IDBI Bank Ltd Directors Report

Directors Report

Your Banks Board of Directors is pleased to present the Report on the Banks business and operations for the financial year ended March 31,2024.

The global growth remained generally resilient in 2023. Favourable demand and supply factors supported growth in the major economies, countering the impact of multiple shocks as well as of monetary tightening. India continued to be one of the fastest growing major economies and posted healthy growth of 8.2% in FY 2023-24. The continued resilience displayed by India has led to its emergence as a significant economic power, with it contributing to around 16% to the global growth in 2023. Indias efforts to maintain macroeconomic stability and enact structural reforms have largely contributed to its economic resilience in the face of global challenges. Factors such as expanding infrastructure capacity, revival in investment cycle, rapid growth in digital economy, greater integration with global trade flows, skilled workforce, large & growing domestic market, strong banking sector and greater degree of formalisation in the economy have, inter alia, contributed in supporting the domestic growth momentum.

The banking sector, which is often cited as the backbone of the Indian economy, has been well-positioned to support the upswing in the business cycle. Aided by healthier balance sheets and well-capitalised positions, the banks supported the credit expansion that had an accelerator effect in the economy. During the year, the Reserve Bank of India (RBI) maintained a status quo on its policy rates. The moderate inflationary pressures, coupled with healthy growth, provided the headroom to the RBI to maintain a pause in its policy rates and also maintain an actively disinflationary policy stance to ensure anchoring of inflation expectations and fuller transmission of policy rate hikes. The pause in the policy rate hikes ensured that the interest rates remained supportive of the growth conditions with robust investment and consumption demand leading to double-digit growth in bank credit. The credit growth was also supported by healthy double-digit growth in deposits, which regained favour as a lucrative investment option, especially among the risk-averse investors, on the back of higher interest rates.

FINANCIAL HIGHLIGHTS

As on March 31, 2024, your Banks aggregate deposits and advances touched Rs.2,77,657 crore and Rs.1,88,621 crore, respectively. Your Banks business highlights for the period under review are presented in the following table:

Key Financials

		(Rs. in crore)
	As on March 31, 2023	As on March 31,2024
Capital	10,752	10,752
Reserves & Surplus	34,566	39,129
Deposits	2,55,490	2,77,657
Borrowings	12,638	17,083
Other Liabilities & Provisions	17,056	18,569
Total Liabilities	3,30,502	3,63,190
Cash & Balances with RBI	16,639	13,991
Balances with Banks & Money at Call & Short Notice	12,541	11,942
Investments	99,690	1,14,934
Advances	1,62,568	1,88,621
Fixed & Other Assets	39,064	33,702
Total Assets	3,30,502	3,63,190
For the period	2022-23	2023-24
Total Income	24,942	30,037
Total Expenses (other than provisions)	16,206	20,445
Provisions (other than tax)	3,498	1,397
Profit/ (Loss) Before Tax	5,238	8,195
Provision for Tax	1,593	2,561
Profit/ (Loss) After Tax	3,645	5,634

During the year under review, your Banks total income amounted to Rs.30,037 crore, comprising interest income of Rs.26,426 crore and other income of Rs.3,611 crore. Interest expenses stood at Rs.12,240 crore and operational expenses at Rs.8,205 crore, accounting for total expenditure (excluding provisions and contingencies) of Rs.20,445 crore.

During the year, the Bank earned net profit of Rs.5,634 crore. While the Earnings per Share (EPS) during the year was Rs. 5.24, the Book Value per Share (excluding intangible assets and Deferred Tax Asset (DTA)) stood at Rs.30.55 as at March 31,2024.

The Board of Directors have recommended a dividend of Rs.1.50 per equity share of face value of Rs.10 each of the Bank for the financial year ended March 31, 2024, subject to approval of the shareholders at the 20^th Annual General Meeting.

REPORT ON THE PERFORMANCE AND FINANCIAL POSITION OF SUBSIDIARIES AND JOINT VENTURE INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENT AS ON MARCH 31,2024

	Net Assets i.e. total assets minus total liabilities		Share on profit or loss
Name of the Entity	As % of consolidated net assets	Amount (Rs. in crore)	As % of consolidated profit or loss	Amount (Rs. in crore)
Parent : IDBI Bank Ltd.	97.37%	49,882	97.34%	5,634
Subsidiaries
Indian :
1. IDBI Capital Markets & Securities Ltd.	0.66%	337	0.13%	7
2. IDBI Intech Ltd.	0.23%	118	0.18%	10
3. IDBI Asset Management Ltd.	0.42%	215	1.39%	81
4. IDBI MF Trustee Co. Ltd.	0.00%	2	0.00%	(0.08)
5. IDBI Trusteeship Services Ltd.	0.66%	337	0.99%	57
Foreign:	NA	NA	NA	NA
Minority Interest in all Subsidiaries	0.30%	153	0.45%	26
Associates (Investment as per the equity method)#
Indian:
1. Biotech Consortium India Ltd.	NA	NA	0.00%	-
2. National Securities Depository Ltd.	NA	NA	0.88%	51
3. North Eastern Development Finance Corporation Ltd.	NA	NA	0.00%	-
4. Pondicherry Industrial Promotion Development & Investment Corporation Ltd. (PIPDICL)	NA	NA	NA	NA
Foreign:	NA	NA	NA	NA
Joint Ventures (as per proportionate consolidation/ investment as per the equity method)
Indian:
1. IDBI Federal Life Insurance Company Ltd.	0.00%	-	0.00%	-
Foreign:	NA	NA	NA	NA
Total	99.64%	51,044	100.46%	5,815
Elimination	0.36%	182	(0.46%)	(27)
Net Total	100.00%	51,226	100.00%	5,788

Note: None of the above subsidiaries have any subsidiary.

# - In respect of PIPDICL, the Bank has not received any financial statements & transaction details from the company and hence, information is not consolidated in the above table. The Bank has written down investment in PIPDICL to Rupee One.

MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING FINANCIAL POSITION OF IDBI BANK WHICH HAVE OCCURRED DURING THE END OF FINANCIAL YEAR AND THE DATE OF BOARD REPORT

There were no material changes and commitments affecting the financial position of the Bank, which occurred between the end of the financial year, i.e. March 31,2024 and the date of the Directors Report.

THE DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS

According to Section 143(3) (i) of the Companies Act 2013, the report of the Statutory Auditors should state whether the Bank has adequate Internal Financial Controls (IFCs) system in place and what is the operating effectiveness of such controls in the context of the financial statements. The IFCs, as referred to in Section 143(3) (i) of the Companies Act, relate to Internal Financial Controls Over Financial Reporting (IFCO-FR). The Banks Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Bank considering the essential components of internal control stated in the Guidance Note on Audit of IFCO-FR issued by the Institute of Chartered Accountants of India (ICAI).

These responsibilities include design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Banks policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records and timely preparation of reliable financial information, as required under the Companies Act, 2013, the Banking Regulation Act, 1949 and the guidelines issued by the RBI. Your Bank has put in place an IFCO-FR framework for evaluation of the existing internal financial controls system and appointed a consultant for validating the compliances with respect to the documentation, certification, reporting process of the controls across all business verticals/ departments and ascertaining the adequacy and effectiveness of the controls in the Bank in all material respects with respect to financial reporting. During FY 2023-24, the consultant has submitted the Internal Compliance Certificate for the quarters ended June 2023, September 2023, December 2023 and March 2024 after carrying out testing and validation of all the underlying processes as per the Banks IFCO-FR framework.

DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATE PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH A DETAILED EXPLANATION THEREOF

Particulars	FY 2022-23	FY 2023-24	Comments
Return on Assets	1.20%	1.65%	Net profit for FY 2023-24 is Rs.5,634 crore as compared to net profit of Rs.3,645 crore in FY 2022-23.
Net NPA ratio	0.92%	0.34%	Net NPA decreased by Rs.851 crore and Net Advances increased by Rs.26,053 crore in FY 2023-24 over FY 2022-23.
Gross NPA Ratio	6.38%	4.53%	The Banks Gross NPA decreased by Rs.2,052 crore and gross advances increased by Rs.24,852 crore in FY 2023-24 over FY 2022-23.

CAPITAL ADEQUACY

In adherence to the Pillar 1 guidelines of the RBI under Basel III framework, your Bank computes regulatory capital requirement for credit, market and operational risks on a monthly basis. In addition to maintaining the minimum Capital to Risk-weighted Assets Ratio (CRAR), banks in India are mandated to maintain the Capital Conservation Buffer (CCB) of 2.50%. Accordingly, your Banks ‘Total Capital + CCB ratio was 22.26% as on March 31,2024 as against the regulatory requirement of 11.50%. Similarly, your Banks ‘Common Equity Tier 1 (CET1) + CCB ratio was 20.11% as against the regulatory requirement of 8.00%. Your Banks ‘Tier 1 + CCB ratio stood at 20.11% as on March 31,2024 as against the regulatory requirement of 9.50%. Your Banks Leverage Ratio was 8.53% as on March 31, 2024 as against the minimum regulatory requirement of 3.50%.

BUSINESS STRATEGY

Capitalising on opportunities and navigating challenges, your Bank continued to operate along a strategic business plan that led to significant improvements in financial and operational health. The core focus remained on profitable business growth, a strong balance sheet and healthy capital. To cater to the growing credit demand, low-cost deposits, viz. Current Account & Savings Account (CASA) deposits, were actively built, supplemented by retail term deposits as well as bulk deposits. Focussing on maintaining a granular and well-diversified asset portfolio, the Bank continued to prioritise lending to Retail, Agriculture & MSME (RAM) segment while also selectively lending to well-rated corporates. The Bank continued to benefit in terms of business growth and fee income from the business synergies arising from its association with Life Insurance Corporation of India (LIC). This helped the Bank to maintain its Cost of Deposits and Cost of Funds at competitive levels. On the assets front, your Bank continued to emphasise on controlling fresh slippages as also on recovery and upgradation efforts to reduce the delinquency in its asset portfolio. Continued improvement in its asset quality helped the Bank to maintain its Net Interest Margin (NIM) at a healthy level. The Banks customer-centric initiatives prioritised convenience and accessibility with expanded branch network and enhanced digital functionalities to provide seamless multi-channel experience with the aim of customer delight. Your Banks financial offerings are periodically reviewed and refreshed to meet the evolving customer needs and preferences. For sustaining the profitable growth, the Bank endeavoured to instil a robust risk and compliance culture across the organisation by encouraging best practices among the entire workforce. The Bank remains committed to the highest corporate governance standards, promoting fairness, ethics and transparency to retain stakeholder trust and become the most trusted and preferred bank.

KEY BUSINESS INITIATIVES

Your Bank has adopted a customer-first approach with its business strategy centred around meeting the changing customer needs and preferences and creating delightful experiences with excellent service. Your Bank is leveraging its scalable hybrid delivery model, viz. its physical touchpoints of 2,004 branches and 3,303 ATMs and its digital channels to connect with its customers spread across the country. In addition to an entire gamut of traditional banking products and services, your Bank also offers customised and innovative banking and financial solutions to its customers. Furthermore, in accordance with the emerging business landscape and evolving customer preferences, your Bank also fine-tuned its existing bouquet of products and services as also its business processes, in order to stay relevant with changing times.

Your Bank provides a wide range of services on a round-the-clock basis through a wide range of digital channels such as Mobile Banking, Internet Banking, WhatsApp Banking, UPI, Debit Cards, Credit Cards, Point of Sale (PoS) terminals (both physical and digital), Internet Payment Gateway, ATMs, etc. Your Bank, while promoting use of various digital channels, is also making concerted efforts to increase awareness among its customers regarding safe and secure banking practices while transacting through digital channels.

Your Bank aims to provide a secure, seamless and convenient banking platform to its customers by deploying the best digital experience, technology standards, processes and procedures. Towards this end, your Bank has been scaling up investment in technology in order to further broad-base its digital offerings. Additionally, your Bank has been strengthening its digital infrastructure and equipping itself with latest analytical tools and technology in order to enable it to analyse and summarise customer data, to further enhance customer experience, to streamline its operations and to drive innovation to meet the evolving needs of the digital world.

As a retail-focussed bank, your Bank has been catering to the customers in the Retail, Agriculture and MSME (RAM) segment by offering an entire bouquet of products and services to meet their specific requirements. Your Bank offers a wide range of products and services, viz. deposit products, loan products, credit cards, NRI services, among others, to its retail customers. Your Bank also contributes significantly towards lending to the priority sectors by extending credit to Agriculture and Micro Small & Medium Enterprises (MSME) sectors. Your Bank has also been leveraging its Business Correspondent (BC)/ Business Facilitator (BF) network to expand its reach to unserved and underserved sections of the society. Your Bank has been proactive in furthering the objective of financial inclusion by ensuring access to financial products and services to the vulnerable sections of the society at affordable cost in a fair and transparent manner. Furthermore, your Bank has been conducting various outreach programmes to spread awareness among people about various banking products, thereby enhancing financial literacy.

Your Bank is also exploring viable financing opportunities to well-rated corporates to augment its corporate loan book in a selective, calibrated and risk-contained manner. Your Bank continues to focus on fresh acquisition of well-rated corporate accounts as well as deepening its existing business. Furthermore, the Bank has been targeting growth in interest and fee income through focussed improvement in utilisation of sanctioned fund-based and non-fund based limits and cross-selling.

Your Bank, while augmenting its loan book, is also focussing on maintaining its asset quality by closely monitoring accounts to minimise fresh slippages. Simultaneously, your Bank has also been endeavouring to upgrade or implement timely resolution for its stressed assets and NPA cases.

Your Bank, apart from undertaking a slew of business initiatives, has also been taking various measures such as process improvement, embracing technological innovation, upgradation and improvement in its IT infrastructure, among other measures, to improve its operational efficiency and enhance its business potential.

The detailed description of the Banks initiatives undertaken during the year is outlined in the Management Discussion and Analysis section of the Annual Report.

IMPACT OF COVID-19 PANDEMIC ON THE BANKS BUSINESS

The COVID-19 virus, a global pandemic, affected the worlds economy over the last couple of years. The extent to which COVID-19 pandemic will further impact the Banks operations will depend on ongoing as well as future developments. The management of the Bank is closely monitoring the developments in this regard.

BOARD OF DIRECTORS

Your Banks Board of Directors is broad-based and its constitution is governed by the provisions of the Banking Regulation Act, 1949, guidelines issued by the Reserve Bank of India (RBI), the Companies Act, 2013, Securities & Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 [SEBI (LODR) Regulations] and the Articles of Association of the Bank. The Board functions directly as well as through various Board-level committees which have been constituted to provide focussed governance in the important functional areas of the Bank. As per the Articles of Association, the Board of Directors shall not be less than three and more than fifteen members consisting of a Chairman, a Managing Director and Chief Executive Officer (MD & CEO), two Deputy Managing Directors (DMDs), two Nominee Directors of LIC, two Nominee Directors of Government of India (GoI) and eight Independent Directors (including the Chairman and one Woman Independent Director).

As on March 31, 2024, the Board comprised fourteen Directors, viz. Shri T. N. Manoharan, Independent Director & Part-Time Chairman, Shri Rakesh Sharma, MD & CEO and Shri Jayakumar S. Pillai, DMD, as Whole Time Directors; Shri Manoj Sahay and Shri Sushil Kumar Singh, Government Nominee Directors and Shri Mukesh Kumar Gupta and Shri Raj Kumar, LIC Nominee Directors, as Non-Executive Directors; Shri Bhuwanchandra B. Joshi, Shri Samaresh Parida, Shri N. Jambunathan, Shri Deepak Singhal, Shri Sanjay Gokuldas Kallapur, Smt. P. V. Bharathi and Shri Ajay Prakash Sawhney as Independent Directors. The strength of 14 (fourteen) Directors on the Board as on March 31,2024 meets the requirement provided under Article 114(a) of the Articles of Association of the Bank.

APEX COMMITTEES

The Board has a total of thirteen committees to oversee various functional areas of your Banks business and operations. The Board committees include Audit Committee of the Board, Executive Committee, Nomination & Remuneration Committee, Stakeholders Relationship Committee, HR Steering Committee, Frauds Monitoring Committee, Recovery Review Committee, Risk Management Committee, CSR & ESG Committee, Non-Cooperative Borrowers Review Committee, Customer Service Committee, Wilful Defaulters Review Committee and Information Technology Strategy Committee.

CORPORATE GOVERNANCE

Your Bank is committed to adopt the best corporate governance practices. The Bank believes that effective corporate governance is not just a requirement for regulatory compliance, but also a facilitator for excellence in governance including enhancement of stakeholders value. The details of your Banks corporate governance practices are given in this Annual Report as a separate section under the Corporate Governance Report.

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT

With effect from FY 2022-23, SEBI has mandated the top one thousand listed entities based on market capitalisation to submit Business Responsibility & Sustainability Report (BRSR) in the format as specified under SEBI (LODR) Regulations. The BRSR is intended towards having quantitative and standardised disclosures on ESG (Environment, Social and Governance) parameters to enable comparability across companies, sectors and time. In compliance with the SEBI norms, the Banks BRSR for FY 2023-24 has been prepared as per the prescribed format and is included as a part of the Annual Report as a separate section, viz. Business Responsibility & Sustainability Report and also hosted on the website of the Bank (https://www.idbibank.in/business- responsibilitv-and-sustainabilitv-report.aspx).

STATEMENT UNDER SECTION 134 OF THE COMPANIES ACT, 2013 READ WITH RULE 5 OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014

There were three personnel in your Banks service, during the financial year under review, who received remuneration of over Rs.1.02 crore annually. Further, there was no personnel in the service of the Bank for a part of the year who received remuneration in excess of Rs.8.50 lakh per month. Also, there was no personnel employed throughout the financial year or part thereof who was in receipt of remuneration at a rate, which in the aggregate, was in excess of that drawn by Managing Director & CEO or Deputy Managing Directors of the Bank and who held by himself or along with his spouse and dependent children, not less than 2% of the equity shares of the Bank.

STATEMENT UNDER RULE 5(2) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014 FOR YEAR ENDED MARCH 31,2024 - DETAILS OF TOP TEN EMPLOYEES

Sr. No. Name	Designation	Annual Remuneration received ()*	Nature of employment, whether contractual or otherwise	Qualifications of the employee	Date of commencement of employment	Experience of the employee in IDBI Bank	Age of such employee	The last employment held by such employee before joining the company
i Shri Rakesh Sharma	Managing Director & Chief Executive Officer	2,10,34,551.44	Contractual	Post Graduate in Economics & CAIIB	10-Oct-18	5 years & 5 months	65	Canara Bank
2 Shri Suresh Khatanhar	Deputy Managing Director	1,25,85,799.42	Contractual	M.Com, ICWA & CAIIB	23-Jun-97	26 years & 9 months	60	Dena Bank
3 Shri Arun Kumar Bansal	Head-Treasury	1,07,50,937.55	Contractual	B.Com & M.Com	15-Jun-22	1 year & 9 months	53	Indian Bank
4 Shri Om Prakash Seth	Chief Information Officer	90,27,129.88	Contractual	B.Tech (Electronics) & MBA	23-Jan-23	1 year & 2 months	50	Aditya Birla Capital
5 Shri Padmabhushan Bahadure	Chief Technology Officer	72,90,538.88	Contractual	Bachelor of Engineering, Management Programme & Post Graduate Diploma	01-Aug-19	4 years & 7 months	47	State Bank of India
6 Shri Nagaraj Garla	Executive Director	67,84,490.40	Employee	B.Com, M.Com, I.C.W.A (Inter) & M.B.A	17-Feb-00	24 years	54	ING Vysya Bank
7 Smt. Baljinder Kaur Mandal	Executive Director	64,91,408.28	Employee	B.E. & P.G.D.M	01-Jun-88	35 years & 9 months	58	Not Applicable
8 Shri Sunit Sarkar	Executive Director	64,26,392.28	Employee	B.Tech, Post Graduate Diploma in Business Management & I.C.W.A	01-Sep-93	30 years & 6 months	57	ESAB India Ltd.
9 Shri Jayakumar S. Pillai	Deputy Managing Director	62,60,668.45	Contractual	B.F.Sc & MBA	12-Jun-23	9 months	58	Canara Bank
10 Shri Shalil Mukund Awale	Executive Director	62,50,278.94	Employee	B.Tech & M.Tech	16-Oct-96	27 years & 5 months	55	National Environmental Engineering Research Institute

* - Remuneration includes basic salary, allowances, perquisites as per the Income Tax rules but excludes employers contribution to PF/ Pension, non-monetary perquisite tax and accrued retirement benefits.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

a) Conservation of Energy

The Bank has been taking several initiatives towards conservation of energy. New branches of the Bank have been provided with energy efficient light fixtures to conserve power. The Bank has installed lighting sensors in cabins for automatic switching-off of the lights in case the cabin is vacant. The Bank, wherever feasible, promotes use of daylight in branches to conserve electricity. The Bank is also sensitising its employees

to switch-off all electrical gadgets/ fixtures when not in use. Furthermore, all branches and offices of the Bank have been advised to operate Air Conditioners (ACs) at 25?-26? centigrade. Furthermore, inverter type/ Variable Refrigerant Flow (VRF) energy efficient ACs are being used in some of its new branches/ Zonal Offices. The Bank is also maintaining Power Factor (PF) close to unity through Automatic Power Factor Correction (APFC) Panel in Zonal Offices and metro branches. The Bank has also replaced standard electrical motor with energy efficient motor in Sewage Treatment Plant. All these initiatives have been undertaken as Banks contribution towards conservation of energy.

b) Technology Absorption

Your Bank has been proactively evaluating and absorbing the latest technology-based innovations which have the potential to empower its business functions, enrich its customer experience and optimise its readiness towards opportunities and challenges of the future.

During the year, your Bank further strengthened its IT infrastructure with rolling-out the Software Defined Wide Area Network (SD-WAN) to cover all the branches. Your Bank also upgraded its IT hardware with latest IBM P-Series servers with high compute and processing power. Your Bank augmented its onpremise Private Cloud to increase the capacity and compute and to meet the increasing needs of the business for just-in-time provisioning of IT resources. Your Bank has also implemented bank-wide Microsoft 365 (M365) based Collaboration and Office Productivity tools. Your Bank has set up a centralised inventory of IT Assets and is rolling out industry standard tools for IT service management and ticketing. Your Bank is also implementing Zero Trust Network Architecture (ZTNA) and Virtual Desktop Interface (VDI) to support secured access for work from anywhere. Your Bank has implemented Data Leakage Prevention (DLP) tool to safeguard data of the Bank and its customer. Your Bank has also implemented enterprise-grade Web Application Firewall (WAF) to protect the customer facing applications from any cyber-attacks.

Your Bank has reduced its count of physical servers and increased adoption of virtualised and on-premise private cloud setup, thereby reducing the consumption of energy and the related e-waste.

Details of initiatives taken in the Information Technology ecosphere have been provided in the Management Discussion and Analysis section of the Annual Report.

c) Foreign Exchange Earnings and Outgo

During the year, the total foreign exchange earned by the Bank was Rs.774.21 crore (excluding foreign currency cash flows in derivatives and foreign currency exchange transactions) and the total foreign exchange outgo was Rs.72.99 crore towards the operating and capital expenditure requirements.

DIRECTORS RESPONSIBILITY STATEMENT

The Board of Directors, hereby, declares and confirms that:

a. In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

b. The Directors had selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of the profit and loss of the Bank for that period;

c. The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the Bank and for preventing and detecting fraud and other irregularities;

d. The Directors had prepared the annual accounts on a going concern basis;

e. The Directors had laid down internal financial controls to be followed by the Bank and that such internal financial controls are adequate and were operating effectively; and

f. The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

ACKNOWLEDGEMENTS

Your Banks Board of Directors is sincerely grateful to the Government of India, Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), all other statutory/ regulatory authorities and Life Insurance Corporation of India (LIC) for their valuable co-operation and guidance. The Board also acknowledges with gratitude, the co-operation and support received from various State Governments and other banks/ financial institutions. The Board thanks various multilateral institutions and international banks/ institutions for their support. The Board takes this opportunity to put on record its deep sense of gratitude to its loyal shareholders and customers for extending their support during the year and looks forward to their continued association in the years ahead. The Board appreciates the sincere and devoted services rendered by its entire staff and highly values their commitment towards the Bank.

[Jayakumar S. Pillai]	[Rakesh Sharma]
Deputy Managing Director	Managing Director & CEO
Place: Mumbai
Date: May 30, 2024