/from HTM category with the approval of Board of Directors permitted to be undertaken by banks at the beginning of the accounting year, sale to RBI under pre-announced Open Market Operation auctions and repurchase of Government securities by the government of India) had not exceeded 5% of the Book Value of the Investment held in HTM category at the beginning of the year.

Profit on sale/redemption of HTM securities amounted to ' 257.27 crore for the financial year ended 31 March 2022.

Divergence in asset classification and provisioning:

No disclosure on divergence in asset classification and provision for NPAs is required with respect to RBI's supervisory process for the year ended March 31,2022, based on the conditions mentioned in RBI circular No. DOR.ACC.REC. No.74/21.04.018/2022-23 dated 11th October 2022.

Disclosure of Transfer of Loan Accounts (SMAs & NPAs) in terms of RBI Circular No. DOR.STR.REC.51/21.04.048/ 2021-22 dated 24th September 2021 (as amended)

The outbreak of Corona virus (COVID-19) pandemic globally including India has resulted in slowdown of economic activities and increased volatility in financial markets. The extent to which the COVID-19 pandemic will impact the Bank’s financial results will depend on future developments, which are highly uncertain. Given the uncertainty, because of COVID-19 pandemic, the Bank is continuously monitoring any material change in future economic condition which may impact the Bank’s operations and its financial results in future depending on the developments which may differ from that estimated as at the date of approval of the financial statements.

i. Disclosure with respect to NCLT provisions:

As per RBI circular No. DBR No. BP 15199/21.04.048/2016-17 and DBR No. BP.1906/21.04.048/2017-18 dated June 23, 2017 and August 28, 2017 respectively, for the accounts covered under the provisions of Insolvency and Bankruptcy Code (IBC), the Bank is holding total provision of ' 6316.13 crore as at 31 March 2023 (' 6406.10 crore for March 31, 2022) (including FITL of ' 127.90 crore) @ (100 % of total outstanding including Investment) as at March 31,2023.

j. Resolution of Stressed Assets:

RBI vide their circular no. RBI/ 2018-19/ 203 DBR. No.BPBC. 45/21.04.048/2018-19 dated June 7, 2019 on Prudential Framework for Resolution of Stressed Asset issued guidelines for implementation of Resolution Plan, also containing requirements of additional provision as per Para 17 of this RBI circular. The outstanding in such cases as at March 31,2023 is ' 1602.59 crore (' 1757.84 crore for March 31,2022) and in compliance of the above RBI circular, the Bank has held additional provision of ' 251.26 crore (' 435.37 crore for March 31,2022) as at March 31,2023 and hold total provision of ' 1116.67 crore (' 1092.32 crore for March 31,2022) as at March 31,2023.

g) Unhedged Foreign Currency exposure:

The Bank has put in place a Board approval policy and process for managing currency induced credit risk. The credit appraisal memorandum (Executive Brief) prepared at the time of origination and review of a credit facility covers the required details viz. Total Foreign Exchange exposure, of which hedged position & if un-hedged, how the borrower plans to cover.

Provision on the un-hedged portion of foreign portion of currency exposures of customers is made on quarterly basis.

As per the Board approval policy, all Advances involving foreign currency lending of USD 1 million or equivalent and above is mandatory to be hedged unless specially permitted by the competent authorities. However hedging need not be insisted in the following cases

• Where Forex loans are extended to finance exports, hedging need not be insisted. However it should be ensured that such customers have uncovered receivables to cover the loan amount.

• Where Forex loans are extended for meeting forex expenditure.

• In respect of advances involving foreign currency loans below USD 1 million or equivalent:

• In case of corporates who are rated “A” and above, Competent Authority may permit allowing advances involving foreign currency loans without insisting for hedging.

• Customers who do not satisfy the conditions stipulated above will be required to provide cash margin, if they prefer to keep exposure open, to the extent of the forward premium prevailing for the tenor of un-hedged exposure.

In accordance with RBI guidelines, as at March 31,2023, the amount of bank's credit exposure against un-hedged Foreign Currency Exposure of borrowers attracting 80 bps provisions was '. 4604.40 Crore. The additional RWA on this exposure is ' 87.04 Crore against this additional minimum capital requirement is ' 10 Crore.

Based on the available financial statements and the declarations from borrowers, the Bank has estimated the liability for Un-hedged Foreign Currency in terms of RBI circular RBI/2022-23/131 DOR.MRG.REC.76/00-00-007/2022-23 dated October 11,2022 and is holding a provision of '. 7.61 Crore as on March 31 2023 (Previous Year '. 4.18 Crore)

c) Disclosures on risk exposure in derivatives:

I) Qualitative Risk Exposure

i. The Bank currently deals in over the counter (OTC) interest rate and currency derivatives as also in Interest Rate Futures and Exchange Traded Currency Derivatives. Interest Rate Derivatives dealt by the Bank are rupee interest rate swaps and foreign currency interest rate swaps. Currency derivatives dealt by the Bank are USD/INR currency swaps and cross currency swaps. The products are offered to the Bank's customers to hedge their exposures and the Bank also enters into derivatives contracts to cover off such exposures. Derivatives are used by the Bank both for trading as well as hedging balance sheet items.

ii. Derivative transactions carry market risk i.e., the probable loss the Bank may incur as a result of adverse movements in interest rates/exchange rates and credit risk i.e. the probable loss the Bank may incur if the counterparties fail to meet their obligations. The Bank's “Policy for Derivatives” approved by the Board prescribes the market risk parameters (Greeks limits, Loss Limits, cut-loss triggers, open position limits, duration, modified duration, PV01 etc.) as well as customer eligibility criteria (credit rating, tenure of relationship, limits and customer appropriateness and suitability of policy (CAS) etc.) for entering into derivative transactions. Credit risk is controlled by entering into derivative transactions only with counterparties satisfying the criteria prescribed in the Policy. Appropriate limits are set for the counterparties taking into account their ability to honor obligations and the Bank enters into ISDA agreement with each counter party.

iii. The Asset Liability Management Committee (ALCO) of the Bank oversees efficient management of these risks. The Bank's Market Risk Management Department (MRMD) identifies, measures, monitors market risk associated with derivative transactions, assists ALCO in controlling and managing these risks and reports compliance with policy prescriptions to the Risk Management Committee of the Board (RMCB) at regular intervals.

iv. Interest Rate Swaps are mainly used for hedging of the assets and liabilities.

v. Majority of the swaps were done with First class counterparty banks.

vi. Derivative transactions comprise of swaps which are disclosed as contingent liabilities. The swaps are categorized as trading or hedging.

vii. Derivative deals are entered with only those interbank participants for whom counterparty exposure limits are sanctioned. Similarly, derivative deals entered with only those corporates for whom credit exposure limit is sanctioned. Collateral requirements for derivative transactions are laid down as a part of credit sanctions terms on a case-by-case basis. Such collateral requirements are determined based on usual credit appraisal process. The Bank retains the right to terminate transactions as a risk mitigation measure in certain cases.

ii. Credit Default Swaps

Bank has not taken any position in Credit Default Swap in the financial year 2022-23.

8) Disclosure Relating to securitization

Policy on Securitization of Standard Assets in line with RBI Guidelines has been approved by our Bank's Board. At present our Bank has no exposure under this segment.

9) Off-Balance Sheet SPVs sponsored

The Bank had not floated any off Balance Sheet SPV.

The Bank has not purchased PSLC during FY 2021-22 and FY 2022-23.

e) Provisions and Contingencies: Refer note no 15 (i) of Disclosure made as per the Accounting Standard-29 hereinafter in this schedule.

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

RBI vide Circular DBR.BPBC.No.29/21.07.001/2018-19 dated March 22, 2019 deferred implementation of Ind AS till further notice. However, RBI requires all banks to submit Proforma Ind AS financial statements every half year. Accordingly, the Bank is preparing and submitting to RBI Proforma Ind AS financial statements every half year after approval by Management.

Disclosure on amortization of expending on account of enhancement in family pension of employees of Banks :-

RBI vide their Circular No.: RBI/2021-22/105 DORACC.REC.57/21.04.018/2021-22 dated 4th October 2021, has permitted Banks to amortize the additional liability on account of revision in family pension for employees over a period of not exceeding 5 (five) years, beginning with financial year ended 31st March 2022, subject to a minimum of 1/5th of the total amount being expensed every year. Based on the Actuarial Valuation report obtained by the Bank the additional liability on account of revision in family pension for employees is arrived at ' 821.95 crore. Bank has opted to amortize the same as per the said circular of RBI and has charged an amount of ' 544.52 crore out of ' 821.95 crore to the Profit & Loss account during the financial year ended 31st March, 2022. During the year ended March 31st, 2023, the Bank has charged ' 164.40 crore to the Profit and Loss account. The balance unamortized expense of '.113.03 crore has been carried forward to subsequent years. The consequential impact of unamortised pension liability on net profit for the current financial year is ' 73.53 crores (net of taxes).

. Disclosure Requirements as per the Accounting Standards

The following information is disclosed in terms of Accounting Standards issued by The Institute of Chartered Accountants of India (ICAI):

a) Accounting Standard - 5 “Net Profit or Loss for the period, Prior Period Items, and Changes in Accounting Policies”

The financial statements for the year ended March 31,2023 have been prepared following the Accounting Policies and practices as those followed in the annual financial statements for the year ended March 31, 2022 except for accounting of Performance Linked Incentives (PLI). Until the financial year 2021-22, PLI was accounted for on cash basis and from financial year 2022-23 the PLI is accounted for on accrual basis. This change in accounting policy has resulted in decrease in profit before tax by ' 104.24 crore for year ended March 31,2023.

The expected contribution to the Pension and Gratuity fund for next year is ' 245.08 crore and ' 14.30 Crore respectively.

ii. Defined Contribution Plan:

The bank has a defined contribution pension scheme (DCPS) applicable to all categories of officers and employees joining bank on or after 01/04/2010. The scheme is managed by NPS trust under the aegis of the Pension Fund Regulatory and Development Authority. National Securities Depositary Limited (NSDL) has been appointed as the Central Record Keeping Agency for the NPS. During 2021-22, the bank has contributed ' 244.48 crore (Previous year ' 146.97 crore).

iii. Employees' Provident Fund:-

During the year bank has recognized expenses of ' 0.96 Crore and corresponding year ' 1.12 Crore on account of employer contribution for the employees covered under PF option Scheme i.e. PF Optees.

iv. Long Term Employee Benefits (Unfunded Obligation):

During the year bank has recognized expenses of ' 78.70 crore (Previous Year ' 43.24 crore) towards leave encashment expenses based on actuarial valuation.

Accounting Standard 17 -

Segment Reporting

As per the revised guidelines of Reserve Bank of India the Bank has recognized Treasury Operations Corporate/ Wholesale Banking Retail Banking and other Banking business as primary reporting segments. There are no secondary reporting segments.

The following are the primary segments of the Bank:- Treasury

- Corporate / Wholesale Banking

- Retail Banking

- Other Banking Business.

The present accounting and information system of the Bank based on the present internal, organizational 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, Trust / Partnership Firms Companies and statutory bodies which are not included under Retail Banking and Stressed Assets Management Branch. These include providing loans and transaction services to corporate and institutional clients.

iii. Retail Banking -

The Retail Banking Segment comprises of retail branches, which primarily includes Personal Banking activities including lending activities to corporate customers having banking relations with these branches. The Retail Banking Segment consists of all exposures up to a limit of ' 7.50 crore (including Fund Based and Non Fund Based exposures) subject to orientation product granularity criteria and individual exposures. 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.

Secondary (Geographical Segment)

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

ii) Foreign Operations - Bank has only one Joint Venture in Zambia.

e) Accounting Standard - 19 “Leases”

i. The premises of the Bank were revalued to reflect the market value as on 31.03.2021 based on valuation reports of external independent valuers' and approved by the Board of Directors and ' 881.96 crore increase in value thereof have been credited to Revaluation Reserve Account.

ii. In case of assets, which have been revalued, the depreciation is provided on the revalued amount charged to Profit & Loss Account and the amount of incremental depreciation attributable to the revalued amount ' 65.36 crore for March 2023 (previous year 2021-22 ' 54.12 crore) is transferred from ‘Revaluation Reserves' and credited to “Revenue and Other Reserves”.

iii. Land obtained on lease by bank includes market value as on 31.03.2021 is ' 8.99 crore (previous year ' 8.02 crore) with written down value as NIL (previous year ' NIL), the lease period of which has expired and the bank is still having its offices/building on these lands and vacant land obtained on lease by the Bank includes market value as on as on 31.03.2021 is ' 13.72 crore with written down value as NIL, where the lease period is expired, perusing with authorities for lease renewals.

iv. As per AS-19, operating leases primarily comprise office premises and staff residences, which are renewable at the option of the Bank.

i) Liability for Premises taken on non-Cancellable operating lease are NIL as on 31.03.2023.

ii) Amount of lease payments recognized in the P&L Account for operating leases is ' 392.02 crore as on 31.03.2023 (Previous Year ' 357.07 crore).

v. Additional Disclosure:

Premises obtained by the bank include own property of ' 37.13 crore for which registration formalities are still under progress.

The title of property amounting to ' 37.13 crore acquired on disposal of security are not in favor of bank as the matter is sub-judice.

g) Accounting Standard 22 -Accounting for Taxes on Income

Provision for Income Tax for the year is arrived at after due consideration of relevant statutory provisions and judicial

decisions on disputed issues.

i. Claims against the bank not acknowledged as debt under contingent liabilities (schedule 12) includes ' 5726.89 crore (previous year ' 6050.22 crore) towards disputed Income Tax liability of the parent Bank. It includes Income tax appeals at various levels by bank and Income tax department. Provision for disputed amount of taxation is not considered necessary by the Bank on the basis of various judicial pronouncements and favorable decisions in Bank's own case. Payments/ adjustments against the said disputed dues are included under Other Assets (schedule 11). Disputed service tax matter as on March 31st, 2023 is ' 7.64 crore.

ii. Government of India has inserted Section 115BAA in the Income Tax Act 1961 (“Act”) vide the Taxation Laws (Amendment) Ordinance 2019 dated September 20, 2019 which provides a non-reversible option to domestic companies to pay corporate tax at a reduced rate effective from April 01,2019 subject to certain conditions.

The Bank has assessed the applicability of the act and opted to continue the existing tax rate (i.e. 34.944%) for the financial year ended March 31st, 2023.

j) Additional Disclosures:-

i. Details of Letter of Comfort issue by Banks and outstanding as on 31.03.2023 - There are no Letter of Comfort issued during the year as well as in previous year by Bank.

ii. Payment to Micro, Small & Medium Enterprises under the Micro, Small and Medium enterprises under the Micro, Small & Medium Enterprises Development Act,2006: There has been no reported cases of the delayed payments of the principal amount or interest due to Micro, Small & Medium Enterprises.

iii. Implementation of the Guidelines on Information Security Electronic Banking Technology Risk Management and Cyber Frauds

The bank has formulated policies as per RBI circular RBI/2010-11/494 DBS.CO.ITC.BC.No. 6/31. 02.008/2010-11 dated April 29, 2011. These policies are being reviewed by the management of the bank on periodical basis. The policies were last reviewed by the Board of Directors in the meeting held on 17.03.2023.

k) Reserve Bank of India vide their letter dated June 13, 2017, has put the Bank under Prompt (PCA) Corrective Action in view of high net NPA and negative Return on Assets. Bank had complied with the PCA framework norms meticulously. Reserve Bank of India vide its communication CO.DOS.SED.No.S3988/14.01.040/2022-23 dated

September 20, 2022 has removed our Bank from the Prompt Corrective Action (PCA) framework.

l) Payment to Micro, Small & Medium Enterprises under the Micro, Small & Medium Enterprises Development Act, 2006

There has been no reported case of delayed payments of the principal amount or interest due thereon to Micro, Small & Medium Enterprises.

m) In terms of RBI guidelines DBOD No.BPBC.57/62-88 dated December 31,1988, Inter-Bank Participation Certificates (IBPC) Lending of ' NIL has been undertaken. Accordingly, these have been adjusted from the advances of the Bank. Interest income of ' NIL has been recognized against these borrowings.

n) Disclosure with respect to spreading of MTM losses in AFS and HFT:

This has reference to RBI circular RBI/2017-18/200 DBR No BPBC.113/21.04.048/2017-18 dated 15 June 2018 regarding the option to spread provisioning for mark to market (MTM) losses on investments held in AFS and HFT on account of sharp increase in the yields on Government Securities: NIL

o) Previous year's figures have been re-grouped / re-classified wherever considered necessary to conform current year's classification.