i) Qalitative disclosures Treasury (Foreign)

The Bank uses Interest Rate Swaps (IRS), Currency Swaps and Options for hedging purpose to mitigate interest rate risk and currency risk in banking book. Such transactions are entered only with Clients and Banks having agreements in place.

a) The Risk Management Policy of the Bank allows using of derivative products to hedge the risk in Interest/Exchange rates that arise on account of overseas borrowing/FCNR(B) portfolio/the asset liability mismatch, for funding overseas branches etc.

b) The Bank has a system of evaluating the derivatives exposure separately and placing appropriate credit lines for execution of derivative transactions duly reckoning the Net Worth and security backing of individual clients.

c) The Bank has set in place appropriate control systems to assess the risks associated in using derivatives as hedge instruments and proper risk reporting systems are in place to monitor all aspects relating to derivative transactions. The Derivative transactions were undertaken only with the Banks and counterparties well within their respective exposure limit approved by appropriate credit sanctioning authorities for each counter party.

d) The Bank has set necessary limits in place for using derivatives and its position is continuously monitored.

e) The Bank has a system of continuous monitoring appraisal of resultant exposures across the administrative hierarchy for initiation of necessary follow up actions.

f) Derivatives are used by the Bank to hedge the Bank's Balance sheet exposures.

g) The income from such derivatives are amortized and taken to profit and loss account on accrual basis over the life of the contract. In case of early termination of swaps undertaken for Balance Sheet Management, income on account of such gains would be recognized over the remaining contractual life of the swap or life of the assets/liabilities whichever is lower.

h) All the hedge transactions are accounted on accrual basis. Valuations of the outstanding contracts are done on Mark to Market basis. The Bank has duly approved Risk Management and Accounting procedures for dealing in Derivatives.

i) The derivative transactions are conducted in accordance with the extant guidelines of Reserve Bank of India.

Treasury (Domestic)

The Bank uses Rupee Interest Rate Swaps (IRS) for hedging purpose to mitigate interest rate risk in Government Securities and to reduce the cost of Subordinated Debt. In addition, the bank also enters into rupee interest rate swaps for trading purposes as per the policy duly approved by the Board. Swap transactions are entered only with Banks having ISDA agreements in place.

a) The bank has put in place an appropriate structure and organization for management of risk, which includes Treasury Department, Asset Liability Management Committee and Risk Management Committee of the Board.

b) Derivative transactions carry Market Risk (arising from adverse movement in interest rates), Credit risk (arising from probable

counter party failure), Liquidity risk (arising from failure to meet funding requirements or execute the transaction at a reasonable price), Operational risk, Regulatory risk and Reputation risk. The Bank has laid down policies, set in place appropriate control systems to assess the risks associated in using derivatives and proper risk reporting and mitigation systems are in place to monitor all risks relating to derivative transactions. The IRS transactions were undertaken with only Banks as counter party and well within the exposure limit approved by the Board of Bank for each counter party.

c) Derivatives are used by the bank for trading and hedging. The bank has an approved policy in force for derivatives and has set necessary limits for the use of derivatives and the position is continuously monitored. The value and maturity of the hedges which are used only as back to back or to hedge bank's Balance Sheet has not exceeded that of the underlying exposure.

d) The accounting policy for derivatives has been drawn up in accordance with Reserve Bank of India guidelines, as disclosed in Schedule 17 - Significant Accounting Policies (Policy No.6).

• In line with the guidance issued by the Reserve Bank of India in February 2016, the Bank has set up a Steering Committee headed by the Executive Director along with a Working Group consisting of four (4) General Managers which monitors the progress of Ind-AS implementation.

• Bank has also formed a core team of 10 members and ECL team of 7 members drawn from various functional departments for taking forward for implementation of Ind AS.

• Bank has appointed a consultant for implementation of Ind AS in our Bank for a period of three years from 09.11.2022

• Bank in the past imparted training to Executives as well as Officials attached to various Administrative Offices.

• Based on the GAP Analysis report, Bank has identified customization requirement in existing system for generating Ind AS compliant financials which includes fair valuation of staff advances, staff deposits, computation of Effective Interest Rate (EIR) for loans classified under Amortized cost, Expected Credit Loss (ECL) model development involving Probability of Default (PD), Loss Given Default (LGD) Exposure at Default (EAD) etc with the help of consultant appointed in the initial stage. Bank is in the process of floating RFP for procurement of Software and requirement hardware for implementation of Ind AS in the bank.

• Proforma financials Statements are being submitted to Reserve Bank of India according to the time lines stipulated by Reserve Bank of India.

1. Pension:

The additional liability on account of enhancement in family pension in view of Government guidelines, works out of Rs Rs.425,85,83,225- as per the Actuarial Valuation.

As per Reserve Bank of India Circular RBI / 2021 - 22 / 105 / DOR. ACC. REC. 57/ 21.04.018/2021-22 dated 04.10.2021 banks are permitted to amortise the total liabilities over the period of five years. The Bank has opted the said provision of Reserve Bank of India and has charged minimum amount of Rs.21,29,29,161.25 for the quarter ended March 31^st 2023.

For the Financial Year 2022-23, Bank has provided an amount of Rs 85,17,16,645 for amortization of family pension.

The balance unamortized expenses of Rs 255,51,49,935-has been carried forward.

2. Gratuity:

Unamortised gratuity liabilities as on March 31^st2023 is Nil.

Provision for the employee benefits pertaining to Pension, Gratuity & Leave encashment have been made on the basis of Final Actuarial Valuation.

15. Letter of Comfort (LoC):

Banks should disclose the full particulars of all the letters of comfort (LoCs) issued by them during the year, including their assessed financial impact , as also their assessed cumulative financial obligations under the LoCs issued by them in the past and outstanding, in its published financial statements, as part of the “Notes to Accounts”

Particulars FY 2022-23

Letters of Comfort issued during the year - NIL

Letters of Comfort outstanding as on 31.03.2023 - 3

Assessed Financial impact - NIL

Cumulative Assessed Financial Obligation - NIL

Cumulative position of LOC's outstanding as on March 31,2023:

1. During the year 2009-10, the Bank has issued a Letter of Comfort (LoC) undertaking to maintain a minimum CRAR of 12% in respect of Bangkok branch and to arrange to convert retained earnings to capital funds and/or infuse further capital in order to restore the CRAR to a minimum of 12%, subject to approval from Reserve Bank of India. The assigned capital of Bangkok Branch stands at THB 2200 Mio(25.97) as on March 31^st 2023.

In the worst case scenario of the entire textile exposure of the branch becoming NPA. We may have to make additional provision to the extent of THB 92.854 Mio being unsecured portion of standard textile advances. If this contingency arises, there would be no additional capital to be remitted as existing reserves are adequate to cover the unsecured amount

During the year 2010-11 has issued a letter of Comfort favoring Bank Negara Malaysia. The Bank in association with other Joint Venture partners will provide support to India International Bank (Malaysia ) Berhad in funding, provide support to India International (Malaysia) Berhad in funding, business and other matters as and when required and ensure that it complies with the requirements of the Malaysian laws, regulations and policies in the conduct of its business operations and management. The financial impact of the letter of Comport issued to bank Negara Malaysia is to the tune of our share of 35% of the paid up capital of MYR 330 Mio i.e., MYR 115.500 Mio on various dates

Based on the host country regulators guidelines, Bank has issued letter of Comfort favoring CBSL at its meeting held on 12.09.2019 for meeting all obligations and liabilities arising out

16. In accordance with the Reserve Bank of India Circular No DBR No. BP BC.18/21.04.048/2018-19 dated 01.01.2019, DOR.No.BPBC.34/21.04.048/2019-20 dated 11.02.2020 and DOR.No.BPBC/4/21.04.048/2020-21 dated 06.08.2020, on “Relief for MSME borrowers either exempted or registered under Goods and Service Tax (GST)”, the details of MSME restructured accounts from 01.04.2019 to 31.03.2023 are as under:

17. COVID-19 pandemic has adversely impacted the economic activity across the globe including the Indian economy for more than two years. However, the bank's results, operations and asset quality have not been affected much because of the pandemic. Further, bank has made necessary provisions for all COVID related restructured loans. The Bank is however keeping a close watch on developments on an ongoing basis and taking proactive measures continuously to maintain and improve asset quality. The bank, therefore, believes that there may not be any significant impact on Bank's future financial results

DISCLOSURES UNDER ACCOUNTING STANDARDS1. Accounting Standard 5 - Net Profit or Loss for the period, prior period items and changes in accounting policies

The financial statements have been prepared following the same accounting policies and practices as those followed for the year ended March 31,2022.

During the year, there were no material prior period income / expenditure items.

2. Accounting Standard 9 - Revenue Recognition

Revenue has been recognized as described in item No. 2 of Significant Accounting Policies - Schedule 17.

3. Accounting Standard 11 - The Effects of Changes In Foreign Exchange Rates

19. Comparative Figures

Previous year's figures have been regrouped / rearranged / reclassified wherever necessary.

4. Accounting Standard 15 - Employee Benefits

i. The Bank had adopted Accounting Standard 15 (Revised) “Employees Benefits” issued by the Institute of Chartered Accountants of India, with effect from 1^st April, 2007.

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

(a) Defined Benefit Schemes:Changes in the present value of the obligations

The estimates of future salary increases, considered in actuarial valuation, take into account actual return on plan assets, inflation, seniority, promotion and other relevant factors, such as supply and demand in employee market. In respect of overseas branches, disclosures if any required for Employee Benefit Schemes are not made in the absence of information.

h) The financial assumptions considered for the calculations are as under:

Discount Rate: The discount rate has been chosen by reference to market yield on government bonds as on the date of valuation (Balance sheet dated March 31^st 2023).

Expected Rate of Return: The Overall expected rate of return on assets is determined based on the market prices prevailing on that date applicable to the period over which the obligation is to be settled.

Bank's best estimate expected to be paid in next Financial Year for Gratuity is Rs.100.00 crores.

5. Accounting Standard 17 - Segment Reporting

The Bank has adopted Reserve Bank of India's revised guidelines issued in April 2007 on Segment Reporting in terms of which the reportable segments have been divided into Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations.

Bank does not have any subsidiary.

The consolidated financial results are prepared in accordance with AS 21 on “Accounting for Consolidated Financial Statements”, AS 23 on “Accounting for Investment in Associates” and AS 27 on “Financial Reporting of Interests in Joint Ventures” issued by the ICAI & guidelines issued by the Reserve Bank of India.

*Since the shareholding in Universal Sompo General Insurance Company Ltd., is less than 25% the same has not been considered as Joint Venture as per extant Reserve Bank of India guidelines and thus not considered for preparation of consolidated financial statements.

10. Accounting Standard 24 - Discontinuing Operations

The Bank has not closed any of its Overseas Branches during the currency financial year 2022-23. Hence the data relating to this disclosure may be treated as Nil. This standard establishes principles for reporting information about discontinuing operations. Merger/closure of branches of banks by transferring the assets/liabilities to the other branches of the same bank may no be deemed as a discontinuing operation and hence this Accounting Standard will not be applicable to merger/closure of branches

of Bank. Disclosures shall be required under the standard only when: (i) discontinuing of the operation has resulted in shedding of liability and relisation of the assets by the bank or decision to discontinue an operation which will have the above effect has been finalized by the bank and (ii) the discontinued operation is substantial in its entirety.

11. Accounting Standard 26 - Intangible Assets

The software acquired for core banking system is treated as intangible asset and amortized over a period of 3 years

12. Accounting Standard 27 - Financial Reporting of Interest in Joint Venture

Our Bank (with 35% share) has floated a Joint Venture at Malaysia along with Bank of Baroda (40%) and Union Bank of India (25%) (erstwhile Andhra Bank now merged with Union Bank of India) by name India International Bank (Malaysia) BHD. IIBMB has an Authorized capital of MYR 500 Mio. The Joint Venture's paid up capital is MYR 330 Mio (previous year MYR 330 Mio).

As on March 31^st 2023, Bank's Investment value in the Joint Venture as per Books stands at Rs 193.44 crore (original investment value Rs.199.58 crore as reduced by diminution in value of investment amounting to Rs 6.14 crores).

13. Accounting Standard 28 - Impairment of Assets

Fixed Assets owned by the Bank are treated as ‘Corporate Assets' and are not ‘Cash Generating Units' as defined by AS-28 issued by ICAI. In the opinion of the Management, there is no impairment of any of the Fixed Assets of the Bank.

14. Accounting Standard 29 - Provision for Contingent Liabilities and Contingent Assets:

The guidelines issued by the Institute of Chartered Accountant of India in this respect have been incorporated at the appropriate places.