1

India’s National Export Credit AgencyInvestor Presentation

Presentation Outline

2

Exim Key Credit Highlights

The India Story

The Exim Bank Story

Appendix

1

4

3

2

3

Exim Key Credit Highlights

4

Exim Key Credit Highlights

Management Strength

India: Strong Macro backed by supportive policy Environment

Exim: Proxy to Sovereign

Financial HighlightsPolicy Role at National Level

1

2

34

5

India’s engine for growth of International

Trade

100% owned by the Government of India (“GoI”).

An Instrument of Government policy as India’s official Export Credit Agency.

Assists GoI in policy formulation and project selection under Economic

Diplomacy.

Rated at par with the Sovereign.

Policy Business Guaranteed / Insured by the Sovereign.

Strong regulatory capital position.

5

The India Story

6

India: Strong Macro backed by supportive Policy Environment

Resilient GDP Growth(1,2,3)

18.6% 18.2% 17.7% 17.9% 17.1%30.8% 30.0% 29.8% 29.3% 29.1%50.6% 51.8% 52.5% 52.8% 53.8%1919.4 2043.3 2147.2 2271.0

2585.0

6.4%7.4%

8.2%7.1% 6.7%

FY 14 FY 15 FY 16 FY 17 FY 18E

(% G

row

th)

Agriculture (%) Industry (%) Services(%) Real GDP Growth (%)

7.1% 6.7%7.3% 7.5%

6.7% 6.9% 6.6% 6.4%

1.5%2.3%

2.9% 2.7%

3.2%3.7% 3.9% 3.9%

2016 2017 2018(p) 2019(P)

India China United States World

World’s 6th largest economy based on nominal GDP in 2017.(2)

o Nominal GDP for 2017: ~US$ 2.6 tn.(2)

World’s 3rd largest economy based on GDP measured in PPP terms in 2017.(2)

o GDP in PPP terms for 2017: ~US$ 9.5 tn.(2)

GDP growth for Q1 2018-19 (Apr-Jun) estimated at 8.2%, as against 7.0% in Q3 (Oct-Dec) and 7.7% in Q4 (Jan-Mar).(3)

GDP growth forecast for CY2018 at 7.3% (5)

Economic growth to be driven by a recovery from the transitory effects of the currency exchange initiative (demonetization) andimplementation of the Goods and Service Tax (GST) and supported by strong private consumption. (2)

Favorable demographic profile: 66% of the population is between the age of 15 to 64 years.(4)

Source: (1) Institute of International Finance (IIF); (2) IMF World Economic Outlook April 2018. Data for CY; (3) Ministry of Statistics and Programme Implementation (MOSPI); (4) World Bank Database;(5) IMF World Economic Outlook July 2018 Update. FYxx means financial year ended March 31, 20xx.; E- Estimated P - Projected;

No

min

al G

DP

(U

S$ b

n)

7

Indian Economy: Key Economic Indicators

General Government Debt (% of GDP) (1) Current Account Deficit (2) Currency Movement (4)

Key Macroeconomic MetricesCPI Inflation Rate (2)**

Key Parameters FY08 FY13 FY18 Change

Gross National Saving (% of GDP) (3) 36.8 33.8 30.0# (380 bps)

Gross Domestic Investment (% of GDP) (3) 38.0 38.6 30.6# (800 bps)

Gross Fixed Capital Formation (% of GDP) (3) 32.9 33.4 28.5 (490 bps)

Capital Expenditure(3)(5) 16.9 11.8 12.3## 50 bps

Fiscal Deficit (% of GDP) (3) 2.5 4.9 3.3## (160 bps)

Revenue Deficit (% of GDP) (3) 1.1 3.7 2.2## (150 bps)

FDI Inflows (US$ bn) (2) 34.8 34.3 61.0 77.84%

Exchange Rate (INR/US$, avg.) (2) 40.2 54.1 64.4 19.04%

52.2 51.4 51.6 50.1 50.1 48.8

14.9 15.2 16.6 17.6 17.5 18.7

67.1 66.6 68.2 67.7 67.6 67.5

FY 14 FY 15 FY 16 FY 17E FY 18F FY 19F

Centre State

(87.8)

(32.3) (26.8) (22.1)(15.2)

(48.7)(15.8)

-4.8%

-1.7% -1.3% -1.1% -0.7%

-1.9% -2.4%

FY13 FY14 FY15 FY16 FY17 FY 18FY 19

(Apr-Jun)

Current Account Balance (US$ bn) % of GDP

9.3%

5.8%4.9% 4.5%

3.6% 3.7%

FY14 FY15 FY16 FY17 FY 18 FY 19(Apr-Aug)

CPI

Source: (1) Institute of International Finance (IIF) Database; (2) Reserve Bank of India, Press Release and Online Database (accessed online on 18/09/2018); (3) Central Statistics Office; (4) Bloomberg (Rebased to 100); (5) % of Total Expenditure for FY08 & FY13 and % of Budget estimate for FY19; # Data pertains to FY17 Revised Estimates; ## Data pertains to Budget Estimates FY19 ; ** Base year for CPI Inflation FY13-FY17 is 2012=100.

Sep-14 Sep-15 Sep-16 Sep-17 Sep-18

Indian Rupee Russian RubleBrazilian Real Chinese Yuan

8

Sound External Sector

Trend of Merchandise Trade(1) Trend of Services Trade(2)

India’s Export Pattern(1) India’s Import Pattern(1)

41.6

43.0

37.5

28.9

37.4

60.9

36.0

32.9

28.2

21.5

27.6

32.7

24.6

16.6

23.4

19.2

47.0

44.7

Gems & Jewellery Chemicals Petroleum Products

Textiles Base Metals Agri & Allied Products

Machinery Transport Equipments Others

108.6

164.0

74.6

83.9

51.5

32.9

40.4

37.4

39.1

35.7

31.7

26.0

27.4

26.7

22.2

16.8

69.2

67.3

Gems & Jewellery Electronics Items

Chemicals Machinery Ores & Minerals

Base Metals Agri & Allied Products Others

FY 2013

FY 2018

FY 2013

FY 2018

Merchandise trade (exports + imports) as percentage of GDP stood at 29.7% in FY18.(1) India’s share in global merchandise trade stood at 2.1% (2017).(3)

India emerged as the 20th largest merchandise exporter in 2017; and accounted for 1.7% of global merchandise exports in the same year.(3)

India is the 9th largest exporter of services in 2017, accounting for 3.4% of global services exports.(3)

Source: (1) MOCI/IIF; (2) Balance of Payment Statistics, RBI; (3) World Trade Organization (accessed on 18/09/2018).

(US$ bn) (US$ bn)

US$ 300.4 bn

US$ 303.3 bn

US$ 490.7 bn

US$ 464.7 bn

300 314 310262 276 303

136

491 450 448381 384

465

216

FY13 FY14 FY15 FY16 FY17 FY 18 FY 19 (Apr-Aug)Exports Imports

146 152 158 154 163 158

8681 79 82 85 96 95

53

FY13 FY14 FY15 FY16 FY 17 FY 18 FY 19 (Apr-Aug)Exports Imports

Petroleum Crude & Products

9

External Debt vis-à-vis External Reserves

(1) ‘Volatile Capital Flows’ is defined to include cumulative portfolio inflows and short-term debt (RBI). For FY18, Volatile Capital Flow data pertains to end-Dec’17;(2) Volatile Capital Flows to Reserves ratio peaked at 97.4% in September 2013; (3) Source: RBI/Ministry of Finance, Government of India.

External Debt 409.4 446.2 474.7 485.0 471.3 529.7

External Reserves 292.0 304.2 341.6 360.2 370.0 424.5

External Debt External Reserves

71% 68% 72% 74% 78% 80%63% 62% 67% 69% 73% 75%94% 90% 92% 87% 86% 87%

269% 301%371% 403% 394% 391%

FY13 FY14 FY15 FY16 FY17 FY 18

External Reserves :External DebtFC Assets : ExternalDebtVolatile Capital Flows:External ReservesFCA: Short-term debt

34%

24%

17%

14%

6% 4%

38%

19%

24%

11%5%

2% Commercial Borrowings

Short Term

Non Resident

Multilateral

Bilateral

Trade Credit89%

9%

2%

94%

5%1%

ForeignCurrencyAssetsGold

SDRs /ReserveTranche

FY 18

(US$ bn)

FY 18 FY 13FY 13

10

India’s Twin Balance Sheet Problem

Post Global Financial Crisis Resolution

Bad-Loan-Encumbered Banks

Pre Global Financial Crisis

Investment-GDP Ratio soared by 11% points to 38% in four years to FY08.

Expectations of sustained double digit growth by corporates.

In three years to FY09, bank credit doubled.

Indian companies aggressively acquired companies overseas (e.g.: TATA Steel’sacquisition of Corus Steel, Hindalco’s acquisition of Novelis Inc).

GNPA Ratio for Scheduled Commercial Banks (SCBs) soared from 2.3% as on March31, 2008, to 11.6% as on March 31, 2018. GNPA ratio for Public Sector Banks (PSBs)as on March 31, 2018 was 15.6%*.

SCB’s GNPA Ratio projected to increase to 12.2% by March 2019*.

Bunching of bad loan recognition due to previous regulatory forbearance.

Not a systemic failure - exogenous factors / delay in recognition.

Accommodative monetary policy tightened due to

rise in inflation:

o Repo rates increased from 4.75% in April 2009 to 8.50% in October 2011.

INR Depreciation added to the stress in FC debt servicing:

o USD/INR depreciated from 52.97 in February 2013 to 68.36 in August 2013.

In 2013, 33% of corporate debt was owed by companies with ICR < 1; increased to above40% in late 2016.

Capacity Utilization in Industry declined from 80.9% in Q3FY10 to 75.2% in Q4FY18.

Asset Quality Review (AQR).

Schemes - 5:25 Flexible Refinancing, Strategic Debt Restructuring (SDR), Scheme forSustainable Structuring of Stressed Assets (S4A) - withdrawn w.e.f. February 12,2018.

The Insolvency and Bankruptcy Code, 2016 (IBC).

Announcement of INR 2.11 tn capital infusion into PSBs, including re-capitalisation bonds of INR 1.35 tn (INR 800 bn capital already allocated to PSBs).

Source: RBI Economic Survey 2016-17 & 2017-18, Bloomberg Database.* Financial Stability Report, RBI, June 2018.

11

Economic, Institutional and Structural Reforms

Make in India.

Liberalisation of FDI-25 Focus Sectors.

FDI Norms: Up to 49% FDI permitted in Air India; 100% permitted in single-brand retail.

Aadhaar backed Direct Benefit Transfer (DBT).

The Real Estate (Regulation and Development) Act, 2016 (RERA).

The Insolvency and Bankruptcy Code, 2016 (IBC).

The Banking Regulation (Amendment) Act, 2017.

Constitution of Monetary Policy Committee (MPC) under the Monetary Policy Framework Agreement.

Currency Exchange (Demonetisation).

Goods and Service Tax (GST).

Bank Recapitalisation Bonds.

Targets set by N K Singh Committee on Fiscal Discipline:

o Debt-to-GDP ratio of 40% for Central Government, 20% for State Governments and fiscal deficit of 2.5% of GDP by FY23.

India jumped up 30 notches into the top 100 rankings on the World Bank’s ‘Ease of Doing Business’ index in 2017:

o On the taxation index, India has vaulted up 53 places.

Moody's upgrades India's Government bond rating to Baa2(stable) from Baa3(positive):

o Based on the reforms carried out, India’s structural credit strength and global competitiveness have improved.

12

The Exim Story

13

Bank : India’s Export Credit Agency

Vision

Genesis

“To develop commercially viable relationships with a target set of externally oriented companies by offering them a comprehensive range of

products and services, aimed at enhancing their internationalisation efforts”

Set up under an Act of Parliament in 1981 by the Government of India

Objectives

“for providing financial assistance to exporters and importers, and for functioning as the principal financial institution for coordinating the working

of institutions engaged in financing export and import of goods and services with a view to promoting the country’s international trade…”

“… shall act on business principles with due regard to public interest”

14

Bank: Proxy to Sovereign

An instrument of Government policy as India’s official Export Credit Agency.

100% owned by Government of India (“GoI”):

o Cannot be liquidated without GoI approval.

o A track record of GoI capital infusion.

Proxy to the India Sovereign in international debt markets.

Board of Directors are appointed by GoI:

o Comprises top officials from key GoI ministries (Finance, Commerce andIndustry and External Affairs) and Reserve Bank of India.

Guarantees are provided by GoI for Lines of Credit extended by Exim whichare on behalf of and supported by the GoI.

Insurance cover provided by NEIA for assistance under Buyer’s Credit - NEIA.

Ongoing Government Support

100% owned by GoI

Directors Appointed by

GoI

Proxy to India

Sovereign in International Debt Markets

Guarantees on GoI Lines

of Credit

100% owned by GoI

Directors Appointed by

GoI

Proxy to India

Sovereign in International Debt Markets

Guarantees on GoI Lines

of Credit

Policy Bank

Insurance on Buyers Credit

– NEIA Portfolio

15

Bank: Capital Infusion / Proxy to Sovereign

Government Capital Injection

o Continued GoI support evidenced by capital infusion

o Budget allocation of INR 5 bn for FY 19 from GoI towards capital, received in July 2018

Exim’s credit rating has been on par with India sovereign rating since its establishment

International Rating is Baa2 (Stable)

International Rating is BBB- (Stable)

International Rating is BBB- (Stable)

Domestic Rating is AAA (Stable)

Domestic Rating is AAA (Stable)

Domestic Rating is AAA (Stable)

16

Exim Bank’s Line of Business

Export Finance

Lines of Credit / CFS

Buyer’s Credit –NEIA

Pre-Shipment Credit

Post-Shipment Credit

Guarantees and L/Cs

Export Capability Creation

Term Loans

Working Capital

Export Product Development

Export Facilitation

Overseas Investment

Finance

Import Finance

Guarantees and L/Cs

Loan Portfolio[1] Non-Funded Portfolio[1]

Export Finance 55.13%

Term Loan to Exporters

27.98%

Overseas Investment Finance 11.29%

Import Finance 3.85%

Export Facilitation 1.74%

Aggregate Country Exposure[1]

Sub-Saharan Africa 42.86%

South Asia30.37%

SEA FE & PAC6.27%

North Africa7.31%

Europe 5.13%

Americas 4.18% West Asia 3.74%

Performance Guarantee

32.65%

Advance Payment Gurantee 32.44%

Risk participation15.56%

Financial Guarantee11.39%

Letters of Credit3.05%

Comfort Letter1.95% Bid Bond Guarantee

1.12%

INR 132 bnINR 1154 bn

[1]: As on March 31, 2018

17

Asset Quality

Non Performing Loans(3)Gross Loans outstanding by Major Industries(1) (2)(4)

Current NPL primarily due to downgrade of the restructured legacy assets and RBI circular on revision of extantinstructions on resolution of stressed assets.

NPLs are essentially recognition of watchlist assets.

49% of the Slippages during FY18 were due to revision of instruction by RBI on resolution of stressed assets.

Credit watchlist of INR 37.46 bn for FY19 including Videocon Group Companies.

Solvency ratio for the Bank is 2.38 times as on March 31, 2018.% of Total Loan outstanding

As per RBI guidelines the PCR is 71.26% as on March 31, 2018

Particulars INR bn %

As per IRAC Norms 20.72 50.63%

Additional NPAs in compliance with RBI Circular dated Feb 12, 2018

20.20 49.37%

Total 40.92 100.00%

Incremental Non Performing Loans(5)

Note: [1] Excludes advances under Lines of Credit, Buyer’s Credit under NEIA and staff loans which cannot be classified under any particular sector; [2] As on March 31, 2018; [3] Excludes restructured standard Loans; [4] Others includes industries with exposure less than 1% of the Gross Loan Outstanding; [5] During FY 2017-18

18

Analysis of NPAs

Program wise Non Performing Loans(1)Reason for Slippage of GNPAs(1)

Note: [1] As on March 31, 2018; [2] NPAs as % of Gross NPAs of the Bank; [3] NPAs under the program as % of Gross Loans Outstanding under the Program.

ParticularsNo. of

Accounts% of

GNPAs[2]

Industry Downturn 48 59.67

Impact of Global Economic Crisis 30 17.00

Project Cost and Time Overrun 9 12.12

Fraud 2 0.20

Marketing Problems 4 0.61

Liquidity Issues 14 10.35

Management Issues 2 0.04

Total 109 100.00

Lending Program% of Total

NPAs[2]

NPAs as % of Gross Loans[3]

Export Oriented Units 23.90 19.02

Overseas Investment Finance 20.24 20.89

Import Finance 9.55 30.06

Pre/Post Shipment Credit 6.68 49.25

Production Equipment Finance 3.54 14.50

Buyers Credit 1.59 29.03

Others35.50 5.18

Total 100.00 10.37

19

Financial Highlights

Capital Strength

Profitability

Total Assets, Loans and Advances*

* Includes loans and advances to industrial concerns, scheduled banks, foreign governments and other financial institutions and bills of exchange and promissory notes discounted / rediscounted. Amounts stated are net of provisions for non-performing loans (NPLs).

20

Insolvency and Bankruptcy Code: Faster NPL Resolution

# National Company Law Tribunal;[1] As on March 31, 2018.

Key Highlights

38 large defaulters identified by RBI over 2 lists.

Maximum time for resolution is 270 days under the Act.

On admission to NCLT#, resolution professional replaces existing management.

Existing management accountable for suspect transactions in the previous threeyears.

Upfront provisioning norms set out for banks on admission to NCLT.

‘Willful defaulters‘ excluded from bidding.

What does it mean for Lenders?

Shift to ‘creditor in control’.

Process can be initiated by any creditor.

Short resolution time.

Minority dissenting financial creditors to be paid pro-rata liquidation value.

Clear priority of distribution (waterfall) upon liquidation; Government duessubservient to secured creditors and unsecured financial creditors.

Regulatory and Policy Thrust

• Exim Bank has 71.52% provision for its portfolio under NCLT.

• 88.70% above NCLT accounts (56.47% of total GNPLs) expected tobe resolved either through Resolution Plan or by Liquidation in FY2018-19.

• Strengthened the Specialised Group handling stressed loans andrecoveries.

• Status of stressed loans and recoveries monitored by the AuditCommittee (a sub-committee of the Board), every quarter.

Exim’s Loan Accounts under Exposure to NCLT[1]

Outstanding % provisionNet Book

ValueExpected Recovery

RBI 1st List * 23.76 81.15% 4.48 5.68

RBI 2nd List 12.65 86.17% 1.75 0.59

Others 54.99 64.00% 19.80 8.29

Total 91.39 71.52% 26.03 14.56

INR bn

* Bhushan Steel Ltd. is already resolved and Bank has made cash recovery of INR 3.59 bn andhas received equity aggregating INR 0.05 bn as part of resolution plan from Tata Steel Ltd.

21

Profitability Analysis

Analysis of Operating Profit for FY 2017-18

Particulars Actuals Anticipated[1]

Normal Operating Profit 21,907 21,907

Less: Interest Income Reversal on account of NPAs

1,378 1,346

Less: Interest Income of LOCs not booked due to overdues past 90 days

1,217 1,217

Operating Profit for FY 2017-18 19,311 19,344

Provision for Contingencies 61,610 37,374

Profit / (Loss) Before Tax (42,298) (18,031)

Provision for Tax 1,646 1,657

Deferred Tax (14,707) (6,320)

Total Provision for Tax (Net of DTA) (13,061) (4,662)

Profit / (Loss) After Tax (29,237) (13,368)

Particulars Actuals Anticipated[1]

Less: Aging Provision for NPAs 10,625 10,624

Less: Provision for Incremental NPAs in “ Normal Course”

8,474 8,474

Less: Provision for Incremental NPAs on account of RBI’s circular dated February 12, 2018

3,234 -

Less: Incremental provisions on account of NCLT 2,703 -

Less: Provision for Videocon accounts 17,044 -

Less: Provision for Gitanjali accounts 1,804 451

Less: Provision for Standard Assets -2,310 -2,209

Less: Provision for SRs 3,113 3,113

Less: Provision for depreciation on GOI-Secs 1,116 1,116

Less: Provision on other investments 1,350 1,350

Less: Bad Debts 14,456 14,456

Total: Provision for Contingencies 61,610 37,374

Breakup of Provisions

[1]: As anticipated prior to RBI circular dated February 12, 2018, on revision of extant instructions on resolution of stressed assets

INR mn INR mn

22

Asset Liability Management

Total Resources/ Loans[1]Foreign Currency Asset Liability Gaps[1]

Fully hedged position on currency and basis risk. Both Assets and Liabilities on floating LIBOR basis.

Exim Bank’s quasi sovereign status enables issuance at benchmark rates.

Debut 10 year 144A issuance in July 2016 and the second 10 year 144A issuance in January 2018 for USD 1 bn each under GMTN Program.

Regular issuer in the International debt markets with 25 issuances since 2004. Three issuances under the GMTN since 2016.

Total Resources Total Loans and Deposits

[1] As on March 31, 2018

FC Resources73%

Rupee Resources

19%

Share Capital & Reserves

8%

FC Loans 69%

Rupee Loans31%

23

Business Plan

Estimates FY 2018-19

INR mn

INR mn

Particulars FY 2018-19 Q1 FY 2018-19

Normal Operating Profit 4,330 17,340

LOC Income Not Booked (400) (1,610)

Interest Recoveries 841 1,670

CAR & other Restructuring 130 130

Monetization of Assets (Net) - 360

Interest Reversals (650) (1,390)

Others 300 300

Operating Profit 4,551 16,800

Provision for contingencies 5,607 14,110

Profit / (Loss) Before Tax (1,056) 2,690

Provision for tax 1,225

Deferred Tax (1,274)

Tax (49)

Profit / (Loss) After Tax (1,007)

Provision for Contingencies - Breakup

Write-offs / Bad Debt 16,490

Provision for PA (15,000)

Provision for NPA 5,700

Provision Write Back (HCC) (1,270)

Investment Provision 8,190

Total 14,110

24

Exim Bank - Board of Directors

Directors representing Ministries of Finance, Commerce and External Affairs

Directors representing major Indian Public Sector Banks

Director representing regulator - RBI

Director representing India’s Export Credit Insurance Company Whole Time Directors

Anup Wadhawan

Secretary, Department of Commerce, Ministry of Commerce and Industry

Pankaj Jain

Joint Secretary, Department of Financial Services, Ministry of Finance

Ramesh Abhishek

Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce and Industry

Michael Debabrata Patra

Executive Director, Reserve Bank of India

Geetha Muralidhar

Chairman-cum- Managing Director, ECGC Ltd.

T.S. Tirumurti

Secretary (Economic Relations), Ministry of External Affairs

Rajnish Kumar

Chairman, State Bank of India

Dinabandhu Mohapatra

Managing Director and CEO, Bank of India

Debasish Mallick

Deputy Managing Director

David Rasquinha

Managing Director

Kalyanaraman Rajaraman

Joint Secretary (Investment), Department of Economic Affairs, Ministry of Finance

Rajkiran Rai Gundyadka

Managing Director and CEO, Union Bank of India

25

Exim Bank - Senior Management

Highly Experienced Management Team with Government of India (GoI) Sponsorship

Mr. David Rasquinha, Managing Director

Mr. David Rasquinha has been appointed by GoI as Managing Director of Exim since August 2017.

He has been with Exim since 1985 and prior to his current role he has held post of Deputy Managing Director. He has handled a wide range offunctions including Lines of Credit and Trade Finance and was Representative at Exim’s Washington DC Rep Office from 1999–2004.

Mr. Rasquinha holds a first class graduate degree in Economics from Mumbai University and a post graduate qualification in Business Managementfrom the XLRI, Jamshedpur.

Mr. Debasish Mallick, Deputy Managing Director

Mr. Debasish Mallick has been appointed by GoI as Deputy Managing Director of Exim since July 2014.

Mr. Mallick was the Managing Director and CEO of IDBI Asset Management Company Ltd and has nearly three decades of experience in the Bankingindustry. He has vast experience in the areas of Corporate Banking, International Banking, Resource Mobilisation and Treasury, among others.

He holds a post-graduate degree in Economics and is a Certified Associate of Indian Institute of Bankers.

26

Exim Bank - Institutionalised Risk Management Culture

Officer of the rank of Chief General Manager designated as Chief Risk Officer for credit, market and operational risks.

Tasked with risk management of the Bank’s business processes and driving the Bank’s risk management strategy.Risk Management Group

Chaired by Deputy Managing Director and comprises Group Heads of Business Groups, Treasury and Accounts Group, and theChief Risk Officer.

It addresses issues of asset-liability management, interest and exchange rate risks, liquidity risk, etc.

Chaired by Deputy Managing Director and comprises Group Heads of Business Groups, Treasury and Accounts Group, and theChief Risk Officer.

The CRMC addresses rating and pricing standards, prudential limits on various exposure categories (country, sector, single andgroup borrower and unsecured exposures, program-wise exposures etc.), provisioning, sector-wise outlook, etc.

Chaired by Deputy Managing Director and comprises senior executives who do not have direct line responsibilities and the ChiefRisk Officer.

Reviews Bank’s risk profile, risk concentrations, operational risk, compliance with prudential limits and overseeing the operationsof CRMC and ALCO.

Reviews the Bank’s risk management policies, investment policies and strategy, and regulatory and compliance issues in relationthereto.

Sub Committee of the Board, comprising of the Independent Directors only. Reviews all operations of ALCO, NPL accounts, Bank’s currency-wise liquidity position, interest rate sensitivity position, as well as

any corrective actions taken thereto on a quarterly basis. Credit concentration is reviewed on half yearly basis.

Asset-Liability Management Committee

Credit Risk Management Committee

Integrated Risk Management Committee

Audit Committee

27

Appendix

Financial Highlights

28

Figures in INR mn FY14 FY15 FY16 FY17 FY18

Cash and Bank Balance 51,241 45,119 54,438 36,909 28,155

Investments 39,163 49,820 53,555 51,029 56,969

Loans and Advances(1) 745,983 849,100 991,168 1,026,410 1,075,321

Fixed Assets 807 1,041 1,002 1,298 1,259

Other Assets 34,296 39,169 52,015 56,427 73,486

Total Assets 871,490 984,249 1,152,178 1,172,074 1,235,190

Paid up Capital & Reserves(2) 83,097 99,026 114,868 120,239 96,002

Deposits 23,728 20,145 20,958 3,726 2,861

Notes, Bonds and Debentures 548,868 654,814 758,416 806,930 865,817

Borrowings 142,225 112,146 153,792 150,073 172,973

Profit and Loss Account 73,572 98,118 316 41 -

Other Liabilities & Provisions 871,490 984,249 103,828 91,065 97,537

Total Liabilities 83,097 99,026 1,152,178 1,172,074 1,235,190

Note: (1) Includes loans and advances to industrial concerns, scheduled banks, foreign governments and other financial institutions and bills of exchange and promissory notes discounted/rediscounted. Amounts stated are net of provisions for non-performing loans (NPLs). ; (2) Includes paid-up capital and reserves.

Balance Sheet

Financial Highlights

Figures in INR mn FY14 FY15 FY16 FY17 FY18

Interest Earned 68,464 71,479 82,938 84,411 82,384

Interest Expended 46,840 53,355 60,221 65,022 65,863

Net Interest Income 21,624 18,124 22,717 19,389 16,521

Non-Interest Income 4,301 4,728 4,873 7,942 5,399

Operating Income 25,925 22,852 27,590 27,331 21,920

Non-interest Expense 1,826 2,109 2,292 2,525 2,608

Provisions and Contingencies 17,001 13,484 22,140 21,680 61,610

Net Profit 7,098 7,259 3,158 412 (29,237)

Profit and Loss Summary

Key Ratios

FY14 FY15 FY16 FY17 FY18

Net Interest Margin 2.67% 1.97% 2.17% 1.70% 1.41%

Gross NPA 2.10% 2.94% 4.17% 9.24% 10.37%

Net NPA 0.43% 0.60% 0.86% 4.68% 3.75%

ROAA 0.85% 0.79% 0.29% 0.04% -ve

ROAE 9.24% 7.89% 2.93% 0.62% -ve

CRAR 14.32% 15.34% 14.55% 15.81% 10.35%

29

30