A) Balancing of Accounts and Reconciliation

i. In certain Branches, the balancing t reconcil i alien o fed) trial accounts with subsidiary ledgers is in progress.

ii. Initial matching of debit and credit outstanding ofoid entries in Inter Branch Account tlBR DD), pertains prior to CBS System. Adjustments! including old outstanding caitrics.) have been done up to 31.03.2025 and reconciliation is in progress.

iii. Reconciliation of Drafts payable, Debit Note Receivable/ Payable, RTGK/NHFT (Suspense) is in progress. Previsions have been made as per RBI norms. ReconcilititionorNosdro accounts has been done as on 31.03.2025.

In the opinion of the managem qnt the impact of the above para (i) to tiii), if any, on the Profit & Loss Account and Balance Sheet

though riot quantifiable, will not be materia].

iv. In terms of Reserve Bank oil ndia guidelines, segregation of Debit and Credit entries in Inter Branch Accounts pertaining to the period up Ur 30.09.202d und remained outstanding as on 31.0321025 has been done which has resulted in cither net Debit in some heads, or net credit in other heads. Provision is to be made in respect of Net Debit Lnlrics outstanding Ibr peritid exceeding 6 months. Similar guidelines have been followed for imprest clearing Account also.

In Inter Brunch Account there is net credit balance hence no provision is required to be made.

v. Credit entries outstanding in Blocked Unci aimed Deposit Account (New Blocked account) for the period 01.01.2015 to 31.03.2015 amounting to Rs.58_T E1 5 have been transferred to DF.AF account during fiscal year ended March 2025.

Further, the department transfers unreconciled entries pertaining to more than ill years to DF,AF aecnunl onquarlerly basis.

As on 31.03.2025, un reconciled credit entries amo anting to Rs. 8644$ pertaining to the period Irom 01.04,2014to31.03.2016 are

oulsianding formnTe than 3 years and hence ihcsc entries were transferred to B! ticked Unclaimed Deposit Account (New Blocked

Account).

B) Legal ibrmalitics are yel to be completed in respect of 2 Bank's properties having original value of Rs 2.87 crore und Revalued value (Gross) of Rs. 74.23 crore and Accumulated depreciation of Rs 1.32 crore as on 3 1.03.2025. (Previous year 2 Bank's properties having original cost of Rs.2.87 crore and Revaluation amount of Rs. 74.23 crore).

*Capital Adequacy Ratio (BASEL Il[) is arrived tiller considering the Nef present value (NPVi of Non Interest bearing Recapitalization Bonds infused as capital bv the tkrvt. of India during KY 2020 2t & 2021 22. Further, [lie effect of proposed di vidend has been reckoned in determining capita] funds in the computation or capita] adequacy ratio as at 3 1" March 2024 and 3 i" March 2025.

* Bank has raised Equity Share Capital (including Share Premium) of K.s.1219.39 crorc through Qualified Institutional Placements on March 27, 2025. The Bank has issued and allotted 31.77,98,773 equity shares of Rs. 10 each at a premium of Rs.2fl.j7 per share. Accordingly, the shareholding of Go von merit of India in the Bank has been reduced to ^tf’.ft5'M, as on March 31.2025.

h) Dnnt tiimn from Kesurvt?

A Sum ol Ks.Nil during liitanctal year ended 31.03.2025 (Rs. NIL Ý RY 31.03.2024 (has been drawn fro in lire General Reserve on account of payment ID the claimant of old entries.

DaLu is presented as simple averages ofdaily observation sever the previous quarter (Lq. the average is calculated over a period of 90 days). The simple average are calculated on daily observations over the previous quarters. The ur weighted value of inflows and outflows are calculated as the outstanding bal antes of various categories or types of liabilities, oTf balance sheet items or contractual receivables. The weighted value oT HQ LA arc calculated as the value after haircuts arc applied. The weighted value Tor inflows and outflows arc calculated as the value alter the inflow and outflow rates arc applied. Total HQLA and total net cash outflows arc disclosed as the adjusted value, where the adjusted value of HQLA is the value of total HQLA alter the application of both haircuts and anv applicable caps on Level 2R and Level 2 assets as indicated in this Framework. The adjusted value of net cash outflows is calculated alter the capon inflows is applied, il'applicablc.

QUALITATIVE DISCLOSURE ON BANK’S LIQUIDITY COVE RAGE RATIO

Liquidity Coverage Ratio: The LCR standard aims to ensure that a hank maintains an adequate level of unencumbered High Quality Liquid Assets (HQLAs} that can be readily converted inti) cash at Jitllc/no loss ol"value to meet its liquidity needs Ibra 30 calendar day Lime horizon under a liquidity stress scenario.

LCR has two components:

i. The value of the stock o l"H igh QualityLiqai d Assets (HQ L A} as a N umcrator.

ii. Total Net Cash Outflows: Total expected cash outflows minus Total expected cash inflows, in stress scenario, fur the subsequent 30 calendar days as a denominator.

Defi n ii io n n f Liq u id it y Cu verage Ratio (LC R}:

Stock of high quality liquid assets (HQLAs) > 100% (w.c.rOl .01.20211 Total net cash out flows ov er the next 30 calendar days

The Liquidity Coverage Ratio arrived lor the quarter ended March 2025 was I35.t>5% Rhi basis of simple averages oT daily observations during the period 01 01 2025 to 31 03 2 025) against the regulatory requirement oTl 00%.

The main drivers aJ'LCR of the bark arc High Quality Liquid Assets (HQ LAs} to meet liquidity needs of the bank at all times and basic funding from retail and small business customers.

i) Main driversoTLCFt:

The Bank cm a consolidated basis, during the quarter ended 31st March 2025, had maintained average HQLA (alter haircut) of Rs.28,63b.25 Crore. The HQLA is primarily driven by Government securities in excess ol"m ini mum SLR, Government securities within mandatory SLR requirement, to the extent allowed by RBI under MSF and the facility to avail liquidity lor Liquidity coverage ratio. Also, cash, excessCRR maintained with RBI are important factors Tor Level I HQLA.

Level 2 H QL As prim ari !y consisted of corporate debt securities includi ng commercial papers.

ii) Intra period changes as well as changes over lime:

Lt'R were 12S.'25^tK.j, 142.fi4% and 149.14% tor the months ending January 2025, February 2025 and March 2025 respectively as

against regulatory requirement ofl 1)0%. i) Composition of H teh-Qunlky Liquid AssetsiHQLAj

HQLAx comprise of Level I and Level 2 assets. Level 2 assets are further divided into Level 2Aand Level 2B assets, keeping in view their marketability and pritc volatility. Total weighted value (average) of HQL A tor Lhc quarter ended Marth 2025 is Rs„ 2H,636.25 Crore

The net tosh outflows are calculated by applying RBI prescribed outflow factors lo the various categories oflliabiti ties (deposits, unsecured and secured wholesale borrowings), as well as lo undrawn commitments and derivative related exposures, netted by inflows from assets maturing within 30 days. Average LCR on a daily basis for the quarter ended 31st March 2025 is 135,105%, above RBI prescribed minimum requirement oT 100%.

vv j Concentration of binding sources:

A significant counter party Li defined as a single counter party or group oI"connected or affiliated counter parties accounting in aggregate for more than 1% of the bunk’s total liabilities. Top 20 depositors (other than Ccriilicatc or Deposits) of the Bank constitute 9.43% n Tour tola I deposits wh ich is well within timitof25% as per ALM Policy.

v) Derivative exposures and potential collateral calls:

Derivative exposure is shown as Net Derivative cash inflows within 20 days. Inflows from derivative exposure arose due to maturing forwards.

vi) Currency rntsma [eh i n the LC R

As per the RBI guidelines while Lhe LCR standard is required to be met tin one single currency, in order to better capLunc potential currency mismatch the LCR in each currency needs to be monitored. Accordingly, Bark is maintaining LCR on daily basis in INR and the same is compared against the regulatory requincmcnt. Further bank docs not have exposure to any other significant currencies*, hence LCR is prepared lor I MR currency.

f*A significant currency is one where aggregate liabilities denominated in the currency amount to 5®/u or more of the bank's total liabilities).

vii) A descript ion of the degree of central iyaliononiquidily management and interaction between the group's units: NIL

The liquidity management Tor the bank on enterprise wide basis is the responsibility of the Hoard ofDireetarK. Board of Directors has delegated its responsibilities !? a Committee of the Board called as the “Risk Management Committee of Board". The committee is responsible lor overseeing Lhc inter linkages between difFcrentlypcsorrisk and itsimpacLon liquidity.

Bank has ALM policy which provides the broad guidelines under which all the entities within the group operate in terms of liquidity and interest rate risk.

LCR is computed and monitored on daily basis by the Bank and the same is shared with Treasury/Mid office for liquidity management and discussed i n I nvcslmenl commi ttcc.

Further LCR lor the latest month along with oompari son o Fprev ious months is plated be fore ALCO on monthly basis. Moreover, LC R position a long w ith other 1 iquidi ty parameters is also placed bclbrc RMC.

Cu 111 pus i I i on of H igh -f^ua I ily Liqu i U A ssct> (H QLA)

HtJLAs comprise oTLevel I and Level 2 assets. Level 2 assets are further divided mlo Level 2A and Level 21J asset., keeping in view their markeLability and price volatility. Total weighted value (average) ofHQLA for the quarter ended

Qi] a i .jTATiy k msri miihkcinwet stable funding ratio

The NSF'R is defined an the amount of available stable funding relative to the amount of required stable funding. ““Available stable funding" fASF) is defined as the portion of capital and liabilities expected to be reliable over the lime horizon considered Ihrlhe NSFR, which extends to one year. The amount of stable funding required ("Required stable lunding") (RSF) ofa specific institution is a function of the liquidity characteristics and residual maturities of the various assets held by that institution as well as those of its off balance sheet (OBS) exposures. Minimum Requirement of NSFR should be equal to at least 100% on an ongoing basis.

N5FR= Availabl c Stable Funding | ASF | >100%

Required Stable Funding |RSF|

The minimum NSFR requirement set out in the RBI guideline for the standalone Rank and for Group is L0lf% w.e.f 1st October 2021.

As on 31st March 2025.PSB maintained weighted Available Stable Funding (ASF) ofRs. I 14080.83 crore against the weighted Required Stable Funding (RSF) of Rs. 88723.64 crore. The NSFR Tor ibe quarter ended March 31st, 2025, was at 128.58%.

As on 31 st March 2024. PSB maintained weighted Available Stable Funding I ASF) orRs. 10422338crore against the weighted Required Stable Fun ding (RSF) of Rs. 86928-39 erore. The NSFR for ihe quarter ended March 31 st, 2024, was at 1 19.90%.

Brief about NSFR of the Bank

The Available Stable Funding (ASF) mainly constitutes of the capital base, retail deposit base and binding from non financial companies and long term Funding from institutional clients. A Rev applying the relevant we ights. the capital base remained around Ll.53%. retail deposits (including deposit from small sized business customers) remained 70.02% and wholesale funding remained 14.72 % of flic total Available Stable Funding! ASF).

Required Stable Funding (RSF) consists of34_33% from ‘“Other uneneumbered performing loans with risk weights greater than 35% under the Standardized Approach and residual maturities of one year or more, excluding loans to financial institutions” line item.

Main drivers uf NSFR:

The Bank as on 31 si March 2025, had maintained ASF of Rs. 114080.33 cr. ASF consists offiS.93% from less stable non maturity departs and term deposits with residual maturity oTIcss than one year provided by retail and small business customers and 0.83 % from Stable non maturity (demand) deposits and term deposits with residual maturity oriests than one year provided by retail and small business customers.

RSFconsists or34.33% from “Other unencumbered performing loans with risk weights greater than 35% under the Standardized Approach and residual maturities ofone yearor more, excluding loans to financial institutions” line item.

NSFR for the quarter ended31st March2025 is 128.58%, above RB! proscribed minimum requirement, of 100%.

NSFR has increased from L 19.90% as qF3 1.03.2024 to 128.58% as ol'31.03 22025 mainly due to increase in capital base ofbank by

lUitcLudK an amitunl of R%. 256.02 Crorc transtcrrei! (ju General Reserve during, iransiliun un implementation of RBI's revised valuation guidelines dated l2.Dt.2D23

*Cnrrying value less net depreciation (ignoring net appreciation) i.e.lhe net amount relleeted in the balance sheet. Amount transferred to Investment Fluctuation Reserve during the year 2024-25 is Rs. 72.44.87.2K5/-a) Sale and transfers tu/from HTM category

i| During the year ended .3 I si March 2025 bank has not shifted securities from Held to Maturity lu Available for Sale category and vice versa except those reclassified as part uf transiti on to RBI’s revised valuation guidelines onO I.04.2025.

During the year ended 31st March 2024 hank has shifted Government securities amounting to Rs 700.00 crone Face Value (Rs 7S4.01 erorc Book Value) from Held to Maturity to Available Tor Sale category, whereas no security has been transferred from Available lor Sale to Held to Maturity category. Gain on shilling of securities (tom HTM to AFR was not booked up Iron andgain/loss was recognized or sale of such securities during Lhc year.

ii)Thc value eifsht fling.'' sales Irem HTM category (excluding onetime shilling at the beginning of year and sale under pre announced (Upen Market Ope rati nns auctions) during the year docs noL exceed 5% of the book value of investments held in HTM category at the beginning of the year.

As per RBI Masler Direction No. DOR.ACC.RI'C.No.J5/2E.04 .018/2021 22 daRd 30.08.2021 (updated on I5J I J.021, further updated on 01 .04 .2024 as per financial statements presentation and disclosure, divergence in [he asset classification and provisioning, Hanks should disclose divergences in the asset classification and provisioning. Hanks should disclose divergence, ifeilhcrorbolh of the folio wing conditions are satisfied:

(a'l the additional provisioning forNPAs assessed by RBI as part of its supervisory process exceeds 5 percent ol’thc reported profit before provisions and contingencies for the reference period, and fbf the additional Gross NPAs identified by RBI as part o fils supervisory process exceed 5 percent of the reported incremental Gross NPAs for the reference period.

Divergences are within threshold Limits in I he Bank as .specified above. Hence no disclosure is required with respet: t to RBTs annua [supervisory process for FY 2023 2d.

f| Disci nsuriruf transfer of loan exposures

(1) In accordance with RBI circular no. DOR.STR.RIiC.51/21.04. M 8/2021 22 dated September 24,2021; iu respect of the details oflouns transferred'¹ acquired during the year ended 3 I^J March 2025 arc given bclowr

in terms of RBI Circular No. RBT/DOR.2024 25, 135 DOR.STRRFC.72/21.04.048/2024 25 dated 29lb March. 2025 on ’Revised norms ibr GovcrmrtCIfl Guaranteed Security Receipts {SRsV, Bank has nceopni/cd Security Recci pts guaranteed by Govern men t oi~ I ndia as per cx.tan L guidelines.

This has resulted in an increase in Other Income and Interest Income by Rs. 145.10 trure and Rs. 254.X2 Cmrc respectively for the year ended 3 I si March 2025 in respect cd'lhe Government Guaranteed Security Receipts (SRs) id'R.s. 399.92 C’norc received against transferofloan exposures during current year.

The Ban'll has estimated the liability towards Unhedged Foreign Currency Exposure in terms of RBI (Unhedged foreign Currency Exposure} Directions, 2022 videeireulsr DOR.MRG.REC.7(i/O0 00 007/2022 23 dated October L1,2022 and is hold in g a proyis ion o ITts. 0.5 2 cnorc as an 3 I “ March 2025. (Rs .0.3 8 erorc as on 31.03.2023

Mui hud to asrertai n t he a mmi nf ti f l.~ ei hedged F a roign C u rrc n cy E x posii re (U FCEJ:

The information, on Ue hedged Foreign Currency Exposure (UFCE) is obtained from customer on quarterly basis and is measured by obtaining the information from the clients in two parts i) where Exposure of borrower is up to

Rs.50 cnorca with ull the bants taken together and, ii) where Exposure of borrower is rr me than Rs.dO emirs with all the banks taken together.

The tnlal un hedged exposure in foreign currency is converted to INR or FF.DAI spot rate as on las! working day of the corresponding quarter.

Flanks shall assess the Ur hedged Foreign Currency Exposure (UFOi) of entities with FCE by obtaining information (in UFCE Imm the concerned entity. Provided that the information on UFCE shall be obtained from entities on a (|uarterly basis based on statutory audil, internal audit or self declaration by the concerned entity. Provided further that L^rFCE in formation shall be a ads ted a nd verti tied by the statutory audi tors ofthe entity, at leas t on an annual bus is.

M cthod to estimate the gafent of likely loss:

Reserve Bank oflndia Circular DBOD.No.BP.BC I! (vl 1.06.200; 2013 14 un Capital and Provisioning requirements for exposure to exilities with un hedged foreign currency exposure slating about the guidelines lor USD/INR annualized volatility and directed FKDAJ to publish the USD/INR annual volatility based on the RBI reference rale which has la be used Ibr computation oflikcly loss.

F EOAI a n n ou nces th e 1Q-yea r {120 months rolling j LAV rates on th e last working day of every month. On these rates, the bank calculates the likely loss (rate as given by FEDAI}, current rate 12_23% of total Un-hedged Exposure of the entity with all the banks taken together.

dj Disclosures regarding Priority Sector Lending Certificates (PSLCs)

Bank has purebsd Priority Stetor Lending (’crtiliL'alc (PSLf) Aijricullurc itl Rs. 1600 Crone and Rs. 2f)95 Crorc during the quarter and year ended March 3 1,2025 respectively and Priority Sector Lending.Certificate< PSLC} Small & MaigmatFannersorRs. 800 Cmre during year ended March? 1,2025.

Bank has wild 1200 un its under Pri ori ly See tor Lendi ng eerti ticat.cs (PS LCs) to the tune o f Rs 300.00 crorc under Smal 1 & Marginal [armcra and earned commission income ol'Rsh.75 rrore during year ended 3 I “March 2024.

Bank has sold 3400 units under Priority Sector Lending certificates ('PSLCs) to the tune (if Rs.8 50.00 crore under Smal I & marginal J aimers and co mod commission income of R s.⁴?. 74 Crore duri ng the year ended 31.03 202 3.

Further, Bank has purchased 20440 units (12000 units in Agriculture and 8440 units in small & Marginal Farmers} urderAgrieulture and Smal I & Marginal farmers and incurred cost o I Rs. 23.23 erorc{Rs. 8.99 c rore in Agriculture and Rs. 14.24crorcin Small & Marginal farmers'} during year ended 3 1“ March 202 4.

Hank ts complying with the’reporting requirements ofslalultiry authorities in relation lulNIJ AK/niePrulorma I nil AS I' inane sal Slnfeiacnts arc being submitted to RU1 on ha if yearly basis. Bunk lins on boarded a consultant having considerableexperience in the field oftmplemcnliili&rt oTlNO-AS The consultant is assisting the bank in devising a road map with rosped.^ smooth imp Lenten tut ion oflnd AS.

h) Disclosure of facilities granted to directors and f heir re la lives : Not Applicable to bark

E) Disclosure cut amortization of expenditure on account of enhance mem in family pension nf

em p loyetrs of ha nks

The estimated additional Pens ion liability on account of revision in family pension was Rs236.H4 crone. RBI vide its Circular RB1/202 1 22/105 DOR-ACC.RE^57/21.04.01 K/2Q21 22 dated $ October 2021, had permitted all member Banks of Indian Banks Association to amortize the said additional liability over a period not exceeding five years beginning with the financial year ending 3J^T March 2022. subject to a minimum of l/5'^h of the toLaL amount being eltarged every year. The Bank is amortizing the said liability over a period, not exceeding 5 years commencing from the linancial year ended 31'March 2022, subject to a minimum of Rs 47.37 crorc every year. Balance unamortized amount as on 31" Manch2024 was Rs.94.73 crorc. Accordingly, the Bank has charged an amount of Rs. 11.37 cnorc and Rs.47.37 crore to the Profit & Loss account during current ij tiarter and year ended 31 "March 2025 respectively and the balance unamortized amount of Rh.47.37 crorc has been carried forward. Had the Bank charged the entire additional liability to [ho Profit and Loss Account the net profit {offer tax) For the quarter and year ended 3 t^J March 2025 would have been lower by Rs.30.S2 crorc.

j) Disclusureu[Ea'IIlturCuntfurl{LOCii)issiR'dhy Bunk*

During FY2G24 25, Letter of Com ion [LoC) issued amounting to Rs. Nil against credit facility including Non Fund facility taken fiver from other banks.

Letter ol'Com fort (LOti) amounting in Rs. 3.15 crore, issuedlu other Banks [orNon fund credit facilities. which arc a part o i'tota! credit facilities (Funded/Nnn funded) issued to the borrow eng JWfl outstanding as on 31.03.2021.

tv) Items under the head “Schedule 1 1(VI) Other Assets Ý “Others"exceeding 1 %(oTtcpcrccnL)ofTotii] Assets 15. Hist insure u pcrAccBOilliig^iudiird (AS)

15.1 AS-3 Cash Flow Statement

The Bank prepares cash flow statement in line with requirements of AS-3 using indirect method.

15.2 AS-5.Ni‘t Pm lit or Loss for the period, Prior Periud Henistoid Changes in Accuunliug Puli ties

15.2. I Dicrcm; no materia! prior period Llems included in Prolit Je Loss Account required io he disclosed as

per AH-5 revad with RBI guide fines except those disclosed elsewhere in the DfillS.

15.3 AS-'J Rl'mmiul Recognition

Certain items of income are recognized im realization basis as disclosed at poinL no. D. I - "Revenue Recognition” of Stated ale 17 - Significant Accounting Policies. However, In fettmorUfil guidelines, the said income is not considered to be material.

15.4 AS-11) Property Plant it Equipment/ Fixed Assets

The bank lias eondue ted revaluation of its immovable properties during the previous year 2 02 3 -24 based on the reports obtained from the external rn dependent valuers. I'lie e losing balance of Re va! nation Reserve as (in JI.03.2U25 (Net ot amount transferred lo revenue reserve! is Ks. 1063.46 emre (Previous year Rs. lUfth.JO cruft).

Premises includes Capital work m progress of Rs. b.25 Cnure as on 3l.U3_Z025 (in the previous year as on JI .03.2U24, Rs. 37,26 Crate).

15.5 AS 15- employee* Ueiiclit

Provisions for Pension, <iraluily. Leave encashment and Other long lenu benefits have been made in accordance with the Revised Accounting Standard (AS Ý \ 5) Employees Benefits issued by ihe ICAI.

The summarized position of post-employment benefits recognized m the Pro tit A Loss A/c and Balance Sheet is us under

IN ole: For the purpose of-segment reporting i n terms of AS J 7 pflCA.] and as prescribed in RBJ guidelines, the business of the Bank has been classified into four segments i.e. a) Treasury Operations. b| Corppratc/Wti o! c sa Ic Banking, e} Retail Bank ing( further cl ass died into Digital Banking and Other Retail banking and d \ Other Banking Operations.

tegmental Revenue. ResulLs, Assets iS: Liabilities in respect of Corporate > Wholesale and Retail Banking segment have been hifurea ted on the basi r -of c* posure to these segments.

Part B Ceogruphleal Segment:

Since the Bank docs not have any overseas branch, reporting under Geographic Segment is not applicable.

IS.ID AS 21 - Cansdjjdafed Financial Statement

I lie Hank di*es nol haw :uiy s'libiidiary/assoeiale and as sud: AS 21 is not applicable.

15.11 AS 22 - Accounting Pur Taxes on Income

IS. 11.1 The Battle has accounted lur Income Fax incompliance with Accounting SUmdard-22 'Accounting lor taxes lhi Income’ issued by ICA1 15.1 U Provision ibr Income Tax and Deferred Tax held by the Bank is considered adequate faking into account the opinion oflcgal experts and favourable judicial pronouncements.

15.11.4 Review of Deferred Tax Assets has been earried oul based nn Bank management's estimate of passible tax benefits againsi timing difference lit accordance with Accounting Standard 22 “Accounting for Taxes on income" issued hy The institute of Chartered Acctmnlanls of India and Wei Deferred Tax Assets of Rs.129B.52 erore is rooogn i/ed as at 31 si Match 202 51 Rs. I fi20.23 erore us at 31 si March 2024).

15.11.5 No provision has heen considered necessary in respect ofdispu ted demands of lax ItLigution aggregating to Rs_977_18 erore (Previous year Rs. 887.01 erore J in view of decisions of appcllale authorities / judicial pronnuneements / opinions of legal experts.

15.11 .(i The Government ol’India, vide the Taxation Laws (Amendment | Act. 2019, inserted seel ion 11 ABA A in the Income Tax Act 19b I w.eT. April J, 2019. The Bank has evaluated the oplians available under section II5BAA of The Ineomc Tax Act, I9t;i and opted to continue to recognize the Taxeson Income for the year ended 31.03.202 5 as per the earlier pravisions.

15.12AS 23 Accounting for Inv estments in Associates in consolidated Financial Slalemcnts

The Bank dues not have any subsidiary.'¹ associate and us such AS 23 is not applicable.

t5.13AS It Intangible Asm

The application software in use in the Bank has been developed in house and has evolved over a period rtf time. Hcnce_T the eosLs of soft ware is essentially pari ol" Bank's operational ex ponses like Wages cle. and as such are changed K} the respective heads of expenditure in the Profit and LossAccotmL

tS.l-l Accounting Standard 28 - Impairment uT Assets

fixed Assets possessed by Bank are treated as 'Corporate Assets' and not 'Cash Genera liny l-nits¹ as defined by AS 2R. Tti the opinion of the Management, there is no impairment of the 'Fixed Assets' of material amount as of 3l.0d.2025/31.03.202-T requiring recognition In lermsoi'AS 28 issued by the JC AI. The impairment of other assets including advances has beer provided foras per Prudential Norms prescribed by the Reserve Bank oflndia.

13.1 S A ecu timing, Standard 29- Provisions, C untingent Liability and C oiilmgcnt Assets

15.15,(As per AS 29 Provisions. Contingent Liabilities and Contingent Assets, issued by the Institute of Chartered Aecoun [ants orindiu. the Bank recognizes no provision lor

ei } Any possible obligation that arises from past events and the existence of which will be continued only by the occurrence or non oceurrcncc ol’oneor more uncertain iulurc even l& not wholly within the control of the Bank, or

b) Any present obligation from lhc past events but is not reeogjiijccd because

* It is not probable that an outflow « resources embodying economic benefits will be required to settle the obligation; or

* A reliable estimate cT the amount of obligation cannot be made.

Such obligations are recorded as contingent liabilities. These are assessed continually and only thal pari of the obligation for which an outflow of resources embodying economic benefits is probable, is provided for, except in the extremely rare circumstances where no reliable; estimate can be made.

16. Disclosures in Terms of MSIYIED Act 2006

Guideline given in Micro, 5mall and Medium [Enterprises Development Act 2006 have been complied with Tor purchases made during FY 2024 25 and payments have been made lo the vendors in time as per Ac L Since there had been no delay in payment, therefore no penal interest had been paid during FY 2024 25.

17. AS per the Reserve Bank of I ndia d ircc tie ns Ibr i niliating Instil veney Process Pro-vis i uni n g Norms, vide Idler No. DBR. No. DP: 15 [99/21.04.048/2016 J7 dated June 23, 2017, and DGR.No.BP 1907/21.04.048/2017 18 dated August 28, 20 L 7, the bank is holding the provisioning ofRs.230.05 Crnrc (3 1st March, 2024 Rs. 230.05 Crorc) as against I he balance outstanding of Rs 230.05 ertm: (3 1st March, 2024 Rs 230.05 crone) as on 31 st March, 2025 in respect ol'NPAborrowal accounts referred in aforesaid circular.

19.The bank has funded exposure of Rs.99.98 enure in two borrower's accounts which are under litigation and respective adjudicating authorities have granted slay on downgrading. The bank has made adequate provisions Ibr the accounts.

21).Pursuant to the RBI circular dated 19th December 2023. in respect of investment in Alternate Investment Fund (A IF)-. NILtRs. 0.50 emre for FY 1023 24) prevision is required during the quarter/ year ended 31 st March 2025 and the same has been provided.

21. The Board of the Bank has proposed dividend fit} ft.70% i.e. of ^ 0.07 per equity share (Face Value of? 10/ per share) for the Financial Year 202 4 25 i.c. Rs. 0.20 per equity share Ibr FY 2023 24) in Board Meeting dated April,29,2025 subject lo requisite approval from Shareholders.

22. The Bank is carrying a provision of Rs. 8.51 ere re as on 31 si March, 2025 (Rx. 9.21 Choreas on 31 ‘ March 2024) being5%ol"oulstandLng food credit availed by the Slate Government ofPunjab as per the RBI letter no. DRR(FtP) No. 7201.21.04.132/2017 18 da ted 08.02.2018 issued to SB!, the lead bank.

23. The financial statements for the yearended 3 I” March, 2025 have been prepared following the same accounting policies and practices as those followed in the earlier year ended 31' March, 2024 except for:

a.Thc classification and valuation of in vestments which is as per the Master Direction No. RB l/DOR/2023 24/104 DOR.MRG.30/21.04.141/2023 24 on Classifiealion. Valuation and Operation of Investment Portfolio or Commercial Banks (Directions), 2023 dated 12“’ September. 2023 issued by Reserve Bank oflndia and applicable from0[“April, 2024.

On transition to the Ihuncwork on 0 3 April. 2024. the net dilTcrencc of Rs.4,249.54 cron: (debit), net of ins impact, between the revised carrying value and the previous carrying value of the investment pen folio has been adjusted / debited in the General Reserve in accordance with this framework. Also, the balances in Invest men t Reserve Account I IRA | asnl'31'¹ March, 202-1 amounting LoR.s253.32crore has been irans I erred to the Revenue/General Reserve since Bank meets the minimum regulatory requirementsaMFR. Funber. there is increase in ineomc on investments and AFS Reserve by R.s. 454.72 Crorcand Rs.7b.fi-2 ercrcs during the current year ended 3 I" March, 2025 respectively, b. As per the Accounting Policy till 31 st March, 2024. the recovery in non performing assets (other than the eases covered under special schemes introduced by RBI, Strategic Debt Restructuring, Flexible Structuring ot'Long Term Project Loans. Change in Ownership of Borrowing f\ntitics_T Outside Strategic Debt Restructuring Scheme where subsequently the account turns NPA) was appropriated first towards principal and thereafter towards interest and charges. To ensure belter financial presentation and in consonance with industry practice, the Bank during the current year 2024 25 has changed the said appropriation policy from the beginning of the year i.c. from 1st April, 2024 and accordingly has appropriated Ibe recovery in the non performing assets (NPA) first towards Charges, Costs etc., thereafter towards Interest irregularities Ý'?certicd InECTCsl and then towards the principal. The same has resulted in increase in interest income and NPA by Rs.48.07 crone for the year ended 3 1st March. 2025 and increase in provision by Rs.23. J 5 cnorc lor the year ended 31 st March, 2025.

24. Accounting Standard 11 The IifTects of Changes in foreign exchange rates: Net income on account of exchange differences credited to Profit and Loss aceounL for the year is Rs. L 1..95 crore (Rs.20.91 crate).

25. The figures of previous period have been regrouped and reclassified wherever considered necessary in under to make them comparahte with the figures of the current period.